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MaterialityHuman ResourcesTOPICS Human Resources ManagementPrinciples p244 Transforming into a VibrantCompany p246Vision Management p249・KPI(Degree of Challenging BehaviorExpression) p249・Implementing the Long-term Vision p250People Management p252・Deepening Engagement p252・Employee Career Development p255Human Resources Management p258・The Right Person in the Right Place p258・Training Human Resources p259 Refining the Foundation p261Allowing Diverse HumanResources to Excel p261・Diversity Initiatives p261・Gender p262・Seniors p269・Global p271・People with Disabilities p274・Balanced Support p275・Entrenching Support p279Work Style Reforms p280Health and ProductivityManagement p285
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesHuman Resources Management PrinciplesTo realize a sustainable society by supporting the basis of LIFE and continuing to create peaceof mind for the future, SEKISUI CHEMICAL Group is taking into consideration diversity as well asthe workplace environment as it develops human resources who actively take on challenges.Positioning of This Materiality SEKISUI CHEMICAL Group positions human resources as the driving force behind its ability to generate innovation and realize its Long-term Vision. In order for the Group to contribute more than ever to solvingsocial issues, we are striving to create a workplace full of vitality. At the same time, we are putting in placean organization and culture that fosters the will to take on challenges in the face of mounting hurdles torealize a sustainable society. Under the current Medium-term Management Plan, we are working to instillan understanding, empathy, and personal ownership of our Long-term Vision. We are also shifting to ahuman resources management style where the right person is positioned in the right place. In this manner,we hope to foster an organizational climate that encourages employees to actively take on new challenges.Our PhilosophyBased on our belief that employees are precious assets bestowed on us by society, we, SEKISUI CHEMICAL Group,offer various opportunities through which we help individual employees to pursue their own carriers and enhancetheir unique skills while taking on the challenge of working together with employees to help solve social problems bycreating opportunities pursue various social significant missions and challenges.This fundamental mindset regarding human resources is shared throughout the entire Group, and we are striving toensure that our workplaces are vibrant and enable diverse personnel to take on challenges and play an active role.Materiality Human Resources244
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management Human Resources Management PrinciplesOur Ideal FormCarrying outinnovation and creation,expandingour contributionto socialproblem-solvingFundamental MindsetPlaying an Active RolePutting the right personnelin the right poststhroughout the GroupCareer FormationCompanyDefining various rolesand activities for contributionto social problem-solvingEmployeesSelf-directed careerdevelopment withsupport from the CompanyBaseCreating a lively, exciting,and healthy working culture based on mutual respectfor diverse opinions and good communication and teamworkMateriality Human Resources245Appendices
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesTransforming into a Vibrant CompanyTo become an excellent and vibrant company where employees thrive on challenges, SEKISUICHEMICAL Group aims to foster an organizational culture in which each individual plays aleading role and can take on a variety of challenges.Our Vision of a Vibrant CompanyWe believe that a vibrant company is one in which each and every individual takes on a leading role and is able totake on a variety of challenges, achieving an energetic corporate culture which makes employees want to stretch andpush themselves.To become a vibrant company, we aim to create a virtuous cycle in which all employees have a shared vision and contribute to solving social issues through their work to create a successful track record. This sense of accomplishmentand growth further motivates them to take on the challenge of playing a leading role in realizing this vision.The Form We Want to AchieveA Dynamic CompanyThe form we want to achieve is a dynamic company where everyone is eager to take on new challenges.Empathy with our visionIncreased motivationto participateExperiencing a sense ofachievement and growthin the leading roleSelecting the placewhere you can shineFeeling of contribution Interesting workContributing tosocial problem-solvingthrough our workNew challenges supported by the human resources system and other mechanismsMateriality Human Resources246
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesMessage to All of Our Employees from the PresidentOur president has released a message to all of our employees expressing his hope to become a vibrant company.Based on this aspiration, we are implementing and expanding policies linked to the understanding and promotion ofinitiatives for becoming a vibrant company by employees of the Group.Message from the president to the employees on becoming a vibrant companyThe vibrant company that I have in mind, is one in which the employees are fully aware, take pride, and areable to take on specific challenges.In order to utilize the Group’s wide-range of businesses to improve life for everyone around the world and theglobal environment, a diverse group of employees with different personalities, experiences, and characteristicsmust be allowed to demonstrate their individual capabilities, personalities, and characteristics to the greatestextent possible. In 2015, SEKISUI CHEMICAL Group established the Diversity Management Policy. In deployingdiversity management across the entire Group, steps were then taken to promote female empowerment asa first step. Thanks largely to the dual efforts of promoting women’s empowerment while creating a positiveorganizational environment, SEKISUI CHEMICAL was selected as a Nadeshiko brand among a number of otherachievements. Our goal moving forward is to build an organization in which all employees, including women,can actively participate in the business and take on challenges on a daily basis.To this end, SEKISUI CHEMICAL Group will work to improve productivity, reform its systems and culture, andenhance Governance (Internal Control) through such wide-ranging measures as digital transformation, automation of the plant floor, work style reforms that allow diverse human resources to excel, health and productivity management, and efforts aimed at expanding opportunities and challenges.SEKISUK CHEMICAL Group’s mission is to be acclaimed by stakeholders as a truly excellent company and acorporate group that increasingly contributes to the sustainability of society. It is our hope that all employeeswill continue to take up each challenge with a strong sense of pride.Let’s refine our ESG management and harness the collective strengths of all Group employees to overcome every challenge and grow.President and Representative DirectorSEKISUI CHEMICAL Co., Ltd.Keita KatoMateriality Human Resources247
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesPromotion SystemConvened under the Sustainability Committee, and chaired by the executive officer and head of the Human Resources Department, the Human Resources Subcommittee is comprised of the heads of the human resources each divisional company.The Human Resources Subcommittee met twice in fiscal 2021, once in November and once in March to deliberate onkey KPIs and KPIs for each policy.Human Resource / Promotional Structure (since fiscal 2021)Board of DirectorsSustainability CommitteeHuman Resources Sub-committeeSub-committee Chairperson: Kazuya Murakami, Executive Officer,Head of Human Resources DepartmentSub-committee Members: Executive Officers and General Managersof Human Resources Section ateach Divisional Company,Executive Officers at headquartersOffice: Human Resources DepartmentHuman resources department at Divisional CompanyHR sections at production sites, laboratories,sales facilities, affiliates, etc.EachLabor-managementCommitteeHR at headquartersSet Specific Goals and Implement MeasuresThe Medium-term Management Plan (fiscal 2020-2022) involves implementing initiatives to become a vibrant company that encourages employees to take on challenges as well as realize a challenge-oriented corporate culture regarding key human resource issues for achieving the sustainability of society and SEKISUI CHEMICAL Group, targetedunder the Long-term Vision.Key Initiatives and management frameworks:Vision Management・ Implement the Long-term Vision, instill ESG management:People Management・ Transition to a challenge-oriented corporate culture・ Shift to human resources management based on having the right person in the right place :HR (Human Resources)ManagementMateriality Human Resources248
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesVision Management KPI (Degree of Challenging Behavior Expression)Degree of Challenging Behavior SurveyGuided by the statement, Innovation for the Earth, which lies at the heart of its Long-term Vision, Vision 2030,SEKISUI CHEMICAL Group is working diligently to link efforts aimed at realizing a sustainable society to the sustainable growth of the Group by solving social issues and providing peace of mind that continues into the future. Morethan anything, it is important for each and every employee to demonstrate their abilities and to break free from convention while continuously taking on challenges in order to realize this Long-term Vision.SEKISUI CHEMICAL Group has identified certain KPIs to measure the degree to which the Group as a whole achievesfive key issues (governance (internal control), DX, the environment, human resources, and fusion) in the conduct ofits ESG management.As an indicator to measure whether SEKISUI CHEMICAL Group is an excellent and vibrant company where employees thrive on challenges, we have identified the degree of challenging behavior as a KPI. In a bidto confirm this KPI, the Company implements an employee survey.The efforts of each and every employee to take on challenge is of utmost importance in realizing our Long-term Vision. The objectives of the survey are to periodically determine whether employees are in fact engaging in challenging behavior and whether the organization is conducive to taking on challenges. The results are then used to ensureimprovements at each workplace. In fiscal 2020, the program was implemented as a benchmark. In fiscal 2021, stepswere taken to reset the target values after confirming the progress of the activities. We will continue to conduct surveys in fiscal 2022 and beyond, and use the results to make further improvements. This is expected to help create acorporate culture that encourages challenge.Degree of challenging behavior expression survey (FY2021）Degree of challenging behavior expression rate：13%（Japan 8%, Overseas 38%）* Percentage of respondents who answered "Yes" to the question"I am taking concrete actions to engage in challenging behavior to realize Vision 2030.Coverage rate：93%（Japan 100%, Overseas 83%）* Percentage of companies surveyed of the Group's 164 companiesResponse rate：62％（Japan 60%, Overseas 69%）* Employees who responded to the survey as a percantage of all employees of the companieswhere the survey was conducted.Materiality Human Resources249
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesImplementing the Long-term VisionIn order to realize the Long-term Vision, Vision 2030, organizational managers are the key persons to ensuring workplace deployment as well as reflection on and dissemination of the vision of each department. This leads to the empathy of employees while fostering the spirit of challenging among individuals. In line with the three-year roadmap,in fiscal 2021, we applied prior examples of fostering the spirit of challenge in the workplace aimed at engaging intwo-way communication with management and putting challenges into practices.First, feedback from the president on the opinions expressed in last year’s activities and prior examples were showcased on the intranet and widely disseminated to employees. Next, Long-term Vision Workshops were conducted formanagers. We reexamined actions within the Company’s organizational setting that generate challenges based onthe know-how extracted from prior examples and mutual advice provided among other managers. Based on theseactions, we will continue dialogue with employees in each workplace in order to put challenges into practice.Overseas, we are planning and implementing similar measures in four regions (North America, Europe, China, andSoutheast Asia) in a manner tailored to each region. We aim to create workplaces where each employee finds workmeaningful and worthwhile, and is able to take on challenges with enthusiasm.Long-term Vision Deployment Roadmap (Overview of Initiatives for the 3-Year Period)Materiality Human Resources250
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesLong-term Vision Workshops for ManagersWorkshopsImpressions of the Workshop Participants・“I learned that other participating managers have similar problems, and I empathized with their struggles and innovations.”・“I was inspired to imitate the examples presented and efforts of other managers.”・“I am thinking of doing a Vision Caravan at my company to foster opportunities for dialogue with management.”・“I want to increase communication (opportunities for praise) with members.”・“It was a good opportunity for us to review our actions by using the know-how extracted from the case studies toreflect on how our own organization is managed.”Materiality Human Resources251
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesPeople Management Deepening EngagementEngagement SurveySEKISUI CHEMICAL Group periodically conducts an engagement survey targeting all employees every three years.The Group asserts that continued empathy with, and undertaking of, the Vision, as well as the feelings of individualemployees that they are always the key players and that they have the determination to do their best and not giveup until the results surpass expectations, in other words engagement, is crucial for achieving the SEKISUI CHEMICALGroup Long-term Vision, Vision 2030.The results of the survey conducted in fiscal 2019 were analyzed and examined by the Business Strategy Departmentand the Human Resources Department, and served as the basis for formulating the current Long-term Vision and theMedium-term Plan. In fiscal 2020, each Group company, both in Japan and overseas, took the lead in conducting interim surveys on a voluntary basis. In fiscal 2021, steps were taken to conduct an engagement survey in conjunctionwith a survey on the degree of challenging behavior expression.The results of the survey in fiscal 2021 are a 6-point improvement over the fiscal 2019 survey.Moving forward, we will undertake an analysis issues and formulate measures on a Group-wide and individual company basis as a means to accelerate the improvement of engagement across the Group as a whole.Engagement Drive ProjectWorking to become a vibrant company with a large number of highly engaged employees dedicated to achievingour Long-term Vision, we launched the Engagement Drive Project, made up of members from the human resourcesdepartments of each organization, with the goal of increasing engagement. From fiscal 2021, we are acceleratingactivities, including efforts to foster a culture that encourages challenge.Materiality Human Resources252
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Appendices Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management Engagement Drive Project 2020-2022 Activity StagesFY20202Q3Q4Q Start alysis and reconsiderationof measures1QFY20211Q3Q作成中2QFY20224QImprovement activities utilizingmid-term survey results1Q2Q Regularsurveys3Q4QContinuousimprovementutilizing the resultsof regular surveysDrafting of the nextMedium-term Plan basedon analysis of the resultsof regular surveysAiming for elevated engagement int h e re g u l a r e n g a g e m e nt su r ve ycarried out in the 1st quarter of fiscal2022 (aiming for an increased scorecompared to fiscal 2019)To promote the implementation of action plans geared toward addressing various issues in each organization, weundertook a wide range of support activities in fiscal 2021. These activities included the sharing of materials usinginternal SNS, posting case studies, conducting workshops and seminars, and providing lectures on examples fromother companies.Carrying on from the previous fiscal year, we continued to hold organizational development seminars to gain a bird’seye view of organizational issues and acquire the know-how necessary to involve stakeholders in the implementationprocess. Among a host of benefits including the ability to ensure practical application, these efforts helped improveoverall project skills.・ Number of organizations engaged in activities: 83 in total, including SEKISUI CHEMICAL subsidiary companies inJapan and Headquarters business sitesMain ProgramsNumber of participantsFiscal 2021 Activity Awards & Kick-off Meeting163Organizational Structure Development Seminars DAY 1:Next Steps to Refine Feedback and Action Plans for Organizational Change54Organizational Structure Development Seminars DAY 2:Stakeholder Analysis, Model Approach to Individuals and Each Level35Workshop on How to Read the Degree of Challenging Behavior Expression Survey110Materiality Human Resources253
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management Case study presentation at the SEKISUI CHEMICAL GroupKAIZEN Activities Convention in fiscal 2021.Kick-off meeting of assembled project membersMateriality Human Resources254Appendices
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesEmployee Career DevelopmentAllowing Diverse Human Resources to Excel (Career Autonomy)Basic ConceptAs an overall Company activity, we strive to foster diverse human resources throughout the Group based on the twopillars of training business leaders, who will someday shoulder management, and training efficient staff that canmaintain our manufacturing processes. In addition, we apply measures in which the individual, their superiors, andsystems work as a unified whole to support career autonomy, whereby employees take the lead in building their careers.Note: Career Autonomy: An approach to independent employee career development whereby employees aim towork with vitality in a location to which they are uniquely suited as they prepare to play the role expected ofthem by their companies.Materiality Human Resources255
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesMajor InitiativesCareer Training During Role Turning PointsUnder a new human resources system established to realize the Long-term Vision, each individual employee is required to actively and ambitiously contribute to his or her specific role. For this purpose, steps were taken to transition career training from the conventional framework based on the axes of age and seniority to one based on theaxes of role and occupation.In fiscal 2021, we implemented career autonomy e-learning for employees and career autonomy online training formanagers and supervisors, under a career education systems based on a new framework.Target of career autonomy e-Learning: 3,461 employeesParticipants of career autonomy online training for managers and supervisors: 393Career Interview SystemSEKISUI CHEMICAL is taking steps to put in place a system to promote the independent career development of eachemployee through interviews and communication between superiors and subordinates regarding current and futureroles and expectations from fiscal 2022 on a non-consolidated basis.In light of their past experience and current duties, subordinates comment on their careers based on the roles theywould like to play in the future and expectation toward SEKISUI CHEMICAL Group. Superiors then discuss with subordinates their career plan during interviews while commenting on the expectations the organization and companyhold for each employee based on the employee’s aspirations and image toward training that SEKISUI CHEMICAL envisages on a non-consolidated basis.In order to realize the career plans that were discussed during interviews, subordinates consider what abilities and experience they require, how these abilities and experience can be acquired, and then take action with the support ofsuperiors. The content of current and past interviews is shared with superiors and the Human Resources Department,and used when considering development, training, and work assignments.Improving Group-wide Human Resources CapabilitiesSEKISUI CHEMICAL Group is promoting various initiatives to secure and develop human resources with theaim of improving the Group’s human resources for sustainable growth.Materiality Human Resources256
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and ResultsAppendices Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management Performance DataResults of Intra-Group Job PostingsCumulativeTotal 411301406254801,414Number of applicants991151351552361,399Number of employees transferred1926282870303Number of positions postedNumber of employees recruitedCareer Path Support SystemCourses for employees who havechanged careersCourses for employees who haveconverted to permanent, fulltime employment(Number of emale22124Male53214Female117111410Average Hours of Training and Development per FTE (SEKISUI CHEMICAL)Average hours of training anddevelopment per FTE .1Note: Educational programs held at SEKISUI CHEMICAL’s Human Resources Department at Corporate HeadquartersTraining Programs Common to the Entire Group to Improve Group-wide HumanResources CapabilitiesFY2017FY2018FY2019FY2020FY2021No. of New employees receivinginduction training223251243101*150No. of newly appointedmanagers receiving training245210252220199* Since this training was urgently converted to an online format due to the COVID-19 pandemic, trainees fromGroup companies are not included.Materiality Human Resources257
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesHuman Resources Management The Right Person in the Right PlaceEmployees are precious assets bestowed on us by society is the basic concept of human resources that SEKISUICHEMICAL Group has cherished for a long period.While continuing to base our thinking on this concept, we launched a new initiative in fiscal 2020 to further harnessthe power of our employees, who are precious assets, to help solve social issues and contribute to the realization ofa sustainable society.1. Clarification of missions and roles and a shift to a role-based system for human resourcesThrough backcasting, we are clarifying the various missions and roles that are necessary to achieve our ideal form.We are also supporting employees to challenge and improve themselves regardless of age or year of employmentwhile shifting to a system for human resources that ensures that the right person is in the right place in fiscal 2022.SEKISUI CHEMICAL (Non-consolidated) Human Resources System Revision RoadmapMeasureFY2020Shifting to right person in theright place human resourcesmanagementConsideration ofa new humanresources systemFY2021FY2022Trial of anew humanresources systemImplementationof a new humanresources system2. Retirement extensionIn line with the objectives for the human resources system revision, the retirement age is being extended from 60 to65 in order to increase opportunities for employees regardless of age from October 2021.3. Strengthening the development of next-generation leadersSEKISUI CHEMICAL Group is putting in place a program to help employees acquire the knowledge, skills, and knowhow necessary to become business leaders from an early stage in a bid to sustainably develop human resources whocan take on the challenge of various missions and roles. The program is therefore designed to help employees improve their ability to contribute to solving social issues and achieve career autonomy.Materiality Human Resources258
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Governance , DX , Environment , Human Resources ,Fusion , and Key Measures for Each Materiality ) Basics of ESG Management AppendicesTraining Human ResourcesMajor InitiativesDeveloping Business Leaders1) Developing business leaders from an early stageWe have developed a consistent training system covering all stages from new hires to management positions, in order to systematically train business leaders to power SEKISUI CHEMICAL Group into the future.Based on the concept that the foundations of growth are the experience gained through everyday business activitiesand learning from such experiences, we have developed a training system that links these two elements together.Through this system we will enhance each individual’s mastery of the skills required of business leaders, by runningthrough the cycle of growth through experience, from when a new hire joins the Company through to management.2) Innovation School (fostering of business leaders by newly appointed operating officers)The Innovation School has been held since fiscal 2003 with the aim of having executive officers themselves directly train SEKISUI CHEMICAL Group’s next-generation business leader candidates. Up to fiscal 2021, a total of 1,296next-generation business leader candidates had taken part.In fiscal 2021, the School was revised from a face-to-face to an online format.Number of Participants: 102Materiality Human Resources259
Vision and ESG Management Top Message Vision 2030 ESG Management ESG Management Activities and Results Products to Enhance Sustainability MaterialityMateriality( Gov
diversity management across the entire Group, steps were then taken to promote female empowerment as a first step. Thanks largely to the dual efforts of promoting women's empowerment while creating a positive organizational environment, SEKISUI CHEMICAL was selected as a Nadeshiko brand among a number of other achievements.
