Identification of (Materiality) The identified key issues were classified as "the impact of the Mitsui Chemicals Group s business on society," "social

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1 The Mitsui Chemicals Group adopts a long-term management perspective based on the triple bottom line management approach outlined in its Long-term Business Plan. Against this backdrop, the Group is actively engaged in resolving social challenges in a bid to achieve environmental and social targets. Moreover, we continue to assess the various impacts that our business activities have on society and have identified key (materiality) issues that need to be addressed in order to ensure our targeted future society as a part of efforts to secure the sustainable growth and development of society and the Group. Process for Identifying We at the Mitsui Chemicals Group believe that chemistry must play a prominent role in addressing a variety of environmental and social challenges. In accordance with its Corporate Mission of "keeping in harmony with the environment," the Mitsui Chemicals Group has worked to resolve these challenges through business activities that emphasize striking a balance between economic, environmental and social considerations. We have further clarified our inhouse initiatives related these environmental and social considerations by formulating the 2025 Long-Term Business Plan and are also based on the Paris Agreement *, Sustainable Development Goals (SDGs), and recent social trends. Moreover, we will address issues found throughout the supply chain and are a concern for our various stakeholders. On the basis of these initiatives and with the aim of reaching the environmental and social targets raised in the 2025 Long- Term Business Plan, the Mitsui Chemicals Group has reviewed these key issues while taking into consideration the opinions of its stakeholders, the qualities of its businesses and the characteristics of the regions in which it operates, and international guidelines to measure the impact of the Group s business activities. We will review as necessary these key issues in light of social trends and changes in its business activities. * The Paris Agreement The Paris Agreement was adopted at the 21st Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change held in December The agreement has set a target of keeping global average temperatures from rising 2 C compared to temperatures before the industrial revolution by the end of the century while also urging parties to pursue efforts to limit it to 1.5 degrees. Advanced and emerging countries alike have also earnestly agreed to address the implementation of those SDGs under the agreement. Step 1: Identification We first screened the issues based on international guidelines such as ISO and GRI as well as by engaging with various stakeholders. While drawing up the 2025 Long-Term Business Plan, the Mitsui Chemicals Group then identified environmental and social issues that the chemicals industry must help resolve from the standpoint of contributing to society through business activities. Step 2: Prioritization The issues identified in Step 1 are then ranked in order of importance for stakeholders and priority for the Mitsui Chemicals Group. We itemize issues with common characteristics in order to consider their importance and cross reference them from the standpoint of stakeholders as well as based on the original materials used by stakeholders to evaluate and analyze these issues. Based on this, we considered measures that the Mitsui Chemicals Group need to implement in order to address these issues. In assigning priorities to the issues from the standpoint of the Mitsui Chemicals Group, we took into account our Corporate Mission, Action Guidelines, and business strategies. Evaluating these items on a quantitative basis, we selected 22 key issues and ranked them in order of priority. Step 3: Validation We solicited opinions from outside experts regarding the items identified as key issues and confirmed the validity of issues through the CSR Committee after verifying the comprehensiveness of these identified issues. Step 4: Review We conducted a review of the key issues to establish detailed and quantitative targets in tandem with formulating of the 2025 Long-term Business Plan. The CSR Committee will regularly review the process for identifying key issues. As a part of this review, steps will also be taken to ensure that processes and the setting of targets are in line with social conditions. Then, we will confirm the status of implementation progress. 60

2 Identification of (Materiality) The identified key issues were classified as "the impact of the Mitsui Chemicals Group s business on society," "social challenges that the Mitsui Chemicals Group should help to resolve," and "basic subjects." Matrix of (Materiality) Impact of the Mitsui Chemicals Group s business on society Measures to address climate change (reducing GHG emissions) Air environment preservation Water resource protection and control Biodiversity Industrial waste control Efficient use of resources Stable supply of industrial materials Optimization of production Safety and prevention Labor conditions Product stewardship Social challenges that the Mitsui Chemicals Group should help to resolve Low environmental-footprint products and services Development of renewable energy Shift to urbanization and smart cities Declining birthrate and ageing population Advancement of medical and pharmaceutical fields Respond to the food problem Basic subjects Sustainable procurement Compliance Quality of products and services Employment and human resources Stakeholder Engagement and the Mitsui Chemicals Group s Response Social challenges that the Mitsui Chemicals Group should help to resolve Low environmental-footprint products and services Reducing environmental impact including addressing climate change, we are working to achieve a low carbon, recyclingoriented, and cohesive society in harmony with the environment over the long term that curbs environmental burdens to the greatest extent possible throughout the entire value chain. Reduce the use of raw materials Switch to non-fossil fuel resources and substances with lower environmental burdens Reduce environmental burdens mainly by lowering energy consumption in manufacturing and processing processes Develop lightweight materials for use mainly in automobiles Environmental Contribution Value, Blue Value Products and Services that Contribute to Sustainable Development 61

3 Development of renewable energy Meet the growing demand for energy accompanying the economic development of developing countries and emerging markets, reduce accompanying environment burdens, and realize a society that makes greater use of renewable energy. Development of components/materials for such items as power generation equipment and storage batteries to promote the use of renewable energy Improvement of photovoltaic power generation plant operational efficiency and assist with related investment decisions Renewable Energy-related Business Shift to urbanization and smart cities Enhancement of smart society and urban functions that bring people and various things together by leveraging the advantages found in concentrating social infrastructure amid progressive urbanization. Development of and providing solutions through technologies and products that contribute to the spread of automated driving and robots Declining birthrate and aging population Realization of a society that provides abundant, high-quality lifestyles to children and the elderly amid changing demographics Develop and provide products that contribute to comfortable lifestyles in such areas as materials used to make disposable diapers and underwear Develop and provide products that promote food convenience including innovative packaging that makes food easier to eat Develop and provide products that support extensive nursing care QOL Improvement Contribution Value, Rose Value Advancement of medical and pharmaceutical fields Realization of healthy and comfortable lifestyles in an aging society by improving the quality of medical treatments Develop and provide products that help people use their entire bodes (head, neck, chest, hands, and feet) and five senses (sight, hearing, smell, taste, and touch) Develop and provide products that contribute to longer life expectancy, including pharmaceutical packaging materials and infusion bags 62

4 Develop and provide products that help prevent infectious diseases Develop diagnostic technologies that leverage an understanding of chemistry QOL Improvement Contribution Value, Rose Value Respond to the food problem Provide sufficient nutrition to everyone and improve dietary habits throughout society by increasing food productivity and reducing food loss and waste Develop and provide products that help increase food production Develop and provide products that extend expiry dates and reduce food loss Develop and provide products that help reduce food waste while contributing stable food distribution QOL Improvement Contribution Value, Rose Value Back to Top Impact of the Mitsui Chemicals Group s business on society Measures to address climate change (reducing GHG emissions) In light of the impact of climate change, significantly reduce and mitigate the effect of greenhouse gases emitted during the course of our business activities Measures to address climate change Responsible Care Policy Environmental Protection Management System Measures to Address Climate Change Air environment preservation In addition to complying with the laws and regulations of individual countries, the Mitsui Chemicals Group controls gas emissions and reduces the impact of chemical substances leaking into the atmosphere. Management of Substances Subject to the PRTR Act Preserving air quality Responsible Care Policy Environmental Protection Management System Substances Subject to the PRTR Act Preserving Air Quality Water resource protection and control Realization of environments that allow for the efficient use of water by complying with laws and regulations of individual countries, recycling, and appropriately managing and improving the handling of such water contaminants 63

5 Preserving Water Quality Responsible Care Policy Environmental Protection Management System Substances Subject to the PRTR Act Philosophy on Water Resources Preserving Water Resources Biodiversity The Mitsui Chemicals Group takes into consideration biodiversity in its business operations across the entire value chain and promotes sustainable environmental conservation Preservation of Biodiversity Responsible Care Policy Environmental Protection Management System Biodiversity Industrial waste control We continue to minimize the amount of industrial waste produced at all of our domestic and overseas manufacturing sites and reduce final landfill waste volume. Reducing Industrial Waste Responsible Care Policy Environmental Protection Management System Reducing Industrial Waste Efficient use of resources More efficiently use fuel and resources at domestic and overseas manufacturing sites (including product raw materials) and further pursue the creation of innovative process technologies Environmentally friendly production technologies Measures to address climate change Preserving Air Quality Stable supply of industrial materials Stably provide industrial materials throughout the wide-ranging global supply chain in order to achieve sustainable economic growth and an abundant society Restructuring to realize stable procurement and supply Process Safety and Disaster Prevention Working with Our Suppliers 64

6 Optimization of production The Mitsui Chemicals Group contributes to the sustainable development of regions by optimizing production systems and facilities that leverage its expertise throughout the global supply chain. Establish an optimal production system based on frontline capabilities Human Resources Development Safety and prevention Aim to be recognized by society as a company with an exemplary safety record. Process Safety and Disaster Prevention Occupational Health and Safety Process Safety and Disaster Prevention Occupational Health and Safety Labor conditions Promote health management by enhancing tangible measures such as improving work environments and facilities to enable employees to continue contributing to business sustainability as well as pursuing intangible measures that focus on healthcare Creating an Employee-friendly Working Environment Working with Our Employees Management System Occupational Health and Safety (occupational health) Creating an Employee-friendly Working Environment Product stewardship The Mitsui Chemicals Group strictly adheres to laws and regulations as well as its own voluntary standards throughout the entire supply chain. In addition, the Group will take steps to minimize the negative impact of chemicals on people s health and the environment by the year 2020 as part of its product stewardship activities. Chemical Management Product Stewardship Quality of products and services 65

7 The Mitsui Chemicals Group will improve quality management including upstream areas throughout the entire supply chain as well as increase customer satisfaction by winning their trust in the area of product quality. Quality management Quality Employment and human resources The Mitsui Chemicals Group is creating organizations that continue to drive innovation that takes into consideration equality, fairness, diversity, human rights, and living wages while giving our employees a sense of personal and professional motivation. Human resources development Diversity Promotion Respect for Human Rights Working with Our Employees Management System Human Resources Development Creating an Employee-Friendly Working Environment Promoting Diversity Stakeholder Engagement The Mitsui Chemicals Group meets the expectations of its stakeholders as a member of society while contributing to sustainable regional development by collaborating with our partners and the areas in which the Group operates to find solutions to social problems. Working with Our Shareholders and Investors Working with Industry, Government, and Academia Working with Local Communities Social Contribution Activities Respect for Human Rights Working with Our Shareholders and Investors Working with Industry, Government, and Academia Social Activities Back to Top Basic subjects Sustainable procurement The Mitsui Chemicals Group will continue procurement activities throughout the supply chain that take into consideration its impact on society and the environment, fair and honest transactions, and respect for human rights. Address conflict minerals Sustainable procurement SAQ Respect for Human Rights Working with Our Suppliers 66

8 Compliance The Mitsui Chemicals Group will work to foster a corporate culture that encourages all employees to observe laws, regulations, and rules in individual countries, take actions in a transparent and appropriate manner, and make decisions and conduct themselves in an ethical manner. Legal compliance Action Guidelines Risk and Compliance 67

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