Sustainability

Why address sustainability?

Our aim is to be “create social and environmental value through our activities and helping both to improve customer value and address social issues”, as declared in the management vision, “Next10(2030)”. This means that we will grow into a company that contributes to the realization of a sustainable society, keeping in mind our coexistence with society. Amid the demand for the building business models premised on a recycling-oriented economy, we view this changing environment as a business opportunity, and we will realize sustainability through new business creation and the continued creation of innovation.

Development of six issues of materiality

We have defined six issues of materiality for the realization of sustainability. They are promoting management for decarbonization, further promoting resource recycling measures, creating and expanding environmental contributing products, promoting CSR procurement, gaining a competitive advantage by promoting digital transformation (DX), and conducting research and development geared to creating innovation. We have also set four items as essential bases for Okura Industrial Group to continue doing business, namely “improving corporate reliability and transparency”, “thorough prevention of contamination”, “coexistence with local communities”, and “developing a working environment where employees are motivated to work”.

Promoting installation of solar power generation facilities at individual plants

Regarding the environment, as an initiative to reduce our environmental burden, We have set a target to reduce CO₂ emissions by 37% of 2021 levels (equivalent to a 50% reduction from 2013 levels) by 2030. To this end, each of our business sites is proceeding with the installation of solar power generation facilities and progressively upgrading plant facilities to energy-saving equipment. We are also accrediting our products with our in-house designation of environmental contributing products and pursuing initiatives to increase the percentage of such products, as well as considering the introduction of internal carbon pricing (ICP) to instill the importance of decarbonization in our employees.

Strengthening human resources development geared toward growth strategies

Regarding society, our main focus is human resources development that will enable growth strategies for the realization of “Next10(2030)”. We are pursuing efforts in four related areas, namely development programs, personnel evaluation systems, diversity, and employee engagement. In particular, to nurture innovative leaders who are able to take on challenges, we will take advantage of external personnel exchanges and training to develop people who will shoulder the next generation of management. We will also pursue the education of evaluators to coincide with the rebuilding of our personnel evaluation system. Further, we will promote diversity through the recruitment of women and foreign nationals and their promotion to executive positions, to bring new sensibilities and ways of thinking to the organization.

Elevating the supervisory function of the Board of Directors

Regarding governance, we have reviewed the composition of the Board of Directors, and we now have six Inside Directors and five Outside Directors. We have also welcomed a woman to the ranks of our Outside Directors. We have established an Audit and Supervisory Committee and Nomination and Remuneration Committee, and, going forward, we hope to further clarify the division of roles between the supervisory function of the Board of Directors and the executive function of the Board Meeting.

Aiming to increase corporate value, keeping in mind our coexistence with society

In promoting sustainability-oriented management, we believe it is vital to create new value together with all our stakeholders. To this end, we recently formulated our Multi-stakeholder Policy. Under this Policy, we aim to co-exist in harmony with all our stakeholders and appropriately allocate the earnings gained through our business activities.

Achieving our CO₂ emissions reduction target one year ahead of schedule

We have set a target to reduce CO₂ emissions by 12% of 2021 levels (equivalent to a 30% reduction from 2013 levels) by 2024, as part of our efforts for “promoting management for decarbonization (climate action measures)” one of the six material issues (materiality) of Okura Industrial Group. We achieved this target in 2023, one year ahead of schedule. We will continue to work towards carbon neutrality by installing equipment that is highly effective in reducing CO₂ emissions and pursuing initiatives throughout the supply chain. With regard to “further promoting resource recycling measures”, we are currently working with customers to consider schemes for the commercialization of chemical recycling, in addition to the mechanical recycling of film products. In relation to “creating and expanding Environmental Contribution Products”, we expect to achieve our target of expanding the percentage of net sales of Environmental Contribution Products to at least 50% of sales in the living support category by 2024.

Progress on other materiality

As part of “promoting CSR procurement”, we are engaged in establishing and operating a mechanism of raw material procurement conscious of human rights, the environment, etc. As part of “gaining a competitive advantage by promoting digital transformation (DX)”, we are improving productivity and reforming operations by introducing new digital technologies. As part of “conducting research and development geared to creating innovation”, we will formulate an intellectual property strategy for the Research & Development Center during 2024, based on what kind of value we want to provide to society in the next decade and what kind of resources are needed to provide that value.

Employees are key stakeholders

For Okura Industrial Group, our employees are our most familiar and important stakeholders. In view of factors such as rising prices, we implemented a base salary rise in 2023, and again in 2024. We revised the education system in 2022, and have launched new training programs. Moreover, starting in 2024, we have introduced a new personnel evaluation system to help employees deepen their understanding of factors such as the roles expected of them by the Company through interviews with their supervisors. Based on the philosophy of connecting that the growth of each employee will lead to the growth of the company, we are striving to develop work-friendly workplaces where employees are motivated to work. We expect that initiatives such as these will provide employees with opportunities to consider their own career design.