Sustainability
Sustainability Management
Basic Concept
The Group engages in efforts to solve environmental and social issues based on our Management Philosophy of Creating a Better Future Through Monozukuri, developing various businesses to help create a truly affluent society. This Basic Philosophy represents the very essence of our approach to sustainability. We are committed to addressing environmental and social issues more seriously than ever through Monozukuri, helping to create a truly affluent society.
Central Glass Co., Ltd. aims to improve enterprise value from a long-range viewpoint through business activities while taking the global environment, society and economy into consideration.
Vision
The Group revised our original Basic Policies into what we now call our Purpose as a guideline for sustainable growth. This Purpose redefines our role and significance in society. We also formulated our long-term vision, VISION 2030, which will guide us through the year 2030. We set forth our aspirations in VISION 2030 to Become a Specialty Materials Company Contributing to the Realization of a Sustainable Society.
We will unite our companies to become a corporate group that continues to create and provide valuable materials to serve our purpose in creating a sustainable society.
Policies
The Group identifies materialities that reflect our corporate philosophy, medium-term management plan, stakeholder expectations, and other factors, taking into consideration the business environment surrounding the Group and our basic approach to sustainability. We create economic and social value through our efforts to solve such issues through our business activities.
We set medium- and long-term initiatives and targets which we pursue through the PDCA cycle under the supervision of the Board of Directors.
Promotion Framework
We established the Sustainability Committee to further strengthen Group sustainability initiatives by analyzing and evaluating such initiatives and activities across the organization. The committee then reports and makes recommendations to the Board of Directors as necessary. The committee meets as necessary to centralize sustainability-related initiatives, analyze and evaluate plans and implementation status, and discuss, analyze, and evaluate sustainability-related issues.
| Main Purposes | (1) Get overall grasp of activities to promote sustainability by the Group (2) Comprehensively analyze and examine efforts for sustainability (3) Make recommendations to the management toward solving social issues as necessary |
|---|---|
| Composition |
Chairperson: Executive in charge of the Corporate Communications Dept. Vice-Chairperson: Executive in charge of the Corporate Administration Dept. and the Environment and Safety Dept. Committee Members: Designated responsible persons of each department Secretariat: Corporate Administration Dept., Corporate Communications Dept., and Environment and Safety Dept. |
Materiality
Materiality-Identifying Process
By taking the following process, we evaluate risks and opportunities in terms of both importance to our Company and importance to our stakeholders to identify Materiality and KPIs.
| Step 1 | Select candidate issues based on the international guidelines (GRI and ISO26000) and the investigation content from the Sustainability Committee while considering requests from society. |
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| Step 2 | Comprehensively evaluate such issues at the Sustainability Committee from the two viewpoints of importance to our Company and importance to our stakeholders, and formulate a tentative plan. |
| Step 3 | Clarify their relationships with the management policies, the Midterm Plan, etc. and discuss them at the Board of Directors to identify priority issues. |
Materiality
After taking this identifying process, we have identified on priority issues for eleven items in three areas as well as KPIs for initiatives to tackle them. In particular, considering relationships with the business, “Solution of Social Issues Through Business Activities: Provision and Development of Products that Solve Social Issues” is positioned as a top-priority issue.
[Background of the Top-Priority Issue and Its Concept]
The realization of a decarbonized society is a global challenge that cannot be procrastinated, and there remains much room in which our Group can make contribution in terms of sales and development in important areas, such as the reduction of greenhouse gas (GHG) emissions, the electrification of vehicles, energy saving, etc. We also believe that taking such initiatives will create business opportunities and meet the expectations and needs of our stakeholders.
Fields Materiality
| ⅠSolution of Social Issues Through Business Activities | [Environment] A. Provision and Development of Products that Solve Social Issues |
|---|---|
| Ⅱ Measures for Environmental Protection | B. Measures for Climate Change C. Improvement of Energy Use Efficiency |
| Ⅲ Enhancement of Business Foundations | [Society] D. Diversity & Inclusion E. Enhancement of Human Resource F. Improvement of Quality Management G. Promotion of Industrial Health and Safety, and Security and Disaster Prevention H. Enhancement of Supply Chain Management I. Respect for Human Rights |
| [Governance] J. Enhancement of Compliance System K. Enhancement of Corporate Governance |
KPI
I Solution of Social Issues Through Business Activities
| Materiality （ESG） |
Initiatives and Key Performance Indicators (KPIs) | 2027 Targets |
|---|---|---|
| [Environment]A. Provision and Development of Products that Solve Social Issues | Offer and expand environmentally friendly products [Chemicals segment] (total sales of low-GWP, energy-saving products) |
76.0 billion yen |
| Offer and expand environmentally friendly products [Glass segment] (Sales volume ratio of eco-glass and thermal insulation automotive glass compared with FY2024) |
135% | |
| Offer and expand new PFAS-free products [Chemicals segment] (Ratio of FY2024 net sales) |
250% | |
| Provide and develop coated fertilizers that help solve food issues [Fertilizer business] (Pursue environmental friendliness and contribute to labor savings in line with sustainable agriculture) |
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| Strengthen R&D (focus areas: energy conservation, low GWP, SiC, CO2 collection and utilization, PFAS compliance, regenerative medicine) |
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II Measures for Environmental Protection
| Materiality （ESG） |
Initiatives/Key Performance Indicators (KPIs) | 2027 Targets |
|---|---|---|
| B. Measures for Climate Change Issues | Reduce GHG emissions (Scope 1 and 2) | 320,000 tons of CO2 |
| GHG emissions avoided by providing environmentally friendly products*1 | 5,800,000 tons of CO2 | |
| C. Improvement of Energy Use Efficiency | Impact management for water use Central Glass Group water withdrawal (compared with FY2024) | 3% reduction |
| Impact Management for water use Number of violations of water pollution laws and regulations | 0 | |
| Reduce the final disposed amount of industrial waste (compared with FY2020) | 15% reduction |
III Enhancement of Business Foundations
| Materiality （ESG） |
Initiatives and Key Performance Indicators (KPIs) | 2027 Targets |
|---|---|---|
| [Society]D. Diversity Equity, and Inclusion※2 | Increase the ratio of female employees | 13.5% |
| Increase the ratio of male employees utilizing parental leave | 84% | |
| Increase the employment rate of persons with disabilities | 2.7% | |
| DE&:I training (total percentage of managers taking related training) | 96% | |
| Encourage employees to take paid leave | 80% | |
| E. Enhancement of Human Resources Development | Increase employee training opportunities (training hours per employee)※2 | 17 hours |
| Improve and enhance employee education, including all Group company employees | Identify training issues and needs for employees in Japan and overseas; provide training support | |
| F. Improvement of Quality Management | Eliminate serious quality issues (number of occurrences) | 0 |
| Mitigate quality-related risks through outsourced contractor audits (annual auditing execution rate) | 100% | |
| Improve quality education | Improve workers’ proficiency level by providing group-wide quality education, enhancing Monozukuri Education content at production sites, and increasing education opportunities. | |
| G. Pursuit of Industrial Health and Safety, and Safety and Disaster Preparedness | Promote industrial health and safety (number of accidents that require leave) | 0 |
| Promote safety and disaster preparedness (number of serious accidents) | 0 | |
| H. Enhancement of Supply Chain Management | Pursue CSR procurement | Strengthen our management of compliance with the Code of Conduct, focusing on suppliers of main raw materials. Request improvements and manage progress of corrective actions as needed. |
| I. Respect for Human Rights | Strengthen initiatives to respect human rights | Continue education on respect for human rights and enhance efforts related to human rights due diligence |
| [Governance]J. Enhancement of Compliance System | Enhance compliance education | Expand or revise training based on social, environmental, and economic trends; step up awareness-raising activities based on the results of monitoring |
| K. Enhancement of Corporate Governance | Improve the evaluation of the effectiveness of the Board of Directors | Aim to improve effectiveness through a selfassessment questionnaire (5-point scale). |
- Based on the CO2 emissions reduced at the use stage of the final products that use our environmentally friendly products. Avoided emissions are estimated using our unique formula to calculate reduced emissions through one year of use based on Company sales volume.
- Non-consolidated company and secondees