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’s Purpose (raison d'être)
- Leveraging the manufacturing technologies the UBE Group has cultivated throughout its long history, create the value equired by society, in the safe and environmentally friendly manner demanded by society, and deliver that value to the people. And by doing so, help to solve global environmental issues, which have become a common issue for all humankind, and contribute to people’s lives and health, and an enriched future society.
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.
UBE Framework for Sustainability Initiatives
Under the Company’s framework for sustainability initiatives, each committee discusses individual sustainability issues, reports its initiatives to the Board of Directors and the Strategic Management Meeting, and receives instructions from them.
* 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.
Materiality
Supported Initiatives
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.
14 subcommittees in which UBE participates
Supply Chain Working Group, Environment Management Working Group, GC Internal Promotion Working Group, Kansai Area 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.
External Assessments
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), one of 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 Government Pension Investment Fund (GPIF), one of the largest public pension funds in the world, has selected FTSE Blossom Japan Sector Relative Index as its stock index for ESG investment.
*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.
The MSCI Japan Empowering Women Index, developed by Morgan Stanley Capital International, Inc., is designed to select companies that lead their sector groups in terms of promoting and maintaining gender diversity amoung the top 700 listed companies in Japan by market capitalization. These companies are selected based on data regarding the employment of women disclosed in accordance with Japan’s Act on Promotion of Women's Participation and Advancement in the Workplace.The Government Pension Investment Fund (GPIF), one of the largest public pension funds in the world, has selected MSCI Japan Empowering Women 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.
The S&P/JPX Carbon Efficient Index is jointly developed by S&P Dow Jones Indices and the Japan Exchange Group. The weighting in the index is determined by the degree of disclosure of environmental information and the evaluation of carbon efficiency (tonnes of CO2e per sales revenue) for constituent stocks of the Tokyo Stock Price Index (TOPIX). The Government Pension Investment Fund (GPIF), one of the largest public pension funds in the world, has selected S&P/JPX Carbon Efficient Index as its stock index for ESG investment.
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.
Morningstar Japan ex-REIT Gender Diversity Tilt Index
Morningstar Japan ex-REIT Gender Diversity Tilt Index, built with the data and scoring methodology of Equileap, is designed to emphasize the stocks of companies that have strong gender diversity policies embedded in their corporate culture and that ensure equal opportunities to employees, irrespective of their gender. The Government Pension Investment Fund (GPIF), one of the largest public pension funds in the world, has selected Morningstar Japan ex-REIT Gender Diversity Tilt Index as its stock index for ESG investment.
Nikko Investor Relations Co., Ltd. Corporate Website Ranking
Selected as an AAA Website in the 2022 All Japanese Listed Companies’ Website Ranking conducted by Nikko Investor Relations Co., Ltd.
Stakeholder Engagement
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.
ESG Data
Environment, society and governance (ESG)-related data