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CSR Activities

Sustainability

CSR Activities

CCI Corporation has established an SDGs Promotion Committee (Chair: Tetsuya Okabe, President and CEO of CCI Corporation) and is working to achieve the SDGs. Of the 17 SDG goals, 5 SDG goals were selected as the most important issues from the perspective of business (existing business and future business growth potential) and sustainability (solving environmental and social issues). In order to resolve the issues for these SDGs, each department has set key performance indicators (KPIs).

We are a development-type chemical manufacturing industry. Therefore, as an initiative to achieve SDGs 2030 through business operations, for "SDG 12 - Responsibility in Producing and Responsibility in Using", we will strive to build a recycling-oriented society with a strong awareness shifting away from dependence on petroleum in raw materials. For "SDG 9 Let's Lay the Foundation for Industry and Technological Innovation," we will invest more aggressively than ever before in research and development in order to reduce fat and oil waste by using fat-splitting microbial agents. For "SDG 3 Health and Welfare for All", we will gradually switch away from substances that place a burden on the environment, under the motto "Do not use environmentally impactful substances", not only for our employees but also for people involved with our products.

Furthermore, in order to support SDGs 2030 through business, for "SDG 8 Both Job Satisfaction and Economic Growth", we will promote digitization and automation in order to improve employee engagement. For "SDG 13 Specific Measures for Climate Change", we will reduce CO2 emissions by 30% compared to FY 2013 through energy-saving investments at our manufacturing sites.

Sustainability (viewpoint on solving environmental and social issues) Business (viewpoint on future growth potential of existing businesses) Global Society Cost Profit
SDG Targets Examples of Priorities KPI 2030 KPI 2020
Building a recycling-oriented society for our products Recovering resources and utilizing them Understanding the current situation
Substituting with non-petroleum-derived raw materials Establishment of mass production technology Establishment of technology
Waste reduction from procurement to on-site construction to demolition Reduction of oil and fat waste by using fat-splitting microbial agents Expansion of sales of microbial agents
Reduction of the amount of environmentally impactful substances used Zero use of environmentally impactful substances Three cases of establishing alternatives to environmentally impactful substances
Reduction of CO2 emissions -30% compared with 2013 Understanding the current state of CO2 emissions
Building the system and the environment that allows you to work anywhere Freely changing desks in the work place,
digitization,
elimination of paper
■ Verification of thin clients with a few people, implementation, and problem identification
■ Introduction and promotion of use of telecommuting system
■ Introduction of business phones
■ Establishment of satellite offices
■ Consideration of introducing micro-learning
Improving employee engagement Improve employee engagement
(Numerical target after introduction of survey)
■ Introduction of engagement survey
■ Construction of a system for health consultations with industrial physicians
■ Average number of paid eligibility days 10 days or more
■ Employee turnover rate 5% or less
Automation through introduction of new technology 50% automation of manufacturing operations Smart Factory
Project (SFP) completion

SDG 12

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

Things That Are Likely to Happen in the World Going Forward

  • To achieve the 2°C "Sustainable Development Scenario" target for limiting temperature rise, which is a shared global target,
    petroleum demand in the late 2030s is expected to return to 1990s levels.
  • Development of product manufacturing technology using new materials to replace petroleum-derived products.
  • Building environmentally friendly product lifecycles to curb increasing waste and pollution.
Oil demand:Current Policies Scenario New Policies Scenario 2℃Scenario Dollars per barrel(2015)Oil price(right axis): Current Policies Scenario New Policies Scenario 2℃Scenario

Source: World Energy Outlook 2019
Forecast of global oil demand and price trends for each scenario

What We as a Company Will Work on

We will build a sustainable recycling-oriented society in order to use limited resources carefully
and to return them to the Earth of the future.
Examples of Priorities KPI 2030 KPI 2020
Building a recycling-oriented society for our products Recovering resources and utilizing them Understanding the current situation
Substituting with non-petroleum-derived raw materials Establishment of mass production technology Establishment of technology

SDG 9

INDUSTRY, INNOVATION
AND INFRASTRUCTURE

Things That Are Likely to Happen in the World Going Forward

  • We will promote innovation in order to contribute to the improvement of the entire world's infrastructure for human life, especially in medical,
    energy and mobility-related fields, in which needs are becoming more sophisticated and diversified.
  • As the shortage of workers in Japan intensifies, the demand for products and services that utilize AI and DX will increase in order to
    improve work efficiency, for example by shortening work times.

What We as a Company Will Work on

We will actively invest in research and development to solve social and
environmental issues and customer's issues.
Examples of Priorities KPI 2030 KPI 2020
Waste reduction from procurement to site operation to demolition Reduction of oil and fat waste by using fat-splitting microbial agents Expansion of sales of microbial agents

SDG 3

GOOD HEALTH
AND WELL-BEING

Things That Are Likely to Happen in the World Going Forward

  • In order to minimize the risk of industrial morbidity and mortality caused by toxic chemicals, it will become even less possible to use toxic chemicals.
    In addition, high safety standards will be required for their use.
  • Improvement of the working environment of employees in the value chain and health care for employees
    and their families will also be strongly required. (Some efforts are made for this under SDG 8.)
  • Active investment is expected in the development of traffic accident prevention technology, vaccines for infectious diseases, and other such areas.
Unit: Thousand tons/year of emissions Amount of movement Toluene manganese and its compounds Xylene chromium and trivalent chromium compounds Ethylbenzene Methylene chloride Normal-hexane Hydrofluoride and its water-soluble salts N,N-dimethylformamide Ferric chloride

Source: Ministry of Economy, Trade and Industry 2017
PRTR Data Top 10 Reported Substance Emissions and Movement

What We as a Company Will Work on

With the motto "Do not use environmentally impactful substances", we will steadily switch away from them.
Examples of Priorities KPI 2030 KPI 2020
Reduction of the amount of environmentally impactful substances used Zero use of environmentally impactful substances Three cases of establishing alternatives to environmentally impactful substances

SDG 13

CLIMATE
ACTION

Things That Are Likely to Happen in the World Going Forward

  • The IEA's Sustainable Development Scenario states that industrial sector carbon prices in developed
    countries will be $63/ton in 2025 and $140/ton in 2040.
  • Japan's carbon tax is $39/ton as of 2016, which is low compared to other countries.
    Going forward, carbon prices will be on the rise and the burden on companies will increase.
Carbon prices executed by major countries (2016) 2025 2040 Poland South Korea Estonia New Zealand Argentina Czech Republic Japan Hungary Turkey Slovakia Belgium Spain Portugal Finland Austria Germany Greece Israel France Slovenia Sweden Ireland United Kingdom Italy Iceland Denmark Netherlands Norway Luxembourg Switzerland

Source: OECD (2016) "Effective Carbon Rates",
Based on the Ministry of the Environment "Carbon Pricing (Carbon Tax)"
Unit US$ From 2025 to 2040, carbon prices are expected to more than double.

What We as a Company Will Work on

We also perform advanced energy management, for example waste heat utilization and fuel conversion to reduce CO2 emissions from manufacturing sites and to improve productivity.
Examples of Priorities KPI 2030 KPI 2020
Reduction of CO2 emissions -30% compared with 2013 Understanding the current state of CO2 emissions

SDG 8

DECENT WORK AND
ECONOMIC GROWTH

Things That Are Likely to Happen in the World Going Forward

  • The environment for utilizing information and communications technology (ICT) at Japanese companies is being improved to follow the developed countries of Europe and the United States and the introduction of ICT into business is becoming more active.
  • In order to respond to the shortage of workers caused by the decrease in the working-age population, the productivity of companies will be improved and working styles will be diversified by investing in and utilizing AI and ICT.
Status of establishment of environments for utilizing ICT (%) Japan United States United Kingdom Germany Implemented Not particularly implemented or not required

Source: Based on Ministry of Internal Affairs and Communications
"2018 White Paper on Information and Communications"

What We as a Company Will Work on

We will improve employee engagement by promoting digitization and automation.
Examples of Priorities KPI 2030 KPI 2020
Building the system and the environment that allows you to work anywhere Freely changing desks in the work place,
digitization,
elimination of paper
■ Verification of thin clients with a few people and problem identification
■ Introduction and promotion of use of telecommuting system
■ Introduction of business phones
■ Establishment of satellite offices
■ Consideration of introducing micro-learning
Improving employee engagement Improve employee engagement
(Numerical target after introduction of survey)
■ Introduction of engagement survey
■ Construction of a system for health consultations with industrial physicians
■ Average number of paid eligibility days 10 days or more
■ Employee turnover rate 5% or less
Automation through introduction of new technology 50% automation of manufacturing operations Smart Factory
Project (SFP) completion