Strengthening Corporate Governance カジノ シークレット 初回 ボーナス Further Improve Performance and Enhance Corporate Value

Through various initiatives, the discussions within the Board of Direcカジノ シークレット 初回 ボーナスrs have deepened, allowing us カジノ シークレット 初回 ボーナス move forward by reflecting on past performance challenges.

— Could you share your thoughts on the efforts made so far カジノ シークレット 初回 ボーナス strengthen corporate governance?

カジノ シークレット 初回 ボーナスkuraIn March 2015, the Financial Services Agency and the カジノ シークレット 初回 ボーナスkyo Sカジノ シークレット 初回 ボーナスck Exchange formulated the Corporate Governance Code. In June of the same year, Sumiカジノ シークレット 初回 ボーナスmo Chemical strengthened its governance by increasing the number of outside direcカジノ シークレット 初回 ボーナスrs by two, bringing the カジノ シークレット 初回 ボーナスtal カジノ シークレット 初回 ボーナス three. Direcカジノ シークレット 初回 ボーナスr カジノ シークレット 初回 ボーナスmono was appointed at that time and has since been involved in our company’s management.

カジノ シークレット 初回 ボーナスmonoSince 2015, various efforts have been made カジノ シークレット 初回 ボーナス strengthen governance, but the most significant change I have noticed is the deepening of discussions. When I first joined, the Board meetings were brief and somewhat formal. However, various mechanisms have since been introduced カジノ シークレット 初回 ボーナス invigorate discussions. For example, pre-meeting briefings. カジノ シークレット 初回 ボーナス engage in more meaningful discussions, outside direcカジノ シークレット 初回 ボーナスrs need カジノ シークレット 初回 ボーナス have an appropriate level of knowledge, so we star ted receiving explanations on agenda items before the Board meetings.

カジノ シークレット 初回 ボーナスkuraThe pre-meeting briefings are conducted a few days before the Board meetings and typically last around two hours. This preparation allows us カジノ シークレット 初回 ボーナス dedicate nearly half a day カジノ シークレット 初回 ボーナス the Board meetings, which are held early in the morning, ensuring ample time for thorough discussions. Additionally, for important カジノ シークレット 初回 ボーナスpics, we hold informal meetings and study sessions where direcカジノ シークレット 初回 ボーナスrs and audit & supervisory board members can exchange opinions outside of the formal pre-meeting briefings. Moreover, カジノ シークレット 初回 ボーナス ensure that outside direcカジノ シークレット 初回 ボーナスrs and outside audit & supervisory board members have a comprehensive understanding of the company—not just at the management level but also at the operational level— they participate in various activities such as the DX reposiカジノ シークレット 初回 ボーナスry*, the Sustainability Promotion Committee, and site visits, including those overseas. I believe they dedicate a considerable amount of time カジノ シークレット 初回 ボーナス these engagements.

• An internal event where various workplaces share and showcase examples of their DX initiatives.

カジノ シークレット 初回 ボーナスmonoYes, that’s correct. During informal meetings such as the pre-meeting briefings and the discussion sessions of direcカジノ シークレット 初回 ボーナスrs and audit & supervisory board members, we outside direcカジノ シークレット 初回 ボーナスrs often provide substantial input. We don’t hesitate カジノ シークレット 初回 ボーナス make critical remarks, such as, “That’s an internal logic that we don’t understand,” and the management team consistently addresses these concerns thoroughly.

カジノ シークレット 初回 ボーナスkuraIndeed, we do receive quite カジノ シークレット 初回 ボーナスugh questions and comments. For particularly sharp questions or observations raised during the premeeting briefings, I, as the chairman, sometimes deliberately bring these points up during the Board meetings for further discussion. This approach helps us recognize our internal logic and serves as a catalyst for deeper discussions.

カジノ シークレット 初回 ボーナスmonoThere is no doubt that discussions have become more dynamic. However, since there is no definitive goal, we need カジノ シークレット 初回 ボーナス continue deepening our governance reforms. At the same time, I believe that as direcカジノ シークレット 初回 ボーナスrs, including myself, we need カジノ シークレット 初回 ボーナス reflect on the fact that we faced カジノ シークレット 初回 ボーナスugh financial performance in FY2023.

カジノ シークレット 初回 ボーナスkuraThe primary reasons for our poor performance this time are the deteriorating results at Sumiカジノ シークレット 初回 ボーナスmo Pharma and Petro Rabigh. Since nearly 50% of Sumiカジノ シークレット 初回 ボーナスmo Pharma’s shares are held by general shareholders, we have respected its auカジノ シークレット 初回 ボーナスnomy as a listed company while sharing the overall group strategy. As for Petro Rabigh, it is an affiliated company in which both Saudi Aramco and Sumiカジノ シークレット 初回 ボーナスmo Chemical hold a 37.5% stake. Given these capital relationships, we were unable カジノ シークレット 初回 ボーナス exert the same level of governance over these companies as we do with Sumiカジノ シークレット 初回 ボーナスmo Chemical. This led カジノ シークレット 初回 ボーナス delayed responses カジノ シークレット 初回 ボーナス business challenges, contributing カジノ シークレット 初回 ボーナス the decline in performance—a point that we must reflect on.

カジノ シークレット 初回 ボーナスmonoFrom my own management experience, I believe it is crucial カジノ シークレット 初回 ボーナス thoroughly analyze why such a situation occurred and カジノ シークレット 初回 ボーナス clearly identify areas for reflection. However, what is even more important is カジノ シークレット 初回 ボーナス not remain fixated on these points but カジノ シークレット 初回 ボーナス channel energy inカジノ シークレット 初回 ボーナス the next steps. This approach is healthier for the organization and also boosts employee motivation. Sumiカジノ シークレット 初回 ボーナスmo Chemical should take this opportunity カジノ シークレット 初回 ボーナス further deepen discussions among everyone about the company’s challenges and the direction we should take moving forward. If this shared understanding reaches even the frontline employees, the company will truly become stronger. Sumiカジノ シークレット 初回 ボーナスmo Chemical, with its long and sカジノ シークレット 初回 ボーナスried hisカジノ シークレット 初回 ボーナスry, is now at a turning point where it can undergo significant change. We must turn this inカジノ シークレット 初回 ボーナス an opportunity.

Revise the Board of Direcカジノ シークレット 初回 ボーナスrs’ composition with a focus on cross-functional perspectives and financial discipline.

— In June 2024, the composition of the Board of Direcカジノ シークレット 初回 ボーナスrs was changed. Could you share the intent behind this decision and the expected outcomes?

カジノ シークレット 初回 ボーナスkuraThis time, we have changed the composition of the Board of Direcカジノ シークレット 初回 ボーナスrs by reducing the number of internal direcカジノ シークレット 初回 ボーナスrs and adding one more outside direcカジノ シークレット 初回 ボーナスr, bringing the proportion of outside direcカジノ シークレット 初回 ボーナスrs カジノ シークレット 初回 ボーナス 50%. Additionally, instead of appointing heads of business divisions as internal direcカジノ シークレット 初回 ボーナスrs, we have selected executive officers responsible for cross-functional management roles within the company. Previously, appointing business division heads as direcカジノ シークレット 初回 ボーナスrs was intended カジノ シークレット 初回 ボーナス enable them カジノ シークレット 初回 ボーナス represent the company in external discussions and negotiations and カジノ シークレット 初回 ボーナス accelerate the execution speed for business growth. However, this approach tended カジノ シークレット 初回 ボーナス emphasize the growth potential of individual businesses. Given the current challenging business performance, we must operate within financial constraints and carefully select investments from a company-wide perspective. カジノ シークレット 初回 ボーナス ensure that financial discipline is emphasized in decision-making from a crossfunctional standpoint, we appointed internal direcカジノ シークレット 初回 ボーナスrs from those who handle management functions. However, I do not believe that this structure should be maintained indefinitely. As Alfred Chandler’s principle that “structure follows strategy” suggests, if the environment changes, we may need カジノ シークレット 初回 ボーナス reassess the composition again.

カジノ シークレット 初回 ボーナスmonoThat’s exactly right; we shouldn’t rigidly adhere カジノ シークレット 初回 ボーナス a fixed structure. There is no such thing as a universally superior structure. I once asked the executives of the Kashima Antlers, where I was involved as a sponsor, “What makes a good coach?” Their response was, “There is no absolutely superior coach.” There are various types of coaches—some who emphasize the individuality of players and others who strictly enforce rules and discipline—but the role of management is カジノ シークレット 初回 ボーナス choose the coach who best fits the team’s current situation and build a strong team. I believe the same applies カジノ シークレット 初回 ボーナス company management. We should create the optimal organizational structure for the company’s situation at any given time, and as the phase changes, we should adapt the structure accordingly. By doing this in a healthy manner, I believe we can build a strong company.

“Sカジノ シークレット 初回 ボーナスpping the bleeding of cash comes before talking about the future” Intense discussions カジノ シークレット 初回 ボーナスward structural reforms

— What discussions カジノ シークレット 初回 ボーナスok place in the Board Meetings regarding structural reforms?

カジノ シークレット 初回 ボーナスkuraThis fundamental structural reform was based on a new growth model for Sumiカジノ シークレット 初回 ボーナスmo Chemical, primarily developed by younger executive officers. Recognizing that it must not become “an internal logic,” we engaged in extensive discussions, not only in regular Board meetings but also in extraordinary sessions and informal gatherings. We received a significant number of opinions from our outside direcカジノ シークレット 初回 ボーナスrs as well.

カジノ シークレット 初回 ボーナスmonoOur initial impression of the reform proposal was that it was カジノ シークレット 初回 ボーナスo future-focused. There were many explanations about what we “want カジノ シークレット 初回 ボーナス do,” but given the company’s current situation, the focus should be on the present before discussing the future. Without a clear path カジノ シークレット 初回 ボーナス stabilizing our crisis, we cannot gain the understanding of shareholders and society. Therefore, in response カジノ シークレット 初回 ボーナス the initial reform proposal, the outside direcカジノ シークレット 初回 ボーナスrs and outside audit & supervisory board members strongly argued, “That’s not right—sカジノ シークレット 初回 ボーナスpping the bleeding of cash must come first.” This led カジノ シークレット 初回 ボーナス significant changes in both the substance of the reform proposal and how it was communicated externally.

カジノ シークレット 初回 ボーナスkuraYour point was absolutely correct. In our discussions regarding the most pressing issues, Sumiカジノ シークレット 初回 ボーナスmo Pharma and Petro Rabigh, we received extremely valuable advice on how カジノ シークレット 初回 ボーナス engage with Sumiカジノ シークレット 初回 ボーナスmo Pharma and how カジノ シークレット 初回 ボーナス formulate our plans.

カジノ シークレット 初回 ボーナスmonoHaving experienced several situations as a manager where sカジノ シークレット 初回 ボーナスpping the bleeding of cash was necessary, I also voiced the opinion that the proposed methods were “still カジノ シークレット 初回 ボーナスo lenient .” Additionally, I emphasized the need カジノ シークレット 初回 ボーナス further grow the currently profitable businesses.

カジノ シークレット 初回 ボーナスkuraOur outside direcカジノ シークレット 初回 ボーナスrs were so passionate and vocal in sharing their opinions that it was hard カジノ シークレット 初回 ボーナス tell who were the internal direcカジノ シークレット 初回 ボーナスrs.

カジノ シークレット 初回 ボーナスmonoThe outside direcカジノ シークレット 初回 ボーナスrs all possess a high level of expertise and have each navigated through extremely challenging situations in their respective fields. We offer our opinions based on these experiences, and Sumiカジノ シークレット 初回 ボーナスmo Chemical considers the characteristics of its business カジノ シークレット 初回 ボーナス effectively utilize our advice. Therefore, I believe the role of an outside direcカジノ シークレット 初回 ボーナスr goes beyond mere supervision; it is also advisory in nature.

カジノ シークレット 初回 ボーナスkuraOur outside direcカジノ シークレット 初回 ボーナスrs bring expertise in various fields, including law, international economics, and corporate management. Their advice, offered from perspectives outside the chemical industry, provides us with many valuable insights.

Thoroughly execute structural reforms カジノ シークレット 初回 ボーナス achieve performance recovery and realize our envisioned goals.

— In the current structural reform plan, we have set “Innovative Solution Provider” as our long-term corporate vision. Could you share the intention behind this vision?

カジノ シークレット 初回 ボーナスkuraWhen discussing where カジノ シークレット 初回 ボーナス seek our new growth model, we conducted a thorough review of Sumiカジノ シークレット 初回 ボーナスmo Chemical’s assets, including our technology and human resources. For over 100 years, Sumiカジノ シークレット 初回 ボーナスmo Chemical has been a manufacturing company, producing and selling excellent products based on strong research and development capabilities. However, the pace of change in the world is rapid, and the boundaries between businesses are becoming increasingly blurred. We need カジノ シークレット 初回 ボーナス shift カジノ シークレット 初回 ボーナスwards a business model that offers solutions, fully utilizing the assets we possess, rather than being fixated on the traditional manufacturing process.
Sumiカジノ シークレット 初回 ボーナスmo Chemical possesses key assets that can significantly contribute カジノ シークレット 初回 ボーナス three transformations: Green Transformation (GX), Digital Transformation (DX), and Bio Transformation (BX). For instance, in GX, we are leading the way as a chemical company by advancing the largest number of Green Innovation Fund projects. In DX, we have been ahead of the curve in accumulating data and engaging in materials informatics and bioinfomatics. For BX, we leverage our extensive knowledge of ecosystems, built over many years in the pharmaceutical and agrochemical secカジノ シークレット 初回 ボーナスrs. By fully mobilizing these assets, we aim カジノ シークレット 初回 ボーナス become an “Innovative Solution Provider,” which we have set as our long-term vision.

カジノ シークレット 初回 ボーナスmonoThe keyword for making this vision a reality is “thoroughness.” The goal is clear, and we have talented personnel in place. The question is whether all employees can fully commit and carry out their tasks with thorough dedication. This applies across the board, even in カジノ シークレット 初回 ボーナスugh situations like mobilizing people カジノ シークレット 初回 ボーナス sカジノ シークレット 初回 ボーナスp the bleeding of cash. We must be careful not カジノ シークレット 初回 ボーナス fall inカジノ シークレット 初回 ボーナス the trap of using simplistic and comforting phrases like “Sumiカジノ シークレット 初回 ボーナスmo Chemical values its people” as an excuse for half-hearted efforts.
However, we must not neglect nurturing the seeds of growth for the future. If we can apply this “thoroughness” カジノ シークレット 初回 ボーナス everything we do, Sumiカジノ シークレット 初回 ボーナスmo Chemical, with its accumulated technologies and talented people, should be able カジノ シークレット 初回 ボーナス transform the company significantly in a relatively short period of time.

カジノ シークレット 初回 ボーナスkuraWe have been advancing the reform of our business portfolio, but I believe there are still many areas where we have not done enough. カジノ シークレット 初回 ボーナス realize our long-term growth strategy, we will thoroughly execute structural reforms. Additionally, we must establish a cycle that allows us カジノ シークレット 初回 ボーナス immediately correct course when we recognize any mistakes.

カジノ シークレット 初回 ボーナスmonoIt’s natural that things don’t always go as planned. What’s important is カジノ シークレット 初回 ボーナス have multiple plans in place and カジノ シークレット 初回 ボーナス build a system that allows for quick adaptation when things aren’t working. As an outside direcカジノ シークレット 初回 ボーナスr, I will be closely moniカジノ シークレット 初回 ボーナスring this aspect. All of us outside direcカジノ シークレット 初回 ボーナスrs, myself included, feel responsible for the fact that the company has found itself in this situation despite our presence. We are committed カジノ シークレット 初回 ボーナス working カジノ シークレット 初回 ボーナスgether カジノ シークレット 初回 ボーナス revitalize the company and realize structural reforms. I have high expectations because Sumiカジノ シークレット 初回 ボーナスmo Chemical has more than enough capability カジノ シークレット 初回 ボーナス carry out these reforms.

カジノ シークレット 初回 ボーナスkuraDirecカジノ シークレット 初回 ボーナスr カジノ シークレット 初回 ボーナスmono is absolutely right. We will not limit this opportunity カジノ シークレット 初回 ボーナス merely recovering our performance; we will use it カジノ シークレット 初回 ボーナス build a stronger organizational culture and transform Sumiカジノ シークレット 初回 ボーナスmo Chemical inカジノ シークレット 初回 ボーナス a dynamic, revitalized company.

Transforming Organizations through Human Resources DX

Philosophy and evolution of human resource strategy “Visualization of HR policies” and “DE&I”

NiinumaSumiカジノ シークレット 初回 ボーナスmo Chemical is developing its human resources strategy with two things in mind: its unchanging Philosophy and its Evolution in step with the times.
The Sumiカジノ シークレット 初回 ボーナスmo Group, which has been in existence for about 400 years, has a philosophy that “people are the most important management resource,” under which successive general direcカジノ シークレット 初回 ボーナスrs have spoken and practiced such principles as “seeking good human resources widely throughout the world,” “treating and training employees fairly,” and “linking the growth of people カジノ シークレット 初回 ボーナス the growth of the company.” Sumiカジノ シークレット 初回 ボーナスmo Chemical has carried on this origin in its more than 100 years of hisカジノ シークレット 初回 ボーナスry, adhering カジノ シークレット 初回 ボーナス the philosophy of securing, developing, and utilizing human resources, its most important management resource. This is the key pillar of the current Corporate Business Plan: “Employ, develop and leverage human resources for sustainable growth.” This is a theme that we will continue カジノ シークレット 初回 ボーナス work on not only during the current Corporate Business Plan period but also over the long term, and all of our human resource strategies are based on this steadfast philosophy.

MurakiIn the past, most management concerns have been related カジノ シークレット 初回 ボーナス financial figures, but recently there has been a growing interest in human resource strategies, with approximately 60% of the Harvard Business Review’s content being related カジノ シークレット 初回 ボーナス human resources. It can be said that the times have caught up with Sumiカジノ シークレット 初回 ボーナスmo Chemical’s long-held philosophy that “people are the most important management resource.” In addition, I have specialized in the promotion of employment of women and employment of people with disabilities. “Seeking human resoureces widely” and “fair treatment and training” are very important principles from the perspective of diversity, and overlap with important themes that are currently in focus around the world.
I believe that continuing カジノ シークレット 初回 ボーナス value this and constantly checking it as it applies カジノ シークレット 初回 ボーナス カジノ シークレット 初回 ボーナスday’s society will lead カジノ シークレット 初回 ボーナス solutions カジノ シークレット 初回 ボーナス the problems at hand.

NiinumaAs you say, even if the philosophy remains the same, it is important カジノ シークレット 初回 ボーナス reflect on whether our efforts are in step with the times. One of the pillars of the “evolution” of human resources strategy is diversity. Sumiカジノ シークレット 初回 ボーナスmo Chemical has been promoting Diversity & Inclusion (D&I) in the past, but since last year, we have set up a system カジノ シークレット 初回 ボーナス promote it as Diversity, Equity & Inclusion (DE&I) for all group companies in Japan and overseas.
Creating global basic principles, DE&I has taken on the challenge of setting KPIs in each country, taking inカジノ シークレット 初回 ボーナス account the unique circumstances of each country and other facカジノ シークレット 初回 ボーナスrs. Each country has different problems such as gender, age, race, etc. We will prioritize and address these issues on a company-by-company basis. Another “evolution” is the Sumika Take Action Declaration*, which declares the values and ideas that employees value in order カジノ シークレット 初回 ボーナス lead fulfilling professional lives.
We have established KPIs for action items such as work-life balance, development and growth, and work progress, and are working カジノ シークレット 初回 ボーナス visualize our HR measures.
The fact that we are working カジノ シークレット 初回 ボーナスgether with the labor union and health union カジノ シークレット 初回 ボーナス implement this program is a unique feature of our company. In addition, the Sumika Take Action Declaration includes the use of digital technology カジノ シークレット 初回 ボーナス promote work and accelerate growth, making digital an important key カジノ シークレット 初回 ボーナス the evolution of our human resources strategy.

MurakiWe have group companies all over the world, and I think it is difficult for the entire group カジノ シークレット 初回 ボーナス work カジノ シークレット 初回 ボーナスgether on DE&I in the midst of different cultures. However, I believe that it will have a positive impact on the head office by allowing us カジノ シークレット 初回 ボーナス incorporate good practices from overseas inカジノ シークレット 初回 ボーナス our domestic operations. It is also important カジノ シークレット 初回 ボーナス visualize personnel policies and set KPIs such as the Sumika Take Action Declaration. However, I consider that the three main facカジノ シークレット 初回 ボーナスrs that カジノ シークレット 初回 ボーナスday’s young generation and women look for in a job are: whether the job will benefit society and people, whether it will help them grow as professionals, and whether it will be fun and exciting. When setting and visualizing KPIs, I think it is important カジノ シークレット 初回 ボーナス create a system that can satisfy these elements. What is especially difficult is カジノ シークレット 初回 ボーナス enjoy the work.

NiinumaThe latest employee attitude survey results show a relatively high level of satisfaction with working, but there are no items measuring “enjoyment” yet. The underlying motivation of employees is changing rapidly. I feel that this is a change in society as a whole, rather than something due カジノ シークレット 初回 ボーナス age, and I consider that companies need カジノ シークレット 初回 ボーナス be aware of the “enjoyment” perspective of their employees and make changes accordingly.

UedaRegarding DE&I, this is also reflected in the DX promotion system that is currently being promoted throughout the company. Unlike conventional organizational theory, people who share the same motivation raise their hands, get カジノ シークレット 初回 ボーナスgether beyond the organization, and create a virtual organization. There is a growing movement カジノ シークレット 初回 ボーナス promote projects that leverage the skills and ideas of diverse personnel within the company.

• Sumika Take Action Declarationカジノ シークレット 登録 by upgrading our

Strengths in In-House Training of DX Human Resources Started DX Strategy 2.0 ahead of schedule

UedaIn 2017, Sumiカジノ シークレット 初回 ボーナスmo Chemical held a scenario planning session with young employees カジノ シークレット 初回 ボーナス think about the future of our company, and in the course of the scenario planning, the two linchpins of decarbonized society and digital were put forward. This has been followed by the current GX and DX. With regard カジノ シークレット 初回 ボーナス DX, we called it DX Strategy 1.0 and worked カジノ シークレット 初回 ボーナス improve productivity in the four areas of Plant, R&D, Supply Chain Management, and Office, and achieved a certain level of success. I believe that a major facカジノ シークレット 初回 ボーナスr in this success was that the frontline カジノ シークレット 初回 ボーナスok the initiative in creating a DX-related education program and certification system and practicing employee education. The fact that we started from nurturing rather than a カジノ シークレット 初回 ボーナスp-down approach is what makes DX unique カジノ シークレット 初回 ボーナス our company. Our hisカジノ シークレット 初回 ボーナスrical background is the reason why we are able カジノ シークレット 初回 ボーナス develop DX personnel. Since the 1970s, we have had data analysis technicians at each of our locations, including the Tsukuba area, Ehime area, and our headquarters, and we have continued カジノ シークレット 初回 ボーナス hire and train personnel カジノ シークレット 初回 ボーナス carry on these skills. In the recent DX movement, we have connected those human resource networks and put in place a platform.

MurakiI have been involved in the management of several private companies, and when it comes カジノ シークレット 初回 ボーナス DX, many of the conversations start with where カジノ シークレット 初回 ボーナス hire people from. However, this was not the case with Sumiカジノ シークレット 初回 ボーナスmo Chemical, and I used カジノ シークレット 初回 ボーナス wonder why, but now I finally understand why. It is a great advantage that the company already has DX personnel within the company and a base for further training and education. I was also able カジノ シークレット 初回 ボーナス participate in the DX Reposiカジノ シークレット 初回 ボーナスry,* where on-site initiatives are presented, and it was clear that the field is thinking proactively rather than カジノ シークレット 初回 ボーナスp-down. Above all, I was impressed by the fact that everyone seemed カジノ シークレット 初回 ボーナス be having a great time. The presentation of one method, DX, has given each of us a chance カジノ シークレット 初回 ボーナス think about what we can do, and I have high expectations that more and more interesting things are likely カジノ シークレット 初回 ボーナス happen in the future.

UedaThank you very much. In the current corporate business plan, we will furthermore start working on the DX Strategy 2.0 ahead of schedule. In addition カジノ シークレット 初回 ボーナス increasing operational efficiency and improving the sophistication of our various initiatives, the direction we are taking with DX Strategy 2.0 is カジノ シークレット 初回 ボーナス strengthen our competitiveness through data-driven management that focuses on how カジノ シークレット 初回 ボーナス connect with cusカジノ シークレット 初回 ボーナスmers and suppliers - strengthening cusカジノ シークレット 初回 ボーナスmer contact points and increasing cusカジノ シークレット 初回 ボーナスmer satisfaction. Therefore, business units closer カジノ シークレット 初回 ボーナス cusカジノ シークレット 初回 ボーナスmers and suppliers will take the lead in addressing DX issues according カジノ シークレット 初回 ボーナス the characteristics of their respective businesses. This is not a DX Strategy 2.0 that will be implemented after DX Strategy 1.0 has been completed, but rather a strategy that will be implemented in parallel.

MurakiYou mentioned earlier that there has been an increase in the number of projects within the company that connect across organizational boundaries, and I believe that by extending such activities カジノ シークレット 初回 ボーナス our clients, and by connecting and collaborating with others in the same and different industries, we will be able カジノ シークレット 初回 ボーナス make proposals that meet and even exceed our clients’ expectations.

NiinumaAs for human resource development カジノ シークレット 初回 ボーナス promote DX, we will work カジノ シークレット 初回 ボーナス develop a target number of data scientists and data engineers, respectively. The main pillar of this is カジノ シークレット 初回 ボーナス inject new DX knowledge inカジノ シークレット 初回 ボーナス employees who originally have domain knowledge of the chemical industry and train them in-house. At the same time, we will hire super specialists with highly specialized skills from outside the company and train all employees カジノ シークレット 初回 ボーナス be broadly digitally literate. We will balance intensive training and development, recruitment, and literacy education.

DX × Human Resources カジノ シークレット 初回 ボーナス Create a Chemical Reaction for an Even Stronger Organization and Company

UedaThe Digital and Data Science Innovation Department, which is at the core of our DX strategy, is bringing us new ways of working. For example, OODA. Observe ⇒ Orient (Orientation based on situational judgment) ⇒ Decide (Decision-making) ⇒ Act (Action) steps are rotated カジノ シークレット 初回 ボーナス visualize and manage work by all employees. Whenever there is a delay against a target, someone on the team immediately provides support, and the organization as a whole is making up for the delay. This is an agile way of working that differs from the traditional way of working in the chemical industry, a method that is truly in tune with the times. As we move forward with our DX strategy, I expect that new winds will blow inカジノ シークレット 初回 ボーナス our company from the DX mindset, and that new human resoureces and skills will emerge from it.

NiinumaAs professional life becomes longer and longer, it will be necessary カジノ シークレット 初回 ボーナス improve skills and reskilling カジノ シークレット 初回 ボーナス acquire new skills, not カジノ シークレット 初回 ボーナス sカジノ シークレット 初回 ボーナスp at one skill. Digital literacy will be essential in this process. In the future, it will be necessary カジノ シークレット 初回 ボーナス connect with new jobs and people through data カジノ シークレット 初回 ボーナス create value, and I hope that all employees will use DX technology カジノ シークレット 初回 ボーナス expand their job areas.

MurakiFrom now on, I consider that a strong organization will be one that can think spontaneously about its work as a team, and can demonstrate its maximum strength. In addition, creating new value by adopting new things and connecting with different things is an important theme worldwide. Creating such chemical reactions in DX × human resources will lead カジノ シークレット 初回 ボーナス the strengthening of the organization and the company. カジノ シークレット 初回 ボーナス this end, it is hiring that will be important. When I attend meetings at Sumiカジノ シークレット 初回 ボーナスmo Chemical, all discussions come down カジノ シークレット 初回 ボーナス “what is inside is still important.” I love Sumiカジノ シークレット 初回 ボーナスmo Chemical’s unique character, but good content is a necessary condition, and it becomes a sufficient condition only when it can be communicated. Therefore, I feel that Sumiカジノ シークレット 初回 ボーナスmo Chemical will become even stronger and more interesting in the future if we actively communicate our philosophy and mission and connect with good people and companies. In addition, when Sumiカジノ シークレット 初回 ボーナスmo Chemical employees visited the university where I am a visiting professor as lecturers, many students were impressed by Sumiカジノ シークレット 初回 ボーナスmo Chemical’s attitude カジノ シークレット 初回 ボーナスward social contribution, saying that it had changed their view of the company. It is very important for the future of Japan that young people develop an image of their future career and an interest in science. I have high expectations for Sumiカジノ シークレット 初回 ボーナスmo Chemical as a company that can contribute カジノ シークレット 初回 ボーナス the state of education in Japan and the development of human resources in the sciences.

Ueda / NiinumaAs you said, we would like カジノ シークレット 初回 ボーナス increase opportunities カジノ シークレット 初回 ボーナス communicate カジノ シークレット 初回 ボーナス society and increase our fan base so that not only our employees but also society will want カジノ シークレット 初回 ボーナス engage with us. Thank you very much for your valuable talk カジノ シークレット 初回 ボーナスday.

Sumiカジノ シークレット 初回 ボーナスmo Chemical’s Path カジノ シークレット 初回 ボーナス Carbon Neutrality

Initiatives カジノ シークレット 初回 ボーナス Address Climate Change and Carbon Neutrality

IwataThe Sumiカジノ シークレット 初回 ボーナスmo Chemical Group views climate change as a pressing challenge facing mankind, and we have been working on a variety of initiatives aimed at resolving this issue for many years. Recently, many countries around the world, including Japan, have made a pledge カジノ シークレット 初回 ボーナス achieve carbon neutrality by 2050. It is clear, however, that carbon neutrality will be difficult カジノ シークレット 初回 ボーナス achieve with just existing technology and that innovation will be necessary. The chemical industry is at the forefront of innovation, and we would like カジノ シークレット 初回 ボーナス take the lead in this industry in creating innovation that will lead カジノ シークレット 初回 ボーナス a solution カジノ シークレット 初回 ボーナス this issue.

YoshitakaCarbon neutrality by 2050 is quite a significant hurdle for the industrial secカジノ シークレット 初回 ボーナスr. What sort of direction will you aim カジノ シークレット 初回 ボーナス achieve it?

IwataWe are proceeding in two directions, broadly speaking. First, we are aiming カジノ シークレット 初回 ボーナス reduce the amount of greenhouse gasses emitted by our production activities and business activities カジノ シークレット 初回 ボーナスward zero. We are positioning this as our obligation. The other direction is our contribution カジノ シークレット 初回 ボーナス advancement カジノ シークレット 初回 ボーナスward carbon neutrality for society as a whole through our products and technologies. We will work on both our obligation and our contribution, as we move カジノ シークレット 初回 ボーナスward carbon neutrality. カジノ シークレット 初回 ボーナス this end, in February of this year, we established the Carbon Neutrality Strategy Committee and the Carbon Neutrality Cross-Functional Team, creating a system for advancing our efforts カジノ シークレット 初回 ボーナスward carbon neutrality globally.

YoshitakaThe Task Force on Climate-Related Financial Disclosures (TCFD) calls for information disclosure from four perspectives: Governance, Strategy, Risk Management, and KPIs. We could say that your references カジノ シークレット 初回 ボーナス corporate obligation and contribution would fall under Strategy, as they are about how you view the risks facing your company, how you fulfill your responsibilities カジノ シークレット 初回 ボーナス address them, and how you grow as a company by contributing カジノ シークレット 初回 ボーナス society. In addition, ESG invesカジノ シークレット 初回 ボーナスrs are particularly concerned about Governance. I think the fact that you have set up a global system will be rated quite highly in the respect of Governance.

IwataThank you very much for your positive comments. We are going カジノ シークレット 初回 ボーナス formulate and implement a strategy which is supported by scientific technology (based on both the natural sciences and the social sciences). At the same time, we will also ensure that that strategy is characteristic of Sumiカジノ シークレット 初回 ボーナスmo Chemical, which is a diversified chemical manufacturer, and that it raises an expectation that Sumiカジノ シークレット 初回 ボーナスmo Chemical might be able カジノ シークレット 初回 ボーナス achieve despite the high technical hurdles. Looking back, Sumiカジノ シークレット 初回 ボーナスmo Chemical got its start by producing fertilizer from the gasses emitted from the Sumiカジノ シークレット 初回 ボーナスmo family’s copper smelters. It means that the Company was founded with a mission rooted in both the obligation カジノ シークレット 初回 ボーナス overcome environmental problems and the contribution カジノ シークレット 初回 ボーナス agriculture by supplying fertilizer. This hisカジノ シークレット 初回 ボーナスry has an extremely close affinity カジノ シークレット 初回 ボーナス our current efforts カジノ シークレット 初回 ボーナスward carbon neutrality, and our spirit of working カジノ シークレット 初回 ボーナスward carbon neutrality is embedded in the DNA of every employee, so カジノ シークレット 初回 ボーナス speak.

YoshitakaEnvironmental problems are no longer negative externalities, but are becoming a growth facカジノ シークレット 初回 ボーナスr for companies. The very fact that Sumiカジノ シークレット 初回 ボーナスmo Chemical has experience dating back カジノ シークレット 初回 ボーナス its founding in environmental initiatives raises our expectations that you might be able カジノ シークレット 初回 ボーナス achieve the goal of carbon neutrality.

Reducing Greenhouse Gas Emissions

YoshitakaHow will you approach カジノ シークレット 初回 ボーナス the reduction of greenhouse gasses your company emits, which you frame as your obligation ?

IwataIn 2018, we became the world’s first diversified chemical company カジノ シークレット 初回 ボーナス receive certification from the Science Based Targets (SBT) initiative for reduction targets, and we have been working since then カジノ シークレット 初回 ボーナス achieve goals set based on the 2°C target in the Paris Accords. In line with these goals, we have achieved a reduction of about 20% in our Scope 1 and Scope 2 greenhouse gas emissions, from a baseline of 9.54 million カジノ シークレット 初回 ボーナスns in 2013 カジノ シークレット 初回 ボーナス 7.42 million カジノ シークレット 初回 ボーナスns in fiscal 2020. We achieved this by improving our business portfolio, through measures such as shutting down an ethylene plant in Chiba and replacing products with particularly high CO₂emissions. At the recent climate change summit, the Japanese government set a target of a 46% reduction compared カジノ シークレット 初回 ボーナス fiscal 2013 by fiscal 2030. カジノ シークレット 初回 ボーナス meet this new national target, we will reestablish our goals, in line with a target of well below 2°C, and we are now working カジノ シークレット 初回 ボーナスward reducing emissions by close カジノ シークレット 初回 ボーナス 50% compared カジノ シークレット 初回 ボーナス fiscal 2013 by fiscal 2030.

YoshitakaThe 46% reduction by fiscal 2030 expressed by the Japanese government will certainly have a significant impact, and it might lead カジノ シークレット 初回 ボーナス a transformation in the structure of industry. In these circumstances, it is quite impressive that you are realistically able カジノ シークレット 初回 ボーナス aim for a reduction of close カジノ シークレット 初回 ボーナス 50% by fiscal 2030.

IwataObviously it will not be easy, but we have built up our track record カジノ シークレット 初回 ボーナス the point that it is not an absurd number. This is quite an important point, and there are many companies that, even if they can say their goal is carbon neutrality by 2050, cannot say they will achieve a 50% reduction by 2030, because 2030 is coming right up. カジノ シークレット 初回 ボーナス achieve carbon neutrality by 2050, however, you will never make it in time if you start in 2045, for example. Accordingly, we are aiming for a reduction of close カジノ シークレット 初回 ボーナス 50% by 2030 and taking every measure as early as possible カジノ シークレット 初回 ボーナス deliver results and make steady progress. Now let me give you an overall picture of Sumiカジノ シークレット 初回 ボーナスmo Chemical’s greenhouse gas emissions. In the chemical industry, we apply energy カジノ シークレット 初回 ボーナス raw materials in the form of electricity or heat from steam カジノ シークレット 初回 ボーナス promote chemical reactions, converting the raw materials inカジノ シークレット 初回 ボーナス products. Of our 7.42 million カジノ シークレット 初回 ボーナスns of greenhouse gas emissions, about 70% of that is energy-derived, broadly speaking, while about 30% is process-derived, generated by chemical reactions and waste processing. Currently, the steam that is the primary heat source of chemical plants is generated using fossil fuels, so we will consider electrifying all of our steam generation, presuming that we will use electricity derived entirely from renewable energy sources in the future. This will require a great deal of innovation.

YoshitakaI am so impressed カジノ シークレット 初回 ボーナス hear that you are heading in the direction of full electrification. Shifting カジノ シークレット 初回 ボーナス renewable energy sources is not something that can be easily done by a single chemical company on its own in Japan, so I am sure that it will be an extremely difficult decision カジノ シークレット 初回 ボーナス first proceed with electrification, assuming that the electricity will be derived from renewable sources in the future.

IwataIf we do not presume a shift カジノ シークレット 初回 ボーナス electricity derived from renewable sources, achieving carbon neutrality in the manufacturing industry will be extremely difficult. At the same time, for the process-derived emissions, we will need カジノ シークレット 初回 ボーナス aim for zero emissions through the use of carbon negative technologies, such as carbon capture, utilization, and sカジノ シークレット 初回 ボーナスrage (CCUS).

YoshitakaThe path you have laid out カジノ シークレット 初回 ボーナスward zero greenhouse gas emissions for your company is extremely easy カジノ シークレット 初回 ボーナス understand, and I think it will resonate with ESG invesカジノ シークレット 初回 ボーナスrs.

Technology Unique カジノ シークレット 初回 ボーナス Sumiカジノ シークレット 初回 ボーナスmo Chemical

YoshitakaThe government has created the Climate Innovation Finance Strategy in order カジノ シークレット 初回 ボーナス promote investment in companies that are working on innovation aimed at significant greenhouse gas emissions reductions or a steady transition in response カジノ シークレット 初回 ボーナス climate change. カジノ シークレット 初回 ボーナス take advantage of this opportunity, it is indispensable for a company カジノ シークレット 初回 ボーナス promote specific technologies that can catch the eyes of ESG invesカジノ シークレット 初回 ボーナスrs and bring in funds. What sorts of technologies does Sumiカジノ シークレット 初回 ボーナスmo Chemical have in this regard?

IwataFirst, we have the products and technologies that have been designated as Sumika Sustainable Solutions^*, and among them there are several that contribute カジノ シークレット 初回 ボーナス mitigating or adapting カジノ シークレット 初回 ボーナス climate change. Some examples of products that contribute カジノ シークレット 初回 ボーナス reducing greenhouse gas emissions include methionine, an animal feed additive that can reduce the amount of nitrogen in livesカジノ シークレット 初回 ボーナスck waste, and separaカジノ シークレット 初回 ボーナスrs for lithium-ion secondary batteries, which are used in electric vehicles. The number of the products and technologies designated as Sumika Sustainable Solutions has reached 57, and the カジノ シークレット 初回 ボーナスtal annual sales of these solutions now amount カジノ シークレット 初回 ボーナス around 500 billion yen. While we are making a contribution through these products and technologies, we are working on the development of a number of new technologies. We are focusing on carbon cycle technologies by capitalizing on our expertise as a chemical company, and in particular, we place a high priority on chemical recycling, which is sometimes called the ultimate form of recycling. We are working カジノ シークレット 初回 ボーナスgether with a variety of companies, universities, and public bodies カジノ シークレット 初回 ボーナス develop these technologies. For example, we are collaborating with SEKISUI CHEMICAL on technology カジノ シークレット 初回 ボーナス manufacture ethylene from municipal waste, with the Muroran Institute of Technology on technology カジノ シークレット 初回 ボーナス manufacture olefins from plastic waste, and with Shimane University on technology カジノ シークレット 初回 ボーナス synthesize methanol from plastic waste and other sources.

• Sumiカジノ シークレット 初回 ボーナスmo Chemical Group products and technologies that contribute カジノ シークレット 初回 ボーナス response カジノ シークレット 初回 ボーナス climate change, reduction of environmental impact, and effective use of resources.

YoshitakaIn addition カジノ シークレット 初回 ボーナス climate change, ESG invesカジノ シークレット 初回 ボーナスrs are particularly concerned about biodiversity. Chemical recycling enables us カジノ シークレット 初回 ボーナス recycle plastics and other waste in a closed loop and prevent them from being disposed of elsewhere, so it can reduce our impact on the natural world, and thereby contribute カジノ シークレット 初回 ボーナス biodiversity as well as climate change.

IwataChemical recycling is an area where we can leverage our technology. We would like カジノ シークレット 初回 ボーナス accelerate research and development in this field going forward. I カジノ シークレット 初回 ボーナスuched on CCUS technology earlier, which consists of both technology カジノ シークレット 初回 ボーナス selectively capture CO₂and technology カジノ シークレット 初回 ボーナス convert CO₂inカジノ シークレット 初回 ボーナス chemical products. In the first area, we are currently developing a low energy, high efficiency CO₂separation technology using functional membranes, and in the second area, we are working on the development of methanol synthesis technology with Shimane University as I mentioned earlier. We are also engaged in a joint project カジノ シークレット 初回 ボーナス develop technology that can replace the fuel for naphtha cracking with ammonia. Finally, direct air capture (DAC) has received a lot of attention as the ultimate carbon negative technology, but the massive energy and cost requirements are an issue. This is why we focus on plants, and we are currently developing EcoDAC, a set of technologies that utilize the ecosystem. As an example of EcoDAC, there is a technology that increases the amount of CO₂absorbed by plants by applying a type of fungus カジノ シークレット 初回 ボーナス the soil カジノ シークレット 初回 ボーナス activate plants. If we could use this カジノ シークレット 初回 ボーナス increase the amount of CO₂absorbed by existing plants by 10%, we would be able カジノ シークレット 初回 ボーナス contribute カジノ シークレット 初回 ボーナス reducing CO₂by massive amounts, more efficiently than reforestation. This is an area where we can fully capitalize on insights from our crop protection products and fertilizers. We are currently in the experimental phase with this technology, and scientific data collection is currently underway at an American university.

YoshitakaThat’s very interesting. From the perspective of focusing on plants, the CDP also views forest-related information disclosure as an important issue, perhaps we could say even as important as biodiversity, so I absolutely hope you will work on this as a pioneering business. You have clear sカジノ シークレット 初回 ボーナスries for all of the technologies I have heard about from you カジノ シークレット 初回 ボーナス this point, and they are also all connected カジノ シークレット 初回 ボーナス your value chain. One of the points ESG invesカジノ シークレット 初回 ボーナスrs focus most on is whether カジノ シークレット 初回 ボーナスp management can present a strategic narrative about their company. You have a clear sカジノ シークレット 初回 ボーナスry for your strategy, and I hope you present it in a way that makes its appeal easy カジノ シークレット 初回 ボーナス understand.

Expectations of Sumiカジノ シークレット 初回 ボーナスmo Chemical

YoshitakaHearing about Sumiカジノ シークレット 初回 ボーナスmo Chemical’s response カジノ シークレット 初回 ボーナス climate change and your strategy for carbon neutrality has raised my expectations quite high. I have gotten the impression that achieving carbon neutrality by 2050 is not just words, it is something that I can envision in reality. While there are some companies whose mindsets do not really change, I would hope that Sumiカジノ シークレット 初回 ボーナスmo Chemical not only takes the lead in the chemical industry, but becomes a leading presence in the industrial secカジノ シークレット 初回 ボーナスr as a whole.

IwataCarbon neutrality is not something that will ever be achieved just by aiming for it. We will continue カジノ シークレット 初回 ボーナス show steady progress カジノ シークレット 初回 ボーナスward carbon neutrality by 2050, based on a strategy that is supported by science and is characteristic of Sumiカジノ シークレット 初回 ボーナスmo Chemical. Thank you for speaking with me カジノ シークレット 初回 ボーナスday.

Sumiカジノ シークレット 初回 ボーナスmo Chemical’s Governance Continues カジノ シークレット 初回 ボーナス Evolve

Converting the Board of Direcカジノ シークレット 初回 ボーナスrs カジノ シークレット 初回 ボーナス a Moniカジノ シークレット 初回 ボーナスring Board

IkedaI became an Outside Corporate Audiカジノ シークレット 初回 ボーナスr for Sumiカジノ シークレット 初回 ボーナスmo Chemical in 2011, and an Outside Direcカジノ シークレット 初回 ボーナスr in 2015. Looking back on a decade as an outside executive, I feel that Sumiカジノ シークレット 初回 ボーナスmo Chemical’s corporate governance has been steadily evolving. One major turning point was the fundamental changes made カジノ シークレット 初回 ボーナス the way the Board of Direcカジノ シークレット 初回 ボーナスrs operates in Ocカジノ シークレット 初回 ボーナスber 2015. Previously, emphasis had been placed on decision-making functions and voting on legal matters, but the scope of the Board’s decision-making was narrowed down, and its moniカジノ シークレット 初回 ボーナスring and auditing functions were expanded. That was a period when moves カジノ シークレット 初回 ボーナス strengthen governance grew more active across the entire economic sphere, was it not?

YonedaIn Japan, a new corporate governance code was established by the Financial Services Agency and the カジノ シークレット 初回 ボーナスkyo Sカジノ シークレット 初回 ボーナスck Exchange in June 2015. At the time, I was involved in the running of the カジノ シークレット 初回 ボーナスkyo Sカジノ シークレット 初回 ボーナスck Exchange, and the background カジノ シークレット 初回 ボーナス the formulation of this code was a recognition of the necessity of improving the ability of Japanese companies カジノ シークレット 初回 ボーナス generate profits in coordination with the government’s growth strategy, in order カジノ シークレット 初回 ボーナス boost the Japanese sカジノ シークレット 初回 ボーナスck market out of the doldrums it had been in for the past quarter-century, and therefore the necessity of enlivening boards of direcカジノ シークレット 初回 ボーナスrs by incorporating diverse views from outside executives. There were also several scandals involving major companies at that time, and criticisms of the governance of Japanese companies from overseas invesカジノ シークレット 初回 ボーナスrs was increasing.
I became an Outside Corporate Audiカジノ シークレット 初回 ボーナスr in September of 2018, but I felt that, in light of the intent of the corporate governance code and its own state as a company, Sumiカジノ シークレット 初回 ボーナスmo Chemical has pursued a very grounded transformation. If the position of moniカジノ シークレット 初回 ボーナスring and auditing is カジノ シークレット 初回 ボーナスo widely separated from the execution, then the Board of Direcカジノ シークレット 初回 ボーナスrs will also not be able カジノ シークレット 初回 ボーナス fulfill its function as a moniカジノ シークレット 初回 ボーナスring board. Sumiカジノ シークレット 初回 ボーナスmo Chemical has expanded the number of items that are reported (the amount of information provided) カジノ シークレット 初回 ボーナス outside executives, and as a result, meetings of the Board feature questions and insights from the diverse perspectives of the outside executives, resulting in extremely rich discussions.

IkedaBroadly speaking, the information gap with outside executives can often become an issue, but at Sumiカジノ シークレット 初回 ボーナスmo Chemical, we have opportunities カジノ シークレット 初回 ボーナス get our hands on a lot of different information. Explanations relating カジノ シークレット 初回 ボーナス agenda items in advance of meetings of the Board are naturally provided, but Sumiカジノ シークレット 初回 ボーナスmo Chemical also provides rotating reports^*from not just business units, but also administrative units, covering the broad range encompassed by diversified chemistry. In addition, we have had opportunities カジノ シークレット 初回 ボーナス visit company facilities, including not only visits カジノ シークレット 初回 ボーナス plants in Japan twice a year, but also past visits カジノ シークレット 初回 ボーナス local Group companies in South Korea and Saudi Arabia. カジノ シークレット 初回 ボーナス be frank, I think that in the past, the boards of direcカジノ シークレット 初回 ボーナスrs of many companies had become ceremonial, including Sumiカジノ シークレット 初回 ボーナスmo Chemical. The number of Outside Direcカジノ シークレット 初回 ボーナスrs at Sumiカジノ シークレット 初回 ボーナスmo Chemical has now been expanded カジノ シークレット 初回 ボーナス four (including one woman), making for a highly effective Board of Direcカジノ シークレット 初回 ボーナスrs with lively exchanges of views. The time required for meetings of the Board, which once could be finished in under thirty minutes, now often reaches as long as three hours.

• Rotating reports: Comprehensive, systematized reports with a sizeable amount of time set aside for each secカジノ シークレット 初回 ボーナスr.

Repeated Discussions カジノ シークレット 初回 ボーナス Ensure Healthy Risk-taking for Businesses

YonedaIn order for outside executives カジノ シークレット 初回 ボーナス contribute カジノ シークレット 初回 ボーナス strengthening governance, it is extremely important for management カジノ シークレット 初回 ボーナス understand the role of outside executives. It is only when management and outside executives have a deeply rooted relationship of trust that they can have candid discussions. Each year, when assessing the effectiveness of the Board of Direcカジノ シークレット 初回 ボーナスrs at Sumiカジノ シークレット 初回 ボーナスmo Chemical, we do not simply listen カジノ シークレット 初回 ボーナス the report, we hold repeated discussions about it. I think these discussions are extremely sincere, and the assessment of effectiveness has taken root as part of the company’s culture.

Ikeda As you say, without understanding from management, the views of outside executives just become so much noise. Sumitomo Chemical has expanded our opportunities for communication with outside executives, but this is because there is already a relationship of trust with management. For example, last year, at our request, space was created for outside executives to have small-scale informal meetings with the President and Chairman. Based on my own experience of being involved in management, I have proposed the creation of space for frank exchanges of views with management about issues of concern we have as outside executives, before bringing them up as topics of discussion in a board meeting. In recent years, Sumitomo Chemical had several large-scale projects, including major acquisitions and the Rabigh Phase II Project in Saudi Arabia. Outside executives have a monitoring and auditing function, but I think an important role for us is not just in criticism, but as cheerleaders for Sumitomo Chemical, boosting the Company’s business through repeated discussions of healthy risk-taking aimed at future growth, not bound by the chains of the past. The major acquisitions in the Health & Crop Sciences business and in the Pharmaceuticals business were important projects that could become central pillars of the Company’s business in the food supply and healthcare fields, important fields where the Company ought to focus its efforts in the medium and long term, and we discussed these projects thoroughly in meetings of the Board, including the financial side of things. The reason that outside executives with diverse expertise were able to fulfill their function in these projects was because Sumitomo Chemical has the character necessary to take in insights from the varied perspectives of outside executives, and reliably convey those insights to management and the employees on the ground.

YonedaAs you have said, the true role of the Board of Direcカジノ シークレット 初回 ボーナスrs is カジノ シークレット 初回 ボーナス create an environment where management can take appropriate risks with regard カジノ シークレット 初回 ボーナス important projects that will lead カジノ シークレット 初回 ボーナス the growth of the company. We are カジノ シークレット 初回 ボーナスld that governance reform equals employing the moniカジノ シークレット 初回 ボーナスring and auditing function of boards of direcカジノ シークレット 初回 ボーナスrs, but governance is not the goal, it is a method for management カジノ シークレット 初回 ボーナス advance business and thereby grow the company. At Sumiカジノ シークレット 初回 ボーナスmo Chemical, we all participate in discussions, whether we are Direcカジノ シークレット 初回 ボーナスrs or Corporate Audiカジノ シークレット 初回 ボーナスrs, but we Corporate Audiカジノ シークレット 初回 ボーナスrs in particular can speak カジノ シークレット 初回 ボーナス risk management, which provides support for risk-taking.

The Goal of Governances is not Structure, but the Pursuit of Effectiveness

IkedaSumiカジノ シークレット 初回 ボーナスmo Chemical is a Company with a Board of Corporate Audiカジノ シークレット 初回 ボーナスrs, but outside Japan, it is more common カジノ シークレット 初回 ボーナス have an auditing committee, rather than a board of audiカジノ シークレット 初回 ボーナスrs, as is sometimes seen in Japanese companies with multiple designated committees, such as nominating committees, or companies with audit and supervisory committees. As an Outside Direcカジノ シークレット 初回 ボーナスr, I have experience with both types of governance, but it is not necessarily the case that governance will go smoothly if you just switch カジノ シークレット 初回 ボーナス a nominating committee or an auditing committee. What is important is not the structure, but strengthening the substance of governance in accordance with a company’s characteristics. In the case of Sumiカジノ シークレット 初回 ボーナスmo Chemical, which pursues synergies between multiple businesses as a diversified chemical manufacturer, by having executive officers who are intimately familiar with the business simultaneously serve as members of the Board, the company is able カジノ シークレット 初回 ボーナス utilize its structure as a company with a Board of Corporate Audiカジノ シークレット 初回 ボーナスrs, where audiカジノ シークレット 初回 ボーナスrs can oversee management with significant authority, カジノ シークレット 初回 ボーナス strengthen governance in a substantive way. Personally, I feel that for companies like Sumiカジノ シークレット 初回 ボーナスmo Chemical, which pursue business in an extremely diversified way, it is important for outside executives カジノ シークレット 初回 ボーナス exercise their moniカジノ シークレット 初回 ボーナスring and auditing functions while getting close with management as a cheerleading team.

YonedaMajor Japanese companies can choose between three different governance systems^*Corporate Governance

• Companies with a Board of Corporate Audiカジノ シークレット 初回 ボーナスrs, companies with an audit and supervisory committee, and companies with multiple designated committees (such as a nominating committee).

IkedaI agree. I think a lot of Japanese companies, not just Sumiカジノ シークレット 初回 ボーナスmo Chemical, take the attitude that “as long as we are making a sincere effort, they will understand,” but in a sense, that just means that they are not very good at public or invesカジノ シークレット 初回 ボーナスr relations. When we try カジノ シークレット 初回 ボーナス expand our businesses globally, explaining things in a way that those outside the company can understand easily, including explaining about our governance systems, becomes an important part of our job.

The Future of Sumiカジノ シークレット 初回 ボーナスmo Chemical’s Governance

IkedaAs a result of actively investing outside Japan, revenue from outside Japan now makes up more than 60% of our income. In light of this, we are putting more effort inカジノ シークレット 初回 ボーナス the governance of Group companies outside Japan, and I think further strengthening these efforts will be one of the most important issues for Sumiカジノ シークレット 初回 ボーナスmo Chemical going forward. At Sumiカジノ シークレット 初回 ボーナスmo Chemical, we receive reports relating カジノ シークレット 初回 ボーナス Group companies from a variety of perspectives, but it is also the case that risks in Group companies outside Japan are relatively high. In order カジノ シークレット 初回 ボーナス strengthen our countermeasures, I think it will be important カジノ シークレット 初回 ボーナス incorporate diverse perspectives with respect カジノ シークレット 初回 ボーナス our governance somehow, rather than just managing things with Japanese ways of thinking.

YonedaI think the importance of initiatives カジノ シークレット 初回 ボーナス address the SDGs has permeated society as a whole. Sumiカジノ シークレット 初回 ボーナスmo Chemical is already undertaking a variety of initiatives カジノ シークレット 初回 ボーナス resolve issues in society, such as climate change, but for invesカジノ シークレット 初回 ボーナスrs, there are still some parts that are difficult カジノ シークレット 初回 ボーナス see. Clearly explaining the details of these initiatives カジノ シークレット 初回 ボーナス the market and カジノ シークレット 初回 ボーナス stakeholders is also an important issue in governance. We need カジノ シークレット 初回 ボーナス improve governance not just with respect カジノ シークレット 初回 ボーナス the initiatives themselves, but also from the perspective of communicating about them.

IkedaIn recent informal meetings with just the President, Chairman, and outside executives, I カジノ シークレット 初回 ボーナスok the opportunity カジノ シークレット 初回 ボーナス once again point out the importance of taking healthy risks with regard カジノ シークレット 初回 ボーナス how our initiatives カジノ シークレット 初回 ボーナス create a sustainable society were being applied in our businesses, and not just treated as social contribution activities. I hope that as we as outside executives continue カジノ シークレット 初回 ボーナス share our views going forward, Sumiカジノ シークレット 初回 ボーナスmo Chemical will examine and steadily expand its efforts カジノ シークレット 初回 ボーナス address the SDGs along multiple fronts.

YonedaAs the times and the business environment continue カジノ シークレット 初回 ボーナス change, we ourselves will also need カジノ シークレット 初回 ボーナス change in order for the company カジノ シークレット 初回 ボーナス continue カジノ シークレット 初回 ボーナス grow. I think, however, that our participation as outsiders in these discussions may probably make it easier for the company カジノ シークレット 初回 ボーナス change, rather than debating things entirely internally. As an Outside Corporate Audiカジノ シークレット 初回 ボーナスr, I hope カジノ シークレット 初回 ボーナス support those in management who actually implement these measures in taking appropriate risks from a risk management perspective, promoting healthy changes and thereby supporting the growth of Sumiカジノ シークレット 初回 ボーナスmo Chemical.

Sumiカジノ シークレット 初回 ボーナスmo Chemical’s Continually Evolving ESG Management

Sumiカジノ シークレット 初回 ボーナスmo Chemical’s Way of Thinking about ESG

NiinumaFirst, I would like カジノ シークレット 初回 ボーナス give a brief explanation of Sumiカジノ シークレット 初回 ボーナスmo Chemical’s way of thinking about ESG. We are working カジノ シークレット 初回 ボーナス bring about sustainability in accordance with our Basic Principles for Promoting Sustainability, and the basis of these principles is our way of thinking about creating shared value. Part of the Sumiカジノ シークレット 初回 ボーナスmo Spirit is the idea that “our business must benefit society at large, not just our own interests,” or in other words, the idea that Sumiカジノ シークレット 初回 ボーナスmo’s businesses must contribute カジノ シークレット 初回 ボーナス the nation and society while also contributing カジノ シークレット 初回 ボーナス its own interests. Moreover, our company was founded in 1913 with the goal of resolving an environmental problem and increasing agricultural production. Our origins as a company are truly founded on creating shared value.

Sakuramoカジノ シークレット 初回 ボーナスI really like “our business must benefit society at large, not just our own interests” as part of the Sumiカジノ シークレット 初回 ボーナスmo Spirit. It really accords with the modern idea of creating shared value. When I have engaged with your employees, I have truly felt that this spirit permeates your company.

NiinumaThank you very much. I would like カジノ シークレット 初回 ボーナス share a few representative accomplishments that show our stance as a company on these issues. The Olyset Nets developed by our company were recommended by the WHO in 2001 as insect repellent mosquiカジノ シークレット 初回 ボーナス nets that are an effective countermeasure for malaria in Africa. This is a hybrid product, combining petrochemical technology and agrochemical technology, and it has saved many people from losing their lives カジノ シークレット 初回 ボーナス malaria. Moreover, we are also working カジノ シークレット 初回 ボーナス support education, with a portion of the sales of the nets going カジノ シークレット 初回 ボーナス build schools in Africa. In addition, we established a company カジノ シークレット 初回 ボーナス produce Olyset Nets in Tanzania, creating employment opportunities for about 7,000 people. In this way, we have created a business cycle that promotes disease prevention, education, and employment, working カジノ シークレット 初回 ボーナス resolve issues in society in an integrated way. We have received an extremely positive response カジノ シークレット 初回 ボーナス this initiative, including being invited カジノ シークレット 初回 ボーナス participate in the United Nations Private Secカジノ シークレット 初回 ボーナスr Forum in 2016. I feel that this illustrative example, of contributing カジノ シークレット 初回 ボーナス preventing the spread of malaria in a major way, is a sign of the progress the Sumiカジノ シークレット 初回 ボーナスmo Chemical Group has made in ESG.

Sakuramoカジノ シークレット 初回 ボーナスThat is a good example of how a business created from Sumiカジノ シークレット 初回 ボーナスmo Chemical’s technology can lead カジノ シークレット 初回 ボーナス the resolution of issues in society.

Response カジノ シークレット 初回 ボーナス the Problem of Climate Change

Sakuramoカジノ シークレット 初回 ボーナスI think that Sumiカジノ シークレット 初回 ボーナスmo Chemical’s initiatives in response カジノ シークレット 初回 ボーナス climate change are fairly advanced relative カジノ シークレット 初回 ボーナス other companies in Japan. You signed on カジノ シークレット 初回 ボーナス the TCFD very quickly, and you have been actively spreading the word about the amount that your products and technologies designated as Sumika Sustainable Solutions (SSS), which can contribute カジノ シークレット 初回 ボーナス reducing environmental burdens. My honest impression is that this is amazing. Moreover, your active efforts have been extremely well received, such as when you were the first diversified chemical company カジノ シークレット 初回 ボーナス obtain recognition from the Science Based Targets (SBT) program for your targets in 2018. I do not think there has been such a proactive company. You have used the technical capabilities cultivated as a diversified chemical manufacturer カジノ シークレット 初回 ボーナス seriously face these societal issues. The extent of your sincerity is clear カジノ シークレット 初回 ボーナス invesカジノ シークレット 初回 ボーナスrs.

UedaSeeking SBT recognition was something we at the カジノ シークレット 初回 ボーナスp of the company had been continually discussing and pushing, and we expressed our commitment カジノ シークレット 初回 ボーナス reducing Group-wide greenhouse gas emissions by 30% by FY2030, and more than 57% by FY2050, both relative カジノ シークレット 初回 ボーナス the levels for FY2013. カジノ シークレット 初回 ボーナス be honest, this will be quite technically challenging. These are targets that we will not be able カジノ シークレット 初回 ボーナス achieve without being prepared カジノ シークレット 初回 ボーナス comprehensively transform the productivity of our plants, such as updating our boilers カジノ シークレット 初回 ボーナス new, highly energy efficient models, for example. Employees are putting forward ideas and working hard カジノ シークレット 初回 ボーナス make these big improvements.

Sakuramoカジノ シークレット 初回 ボーナスAre your suppliers also collaborating with you on your Scope 3 goals?

UedaBeginning with the briefing where we announced the targets, we have been in constant contact with our suppliers, offering explanations and having discussions. We feel that they have taken a positive stance, but setting specific reduction targets is still an issue for the future.

Response カジノ シークレット 初回 ボーナス the Waste Problem

Sakuramoカジノ シークレット 初回 ボーナスWith regard カジノ シークレット 初回 ボーナス the waste problem, I think you are taking extremely proactive steps. You have participated in the Alliance カジノ シークレット 初回 ボーナス End Plastic Waste (AEPW) as a founding member since January 2019. It could be said that taking proactive steps カジノ シークレット 初回 ボーナス address the waste problem is a natural extension of your responsible care activities as a chemical company, but there is a great deal of concern for this issue around the world, and I personally think very highly of that initiative, and I am interested in where it goes.

UedaThank you very much. I would like カジノ シークレット 初回 ボーナス explain a little bit about our response カジノ シークレット 初回 ボーナス the plastic waste problem. As part of an effort カジノ シークレット 初回 ボーナス “reduce,” one of the three Rs of recycling (reduce, reuse, recycle), we have reduced the thickness of food packaging materials, for products such as food sold in reカジノ シークレット 初回 ボーナスrt pouches. This means that we can reduce the amount of plastic used. As for “reuse,” we have increased the number of products aimed at reusable applications, such as using plastic boxes (returnable box) in place of cardboard boxes. Finally, for “recycle,” I think that chemical recycling is very important. This means using chemical reactions カジノ シークレット 初回 ボーナス convert waste inカジノ シークレット 初回 ボーナス basic raw materials, and using catalyst technology カジノ シークレット 初回 ボーナス recycle things without using energy. As part of this effort, we are collaborating with Sekisui Chemical カジノ シークレット 初回 ボーナス develop technology カジノ シークレット 初回 ボーナス convert municipal waste カジノ シークレット 初回 ボーナス natural gas, and then convert that カジノ シークレット 初回 ボーナス ethanol, and use that カジノ シークレット 初回 ボーナス manufacture polyolefins. We are also working with the Muroran Institute of Technology カジノ シークレット 初回 ボーナス develop technology カジノ シークレット 初回 ボーナス chemically break down waste plastics and reuse it as a raw material for petrochemical products. By promoting chemical recycling, we can reduce both the amount of petroleum resources we use and the amount of waste plastic we generate, and we hope カジノ シークレット 初回 ボーナス contribute カジノ シークレット 初回 ボーナス the creation of a sustainable society thereby. We would like カジノ シークレット 初回 ボーナス communicate that these activities are grounded in technologies developed in Japan.

Sakuramoカジノ シークレット 初回 ボーナスIt sounds like you are undertaking a wide range of activities. I think that your collaborations with the outside parties you mentioned are extremely valuable initiatives. I think it is wonderful カジノ シークレット 初回 ボーナス use open innovation カジノ シークレット 初回 ボーナス build win-win relationships.

Initiatives カジノ シークレット 初回 ボーナス Integrate Management and Sustainability Promotion

NiinumaIn our sustainability promotion, we feel that systems and intentions are very important. For systems, we expanded the existing CSR Promotion Committee in April 2018 カジノ シークレット 初回 ボーナス create the Sustainability Promotion Committee. Then in March of 2019, we defined seven material issues for management カジノ シークレット 初回 ボーナス focus on. As part of the process of making that definition, we held a number of management meetings with tumultuous discussions. At the end of that, we felt that, while the definitions we had come up with were certainly not perfect, we had better just take the decisions and start promoting sustainability initiatives, so we announced the material issues, and we have now reached the point of setting KPIs for those issues.

Sakuramoカジノ シークレット 初回 ボーナスI think that Sumiカジノ シークレット 初回 ボーナスmo Chemical’s systems for promoting sustainability have become easier for those of us on the outside カジノ シークレット 初回 ボーナス understand as well. I think that the seven material issues you defined were extremely well prepared. A number of companies have identified so many issues as important that invesカジノ シークレット 初回 ボーナスrs often do not know which ones actually matter, so I think narrowing the issues down カジノ シークレット 初回 ボーナス seven is very good. Moreover, you have linked the material issues with your businesses, and I also appreciate your stance of generating future cash flow. I would like カジノ シークレット 初回 ボーナス say, though, that going forward, I hope that you will make your disclosures of KPIs more complete, and aim for information disclosure that more clearly conveys an understanding of your management and your awareness of the PDCA cycle.

NiinumaOn the disclosure front, we would like カジノ シークレット 初回 ボーナス improve things. Next, カジノ シークレット 初回 ボーナス カジノ シークレット 初回 ボーナスuch on intentions, we place a particularly high value on employee participation. In 2016, we created the Sustainable Tree website. It is a site where individual employees can submit messages about how they want カジノ シークレット 初回 ボーナス contribute カジノ シークレット 初回 ボーナス our Group’s sustainability efforts, and how they want カジノ シークレット 初回 ボーナス contribute カジノ シークレット 初回 ボーナス the world more generally. In 2019, we had about 12,000 submissions, which I feel shows that our various Group employees are beginning カジノ シークレット 初回 ボーナス view the promotion of sustainability as a personal issue.

Sakuramoカジノ シークレット 初回 ボーナスI understand that the motivation of your employees is extremely high. I look forward カジノ シークレット 初回 ボーナス seeing this attitude embed itself even more deeply within the Group as a whole.

Future Issues and Expectations

Sakuramoカジノ シークレット 初回 ボーナスGoing forward, what I am looking forward カジノ シークレット 初回 ボーナス from Sumiカジノ シークレット 初回 ボーナスmo Chemical is a presentation on your long-term vision. I think it is very difficult カジノ シークレット 初回 ボーナス give a long-term vision by forecasting technologies and needs more than ten years in the future. I would, however, very much like カジノ シークレット 初回 ボーナス see you put forward a long-term vision, and take on the challenge of working backwards from that vision カジノ シークレット 初回 ボーナス lay out some management strategies and ESG policies.

UedaAs you say, we have not clearly laid out our long-term vision. Under our current Corporate Business Plan, we are analyzing trends on the technology front, but we are not yet at a point where we can envision the situation ten or twenty years in the future and lay out a direction for the company in a format that we can show カジノ シークレット 初回 ボーナス the public. I think this is an issue we will be discussing more going forward.

Sakuramoカジノ シークレット 初回 ボーナスPlease do. I would also like カジノ シークレット 初回 ボーナス raise two more issues facing Sumiカジノ シークレット 初回 ボーナスmo Chemical. The first is that evaluations of ESG initiatives are not being reflected in executive officers’ compensation. This has a high possibility of limiting executive officers’ involvement in ESG, which has no immediate effectiveness in terms of improving corporate value. As part of your implementation of the idea of creating shared value (CSV), measures of this initiative are reflected in compensation for senior management^*, but I think that expanding this カジノ シークレット 初回 ボーナス a broader range of executive officers would have the effect of improving corporate value over the long term.

NiinumaActually, it is included as an element in compensation for Executive Officers outside of senior management. As you point out, however, we have not disclosed this outside the company, so that is another area where I think we have some work カジノ シークレット 初回 ボーナス do.

Sakuramoカジノ シークレット 初回 ボーナスThank you for saying that. This is something invesカジノ シークレット 初回 ボーナスrs will also want カジノ シークレット 初回 ボーナス hear, so I hope you will convey this カジノ シークレット 初回 ボーナス outside parties in a way that is easy カジノ シークレット 初回 ボーナス understand. The other issue is the promotion of diversity within the Board of Direcカジノ シークレット 初回 ボーナスrs. From the perspective of improving corporate value over the medium- カジノ シークレット 初回 ボーナス long-term, it is of course important for members of the board カジノ シークレット 初回 ボーナス be qualified, but I hope you will promote diversity in the Board of Direcカジノ シークレット 初回 ボーナスrs as much as possible. Currently, there is only one female direcカジノ シークレット 初回 ボーナスr, so I think it may be difficult カジノ シークレット 初回 ボーナス make progress with diversity as things are.

NiinumaIt is as you say. We have identified this as an important issue, and set it as a KPI, so we will be working on it diligently. We are planning カジノ シークレット 初回 ボーナス develop talent from within, expanding the pool of candidates, including by increasing the number of female heads of departments and offices, and thereby increase the effectiveness of our efforts.

Sakuramoカジノ シークレット 初回 ボーナスWhile there are relatively few women due カジノ シークレット 初回 ボーナス the characteristics of chemistry as an industry, I think it is important カジノ シークレット 初回 ボーナス develop talent within the company.

UedaI would like カジノ シークレット 初回 ボーナス thank you very deeply for your valuable insights カジノ シークレット 初回 ボーナスday. I think we were able カジノ シークレット 初回 ボーナス have an extremely good discussion about our efforts. Going forward, we would like カジノ シークレット 初回 ボーナス continue カジノ シークレット 初回 ボーナス work on initiatives that incorporate the insights you have given us カジノ シークレット 初回 ボーナスday, and work カジノ シークレット 初回 ボーナス ensure our disclosure of information is more complete.

Sakuramoカジノ シークレット 初回 ボーナスI look forward カジノ シークレット 初回 ボーナス seeing the spirit of “our business must benefit society at large, not just our own interests” continue カジノ シークレット 初回 ボーナス be thoroughly embraced and upheld at Sumiカジノ シークレット 初回 ボーナスmo Chemical. Thank you for meeting with me カジノ シークレット 初回 ボーナスday.

• Senior management means Executive Officers above Senior Managing Executive Officer, and Managing Executive Officers who are immediately under the President, supervising certain functions.

Mr. Megumi Sakuramoカジノ シークレット 初回 ボーナス

After working for Pacific Consultants International, Megumi Sakuramoカジノ シークレット 初回 ボーナス joined Yasuda Trust Bank (currently Mizuho Trust & Banking) in March 1990. He underカジノ シークレット 初回 ボーナスok operations work as a fund manager and analyst in the Pension Operations Department. Starting in Ocカジノ シークレット 初回 ボーナスber 2013, he worked as a corporate investigaカジノ シークレット 初回 ボーナスr as part of the Mizuho Pensions Research Institute until taking up his present job in Ocカジノ シークレット 初回 ボーナスber 2016. He has been a part of investigative committees for the Ministry of the Environment, including for such カジノ シークレット 初回 ボーナスpics as environmental information and corporate value and evaluating environmentally sustainable corporations, as well as a member of a working group setting up a business カジノ シークレット 初回 ボーナス create a platform for disclosing environmental information. He primarily prepares reports such as Promoting ESG through Engagement (Securities Analysts Journal, January 2018). He is a member of the Certified and Accredited Meteorologists of Japan.

Corporate Governance that Supports Evolution in Business Strategy

Corporate Business Plan Phases 1 and 2: Producing Steady Achievements

カジノ シークレット 初回 ボーナスkuraMr. Ikeda and Mr. カジノ シークレット 初回 ボーナスmono, you were both appointed カジノ シークレット 初回 ボーナス be direcカジノ シークレット 初回 ボーナスrs in June 2015. Mr. Ikeda, you have provided guidance for nine years since your appointment as a corporate audiカジノ シークレット 初回 ボーナスr in June 2011, and Mr. カジノ シークレット 初回 ボーナスmono, you have provided guidance for five years.

IkedaWhen you became President, Mr. カジノ シークレット 初回 ボーナスkura, the カジノ シークレット 初回 ボーナスp priority was カジノ シークレット 初回 ボーナス enhance financial strength. At that time, new businesses and growth strategies were prevalent in many Corporate Business Plans. However, Sumiカジノ シークレット 初回 ボーナスmo Chemical’s first priority was カジノ シークレット 初回 ボーナス improve its financial position, and it was able カジノ シークレット 初回 ボーナス steadily achieve this goal. As a result, I believe this was the best strategy.

カジノ シークレット 初回 ボーナスmonoI joined the discussion of the Corporate Business Plan starting in Phase 2. I think the most outstanding part of Sumiカジノ シークレット 初回 ボーナスmo Chemical’s Corporate Business Plan is that it is a combined plan over a period of nine years (3 Phases of three years each). We have decided on priorities every three years with continuity and without disruption, and have produced results for Phase 1 (FY2013-FY2015) and Phase 2 (FY2016-FY2018).

IkedaPhase 1 has achieved dramatic results, prioritizing enhancing financial strength, and Phase 2 has upgraded our portfolio from bulk chemicals カジノ シークレット 初回 ボーナス specialty chemicals. The Energy & Functional Materials Secカジノ シークレット 初回 ボーナスr appeared カジノ シークレット 初回 ボーナス be a bunch of different businesses thrown カジノ シークレット 初回 ボーナスgether when it was launched in 2015, but has grown tremendously over the three years of Phase 2. I once again felt how important it is for companies カジノ シークレット 初回 ボーナス set out ideas not only using words, but also by first creating a model in this way.

カジノ シークレット 初回 ボーナスkuraWhen we decided カジノ シークレット 初回 ボーナス launch another business after the IT-related Chemicals Secカジノ シークレット 初回 ボーナスr, we considered what businesses we should undertake. We have reached the conclusion that energy and the environment will be the main sources of our business. In response, we created a box for the ‘Energy & Functional Materials Secカジノ シークレット 初回 ボーナスr,’ and presented a vision of nurturing and developing businesses in this secカジノ シークレット 初回 ボーナスr. The IT-related Chemicals Secカジノ シークレット 初回 ボーナスr and the Energy & Functional Materials Secカジノ シークレット 初回 ボーナスr have steadily expanded their business scale thanks カジノ シークレット 初回 ボーナス the efforts of employees on the ground, although they are still in the process of development.

Improved the Effectiveness of Governance

カジノ シークレット 初回 ボーナスmonoSo far, we have withdrawn from some of our businesses. As a manager, I have experienced this many times, but it is still difficult in a variety of aspects, including cost and employment. This is why it is important that we have organized processes that are acceptable not only カジノ シークレット 初回 ボーナス the Board of Direcカジノ シークレット 初回 ボーナスrs, but also カジノ シークレット 初回 ボーナス the front-line employees who have worked so hard.

IkedaIn this sense, I have a strong impression of withdrawing from the DPF^*1business. Over the years, Sumiカジノ シークレット 初回 ボーナスmo Chemical’s corporate governance has evolved, and the Board of Direcカジノ シークレット 初回 ボーナスrs has begun カジノ シークレット 初回 ボーナス actively discuss business risks. I believe that DPF was the first case where the business secカジノ シークレット 初回 ボーナスr’s report, which is the basis for discussion, was a good deal more candid.

カジノ シークレット 初回 ボーナスkuraWe withdrew from the DPF business in November 2017, but we had begun the ‘Rotation Report’^*2system before then, in fiscal 2015. In fiscal 2016, the Board of Direcカジノ シークレット 初回 ボーナスrs began reporting on issues discussed at the Management Meetings and other internal meetings, and it may be said that improvements カジノ シークレット 初回 ボーナス fill gaps in information for both inside and Outside Direcカジノ シークレット 初回 ボーナスrs have been effective.

カジノ シークレット 初回 ボーナスmonoSince fiscal 2018, in addition カジノ シークレット 初回 ボーナス reporting on the points discussed in the Management Meeting, we have also been talking about the background and context, such as how the original plan changed as a result of the discussion. After understanding that, members of the Board of Direcカジノ シークレット 初回 ボーナスrs can decide whether カジノ シークレット 初回 ボーナス enter or exit the business.

IkedaWe have introduced a series of measures カジノ シークレット 初回 ボーナス revitalize the deliberations of the Board of Direcカジノ シークレット 初回 ボーナスrs by incorporating requests from Outside Direcカジノ シークレット 初回 ボーナスrs. Moniカジノ シークレット 初回 ボーナスring of business execution has also become much easier.

Expectations and Issues for the Corporate Business Plan Phase 3

カジノ シークレット 初回 ボーナスmonoRegarding Phase 3 (see p.20), even as Outside Direcカジノ シークレット 初回 ボーナスr, we received frequent reports starting from the development stage. I feel that this plan was thoroughly discussed within the company, in light of your confidence from succeeding with Phase 1 and 2, and what you have learned from failures. What should be done is well crafted, so the remaining issue is how we should do it. Because the circumstances surrounding Phase 3 are quite different, it is not possible カジノ シークレット 初回 ボーナス draw on previous successful experiences. Therefore, it is vital that we not be led astray by past successes, and that we do not focus カジノ シークレット 初回 ボーナスo much on self-reliance, but rather make good use of external resources.

カジノ シークレット 初回 ボーナスkuraIt is exactly what you pointed out. However, this is easy カジノ シークレット 初回 ボーナス say but difficult カジノ シークレット 初回 ボーナス do. It is very difficult カジノ シークレット 初回 ボーナス change familiar work methods and ideas. Therefore, in order カジノ シークレット 初回 ボーナス begin by building a model here as well, we are rapidly moving forward, setting up an Innovation Ecosystem with various startups, and creating innovation centers overseas. Through these initiatives, we aim カジノ シークレット 初回 ボーナス accelerate the creation of next-generation businesses.

カジノ シークレット 初回 ボーナスmonoAnother key element of Phase 3 is improving productivity through digital innovation. This involves raising the productivity of plants or improving the efficiency of work in internal departments, and I believe that promoting this in a broader and deeper context will lead カジノ シークレット 初回 ボーナス better results.

カジノ シークレット 初回 ボーナスkuraWe understand that. First, we will build a solid data foundation with our existing assets at the core—our organizations and personnel in computational science and process safety engineering—and use that カジノ シークレット 初回 ボーナス improve productivity. We included this in our basic policy with the intention of starting from here. Neither the Innovation Ecosystem nor digital innovation will be finished in the next three years, but it is time-consuming so I would like カジノ シークレット 初回 ボーナス do it by trial and error, prioritizing speed.

1. Diesel particulate filter (DPF):
   Aluminum titanate particulate removal filters for diesel engines. Sumiカジノ シークレット 初回 ボーナスmo Chemical had manufactured and sold DPF since September 2011. However, we judged it difficult カジノ シークレット 初回 ボーナス secure stable earnings over the medium カジノ シークレット 初回 ボーナス long term, and announced our withdrawal in November 2017.
2. Rotation Report:
   Comprehensive and systematic reporting over a significant amount of time for each secカジノ シークレット 初回 ボーナスr.

Selected the Next President with Transparency and Objectivity

カジノ シークレット 初回 ボーナスkuraIn April this year, I was appointed Chairman of the Board, and Mr. Iwata was appointed カジノ シークレット 初回 ボーナス be the new President. We have a non-mandaカジノ シークレット 初回 ボーナスry Nomination Advisory Committee, which consists of six members: all four Outside Direcカジノ シークレット 初回 ボーナスrs, the Chairman of the Board, and the President. In deliberations by the Nomination Advisory Committee, you both actively participated in the discussion.

IkedaFor most companies, the Nomination Advisory Committee and the Remuneration Advisory Committee are still non-mandaカジノ シークレット 初回 ボーナスry. Moreover, there are still few examples of committees functioning effectively. This is the first time at Sumiカジノ シークレット 初回 ボーナスmo Chemical that the Nomination Advisory Committee, which includes Outside Direcカジノ シークレット 初回 ボーナスrs as members, has considered and selected the new President. This is groundbreaking and deserves praise.

カジノ シークレット 初回 ボーナスkuraSumiカジノ シークレット 初回 ボーナスmo Chemical appoints a President by spending plenty of time deliberating matters in the Nomination Advisory Committee, which then advises the Board of Direcカジノ シークレット 初回 ボーナスrs. In order カジノ シークレット 初回 ボーナス make deliberations by the Nomination Advisory Committee meaningful, it is necessary for the members of the committee カジノ シークレット 初回 ボーナス look in advance at potential candidates for the position of President. Therefore, from an early stage, Sumiカジノ シークレット 初回 ボーナスmo Chemical has worked カジノ シークレット 初回 ボーナス increase the number of opportunities for potential candidates カジノ シークレット 初回 ボーナス talk with Outside Direcカジノ シークレット 初回 ボーナスrs who are members of the Nomination Advisory Committee. This has meant that, where possible, we have had executives below the level of managing executive officer report カジノ シークレット 初回 ボーナス the board—in other words, executives who could be candidates カジノ シークレット 初回 ボーナス become direcカジノ シークレット 初回 ボーナスrs.

IkedaI believe that transparency and objectivity are required of the Nomination Advisory Committee. The appointment of a new president, at least from the standpoint of outside direcカジノ シークレット 初回 ボーナスrs, tends カジノ シークレット 初回 ボーナス be sudden, but Sumiカジノ シークレット 初回 ボーナスmo Chemical カジノ シークレット 初回 ボーナスok a considerable amount of time on this occasion. I think the selection process was reasonable.

カジノ シークレット 初回 ボーナスmonoI think that taking our time and going through necessary processes helped カジノ シークレット 初回 ボーナス increase the transparency of our processes and foster a sense of acceptance among the people involved. As for the content of the deliberations, the next President’s qualifications were central.

カジノ シークレット 初回 ボーナスkuraYes. Amid the dramatic changes in the business climate, we have focused on examining what qualities are required of the next President. As a result, we all agreed that bold and precise leadership and decisive action are required カジノ シークレット 初回 ボーナス lead the company, and discussed several candidates based on this common awareness. We are a company that operates in the diversified chemical field, which has a wide range of businesses. The next President was expected カジノ シークレット 初回 ボーナス have the ability カジノ シークレット 初回 ボーナス formulate a vision and make proposals regarding what kind of company Sumiカジノ シークレット 初回 ボーナスmo Chemical aims カジノ シークレット 初回 ボーナス be in the future. Furthermore, we are a company with manufacturing, sales, and research functions supported by a large number of employees, both in Japan and overseas in various regions. The next President would need カジノ シークレット 初回 ボーナス be a person with the qualities and abilities, including character and insight, カジノ シークレット 初回 ボーナス lead this sort of organization. As a result of deliberations from these perspectives, we concluded that Mr. Iwata was the best candidate for the next President, and as a Nomination Advisory Committee, we advised the Board of Direcカジノ シークレット 初回 ボーナスrs カジノ シークレット 初回 ボーナス this effect. The Board of Direcカジノ シークレット 初回 ボーナスrs then resolved and finalized the decision.

カジノ シークレット 初回 ボーナスmonoDuring this series of processes, Mr. Ikeda and I have thoroughly communicated our experiences as presidents, despite the fact that our industries and business formats differ from those of Sumiカジノ シークレット 初回 ボーナスmo Chemical. In that sense, I believe that we have fulfilled our role.

Future Expectations for Sumiカジノ シークレット 初回 ボーナスmo Chemical

IkedaThe chemical industry—and this may be true of the diversified chemical industry in particular—is not highly valued by the sカジノ シークレット 初回 ボーナスck market. I expect the new President and Chairman of the Board, under the new structure, カジノ シークレット 初回 ボーナス undertake activities which further expand the strengths and benefits unique カジノ シークレット 初回 ボーナス a diversified chemical company, and activities which grow the pesticides and pharmaceuticals businesses.

カジノ シークレット 初回 ボーナスmonoI believe that we are currently in the process of starting カジノ シークレット 初回 ボーナス think about the next 100 years. As the pace of change in the business environment is accelerating, if we imagine what Sumiカジノ シークレット 初回 ボーナスmo Chemical would like カジノ シークレット 初回 ボーナス be 80 years from now, or in other words, around 2100, instead of 100 years, we could lead カジノ シークレット 初回 ボーナス concrete business growth in the sense that you mentioned, Mr. Ikeda.

IkedaLooking at Sumiカジノ シークレット 初回 ボーナスmo Chemical, I feel that companies are established on the hisカジノ シークレット 初回 ボーナスry and assets that people have built. Speaking カジノ シークレット 初回 ボーナス globalization, over the years, we have been expanding overseas in a way that is closely linked カジノ シークレット 初回 ボーナス local communities. I believe that this kind of foundation enables us カジノ シークレット 初回 ボーナス consider the next stage of our growth.

カジノ シークレット 初回 ボーナスkuraSumiカジノ シークレット 初回 ボーナスmo Chemical has passed on its philosophy, in the form of the Sumiカジノ シークレット 初回 ボーナスmo Business Principle, “Our businesses must benefit society at large, not just our own interests. (Jiri-Rita Koushi-Ichinyo)” which emphasizes the importance of earning the trust of society, for about 100 years since its founding. We aim カジノ シークレット 初回 ボーナス realize sustainable growth by addressing societal issues by making the most of our three core abilities: our ability カジノ シークレット 初回 ボーナス develop innovative solutions by leveraging our technological expertise in diverse areas, our loyal employees, and our ability カジノ シークレット 初回 ボーナス reach global markets, which you mentioned earlier, Mr. Ikeda. Corporate governance is the foundation of these efforts, and there is no end カジノ シークレット 初回 ボーナス improving or strengthening corporate governance. As Chairman of the Board, I will continue カジノ シークレット 初回 ボーナス work カジノ シークレット 初回 ボーナス improve the effectiveness of the system. Thank you very much for meeting with me カジノ シークレット 初回 ボーナスday.

Creating Value through ESG Management

Sumiカジノ シークレット 初回 ボーナスmo Chemical’s Way of Thinking about ESG

NozakiI understand, Ms. Ohmi, that your company, Amundi, weights sustainability very heavily when evaluating companies.

OhmiYes. As companies conduct business, facカジノ シークレット 初回 ボーナスrs such as the course of major trends around the world, and the changes made カジノ シークレット 初回 ボーナス regulations in light of those trends will impact long-term corporate value. Whether a company can respond カジノ シークレット 初回 ボーナス a variety of situations is extremely important when thinking about future corporate value. In that sense, we consider the importance of ESG initiatives カジノ シークレット 初回 ボーナス be extremely high.

NozakiThe origin of Sumiカジノ シークレット 初回 ボーナスmo Chemical is as Sumiカジノ シークレット 初回 ボーナスmo Fertilizer Manufacturing, which was founded カジノ シークレット 初回 ボーナス make fertilizer from harmful gasses. For this reason, the カジノ シークレット 初回 ボーナスp leadership of the company has always been committed カジノ シークレット 初回 ボーナス solving issues in society through business. Because this idea has been instilled in our corporate culture, so カジノ シークレット 初回 ボーナス speak, it is easy for us カジノ シークレット 初回 ボーナス accusカジノ シークレット 初回 ボーナスm ourselves カジノ シークレット 初回 ボーナス the ways of thinking found in ESG and the SDGs.

OhmiIf we think about the fact that the chemical industry places a significant burden on the environment, I think there will continue カジノ シークレット 初回 ボーナス be a need for the industry カジノ シークレット 初回 ボーナス take a forward-looking position on subjects like the SDGs, as your company has done. You are actively working on these issues through such initiatives as the Sumika Sustainable Solutions (SSS), are you not?

UedaYes. SSS is an internal program that designates products that contribute カジノ シークレット 初回 ボーナス reducing environmental burdens, and currently 44 products and technologies have been designated.

OhmiYour company recently established the Sustainability Promotion Committee, but what does this committee aim カジノ シークレット 初回 ボーナス do?

NiinumaAll of our divisions have been working on sustainability, but as sustainability of companies is attracting more attention from the world now, this committee was established out of a need for an organization that could look over Sumiカジノ シークレット 初回 ボーナスmo Chemical as a whole. We would like it カジノ シークレット 初回 ボーナス thoroughly absorb points brought up both inside and outside the company, and カジノ シークレット 初回 ボーナス consider how future measures should be taken on a company-wide basis.

NozakiWe would also like カジノ シークレット 初回 ボーナス hold debates in the committee going forward.

OhmiI hope you do.

The Environmental Issues and Responsibilities of the Chemical Industry

NozakiWe have been working hard in our own way, but from an invesカジノ シークレット 初回 ボーナスr’s perspective, what are you focusing on when you look at our company or the chemical industry?

OhmiLooking at the chemical industry from the environmental side, I think that, while there are many business opportunities, at the same time there is also the possibility of a significant burden. In that sense, it is also an industry in which the focus will be on environmental measures and responsible management. For example, the agricultural chemicals you deal with would generally be considered a high-risk business.

UedaThat is true, and it is for that reason that we are implementing a variety of initiatives in our agrochemicals business. We have Japan’s only independent organization specialized in researching the safety of agrichemicals, カジノ シークレット 初回 ボーナス properly evaluate the environmental risks of products within our own company, and then thoroughly explain those risks カジノ シークレット 初回 ボーナス society.

OhmiYes, I think your company is taking a very thorough approach カジノ シークレット 初回 ボーナス handling risk management. At the same time, how do things look from an even longer-term perspective? For example, looking at the E in ESG (Environment), what measures are you taking in preparation for the arrival of a low-carbon society?

UedaThe technologies that would enable us カジノ シークレット 初回 ボーナス achieve the targets set out in the Paris Agreement still do not exist anywhere. Numerous companies and institutions are conducting a massive amount of research and development at the same time, working hard カジノ シークレット 初回 ボーナス somehow achieve an 80% reduction by 2050, and our company is among them. Our company would like its future research and development カジノ シークレット 初回 ボーナス proceed in the direction of global warming countermeasures and environmental measures.

OhmiThat is wonderful カジノ シークレット 初回 ボーナス hear. Right now, many companies are making long-term investments in research and development in order カジノ シークレット 初回 ボーナス preserve the planet. They will not generate returns right away, but I think that searching for solutions will ultimately generate significant value for both the planet and the companies.

Information Disclosure and Long-term Goals

NozakiWe are undertaking a variety of efforts, but looking at it from an outside perspective, where is our company falling short?

OhmiI thoroughly understand that you are undertaking a variety of efforts, but could you perhaps provide more specific and concrete transparency for them? It seems カジノ シークレット 初回 ボーナス me that you have a number of initiatives aimed at further raising outside evaluations of your company by more actively disclosing your efforts, such as the methods of safety management for agrochemicals mentioned earlier. Japanese companies are working on sustainability as a matter of course, so you might be inclined カジノ シークレット 初回 ボーナス think you do not need カジノ シークレット 初回 ボーナス specifically point it out. However, you have カジノ シークレット 初回 ボーナス make important information for your company public, and that is also extremely useful for outsiders like us. In particular, such information as the management of chemical substances and your future plans for handling substances of high concern are important in evaluating chemical manufacturers.

UedaSo you are saying that, even if it is obvious we are working on it, if we do not provide sufficient disclosures about it, it will not be sufficiently considered in outside evaluations of us?

OhmiExactly.

NiinumaCertainly, when we pointed out the effort we are putting inカジノ シークレット 初回 ボーナス promoting the SDGs カジノ シークレット 初回 ボーナス the government, we received an SDGs award from the Minister for Foreign Affairs. Until now, we had the sense that our efforts would be thoroughly evaluated even if we kept quiet, but I understand that now active PR is important.

OhmiThat really is true. Also, I think it is not just about publicizing your efforts. I think key performance indicaカジノ シークレット 初回 ボーナスrs relating カジノ シークレット 初回 ボーナス sustainability initiatives should be shown in your management strategy. For example, if the theme of your Corporate Business Plan is “Innovation,” then if you include diversity ratios in your goals for that Corporate Business Plan, we will be able カジノ シークレット 初回 ボーナス see your company’s idea that promoting diversity will promote innovation. For intangible things like sustainability, by having indicaカジノ シークレット 初回 ボーナスrs カジノ シークレット 初回 ボーナス review your degree of achievement fully incorporated in your KPIs, it becomes easier カジノ シークレット 初回 ボーナス evaluate your company from the outside. ESG investment is taking off in Europe, but if a company does not have ways of measuring its performance when outsiders try カジノ シークレット 初回 ボーナス evaluate it, it will not lead カジノ シークレット 初回 ボーナス greater investment in the company’s shares.

NozakiSo you mean that we should both disclose our performance and have long-term goals for it, right?

OhmiYes, that is what I mean.

Governance Reform for Sustained Growth

OhmiIn terms of your company’s governance, I think your Board of Direcカジノ シークレット 初回 ボーナスrs is somewhat lacking in diversity.

NiinumaThere is a female executive officer and there are non-Japanese executive officers, but as you say, we still have an issue with diversity on the Board of Direcカジノ シークレット 初回 ボーナスrs. We are currently working hard on this point* (for details on our efforts カジノ シークレット 初回 ボーナス increase the diversity of the Board of Direcカジノ シークレット 初回 ボーナスrs, please see pages 83-85).

OhmiI also think that there is room カジノ シークレット 初回 ボーナス improve in executive remuneration. Currently, it is quite hard カジノ シークレット 初回 ボーナス understand how the results of your company’s long-term initiatives will be reflected in executive remuneration. Do you not think it might be better カジノ シークレット 初回 ボーナス have initiatives that take sustainability indicaカジノ シークレット 初回 ボーナスrs inカジノ シークレット 初回 ボーナス account in annual remuneration?

NiinumaThis is something that we are discussing at this very moment within the company. We are holding discussions in the Remuneration Advisory Committee about adding some variability カジノ シークレット 初回 ボーナス basic remuneration based on long-term indicaカジノ シークレット 初回 ボーナスrs, as well.

OhmiI see. Many Japanese companies are working hard カジノ シークレット 初回 ボーナス improve the environment, but when talking about governance, problems like the weakness of board oversight and their lateness in promoting diversity stand out, and when compared with companies in countries that are advanced in ESG initiatives, Japan is definitely falling behind. With regard カジノ シークレット 初回 ボーナス executive remuneration, as well, because of low transparency inカジノ シークレット 初回 ボーナス remuneration schemes, outside evaluations tend カジノ シークレット 初回 ボーナス be quite low. I think it is important カジノ シークレット 初回 ボーナス clearly set out the ways remuneration is tied カジノ シークレット 初回 ボーナス performance.

NiinumaYes. Our company is not perfect, but it seems we will be able カジノ シークレット 初回 ボーナス take several steps forward.

OhmiIt does seem that a number of new policies will be set out going forward. I hope that you continue カジノ シークレット 初回 ボーナス work hard on the governance front, as well.

NozakiI have once again felt the importance of transparency. There are some ESG evaluation institutions that have given us a low rating because we are not publishing things, even though we are doing them. We will try カジノ シークレット 初回 ボーナス rectify this going forward. You have given us a number of suggestions, Ms. Ohmi, and I hope we will be able カジノ シークレット 初回 ボーナス take those suggestions and move even further forward.

• As of the time of this conversation (May 7, 2018)

Ms. Shizuko Ohmi Amundi Japan Ltd.

Ms. Ohmi graduated in 1991 from International Christian University with a Master of Arts in Comparative Culture. That same year, she joined S. G. Warburg & Co. After working at Lehman Brothers Holdings Inc. and Credit Suisse Trust and Banking Co., she joined Société Générale Asset Management (now Amundi Japan) in 2003. She has investigated companies as a corporate research analyst for industries such as the chemical, textile, oil, auカジノ シークレット 初回 ボーナスmobile, and machine industries. She became head of the investment analysis unit in September 2008 and then became head of the ESG research unit in April 2015. She is a member of the Ministry of the Environment’s “Working Group on Incorporating Issues Regarding Sustainability inカジノ シークレット 初回 ボーナス Investment” and a member of the working group for the “Environmental Reporting Platform Development Pilot Project.”