A Message from the Head of the ESG Unit
We are carrying out activities with consistency and integrity, taking a long-term perspective toward contributing to growth for the DIC Group.
Kuniko Torayama
Executive Officer
Head of ESG Unit
I have a feeling that 2025 will be a watershed moment in the pursuit of sustainability. Despite increasing clamor around the world for the reduction of CO₂ emissions, the reality is that emissions continue to increase. Data from Japan’s Ibuki weather observation satellite shows that the average atmospheric concentration of CO₂ is rising steadily. The European Union’s Copernicus Climate Change Service reports that 2024 was the first calendar year in which the average global temperature was more than 1.5°C above preindustrial levels.
Efforts to achieve sustainability are not coordinated among countries and territories. For this reason, the DIC Group is called upon to leverage its position as a multinational organization with operations worldwide to promote proprietary activities. Against this backdrop, I am overseeing the implementation of initiatives in line with the central tenet I voiced in DIC Report 2024: “Guided by our longstanding vision statement, we will continue advancing determined efforts to help realize a sustainable society.” The following is a brief progress report on recent efforts.
Reducing CO₂ Emissions
Despite a 3.6% dip in the DIC Group’s overall production volume in fiscal year 2024, CO₂ emissions edged up 2.3%. We continued to take diligent steps to lower Scope 1 (direct) emissions during the period and in fiscal year 2025 will bring a new biomass boiler online at the Sakai Plant. We also sought to trim Scope 2 (indirect) emissions by shifting fully to green power to satisfy the electric power needs of all DIC Group sites in Japan. In addition, we encouraged the purchase of green power overseas, including in the PRC, Southeast Asia and South America. The Climate Change Working Group is currently discussing how to best combine such measures to ensure the Group meets its target of a 50% reduction in Scope 1 and 2 emissions from the fiscal year 2013 level by fiscal year 2030.
Shrinking Our Product Carbon Footprint
The DIC Group provides information on the product carbon footprint, that is, carbon emissions over a product’s entire life cycle, using the “cradle-to-gate” approach, which measures direct emissions from raw material extraction through manufacturing to the point the product is shipped. To date, this has focused on Europe, the Americas and Japan, but in fiscal year 2024 we also began extending this information regarding products in the China and the Asia–Pacific region, establishing a global product carbon footprint information system. Demand for product carbon footprint information is increasing, particularly from European companies and companies with European clients, as well as from companies in the automobile industry. This trend is expected to continue for the foreseeable future.
Launching a Nonfinancial Information Disclosure Project
Anticipating the introduction of legislation regarding the disclosure of nonfinancial information in various countries and territories, we previously launched a nonfinancial information disclosure project that is tasked with establishing a framework for collecting nonfinancial information around the world. In fiscal year 2024, we took steps to prepare for the EU’s Corporate Sustainability Reporting Directive (CSRD). As a result, in addition to complying with this legislation, we aim to make not only financial but also nonfinancial information available to customers to aid in their evaluations and enhance their understanding of the DIC Group and its activities.
Encouraging Diversity
The diversity and individuality of our employees is a source of value. Seeking to leverage that value as a key competitive strength of the DIC Group, in fiscal year 2024 we emphasized fostering a corporate culture that makes it easy for male employees to take parental leave, and that provides training and mentoring systems that support confident career building for female employees.
ESG does not lead directly to corporate profits over the short term. However, embracing diversity encourages employee growth, which is crucial to supporting our businesses going forward, and effectively calculating and providing information on product carbon footprint reduces CO₂ emissions across the value chain, leading to the creation of value. We will continue to advance related initiatives with integrity—something the DIC Group is known for—in accordance with the DIC Group's Core Values, thereby contributing to growth for the Group over the long term.
