The DIC Group's Sustainability Program
- Overview of Sustainability
- Basic Sustainability Policy（Partially revised in March 2019）
- Sustainability Framework and Themes
- System for Promoting Sustainability Initiatives
- The DIC Sustainability Index
- Responding to a Circular Economy
- Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud Reputation
- The 2030 Agenda for Sustainable Development
Overview of Sustainability
The DIC Group defines sustainability initiatives as undertakings that capitalize on its businesses to contribute to sustainability for society and conservation and improvement of the global environment, as well as to its own sustainable growth. In line with its basic sustainability policy, the Group promotes a variety of sustainability initiatives worldwide and works to maintain an accurate grasp of social imperatives pertaining to ESG-related issues. In fiscal year 2018, DIC established the ESG Unit with the aim of further expanding Group ESG initiatives worldwide.
Effective from 2024, the Company also discloses sustainability information in its annual securities report, which it is legally required to file in Japan. The Company is also working with sites around the world to comply with overseas disclosure guidelines, including the European Union (EU)’s Corporate Sustainability Reporting Directive (CSRD). The DIC Vision 2030 long-term management plan also outlines sustainability strategies, which will guide efforts to further drive sustainability initiatives across the DIC Group.
Basic Sustainability Policy（Partially revised in March 2019）
The DIC Group is dedicated to conducting its business while retaining a strong commitment to five key concepts: preserving safety and health, managing risks, ensuring fair business practices and respect for diversity and human rights, maintaining harmony with the environment and advancing its protection, and creating value for society through innovation and contributing to ongoing economic growth. DIC Group employees will continue working to deliver the value that its stakeholders—including its customers, suppliers, local communities, shareholders and investors, and employees—expect, showing ingenuity and a sense of responsibility. The Group itself will strive to remain an organization that contributes to sustainability for society, as well as to the conservation and improvement of the global environment, by capitalizing on its businesses to achieve unfaltering growth, thereby enhancing its own sustainability.
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Notes:
- With the aim of ensuring that it remains a globally trusted corporate citizen with a proud reputation, in December 2010 the DIC Group became a signatory to the UNGC. The Group also takes the guidelines provided by ISO 26000, the International Organization for Standardization’s standard for social responsibility, into account in conducting its operations.
- The global community today recognizes the promotion of ESG management, which seeks to balance sustainable economic growth and the resolution of social imperatives, as critical. This is evidenced by the fact that countries worldwide have ratified the Paris Agreement and the SDGs, both of which were adopted in 2015.
Sustainability Framework and Themes
Themes
The DIC Group’s sustainability framework comprises 13 key themes, which are categorized as basic themes, themes that demonstrate unique capabilities and themes that combine elements of the previous two classifications. The Group implements a broad range of global initiatives that take into account its responsibility to ensure proper product stewardship, as well as its position as a leading manufacturer of fine chemicals. These themes are reviewed as appropriate in light of changes in the operating environment and the progress of related initiatives.
Deployment
In line with its basic sustainability policy, the DIC Group has formulated a medium-term (fiscal years 2022–2025) policy and creates an annual activity plan for each of its key sustainability themes. Individual units, divisions and departments are in charge of implementing sustainability initiatives, with the business groups responsible for supervision, product division and site general managers, and the presidents of DIC Group companies. The progress and results thereof are reported in the DIC Report. Business groups, product divisions, and Group companies in Japan and in other countries and territories are tasked with formulating their own sustainability activity plans. They also work to ensure Group policies permeate their organizations and labor forces, as well as to promote sustainability initiatives that align with business targets.
System for Promoting Sustainability Initiatives
The DIC Group’s sustainability initiatives are overseen by the president and CEO, who since fiscal year 2020 has also chaired the Sustainability Committee. This committee, which answers directly to the president and CEO and is charged with advancing, improving and coordinating sustainability initiatives across units, divisions and departments from a Groupwide perspective, met four times in fiscal year 2023. The committee devises medium- to long-term policies,formulates and approves annual sustainability activity plans based on the basic sustainability policy, as well as on related medium- to longterm policies, and deliberates and makes decisions on other key matters deemed to require its adjudication. The medium- to long-term policies, like the basic sustainability policy, are subject to resolution by the Board of Directors.
The Sustainability Committee’s secretariat is tasked with developing and coordinating proposals for the DIC Group’s annual sustainable activity plans, key performance indicators (KPIs) and related schedules, as well as with supporting implementation in individual units and departments. The secretariat has also overseen the preparation of Japanese-, English- and Chinese-language versions of the basic sustainability policy and the distribution thereof across the Group to ensure awareness. Since fiscal year 2022, the Sustainability Committee has also been tasked with promoting initiatives in line with the sustainability strategies of DIC Vision 2030.
Members of the Sustainability Committee
President and CEO, Executive Vice President, Head of the Finance and Accounting Unit, Head of the Corporate Strategy Unit, Head of the General Affairs and Legal Unit, Head of the ESG Unit, Head of the SCM Unit, Head of the IT Strategy Unit, Presidents of the business groups, General Managers of the product divisions, General Manager of the Production Management Unit, General Manager of the Technical Management Unit, General Manager of the R&D Management Unit, General Manager of the New Business Development Headquarters, General Manager of the Corporate Planning Department, CEOs of regional headquarters, Presidents of key Group companies in Japan, and Members of the Audit & Supervisory Board
The DIC Sustainability Index
The DIC Group has established its own sustainability index. Deployment of the DIC Sustainability Index is contributing to efforts to increase sustainable products as a key component of its effort to transform its business portfolio. Policies for deployment and in-house administration will be reviewed to reflect changes to the Group’s management strategies.
Responding to a Circular Economy
“Respond to a circular economy” is of the DIC Group’s core sustainability strategies. In line with its proprietary “5Rs” (reuse, reduce, renew, recycle and redesign) framework, the Group is promoting various initiatives aimed at helping realize a circular economy. As outlined in its circular economy message, the Group will continue to leverage its strengths and distinctive capabilities to encourage recycling and improve the competitiveness of its products and solutions.
Related Link
Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud Reputation
Leveraging Position as a Global Manufacturer of Fine Chemicals to Support the UNGC
Seeking to fulfill its responsibilities as a member of the international community in a more proactive manner, in December 2010 the DIC Group became a signatory to the United Nations Global Compact (UNGC). The Group simultaneously pledged its support for the Ten Principles of the UNGC.
Applying the Ten Principles of the UNGC
The DIC Group Code of Business Conduct conforms with the Ten Principles of the UNGC. The Group is capitalizing on its participation in this program to advance its operations around the world while at the same time giving ever-greater consideration to the environment and human rights, with the aim of ensuring sustainability for global society.
Ten Principles of the UNGC (Official Version)
| Human rights | Principle 1 | Businesses should support and respect the protection of internationally proclaimed human rights; and |
| Principle2 | make sure that they are not complicit in human rights abuses. | |
| Labour | Principle3 | Businesses should uphold the freedom of association and effective recognition of the right to collective bargaining; |
| Principle4 | the elimination of all forms of forced and compulsory labour; | |
| Principle5 | the effective abolition of child labour; and | |
| Principle6 | the elimination of discrimination in respect of employment and occupation. | |
| Environment | Principle7 | Businesses should support a precautionary approach to environmental challenges; |
| Principle8 | undertake initiatives to promote greater environmental responsibility; and | |
| Principle9 | encourage the development and diffusion of environmentally-friendly technologies. | |
| Anti-corruption | Principle10 | Businesses should work against corruption in all its forms, including extortion and bribery. |
Complying with ISO 26000
The DIC Group operates in a manner that is consistent with ISO 26000, the International Organization for Standardization’s standard for social responsibility, released in November 2010, which provides businesses and organizations guidelines for operating in a socially responsible manner.
The 2030 Agenda for Sustainable Development
At the UN Sustainable Development Summit in September 2015, a proposal titled “Transforming our world: the 2030 Agenda for Sustainable Development,” later summarized as the Sustainable Development Goals (SDGs), was adopted with the participation of more than 150 UN member states. The agenda, which succeeded the Millennium Development Goals (MDGs), encompasses 17 goals and 169 targets. All UN member states are expected to mobilize efforts to attain the 17 goals, essential to sustainable development for the planet, by 2030. The DIC Group pledges to contribute through its business activities to the success of the SDGs.
