Promoting Business Portfolio Transformation: Balancing Social Value and Economic Value
The basic concept of DIC111 is to transform the DIC Group’s business portfolio by focusing on businesses that deliver both social value and economic value, an approach it sees as central to realizing its future vision, which is to become a unique global company that is trusted by society by providing value (safety and peace of mind, color and comfort). With social imperatives related to concerns such as climate change and marine plastics becoming increasingly urgent, the Group is reinforcing efforts to develop distinctive solutions that contribute to social value and to the realization of a sustainable society.
Through DIC111’s two basic strategies, Value Transformation and New Pillar Creation, the DIC Group will continue to accelerate efforts to transform its business portfolio in a manner that ensures its ability to balance social value and economic value.
Formulating the DIC Sustainability Index to Express Social Value
To accelerate its transformation, the DIC Group formulated a proprietary sustainability index with the aim of clarifying the social value that the Group provides. To draft the index, DIC established the cross-business Sustainability Strategy Working Group, which held discussions with departments in charge of the manufacturing and sales of Group products.
Expressing Social Value on Two Axes: Environmental Impact Reduction and Social Contribution
The procurement of essential raw materials and the manufacture of products inevitably has an effect on the environment. The DIC Sustainability Index’s vertical axis (environmental impact reduction) expresses evaluation of the impact of a business or product on the environment and the benefits of efforts to devise effective countermeasures. The horizontal axis (social contribution) expresses evaluation of a business’ or product’s contribution to the resolution of key challenges, as well as to the realization of a sustainable society. The Group will continue to use this index to clarify the environmental impact and contribution to markets of its businesses and products, enhancing its ability to deliver social value.
Approach through the Value Chain
The DIC Sustainability Index’s vertical axis (environmental impact) expresses evaluation of the impact of a product on the environment over its entire life cycle (life cycle assessment1). This means assessing not only energy used in and waste generated during production but also environmental impacts in the production of raw materials (crude oil production, mining, cultivation). The index also evaluates hazardous substances and substances designated under Japan’s Pollutant Release and Transfer Register (PRTR), thereby clarifying the DIC Group’s responsibility in supplying products, as well as its duty to formulate and implement countermeasures. The horizontal axis (social contribution) expresses evaluation of a product’s contribution to the resolution of key challenges during processing by customers, use by consumers and end-of-life disposal. The index also assesses risks associated with the raw materials procured and products supplied by the DIC Group, as well as opportunities (contributions to society) that leverage its unique capabilities.
The DIC Sustainability Index will help us identify risks and opportunities across the entire value chain.
From the perspective of realizing a sustainable society, it is essential to look at the entire value chain. The DIC Sustainability Index will enable us to clarify product- and business-specific risks and opportunities. This will make it possible to investigate risks in terms of whether they can be resolved and/or transformed into opportunities. Of course, we will also continue to reassess opportunities in light of global trends to ensure there is no chance of them turning into risks. Use of this index to identify product- and businessspecific risks and opportunities and implement effective countermeasures will be crucial to achieving our future vision of becoming a unique global company that is trusted by society.
Manager, Sustainability Department, DIC Corporation Nobuo Kobayashi