Sustainability Management and Advancement Structure

Under the corporate mission "Materials Innovation - We create value through materials to enrich society, people and the environment," JSR Group aims to build and maintain good relationship with all of our stakeholders and become an indispensable corporate citizen. And we will promote initiatives that benefit all stakeholders—customers and business partners, employees, society, the environment, and shareholders.

1.Sustainability Promotion Committee

JSR Group established its Sustainability Promotion Committee in 2020. The committee discusses and coordinates on matters related to sustainability, including policies, in line with internal and external circumstances relating to ESG and the SDGs.

Below the Sustainability Promotion Committee are four committees called the Sustainability Planning Committee, Environment, Safety and Quality Committee, Risk Management Committee, and Corporate Ethics Committee. The Sustainability Promotion Committee supervises and guides the four committees, and also strengthens and promotes their management through regularly scheduled meetings (held four times annually) as well as extraordinary meetings. In principle, the Committee also reports on activities once every quarter to the board of directors and undergoes supervision/observation by the board of directors.

The Sustainability Promotion Committee is chaired by the President. Participants are the secretariats of the four above-mentioned committees as well as company officers (those responsible for corporate planning, manufacturing technologies, procurement and logistics, quality assurance, safety and environmental affairs, research and development, human resources development, accounting and financial affairs, corporate communications, general affairs, legal affairs and compliance, system strategies, cyber security management, sustainability promotion, diversity promotion, the Digital Solutions Business, the Life Sciences Business, and the Plastics Business). This enables the committee’s discussions to touch on all businesses and functions of the Group.

We endeavor to build confidence among our stakeholders by disclosing information on the committee’s activities and results in the Sustainability Report.

Examples of Issues Discussed by Sustainability Promotion Committee in FY2022

  • JSR Group’s activities to advance sustainability management
  • Discussion on JSR Group’s material risks
  • Latest situation on various reviews related to activities to advance sustainability

(1)Sustainability Planning Committee

JSR Group maintains a Sustainability Planning Committee that is chaired by the officer in charge of sustainability promotion. The reason we have this committee is that we recognize the need to respond to changes in the environment, deepen our sustainability initiatives, and continually provide value to all stakeholders.

The Sustainability Planning Committee summarizes the state and results of Creating Shared Value (CSV) activities through co-creation with business departments. It also considers corporate initiatives for sustainability, such as responding to the Task Force on Climate-related Financial Disclosure (TCFD) and addressing climate warming and sets direction for sustainability strategies in light of the management policy, materiality, and identified risks.

The committee also addresses social contribution activities by studying new undertakings and monitoring the status of existing activities based on JSR Group’s Philosophy for Social Contribution.

(2)Environment, Safety and Quality Committee

We believe “making sustainable development possible” is an important form of corporate responsibility. We therefore address the environment, safety, and quality based on the principle of “responsible care.” At JSR, these initiatives are fundamental to our business activities. Therefore, we maintain an Environment, Safety and Quality Committee chaired by the officer in charge of safety, environmental affairs, and quality assurance, who spearheads effective, Group-wide initiatives.

The committee approves plans that concern responsible care activities within the contexts of the environment, safety, and quality. It also evaluates and verifies the results of these activities. The committee additionally strives to maintain and improve responsible care as it pertains to the elimination of accidents, reduction of environmental impacts, chemical management, and product safety.

(3)Risk Management Committee

We believe that preventing major crises and minimizing their effects on business activities should they occur are important management challenges. Given this, we have formulated Risk Management Policies and established a Risk Management Committee that is chaired by the officer in charge of corporate management. The Risk Management Committee promotes continuous improvement of guidelines and plans for responding to both manifested and potential crises.

(4)Corporate Ethics Committee

JSR Group practices and promotes corporate ethics by setting down the JSR Group Principles of Corporate Ethics—a code of conduct for fulfilling our Responsibility to Our Stakeholders, a key management policy to support the realization of our Corporate Mission. We further pursue corporate ethics through the Corporate Ethics Committee chaired by the officer in charge of general affairs.

This committee makes certain that JSR’s Course of Action is recognized throughout the Group as a statement demanding compliance in daily corporate activity. It also confirms compliance each year and works to continually improve it.

We also provide compliance reporting channels. For employees, we have an internal hotline connected to the Corporate Ethics Committee, an external hotline connected to an attorney, and an external hotline that can handle communication in English, Chinese, Korean, and Thai. We have also set up an external hotline for our business partners.

2. Employee Activities to Advance Sustainability

JSR Group implements the following activities to deepen employees' understanding of sustainability and ensure that they utilize this knowledge in their daily work.

Explanations during Stratified Training

We provide explanations in training for new employees and new managers.

Sustainability & RC Caravan

Every year, the officer in charge and department heads explain the progress of sustainability and RC initiatives and the specifics of activities.

Sustainability Meetings

We hold annual meetings to set themes related to sustainability and discuss them with departments and teams. The results and opinions discussed are collected by the Sustainability Promotion Department, and the results and feedback are posted in our digital company newsletter. The theme for FY2022 was "KPIs for Management Foundation in the Workplace and Specific Activities," with a total of 184 departments and teams participating.

Sustainability Discussions

In FY2023, the Sustainability Promotion Department began activities to explain in detail social trends related to materiality and sustainability for interested employees.

3. Review of Advancement Structure (June 16, 2023 onward)

In accordance with the organizational reform following the Ordinary General Meeting of Shareholders in June 2023, the chair of the Sustainability Promotion Committee was changed to the President and CEO. Under this structure, the office of the four committees and each executive officer (corporate planning, production technology, procurement logistics, quality assurance, environment and safety, research and development, human resource development, accounting, finance, public relations, general affairs, legal and compliance, system strategy, cybersecurity management, sustainability promotion, diversity promotion, Digital Solutions Business, Life Sciences Business, and Plastics Business) will continue to participate to advance sustainability activities.

Going forward, we will continue to deliberate and coordinate sustainability-related matters, including policies for sustainability activities, in light of domestic and international developments related to ESG and the SDGs, and operate the committee a cross-functional meeting body representing all of the Group's businesses and functions.

Sustainability Management Advancement Structure