Message from Our Chief Sustainability Officer
We regard sustainability initiatives as an important management strategy, and will promote these activities in conjunction with other management measures.
JSR Group’s Sustainability – Initiatives for Materiality (Priority Issues)
JSR Group defines sustainability as “contributing to society by creating value with our business activities.” Operating three major businesses globally, we consider it an important management strategy to promote sustainability throughout the Group while respecting diversity.
In promoting sustainability initiatives, we identify materiality based on our corporate mission and by comprehensively considering how society and the natural environment impacts JSR Group as well as the impact of JSR Group's activities on society and the natural environment, and on internal and external stakeholders. We then consider how to incorporate materiality into individual business strategies as well as evaluation indicators (KPIs).
There are two areas that we are emphasizing in particular with regard to our materiality. The first is to promote Diversity, Equity & Inclusion (DE&I) for improving the engagement of employees, who are the driving force behind sustainability. The second is to address climate change, which is having a huge impact on the world, by reducing our environmental impacts. We are stepping up our efforts to address these material issues, and are considering and promoting Group-wide measures to address the various issues that are important from the dual perspectives of risk and business opportunity.
Regarding KPIs that measure the degree of achievement of materiality, I can praise our steady progress that was made in FY2023.
With regard to "improve employee engagement" in terms of the materiality of Management Foundation, in light of the results of the 3rd Global Employee Engagement Survey conducted in FY2023, many voices wanted to enhance the dissemination of information on the company's direction, future vision, and long-term vision. Therefore, we disseminate messages from top management and the heads of business segments several times. As a place for two-way communication, we have started to hold dialogue meetings between top management and small groups of employees. In addition, we have established KPIs to improve communication at the organization and division levels, such as clarifying career paths and improving communication within teams.
We are working to reduce GHG emissions in accordance with the plan based on the KPI of reducing Scope 1 and 2 emissions by 30% in FY2030 compared to 2020 levels. Based on the information obtained in confirming progress and requests from stakeholders, we have determined a probable need to set more in-depth targets in the future, and have begun to review them.
JSR Group defines sustainability products as those that contribute to the improvement of quality of life, wellbeing, a happy society with health and longevity, and global environmental conservation through business activities. Sales of these products has been set as a KPI. In FY2023, sales of sustainability products in the Digital Solutions Business increased 2.4 times compared to FY2020, while sales of these products in the Life Sciences Business significantly exceeded the target for FY2024.
On the other hand, issues remain with analyzing the information obtained through activities in FY2023 and incorporating it into specific activities. Furthermore, there were certain realizations that will lead to improved KPI management in the future, such as the importance of setting KPIs that incorporate global initiatives and regional characteristics.
Achievement of KPIs is not the goal; rather it is important to firmly integrate a sustainability perspective into the activities of each division. Fostering a culture in which each and every employee is aware of sustainability in their daily work through target-directed efforts represents the foundation for the growth of our organization and a sustainable future.
Respect for Diversity – Providing a Place for People to Shine and Incorporating Diverse Perspectives
Diversity is the source of our competitiveness. We are focusing on DE&I initiatives as a foundation to get the most out our diverse pool of human resources. We believe that in order to sustainably increase corporate value, it is important to provide a workplace where each and every employee can maximize their abilities.
Achieving the career goals of each individual is an important sustainability initiative, as it leads to a fulfilling life. In light of DE&I's important role in promoting sustainability, the director in charge of sustainability at JSR is also in charge of diversity promotion. JSR Group currently has business sites in 12 countries and regions around the world, with employees from diverse backgrounds in terms of nationality, gender, age, and professional history. We will continue to flexibly incorporate new ideas and approaches born of this diversity, develop employees who will continue to create positive impacts on society, and proactively develop various systems and environments to achieve the long-term growth of the organization.
Starting with strengthening cooperation with our sites in North America and Europe, we are working to understand and quickly respond to trends in laws, regulations, and disclosure in each country. We are also striving to comprehensively understand and recognize various requests from face-to-face customers, in order to advance the sophistication of our sustainability initiatives. Furthermore, we will continue to incorporate broader perspectives and views through networking with other companies and direct dialogue with stakeholders, such as lectures led by outside experts.
Looking Ahead – Integrating Sustainability Strategy into Business Strategy
Sustainability is now an important management agenda. It is only with the commitment of top management that sustainability can be instilled within the company. In FY2023, we invited outside experts to hold several sessions for all executive officers, including the CEO, covering the themes of the latest global trends in sustainability and integration of sustainability with management and business strategy.
The social and market conditions surrounding JSR Group are changing on a daily basis. For this reason, it is essential to identify risks and opportunities in line with the current situation. We will regularly review our materiality and consider countermeasures to minimize risks surrounding our business. At the same time, we will create products and services that can have a positive impact and contribute to society through our strength of innovation, which will lead to new opportunities. To this end, it is essential to create an environment in which all employees can think independently about how to incorporate sustainability into their work. We will continue our sustainability activities with the aim of creating a state in which all employees believe that it is natural for business strategy and sustainability strategy to be integrated.