Change in Scope of Application of the Environmental Management System

Shindengen’s Asaka Office opened in April 2021. We consolidated the R&D, business operation, and head office functions in the Asaka Office and closed the Hanno Factory, thereby revising the scope of application of the environmental management system. The Shindengen Group’s environmental management system was constructed with a scope of application encompassing Shindengen’s Hanno Factory and main production companies in Japan, but this was changed in February 2022 from Shindengen’s Hanno Factory to its Asaka Office, and the scope of application came to include head office functions.

Creating a System for Environmental Vision 2050

We reorganized the Energy Conservation Committee, which had been under the Environment Committee, in April 2022 to establish the Decarbonization and Energy Conservation Committee as an organization to promote the Shindengen Group’s Environmental Vision 2050 and FY 2030 environmental targets. The Decarbonization and Energy Conservation Committee comprises environment-related departments, operating departments, and Group companies. In addition to Shindengen’s environmental management division, the corporate planning division and CSR divisions now serve also as its secretariats. In this way, the committee functions as a system that cuts across everything from top management down to the front lines.

Environmental Education

At the Shindengen Group, we are committed to increasing environmental awareness amongst our employees. For new hires, we provide simple explanations of ISO 14001 and the SDGs; provide education on the relationship between our business activities and environmental laws and regulations, our internal rules to ensure compliance with environmental laws and regulations, and the importance of complying with environmental laws and regulations; and raise awareness about the interconnectedness of the environment and our operations. Furthermore, we provide employee education on environmental laws and regulations in a systematic manner, believing that the awareness of each employee significantly affects the success of our compliance with these laws.
After consolidating its R&D, business operation, and head office functions in the Asaka Office, which opened in April 2021, Shindengen was able to update its registration in February 2022 without any hinderance by holding briefings related to the environmental management system for divisions responsible for head office functions, which are now included in the system’s scope of application. Such training is aimed not only at increasing general environmental awareness, but also on developing a workplace culture that recognizes what it means to be an environmentally conscious corporate citizen.

Environmental Objectives and Targets

At the Shindengen Group, we set environmental goals based on our environmental policies and have implemented initiatives that alleviate environmental problems.

The shindengen Group Domestic Companies:Environmental Objectives and Targets with Key Results
(FY 2021)

Objective	Target	Result
Promote chemical substance managemen Contribute to environmental protection efforts through the proper management of chemical substance information	Strictly manage information on substances contained in chemical products used in our business activities	Achieved the target by making chemical substance reporting more convenient and manageable through the creation of a format that can aggregate the annual usage amounts of each chemical substance Confirmed that this function is can be used for reporting under the Law concerning Pollutant Release and Transfer Register
Promote energy conservation Help to curb global warming and to solve issues related to climate change through efficient energy use and activities to control CO2 emissions	Improve Groupwide energy intensity by at least 27.03% by the end of FY 2021 compared with FY 2012 (improve energy intensity by an annual average of at least 1% from the FY 2018 industry results)	Improved 27.62% compared with the benchmark year and achieved our goal
Promote proper waste management Strengthen the system for reducing risk associated with waste	Decide on and adopt goals and indicators for each company’s issues	Achieved most of our targets in FY 2021 by identifying issues for each Group company and working toward targets Determined that we were able to resolve most risks related to issues outlined by Group companies The Shindengen Group Domestic Companies

The shindengen Group Domestic Companies:Environmental Objectives and Targets (FY 2022)

Objective	Target
Promote chemical substance management Contribute to environmental protection efforts through the proper management of chemical substance information	In preparation for the enforcement of the amended Law concerning Pollutant Release and Transfer Register, reorganize the information subject to change in accordance with the amendments and reflect the changes in the internal system.
Promoting decarbonization and energy conservation measures Help solve climate change problems and mitigate global warming by working to reduce total CO2 and make energy use more efficient in consideration of the value chain for the entire busines	Target 1 Improve energy intensity by at least 1.99% by the end of FY 2022 compared with FY 2020 throughout the entire Group in Japan Note: 9.56% by the end of FY 2030 compared with FY 2020  Target 2 Establish medium-term action plans and implementation systems to reduce absolute CO2 emissions during production throughout the entire Group in Japan 46% or more compared with FY 2013 by the end of FY 2030
Promote proper waste management Strengthen the system for reducing risk from waste	Build operations to replace plastics and create a system to continually suppress plastic use