Message from Director in Charge of CSR
Our new medium-term management plan, which started from April 2021, sets forth two targets: The urgent issue of shifting to a profit structure resilient to environmental changes, and a medium- to long-term effort to balance social and economic value. While the timelines to achieving these two goals differ, there is a clear correlation between them. This is because, going forward, it will be essential that we reassess or rebuild those businesses that are either not in harmony with society, or that are deemed by society to be of no value. Meanwhile, there are growing opportunities for new business in areas where social and economic value overlap. With this understanding of today’s social conditions and our individual businesses, we are focusing on laying the groundwork to promote socially responsible management on a sustained basis.
As climate change problems come to the fore, and with the “new normal” brought about by the coronavirus pandemic, chemical manufacturers are being pressed to make a major shift. For the MGC Group, adapting to these changing times while fulfilling our social responsibilities in the areas of the environment and safety and working to stabilize our profit structure are constant challenges. Addressing these issues and continuing our pursuit of what makes MGC unique are not contradictory goals, but rather goals that we believe can be balanced. We will boldly execute an offensive approach to CSR over the next three years, bringing a unique perspective to social issues while demonstrating the value of our presence in growth areas such as carbon neutrality, next-generation telecommunications and the mobility revolution.
We define socially responsible management as aligning MGC’s activities with society’s path forward, while pursuing business profits based on our Group Mission of “creating value to share with society” and a keen awareness of our responsibilities vis-à-vis the environment, society and corporate governance. Several risk factors are apparent as we take an overhead view of conditions in and outside the Company along the lines of this definition. Examples include the appearance of low-cost alternative materials of unprecedented competitiveness; regulatory changes aimed at decarbonization and the increased cost of responding to those changes; and the broad impact of a decline in the working population. To control these risks, we are striving to create technology from a broader, more long-term perspective and maximize new business opportunities.
One promising business that can leverage the MGC Group’s unique technologies and experience, while also controlling management risks, is in solutions that boost achievement of carbon neutrality. Specifically, this applies to areas such as technology for manufacturing methanol and polycarbonates from CO2; new businesses in methanol and ammonia, which are gaining increased attention as hydrogen carriers; and the geothermal power generation business. By further developing and applying MGC’s unique, proprietary technologies, and refining our solutions to a level at which they can be implemented in society, we will embody our goal of “creating value to share with society.”
These are uncertain times in which unprecedented disruption is taking place in a wide range of industries. To adapt to this business environment, it is essential that we return to our philosophy for being, maintain a firm hold on our core competencies, and craft a sustainable growth strategy. The CSR Department is the leader in this effort, in a sense the section responsible for “conducting the orchestra.” Our goal is to look at the Group as a whole while remaining aware of the long-term timeline, encouraging change at the departmental and individual levels as we strive to become an excellent company with uniqueness and a strong presence.
Director, Managing Executive Officer
In charge of Compliance,
Responsible for Corporate Planning Division,
In charge of Internal Audit Division and CSR & IR Division
CSR Basic Policy
MGC instituted a CSR Basic Policy in February 2020 to promote socially responsible management on a Group-wide basis. MGC contributes to the realization of a sustainable society by acting sensibly in accord with the MGC Corporate Behavior Guidelines, likewise instituted in February 2020.
CSR Basic Policy
The MGC Group contributes to realizing a harmonious and sustainable society that keeps growing, in accordance with its vision of “Creating value to share with society.” The Group is deeply aware of its corporate responsibilities in the areas of the environment, society, and corporate governance and carries out its business activities in line with the MGC Corporate Behavior Guidelines.
CSR Promotion System
MGC promotes continuous improvement in socially responsible management through a Company-wide PDCA cycle. Toward this end, MGC has established a CSR Council and CSR Committee. The former is composed of directors and chaired by the President. The latter, an advisory body to the CSR Council, comprises corporate sector heads. Its meetings are convened by the General Manager of the CSR & IR Division.
The CSR Council deliberates and makes decisions on fundamental matters pertaining to CSR management, such as future CSR activities and identification of key issues (Materiality). It is also briefed on CSR initiatives’ implementation status, among other matters. The CSR Committee promotes effective CSR activities by monitoring the status of segmental CSR activities and conducting periodic reviews. In addition, it establishes various CSR Expert Committees on an as-needed basis to address specific CSR requirements/priorities.
MGC has established a CSR Department within its CSR & IR Division to serve as the CSR Council and CSR Committee’s administrative office. The CSR Department’s responsibilities include management of internal non-financial information, formulation of CSR-related policies and strategies, PDCA cycle promotion and materiality management. By stepping up efforts to organizationally contribute to the realization of a sustainable society through its operations, MGC aims to earn trust and goodwill from diverse stakeholders and grow its corporate value.
CSR Promotion System