Key Issues (Materiality)
The MGC Group has identified key issues (Materiality) it needs to address to clearly demonstrate to stakeholders its commitment to contributing to the harmonious development of a sustainable society over the medium/long term through wide-ranging value creation rooted in chemistry.
The Materiality was drafted by a CSR Committee comprising corporate sector heads and deliberated and determined in March 2020 by a CSR Council composed of directors and chaired by MGC’s President. The issues are classified into four categories: creating shared value (CSV), foundation for shared-value creation (Society), harmonization of shared-value creation with environmental preservation (Environment) and value-creative discipline (Governance). Additionally, the material issues are tied to 17 Sustainable Development Goals (SDGs) and 169 targets in the aim of contributing to attainment of the SDGs and realization of a sustainable society.
Materiality and Main Initiatives
Pursuing Creation of Value to Share with Society
Contribution through business operations
- Contribute to development of ICT/mobility society
- Solve energy and climate change problems
- Solve medical and food problems
Why it is material
Pursuing creation of value to share with society leads to improvement in corporate value from economic, social and environmental standpoints.
MGC’s main initiatives
Helping to move society forward and solve problems through business operations, including by contributing to development of an ICT/mobility society with polycarbonates, polyacetal, super-pure hydrogen peroxide, electronic chemicals, optical polymers and semiconductor packaging materials (BT resin); solving energy and climate change problems with geothermal and LNG-fired power penetration projects and functional monomers; and solving medical and food problems with life science products (e.g., antibody drugs, fermented foods), oxygen absorbers and MX-Nylon
Cultivating a corporate culture of job satisfaction
Why it is material
An organizational culture that enables all employees to confidently give full play to their abilities over the long term while finding individualized meaning in their jobs is the foundation of corporate value creation.
MGC’s main initiatives
Promoting work-life balance; offering generous child/family care systems, creating dynamic workplace environments
Promotion of diversity and inclusion
Why it is material
A culture of collaboration among individuals with diverse values is conducive to new ideas and technological innovation.
MGC’s main initiatives
Providing more opportunities to women; supporting career advancement and work/life balance; promoting employment of individuals with disabilities
Stakeholder engagement
Why it is material
Corporate value creation is a result of stakeholders’ contributions, including the resources they provide.
MGC’s main initiatives
Disclosing information in compliance with laws and securities exchanges’ regulations; fairly and transparently disclosing information online and via news media
Promotion of socially responsible sourcing
Why it is material
Companies have a societal responsibility to upgrade CSR compliance throughout their supply chains with respect to the environment, working conditions, human rights, etc.
MGC’s main initiatives
Building safe, legally compliant and environmentally friendly supply chains
Occupational safety and health / Process safety and disaster prevention
Why it is material
Safety is the foundation of business activities. Companies have a societal duty to ensure safety.
MGC’s main initiatives
Continuing to conduct occupational safety and health risk assessments, daily safety activities and safety education/training in the aim of zero occupational injuries
Highly energy- and resource-efficient production
Why it is material
Companies have a duty to harmonize their operations with global environmental protection in accord with the principle of sustainable development.
MGC’s main initiatives
Minimizing environmental impacts in sourcing resources; efficiently using resources (energy, raw materials, water, etc.)
Chemical/product quality and safety assurance
Why it is material
Quality assurance is the basis of stakeholders’ trust. Companies have a duty to provide highly safe and reliable products and services.
MGC’s main initiatives
Promoting Company-wide quality assurance activities (Q-MGC) throughout supply chains
Promotion of innovative R&D
Why it is material
Developing valuable new products and technologies that help to move society forward and solve problems is the pursuit of creation of value to share with society.
MGC’s main initiatives
Developing/adopting new processes that maximally leverage core technologies cultivated over many years; founding and developing new businesses
Proactive response to environmental problems
- Air quality control
- Water and biodiversity conservation
- Reduction of industrial waste
Why it is material
Addressing environmental problems is imperative for all of humanity. Companies must proactively do so as a prerequisite for their existence and activities.
MGC’s main initiatives
- Formulating medium-term and annual RC* plans and endeavoring to achieve their targets
- Reducing GHG emissions while supporting the Task Force on Climate-related Financial Disclosures
* RC: Responsible Care
Strengthen systems
- Corporate governance
- Compliance
- Internal controls
- Risk management
Why it is material
Developing disciplined ways steadily execute strategies to bring business models to fruition and to sustainably grow corporate value.
MGC’s main initiatives
Building effective internal control systems based on appropriate corporate governance, ensuring the soundness of business activities through compliance, risk management, etc.
PDF175KB | Corporate Report 2020 P17-18)Materiality Determination Process
Step 1Identification of issues
Compiled list of over 600 terms related to societal issues/changes from various sources, including requirements in GRI and SASB standards, ISO 26000 and SDGs and trends among other companies.
Step 2Winnowing
Keywords related to social issues and social change were classified by theme and winnowed them down to 39 materiality.
Step 3Prioritization
Assessed the importance of materiality from the standpoint of both stakeholders and the MGC Group. The Sustainability Promotion Committee drafted a prioritized list of materiality and submitted it to the Sustainability Promotion Council.
Materiality Matrix
Step 4Management deliberation/approval
The materiality submitted by the Sustainability Promotion Committee was deliberated and determined by the Sustainability Promotion Council.
Step 5Updating of identified materiality
Materiality is subject to change in response to changes in societal imperatives and stakeholders’ needs and preferences. Materiality will accordingly be updated as needed in response to changes in society and/or the MGC Group’s business activities.
Materiality KPI
Creating Shared Value（CSV）
Contribution through business operations
Contribute to development of ICT/mobility society
Solve energy and climate change problems
Solve medical and food problems
Pursuit of the potential of chemistry and advancing a balance between social and economic value, achieving even greater corporate value.
| KPIs | Fiscal 2022 Results |
Fiscal 2023 Targets |
Fiscal 2030 Targets |
IIRC Capitals (International Integrated Reporting Council) |
Relationship to SDGs (Targets) |
|---|---|---|---|---|---|
| Sales from ICT and mobility applications |
283.5 bil. JPY | 320.0 bil. JPY | Create new businesses that accelerate digital innovation |
Financial Capital Capital generated through business activities or investments |
 3.6  9.4 |
| Contribution to solving energy and environmental problems |
Investment: 13.9 bil. JPY (Consolidated: 2021-2023 cumulative forecasts) Investment: Acquisition; Financing: Approval basis |
Investment: 12.0 bil. JPY (3-year cumulative) Investment: Acquisition; Financing: Approval basis |
Commercialize carbon-negative technology |
9.4 |
|
| Sales from medical and food applications |
56.2 bil. JPY | 50.0 bil. JPY |
|
3.8  12.3 |
Foundation for shared-value creation (S)
Cultivating a corporate culture of job satisfaction
Promoting work-life balance; offering generous child/family care systems, creating dynamic
workplace environments
| KPIs | Fiscal 2022 Results |
Fiscal 2023 Targets |
Fiscal 2030 Targets |
IIRC Capitals (International Integrated Reporting Council) |
Relationship to SDGs (Targets) |
|---|---|---|---|---|---|
| Percentage taking fewer than 10 days of annual paid leave*1,2 |
4% | 0% | 0% | Human Capital Individuals' capabilities, experience and drive for innovation |
8.5 |
Occupational safety and health / Process safety and disaster prevention
Continuing to conduct occupational safety and health risk assessments, daily safety activities and safety education/training in the aim of zero occupational injuries
| KPIs | Fiscal 2022 Results |
Fiscal 2023 Targets |
Fiscal 2030 Targets |
IIRC Capitals (International Integrated Reporting Council) |
Relationship to SDGs (Targets) |
|---|---|---|---|---|---|
| Serious occupational accidents*1,3 | 1 | 0 | 0 | Social and Relationship Capital Social license allowing an organization to engage in business |
3.9 |
| Serious accidents*1,4 | 0 | 0 | 0 |
Highly energy- and resource-efficient production
Minimizing environmental impacts in sourcing resources; efficiently using resources (energy, raw materials, water, etc.)
| KPIs | Fiscal 2022 Results |
Fiscal 2023 Targets |
Fiscal 2030 Targets |
IIRC Capitals (International Integrated Reporting Council) |
Relationship to SDGs (Targets) |
|---|---|---|---|---|---|
| GHG emissions intensity vs. Fiscal 2013*1 |
8.6% reduction |
19.9％ reduction |
28.0％ reduction |
Manufactured Capital Manufactured goods that can be used by the organization in the production of products or in service provision |
7.3 |
Promotion of innovative R&D
Developing/adopting new processes that maximally leverage core technologies cultivated over many years; founding and developing new businesses
| KPIs | Fiscal 2022 Results |
Fiscal 2023 Targets |
Fiscal 2030 Targets |
IIRC Capitals (International Integrated Reporting Council) |
Relationship to SDGs (Targets) |
|---|---|---|---|---|---|
| R&D investments devoted to solving climate change problems*1,5 | 13％ of R&D expenditures |
5% of R&D expenditures |
7% of R&D expenditures |
Intellectual Capital Organizational, knowledge-based intangible assets |
9.5 |
Harmonization of shared-value creation with environmental protection ( E )
Proactive response to environmental problems
Air quality control
Water and biodiversity conservation
Reduction of industrial waste
・Formulating medium-term and annual Responsible Care(RC) plans and endeavoring to achieve their
targets
・Reducing GHG emissions while supporting the Task Force on Climate-related Financial Disclosures
| KPIs | Fiscal 2022 Results |
Fiscal 2023 Targets |
Fiscal 2030 Targets |
IIRC Capitals (International Integrated Reporting Council) |
Relationship to SDGs (Targets) |
|---|---|---|---|---|---|
| GHG emissions vs. Fiscal 2013*1 |
34.0％ reduction |
28.0％ reduction |
36.0％ reduction |
Natural Capital All renewable and non-renewable environmental resources and processes that form the foundation of an organization's success |
 13.2 |
| Renewable energy as a percentage of electric power purchased*1 |
19％ | 10％ | 50％ |
7.2 |
|
| Zero waste emission rate*1,6 |
0.25％ | 0.3% or less | 0.15% or less |
12.5 |
＊1 On a non-consolidated basis
＊2 For employees granted 20 days of annual leave
＊3 Accidents resulting in lost work days eligible for disability compensation, including death and
permanent disability, or potential disability, with four or more lost work days
＊4 Accidents that threaten third parties, including those resulting in environmental pollution involving
the community or that cause damage to local residents, and other accidents involving serious
damage
＊5 R&D investments including basic research, pilot plants, technical testing, etc.
＊6 (Amount of final disposal) ÷ (total amount of industrial waste generated) × 100