Sustainability Management

Message from Director in Charge of Sustainability

photo: Director in Charge of Sustainability, Motoyasu Kitagawa
We will promote sustainability management from a medium- to long-term perspective, contributing to achieving carbon neutrality.
Sustainability Management

The Group's current medium-term management plan, Grow UP 2023, sets forth two targets: shifting to a profit structure resilient to environmental changes, and balancing social and economic value. While the timelines to achieving these two goals differ, there is a clear correlation between them, because we will eventually need to reassess or rebuild businesses that are either out of step with society or deemed by society to be of no value.  Meanwhile, there are growing opportunities for new business in areas where social and economic value overlap. The MGC Group aims to address social issues through business by continuing to provide creative products in target areas such as ICT/Mobility, Medicine and Food.

The industry as a whole has been forced to undergo a paradigm shift due to the issue of climate change, the COVID-19 pandemic, and the rise in raw material and fuel prices caused by the Ukraine crisis. The MGC Group must work to stabilize its revenue structure while flexibly adapting to such drastic and rapid changes in the environment and changes in the times. Adapting to changes in the environment and continuing our pursuit of what makes MGC unique are not contradictory goals, but rather goals that we believe can be balanced.

The MGC Group is a unique chemicals manufacturer, being one of the few worldwide able to combine energy and chemistry. In fact, we already possess multiple solutions able to contribute to carbon neutrality. To give some specific examples, we have developed technologies for manufacturing methanol and polycarbonates from CO2, and methods for utilizing methanol and ammonia, which are gaining increased attention as hydrogen carriers. Furthermore, we are also pursuing renewable energy solutions using geothermal power and biomass, and initiatives aimed at CCU and CCS. By further developing and applying the strengths of our technologies, and refining them to a level at which they can be implemented in society, we will embody the MGC Mission of “creating value to share with society.”

We have recently redefined sustainability as “a concept that aims to balance sustained growth of the Company and sustained development of society, based on the implementation and practice of CSR.” Based on this approach, through the Group's business activities we will more aggressively and proactively engage with a variety of issues facing society.

These are uncertain times referred to as VUCA, in which unprecedented disruption is taking place in a wide range of industries. In order to adapt to such changes in the environment in an agile and flexible manner, it is vital that we solidly maintain our core competencies while drawing up a strategy for sustained growth from a medium- to long-term perspective. The Sustainability Promotion Council and the Sustainability Promotion Committee are bodies that play a core role in the creation of this strategy, and going forward we intend to further enhance their activities.

The MGC Group will continue to aim to be an excellent company with uniqueness and presence built on chemistry, while constantly remaining aware of a long-term timeline. We sincerely appreciate the continued support and guidance of our stakeholders.

Motoyasu Kitagawa
Director, Managing Executive Officer
In charge of Compliance,
Responsible for Corporate Planning Division,
In charge of Internal Audit Division and CSR & IR Division
August 2022

Sustainability Promotion Principle

MGC instituted the Sustainability Promotion Principle to promote sustainability 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 Principles.

Sustainability Promotion Principle

The MGC Group contributes to realizing a harmonious and sustainable society that keeps growing, in accordance with its Mission 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 Principles.

Sustainability Promotion System

MGC promotes continuous improvement in sustainability management through a Company-wide PDCA cycle. Toward this end, MGC has established the Sustainability Promotion Council and Sustainability Promotion Committee. The former is composed of directors and chaired by the President. The latter, an advisory body to the Sustainability Promotion Council, comprises corporate sector heads. Its meetings are convened by the General Manager of the CSR & IR Division.

The Sustainability Promotion Council deliberates and makes decisions on fundamental matters pertaining to Sustainability management, such as future Sustainability promotion activities and identification of key issues (Materiality). It is also briefed on Sustainability initiatives’ implementation status, among other matters. Important matters to be deliberated at the Sustainability Promotion Council is resolved by the Board of Directors.
The Sustainability Promotion Committee promotes effective Sustainability promotion activities by monitoring the status of segmental Sustainability promotion activities and conducting periodic reviews. In addition, it establishes various Sustainability Promotion Expert Committees on an as-needed basis to address specific Sustainability requirements/priorities.

MGC has established a Sustainability Promotion Department within its CSR & IR Division to serve as the Sustainability Promotion Council and Sustainability Promotion Committee’s administrative office. The Sustainability Promotion Department’s responsibilities include management of internal non-financial information, formulation of sustainability-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.

Sustainability Promotion System
Figure: Sustainability promotion system with PDCA cycle