Risks and Opportunities

Risks

• Fall in share price due to decrease in future value
• Decrease in demand for products due to changes in market needs
• Shift in share of low-cost alternative materials
• Existing product obsolescence

Opportunities

• Creation of new markets through diversification of market needs
• Customer credibility backed by multiple industry standards
• Expansion of portfolio of distinctive, differentiated products

Risks

• Delay in achievement of a more resilient business portfolio
• Failure to achieve carbon neutrality due to delay in business creation
• Delay in creation of new products and businesses due to reduced competitiveness in R&D

Opportunities

• Promotion of a more resilient business portfolio
• Creation of new markets through establishment of environmental solution businesses
• Creation of new products and businesses through use of DX technology

Risks

• Increase in risk of abnormal weather and natural disasters due to climate change
• Reputational risks regarding environmental protection

Opportunities

• Development of CCUS (particularly CCS) and CO₂-based methanol and polycarbonate businesses, and development of chemicals that use CO₂
• Commercial development of ammonia as a hydrogen carrier and CO₂-free fuel

Risks

• Decline in competitive advantage due to delays in technological response to resource and energy conservation needs

Opportunities

• Acquisition and cross-company deployment of energy-saving technologies
• Advancement in utilization of digital technologies

Risks

• Declines in labor productivity and corporate value (economic and social value) due to outflow of personnel

Opportunities

• Strengthened foundation for creating innovation
• Improved employee engagement

Risks

• Uniform thinking and loss of new business opportunities due to imbalance in personnel attributes and skills

Opportunities

• Nurturing of a culture of collaboration incorporating diverse values that is conducive to new ideas and technological innovation

Risks

• Boycotts on purchasing products and services due to human rights infringement
• Decline in evaluation as a recipient of investment
• Potential for elimination as an investment candidate or withdrawal of investment

Opportunities

• Contribution to realization of a sustainable economy and society
• Maintenance and securing of trust from society
• Maintenance and increase in corporate value
• Recruitment and retention of talented human resources

Risks

• Recurrence of similar disasters and problems
• Loss of societal trust due to accidents or scandals

Opportunities

• Nurturing of a culture of safety
• Accumulation of expertise in preventive maintenance

Risks

• Loss of business opportunities due to non-compliance with chemical regulations in each country
• Loss of societal trust due to inaccurate data handling and shipping of inappropriate products

Opportunities

• Enhancement of business profitability through proper compliance with laws and regulations
• Enhancement of customer satisfaction and societal trust in the entire Company and Group companies

Risks

• Negative impacts on business activity due to illegal actions and compliance violations by suppliers

Opportunities

• Improved sustainability of society and long-term competitiveness

Risks

• Slumping business activity, loss of societal trust and damage to corporate value

Opportunities

• Establishment of a stable management foundation by improving decision-making transparency and responding appropriately to change
• Gaining of stakeholder trust