SASB Standards

The relevant achievements of the MGC have been noted based on Chemicals, an industry standard put forth by the Sustainability Accounting Standards Board (SASB).The SASB is a non-profit organization that creates disclosure standards for ESG elements that are expected to high substantial financial impact in the future with the aim of contributing to enhancing the quality of corporate disclosure and investor decision making from a medium- to long-term perspective.

Environmental Protection

Greenhouse Gas Emissions

Accounting Metric Code Disclosure
(1)Gross global Scope 1 emissions,
(2)percentage covered under emissions-limiting regulations		 RT-CH-110a.1
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets RT-CH-110a.2

Air Quality

Accounting Metric Code Disclosure
Air emissions of the following pollutants: (1)NOX (excluding N2O), (2) SOX, (3) volatile organic compounds (VOCs), and (4) hazardous air pollutants (HAPs) RT-CH-120a.1

Energy Management

Accounting Metric Code Disclosure
(1) Total energy consumed,
(2) percentage grid electricity,
(3) percentage renewable,
(4) total self-generated energy		 RT-CH-130a.1

Water Management

Accounting Metric Code Disclosure
(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress RT-CH-140a.1
Number of incidents of non-compliance associated with water quality permits, standards, and regulations RT-CH-140a.2 Not applicable
Description of water management risks and discussion of strategies and practices to mitigate those risks RT-CH-140a.3

Hazardous Waste Management

Accounting Metric Code Disclosure
Amount of hazardous waste generated, percentage recycled RT-CH-150a.1

Community Relations

Accounting Metric Code Disclosure
Discussion of engagement processes to manage risks and opportunities associated with community interests RT-CH-210a.1 To further local community nderstanding of our environmental conservation and process safety activities, we continue to participate in local dialogue meetings held by the Japan Chemical Industry Association (JCIA).
In addition, we are working with local communities to promote safety and disaster preparedness through joint drills with fire departments and through other means.

Occupational Health and Safety and Chemical Substance Management

Workforce Health & Safety

Accounting Metric Code Disclosure
(1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b) contract employees RT-CH-320a.1
Description of efforts to assess, monitor, and reduce exposure of employees and contract workers to long-term (chronic) health risks RT-CH-320a.2 Based on our Safety Philosophy that “ensuring safety is the top priority of our business activities,” MGC formulated
a Safety Code of Conduct and takes active measures to achieve zero accidents and zero occupational injuries.
We established LINK as a company-wide organization to address occupational health and safety as well as process safety and disaster prevention, and we are implementing and reinforcing measures.

Product Design for Use-phase Efficiency

Accounting Metric Code Disclosure
Revenue from product design for use-phase resource efficiency RT-CH-410a.1 —

Safety & Environmental Stewardship of Chemicals

Accounting Metric Code Disclosure

(1) Percentage of products that contain Globally Harmonized System of Classification and Labeling of Chemicals (GHS) Category 1 and 2 Health and Environmental Hazardous Substances
※Percentage (%)by revenue

(2) percentage of such products that have undergone a hazard assessment
※Percentage（％）

 RT-CH-410b.1 —
Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with reduced human and/or environmental impact RT-CH-410b.2 At MGC, we conduct basic surveys and safety assessments at the product development stage. When products correspond to new chemical substances, we first conduct safety testing and then classify the products according to whether they do or do not come under applicable regulations, as well as according to their degree of hazard under standards such as GHS, before preparing safety information such as safety data sheets (SDSs). Based on these, we perform risk assessments (based on hazards of the substances themselves and hazards related to exposure) for every stage of a product, from manufacture to disposal. Products are offered once this screening is complete.
We also hold seminars to our employees annually on how to prevent accidents involving our products, which helps
to raise awareness of safety in product handling.

Genetically Modified Organisms

Accounting Metric Code Disclosure

Percentage of products by revenue that contain genetically modified organisms (GMOs)
※Percentage (%) by revenue

 RT-CH-410c.1 Not applicable

Management of the Legal & Regulatory Environment

Accounting Metric Code Disclosure

Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social factors affecting the industry

 RT-CH-530a.1 MGC Group handles hazardous chemical substances including toxic and deleterious substances, hazardous materials, and high-pressure gas as part of its business and is subject to various legal restrictions, both in Japan and overseas, at each stage, including manufacturing, storage, distribution, and sale. In addition, with rising environmental awareness worldwide regarding issues including climate change and marine plastic, regulations as well as societal demands concerning chemical substances and waste materials including greenhouse gases are becoming increasingly stringent.
In addition to these environmental issues, the Group’s operating results and financial condition could be adversely affected by criminal, civil, and administrative liability, remediation costs, social sanction, and loss of credibility due to the failure of MGC Group to comply with legal regulations and social norms.

Operational Safety, Emergency Preparedness & Response

Accounting Metric Code Disclosure
Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate (PSTIR), and Process Safety Incident Severity Rate (PSISR) RT-CH-540a.1
Number of transport incidents RT-CH-540a.2 Not applicable