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Governance and CSR Management

Our Approach to CSR

Hitachi Chemical's Value Creation and Materiality

Strategy Development Process

Backcasting from our “where we want to be in ten years’ time”
In fiscal year 2015, as a first step towards the next 50 years, we outlined our “where we want to be in ten years’ time” and settled on the 10-year Strategy to implement it. Backcasting from there, we formulated our 2018 Medium-term Management Plan. We regularly conduct gap management on the progress of this three-year medium-term management plan and review the annual plan. We also conduct materiality analysis every three years and reflect it in our medium-term management plan.

2012

Creation of Management Message Looks to the Future
In 2012, at the 50th anniversary of Hitachi Chemical, we held a communication workshop in which the entire Group workforce could participate, in order to encourage all employees to participate in management. We summarized “What will Hitachi Chemical be aiming for over the next 50 years and how will it face up to those aims?” in the form of Management Message Looks to the Future and shared it with all employees.

2013

Formulation of Hitachi Chemical Group Vision and Launch of WOW-BB Activities
In order to fulfill the Management Message Looks to the Future, we further engaged in a series of discussions in fiscal year 2013, and as a result, reviewed the existing Hitachi Chemical Group Vision and established the Hitachi Chemical Group Identity comprised of our Mission, Values and the Hitachi Chemical Group Vision.

We also launched Working On Wonders Beyond Boundaries (WOW-BB) activities in fiscal year 2013 toward making the Hitachi Chemical Group Vision a reality. WOW-BB activities consist of two pillars: the WOW Global Awards; and the 10-year Strategy.

2015

Formulation of 10-year Strategy and 2018 Medium-term Management Plan
In fiscal year 2015, in order to realize the Hitachi Chemical Group Vision, we conceived a hypothetical future with a long-term outlook in our “where we want to be in ten years’ time,” and then formulated the 10-year Strategy for its actualization. By defining “Improve Quality of Life (QOL)” and “Realize Sustainable Environment” as the “values” to be realized by Hitachi Chemical through its businesses, we are seeking growth that is not just an extension of our traditional operations.

Backcasting from the time at which the 10-year Strategy would have been fulfilled, our destination in three years’ time is presented in our 2018 Medium-term Management Plan. We will endeavor to create value by strengthening our global business and management base. We are also making efforts in the field of environmental, social and governance (ESG) activities by setting quantitative targets for CO2 emissions and female managerial positions.

Materiality Analysis

Hitachi Chemical’s Materiality
Hitachi Chemical conducts materiality analysis based on which priorities are identified and utilized in management. In conjunction with the formulation of the 2018 Medium-term Management Plan, we performed a materiality review in accordance with the following steps in fiscal year 2015. We plan to conduct materiality analysis again in fiscal year 2017, for the next medium-term management plan.

Step 1 Issue identification

Analyze ESG trends both domestically and abroad, and identify key issues relevant to our business strategy
Assessment of identified issues by external experts

Step 2 Priority evaluation by Executive officers*1

Executive Officers’ evaluation of importance of issues assessed in Step 1 from the view of the Company*2 and stakeholders*3
Prioritize issues utilizing the materiality matrix on the right
*1:
The target evaluation period has been established in conjunction with the 2018 Medium-term Management Plan.
*2:
The X axis represents importance to business and includes increased revenue and operating income, enhancement of global business, and strengthening of the management base.
*3:
The Y axis represents importance to stakeholders and includes shareholders, investors, customers, clients, suppliers, employees, local communities, the global environment, and government/public administration.

Step 3 Management team approval

Executive Officers at the level of Vice President and above, as well as Executive Officers in charge of management strategies and finance, attend a management strategy meeting to approve the priority issues.

1 Creating new businesses and products
2 Augmenting global business expansion
3 Resolving customer and social issues by strengthening marketing capabilities
4 Development of technologies and products that help resolve social issues
5 Swift decision-making and resolution of customer issues by promoting localization
6 Implementation of strategic alliances and M&A
7 Reforms toward Niche and Cluster business models
8 Strengthening material technology capabilities
9 Improving productivity
10 Improving synergy effects
11 Strengthening supply chain management
12 Diversified global human resources management
13 Promoting open innovation
14 Cultivating compliance awareness
15 Pursuing customer satisfaction
16 Strengthening quality management
17 Business continuity management (BCM)
18 Promotion of bold “WOW-BB activities” with an eye to the medium and long term
19 Development and provision of safe, easy-to-use products
20 Providing accurate product and service information
21 Promotion of intellectual property strategies
22 Raise management quality to align with global expectations
23 Environmental concerns associated with manufacturing
24 Strengthening corporate governance
25 Improving management transparency through appropriate information disclosure
26 Interactive communication with stakeholders
27 Ensure fair competitive conditions for procurement and fair supplier partnerships
28 Strengthening and promotion of sustainable engineering
29 Thoroughness of customer information management
30 Resolving societal problems through strategic social action programs
31 Actualizing fair and impartial employment opportunities and working conditions
32 Occupational health and safety management
33 Prevention of global warming
34 Recycling resources
35 Building medium- to long-term relationships with the local community
36 Preserving local ecosystems

Value Creation Process

To realize the Hitachi Chemical Group Vision, Hitachi Chemical is refining its core competencies and creating a wide range of technologies. Driven by this, we will implement “Working On Wonders” through our four businesses and provide value to stakeholders in terms of “Improve Quality of Life (QOL)” and “Realize Sustainable Environment.”

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