Tokuyama Group Sustainability Principles

Based on chemistry, Tokuyama's mission is to create a bright future in harmony with the environment in collaboration with its customers. In order to fulfill this mission, we have established the following principles on the promotion of sustainability.

1. We ensure that all of our business activities help solve social issues and contribute to a sustainable future.

2. We respect human rights, individuality, and diversity, and we strive to deliver job satisfaction for our employees and business partners by implementing human resources development and health management.

3. We practice thorough compliance and conduct transparent business activities in good faith.

4. We always give top priority to safety, and we work hard to prevent accidents and ensure occupational health and safety.

5. We operate in harmony with the global environment by striving to combat global warming and protect biodiversity.

6. We deliver products and services that meet the needs of customers and consumers and provide them with peace of mind.

7. We contribute to local communities by acting as a good corporate citizen in the countries and regions in which we operate.

8. We maintain good communication with all of our diverse stakeholders.

Established April 1, 2023

Tokuyama Group Code of Conduct

Tokuyama's Vision and Sustainability Initiatives

Promoting CSR management is one of the high-profile issues in Medium-Term Management Plan 2025. First, we must clearly state our fundamental approach and views on sustainability, so we recently established the Tokuyama Group Sustainability Principles showing what our company is supposed to be based on Tokuyama's vision. By inculcating these principles into officers and employees' behavior, we revised the Tokuyama Group Code of Conduct. As it has been more than 10 years since the Code of Conduct was last revised, we updated the code to address value creation, diversified working styles, climate change mitigation, reflecting a recent trend for ESG (environmental, social, and governance) as well as requests from society. Detailed descriptions of action guidelines are included for the related principles and policies, which have also been organized and systematized.

For example, for one new policy that addresses respect for human rights, we established the Tokuyama Group Human Rights Policy, which was influenced by the UN Guiding Principles on Business and Human Rights.
To distribute information on these policies, Group company CSR caravans encourage Group-wide understanding and sharing, under the theme of "promoting sustainability centered on Group management." We also began e-learning programs to raise awareness of the Tokuyama Group Human Rights Policy.
In addition, KPIs for Materiality (key CSR issues), which are the foundation for growth, are determined and monitored by the CSR Promotion Council in order to strengthen our initiatives. From FY2023, we will clarify the responsibilities of all executive officers for addressing materiality, and reflect the progress made in their remuneration for the following fiscal year.

Approach to SDGs

The Tokuyama Group is committed to contributing to the achievement of the Sustainable Development Goals (SDGs) adopted by the United Nations General Assembly in September 2015. The Group verifies that its products and business activities are in alignment with the SDGs in the conduct of its business. The Tokuyama Group will continue to pursue R&D with a view to contributing to the SDGs, seeking to be of value to society and remain the choice of customers.

United Nations Global Compact

Tokuyama Corporation has signed the United Nations Global Compact (UNGC). The UNGC is a voluntary effort by corporations and organizations to help build a global framework for sustainable growth. Signatories to the UNGC commit to responsible, creative leadership and actions befitting good members of society. Through their participation, the top management of signatory companies commit themselves to take action and to respond to calls aimed at achieving 10 principles across the four broad areas of human rights, labor, the environment and anti-corruption.

Guided by its raison d'être, "centered on the field of chemistry, the Tokuyama Group will continue to create value that enhances peopleʼs lives," Tokuyama has continued to strengthen its ESG management and to engage in positive activities designed to achieve sustainable development goals in a bid to ensure sustainable growth. Taking this opportunity to participate in the UNGC, the Tokuyama Group as a whole will redouble its efforts to engage in a higher level of ESG management and to help resolve a host of social issues.

The Ten Principles of the UN Global Compact

Human Rights Principle 1
Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2
make sure that they are not complicit in human rights abuses.
Labour Principle 3
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4
the elimination of all forms of forced and compulsory labour;
Principle 5
the effective abolition of child labour; and
Principle 6
the elimination of discrimination in respect of employment and occupation.
Environment Principle 7
Businesses should support a precautionary approach to environmental challenges;
Principle 8
undertake initiatives to promote greater environmental responsibility; and
Principle 9
encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption Principle 10
Businesses should work against corruption in all its forms, including extortion and bribery.