Asahi Kasei's Group Philosophy and Sustainability Goals

The Asahi Kasei Group conducts corporate activities to provide new value to society by realizing its Group Vision of “living in health and comfort” and “harmony with the natural environment.” We aim to achieve two mutually reinforcing aspects of sustainability: contributing to sustainable society and sustainable growth of corporate value.

The Direction of Sustainability with a View Toward 2050 - Care for People, Care for Earth

As exemplified by the problems of climate change and aging of the population, Asahi Kasei’s commitment to “Care for People, Care for Earth” has become even more important.
Given this context, the Group will take on the following two challenges as we look toward 2050. From the perspective of “Care for Earth,” we aim to achieve a carbon-neutral and sustainable world, and from the perspective of “Care for People,” we aim to achieve active life in the new normal.

As we look ahead to 2050, we can expect to see a variety of social issues. We believe that we will be able to help resolve these issues while expanding our business opportunities.
For example, in terms of “Care for Earth” (achieving a carbon-neutral and sustainable world), we can contribute to electric vehicles, a hydrogen society, carbon recycling, and achieving a circular economy among other important subjects, primarily through our businesses in the Material sector with, battery materials, an alkaline water electrolysis system, CO₂ separation and recovery, recycling technology, and use of biomass, etc. We can also contribute in the Homes sector by supplying insulation materials and net zero energy homes (ZEH).

To achieve a carbon-neutral world, it is essential to reduce GHG emissions from our business activities. We have established the Asahi Kasei Group's Carbon Neutrality Policy and are working to achieve this goal.

• Note:For more information on policies and initiatives, see Climate Change.

In terms of “Care for People” (achieving active life in the new normal), we will contribute to the development of homes and communities that can withstand storm and flood damage and extreme heat as climate change progresses. We will also contribute through our health care and other businesses, with pharmaceuticals and medical devices, to help people live healthy and vibrant lives.

In addition to aiming to provide value to society through our two challenges, we will enhance the fundamental activities that support our business activities, such as corporate governance, compliance, respect for human rights, and safety and quality. Our group will also pursue our two sustainability goals of contributing to a sustainable society and sustainable growth of corporate value.

• Asahi Kasei Group's Materiality

Care for Earth - Achieving a Carbon-Neutral and Sustainable World

The Asahi Kasei Group is working to develop products and services in a wide range of fields from upstream to downstream in the value chain, including raw materials, manufacturing processes, energy, product use, and product recovery, with the aim of realizing a carbon-neutral sustainable world.

Initiatives for Achieving a Hydrogen-based Society

Significance of the initiatives	As a clean fuel and raw material, hydrogen is essential for achieving carbon neutrality
Our vision	Contribute to a hydrogen society and green hydrogen production centered on water electrolysis technology
Specific initiatives	Development and provision of large-scale alkaline water electrolysis system

Hydrogen, which has garnered attention as a fuel for automobiles and power generation, as a raw material for chemicals, and as a means of storing and transporting energy, is an essential substance to achieve carbon neutrality. While many countries around the world have announced their hydrogen strategies and as global expectations for hydrogen rise, we launched a 10 MW-scale alkaline water electrolysis system in Namie Town, Fukushima Prefecture in 2020, based on our knowledge of chlor-alkali electrolysis systems and electrochemistry as well as our technological development capabilities, to demonstrate the efficient production of hydrogen using renewable energy. We also signed a memorandum of understanding with Gentari Sdn. Bhd., a subsidiary of Petronas Group, and JGC Holdings Co., Ltd. for the basic design of a large 60 MW-scale alkaline water electrolysis system and chemical plant demonstration in Malaysia in November 2023. Furthermore, we completed a water electrolysis pilot test facility with four water electrolysis modules integrated in parallel at our Kawasaki Works in March 2024. As well as developing a large 100 MW-scale water electrolysis system that is in demand around the world, we are also working with JGC Holdings Co., Ltd. to establish technology for integrated control of green chemical plants that use hydrogen produced by the water electrolysis system. Our aim is for early commercialization through collaboration with partner companies up and down the supply chain and through participation in projects around the world.

• Aqualyzer™ large-scale alkaline water electrolyzer

Producing Chemicals using CO₂

Significance of the initiatives	CO2 recycling is an important element of a sustainable society
Our vision	Practical application of CO2 chemistry in addition to polycarbonate
Specific initiatives	Production of functional specialty chemicals based on carbonyl group introduction technology

We are also focusing on CO₂ chemistry, which enables the production of chemical products using CO₂ as a raw material.
In the area of polycarbonate production technology, the EC process has been used in practical applications and is being licensed around the world. The DRC process, which is a further refinement of the EC process, has already been demonstrated as viable and is attracting attention as a technology that enables production regardless of the location of petrochemical plants. We are also developing a technology to produce isocyanate (raw material for polyurethane) from CO₂. We have also started to use the EC process as a basis for the production of electrolyte materials for LIBs (lithium-ion batteries), which will become even more essential in society going forward. With regard to CO₂ separation and recovery, we are developing a system that uses our catalyst technology to efficiently separate and recover CO₂ from power plant and factory exhaust gas using a special zeolite (a type of mineral) with a precisely controlled pore structure.

Deploying technologies, products, and services to Achieve a Circular Economy

Significance of the initiatives	Promoting sustainable resource usage is essential for decarbonization
Our vision	Development and practical application of technologies and infrastructures that have become bottlenecks in achieving the circular economy
Specific initiatives	"BLUE Plastics" Project

In an age when global environmental conservation is a major concern, resource recycling and the use of recycled plastics are being promoted as ways to recycle plastic waste as resources to supply highly convenient products while being considerate of the environment.
However, until now, it has been difficult to prove the recycling chain for products made from recycled plastic and the recycling rate of materials.
We are developing a digital platform based on our belief that, to make a resource-recycling society a reality, it is necessary to visualize the recycling chain of recycled plastics to create an environment in which people can use them with confidence. The social issue of balancing resource recycling with convenience is difficult to solve through the efforts of individual companies alone, so we aim to create a widely accessible platform that can be used by a broad range of people, from every kind of company involved in the recycling chain to consumers.

• Initiative for Achieving a Circular Economy

Manufacture of Basic Chemicals from Bioethanol

Significance of the initiatives	Reducing the use of fossil resources and CO2 emissions, making non-recyclable materials sustainable
Our vision	Contribute to the production of chemical products that do not rely on fossil resources through the practical application of technology in society
Specific initiatives	Manufacturing basic chemicals* from bioethanol

• ^* Ethylene, propylene, C4, benzene, toluene, xylene

Despite the 3R (reduce, reuse, recycle) efforts currently underway in various countries, not all materials are suitable for recycling. There are a variety of materials that are technically difficult to recycle and those that are difficult to recover, and there are materials that can be recovered but are difficult to separate. In addition to the 3Rs, if we increase the use of biomass-derived plastics, the use of fossil resources can be reduced, and further CO₂ reduction effects can be expected.
We are currently developing new technology to produce basic chemicals from bioethanol by applying the catalyst and process technology cultivated in our petrochemical business. Conventionally, it is possible to produce ethylene from ethanol through catalytic dehydration. If commercialized, our new technology will enable the production not only of ethylene, but also light olefins such as propylene, and aromatics such as benzene, toluene, and xylene, in a single plant. This will make it possible to manufacture many daily necessities from biomass raw materials, including products that have been considered difficult to manufacture using non-petroleum resources.

• Technology for Producing Basic Chemicals from Bioethanol

Care for People - Active Life in the New Normal

Achieving Healthy Longevity in an Era of Centenarians

Significance of the initiatives	Responding to health-related lifestyle issues that are increasing due to the declining birthrate and aging population
Our vision	Provide homes and services according to changes in health and family circumstances
Specific initiatives	Providing secure apartment buildings for senior citizens and homes with services for senior citizens

This is an era where people often live into their hundreds. As senior citizens’ values with regard to homes become more diverse, the Group provides optimal homes based on their level of health.
There is the “healthy” period, when people are active and healthy; the “frail” period, when people’s minds, bodies, and social skills decline; and the “need care” period, when people need support. Each stage requires a different type of home.
For “healthy to frail” seniors, we offer “Hebel Village”, safe rental accommodation for seniors that provides a fun, comfortable and safe lifestyle for many years to come, and for seniors who require “nursing care”, we offer “Village Riche”, a serviced senior housing facility that provides respectful nursing care.
As “Hebel Village” is meant for senior residents ranging from healthy to frail, this is an operation that requires less human resources with staff not stationed permanently onsite. In addition to a design that factors in safety and security, such as monitoring of equipment, we focus on healthy behavior in daily life (amount of activity, meals, social interction) that aim to help residents maintain a long healthy life. The facility received a 2023 Good Design Award for its efforts in helping residents to make their own daily lifestyle choices, such as going out freely, enjoying meals, and interacting with other residents, and for regular visits by counselors, who encourage such healthy behavior. We will continue to help address labor shortages caused by a low birthrate and aging society and create a society of “healthy longevity” by providing homes for people to have fulfilling and healthy lives into their elderly years.

Contributing to the Resolution of Unmet Medical Needs

Significance of the initiatives	Responding to unresolved health-related medical issues that are increasing due to the aging population, etc.
Our vision	Provide superior products and services globally
Specific initiatives	Pharmaceuticals, bioprocess products and services, and medical devices

As health-related issues are becoming more common due to the aging of the population and other factors, we believe that addressing unmet medical needs will become ever more vital. Asahi Kasei is involved in both pharmaceuticals and medical devices, and aims to provide superior products and services throughout the world.
In the pharmaceutical businesses, we will work to introduce new drugs in specialty areas such as orthopedics and emergency medicine in Japan, and immunology and transplantation globally.
In the life science businesses, We will contribute to improving the safety and productivity of drug formulations in the bioprocess field by providing virus removal filters and CRO¹/CDMO² services.
In the critical care businesses, we will also focus efforts on marketing innovative medical devices in the area of serious cardiopulmonary­ related diseases.

• ¹Biosafety testing contract research organization
• ²Next-generation antibody drug contract development and manufacturing organization

Related information

• Medium-term Management Plan

We will strive to further improve our corporate value through the implementation of our medium-term management plan.