In 2021, to further promote initiatives aimed at making a sustainable society a reality, we established the Asahi Kasei Group Sustainability Policy.

Asahi Kasei Group Sustainability Policy

• Asahi Kasei Group Sustainability Policy

Our Group Mission is "contributing to life and living for people around the world," and we have grown by continually contributing to solutions for society. Our commitment has remained constant ever since our founding with the aim of improving people’s standard of living.
Today, discussions about achieving sustainability are taking place around the world. Since sustainability is a challenge that concerns people and the global environment, we believe that the pursuit of "living in health and comfort" and "harmony with the natural environment" as set forth in our Group Vision will lead to sustainability.
"Sustainable growth of corporate value" in conjunction with "contributing to sustainable society" is also important. "Contributing to sustainable society" leads to earnings which enhance the corporate value of the Asahi Kasei Group, which in turn enables further "contributing to sustainable society."

To make this virtuous cycle a reality, we will strive to create value by contributing to a sustainable society, conduct our business activities in a responsible manner, and promote the empowerment of our employees based on our approach of “Care for People, Care for Earth.”
Our ultimate aim is to continue to proactively contribute to the world as a leader in solving challenges for society, carrying on the commitment we have had since the founding of our company.

Management Framework

The Asahi Kasei Group considers sustainability to be an important focus of management and incorporates it into both its medium-term and annual management plans, in addition to discussing it at Board of Directors meetings. We have also established a Sustainability Committee to promote sustainability group-wide.
The Sustainability Committee consists of the President, Executive Officers for Business Sectors, and the Executive Officer for Technology Functions, and is responsible for disseminating information, orienting sustainability-related activities, and so on. The Sustainability Committee coordinates with the Risk Management & Compliance Committee and the ESH & QA Committee, which handle more technical and specific matters.
All three of these committees are chaired by the President of Asahi Kasei. Our Global Environment Committee holds specialized discussions on global environmental measures as a subcommittee of the Sustainability Committee.

Asahi Kasei Group effort for the SDGs

Transforming our world: the 2030 Agenda for Sustainable Development was adopted by the UN Sustainable Development Summit in September 2015. The agenda includes 17 Sustainable Development Goals (SDGs) and 169 targets such as ending poverty and inequality, and taking action on climate change.
Through its diverse array of businesses and technologies, the Asahi Kasei Group contributes to achievement of the SDGs in accordance with the Group Vision of providing new value to society by enabling "living in health and comfort" and "harmony with the natural environment"

Asahi Kasei Group's Materiality

In fiscal 2017 we designated the priority issues and subjects to address as the materiality of the Asahi Kasei Group. We revised our materiality in May 2021 amidst the worsening climate crisis and the acceleration of domestic and international sustainability-related trends. We added "Initiatives toward Carbon Neutrality" and "Initiatives toward a Circular Economy" as matters of the highest importance.

Identifying Our Materiality

• 1. Identifying Issues
  We referred to international guidelines including ISO 26000 and the GRI Standards, as well as the evaluation items used by major ESG evaluation organizations (FTSE, etc.), to identify issues according to the demands of societies and our mission, vision, and values.
• 2. Determining the Impact
  We assessed the level of impact on both society and our Group and mapped it onto two axes.
• 3. Evaluating Validity
  We confirmed the validity of the plan by examining it from a variety of perspectives, such as through deliberations among divisional managers, discussions with other companies, and interviews with outside directors.
• 4. Deliberation and Approval
  After deliberation by the Management Council, the proposal was approved by the Board of Directors.

The relationships between this materiality and the sustainable development goals (SDGs) are shown in the following table. We will continue to advance our initiatives while incorporating the perspectives of various stakeholders.

Materiality List

• * Contribution through business

Participation in initiatives (major initiatives)

Global Compact	The Asahi Kasei Group supports the United Nations Global Compact. UN Global Compact
Business Call to Action (BCtA), a multilateral alliance led by the United	Nations Development Programme (UNDP), challenges companies to advance core business activities that contribute to the achievement of the Sustainable Development Goals (SDGs). Asahi Kasei joined with an initiative to support the fiber industry in India through the creation of a comprehensive value chain for Bemberg™ cupro. Business Call to Action
Clean Ocean Material Alliance (CLOMA)	The Clean Ocean Material Alliance (CLOMA) is a platform established to accelerate innovation by strengthening collaboration among a wide range of stakeholders across industry sectors amid a need to implement worldwide initiatives to overcome the marine plastic litter problem, a global-scale challenge. Clean Ocean Material Alliance
Battery Association for Supply Chain (BASC)	The Battery Association for Supply Chain (BASC), established as a general incorporated association on April 1, 2021, is an organization engaged in activities such as the international standardization of the battery supply chain (industries related to battery materials, components, and raw materials) and the creation of a battery ecosystem, with the aim of achieving a decarbonized society. BASC
White Logistics Movement	The White Logistics Movement is aimed at ensuring stability in logistics needed for people's daily lives and industrial activity and contributing to economic growth in response to the truck driver shortage, which continues to intensify. The Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry and Fisheries are the advocates of the movement. Asahi Kasei has made a statement of voluntary action endorsing the movement and is working to improve logistics. White Logistics Movement
Challenge Net Zero Carbon Innovation (Challenge Zero)	Challenge Zero is an initiative promoted by the Japan Business Federation (Keidanren) in coordination with the Japanese government to support companies and groups in their efforts to achieve a decarbonized society. Asahi Kasei supports this initiative and has announced specific efforts and policies: Challenge Zero
RE100	RE100 is an international collaborative initiative consisting of companies committed to running their business operations on 100% renewable energy. Asahi Kasei Homes is a member of this initiative, and it has announced specific targets and is working to achieve them. RE100
Keidanren Biodiversity Declaration Initiative	The Keidanren Biodiversity Declaration Initiative is a support effort by the Japan Business Federation (Keidanren) to promote autonomous, active efforts by companies to partake in biodiversity preservation activities, with the aim of achieving harmony between the environment and the economy. Asahi Kasei supports this initiative and has announced specific efforts and policies: Keidanren Biodiversity Declaration Initiative
Pinfa (Phosphorus, Inorganic & Nitrogen Flame Retardants Association)	Through Asahi Kasei Europe, its European headquarters, Asahi Kasei has become the first Japanese resin manufacturer to join Pinfa (Phosphorus, Inorganic & Nitrogen Flame Retardants Association), an organization dedicated to improving the safety and lowering the environmental impact of both non-halogenated flame retardants and plastic products that use non-halogenated flame retardants. Pinfa
Clean Fuel Ammonia Association	Ammonia shows promise as an energy carrier for hydrogen. This association aims to establish a value chain from supply to utilization of CO2-free ammonia through technology development/evaluation, economic evaluation, policy recommendations, international collaboration, and other efforts. Clean Fuel Ammonia Association
Japan Hydrogen Association	The Japan Hydrogen Association advances global collaboration in the hydrogen field as well as the creation of hydrogen supply chains. As a chemical manufacturer that utilizes hydrogen, Asahi Kasei will take an active role in offering proposals in the Association's working group activities with regard to issues that should be addressed to generate and expand demand for hydrogen. Japan Hydrogen Association
GX League	The GX League is an initiative led by the Ministry of Economy, Trade and Industry (METI) involving efforts to transform the overall economic system through measures such as decarbonization and carbon neutrality. Asahi Kasei is a supporter of the GX League. GX League
30by30 Alliance	Asahi Kasei and Asahi Kasei Homes are participating in the 30by30 Alliance for Biodiversity, a program established by the Ministry of the Environment to conserve natural environments, with the goal of conserving biodiversity in 30% of Japan’s land and sea areas by 2030. 30by30 Alliance

Membership in organizations (main organizations)

Name of organization	Asahi Kasei's role
Japan Business Federation (Keidanren)	Vice Chair Chair of Committee on Environment and Safety, Chair of Committee on Social Security
Japan Chemical Industry Association (JCIA)	Director

Relationships with Stakeholders

The Asahi Kasei Group’s business operations depend on relationships of trust with our stakeholders. We believe that corporate value is raised by understanding the requirements and meeting the expectations of various stakeholders such as customers, shareholders and investors, business partners, local communities, the general public, and employees.
We provide many opportunities for communication to enable our business operations to be improved through dialog with stakeholders.

Communication with stakeholders

Main stakeholders	Basic premises	Main opportunities for communication
Customers	We believe that it is by maintaining customer satisfaction and providing reliable and enjoyable products and services that we contribute to society.	Face-to-face discussion by marketing and sales personnel Taking inquiries via telephone, website, etc.
Shareholders and investors	We strive to disclose information in a timely and fair manner to enable our domestic and international investors to gain an accurate understanding of the Asahi Kasei Group.	Briefings and meetings with securities analysts and institutional investors Seminars for individual investors Website disclosure of information Taking inquiries via telephone, website, etc. Shareholders meeting
Suppliers	A relationship of mutual trust with our suppliers is fostered through fair and principled purchasing practices based on regulatory compliance and respect for the environment and human rights.	Safety discussion forums CSR surveys Whistleblower System (compliance hotline)
Local communities and the general public	We work to honor and respect the local culture of each community where our operations are based, and to maintain effective dialog and communication with community members.	Periodic community dialog meetings Community outreach initiatives
Employees	The Asahi Kasei Group considers fulfilling and satisfying working conditions and workplace culture, in which employees feel motivated to achieve and take pride in their career, to be a key to business performance.	Training and interviews Discussion and interaction with management Internal magazine and intranet Whistleblower System (compliance hotline)

Materiality and SDGs

Asahi Kasei Group effort for the SDGs

Contributing to Value Chains

Other Environmental Contribution Products

■Contributes to resource and energy conservation for customers

• Microza™ water filtration modules

■Use of materials with low environmental impact

• ECORISE™ bio-PLA nonwoven fabric (for coffee cartridges)
• Biogreen Promax™ (for plastic cups)