contribute to the nature and society are solutions there's

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SEKISUI CHEMICAL Group's products to enhance sustainability There's another good reason for choosing SEKISUI products. SDGs proposed by the United Nations for the sustainable development of the world. The SEKISUI CHEMICAL Group shares these goals to create a better world. In 2015, the SDGs were created to highlight global issues that need to be solved. While protecting our lives and the earth, we also work to solve the various problems and create a rich and wonderful future. SDGs, proposed by the United Nations for this purpose in 2015, clarified the issues that the world should unite to address, including climate change, resource depletion, ecological deterioration, and such. Contributions that SEKISUI CHEMICAL Group products and services make to the planet and society are in full alignment with the goals of the SDGs. In addition to environmental consciousness as well as cooperation society, we must respond to the needs of our society, giving greater consideration to everything in the product life cycle and encourages suppliers of raw materials to reduce greenhouse gas emissions, and also start to make an effort in involving the supply chain as well. We will continue to work with our business partners and other stakeholders to resolve issues related to the SDGs, through corporate activities centered on our products to enhance sustainability. Expanding corporate engagement responsibilities is vital to solve the problems. Contact Information E-mail:[email protected] ESG Management Department ©UN Photo/Cia Pak INDEX The corporate activities that we are engaged in contribute to the nature and society are solutions for SDGs advocated by the United Nations as the 17 tasks to be achieved for the sustainable development of the world. SEKISUI CHEMICAL Group will continue to actively promote activities as a responsible corporate citizen. Global Children's Eco Summit 2017 New York UN headquarters displaying SDGS icon Mangrove plantation in Thailand SEKISUI CHEMICAL CO., LTD 1. No Poverty 2. Zero Hunger 3. Good Health and Well-Being 4. Quality Education 5. Gender Equality 6. Clean Water and Sanitation 7. Affordable and Clean Energy 8. Decent Work and Economic Growth 9. Industry, Innovation, and Infrastructure 10. Reduced Inequalities 11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Action 14. Life Below Water 15. Life on Land 16. Peace, Justice and Strong Institutions 17. Partnerships for the Goals Contributions to the planet and society through customer business activities・・・ P9-10 Contributions to the planet and society through daily lifestyles・・・・・・・・・・・・・・・・・・P11-12 Effective and reliable activity cycles (PDCA) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P13 Future born from SEKISUI・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P14 Invasive water plants removal (Saijo City, Ehime Prefecture) Product concept for contributing to a more sustainable world・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P1 Contributing to the planet and society by strengthening sustainable management ・・・・P2 Product Case / Housing Company・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P3-4 Product Case / Urban Infrastructure and Environmental Products Company ・・・・・・・・・・P5-6 Product Case / High Performance Plastics Company ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P7-8 Website introducing the enhance sustainability and the SDGs. Please take a look. Products to enhance sustainability EduTown SDGs Since 2018, in collaboration with Tokyo Shoseki Co. Ltd., we established the "EduTown SDGs" website where children from high grade levels in elementary school to junior high school students can learn about SDGs.Through the distribution of electronic teaching materials, we started SDGs educational activities for the next generation. 2020.10

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Page 1: contribute to the nature and society are solutions There's

SEKISUI CHEMICAL Group'sproducts to enhance sustainability

There's another good reasonfor choosing SEKISUI products.

SDGs proposed by the United Nationsfor the sustainable development of the world.The SEKISUI CHEMICAL Group shares these goals to create a better world.

In 2015, the SDGs were created to highlight global issues that need to be solved. While protecting our lives and the earth, we also work to solve the various problems and create a rich and wonderful future. SDGs, proposed by the United Nations for this purpose in 2015, clarified the issues that the world should unite to address, including climate change, resource depletion, ecological deterioration, and such. Contributions that SEKISUI CHEMICAL Group products and services make to the planet and society are in full alignment with the goals of the SDGs.

In addition to environmental consciousness as well as cooperation society, we must respond to the needs of our society, giving greater consideration to everything in the product life cycle and encourages suppliers of raw materials to reduce greenhouse gas emissions, and also start to make an effort in involving the supply chain as well. We will continue to work with our business partners and other stakeholders to resolve issues related to the SDGs, through corporate activities centered on our products to enhance sustainability.

Expanding corporate engagement responsibilities is vital to solve the problems.

Contact Information

E-mail:[email protected]

ESG Management Department

©UN Photo/Cia Pak

I N D E X

The corporate activities that we are engaged in contribute to the nature and society are solutions for SDGs advocated by the United Nations as the 17 tasks to be achieved for the sustainable development of the world. SEKISUI CHEMICAL Group will continue to actively promote activities as a responsible corporate citizen. Global Children's Eco Summit 2017

New York UN headquarters displaying SDGS icon

Mangrove plantation in Thailand

SEKISUI CHEMICAL CO., LTD

1. No Poverty2. Zero Hunger3. Good Health and Well-Being4. Quality Education5. Gender Equality6. Clean Water and Sanitation7. Affordable and Clean Energy8. Decent Work and Economic Growth9. Industry, Innovation, and Infrastructure

10. Reduced Inequalities11. Sustainable Cities and Communities12. Responsible Consumption and Production13. Climate Action14. Life Below Water15. Life on Land16. Peace, Justice and Strong Institutions17. Partnerships for the Goals

Contributions to the planet and society through customer business activities・・・P9-10Contributions to the planet and society through daily lifestyles・・・・・・・・・・・・・・・・・・P11-12Effective and reliable activity cycles (PDCA)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P13Future born from SEKISUI・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P14

Invasive water plants removal(Saijo City, Ehime Prefecture)

Product concept for contributing to a more sustainable world・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P1Contributing to the planet and society by strengthening sustainable management・・・・P2Product Case / Housing Company・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P3-4Product Case / Urban Infrastructure and Environmental Products Company・・・・・・・・・・P5-6Product Case / High Performance Plastics Company ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P7-8

Website introducing the enhance sustainability and the SDGs. Please take a look.

Products to enhance sustainability

EduTown SDGs

Since 2018, in collaboration with Tokyo Shoseki Co. Ltd., we established the "EduTown SDGs" website where children from high grade levels in elementary school to junior high school students can learn about SDGs.Through the distribution of electronic teaching materials, we started SDGs educational activities for the next generation.

2020.10

Page 2: contribute to the nature and society are solutions There's

Governance Supply chain management

Customersatisfaction Profitability

Our goal is to achieve a sustainable society by 2030. In order to achieve this, the SEKISUI CHEMICAL Group focuses on creating products that contribute to solving environmental and societal issues, not only through in-house initiatives but also throughout the supply chain and after purchase by our customers. Our hope is to be a sustainable society̶one that supports the foundations of life and builds peace of mind for the future.

Aiming for unlimited contributions to the planet and society, SEKISUI pursues sustainability in all areas̶in-company, across the supply chain and with customers.

SEKISUI products contribute to solving environmental and societal issues, not only during manufacturing but also during customer use.

In order to maintain activities that contribute to a more sustainable planet and society, a company must also maintain its own sustainability and the sustainability of its product creation process. Beginning in fiscal 2020, SEKISUI began developing activities to contribute to the sustainability of the planet and society by adding items such as governance, supply chain management, client satisfaction and profitability to the frameworks by which we evaluate products and services.

What Customers can contributeThrough customer use of our products we contribute to the planet and society in a variety of ways, including reduced greenhouse gases through use of renewable energy, effective use of resources, and longer healthy life expectancies.

What SEKISUI can contributeAs a manufacturer of products, we consider it our responsibility to be friendly to the environment and society within our company. From raw material procurement to product development and plant manufacturing, we reduce our environmental impact at each stage of production and conform to ethical guidelines and standards.

❶Raw materials procurementEthically sourced business partners and encouragement of responsible behaviour

❹DistributionEnvironmentally/society-friendly delivery to customers

❷Product DevelopmentPlanning and development of products to enhance sustainability

❸ProductionDiverse employment, and environmentally friendly manufacturing that contributes to employee safety

Contribute to the health of people using these products

Reduced energy consumption

Effective use of resources by reducing waste and promoting recycling

Reducing water risks and preventing disasters

Use of renewable energy, energy creation and storage

Do business plans and structures account for issues, such as safety, the environment, quality, compliance and human rights, so that the company can respond to accidents and disasters that would have a significant impact on the company?

Are mechanisms and frameworks in place, not only within the company but throughout product-related supply chains, that allow the company to mitigate accidents and disasters that would have a significant impact on the company?

How does the level of quality and service of the product appeal to customers? How satisfied are they, and what is the demand?

What levels of growth and potential does the business have?

A sustainable planet and society

How we maintain our customer and business partner relationshipsTo maintain corporate activities, sustainability among customers and business partners is as important as company sustainability. SEKISUI aims to achieve a more sustainable world in collaboration with all stakeholders.

How we ensure SEKISUI corporate activities are sustainableEven if corporate activities contribute to the planet and society, those activities cannot contribute to the future unless they are sustainable. SEKISUI contributes to global sustainability through its own growth as a corporation.

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CASE

Naoki OnishiKusatsu HEIM Exhibition HallShiga Sales HeadquartersSEKISUI HEIM KINKI CO., LTD.

"A year ago, I started living in a SMART HEIM home with my family. At the end of the year, while looking to buy Christmas illuminations, my wife said to me "why don't you look for ones that are solar powered?". Since starting to live in SMART HEIM, my family has become more aware of environmental impact."

"When the typhoon came, only our house still had electricity!" It is now the era where SMART HEIM can be chosen as a home that protects the family.

INTERVIEW

Simply saying that the home will not collapse during a disaster is not enough to save your family's lives. In recent years, earthquakes have displayed a different tendency from tremors before. That is, death toll directly caused by earthquakes has been less than the number of victims that pass away after living at evacuation shelters due to poor physical condition caused by stress. Housing must be the shelter that always protects the family. In the event of a disaster such as a typhoon, I hear from customers living in HEIM tell me that "When we returned home, only our house had electricity, I was so delighted." Solar power and storage batteries are no longer limited to environmental consideration and economy, they also serves to protect families from disas-ters. As the industry leader in this field, I believe that SEKISUI HEIM has a very important role to play.

Living in a SMART HEIM helps raise environmental awareness. Practically no one selects SMART HEIM to protect the environment. However, customer's awareness begins to change once they start living in the house. SMART HEIM uses HEMS*2 to display daily electricity bills and other information, so you will be able to enjoy an environmen-tally friendly lifestyle. Hopefully the comfortable, eco-nomical, and environmentally friendly lifestyle born from SMART HEIM will spread to the world. I would like to spread the joyful experience of customers living in SMART HEIM with many more people.

*1:According to in-house research *2:HEMS is the abbreviation for Home Energy Management System

SEKISUI HEIM began selling solar powered houses in 1997, ahead of the industry. That year was also the signing of the Kyoto Proto-col, where developed nations agreed to reduce their greenhouse emissions by 5% (compared to the levels of 1990) as a whole. Since then, SEKISUI HEIM has been leading the industry in bringing "Energy Self-Sufficient House" to the market.

Not only to create and store electricity, but a system that optimizes energy consumption.In 2011, we visualized the energy consumption in the house, and launched "SMART HEIM" equipped computers with "HEMS*2", which analyzes custom-er's lifestyle.Since then, we have continued to make great strides in the industry.

Three technologies back up people's lives from an economic standpoint and disaster preparedness standpoint. In order to make the house an "Energy Self-Suffi-cient House" it must excel in "creating", "storing" and "using" energy. "SMART HEIM" is equipped with 3 main functions: "Large capacity solar" will generate more electricity than the same sized site area with a flat roof through Heim's unique roof design. "E-Pocket" electric storage system that keeps electricity flowing not only during the day, but also during the night as well as in case of emergencies; and "SMART HEIM - Navi" which provides consultation by making effective energy saving and energy saving points visible to reflect domestic energy consumption. By using the

advancement of SEKISUI HEIM's creating, storing, and using energy system, we bring to reality a smart energy life. Furthermore, not only the merits in terms of economic but also supplying the necessary power even during disasters such as earthquakes and typhoons, providing a safety net for family lives. SEKISUI HEIM will deliver the complete comfortability and security that sunlight brings.

20182017201620152014201320122011

742

230360

99 144

855

37190

(ten-thousand households)

Changes in the number of domestic blackouts (according to data published by Cabinet Office, Government of Japan)

In 2018, more blackouts occurred than any of the past 8 years. If there is a storage battery, you can eliminate the anxiety from power failure.

For visiting customers, I always introduce the film type lithium ion batteries developed by SEKISUI CHEMICAL Group.

Did you know that SEKISUI HEIM is No. 1 in the construction of solar (photovoltaic) houses? Approximately 210,000 houses in total. Many families are experiencing a better future lifestyle courtesy of SEKISUI HEIM. "Creating" electricity with solar power. "Storing" energy with battery storage. "Using" self-supplied electricity even during emergencies. This type of "Smart House" should become the housing standard in the future. The age of "energy self-sufficiency" where economic lives are powered by "Zero Cost" energy that was created at home for "Zero Cost". The SEKISUI CHEMICAL Group is aiming to increase the availability and popularity of Smart Housing a reality as a market leader in this field.

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Development background

Features of SMART HEIM

Housing Company / Energy Self-Sufficient house "SMART HEIM"

No.1 in construction of Solar housing.*1 Comfortability and security that sunlight brings. "SMART HEIM" - Energy Self-Sufficient house.

Activities to contribute to a sustainable planet and society

Page 4: contribute to the nature and society are solutions There's

CASE

Piping installed that bent greatly

Do you know how many countries there are where tap water is drinkable? Including Japan there are only 9 countries*. Even within this list, the water supply system in Japan is known to be the top or second best amongst developed countries for water quality and low leakage rate. However, in Japan, there is a lot of damage from disasters such as earthquakes, especially in regions where sufficient earthquake prevention measures have not been made, replacement for water pipes that are strong enough against earthquakes is vital.

Water pipes that can withstand large forces during earthquakes are stronger and resilient.The durability and earthquake resistance of metal pipes (cast iron pipes), which have been widely used in Japanese water supply systems, have been improved over the years, but the biggest challenge of "rusting" still remains. To overcome this weakness, polyethylene water pipe which is resistant to earthquakes, with a lifetime of more than 100 years is the solution.

EsloHyper is a resin water pipe with excellent flexibility and strong connecting joints. When an earthquake occurs, due to the shaking of the ground, the piping is subjected to a heavy load in the axial direction. In addition, even if a fault occurs due to a geometric movement, pipes will be largely deformed, therefore, connecting points between the pipes risk water leakage. In 1995, SEKISUI CHEMICAL released Japan's first polyethylene water pipe "EsloHyper" which solved the problem. EsloHyper has flexibility in the material itself, stretching to five times its length, and it never breaks. In addition, since the joint portion be-tween the pipes is firmly bonded by fusion due to

heating, it has a strong resistence to deformation. The picture is one of the demonstrations carried out by a caravan that travels throughout the country. At the time of sale, these polyethylene water pipes were well received as it did not leak even if the groups were uneven.

Urban Infrastructure and Environmental Products Company /High Performance Polyethylene Tube "EsloHyper"

Gentaro NishikawaResearch Institute Product Development CenterGeneral InstituteUrban Infrastructure & Environmental Products Company SEKISUI CHEMICAL CO., LTD.

"I did not think that I'd be this happy to see water coming out!"Hearing such words in a disaster area made me realize the importance of this work.

*According to the "Current situation of water resources in Japan" (2018 edition) published by Ministry of Land, Infrastructure, Transport and Tourism.

The bendable polyethylene pipes protected the water supply of the areas affected by the earthquake. High performance polyethylene pipe "EsloHyper"

"When I was a student, I was studying environmental issues, but while focusing on researching the water quality of Lake Biwa, I was also thinking that I would someday contribute in the field as well."

In my second year at the company, I was sent to a disaster area of the Tohoku earthquake and tsunami to set up water pipes. I headed to the town of Unosumai in Kamaishi City, Iwate Prefecture to provide assistance. At the local waterworks bureau, it was decided that polyethylene pipes would be installed because it is light and easy to put in, and it can be installed reasonably along the curves of the prefectur-al roads, but the local contractors did not have enough manpower. Therefore, SEKISUI CHEMICAL offered its assistance according to the request. The happiness and joy the locals expressed at the time still resonates deeply within me. At that moment, I became aware of the impact my work has on supporting people's lives.

Japan's water supply penetration rate is 97.9%. *1 However, urgent measures needs to be taken against aging of iron pipes. Nationally, there are about 650,000 km*2 of waterpipes. Currently, most are iron pipes. Considering that occur-rence of natural disasters has been on the rise in recent years, improvement of earthquake resistance is urgently required, however, construction has not proceeded as expected. Polyethylene pipe is the most suitable to raise the earthquake resistance rate with a smaller budget and within a short construction period. Therefore, we are trying to break the manufacturer's barriers in the cross-sectional organization called the Polyethylene Pipe System Association for water distribution. I hope to continue to contribute to the future improvement of the infrastructure in Japan, such as earthquake resistant water pipes.

*1: According to the Basic Statistics of the Ministry of Health, Labor and Welfare's "Water Trends in Water Supply Rates" *2: According to Japan Water Works Association's "Water Supply by the Number" (2017.8.30)

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Demonstration that even in the event of large land deformation, water would not be cut off.

Difference in level caused by geometric faults

Background of development

Features of EsloHyper

INTERVIEW2

Hanshin-Awaji Earthquake, Niigata Prefecture Chuetsu Earthquake, Tohoku Earthquake and Tsunami, Kumamoto Earthquake ... In recent years, due to earthquakes striking Japan one after another, the disaster areas have suffered severe damage. Within that, damage to the water pipes had a severe impact on people's lives after the disaster. However, there are products that keep supplying water without being damaged at all, even in the event of numerous earthquake disasters. That is SEKISUI CHEMICAL Group's high performance polyethylene pipe "EsloHyper".

Activities to contribute to a sustainable planet and society

Page 5: contribute to the nature and society are solutions There's

CASE High Performance Plastics Company / Thermally expandable refractory material "Fi-Block"

*Data by Fire and Disaster Management Agency data, 2017FY: Total number of fires incidents was 39,373, the total number of deaths due to fire was 1,456, and the number of injured people was 6,052. Cost of fire damage was 89.32267 billion yen.

Background of Development

8

Features of Fi-Block

In recent years, there are about 40,000 fire accidents per year in Japan, close to 1,500 people lose their lives.* Therefore, a number of companies have been developing refractory materials. The most important thing when a fire happens is to evacuate to a safe place. And to delay the speed of fire by blocking the path of fire, will ensure the time to escape. "Fi-Block" is Japan's first organic refractory material produced for that purpose.

Tomoyuki IshiguroFire Protection Materials Sales OfficeFire Protection Materials DivisionHigh Performance Plastics CompanySEKISUI CHEMICAL CO.,LTD

I live near the sea, and when I go out, I often pick up garbage from the coast as a volunteer. Indeed it is a modest environmental contribution(haha) 

"Huh, only applying it to one side?!" Shook up the industry - Fi-Block Fi-Block is often used as a compartment penetration treating material for constructing piping space that penetrates the wall, but because unlike conventional fire-resistant materials, it is not necessary to install it on both sides of the wall as one side can sufficiently perform to its ability, it is also a major feature that allows you to drastically cut down on the construction time. However, at the time of sale, it was not easy to convince people in the industry of the question "is that really enough?" It was that big of a breakthrough product.

In the fire protection market, Fi-Block is now considered the industry standard.Nowadays, many Fi-Blocks are used in fire prevention area, and the product has become synonymous with the term compartment penetration treatment member. Even during construction inspections performed by the fire department, often the workers at the site will hear "If you use Fi-Blocks you are fine." With regards to dealing with products that contribute to the social and the natural environment. In addition to providing the role of direct disaster pre-vention, I am involved in sales promotion specifications of resin sashes, which has higher thermal insulation than aluminum sashes. Through our daily activities, I believe that SEKISUI CHEMICAL Group will be recognized for contributing to the betterment of both the societal and natural environment through spreading the use of resin sash, which will increase the heating and cooling effi-ciency of the building, and reduce CO₂ emissions.

INTERVIEW

It is said that "in the event of a fire, you must close the windows." Why is that?When a fire occurs in the room, the flame grows by taking in oxygen from the opened windows and doors, and expands to the outdoor, causing the fire to spread to the upper floors and adjacent buildings. It is important to eliminate the existence of such "fire loopholes" in order to stop even just a little bit more damage caused by fire.

Measures are also required to deal with fires spreading through indoor piping. Besides windows, these "loopholes" of flames are penetrating through parts provided in the walls and floors for air conditioning, water supply and drain-age, and indoor wiring. If fire protection measures are not applied to these parts, the flammable piping material becomes the path of fire and the fire spreads throughout the building.

Fi-Block is a fire-resistant material that, when heated, expands and blocks 'loopholes of the flame'.Fire-resistant material that does not burn off even if it is heated at high temperature is necessary to close the openings of the window and the loop-holes of the penetrating flame. However, conven-tional fire-resistant materials are mostly non-or-ganic substances such as concrete and gypsum, they are hard and difficult to be shaped, not only requiring time and labor to construct, but also deform due to high heat, therefore, sufficient fire resistance can not be obtained. As a result, SEKISUI CHEMICAL developed a new fire-resistant material that expands when a fire occurs and forms a heat insulating layer. Even if the frame of the window deforms due to high heat or the piping material is burned down, it expands quickly and closes the gap firmly, pre-venting the fire from spreading out to another

3

Help people to escape the fire by shutting out the flames. Thermally expandable fire-resistant material "Fi-Block"

It expands at the time of fire, closing the penetrating loopholes and prevents the fire from spreading.

For example, a 2 mm thick sheet expands (10 times) to 20 mm thick.

The high evaluation and trust from the fire department comes with the weight of the responsibility this product has to the society.

room or outdoors for a certain period of time. Furthermore, the construction only requires pasting a sheet-like Fi-Block. Not troublesome work at all, anyone can perform the construction without mistakes.

Usually

Fi-Block in sheet form・・ Expands rapidly when heated・・ Close the gaps

When fire occurs

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Fi-Block

Pipe

wall

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Activities to contribute to a sustainable planet and society

Page 6: contribute to the nature and society are solutions There's

High-quality, transparent, flexible container capable of γ-ray sterilization treatment. Maintaining aseptic condition, ideal for pharmaceuticals and food storage.

Hot melt adhesive packaged in a non-adhesive film used for sanitary materials such as paper diapers. Packaging bags can be put into tanks, not disposed as waste.

A system that makes a contract to buy back the end material from customers who purchased the product and recycles the end materials.

Due to the dual tank system, renewal work can be performed for each tank, without the stoppage of water as replacement work for the receiving tank is being performed.

Very low thermal resistance realized by thinning the layer. Easy to handle, easy to dispense and apply to substrates.

Automobile heat dissipation grease

Medical liquid transport container "Steritainer"

Hot melt adhesive "Zero-Pack"

Tank maintenance renewal/FDNS method

ABS recycling system"ALLEN" grade

Communication Cable Box "CC-BOX"Collective piping method to house power and communi-cation cables in the space under the road. Reduce cable damage and damage to the surrounding environment in the event of a disaster.

Used for preventive maintenance, repair of concrete structures and steel structures, longevity of infrastructure facilities such as railways and roads.

Lightweight corrosion-resis-tant structural material made of resin that has sufficient strength as a structural material, making it light weight like wood, with water resistance and durability.

Construction method which can renew the old sewer pipe without excavating the road by applying it inside the existing pipe.

Synthetic wood "Eslon Neo Lumber FFU"

Pipeline rehabilitation method "SPR Method"

Fire-resistant material "Fi-Block"

Energy Self-Sufficient House "SMART HEIM"

A new type of fire resistant / fireproof material that expands due to heat and forms a heat insulating layer when a fire occurs.

Equipped with solar generators and batteries. Homes that not only reduce CO₂ through better energy saving, creation and storage, but also protect families in the event of infrastructural blackouts due to natural disasters or other events.

・Fire-resistant material "Fi-Block"

・Synthetic wood "Eslon Neo Lumber FFU"

・Communication Cable Box "CC-BOX"

・Pipeline rehabilitation method "SPR Method"・Rainwater storage system "Cross-Wave"・Hard polyvinyl chloride pipe "Eslon summer pipe"・Soundproof rail cover

Construction/Disposal

Maintenance

Use

Designing

Shipping/Sales

Shipping/Sales

Material Procurement

Use/Maintenance

Construction

Designing

Collection/Recycling

Use/Maintenance

Production

Shipping/Sales

Material Procurement

Designing

・Energy Self-Sufficient House "SMART HEIM"・Solar power generation, storage battery, HEMS Installation renovation・High weatherproof gutter・Ceiling Air Conditioning Panel・High performance polyethylene pipe for air conditioning piping "Kuu Chow Hyper CH"・Resin made tatami "Migusa"・Large capacity film type Lithium ion battery

・Fire-resistant material "Fi-Block"・Heat screen material "Heat cooling net"・Heat screen door kit "Smart cooling window"

・Tank maintenance renewal /FDNS method・Pipe/duct insulation "THERMOBREAK"・For outdoor fire hydrant installation High performance polyethylene pipe "EsloHyper PE"・Polyethylene pipe for industrial water /chemical liquid pipe "Eslon plant hyper BK"・Heat exchange coating "Sekisui Protect Court (SP)"

・Hot melt adhesive "Zero-Pack"・AP/E atmospheric pressure plasma etching machine・Medical PP sheet, medical PE sheet・Protective tape for diffusion films

・Automotive heat dissipation grease・LCD materials: 3800 Series double-faced tape for fixing of LCD components

Product names with contribute to the natural environment, and those with contribute to the social environment.

Infrastructure renovation business "Infrastructure guard" series

・Medical liquid transport container "Steritainer"・"Rontainer" for inspection reagents

●Use/Maintenance ●Construction ●Designing

●Maintenance ●Usage ●Shipping/Sales

●Usage ●Shipping/Sales

●Construction/Disposal ●Designing

●Designing

●Production●Shipping/Sales

Housing/Building Construction

Infrastructure Construction

Manufacturing at Factories

●Collection/Recycling

・Synthetic wood "Eslon Neo Lumber FFU"・Reflector built-in sound absorbing panel・Soundproof rail cover・Storable emergency temporary toilet systems・Slanted sewage plates

Recycling/Use and application

・"Smart HEIM Denki" surplus solar power purchasing service

・ABS recycling system "ALLEN" grade・3-layer containers made from recycled materials "Green Label"・Plastic winding core (ABS)・Plastic winding core (PP)・Lawn protection grids "SHIBA-OMOI", Edging materials "FUCHI-OMOI"・Container for waste/recycling sorting "Clear Eco Duster"・Rainwater storage system "Cross-Wave"・Artificial lumber "ASHERA Wood"・Recycling containers

Contributions to the planet and society through customer business activitiesFrom product design to production, sales, disposal and recycling. SEKISUI CHEMICAL Group's products to enhance sustainability contribute to the planet and society in a variety of arenas, whenever customers use our products in their businesses.

Housing/Building Construction

Infrastructure Construction

Manufacturing at Factories

9 10

・Infrastructure renovation business "infrastructure guard" series・High impact PVP "Tough Vilon" (Used for tunnel drain)・Polyethylene pipes and fittings for gas distribution system ・Polyethylene pipes and fittings for sewage

"Smart HEIM Denki" surplus solar power purchasing servicePurchasing and sales of surplus solar energy after closing of feed-in tariff (FIT) purchasing schemes.

●Recycling/Use and application

Page 7: contribute to the nature and society are solutions There's

・ Sound and solar interlayer film "S-LEC"

Agriculture

Automobile

Housing

Medical / Nursing care

Infrastructure

Construction

Aviation

Railway

Contributions to the planet and society through daily lifestylesIn towns, factories, infrastructure, transportation systems.SEKISUI CHEMICAL Group's products to enhance sustainability contribute to the planet and society in various arenas of daily life, often in ways that people cannot see.

Interlayer film used for automotive and architectural glass. Improve sound /heat insulation, reduce weight of material by thinning glass, improve efficiency of air conditioner.

The goal to create a new sunscreen by combining units of a three-dimensional shape conforming to the structure of trees composed of many leaves. Temperature increase is small, providing shade like trees.

Soundproof rail cover that smooths the uneven surface of railway tracks and suppresses noise during operations. Contribute to saving resources by reducing the weight of our own vibration damping technology and structure.

Multilayered reinforced plastic tube made of glass fiber, unsaturated polyester resin and silica sand. It exerts excellent hydrity, durability, light weight and contributes to reduction of total cost.

Tatami mats made of durable polypropyl-ene and natural inorganic materials. Maintaining a natural texture, it lasts longer than tatami using natural rush grass and contributes to effective utilization of resources.

In paddy fields and such., a system that performs water supply, drainage and water level adjustment through natural pressure. Easily manage water supply/drainage, reducing wasteful use of water. Because of natural pressure pipeline, a power source is unnecessary.

Recyclable molded parts which satisfy strict safety standards and design properties of the aircraft industry, such as flame retardancy and impact resistance. It is used for seat sheets, tray tables, and such., which contributes to fuel reduction through reduced weight.

Business development for various clinical examination drugs such as diabetes and infectious diseases, vacuum blood collection tubes made of resin, analyzer and others. Early detection of illness contributes to a longer healthy life through prevention of severity and expansion of infection.

・Rainwater storage system "Cross-Wave"・Grass protective material "Grass feeling"

・Nursing care / Independence support facility "wells"・Disaster-prevention type of elderly housing "Harvestment"・Automatic coagulation analyzer Coapresta series "CP 3000"・"Steritainer" for Medical liquid transport container

・Temporary plastic road material "Pla-Road"

・Rain gutter / rain water storage tank for Europe・SMART HEIM City, SMART HEIM Town・Heat shield screen material "Heat shield cool net"・Heat screen door kit "smart window cool"・Highly insulated bathtub "Thermotect Bath"・Water saving bathtub

・Foam for automobile flooring materials "Alveosoft"・Automobile heat dissipation grease

・Pipeline rehabilitation method "SPR Method"・Polyethylene pipes and fittings for gas distribution system ・Polyethylene pipes and fittings for sewage

・Synthetic wood "Eslon Neo Lumber FFU"・Thermoforming sheet for railway interior "KYDEX Railway Grade"

Electronics field

Thin foam double-sided tape with high impact absorption performance. Adopted as a liquid crystal display for mobile phones, prevents damage due to dropping, contributing to improvement of water-proofness.

・LCD materials: gap-control microparticles "MICROPEARL SP, GS" ・Ceramic binder for MLCC (multilayer ceramic capacitor)・LED materials: white-type resist

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Release liner

AcrylicAdhesive

Ultra thin PEForm

Product names with contribute to the natural environment, and those with contribute to the social environment.

・Diagnostics Business

・Fractal sunshade materials "Airyshade"

・LCD materials: 5200 Series functional foam tape

・Thermoforming sheet for aircraft interior "KYDEX aircraft grade" ・Non-pressurized pipeline system "Kopf’s System"

・Resin made tatami "Migusa"

・Reinforced plastic composite pipe "RCP"

・Soundproof rail cover

Page 8: contribute to the nature and society are solutions There's

Supporting the development of cities through Products to enhance sustainability to produce lifestyle of the future.

Maintaining a 100% or greater natural/social capital return rate!How can we improve sustainability for the planet and society? The plan begins with drawing a clear plan. We at SEKISUI CHEMICAL Group have embarked on activities that aim for 100% or greater return of natural and social capital by 2050.

Develop activities involving even business partners.Analysis shows that the company's contribution through products is the largest. Furthermore, it is crucial to mention the importance of activities to reduce environmental impact in collaboration with customers and business partners. Our focus on products to enhance sustainability are based on these findings.

Plan

Do Check

Action

PDCAs for more sustainable corporate activities Future born out of SEKISUI

SEKISUI CHEMICAL Group's long-term environmental vision

SEKISUI CHEMICAL Group's city planning project:The SEKISUI Safe & Sound ProjectThe Safe & Sound Project̶which is built around a concept of safe, sound, environmentally friendly and sustainable towns̶relies on a wide range of SEKISUI CHEMICAL Group products and services. SEKISUI infrastructural technologies support the city, safeguarding lifelines such as electricity and drinking water, and ensuring resilient homes where people can shelter in times of emergency. The project was first implemented as Asaka Leadtown, in Saitama Prefecture's Asaka City, and is now in the process of being expanded to Hokkaido.

Measuring and evaluating the financial impact of our sustainable activities

Focusing on three activities, Sekisui Chemical Group is currently promoting:Currently, the SEKISUI CHEMICAL Group develops company-wide activities focused on three main areas, involving departments ranging from R&D to sales: expanding and creating products to enhance sustainability, reducing environmental impacts, and conserving the environment.

Evaluate "visualization" of the return rate ofnatural and social capitalWe developed the "SEKISUI Environmental Sustainable Index" to analyze the return rate of natural/social capital. We calculated the environmental impact over the life cycle of the product as an impact on greenhouse gas climate change, resource depletion, ecosystem degradation, social assets, etc.

Examples of products to enhance sustainability used in city-planning

"SEKISUI Safe & Sound Project" image illustration

With the focus of the world, SEKISUI CHEMICAL’s Innovative Resource Recycling System now produces chemical products from garbage!

TOPIC

Safe, sound, environmentally friendly and sustainable towns.This concept guides the SEKISUI CHEMICAL Group's efforts to create the towns of the future.

Efforts to reduce greenhouse gas (GHG)

Customers

Encouraging the use of materials that have low impacts in environment and sharing the information.

Promote the spread of products to enhance sustainability such as ZEH (net zero energy housing).

Inspection of heat leak condition of equipment at production site

Pilot plant demonstrating the "technology to transform garbage into ethanol"

Fermentation liquid and refined products created from the ethanol production processImpact reduction

1.5%Conservation of the natural environment

0.9%

Corporate activities rely on the use of natural and social capital. Therefore we adopted our own evaluation method named SEKISUI Environmental Sustainability Index in order to assess environmental impacts caused by activities through the use of natural and social capitals.We are confirming our committment to "Earth with Maintained Biodiversity (sustainable earth)" aiming to realize this goal in 2050, as demonstrated by empirical data.

*Based on the "LIME2" method es tablished by professor Itsubo and team of Tokyo City University, which shows the percentage of burden on the environment that is replenished if the burden on the environment is set at 100. SEKISUI CHEMICAL Group increased by 11.7 points from the previous fiscal year.

For detached housesDrinking water storage system Manhole disaster toilets Joint electric wire groove

"CC-BOX"High performance resin tatami

"Migusa"Fractal sunshade"Airy shade"

A house that lives by the power of the sun"SMART HEIM"

Reinforced plastic composite pipe RCP

Quake-resistant water supply pipe"EsloHyper"

Thermal expansion fire-resistant material

"Fi-Block"

Rain water storage material"Cross-Wave"

Raw material producers

*Stakeholders : "Customers", "Shareholders", "Employees", "Business partners", "Local Communities and the Environment"

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Contribution by products 102.1%

UpstreamSupply chain

productionprocess

Downstreamsupplychain

Raw materials53.8%

Production21.5%

Use of natural and social capital

Return of natural and social capital

Other24.7%

Return rate104.5%

100%

The majority of waste produced in Japan is incinerated.The SEKISUI CHEMICAL Group developed the world's first technology to recycle this waste as raw material. This technology converts collected waste into a uniform synthetic gas, from which ethanol is then produced using the power of microbes.With world’s attention as the ultimate resource recycling system, it turns any burnable garbage into reusable raw material, not relying on fossil resources. As part of demonstrating BR ethanol technology̶which is the last step in practical implementation and industrialization̶SEKISUI has built a demonstration plant in Kuji, Iwate, at 1/10th of scale, with operation and demonstration projects scheduled to begin by the end of fiscal 2021. The SEKISUI Chemical Group has also been cooperating with Sumitomo Chemical since 2020. Aiming for public adoption of technologies to manufacture polyolefin from waste, Sumitomo Chemical will begin experimental production of polyolefin in fiscal 2022, using the ethanol created at our demonstration plant.