Nippon Shokubai : TechnoAmenity Report 2021 (English)

Report 2021

Profile

Editorial Policy

Starting from 2019, Nippon Shokubai has published "" as a report that covers both financial information, such as business plans and results, and non-financial information, such as ESG (environmental, social, and governance) activities.

This report aims to help a broad range of stakeholders understand our initiatives to achieve the Nippon Shokubai Group's

Mission " - Providing affluence and comfort to people and society, with our unique technology."

RC Report, which covers details of our Responsible Care (RC) activities, and ESG data compiling numerical figures of our ESG initiatives are available on our company website. We recommend that you read them along with this Report.

Scope of this Report

The report covers the entire Nippon Shokubai Group (consolidated). The report on Responsible Care activities covers Nippon Shokubai and its seven Group companies in Japan and the six overseas Group companies listed on P.65.

Overview of our Reporting Media

Reporting period

April 1, 2020 to March 31, 2021

Some topics in and after April 2021 are also contained in the report.

Publication date

November 2021

	Financial data				Non-financial data
Booklet /	PDF	Booklet/PDF		PDF
PDF

Financial Section		Report	RC Report
(English)	(Japanese/English)	(Japanese/English)

Website pages

IR data https://www.shokubai.co.jp/en/ir/	Sustainability https://www.shokubai.co.jp/en/sustainability/
	Major ESG data https://www.shokubai.co.jp/en/sustainability/esg

1 NIPPON SHOKUBAI CO., LTD. TechnoAmenity Report 2021

Profile	Commitment to	Review of the Medium- Sustainability Initiatives Governance	Reference Data
	Value Creation	term Business Plan
		and Initiatives Planned
		for the Future

Contents

1 Profile

1. Nippon Shokubai's Businesses

1. Nippon Shokubai Group Mission

1. History of Value Creation

1. Commitment to Value Creation
2. Message from

the President

1. Nippon Shokubai's Value Creation

1. Business transformation

21 Strategic transformation for environmental initiatives

23 Organizational transformation Board Members' Talk

1. Review of the Medium-term Business Plan and Initiatives Planned for the Future
2. Review of the Medium-term Business Plan

"Reborn Nippon Shokubai 2020 NEXT"

29 Strengthen the Competitiveness of SAP business

31 Accelerate the Creation of New Businesses and Products

1. Sustainability Initiatives
2. Nippon Shokubai's sustainability
3. CSR Medium-term Targets and

Initiatives, and Results for Fiscal 2020

1. Responsible Care (RC) Activities
2. Environmental Protection Initiatives

1. Process Safety and Disaster Prevention Initiatives
2. Occupational Safety and Health Initiatives / Chemical Safety Initiatives
3. Quality Initiatives / Sustainability Activities through Purchasing
4. Compliance
5. Risk Management
6. Our Relationship with our Employees

1. Promoting Diversity and Inclusion (D&I)
2. Governance
3. Corporate Governance

1. Message from Outside Members of the Board
2. Management

57 Reference Data

1. 11-YearConsolidated Financial Data

1. Overview of Business Results, etc.

1. Consolidated Financial Statements

65 Outline / Business Locations and Production Sites

NIPPON SHOKUBAI CO., LTD. TechnoAmenity Report 2021 2

Profile

Nippon Shokubai's Businesses

Nippon Shokubai operates businesses in three segments: basic chemicals, producing chemical raw materials for a variety of fields and processes; functional chemicals, producing a variety of derivative products from raw materials using our unique technologies; and environment & catalysts, developing and producing catalysts and energy-related materials, which is the origin of all our businesses today; thereby contributing to realizing a sustainable society as valued partner for customers.

Basic Chemicals

Major relevant SDGs

Our basic chemicals business covers acrylic acid and ethylene oxide, as well as their derivative products. Derivative products of acrylic acid include acrylates, used mainly for paints, while derivative products of ethylene oxide include ethylene glycols, used as raw materials for PET bottles and polyester fibers, and secondary alcohol ethoxylates (SOFTANOLTM), which are effective in improving the performance of detergents.

Major products

Applications in parentheses

• Acrylic acid

Used as raw material for paints, adhesives, superabsorbent polymers, etc.

• Ethylene oxide

Used as raw material for polyesters, construction products, detergents, etc.

Functional Chemicals

Major relevant SDGs

From basic chemical raw materials such as acrylic acid and ethylene oxide, our functional chemicals business uses our unique technologies to produce and sell a range of high value-added derivative products. Our products, including our superabsorbent polymers, or SAP (AQUALICTM CA), high-performance acrylic resin (ACRYVIEWATM) and polymers for

concrete admixtures (AQUALOCTM), contribute to the reduction of environmental impact and the creation of an affluent society.

Major products

Applications in parentheses

• AQUALICTM CA (disposable diapers)

Environment &

Catalysts

Major relevant SDGs

Our environment & catalysts business produces and sells products that contribute to conservation of the environment, including De-NOx catalysts and dioxin decomposition catalysts for the purification of exhaust gas from power plants and waste incinerators, and wastewater treatment catalysts for catalytic wet air oxidation, capable of efficiently oxidizing and decomposing harmful substances in wastewater from plants.

The environment & catalysts business also contributes to reducing both energy consumption and greenhouse gas (GHG) emissions through electrolyte sheets for solid oxide fuel cells and other products.

Major products

Applications in parentheses

• IONELTM
  (lithium ion batteries)

3 NIPPON SHOKUBAI CO., LTD. TechnoAmenity Report 2021

Profile	Commitment to	Review of the Medium- Sustainability Initiatives Governance	Reference Data
	Value Creation	term Business Plan
		and Initiatives Planned
		for the Future

Functional Chemicals

56.8%

155,300 million yen

Revenue

(FY2020, consolidated)

273,200

million yen

Environment & Catalysts

2.8%

7,600 million yen

Basic Chemicals

40.4%

110,300 million yen

● Acrylates (paints)

● Acrylates (adhesives and tackifiers)

● Ethylene glycols (PET bottles)

● SOFTANOLTM (detergents)

One of the leading

acrylic acid producers

in the world

Our unique catalysis and production technologies have enabled a high-quality, stable supply of acrylic acid, which is used as a raw material for SAPs, acrylates and other chemicals in various fields and applications. We maintain the position as one of the leading producers in the world, capable of responding to the expected future increase in demand in the long run.

Production 880,000

capacitytons/year

● ACRYVIEWATM, ACRYCURETM, etc.	● VEEATM (UV inkjet printing)
(flat panel displays)

• AQUALOCTM

(polymers for concrete admixtures)

● Electrolyte sheets for solid oxide	● Catalytic dioxin decomposition and
fuel cells	removal system

Top SAP producer

in the world

Our SAPs (AQUALICTM CA), which absorb 100 to 1,000 grams of water per gram of polymer, are not only used as the material in disposable diapers, where they help to reduce the work involved in childcare and nursing care, but also to improve the water retention capacity of soils threatened with desertification, proving useful in the area of environmental protection. With a production capacity of 710,000 tons, we are the top producer in the world.

Production 710,000

capacitytons/year

IONELTM attaining a

high market reputation

Our electrolyte LiFSI (Lithium bis (fluorosulfonyl) imide, IONELTM), which dramatically improves the performance of lithium ion batteries installed in electric vehicles (EVs), has attained a high market reputation. We are planning to boost the production volume to respond to the expected future increase in demand.

NIPPON SHOKUBAI CO., LTD. TechnoAmenity Report 2021 4