Shin Etsu Polymer : 2021 Sustainability Report

Shin-Etsu Polymer Group

Sustainability 2021 Report

Shin-Etsu Polymer

Shin-Etsu Polymer Group Corporate Mission Statement

The Group strictly complies with all laws and regulations, conducts fair business practices and contributes to people's daily lives as well as to the advance of industry and society by creating value through providing key materials and technologies.

Shin-Etsu Polymer Group places safety and fairness first in its business and targets becoming a group of companies that develops together with society.

Basic CSR Policy

1. We will do our best to increase the Group's corporate value through sustained growth and make multifaceted contributions to society.
2. We will carry out all of our company activities by making safety always our utmost priority.
3. We will constantly pursue energy-saving,resources-saving and reduction of environmental impact, and seek to help create a sustainable future world in which we all live in harmony with the Earth.
4. We will endeavor to contribute to the prevention of global warming and the conservation of biodiversity by means of our cutting-edge technologies and products.
5. We will strive to respect human dignity, assure equality in employment opportunities and support the self-fulfillment of our employees.
6. We will appropriately disclose information in a timely manner.
7. We will carry out trustworthy corporate activities that are based on the integrity of the Group's ethical values.

Corporate Code of Conduct

1. We have pride and awareness as employees of Shin-Etsu Polymer Co., Ltd. and its Group companies and do our best to become a company trusted by society by always maintaining a law-abiding spirit, complying with laws, regulations, internal codes and rules and conducting fair and highly transparent corporate activities.
2. We disclose a comprehensive range of corporate information where necessary and appropriate and promote communication with society as well as stakeholders, investors, customers, and communities as an "open company."
3. We respect the histories, cultures, customs, etc. of individual countries and regions, work at developing business based on mutual trust, and make efforts to coexist with communities.
4. We recognize global environmental preservation as one of our first pri- ority challenges and, by fulfilling our social responsibilities, actively par- ticipate in the establishment of a recycling-oriented economic society aiming for sustainable development.
5. Through business activities, we try to develop and manufacture environ- mentally friendly products with high performance, contribute to an afflu- ent society and preserve the environment. Furthermore, we implement green procurement, properly control chemical substances, and comply with regulations on substances contained in products.

1. We commit ourselves to meet the requirements of customers and con- sumers and make efforts to provide attractive, safe, and quality prod- ucts and services that are highly satisfactory. Furthermore, we carefully handle personal information associated with customer's privacy and strictly control such information so that no information leakage or illegal use should occur.
2. We respect the principle of free competition and always promote fair trade. We also build transparent, fair, and healthy relations with custom- ers and consumers.
3. We respect human rights, personality, and diversity of employees, real- ize fair treatment, and establish a working environment where they can exert their abilities, skills, and vitality. We comply with occupational laws and regulations and conduct no inhumane labor practice such as child or forced labor.
4. We maintain healthy and normal relations with governments and their administrations.
5. We confront antisocial groups and organizations that threaten social order and security with a resolute attitude.
6. We, as "good corporate citizens" carry out social action programs in a positive manner.

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Editorial Policy

The Shin-Etsu Polymer Group began publishing Environmental/Social Reports in fiscal 2001. Renamed "Sustainability Reports" from fiscal 2017, these reports show our group's CSR activities for the purpose of achieving a sustainable society.

The editorial policies for the fiscal 2021 version are as follows:

• In the Special Feature, we introduce products for medical use.

❷The Sustainability Report covers the "environment," "society" and "governance" as

well as our promotion system of sustainability in an easy-to-understand manner.

❸The information in this Report and details of environmental data are all disclosed on our website. We also provide additional information on our website.

❹For this fiscal 2021 version, we received third-party comments from Mr. Yoshinao Kozuma, Professor at Sophia University, as with previous editions. We will draw on them in our future efforts and initiatives.

WEB About our CSR initiatives https://www.shinpoly.co.jp/en/environment.html

◦Period covered by this report April 2020 - March 2021

◦Issued

September 2021 (Previous issue: September 2020;

next issue: September 2022 (Scheduled))

◦Organizations covered by this report

Shin-Etsu Polymer Group (For further information, please see p.44.)

◦Fields covered by this report

This report covers the fields of environmental conservation and social activities. For an overview of the business, please refer to our corporate profile.

◦References

Environmental Reporting Guidelines 2018 by the Ministry of the Environment GRI Sustainability Reporting Standards 2016/2018/2019/2020

◦Inquiries

President Office, Shin-Etsu Polymer Co., Ltd.

Sotetsu Kandasudacho Building 1-9Kanda-Sudacho,Chiyoda-ku, Tokyo 101-0041 Japan

TEL [phone]  FAX [phone] URL https://www.shinpoly.co.jp/en/

Editors' Note

The Shin-Etsu Polymer Group renamed its annual "Environmental/Social Report" to "Sustainability Report" in 2017. In order to realize a sustainable society, we have stepped up our activities under the guidance of the CSR Promotion Committee. Although we have not yet done enough in the areas of corporate governance, environmental load reduction and CSR procurement, we attempted to explain what we did in an easy-to-understand manner in this report. We are looking forward to receiving many opinions and comments from readers.

*Due to the COVID-19 pandemic, discussions for this year's report were held online.

Contents

Prologue

1. Financial and Non-Financial Highlights

1. Top Commitment

08 CSR Activities

Our Basic CSR Policy and Corporate Code of

Conduct

CSR Promotion Structure / Key CSR Issues

Shin-Etsu Polymer Value Chain

12 Towards Establishing a Recycling- Oriented Economic Society

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Special Feature

Medical silicone rubber products that meet healthcare needs

14 Part 1

Alleviating pain and discomfort of catheterization with technology: Catheters and Tubes

16 Part 2

Using optimal materials in reliable production systems:

Probe lens for ultrasound diagnostic devices and components for dialysis machines

18 Environment

Environmental Management / Countermeasures Against Global Warming / Waste Reduction and Recycling / Control of Chemical Substances / Activities for Bio-diversity Protection

30 Society

Improving Quality / Supply Chain Management / Human Resources Development / Respect for Human Rights / Work-Life Balance / Promotion of Diversity / Occupational Health and Safety / Social Contribution Activities

38 Governance

Corporate Governance / Dialogues with Shareholders and Investors / Compliance / Risk Management

44 Epilogue

Business Overview of the Shin-Etsu Polymer Group Third-Party Opinion/Response to Third-Party Opinion

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Prologue

Financial and Non-Financial Highlights

Sales / Operating income (consolidated)			Net profit attributable to owners of parent / Net profit per share
(Million yen)	Sales		Operating Income (Million yen)	(Million yen)	Net Prot Attributable to Owners of Parent		Net Prot Per Share	(Yen)

2017/03

2018/03

2019/03

2020/03

2021/03

2017/03

2018/03

2019/03

2020/03

2021/03

Distribution of consolidated sales by business segment

Others	Electronic Devices
9.1%		Business
Living Environment and	23.4%
Life-Related Materials
Business
23.1%
Precision Molding
Products Business
44.4%

Composition ratio of consolidated overseas sales and shipping destinations

Other regions

29.8%

Japan

53.5%

China

16.7%

Total assets / Total net assets / Equity ratio

(Million yen)

Total Assets

Total Net Assets

Equity ratio (%)

2017/03

2018/03

2019/03

2020/03

2021/03

Return of equity (ROE)	Total net assets per share
(%)	(Yen)

2017/03	2018/03	2019/03	2020/03	2021/03	2017/03	2018/03	2019/03	2020/03	2021/03
					Sales do not include consumption tax.
					Figures after March 2018 are post-merger.
					For other key management indicators etc., please refer to our financial report.

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Prologue

Financial and Non-Financial Highlights

CO2 emissions and basic unit of production weight (Domestic plants)

Production Weight (left axis ) CO2 Emissions (left axis) Basic Unit of Production Weight (right axis)

CO2 emissions and basic unit of production weight (Overseas plants)

Production Weight (left axis)

CO2 Emissions (left axis)

Basic Unit of Production Weight (right axis)

	(Fiscal Year)	(Calendar Year)
The CO2 emission coefficient uses our coefficient.		The CO2 emission coefficient uses our coefficient.

Waste emissions and basic unit of production weight (Domestic plants)

Waste Emissions (left axis)		Basic Unit of Production Weight (right axis)

Waste emissions and basic unit of production weight (Overseas plants)

Waste Emissions (left axis)		Basic Unit of Production Weight (right axis)

(Fiscal Year)

(Calendar Year)

Revisions have been made retroactively this fiscal year to improve data precision.

Workplace accidents (Domestic plants)

(Number of			Accidents with lost working days (left axis)			Accidents without lost working days (left axis)
		Accident frequency ratio (right axis)		Frequency ratio of accidents with
accidents)					lost working days (right axis)

Workplace accidents (Overseas plants)

		Accidents with lost working days (left axis)		Accidents without lost working days (left axis)
(Number of			Accident frequency ratio (right axis)
accidents)

(Calendar Year)	(Calendar Year)

Revisions have been made retroactively this fiscal year to improve data precision.

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