旭化成（3407） – Sustainability Report 2021 Part3

SocietySocietySocietySocietyThe Asahi Kasei Group aims to be a corporate entity that contributes to sustainable society in harmony with the community bytaking social issues into consideration and striving for fair information disclosure.Quality AssuranceCSR ProcurementHuman ResourcesHuman RightsWe deliver safe and reliableWe work to promote CSR inWe respect each and everyWe provide support so that allproducts and services to ourpartnership with ouremployee and aim to create apeople involved in thecustomers and strive forsuppliers through fair andrewarding and vibrantbusiness activities of thegenuine communication withtransparent businessworkplace. We will featureAsahi Kasei Group can reachthem.activities that take account ofour approach to employment,their full potential withoutenvironmental issues andand human resources, humanany discrimination.human rights.resources development,active engagement, anddiversity.Health and ProductivityProcess SafetySocial ActivitiesManagement andOccupational Health andSafetyWe continually makeWe aim to contribute tovoluntary efforts to ensurecommunity developmentoperational safety inthrough proactiveWe engage in diverseaccordance with our Basiccommunication with everyoneactivities based on anPolicy on Safe Operation.in the local community and adiverse community fellowshipprogram all around Japan.occupational safetymanagement system toachieve employee health andsafety in the workplace.Asahi Kasei Group Sustainability Report 202167Quality AssuranceQuality AssuranceQuality AssuranceQuality AssurancePolicyultimate mission. Products and services provided by the Asahi Kasei Group internally and externally include materials, products, installations, variousservices, and after-sales support. We believe that providing safe and reliable products and services that satisfy our customers is ourIn 2016, we established the Asahi Kasei Group Quality Policy and Group Quality Assurance Bylaws. Based on these, we promotequality assurance to provide products and services that satisfy our customers and society. As we enter an era of coexistence with the coronavirus and the post-coronavirus era, we have changed the Asahi Kasei GroupQuality Policy on August 1, 2020, to reflect our strong awareness of the need to regard discontinuous and irreversible structuralchanges as opportunities for reform and to act on our own initiative.Asahi Kasei Group Quality PolicyThe Asahi Kasei Group flexibly anticipates the constantly changing needs of customers and society to create and provideproducts and services with quality that ensures safety and security.Management frameworkIn April 2019, we appointed a dedicated Executive Officer for Quality Assurance to further reinforce the management framework. The Corporate Quality Ensurance department of Asahi Kasei Corporation oversees and coordinates Group-wide quality assuranceactivities. Corporate Quality Ensurance consists of four groups: the Quality Ensurance Group, which covers all aspects of quality assurance;the Product Safety Group, which functions to ensure quality assurance as a comprehensive chemical manufacturer; the RegulatoryAffairs & Reliability Assurance Group, which functions to ensure quality assurance of products and services in the Health Caresector; and the Corporate Quality Ensurance Planning Group, which proposes new plans and coordinates with other organizations.Corporate Quality Ensurance performs a head-office function as a hub for the Group’s quality assurance framework and strivesevery day to reinforce quality assurance activities throughout the Asahi Kasei Group to deliver safe and reliable products andservices to our customers and society. Corporate Quality Ensurance prepares a Monthly Quality Assurance Report, based on which the Executive for RC and the Executivefor Quality Assurance holds monthly quality assurance meetings to discuss information related to quality assurance.Each core operating company and strategic business unit within the Group performs quality assurance in accordance with theproducts and services provided in each business area in conformity with uniform Group guidelines and bylaws. The Group Quality Assurance Bylaws stipulate quality assurance activities for RC Administrators, such as the Presidents of the coreoperating companies and strategic business units, to lead. The bylaws also define the designation and roles of Quality AssuranceManagers who play a central role in activities to enhance quality assurance. The Quality Assurance Managers’ Conference is heldfour times a year to transmit and share information among the entire Asahi Kasei Group. In addition, from fiscal 2019, we havestarted to provide an opportunity for the Executive Officer for Quality Assurance and the Senior General Manager of CorporateQuality Ensurance to meet directly with RC Administrators, Quality Assurance Managers, and others to discuss the enhancement ofquality assurance and to exchange frank opinions through face-to-face meetings, thereby creating an environment that enables usto build a reliable quality assurance system.Asahi Kasei Group Sustainability Report 202168Diagram of quality assurance frameworkQuality Assurance Meeting (held each month):Based on the Monthly Quality Assurance Report prepared by Corporate Quality Ensurance, theExecutive Officer for RC, the Executive Officer for Quality Assurance, and the Senior General Managerof Corporate Quality Ensurance hold the Quality Assurance Meeting to discuss information related toquality assurance.Quality Assurance Managers’ Conference (held four times a year):Quality Assurance Managers, who play a central role in strengthening quality assurance, meet totransmit and share information among the entire Asahi Kasei Group.Product safety initiativesThe Asahi Kasei Group has also formulated the Group Guidelines for Product Safety Measures in order to make the approach toproduct safety in the Group Quality Assurance Bylaws even more specific. Product safety measures are implemented at each stage of product development and product supply, to ensure product safety andto prevent product problems and complaints from emerging. In addition, we have also established appropriate measures to be takenif a serious product problem or serious accident is likely to occur or if it does occur.Flow of product safety measuresAsahi Kasei Group Sustainability Report 202169Safety assurance proceduresGuidelines for Ensuring Safety of Chemicals.The procedures for realizing safe products and services are specified by the Guidelines for Ensuring Safety of Equipment and theProduct safety procedure for equipmentProduct safety procedure for chemicalsChemical substance managementThe Asahi Kasei Group identifies the properties of chemical substances and appropriately manages each process from productdevelopment, raw material procurement, and production (including intermediates) through to use and disposal in order to ensurethe safety of products and production processes. We implement the chemical substance management shown in the diagram belowat each stage from the perspectives of the global environment, operational safety, workplace safety, hygiene, and health, and qualityassurance (product safety). Corporate Quality Ensurance (Product Safety Group) serves as the secretariat for the implementation of chemical substancemanagement in each business unit let by the Groupʼs Quality Assurance Managers.Note: SDS stands for Safety Data Sheet.Chemical substance management flowResearch and developmentThe management of chemical substances begins in the R&D stage when the applications for chemical substances are determined,and is guided throughout every stage by a commitment to developing products and process characterized by safe, environmentallysound production, handling, and use.Asahi Kasei Group Sustainability Report 202170When purchasing materials, information related to the safety of chemical substances is received from the supplier. This informationserves as a guide to safe storage and handling.Materials purchaseProductionAt the production stage, we manage chemical substances, including intermediates, in an appropriate manner to suppress emissionsinto the environment. We also strive to prevent fires, explosions, and leaks at facilities where chemical substances are handled toensure the safety of local communities and preserve the global environment. The health of employees is protected by performingsound risk assessment for chemical substances and preventing workplace exposure to hazardous substances.Sale, use, and disposaltechnical bulletins, and product brochures. physical distribution.Guidance for proper use and disposal of chemical substances and chemical products is provided in Safety Data Sheets (SDSs),Transport Emergency Cards are issued to guide the proper environmental and safety response in the event of an accident duringQuality assurance and human resources developmentDevelopment of core human resources for quality assuranceWe have held the Quality Assurance Forum since fiscal 2017 to continue heightening awareness of quality assurance amongyounger and mid-level employees across the Group. In fiscal 2020, 47 employees selected from throughout the Asahi Kasei Groupgathered at the head office once per month for a period of six months for a group discussion on a certain subject each time,combined with lectures on each subject by outside experts (mainly university professors at the forefront of the Japanese Society forQuality Control). At the final session, participants in each business sector discuss issues in their own organizations based on whatthey learned, and prepare proposals to present to management. In fiscal 2021, we are continuing this as a key project for in-housequality assurance training.Fostering a quality assurance mindset among department and group managersIn fiscal 2019, we held a Quality Management Seminar for Department and Group Managers, inviting lecturers who lead qualityassurance at other companies to further deepen the understanding of the importance of quality assurance for department andgroup managers. We plan to continue to provide quality assurance training for department heads in 2021 and beyond.Fostering a quality assurance mindset among all employeesCoinciding with Quality Month in November 2020, the President, the Executive Officer for RC and the Executive Officer for QualityAssurance issued messages for all Group employees about the importance of quality assurance. Training via e-learning wasconducted as well, further raising awareness on the subject for employees. This is slated to continue in 2021 and beyond as well.Asahi Kasei Group Sustainability Report 202171Chemical substance management trainingWe provide regular training to research, production, and sales staff in each area of the Asahi Kasei Group. Such training includessharing the most up-to-date information on the latest domestic chemical substance-related laws and regulations (Act on theEvaluation of Chemical Substances and Regulation of Their Manufacture, etc., Industrial Safety and Health Act, Poisonous andDeleterious Substances Control Act, etc.) in Japan and overseas for the management of chemical substances and consideration ofresponses, and presentations of the latest themes in chemical substance management.Appropriate labeling and information provisionProviding appropriate information to our customersThe Asahi Kasei Group, which provides customers with products and services that are end products for domestic and household-use products, provides information that includes product performance, precautions, and suggested usage to ensure safe use of ourproducts and services. We endeavor to provide descriptions of products and services to customers, including product labeling and advertisements, that areeasy to understand and not misleading. In addition, we confirm the content of descriptions and advertisements of products andservices at each stage from product development and introduction to sale, and continuously check that there is no infringement ofrelated laws, regulations, or voluntary industry standards, and confirm that customers are able to properly use products andservices safely and reliably.Compliance with the revised Food Sanitation ActIn June 2020, the revised Food Sanitation Law came into effect, and a new positive list (below “PL”) system was introduced. The Group participates in a number of committees of the JCII (Japan Chemical Innovation and Inspection Institute) Food ContactMaterial Safety Center, and it is continuing its activities to ensure that nothing is overlooked in the PL system and to providecustomers with appropriate information related to the PL system.Responding to Globally Harmonized System (GHS)Globally Harmonized System of Classification and Labelling of Chemicals (GHS) is a system for classifying and labelling chemicalsin accordance with globally unified rules in order to help with accident prevention and health and environmental protection. TheAsahi Kasei Group is advancing a program to classify the hazards of all of our chemical products in accordance with GHScategories, and revise our SDSs and label our products with safety information accordingly.EU REACH complianceWe conduct internal education and training on REACH (Registration, Evaluation, Authorization, Restriction and Chemicals)*1requirements and periodically hold meetings among related parties. To fulfill our obligations related to SVHC*2 which includetransmission of information, we gather information on chemical substances that are newly added as candidates for authorizedregulation, and provide it to the users who request it. At the same time, we continue to move forward with preparations for CLP(Classification, Labeling, and Packaging)*3 regulations.*1Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) is a regulation in Europe on chemical substances. It obligesregistration of the usage and safety of chemical substances imported to or produced in Europe. Substances judged to pose high risks aresubject to authorization and restriction.*2*3Substances of Very High Concern. Substances added to a list of candidates for authorized regulation.CLP is a regulation in Europe on classification, labeling, and packaging of substances and mixtures in accordance with GHS.Asahi Kasei Group Sustainability Report 202172Participation in Joint Article Management Promotion-consortium (JAMP) and promotion ofchemSHERPAAs a major upstream company, we participate in the activities of the steering committee and individual committees of JAMP relatingto the transmission of information on chemical substances contained in products throughout the supply chain and work actively onbuilding tools and systems as well as revision of the list of applicable substances. Starting in fiscal 2018, we have been engaged inactivities to encourage greater adoption of chemSHERPA (a scheme for transmission of information on chemical substancescontained in products) while making active efforts to provide and obtain information throughout the supply chain. Together with theJAMP executive office, we will continue to work to raise awareness as a representative of upstream companies.JAMPMechanisms to utilize customer feedbackWe believe satisfying customers and providing products and services that are a delight to use translates into contribution to society.In order to achieve this, we believe that it is most important to identify true needs by listening carefully to customer feedback toestablish two-way communication. The Asahi Kasei Group has built frameworks for such communication with customers in each ofour businesses and strives to listen to frank and honest feedback.Communication with customersProduct and business inquiriesAsahi Kasei Group Sustainability Report 202173CSR ProcurementCSR ProcurementCSR ProcurementCSR ProcurementPolicyIt is the policy of the Asahi Kasei Group to consider suppliers asimportant partners and to treat them with sincerity. Our Mission and Vision for procurement are an expression of ourideals to apply in daily activities as we work to uphold ourProcurement Policy and promote procurement practices with anemphasis on CSR. Accordingly, we consider suppliers from environmental aspectsincluding energy use, climate change, biodiversity, pollution,waste, and resource use, and social aspects includingdiscrimination, equal opportunity, freedom of association, andcompliance with local laws concerning working hours and wages. A relationship of mutual trust with our suppliers is fosteredthrough fair and transparent purchasing practices based onregulatory compliance and respect for the environment andhuman rights.The Asahi Kasei Group Procurement PrinciplesFormulation of Supplier GuidelinesWe conduct business activities in various countries and regions around the world, and are expected to address social issues toachieve a sustainable society, including measures against climate change and respect for human rights, not only within the AsahiKasei Group but throughout the entire supply chain as well. For this reason, in 2021 we formulated our Supplier Guidelines as a tool for promoting CSR procurement based on our purchasingpolicy. In order for our suppliers to understand our policies, we have made our Purchasing Policy and Supplier Guidelines availableon the web, and we are preparing to release an English version. We will also monitor compliance through CSR assessments of oursuppliers and cooperate to improve our management.Supplier Guidelines （92.2KB）Management frameworkCorporate Procurement & Logistics is responsible for the Asahi Kasei Group Procurement Policy, and the department cooperateswith the Sustainability Strategy Planning Department to familiarize Group company personnel with the content. As part of our supply chain management, we use the latest version of the UN Global Compactʼs CSR Procurement AssessmentSheet and disclose information in accordance with global standards.Asahi Kasei Group Sustainability Report 202174Evaluation of CSR at suppliersThe Asahi Kasei Group is working with its suppliers to promote CSR procurement with the aim of constructing a sustainable supplychain. As part of this effort, we ask our major suppliers to complete a CSR Procurement Questionnaire in order to understand thestatus of CSR initiatives across the entire supply chain. In this way, we aim to improve the level of CSR by cooperating with oursuppliers, and to avoid environmental and social risks in the supply chain. We conduct supplier surveys as part of our CSR procurement from two perspectives, which are evaluation at the commencement ofBefore commencing transactions with a new company, we conduct an evaluation which includes CSR through preliminary screeningIn addition, we conduct a CSR survey of continuing suppliers so that they engage in business activities with an awareness of CSR,new transactions and ongoing evaluation of suppliers. based on our Purchasing and Procurement Policy. and strive to foster awareness of CSR in transactions.Question categories1.Corporate governance related to CSR2.Human rights3.Labor4.Environment5.Fair corporate activities (ethics and compliance)6.Product safety and quality assurance7.Information security8.Supply chain9.Harmony with the local communityFY2020 CSR Procurement Questionnaire （1.2MB）FY2020 CSR Procurement Questionnaire ResultsIn fiscal 2020, to gain a quantitative understanding of the status of our suppliersʼ initiatives and to enhance communication thatfacilitates joint growth with our customers, we reviewed the survey questions and answer choices, using the CSR ProcurementTools published by the United Nations Global Compact as a reference.In 2020, we asked 139 of our major suppliers that had taken the survey in the past to complete the new survey, and we also added50 new suppliers (189 in total). We received responses from 187 suppliers.Viewing the results by item, the “quality and safety,” “labor,” and “corporate governance” categories received high scores, while“local communities” received relatively low scores.FY2020 CSR Procurement Questionnaire (ComprehensiveAverage scores by categoryEvaluation)Asahi Kasei Group Sustainability Report 202175We actually visited several of our business partners who received a D rating in the previous survey to (1) explain the content andpurpose of the survey and (2) support them in making improvements in accordance with their circumstances, which resulted in animproved rating in the fiscal 2020 survey. We will continue to communicate with them in the future.For suppliers ranked C and D in this questionnaire, we individually evaluated and analyzed all responses and risks to the supplychain, and are communicating with them as needed to regarding improvements based on our feedback.Supplier environmental certificationIn the questionnaire, we also surveyed the status of environmental management systems by acquiring a third-party certificationsystem such as the international standard ISO 14001. We have currently confirmed that about 50% of our major suppliers (187companies in total) have systems and mechanisms in place to promote environmental protection.To promote CSR procurement, we have been providing ongoing training to employees in procurement-related departments aboutCSR procurement in cooperation with the Sustainability Promotion Department and the procurement departments at subsidiariesand affiliates. In fiscal 2020, we conducted online training activities not only for the procurement division at our headquarters, butTraining for Employeesalso for each region despite the COVID-19 pandemic.Communication with stakeholdersSafety seminars are periodically held at our principal production sites to discuss accident prevention and exchange information withsuppliers. We also actively engage in close communication with our suppliers by actually visiting them or having them visit our offices toinform them about sustainability-related trends and promotional activities, as well as to exchange views. We will continue toenhance mutual communication going forward. The Asahi Kasei Group compliance hotline also accepts reports and inquiries from suppliers.Response to conflict mineralsIt is a global trend that more and more countries are banning the procurement of minerals from inhumane armed groups,particularly in the Democratic Republic of the Congo and neighboring countries. In the US, this is required by the Dodd-Frank Act of2010. inhumane activities.Asahi Kasei considers conflict minerals to be a serious issue, and our policy is to ensure transparency in our supply chains and toprocure minerals responsibly. We do not obtain, procure, or utilize minerals from armed groups, and avoid supporting conflict andAsahi Kasei Group Sustainability Report 202176Human ResourcesHuman ResourcesHuman ResourcesHuman ResourcesApproach to human resources andemploymentHuman resources development andactive engagementDiversityBasic policy regarding labor issuesThe Asahi Kasei Group believes that all of the human resources working at the Group are the source of new value creation basedon their diversity and capability to change.As a signatory to the UN Global Compact, the Asahi Kasei Group supports and respects the labor-related principles set forththerein. We also endorse the United Nations Guiding Principles on Business and Human Rights and the Children’s Rights andBusiness Principles, and we will use these frameworks to grasp and appropriately address labor issues in our business. The United Nations Global Compact stipulates the following labor principles.Businesses should uphold the freedom of association and the effective recognition of the right to collective bargainingBusinesses should uphold the elimination of all forms of forced and compulsory laborBusinesses should uphold the effective abolition of child laborBusinesses should uphold the elimination of discrimination in respect of employment and occupationFurthermore, the Asahi Kasei Group Code of Conduct clearly states that the Group, as well as its suppliers, does not allowinhumane practices such as child and forced labor, prohibits discrimination for any reason including employment status, respectshuman rights and diversity, and carries out its business with sincerity and a sense of responsibility.Based on the above approach, we will not only comply with domestic and international labor laws and regulations on the followinglabor issues, but also strive to create a work environment where employees can reach their maximum abilities while working withsafetly and peace of mind.Prevention of child and forced laborReduction of excessive working hoursFormulation of working conditions based on consultation between labor and management We will maintain a certain standard of living for our employees through compliance with locally stipulated minimum wages andthe payment of fair wages.Guarantee of freedom of association and collective bargaining rightsWe guarantee the freedom of association and collective bargaining rights for the employees we hire.The Group’s working conditions are formulated and implemented based on consultation and agreement between labor andmanagement.Asahi Kasei Group Sustainability Report 202177Management frameworkGeneral Affairs and the Human Resources and Organizational Development Group at Human Resources oversee initiatives relatedto personnel and labor management and human resource development. Each Group company operates its own personnel systemand strives for human resource development. The Group-wide status is confirmed through regular audits to ensure there are noviolations of laws and regulations or improprieties.Initiatives for compliance with labor standards and work style reformConsultation between labor and management regarding labor standardsWe strive to ensure legal compliance through such means as sharing information on topic and amendments to labor-related lawswith Group companies in order to ensure Group-wide legal compliance. In fiscal 2017, We also established an expert committee for the labor union and company to examine work style reform, andmeasures such as a telecommuting system have been implemented. Moreover, we have promoted the use of annual leave days to reduce working hours. In addition to this, we monitor workplaces thathave comparatively long working hours with the aim of preventing excessive working hours at the level of each organization.Specific work style reform initiatives (adopted in fiscal 2019)Work from home programAvailability of paid annual leave in one-hour unitsIncrease in number of annual leave days by one day, etc.refer to the following page.Asahi Kaseiʼs response to COVID-19Preventing harassmentIn fiscal 2020, there were six cases of Labor Standards Act violations where labor standards were violated in the Group (in Japan).Four of the cases involved overtime that exceeded the monthly limit (80 hours), and the other two cases involved overtime thatexceeded the annual limit for the application of the special provisions in the Article 36 Agreement (six times). We have takenthorough measures to prevent recurrences at workplaces where cases have occurred. For more information on our basic policy for dealing with COVID-19 infections, the status of telework, and related measures, pleaseThe Asahi Kasei Group Code of Conduct clearly stipulates a policy of zero tolerance for any kind of discrimination or harassment. Tothis end, we explicitly prohibit sexual harassment and other forms of harassment in our employment regulations. We also seek toinstill within our domestic Group companies our company policy of zero tolerance for any kind of discrimination or harassmentthrough training on corporate ethics for employees at each level ‒ new hires, and newly appointed assistant managers andmanagers (administrators). In addition, we implement corporate ethics training by business unit and geographical area. Within our domestic Group companies and most of our overseas Group companies, we have established a central point of contactfor consultation about harassment and a compliance hotline (internal reporting system) that ensure anonymity for responding tovarious inquiries and concerns on related issues in the Asahi Kasei Group. Training and consultation are also provided for staff from placement agencies and employees of affiliated companies, as part of ourgroup-wide effort to prevent the occurrence of harassment. In line with the amendment of the Law Regarding Power Harassment in April 2020, we used our internal magazine and intranet toshare our company policy on harassment and inform a wide range of employees. From fiscal 2020 onward, to prevent the spread ofCOVID-19, we are promoting harassment prevention training that is tailored to workplace conditions, utilizing video training, andconducting training via videoconference.Asahi Kasei Group Sustainability Report 202178Improving Employee Work EngagementWe aim to create an organization that can enhance vitality and spur the growth of both individuals and the organization. In fiscal2020, we reviewed the content of our existing employee awareness survey and introduced KSA (Vitality and Growth Assessment), anew survey that aims to confirm work engagement and behaviors conducive to growth. The survey is provided once a year to allemployees in Japan, and the report is provided to line managers as a reference for understanding the current state of theirorganizations. We also promote activities aimed at creating a better workplace through dialogue with employees. At the same time,we conduct stress checks to identify health risks and create an environment in which each employee can achieve sustainablegrowth while maintaining good physical and mental health. In addition, the Group as a whole is also working to promote diversity in work styles, expand the Group Masters system to recognizeemployees with high levels of expertise, and cultivate the next generation of leaders. We aim to be a company where a diverse arrayof human resources can take on challenges, play active roles, and develop even in a time of rapid change.Overview of KSA (Vitality and Growth Assessment)Communication between management and laborThe Asahi Kasei Group supports employees’ freedom of association and right to collective bargaining and strives to maintain aconstructive partnership between management and labor. Discussions on the overall management of the Asahi Kasei Group are held on a regular basis between the management of AsahiKasei Corp. and the labor union, and separate discussions are periodically held at each business unit and operating site. In addition,regular meetings with the federation of labor unions are held to provide the venue to enhance open communication betweenmanagement and labor. We have concluded a union shop agreement with the Asahi Kasei Labor Union (an agreement under which all employees, exceptmanagers and supervisors, are members of the union), and the union has 9,816 members (as of June 1, 2021).Asahi Kasei Group Sustainability Report 202179Human ResourcesHuman ResourcesHuman ResourcesHuman ResourcesApproach to human resources andemploymentHuman resources development andactive engagementDiversityPolicyorganizations. Our human resources policies are focused on the maintenance and reinforcement of a corporate culture emphasizing ourcharacteristics, the personal growth of each employee, and the creation and expansion of business through superior people andorganizations, based on the understanding that the source of our competitive strength is the exceptional power of our people andThe Human Resources Principles established in March 2006 outlines the values and behavioral guidelines that should be shared byeach employee. By ensuring that our employees act in accordance with these principles, we aim to establish it as part of ourcorporate culture and achieve both growth for each and every employee and development for our Group.Human Resources PrinciplesIn accordance with these principles, our human resources development is focused on the mutual growth of individuals andorganizations. As part of the medium-term plan beginning in fiscal 2019, efforts for human resources are focused on the growth ofmanagement and leaders, growth of professional groups and line managers who manage them, and growth of global personnel.Asahi Kasei Group Sustainability Report 202180■Diagram of human resources development system in fiscal 2021Creating a foundation for a diverse array of individuals to play an active roleBased on the idea that everything starts with people, we have been working to develop our human resources infrastructure andimplementing a variety of measures. In the “new normal” resulting from the COVID-19 pandemic, we have reaffirmed theimportance of an environment where people can work with enthusiasm, as well as diverse work styles, a proactive approach towardchange, and flexible management skills. In this era of rapid change, it is important for employees from all generations, from the youngest to the most experienced, tocontinue to develop their expertise and grow. We will take concrete measures to achieve lifelong growth going forward.Development of human resource infrastructureAsahi Kasei Group Sustainability Report 202181Human resource developmentA wide range of training programsWe utilize a combination of training based on job level and purpose to help employees develop their skills and perform their duties,improve their fundamental skills as they proceed with their work, develop personnel who can work globally, support linemanagement, and develop next-generation management leaders. Starting fiscal 2020, we are also taking a proactive approach to implementing digital learning, and we are working to develop aneffective training system and curriculum that will allow employees to take advantage of high-quality learning opportunities on theirown, regardless of their work location or work hours.Reference: Investment in training per employee (actual)FY2019FY2020Investment in training (total)2,053,238 (thousand yen)756,367 (thousand yen)Investment in training (per employee)116.0 (thousand yen)42.5 (thousand yen)Time invested in training (per employee)―21.5 (hours)Developing digital human resources to promote Digital Transformation (DX)In 2021, the Group formulated DX Vision 2030 to promote the development of DX as a pillar of its growth strategy. We will strive toachieve a sustainable society a reality by maximizing the benefits of digital technology. The most important factor in promoting DX is digital human resources. While enhancing DX training by employee level, we areworking to increase the number of digital professionals who can promote advanced digitalization to 230 by the end of fiscal 2021.As part of our DX training for all employees, in April 2021 we launched an internal “Open Badge System” to promote the acquisitionof fundamental digital knowledge, and we are also developing a DX training program for business managers.For more information about our DX strategy, please refer to the management briefing materials.Asahi Kasei Group Sustainability Report 202182Group MastersFor the Asahi Kasei Group to achieve sustainable growth amid dramatic changes in the business environment, we must seek growthand win in the global market. Human resources hold the key for doing this. In this situation, we employ a “Group Masters” program to broaden the segment of human resources with expertise that holdsuniversal value through the appointment, training, and treatment of human resources expected to be actively involved andparticipating in creating new business and strengthening existing business as “Group Masters.” Under the program, we have defined five categories of Group Masters. We have clarified the respective roles of each Group Mastercategory and enhanced treatment to create a mechanism that encourages the growth of human resources while securingoutstanding external human resources at the same time. We have also formulated a succession plan for Group Masters in each field, and have linked the succession plan to businessreinforcement and human resource development, which will strengthen our competitive edge.Categories and roles of Group MastersAsahi Kasei Group Sustainability Report 202183Target areastechnology field as Group Masters. We define fields of technology to be strengthened business-wide as “core technologies” and appoint engineers to lead each coreAs a result of organizing the core technologies, production technologies, know-how, business platforms, diverse market channelsand business models, which have been cultivated as the source of the Asahi Kasei Group’s competitiveness, we defined the 12fields below as business-wide core technologies. We will also define the fields and occupational categories to be cultivatedinternally as experts for business-specific fields and key Group-wide functions (core platform fields) and will appoint humanresources to lead those areas as Group Masters.Development of global human resourcesTo advance the expansion of our global business set forth in the medium-term management initiative “Cs+ for Tomorrow 2021”from the perspective of human resources, we are implementing an overseas open study program for young employees to challengethemselves to an overseas experience, with the aim of cultivating personnel with a global perspective. We are also working onmeasures to nurture human resources at overseas subsidiaries. To that end, we are implementing and operating a succession planfor overseas posts, measures for raising awareness about our philosophy, cross-cultural communication training, and managementtraining. For example, in China, Asahi Kasei (China) Co., Ltd. provides all local subsidiaries of Asahi Kasei in China with open lectures, aswell as human resource development programs based on their job function and level. In the past few years, we have placed particular emphasis on training local employees to become select section chiefs (from fiscal2017 to 2019) and training executive management candidates for prospective general manager positions and above (from fiscal2020 to the present). We have been closely monitoring the trends in the Chinese market on an ongoing basis, and we have beenpromoting measures based on an understanding that localization of management is essential for our company to be able toincorporate these trends.Supporting independent studyIn October 2003, the Asahi Kasei Group instituted a program to support independent study by employees. To encourage employeesto acquire higher level specialized or technological ability, the company will pay part of the cost of attending courses or lectures. Infiscal 2020, a total of 694 employees utilized the program.Asahi Kasei Group Sustainability Report 202184Human ResourcesHuman ResourcesHuman ResourcesHuman ResourcesApproach to human resources andHuman resources development andemploymentactive engagementDiversityPolicyThe Asahi Kasei Group Code of Conduct clearly stipulates that “we must respect individuals’ basic human rights and diversity, notdiscriminate on the basis of nationality, ancestry, race, ethnicity, religion, gender, ideology, age, physical characteristics, sexualorientation and gender identity, employment status, form of contract, etc., nor condone such discrimination” as company policy. Wepromote the establishment of a lively workplace which ensures equal opportunity and enables all employees to perform at their bestwithout suffering discrimination. We seek to instill our company policy to prevent any discrimination or harassment through trainingon corporate ethics for employees at each level ‒ new hires, and newly appointed assistant managers and managers. In addition, weimplement corporate ethics training by business unit and geographical area.Management frameworkThe Asahi Kasei Group believes that the development of a human-based organization in which personnel with diverse values canplay active roles is vital to the sustainable growth of our business. The Asahi Kasei Diversity Promotion Office, a department dedicated to promoting the activities of a diverse group of personnel andencouraging work-life balance, plays a central role in this effort.Expansion of opportunities for womenIn 1993, we established a dedicated corporate organ (now Diversity PromotionGroup) to promote equal opportunity, and have proactively increased theproportion of women hired and expanded the distribution of job assignments forwomen. While only three employees at the rank of supervisor or above werewomen in 1994, this has risen to 257 (as of July 1, 2021). To support femalepersonnel through life events such as childbirth and parenting, we holdseminars on returning to work after maternity leave, and provide a mentoringprogram that encourages female managers to further develop their careers. In fiscal 2020, we also formulated an action plan and targets below inaccordance with the Act on Promotion of Women’s Participation andAdvancement in the Workplace.Number of women as managers*Asahi Kasei Group Sustainability Report 202185Asahi Kasei Group Action Plan*We have developed an action plan to promote the active participation of womenTermContentmore than ever. As part of our efforts to create an environment in which diversehuman resources with various values and backgrounds can play an active roletogether and contribute to the growth of our business and organization.April 1, 2021 ‒ March 31, 2026Objective 1play a leading role: Expand the human resources that can be candidates for senior management whoIncrease the number of female managers by 40% from the number as of March31, 2021Objective 2leading role: 2021Aim for a situation where women are active in positions where they play aIncrease the total number of female section chief line managers and highly-skilled professionals by 20% compared to the number as of the end of March*Action Plan for Asahi Kasei Corp., Asahi Kasei Microdevices Corp., Asahi Kasei Pharma Corp., Asahi Kasei Medical Co., Ltd., Asahi Kasei HomesCorp., and Asahi Kasei Construction Materials Corp.Employment of persons with disabilitiesAsahi Kasei Ability Corp. was established in 1985 as a specialsubsidiary for the employment of persons with disabilities,performing a wide range of services for the Asahi Kasei Group,including office automation services such as data entry, digitizingdocuments (conversion to PDF files), website design, printing ofbusiness cards, document printing and binding, dispatch ofsample products, cleaning, copying, and planter box gardening. On March 1, 2021, the legal minimum proportion for employmentof persons with disabilities was revised upward from 2.2% to 2.3%.The proportion for applicable companies of the Asahi Kasei Groupwas 2.38% throughout the year, and as of June 1, 2021, stood at2.35% (639 persons), exceeding the legal requirement.* The rate of employment and the number of persons employed are theaverage figures for each fiscal year for applicable companies of theAsahi Kasei Group. Calculations are based on total employment of27,191 persons at the 20 applicable companies as of June 1, 2021(number of persons calculated in accordance with the Act onEmployment Promotion, etc. of Persons with Disabilities).Rate of employment and number of persons with disabilitiesemployed*Asahi Kasei Group Sustainability Report 202186Initiatives at Asahi Kasei Ability(1) Initiatives for Hiring More People with Disabilities Asahi Kasei Ability, which actively employs people with disabilities, has established the Ohito Project Office as an organization forlaying the groundwork to open a base in the Ohito area (Izunokuni City, Shizuoka Prefecture) in October 2020. The scale of itsbusiness activities continues to expand.Ohito Project Office established in October 2020(2) Securing new business(1)Supporting remote work for our Groupʼs employeesIn the past, Group employees had to come to the office to process invoices. However, after the COVID-19 pandemic began,Asahi Kasei Ability, which also has multiple regional offices, has been receiving these invoices en masse and uploading themto a dedicated system on behalf of the Group companies. This makes it possible to handle administrative work withoutrequiring employees to come to the office, thereby making it easier for Group employees to work remotely.(2)Ceramics (handmade ceramics) and coffee processing (drip pack production)We have been developing job duties suitable for the unique natures of various disabilities, and we began operations in theceramics industry and coffee processing in fiscal 2020. This allows us to ensure a wide variety of work processes andprovide manufacturing work experience by having employees use their hands and fingers.Working with ceramicsCeramic products(3) Abilympics (skills competition for people with disabilities) Many employees from Asahi Kasei Ability participate in the Abilympics (a skills competition for people with disabilities) in variousprefectures every year and win prizes. Eight employees represented their respective prefectures in the 2020 national competition(held in Aichi Prefecture), with one employee winning a bronze medal in the sewing category and another winning a bronze medal inthe desktop publishing category, demonstrating the skills cultivated through daily work and practice. In addition, one qualifyingcontestant has been selected to participate in the international competition scheduled to be held in Russia in 2022.Asahi Kasei Group Sustainability Report 202187(4) Efforts to enhance communication As an initiative for enhancing communication among the five sales offices, which is usually lacking, a culture festival was heldonline and participated in by all offices. Many unique “senryu” poems and handmade works were displayed online, allowingemployees to appreciate them and feel what the creators were thinking, thus fostering a sense of unity among the sales offices.Online culture festivalSystem to Support the Activities of All Motivated Human ResourcesIn addition to promoting the active participation of women and people with disabilities, we have developed a wide range ofsupportive measures to create an environment that supports the individual circumstances of our employees and allows them to fullydemonstrate their abilities. For example, we have established a rehabilitation work system that allows employees to resume work in a phased manner inaccordance with the instructions of an industrial physician to support a smooth return to work after a period of medical treatment.Going forward, we will continue to study ways to expand support for employees who work while undergoing treatment for illness. As globalization continues to advance, an increasing number of personnel have a spouse who is transferred to an overseasassignment. In fiscal 2013 we adopted a provision for such personnel to take a leave of absence to accompany their spouses livingoverseas. In fiscal 2020, this provision was utilized by 16 personnel (including 1 male employee). In addition, in January 2021, we began treating same-sex partnerships as equivalent to marriage in our internal system.Balancing work and family lifeIn order to improve the balance of work and family life, the Asahi Kasei Group complies with laws and regulations aimed ateliminating and reducing long working hours and provides various forms of support for employees to work with security and vitalityin accordance with their individual circumstances and values from the perspective of balancing work and family life. At the sametime, we also foster a workplace environment that facilitates utilization of the provisions by raising awareness of them through ourcorporate intranet and offering management support for superiors. Many of the provisions we offer are also available to non-regularemployees with some changes to the details, and are actually utilized by them.Asahi Kasei Group Sustainability Report 202188Parental leaveOur parental leave is available through the fiscal year in which the childturns 3 years old at Group companies in Japan*. In fiscal 2020, parental leave was utilized by 698 personnel. This is included433 men, with the rate of those who were qualified and actually utilized theleave exceeding 40% for the past six years in a row, and 265 women.Employees using parental leaveShortened working hours for child careAt Group companies in Japan*, employees are able to utilizeshortened working hours to care for preschoolers, with theworking day shortened by up to 2 hours until the child enterselementary school. In September 2007, a provision called “KidsSupport” was added to enable employees with children up to thethird grade of elementary school can work in a short time as well.These provisions may be used concurrently with a “flex-time”system for flexible working hours. In fiscal 2020, 493 employees took advantage of shortenedworking hours for childcare and kidsʼ support, four of whom weremale employees. In April 2020, we began to expand the applicableperiod of the shortened working hours system for childcare forUtilization of shortened working hours system and kids supportcontract employees (up to the start of elementary school) and thesystemapplication of the kids support system.Platinum Kurumin certification markIn 2016, Asahi Kasei Corp., Asahi Kasei Microdevices Corp., Asahi Kasei Pharma Corp., and AsahiKasei Medical Co., Ltd. received Platinum Kurumin certification from the Ministry of Health, Labor andWelfare. Platinum Kurumin certification is awarded in recognition of proactive support for thedevelopment of the next generation which is particularly outstanding.Asahi Kasei Group Sustainability Report 202189Support for family careGroup companies in Japan* have established systems to support caring for family members that go beyondlegal stipulations to provide support for balancing work with care for family members.A leave of absence of 245 days in total is available for each disease of each family member who requiresLeave of absence for family care:care.Shortened working hours for family care:A total of 1,225 days for each family member who requires careFlexible working hours for family care:Flex-time system for working with short core times, etc.Booklet onbalancing workwith care forfamily membersSince 2011, we have been holding caregiving seminars at various locations across Japan, which were renewedin fiscal 2018 as seminars for supervisors who have subordinates balancing caregiving and work, to improve theunderstanding of supervisors and workplaces of employees who are responsible for caregiving. The freecaregiving telephone consultation service (available 365 days a year and 24 hours a day to all Group employeesand their family members), which was launched in April 2019, has been used for over 20 cases over the year.Furthermore, in April 2020, we expanded our short-time work program for caregivers as a measure in responseto the increase in the number of at-home caregivers.At the same time, in order to create an environment that facilitates utilization of these systems, we disseminateinformation on balancing work and family care and information about these provisions through our corporateintranet and distributed booklet on balancing work with care for family members (since January 2013).* Regular employees of Asahi Kasei, Asahi Kasei Microdevices, Asahi Kasei Homes, Asahi Kasei Construction Materials,Asahi Kasei Pharma, Asahi Kasei Medical, and major affiliates in Japan are eligible.Main provisions to support balance in work and family lifeAsahi Kasei Group Sustainability Report 202190Re-employment of employees at mandatory retirement ageIn fiscal 2001, we introduced a voluntary re-employment program for all domestic employees who have reached the retirement ageof 60 to enable them to continue working and making use of their extensive experience and advanced skills. In fiscal 2013, weconducted a revision to increase the fixed amount of compensation by 1.5 times in order to maintain the same motivation andsatisfaction as before retirement. In fiscal 2020, over 80% of employees who reached retirement age utilized the program to beactively engaged.Asahi Kasei Group Sustainability Report 202191Human RightsHuman RightsHuman RightsHuman RightsPolicyprinciples. Respect for everyoneʼs human rights is one of the most important parts of the Asahi Kasei Groupʼs business activities. In 2021 wecreated the Asahi Kasei Group Human Rights Policy (scheduled for release in fiscal 2021). We will comply with this policy andrespect human rights as stipulated in the International Bill of Human Rights and the International Labour Organizationʼs (ILO)Declaration On Fundamental Principles and Rights at Work. We will also support the UN Guiding Principles on Business and Human Rights and implement initiatives in accordance with theseIn addition, as a signatory of the UN Global Compact, we endorse the Global Compact principles relating to human rights as well asthe UN Guiding Principles on Business and Human Rights and the Childrenʼs Rights and Business Principles. Based on thisframework, we will strive to identify and appropriately deal with human rights issues in our business activities.Asahi Kasei Group Code of Conduct (10) Respect for Human Rights and DiversityThe Asahi Kasei Group respects individualsʼ basic human rights and diversity, and endeavors to provide a workplace thatenables anyone to be actively engaged.a. Respecting Basic Human Rights and DiversityOur employees must respect individualsʼ basic human rights and diversity and, along with the basic policy of the AsahiKasei Group regarding prohibition of discrimination on any protected category under applicable law, such as nationality,ancestry, race, ethnicity, religion, gender, ideology, age, physical characteristics, sexual orientation, employment status,form of contract, etc., our employees must not condone such discrimination.b. Prohibition of HarassmentOur employees must maintain a workplace free of unlawful harassment, whether moral, sexual harassment, physical orpsychological, etc., and our employees must not condone such words or deeds.c. Prohibition of Inhumane Labor PracticesBased on respect for basic human rights, our employees must not condone inhumane practices such as compulsory labor,child labor, slavery, etc.Furthermore, our employees must not condone such practices done by our suppliers.Participation in human rights initiatives (signatory to UN Global Compact)Asahi Kasei Group Sustainability Report 202192Human Rights Due DiligenceTo fulfill our responsibility to respect human rights, we established a human rights due diligence system and will create amechanism for implementing this system on an ongoing basis. The term “human rights due diligence” refers to the ongoing processimplemented to proactively identify, avoid, and mitigate any negative human rights impact that the Group may have on society.Consideration of human rights in procurementThe Asahi Kasei Group conducts CSR questionnaires of suppliers as part of our CSR Procurement in our efforts to identify thestatus of initiatives on human rights and labor issues as well as foster awareness of CSR in partnership with our suppliers.CSR ProcurementHuman rights reporting and consultation hotlineThe Asahi Kasei Groupʼs compliance hotline handles reports and consultation on all aspects of compliance, including human rights.The hotline is available to suppliers and their employees in addition to Group employees.Compliance ＞ Compliance hotline (whistleblower system)Human rights education and awareness raising activitiesThe Asahi Kasei Group clearly stipulates a policy of zero tolerance for any kind of discrimination or harassment in the Asahi KaseiGroup Human Rights Policy and the section of the Asahi Kasei Group Code of Conduct entitled “Respect for Human Rights andDiversity.” Specific initiatives include study sessions focusing on power harassment, articles on human rights and diversityawareness in the in-house magazine, and the provision of information via the intranet. Going forward, we will implement measuresto deepen the understanding of employees of human rights issues for which companies have a social responsibility, in addition tohuman rights issues in the workplace.Asahi Kasei Group Sustainability Report 202193Health and Productivity Management and OccupationalHealth and Productivity Management and OccupationalHealth and Productivity Management and OccupationalHealth and Productivity Management and OccupationalHealth and SafetyHealth and SafetyHealth and SafetyHealth and SafetyOccupational Health and SafetyHealth and Productivity ManagementWhile business is operated globally, the structure of society is changing dramatically. The population continues to age, and the wayof hiring people as well as working styles are changing in various ways. In this time of change, it’s necessary to ensure acomfortable and safe workplace environment for all employees and enable them to make the most of their capabilities andThe Asahi Kasei Group regards all employees as precious assets. In terms of maintaining health and safety at our workplaces andwork sites, our RC Principles state: “We give the utmost consideration to environmental protection, quality assurance, operationalsafety, workplace safety and hygiene, and health management, throughout the product life cycle from R&D to disposal, aspreeminent management tasks in all operations.” Based on this, in cooperation with employees, we strive for a comfortableworkplace environment throughout the company.Preventive action for occupational accidentsIn fiscal 2020, the Asahi Kasei Group established a Life Saving Action (LSA) program to eradicate serious occupational accidents,and we began implementing it throughout the Group. We have established the following four behaviors as prohibited behaviors thatcould result in loss of life if not observed, and are promoting thorough adherence to these behaviors in all aspects of our businessThe four behaviors prohibited by LSAIn addition, our ongoing efforts to prevent workplace accidents is integrated into our comprehensive OHSMS1 program thatcombines conventional safety and hygiene initiatives2 with risk assessments and a prevention-oriented plan-do-check-act (PDCA)Policypossibilities. activities.system.Asahi Kasei Group Sustainability Report 202194Integration of workplace safety initiativesOccupational Health and Safety Management System: A standardized management system used to confirm that continuous improvement isbeing applied to measures to minimize the risks of workplace injuries and to prevent the emergence of future risksTidiness/orderliness/cleanliness (3S), reporting of near-accidents and potential hazards, hazard prediction analysis, safety patrols, and case12studiesApproach to prevent occupational accidents1. Identification of potential hazardsEffective prevention of workplace accidents requires theidentification of all potential hazards in a workplace. In addition toconventional safety and hygiene initiatives, it is important to thinkof potential issues and consider safety from the perspective of theproblems which conceivably arise in a wide variety of situations̶as a result of both potentially unsafe physical conditions(hazardous working environment due to equipment, materials,noise, etc.) and potentially unsafe work actions of personnel.2. Risk assessmentthe impact of problems which could occur and the frequency withwhich such problems would be likely to occur.3. Mitigation of the highest risksMeasures to achieve inherent safety by eliminating unsafeconditions (by eliminating dangerous procedures, automation,eliminating sources of problems, changeover to safe materials,etc.) and the application of safeguards are extremely effective inthe effort to avoid risks. The table on the right illustrates theprinciples (excerpted from reference documents). We focus onachieving inherent safety and applying safeguards (isolation andstoppage) to avoid risks associated with the use of machinery andequipment to prevent the “caught in/between machinery” categoryof accident, which can easily result in particularly severe injury.Formulation of safety measuresPriority for mitigating the potential workplace hazards identified isassigned based on a scoring system that combines the severity ofSchematic image for prevention of workplace accidentsAsahi Kasei Group Sustainability Report 202195Inherent safety and safeguardsSystems for safe operationMeasures to achieve inherent safety and the application of safeguards to avoid risks are generally considered to provide thegreatest level of safety, as shown in the following table. We incorporate such measures in the construction of new or replacementfacilities, upon safety reviews of existing facilities, and to prevent the recurrence of accidents.Our group is striving to ensure safety in our activities to comply with safe operating standards*. Specifically, we are devising andimplementing measures such as checking the status of compliance with safe operating standards in our daily operations.Operations for which the elimination of risk through equipment modification is impractical are classified as operations requiringspecial control and strictly managed as such.*Rather than individual rules for specific procedures, safe operating standards are a system of safety principles which define common safetypractices that apply to categories of operation based on similarity of risk. For example, to prevent entanglement in machinery, our standardstipulates not to touch any exposed moving parts.Sharing and utilizing information of occupational accidentsWe investigate causes and take measures to prevent recurrence at sites where workplace accidents occur. We share a database ofinformation on all workplace accidents within the Asahi Kasei Group for utilization in activities such as safety training, case studydiscussions, and prevention of similar accidents.Occupational accident statisticsUnfortunately, in fiscal 2020, a fatal accident occurred at one of our subcontractors due to a fire and explosion accident whileequipment was being dismantled. We are currently making company-wide efforts to prevent such an accident from recurring. Also, in fiscal 2020, 12 accidents resulting in lost-time injuries occurred among Group employees in Japan (no fatal accidents haveoccurred since fiscal 2012). When classifying the accidents that occurred by type, we see that the percentage of “fall from height”has been rising in recent years. In combination with the aforementioned LSA, we will not only work to prevent falls from height,which tend to lead to serious injuries, but also other types of industrial accidents.Incidence of lost-workday injury by event category (FY2020 inJapan)Incidence of lost-workday injury by event category (FY2011‒2020in Japan)Asahi Kasei Group Sustainability Report 202196Frequency rate1Severity rate21Number of accidental deaths and injuries resulting in the loss of one or more workdays, per million man-hours worked. Our goal of 0.1 or less is extremely ambitious. At a plant with 100 workers, it would mean only one worker in 50 years suffered from a workplaceinjury which resulted in a day off.2Lost workdays, severity-weighted, per thousand man-hours worked.Asahi Kasei Group Sustainability Report 202197Maintaining and improving comfortable workplacesWorkplaces where potential health hazards are present are subject to regular monitoring under the Working Environmen