Realizing Resource Recycling

Under Vision 2030, SEKISUI CHEMICAL Group is strategically expanding its four business domains. By doubling our sales volume through solutions to social issues, we aim to realize a sustainable society and achieve corporate growth. We consider plastics to be an important raw material in these business domains. In order to reduce the amount of waste generated in the production process, we have continued our efforts to reduce the amount of waste per unit of production every year. In specific terms, we carry out internal recycling by returning wood scraps and other materials generated to raw materials for reuse. In addition, when disposing of materials as waste, we have promoted reuse as recycled materials that contain energy.
Under the Resource Recycling Policy, released in fiscal 2021, we will expand the use of non-fossil-derived and recycled raw materials, such as biomass plastics, for plastic raw materials used. At the same time. we will continue to promote internal recycling in our production processes. We are endeavoring to minimize the amount of waste generated at construction sites. In addition, at the use and recovery stages, we will work on product design and supply chain initiatives to ensure thorough sorting and separation of waste materials. Through these means, we will make every effort to maximize the reuse of materials through mechanical and chemical recycling.
Based on results achieved ahead of schedule through initiatives up to fiscal 2022, the Group reviewed and re-established milestones for fiscal 2023 and 2025. Since fiscal 2023, we have accelerated our efforts to achieve the revised milestones.
We believe that innovation at the product design stage is important for driving the promotion of resource recycling throughout the product life cycle. By rethinking the design of new products and revising the processes for existing products, we are promoting initiatives for innovation that accelerates resource recycling.

Under the current Medium-term Management Plan, we have set the material recycling rate (MR rate) for waste plastics as one of the Group's environmental KPIs. The Group is applying this KPI under the following Plan while taking into consideration such factors as the high level of technological hurdles and timing of realization.

In recent years, plastic waste, represented by marine plastic waste, has become a major environmental issue. The Group does not manufacture or sell primary microplastics where use presupposes dissolution. However, we recognize that plastic products and plastic materials contained in products that are used or disposed after use may deteriorate in the natural environment and become microscopic if not properly treated.

The Group promotes employee training as well as environmental and social contribution activities as a part of efforts to develop human resources with considerable ability in resolving social issues. Human resources with this ability can correctly recognize such problems as plastic waste in both the products they produce and the processes they manufacture, and are able to take appropriate remedial action.

We recognize that the proper use and disposal of plastics requires the construction of a social system as well as a shift in employee awareness based on education and training. The Group is therefore engaged in various collaborations with industry, government, and academia.
For example, we are participating in the Clean Ocean Materials Alliance (CLOMA), a collaborative initiative between companies organized by Japan’s Ministry of Economy, Trade and Industry. For a fundamental solution, we are working on the common issues necessary for the social implementation of resource recycling schemes with the aim of realizing a circular economy.

SEKISUI CHEMICAL Group has developed a technology to convert combustible waste into gas and then convert that gas to ethanol, a raw material for plastics, by means of a microbial catalyst. A one-tenth commercial scale (processing capacity of approximately 20 tons/day) demonstration plant has been constructed in Kuji City, Iwate Prefecture, and is currently in operation.

SEKISUI CHEMICAL Group has exchanged manifests with waste disposal companies to ensure the proper disposal of waste generated by its own production activities.
In fiscal 2020 we formulated a resource recycling policy and strategy, and are promoting material recycling. Given there are various methods of material recycling, we will strive to improve the material recycling rate while paying attention to the quality of recycling and GHG emissions.

As far as resource recycling issues are concerned, including resource conversion, the recycling of waste, and external environmental issues that may constitute management risks, steps are taken to ascertain the magnitude of each risk to consider appropriate countermeasures, and to carry out the necessary decision-making process under the supervision of the Board of Directors.
In similar fashion to other environmental issues, our supervisory and executive systems for reducing the Group’s impact resource recycling issues and expanding its contribution to the resolution of issues are based on its Environmental Management Promotion System. (For details see here)
The Board of Directors has made the following final decisions on resource recycling issues.

As far as risk management is concerned, we have established an ERM system that in addition to identifying Group-wide major risks, shares and manages these risks within the Group. Risks related to such environmental issues as resource recycling are also assessed in an integrated manner, together with other risks that are expected to have a significant impact on management. Risks that effect the Group as a whole and each organization, including resource recycling are shared and deliberated at Board of Directors, Sustainability Committee, Management meetings, and subcommittee meetings.

Aim: Promote resource recycling

The entire housing industry is engaged in the efficient use and recycling of construction materials. As a member of this industry, SEKISUI CHEMICAL Group is reducing the amount of construction waste produced when building houses and promoting recycling.

At the Gunma and Mizukuchi business sites of Sekisui Board Co., Ltd., which manufacture exterior wall panels for Sekisui Heim, scraps are generated during the production process. In addition to reducing the amount of scraps produced as much as possible, these sites are also promoting in-house material recycling.
In addition to reducing the amount of scraps produced as much as possible, these sites are also promoting in-house material recycling.
Specifically, wood chips and cement are used as recycled raw materials by crushing and sorting the scraps generated in the process of making exterior wall panel products.

Without realizing a circular economy in 2050, there can be no decarbonized society. Based on its resource recycling strategy and roadmap, SEKISUI CHEMICAL Group is looking to convert plastic raw materials to non-fossil fuel-derived or recyclable raw materials, and is reviewing product designs that contribute to the recycling of existing products. We will promote the creation and market expansion of Products to Enhance Sustainability in an effort to accelerate contributions through our businesses.

We believe that in order to recycle resources, it is essential to collaborate with companies and organizations that are responsible for each process of the product's life cycle.
Through a joint development project with U.S.-based venture company Lanzatec, NZ, Inc., we have established a technology to convert combustible waste into ethanol using a microbial catalyst.
In order to validate the viability and commercial application of this chemical recycling technology, which is essential to resource recycling, SEKISUI CHEMICAL, INCJ, Ltd., and SEKISUI BIO REFINERY CO., Ltd. are operating a demonstration plant approximately 1/10th the size of a commercial plant in Kuji City, Iwate Prefecture. Plans are in place for the ethanol produced at the plant to be recycled as a raw material for plastics in collaboration with SUMITOMO CHEMICAL CO., LTD.

As far as the issue of resource recycling is concerned, we are collaborating with various entities, including other companies and organizations, to achieve our long-term goals, thereby expanding our contributions toward the resolution of issues and raising the potential to achieve milestones ahead of schedule. Based on the aforementioned, the Group participates in and registers with various initiatives and organizations, including forums. When participating or registering, we confirm that founding principles, the direction of initiatives, and goals are consistent with the Group.
Our continued participation is determined on an annual basis to ensure that there are no discrepancies in the direction in which we are heading. In the event that the direction differs, steps will be taken to withdraw from the initiative, forum, or other organization.