SustainabilityCSR (Through FY2023)

This page contains information about the Kurita Group’s CSR Initiatives that concluded in fiscal 2023. The Group started implementing new initiatives based on the Kurita Group’s Materiality from fiscal 2024.

  • *For more information about the Kurita Group's Materiality, please refer to the Sustainability Initiatives (from FY2024) section.
Sustainability Initiatives (from FY2024)

Definition and Objectives of CSR

The Kurita Group defines its CSR as “the Kurita Group’s responsibility for its impacts on society.” Premised on legal compliance, the Group has set the following two objectives for its initiatives related to CSR. The Group will take action by positioning these initiatives at the core of its corporate activities and management strategies.

Definition

The Kurita Group’s responsibility for its impacts on society

Objectives

  1. Creating and maximizing shared value for the Kurita Group and society
  2. Identifying, preventing and mitigating possible adverse impacts by the Kurita Group

Identification of Materiality

Through the following steps, the Kurita Group identified seven material issues related to CSR and finalized as Kurita's CSR Policy, including what we should be like and the frame of mind that we should maintain firmly in 2030.

Step 1: Evaluation of Materiality

By referring to the GRI standards, ISO 26000 (Guidance on social responsibility), "OECD Guidelines for Multinational Enterprises: Recommendations for Responsible Business Conduct in a Global Context" by the Organization for Economic Co-operation and Development (OECD), the 10 Principles of the United Nations Global Compact (UNGC), and Sustainability Development Goals (SDGs), a total of 30 themes on sustainability have been identified and the E&S (Environmental & Social) committee of Kurita evaluated their materiality based on two axes of: 1) Degree of stakeholders' expectations for the Kurita Group and; 2) Greatness of the Kurita Group's impact on society.

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Step 2: Identification of Materiality

Based on the results of the evaluation in Step 1, we repeated discussions in line with two themes: tasks that should be positioned as the base of management, and business activities and growth opportunities for achieving our Corporate Philosophy, and identified seven material issues. Further, we have set "what we should be like in 2030" or the "frame of mind" that we should maintain firmly, for each theme.

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Step 3: Confirmation of Adequacy

The E&S Committee and Executive Committee of Kurita confirmed the adequacy of the seven material issues, what we should be like in 2030, and the frame of mind that were identified in Step 2, and they were finalized as Kurita's CSR Policy by its Board of Directors.

CSR Policy, Targets, and Achievement Status

To promote its initiatives related to CSR, the Kurita Group has set out the priority themes as a common policy for the Group as follows. The Kurita Group supports the sustainable development goals (SDGs), and has set out its priority themes to conform them.

A video (in English) about the Kurita Group’s efforts to address the SDGs is available here.

CSR Policy, Targets, and Achievement Status

Environmental Improvement of Customer's Operations

The Kurita Group’s Initiatives Addressing Climate Change

Stakeholder Engagement

The Kurita Group positions its customers, business partners, employees, shareholders and investors, and local communities as its stakeholders. It takes initiatives on stakeholder engagement to understand each stakeholder’s expectations, concerns, requests, and other thoughts about Kurita and reflect them in its management.

Fundamental Activity Guidelines

Stakeholder Purpose Approach
Customers Providing solutions through products and services and winning trust from customers
  • ･Suggest and provide solutions to issues of individual customers, by communicating with them through proposal activities, and check how the solutions are evaluated.
  • ･Conduct customer surveys to better grasp issues facing the Kurita Group.
Business partners Fair trade and considerations for society, human rights, and environmental aspects in supply chain
  • ･Check what individual business partners expect and how they evaluate us, by communicating with them in procurement activities.
  • ･Conduct questionnaires of business partners to check expectations and evaluations by business partners as a whole and identify the Kurita Group’s issues.
  • ･Set up a helpline for business partners as a contact for anonymous consultations and whistleblowing.
Employees Respect for human rights, improvement of employee engagement, and human resource development
  • ･Check employees’ opinions through a self-reporting system or the similar system.
  • ･Check needs and effects of employee capability development by providing human resource development training, supporting female employees in their career development, and taking other measures.
  • ･Conduct employee engagement survey to identify any issues.
  • ･Set up a contact for compliance consultation and one for whistleblowing to accept anonymous consultations and whistleblowing.
Shareholders and investors Dialogues with shareholders and investors for mutual understanding with them and winning support from them
  • ･The president and the director in charge have dialogues with shareholders and stakeholders in financial results briefing, briefing sessions for shareholders, ones for investors, conferences hosted by securities companies, and IR roadshows.
  • ･People who are exclusively in charge of IR have dialogues with individual securities analysts and institutional investors through meetings and conference calls.
  • ･Disclose information appropriately and in a timely manner via integrated reports, website, and other media.
Local communities Contribution to local communities
  • ･Carry out activities related to nature conservation, welfare, disaster control, and other issues in areas where our business bases are located, and provide support for affected areas in the event of a disaster.
  • ･Contribute to the Kurita Water and Environment Foundation, which was established to contribute to advancing science and technologies related to water and the environment.
  • ･Check expectations and evaluations by local communities in light of presence/ absence of complaints and other feedback to each business location and their contents.
  • ･Through participation in the WRC*, work to preserve water resources in water-stressed basins all over the world.
  • * Please refer to “Participation in Water Resilience Coalition” for more details about the WRC
Participation in Water Resilience Coalition

Examination of Initiatives Related to CSR

Based on the following information, we examine our initiatives related to CSR to confirm that they are making progress toward achievement of goals.

  • Results of questionnaire and other surveys (of customers, business partners, and employees)
  • Results of assessment by major ESG investment evaluation organizations and whether Kurita stock has been selected as an ESG Stock
  • Number of complaints lodged against, and acknowledgements given by the local community to, Kurita at each business location
  • Achievement status of plans in the external organization to which we belong

FY2023 Activities

Stakeholder Major Approach Results Issues Going Forward
Customers
  • ･Responded to CSR surveys from customers and supplier evaluation organizations in Japan and overseas.
  • ･ Conducting customer intimacy surveys for customers in Japan and overseas, using NPS℠*1 as the evaluation tool.
  • ･Responded to all surveys and continued to disclose information to supplier evaluation organizations.
  • ･Moved from a conventional customer satisfaction survey to a customer intimacy survey including NPS℠*1 in fiscal 2022. Examined future activities to improve customer intimacy.
  • ･In response to a rise in the number of surveys, develop a mechanism for disclosing information to customers more promptly.
  • ･Consider the methods and content of surveys to ensure that they contributes not only to improving customer intimacy, but also to expanding and enhancing the sustainability activities of customers and the Kurita Group.
Business partners
  • ･Conducted a questionnaire of the business partners of Kurita and its Group companies in Japan to confirm that the transactions being carried out are appropriate.
  • ･Conducted a tracing survey of raw materials to confirm that procured goods do not contain conflict minerals. Also conducted on-site human rights audits of our business partners.
  • ･Encouraged EcoVadis registration for 392 business partners that had conducted self-assessments by fiscal 2021 (47% of the total amount of orders placed in fiscal 2021).
  • ･Working to identify, investigate, and rectify problems related to transactions with the Company and Group companies in Japan from the perspective of our business partners.
  • ･Confirmed that the tracing of raw materials with regard to conflict minerals is generally managed within an appropriate range. Confirmed, through on-site audits of business partners, risks related to long working hours and employment of foreign workers at some business partners.
  • ･In Japan and overseas, 123 companies have been registered with EcoVadis and their evaluation has been completed (accounting for 28% of the total amount of orders placed in fiscal 2021).
  • ･Continue to inform business partners of the Supplier Helpline.
  • ･Continue to expand our research on conflict minerals and human rights at our business partners, actively encouraging improvements in these areas.
  • ･Continue to expand the number of business partners registered with EcoVadis. In alignment with our human rights due diligence efforts, strengthen our capabilities in identifying and addressing risks.
Employees
  • ･Conducted a compliance behavior survey of all Kurita Group employees and dispatch staff.
  • ･Changed the employee happiness and well-being survey that began in fiscal 2020 to the engagement survey.
  • ･Identified the risks and results of compliance activities in the Kurita Group.
  • ･Positioned the employee engagement survey as part of the Kurita Group’s efforts to promote D&I.*2
  • ･To avoid compliance activities taking a negative tone, develop measures that encourage employees to take pride in their work.
  • ･Expand the scope in fiscal 2024 to conduct employee engagement surveys, identify issues, and use them to promote D&I.
Shareholders and investors
  • ･Improved ESG information disclosure, responded to surveys from ESG evaluation organizations, had dialogues with ESG investors.
  • ･Continued to be included in the leading ESG indexes,*3 including selection for all ESG indexes used by the GPIF.
  • ･Continuously improve initiatives related to CSR and information disclosure in light of new ESG disclosure standards, trends in sustainability strategies in Europe and the United States, matters of interest to investors, and other considerations.
Local communities
  • ･Confirmed whether there were complaints from local residents at each Kurita Group company site.
  • ･As a WRC activity, began working toward solving water resource-related issues in basins where there are problems such as water shortages.
  • ･There were no thanks or complaints.
  • ･Began working to solve water resource problems in two water basins, located in the United States and in Brazil.
  • ･Continue to confirm the opinions of local residents near business sites.
  • ･Expand our target basins while continuing to work on solving water resource issues.
  • *1 NPS℠ (Net Promoter Score) is a registered trademark or service mark of Bain & Company, Fred Reichheld, and Satmetrix Systems.
  • *2 Diversity & Inclusion
  • *3 For details, see “External Evaluation” on the CSR page of the Company’s website:
    https://www.kurita.co.jp/english/csr/management/index.html

Information Disclosure

We disclose our CSR-related information to our stakeholders by the following methods.

  • Disclosing reports created by referring to international standards on information disclosure
  • Answering questionnaire and other surveys conducted by research institutions and other organizations
  • Answering questions and surveys from customers, shareholders, and investors

Promotion System and PDCA

Promotion System

The Kurita Group positions the themes stipulated in its CSR Policy as material issues and makes group-wide efforts to work on activities related to the fields of 1) corporate governance, 2) product and service liability, 3) fair operating practices, 4) respect for human rights, 5) appropriate labor practices, 6) environmental improvement, and 7) corporate citizenship. The chairperson of the E&S Committee, who is a director of Kurita, is responsible for integrating and promoting the individual activities, with a director or an executive officer of Kurita assigned for each one of the activities as the responsible manager.

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PDCA

For each of the individual activities, we formulate the Group's common medium-term targets and annual action plans, and Kurita and Group companies manage activity targets. Determination of the action plan and evaluation of results of actions are made by Kurita's Board of Directors.

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External Evaluation

Inclusion in ESG Indexes

FTSE4Good Index Series

This index was developed by FTSE Russell, a global index provider based in the United Kingdom. The FTSE4Good Index Series is designed to promote investment in companies that meet global environmental, social, and governance (ESG) standards.
Official website

FTSE Blossom Japan Index

This index was developed by FTSE Russel. The FTSE Blossom Japan Index is designed to measure the performance of Japanese companies that are making outstanding efforts on ESG.
Official website

FTSE Blossom Japan Sector Relative Index

This index was designed by FTSE Russell, as a sector neutral benchmark that reflects the performance of Japanese companies demonstrating strong environmental, social and governance practices (ESG). Also the index is designed to support the transition to a low carbon economy by evaluating companies’ climate governance activities aligned with the Taskforce on Climate-related Financial Disclosures’ recommendations and carbon emissions intensity to determine stock eligibility for index inclusion.
Official website

MSCI ACWI ESG Leaders Index

This index was developed by MSCI, a global index provider based in the United States. The index is composed of companies with excellent ESG evaluations, selected from a parent index (the MSCI ACWI Index), which covers companies in 23 advanced countries and 26 emerging countries.

MSCI World ESG Leaders Index

This index was developed by MSCI. The index is composed of companies with excellent ESG evaluations, selected from a parent index (the MSCI Index), which covers companies in 23 advanced countries.

MSCI Japan ESG Select Leaders Index

This index was developed by MSCI. The index is composed of companies with excellent ESG evaluations, selected from among the constituent stocks of the MSCI Japan IMI Top 700 Index without any bias in terms of industry.

The MSCI Japan Empowering Women Index (WIN)

This index was developed by MSCI. It is composed of companies in the MSCI IMI Top 500 Index that have been selected based on their data regarding employment of women, disclosed under the Act on Promotion of Women’s Participation and Advancement in the Workplace and corporate policies regarding gender diversity.

SOMPO Sustainability Index

This index was developed by Sompo Asset Management Co., Ltd., a Japanese asset management company. The index is composed of independently selected stocks, emphasizing their ESG evaluation based on the Buna-no-Mori Environmental Questionnaire (environmental assessment) conducted by Sompo Risk Management Inc. and the IntegreX Survey (social and corporate governance assessments) conducted by Integrex Inc.

Morningstar Japan ex-REIT Gender Diversity Tilt Index

This index was developed by Morningstar. It uses the Gender Equality Score provided of Equileap, an organization that collects and evaluates companies’ gender-related data, to identify companies whose gender diversity policies are instilled in their culture and that are committed to providing equal opportunities for employees regardless of their gender. Kurita was ranked Group 1, the highest of the five levels.
Read disclaimer here.

iSTOXX MUTB Japan Platinum Career 150 Index

This index, which was jointly developed by Mitsubishi UFJ Trust and Banking Corporation and STOXX, an index provider that is a subsidiary of Deutsche Börse, consists of 150 Japanese companies that are active in building employees’ careers from three perspectives: long term view, active learning, and social contribution.

  • The inclusion of Kurita Water Industries Ltd. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of Kurita Water Industries Ltd. by MSCI or any of its affiliates.
    The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

Evaluation by ESG Rating Organization

ISS-ESG

Certified as a “Prime” company in the ESG ratings of ISS ESG, the Responsible Investment division of US-based proxy advisory firm Institutional Shareholder Services. Prime status indicates that Kurita exceeded industry-specific rating criteria.
Official website

Evaluation by Supplier Evaluation Organization

EcoVadis

Awarded the Silver Medal, indicating a ranking in the top 25% of all companies in all industries, by EcoVadis, a French firm that rates the sustainable procurement capabilities of suppliers from a sustainability perspective.

Evaluation by Creating a Corporate Culture that Facilitates Work

Kurumin

This is a system in which the Minister of Health, Labour and Welfare of Japan certifies companies that meet certain requirements as "childcare support company" among the companies that work to support the balance between work and childcare.

Class 3 Eruboshi

This is a system in which the Minister of Health, Labour and Welfare of Japan certifies as a "company promoting the active participation of women" based on the Act on Promotion of Women's Participation and Advancement in the Workplace.

Sustainability Report

Sustainability Report

Third-Party Opinion/Response to Third-Party Opinion
Opinions and Questions on Sustainability Report and Initiatives Related to CSR
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