CSR Management

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 CSR initiatives. 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

CSR Policy

To promote its CSR initiatives, 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.

Provide solutions to issues related to water and the environment, and fulfill responsibility for the future
Priority themes Initiatives toward 2030
Maintain social trust by developing and providing services and products reflecting considerations for safety, health, and the environment.
Maintain fair and transparent trade based on free competition. Maintain sound relationships with politics and administration.
Support and respect international norms related to human rights and promote human rights initiatives by following the Guiding Principles on Business and Human Rights established by the United Nations.
Supply water at the optimum quality and quantity by securing as much water as necessary for the life of all people and the development of industry by applying technologies for saving, purifying, and reusing water.
Optimize energy use in living and in industries, and introduce technologies for creating energy throughout society.
Introduce technologies for using waste as resources and technologies for controlling the amount of waste and aim to achieve zero waste.
Make full use of big data on water to contribute to innovations in production efficiency and product quality in industries.

Refer to “Identification of Materiality” for details on the process for identifying priority themes.

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.

Initiatives on Stakeholder Engagement

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 satisfaction surveys to find expectations and evaluations by customers as a whole and identify the Kurita Group’s issues.
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 job satisfaction, 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 surveys to check the level of their job satisfaction.
  • 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 annual 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.

Examination of CSR Initiatives

Based on the following information, we examine our CSR initiatives 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

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) social contributions ("individual activities"). The chairman 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.

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.

Performance

1. Achievement Status of Medium-term Targets

Our results and evaluation towards achievement of our medium-term targets in fiscal 2019, the first year of our activities, were as follows.

Priority themes Targets for fiscal 2023 Results in fiscal 2019 Evaluation
1) Proportion of themes falling into “Safety improvement” and “Response to legal changes” to product development themes 15% 8%
2) Rate of participation in regular safety training related to “Products and services” among employees 100% 100%
Rate of participation in compliance-related training among officers and employees 100% 100%
1) Rate of training conducted in relation to human rights among officers and employees 100% 100%
2) Severity rate 0.005 0.06 ×
Water savings at customers – Amount of water intake used in our business activities 50 million ㎥ 41 million ㎥
CO2 emissions reduction at customers – CO2 emissions from our business activities 0t -36,000 t
Waste reduction at customers – Waste generated from our business activities 100,000 t 89,000 t
Proportion of themes falling into “Contribution to improvement of production process” to product development themes 35% 33%

○: Achieved △: Partially achieved ×: Not achieved

2. External Evaluation (As of June 2019)

We responded to surveys from customers, investors, and external institutions regarding our CSR initiatives, and based on the survey questions, we expanded the information disclosed on our website. We conducted a Compliance Behavior Survey of our employees, and reflected the results in our Compliance Activity Plan for fiscal 2020. Our internal organizations responsible for compliance also conducted Surveys on Transactions with Kurita Water Industries Ltd. at the Company’s suppliers to check directly the appropriateness of our transactions with them, and we undertook individual measures based on the feedback received.

1. 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

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.

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.

SNAM Sustainability Index

This index was developed by Sompo Japan Nipponkoa Asset Management (SNAM), 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.

  • 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.

2. Evaluation by CSR Rating Organization

oekom research

The Company has received a “Prime” designation in its social responsibility rating on “Environmental aspects” and “Social and cultural aspects” from oekom research AG, a CSR assessment company headquartered in Germany.

Sustainability Report