SustainabilityCSR

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.

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.

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.

Provide Solutions for Issues Related to Water and the Environment, and Fulfill Responsibility for the Future
Priority themes Contribution to the SDGs Initiatives toward 2030 Metrics Medium- to long-term targets for the fiscal year ending March 31 Targets for the fiscal year ended March 31, 2021 Evaluation*1
Target year Result
Basic themes
Maintain social trust by developing and providing services and products reflecting considerations for safety, health, and the environment.
  • 1) Rate of product safety evaluations for newly developed products
100% FY2023 100% 100% Achieved
  • 2) Rate of front-line employee participation in regular safety training directly related to products and services
100% 100% 100% Achieved
Maintain fair and transparent trade based on free competition. Maintain sound relationships with politics and administration. Rate of participation in compliance-related training 100% FY2023 100% 100% Achieved
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.
  • 1) Rate of participation in human rights-related training
100% FY2023 100% 100% Achieved
  • 2) Rate of front-line employee participation in safety training directly related to site operations
100% 100% 100% Achieved
Themes for growth opportunities
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. Water savings at customers – Amount of water intake used in our business activities 240 million m³ FY2023 66 million m³ 97 million m³ Likely to be achieved
Number of people that can benefit from improvement in water resources*2 700 million people FY2031
Optimize energy use in living and in industries, and introduce technologies for creating energy throughout society. CO2 emissions reduction at customers – CO2 emissions from our business activities*3 10,000 t FY2023 52,000 t 45,000 t Likely to be achieved
Scope 1 and 2 emissions reduction (rate of reduction since fiscal year ended March 31, 2020)*4 27.5% FY2031
100% FY2051
Scope 3 emissions reduction (rate of reduction since fiscal year ended March 31, 2020)*4 27.5% FY2031
Introduce technologies for using waste as resources and technologies for controlling the amount of waste in order to achieve zero waste. Waste reduction at customers – Waste generated from our business activities 450,000 t FY2023 173,000 t 215,000 t Likely to be achieved
Make full use of big data on water to contribute to innovations in production efficiency and product quality in industries. Proportion of themes falling into “Contribution to improvement of production process” to product development themes 35% FY2023 42% 39% Achieved
  • *1 Evaluations of themes 1, 2 and 3 are based on annual goals and results.
    Evaluations of themes 4, 5 and 6 are based on annual results relative to medium- and long-term targets.
    Medium-term target for theme 7 is set based on levels necessary for the Kurita Group to continue providing products, technologies or business models to society that drive improvements in industrial production technology.
    Consequently, evaluation of theme 7 is based on medium-term target and result for the fiscal year under review.
  • *2 Number of people that can benefit from improvement in water availability, water quality, and water accessibility in highly-stressed basins. This target was added from the fiscal year ending March 31, 2022, so no information has been provided for target, result and evaluation for the fiscal year ended March 31, 2021.
  • *3 “CO2 emissions from our business activities” include emissions generated from the ultrapure water supply business, which comes under Category 13 of Scope 3, as well as emissions in Scope 1 and 2 stipulated in the GHG Protocol.
  • *4 These targets were added from October 2020, so no information has been provided for targets, results and evaluation for the fiscal year ended March 31, 2021.

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 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 happiness and well-being surveys 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

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

FY2021 Activities

Stakeholder Major Approach Results Issues Going Forward
Customers
  • Responded to CSR surveys from customers and supplier evaluation organizations.
  • Conducted a customer intimacy survey for customers in Japan, using NPS®* as the main evaluation tool.
  • Responded to all surveys. Continued disclosure information to supplier evaluation organizations, improving our evaluation.
  • Received responses from 246 companies and 459 people. Shared the results with the relevant departments.
  • Strengthen cooperation among related departments to ensure appropriate responses to CSR surveys.
  • Consider expanding the customer intimacy survey to include customers of overseas affiliates.
Business partners
  • Conducted a questionnaire survey of business partners, expanding the scope of the survey to include business partners of affiliates in Japan.
  • Disseminated the Kurita Group’s CSR Procurement Guidelines to 641 business partners in Japan and overseas (68% of the total amount of orders placed in fiscal 2020). Of these, 260 business partners (57% of the total amount of orders placed in fiscal 2020) conducted self-assessments.
  • Working to identify, investigate, and rectify problems from the perspective of our business partners.
  • Identified no clear risks from the self-assessment results.
  • Conduct thorough internal education and other measures to eliminate any problems identified by our business partners.
  • Improve the reliability of self-assessment results by business partners in order to identify real risks in the supply chain.
Employees
  • Conducted a compliance behavior survey of all Kurita Group employees and dispatch staff.
  • Conducted a “happiness and well-being survey” of employees of the Company and Group companies in Japan.
  • Identified the risks and results of compliance activities at each company and division.
  • Identified the factors behind employee well-being and the impact of working from home.
  • Based on the results of the survey, formulate measures to enhance employee job satisfaction and energize the organization.
Shareholders and investors
  • Improved ESG information disclosure, responded to surveys from ESG evaluation organizations, held meetings with ESG investors.
  • Continued to be included in the leading ESG indexes.
  • Established opportunities for business units to learn about the evaluation mechanisms of ESG evaluation organizations and CDP; promoted their use in business activities.
  • Continuously improve initiatives related to CSR and information disclosure in light of the trend toward standardization of ESG information disclosure standards.
  • Continue providing opportunities for business units to learn about the mechanisms and results of evaluations by ESG evaluation organizations and CDP.
Local communities
  • Confirmed whether there were complaints from local residents at each Kurita Group company site.
  • There were no thanks or complaints.
  • Continue to confirm the opinions of local residents near business sites.
  • Through the activities of the WRC and other organizations, obtain a wide range of opinions on issues related to water resources.
  • * NPS® is the registered trademark or service mark of Bain & Company, Fred Reichheld, and Satmetrix Systems.

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.

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.

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.

  • 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 “Silver Medal” for the top 25% of companies in the manufacturing sector by EcoVadis, a French firm that rates the sustainable procurement capabilities of suppliers from a CSR 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 2 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