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Materiality

The Daicel Group has identified materiality—key sustainability issues—to support the implementation of its management strategy and promotes management based on these issues. We will carry out the CAPD cycle* ​according to this materiality and contribute to realizing a sustainable society in the Daicel way.

  • ​
    Instead of a Plan, Do, Check, and Act (PDCA) cycle, the most widely known approach to continuous improvement, Daicel has adopted a CAPD improvement cycle to avoid the risk of overlooking crucial facts and realities that often lie hidden in the initial planning stage.

Background and Approach to Identifying Our Materiality

The Daicel Group’s materiality consists of two main categories.

For "Materiality aimed at achieving growth of the Daicel Group and value co-creation," our aim is to identify the material social and environmental issues in line with the "Product, Process, and People" concept in our Sustainable Management Policy, and clarify the areas in which the Group will promote value creation by leveraging its strengths.

For "Materiality related to the foundations of the Daicel Group’s continuity and governance," we focused on the key foundations of Safety, Quality, and Compliance, which are essential for value creation, across each of the ESG domains: Environment, Society, and Governance.

Process of Identifying Materiality

  1. Step 1

    Extract Social Issues

  2. Step 2

    Prioritize

  3. Step 3

    Confirm Validity

  4. Step 4

    Formulate Materiality and KPIs

  1. 1

    Extract Social Issues

    In extracting social issues, we referred broadly to international guidelines, the Sustainable Development Goals (SDGs), the principles of the United Nations Global Compact, and guidelines published by industry organizations. Based on these guidelines, we identified social issues that the Daicel Group should prioritize.

  2. 2

    Prioritize

    We assessed items extracted in Step 1 by considering every subject in the two aspects to identify key themes with high priority by plotting them on the materiality map according to “Importance to stakeholders” and “Importance to the Daicel Group.” Then we have sorted these themes into the two categories of “Growth of the Daicel Group and value co-creation” and “Foundations of the Daicel Group’s continuity and governance.”

    Materiality Map
    Vertical axis [Importance to stakeholders] Horizontal axis [Importance to Daicel Group] Important themes
  3. 3

    Confirm Validity

    The Corporate Sustainability Office and other relevant divisions discussed the validity of important themes identified through Steps 1 and 2. The results were approved at the Management Meetings and by the Board of Directors.

  4. 4

    Formulate Materiality and KPIs

    By going through Steps 1 to 3, we identified 15 material issues. We designate a key performance indicator (KPI) and target for each issues. We will review our materiality, KPIs and targets in response to future changes in society and our business.

Materiality List

Materiality Aimed at Achieving Growth of the Daicel Group and Value Co-creation
Classification Materiality
ClassificationSustainableSustainable Product
​		 ​Contributing to Beauty and Health
MaterialityProvidingContribute to the Smart Society
MaterialityProvidingProviding Safety and Security for Society
MaterialityProvidingProvide Environment-Friendly Materials and Technology
ClassificationSustainableSustainable Process
​		 MaterialityContributingContribute to the Development of a Circular Society 
Materiality:Response to Climate Change
ClassificationSustainableSustainable People
​		 MaterialityPromote DE&I
MaterialitySupportingSupport Personal Growth
Materiality Related to the Foundations of the Daicel Group’s Continuity and Governance
Classification Materiality
ClassificationEnvironment​
Environment		 MaterialityReducingReduce Environmental Impact
ClassificationSocial​
Society		 Materiality: ProcessEnsure Process Safety and Disaster Prevention, Occupational Health and Safety
Materiality:Ensure chemical Safety and Enhance Product Quality
MaterialityRespectRespect for Human Rights
Materiality:Foster a Corporate Culture That Meets Employee Needs
MaterialityResponsiblePromote Sustainable Procurement
ClassificationGovernance​
Governance		 MaterialityStrengthen Foundation for Group Governance and Compliance

Monitoring Materiality

The progress toward identified materiality is regularly monitored alongside defined KPIs and targets. Regular evaluations are conducted at the Sustainable Management Committee, and the Board of Directors provides oversight.

Materiality Aimed at Achieving Growth of the Daicel Group and Value Co-creation

Sustainable Product

Contributing to Beauty and Health
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Providing solutions for the pharmaceutical and medical markets Number of our chiral columns used in pharmaceutical analysis methods*1 FY2026/3: 95 cases (cumulative) 113 cases (cumulative) 124 cases 124 cases
Providing sustainable cosmetic raw materials and health food Total number of people provided with functional  food ingredients per year FY2026/3: 2.23 million (twice the FY2021/3 figure)  1.69 million people 1.62 million people 205 million people
Contribute to the Smart Society
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Providing solvents for semiconductor processing and polymers for resists New product rate of safe, high-boiling point solvents essential for advanced semiconductor manufacturing processes*2 FY2026/3: 23.9% 7.7% 8.4% 11.0%
Provide Safety and Security for Society
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Providing products that ensure the safety and security of mobility Average number of our safety devices installed per vehicle*3 FY2026/3: 3 units/vehicle 2.2 units/vehicle 2.2 units/vehicle 2.4 units/vehicle
Diversified small mobility*4 devices and new safety devices to prevent home accidents*5 put on the market FY2026/3: New safety device proposals, with a total of 2 cases by FY2031/3
FY2030: 2 cases		 New business proposals: 2 cases New business development initiatives: 2 cases New business development initiatives: 2 cases
Provide Environment-Friendly Materials and Technology
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Providing materials and technology that reduce environmental impact, such as environment-friendly plastics Rate of recyclable raw materials*6 used in products FY2031/3: 30% or more 15.8% 16.5% 17.8%
Production volume of environment-friendly (highly biodegradable, etc.) cellulose acetate FY2026/3: 10,000-20,000 tonnes/year 7,625 tonnes/year 8,282 tonnes/year 5,520 tonnes/year

Sustainable Process

Contribute to the Development of a Circular Society 
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
  • Building Biomass Value Chain
  • Reuse of waste and CO2​
 Number of external proposals for resource recycling systems using natural materials FY2026/3: 3 cases 1 case 1 case 3 cases
Response to Climate Change
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Reduction of GHG emissions through production innovation, energy innovation, and process innovation GHG emission reduction rate of our Group Scope 1 and 2
FY2031/3: 50% reduction (compared to FY2019/3)		 2.3% reduction 1.0% reduction 7.9% reduction

Sustainable People

Promote DE&I
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Creating a workplace where everyone can work with energy, regardless of their gender, age, nationality or disability Ratio of women in management positions*8 FY2026/3: 10% or more 5.6% 6.3% 7.6%
Ratio of persons with disabilities that have been with the company more than three years*8 (1 - persons with disabilities that left the company in three years after joining / total number of employed persons with disabilities) × 100 Sustain 95% or more 97.4% 100% 100%
Support Personal Growth
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
  • Personnel development for honing expertise
  • Framework to support employees who take on challenges
  • Building highly fair evaluation systems
 Status of initiatives for personnel development, review of human resource system, introduction and review of career seminars or management training for department managers*8 Disclose results
  • Strengthened system to support employees' career autonomy
    • Implemented age-specific career training
    • Launched an expertise development program for talent cultivation of administrative personnel
    • Introduced coaching training for department managers
    • Offered AI training
  • Continued strengthening system to support employees' career autonomy
  • Introduced career support expenses (30,000 JPY/person)
  • Planned and implemented training for managers
Continued implementation of existing initiatives and launch of the following new initiatives in FY2026/3
  • Strengthen assessment training to promote meaningful dialogue between supervisors and subordinates and align them on their goals and direction through performance reviews
  • Launched the design of a program to visualize the areas of expertise held by administrative employees
  • Started considering the introduction of additional programs in the age 35 and 45 categories of the age-specific career training program

Materiality Related to the Foundations of the Daicel Group’s Continuity and Governance

Environment

Reduce Environmental Impact
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Promotion of waste reduction and recycling Percentage of industrial waste recycled by our business sites and domestic Group companies FY2026/3: 99% or more 98.0% 98.4% 98.0%

Social

Ensure Process Safety and Disaster Prevention, Occupational Health and Safety
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Elimination of process incidents Number of serious occupational accidents*7 Continue 0 (zero) cases 1 case 0 cases 1 case
Number of serious process safety incidents*7 Continue 0 (zero) cases 0 cases 0 cases 0 cases
Minimization of damage based on crisis assessments Percentage of safety training held based on past incidents (occupational accidents and process safety incidents)*8 Continue to 100% 100% 100% 100%
Ensure Chemical Safety and Enhance Product Quality
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
  • Reinforcement of quality management to prevent recurrence of quality defects
  • Centralized management and sharing of chemical substance information
 RC-related regulation audit rate*8 Continue to 100% 100% 100% 100%
Number of violations of chemical regulations Continue 0 (zero) cases 0 cases 0 cases 0 cases
Number of problems caused by product safety Continue 0 (zero) cases 0 cases 0 cases 0 cases
Rate of initial response to customer complaints within 24 hours*9 FY2026/3: 100% 89.0% 87.4% 92.0%
Rate of completion of customer briefings within 25 days FY2029/3: 100% (Initiative from FY2025/3) 70% 81.0%
Respect Human Rights
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
  • Establishment and implementation of human rights due diligence
  • Development of a framework for corrective actions, and employee education
 Rate of progress in annual plans for human rights due diligence targeting the Daicel Group FY2026/3: 100% 75.4%
(FY2020/3–FY2024/3) (19 out of 19 domestic Group companies, 24 out of 38 overseas Group companies)*10		 88.7%
(FY2020/3–FY2025/3)
(19 out of 19 domestic Group companies, 28 out of 34 overseas Group companies)*10		 100%
(FY2020/3–FY2025/3)
(19 out of 19 domestic Group companies, 34 out of 34 overseas Group companies)*10
Rate of progress in annual plans for human rights due diligence targeting suppliers Continue to 100% （Conducted human rights due diligence for domestic and overseas suppliers, followed up with suppliers on identified issues and improved 50 cases） 100% 100%
Foster a Corporate Culture That Meets Employee Needs
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Shortening of working hours and improvement in the annual paid leave acquisition ratio Rate of continuous paid leave taken*8 (a five-day consecutive leave once per year) FY2026/3: 100% 72.2% 69.2% 68.7%
Support for flexible work styles Percentage of male employees who have taken parental leave*8 FY2026/3: 100% 89.8% 94.1% 100%
Promotion of employee health Status of efforts to promote employee health*8 Disclose results
Through the continued implementation of the following initiatives, we have obtained the certifications listed below
  • Organized an “Employee Wellness Promotion Center” as a health management organization that promotes the mental and physical health of each employee on four different levels: Company-wide, by business site, by workplace, and individually
  • Promoted health management aimed at the physical and mental health of each and every one of our employees and their families, business partners, and local residents by holding sports events, etc.
  • Expanded babysitter subsidy benefits
  • Distributed and utilized "Guidance for Taking Parental Leave" to eligible employees and their supervisors
  • Recognized as a "Certified Health & Productivity Management Outstanding Organization (White 500)" for the seven consecutive year
  • Certified as a "Sports Yell Company" for the third consecutive year
  • Certified as a “Sports Yell Company (Parasports Category)” (newly established) in recognition of our efforts to promote parasports and foster understanding of them
Promote Sustainable Procurement
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Improvement of CSR levels across the supply chain

Sustainable procurement rate (new item set in FY2025/3)

Implement FY2025/3 version of SAQ and achieve 100% rate of suppliers (2) that meet standards (1) of our Group.

  • (1)
    Benchmark points (4 points or higher for 9 key items; 3 points or higher for 24 other items)
  • (2)
    Suppliers accounting for over 85% of purchasing value and suppliers of critical raw materials
  • *
    The following old KPI was achieved in FY2024/3 (past targets/performance are shown in parentheses)"Percentage of raw fuel suppliers who meet our benchmark points as a result of SAQ"
    ​
    ​
 FY2026/3: 100%
(FY2024/3: 100%)		 （100%） 62.0% 99.0%

Governance

Strengthen Foundation for Group Governance and Compliance
Can be scrolled horizontally
Details KPI Target FY2024/3 Results FY2025/3 Results FY2026/3 Results
Reinforcement of corporate governance Status of efforts to strengthen the supervisory function by the Board of Directors
Evaluation target of the Board of Directors by Outside Directors and Outside Audit & Supervisory Board Members: (out of 5 points)		 Average of 4.0 points or above 4.4 points 4.3 points 4.3 points
Rate at which legal checks are made and response measures taken for material matters requiring executive decisions Continue to 100% 100% 100% 100%
  • Enforcement of thorough compliance
  • Strengthening of risk management
 Number of issues reported to the Help Line Disclose results 102 cases 126 cases 161 cases
Percentage of executives and employees who know how to use the Help Line System and can contact the Help Line when they discover compliance violations*11 ( = percentage of employees who have taken Help Line reporting training) FY2026/3: 100% 18% (1,074 personnel) 97.0% (5,988 personnel) 99.6%  (6,251 personnel)
  • *1
    Targets: Pharmacopoeias in Japan, the U.S. and Europe
  • *2
    Highly safe high boiling point solvents: Solvents for electronic materials with high solubility and low toxicity such as MMPGAC
  • *3
    Targets: Products for Japanese automakers
  • *4
    Bicycles, mobility scooters, electric kick scooters, etc.
  • *5
    Drowning while bathing indoors, infant suffocation, falls, etc.
  • *6
    Recyclable raw materials: biomass raw material, use of atmospheric CO2, reuse of waste, and recycling
    Scope: Main resin materials of Daicel, Polyplastics Co., Ltd. (integrated into Daicel in April 2026) and Daicel Miraizu Ltd.
  • *7
    Scope: Daicel’s business sites
  • *8
    Scope: Daicel Corporation
  • *9
    Scope: Domestic manufacturing sites of Daicel Corporation
  • *10
    The base number of Group companies represents the companies that are candidates for human rights due diligence as of April of the relevant year.
  • *11
    Daicel and domestic Group companies
Sustainability
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