Engagement with Society

Respect for Human Rights

Policy

Initiatives

Sustainable Procurement

Management System

Supplier Evaluation and Guidance for

Improvement

Participating in Initiatives

Human Resources Management

Management System

Human Resources Development

Evaluation / Compensation

Employee-friendly Working Environment

Diversity

Global Human Resources Strategy

Social Activities

Management System

Laboratory Classes on the Wonders of

Chemistry

Nurturing Future Generations

Environment

Support for Employees' Participation in Social

Activities

Disaster Relief

Working in Harmony with Local Communities

Respect for Human Rights

Policy

Initiatives

Policy

The Mitsui Chemicals Group Human Rights Policy

This Mitsui Chemicals Group Human Rights Policy (the "Policy") establishes specific guidelines concerning respect for human rights in the Mitsui Chemicals Group.

Basic philosophy

Respect for human rights is an essential element of developing business activities globally.

We at the Mitsui Chemicals Group signed the United Nations Global Compact in January 2008, endorse the aims of the UN Universal Declaration of Human Rights, the ILO (International Labour Organization) Declaration on Fundamental Principles and Rights at Work and the UN Guiding Principles on Business and Human Rights, and emphasize respect for human rights.

Pursuant to the Mitsui Chemicals Group Action Guidelines, we practice "Always Act in Good Faith," "For People and Society" and "Dream-Inspiring Innovation" as a corporate citizen. Furthermore, we are aware of our environmental and social responsibilities along the entire supply chain, encourage each other to respect the Policy, and aim to be a corporate group that enjoys the confidence of society for its fair corporate activities.

Respect for human rights

As an essential matter for developing business activities globally, we respect human rights and aim at becoming a corporate group that enjoys the confidence of society for its fair corporate activities based on the awareness of the common standard stated in Article 1 of the UN Universal Declaration of Human Rights "All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood."

Prohibition of discrimination

Under no circumstances shall we engage in discrimination whatsoever based on race, national origin, birthplace, social origin, caste, family lineage, religion, disability, age, gender, sexual orientation, gender identity, family background, marital status, membership of unions, political views, or any other differences.

Respect for basic labor rights

We respect workers' rights to organize and bargain collectively and other basic labor rights.

In addition, we shall foster labor-management trust and cooperative relations through frank dialogues and mutual understanding and solve labor-management issues voluntarily and peacefully.

Prohibition of forced labor and child labor

We never use forced labor and child labor in any of our business activities in any of the countries and regions in which we operate.

Prohibition of harassment

Under no circumstances shall we engage in sexual harassment, power harassment, maternity harassment or other harassment actions that hurt the dignity of individuals.

Respect for privacy

We respect privacy of individuals and endorse the aims of the OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data and handle personal information appropriately in accordance with the relevant laws of the respective countries.

Prevention of human rights violation

We shall endeavor to avoid causing any human rights violation and or indirectly creating adverse human rights impacts through our business activities.

In addition, through all the stakeholders involved in our business activities, we shall work to prevent or mitigate adverse human rights impacts.

Initiatives based on the concept of human rights due diligence

We are committed to acting based on the concept of human rights due diligence which requires the identification of human rights violations and indirect impacts or risks that may lead to human rights violations, their prevention or mitigation, and accountability for how to respond to the violations.

Response to human rights violations

In the event of a human rights violation or indirect adverse human rights impact which is produced by our business activities, we shall promptly devise corrective measures or cooperate with a third party in taking measures.

End.

Respect for Human Rights

Policy

Initiatives

Initiatives

Through a variety of activities regarding human rights, the Mitsui Chemical Group is aiming to "pursue thorough safety, high quality, and fairness across the entire supply chain" as one of its declared goals in the 2025 Long-term Business Plan.

Survey on Human Rights Challenges That Should be Taken into Consideration

In the countries in which the Mitsui Chemicals Group maintains a presence, there are a number of challenges pertaining to human rights, reflecting conditions of local politics, the economy and society. In addition, in line with changes to those conditions, the challenges themselves will at times also be impacted. At each of the Group's sites, consideration into such human rights challenges is something that cannot be overlooked. In order to gain a grasp of the human rights challenges that arise from each region around the globe that we should consider as a Group, we reference information from the United States State Department's "Country Reports on Human Rights Practices" and "Trafficking in Persons Report" as well as survey materials such as "Human Rights Watch World Report" and "Transparency Corruption Perceptions Index" from NGOs and other organizations involved in human rights, and conduct investigations of challenges with regard to regional human rights where the Group's business sites exist. According to the reference survey materials, there are various issues in each region, such as discrimination in employment and work, working conditions, forced labor and child labor, human rights violations against foreign workers and involvement in corruption. There are also such issues in the supply chain (raw material suppliers, subcontractors, processing subcontractors, logistics partners, etc.). The global pandemic brought on by COVID-19 has become a major issue for the Group and its global business operations. The impact is not limited to operation of our global supply chain but also to potential human right issues in various parts of the world which we believe our Group cannot ignore. In the future, the Group will define priority regions, and identify challenges associated with human rights that business sites should take into account.

Consideration for Human Rights within Mitsui Chemicals

At each type of training session, we entrench awareness for human rights by studying the Mitsui Chemicals Group Action Guidelines and The Mitsui Chemicals Group Human Rights Policy and educate attendees on a number of issues, such as discrimination and harassment. To facilitate a deeper understanding of the basic principles of business and human rights, in fiscal 2019 we introduced the "Business and Human Rights e-Learning" series published by the Asia-Pacific Human Rights Information Center and Amnesty International Japan. Also, reports and consultation on human rights are received on the Risk Hotline and at the harassment consultation services.The business audit by the Internal Control Division includes an internal audit process based on self-assessment of internal controls utilizing the compliance checklist. The compliance checklist includes items related to compliance with the related laws and regulations, prevention of bribery and corruption, harassment, appropriate handling of personal information and human rights issues such as discrimination, forced labor and child labor. The checklist is revised every year.

Mitsui Chemicals participates in the subcommittee concerning human rights of the Global Compact Network Japan. This subcommittee provides the forum to learn about and deliberate on a wide range of issues pertaining to human rights on a global scale in conjunction with human rights NGOs and participating companies. In addition to deepening its understanding toward human rights issues, the Mitsui Chemicals Group will draw its participation in the subcommittee to bolster its awareness activities.

Human Resources Management

Occupational Health

Safety and Prevention

Consideration for Human Rights in Investment Activities

The Mitsui Chemicals Group undertakes substantial investments as a part of its business development activities. When selecting an investment, a meeting is held to consider any related human rights issues. As a part of the Group's due diligence, steps are also taken to assess the impact of human rights concerns in the context of each country's statutory and regulatory requirements regarding the use of labor.

Taking Human Rights Issues into Consideration along the Supply Chain

While advocating the promotion of environmental activities and social responsibility along its entire supply chain, the Mitsui Chemicals Group is equally committed to respecting the human rights of all of its stakeholders who are in some way linked to the Group's business activities.

For example, we have clearly set out our expectations of suppliers in the Mitsui Chemicals Group Purchasing Policy and the Mitsui Chemicals Group Sustainable Procurement Guidelines. Under these pollicies, we place considerable importance on respect for human rights, fair working conditions and a good work environment, reduction in environmental impact, compliance with laws and regulations, social norms and considerations for those in the supply chain. When we begin a new business arrangement and with ongoing suppliers, depending on the nature of the business, we conduct regular checks on the supplier's efforts through our sustainable procurement Self-assessment Questionnaires (SAQ). We use the questionnaire results to provide feedback to suppliers and to support their efforts to improve. In addition, we have also extended our Risk Hotline so that it is now accessible to suppliers and are determined to keep on building stronger partnerships in the future. The Mitsui Chemicals Group works diligently to ensure equal opportunity and transparency while maintaining and promoting fair and equitable business practices.

Supplier Evaluation and Guidance for Improvement

Participation in Human Rights Due Diligence Workshop

Through dialog with companies, NPOs/NGOs and knowledgeable experts, the Mitsui Chemicals Group deepens its understanding of the contexts in which human rights challenges occur as well as the relationship between business activities and human rights. We then consider what are the important human rights issues for us and business activities considering these issues, and work to utilize that understanding in our corporate activities.

The Group participated in the Human Rights Due Diligence Workshop organized by Caux Round Table Japan (CRT Japan). The program holds discussions, conducted by companies, NGOs/NPOs and knowledgeable experts, geared

toward the human rights due diligence called for under the United Nations Guiding Principles on Business and Human Rights. The 2019 program examined the background to human rights issues in the following areas: forest conservation and sustainable use, water and public sanitation, sexual orientation and gender identity, plastic waste issues, technology innovation, privacy and data distribution, rights of children and business, migrant workers, etc., and identified important human rights issues in each industry, employing the human rights guidance tools formulated by the UNEP Finance Initiative.

2019 Human Rights Due Diligence Workshop (Stakeholder Engagement Programme)PDF1.2MB

Sustainable Procurement

Management System

Supplier Evaluation and Guidance for

Improvement

Participating in Initiatives

Management System

Policy and Basic Approach

The Mitsui Chemicals Group engages in purchasing activities based on the Mitsui Chemicals Group Purchasing Policy. The policy incorporates a sustainable procurement perspective, in addition to conducting fair and honest transactions. In terms of procurement activities described in the Mitsui Chemicals Group Sustainable Procurement Guidelines, the Mitsui Chemicals Group has defined assignments on which to work with the full cooperation of our suppliers toward fulfilling our environmental and social responsibilities across the entire supply chain from a global perspective.

Mitsui Chemicals Group has established basic rules for purchasing as part of its global policy. The practical application of these rules ensures fair and law-abiding procurement for the Group at the appropriate terms, quality and pricing, and ultimately ensures compliance with laws and maintains and strengthens the Group's competitiveness.

The Mitsui Chemicals Group Purchasing Policy

The Mitsui Chemicals Group recognizes that all its suppliers are good partners and endeavors to trade with them fairly and in good faith in the hope that both the Group and its suppliers will achieve sustainable development.

The Mitsui Chemicals Group also tackles issues, with a global perspective, including environmental, social and corporate governance issues, across the entire supply chain, aiming to achieve sustainable procurement.

The Mitsui Chemicals Group is committed to conducting purchasing activities in accordance with this Group Purchasing Policy.

1. Ensuring compliance

We will conduct purchasing activities in compliance with the applicable laws and regulations and appropriate social practices of the regions and countries in which we operate.

We will also require the same level of compliance from our suppliers.

2. Equal opportunity and transparency

We will be open in choosing our suppliers, and will offer equal opportunity for fair trade in good faith.

3. Selection of suppliers from the viewpoint of "sustainable procurement"

In the interests of building stronger partnerships, we will give priority to the following criteria.

  • (1) Suppliers that respect human rights, prohibit discrimination, and do not engage in any acts which violate human rights

  • (2) Suppliers that ensure fair working conditions and provide a safe and healthy working environment Suppliers that prohibit forced labor, prohibit child labor and discrimination in hiring

  • (3) Suppliers that are aware of environmental issues and are committed to solving and addressing them

  • (4) Suppliers that conduct fair corporate activities based on a sound management practices

  • (5) Suppliers whose performance in areas such as pricing, quality, and delivery term are at an adequate and reasonable level, and endeavor to maintain and improve their performance

* See the Mitsui Chemicals Group Sustainable Procurement Guidelines established by Mitsui Chemicals for further details.

Revised on February 1, 2019

System and Responsible Officers

With the officer in charge of the Purchasing Division as the responsible party, the Purchasing Division formulates and implements plans related to sustainable procurement for purchases made by our Group (Purchasing Division, major business divisions, and domestic and overseas affiliates).

To realize sustainable procurement, the Purchasing Division regularly checks the status of our suppliers by conducting sustainable procurement SAQ surveys and audits.

Progress of the sustainable procurement activity plan and results is monitored in the monthly division meetings, and follow-ups are reflected in plans for the next fiscal year. In addition, we check the status of sustainable procurement activities during annual audits conducted by corporate auditors and the Purchasing Division.

Goals and Results

KPI

Scope

FY2019

Medium to Long-Term

Goals

Results

Level Achieved

Goals

Sustainable procurement ratio*

Mitsui Chemicals Group

70% (FY2025)

Mitsui Chemicals, Inc.By Purchasing Division and major business divisions

44%

Mitsui Chismicals, Inc. Purchasing Division

84%

* Sustainable procurement ratio:

The sustainable procurement SAQ response rate from suppliers (transaction value basis). Feedback and improvement assistance are provided to suppliers based on the response results.

The Mitsui Chemicals Group Sustainable Procurement Guidelines

The Mitsui Chemicals Group aims for sustainable growth with society through initiatives for solving social challenges by upgrading its triple bottom line management with a focus on the economy, environment and society. Based on this concept, we practice "Always Act in Good Faith," "For People and Society" and "Dream-Inspiring Innovation" as set forth in the Mitsui Chemicals Group Action Guidelines when conducting our business activities.

In the procurement activities, we believe that it is important to forge powerful relationships with our suppliers to fulfill environmental and social responsibilities in the entire supply chain from a global perspective. We also recognize that these initiatives will contribute to the mutual and sustainable development of our suppliers and the Mitsui Chemicals Group.

In light of these factors, the Mitsui Chemicals Group has created tasks that we would like to work on with the full cooperation of our suppliers in the Mitsui Chemicals Group Sustainable Procurement Guidelines. We would like to have the understanding and support of each our suppliers for these Guidelines and request that they undertake the initiatives described below.

Corporate Governance

  • 1. Sound corporate management

    Establish an organizational system for sound corporate management through in-house control systems and structures for ensuring the effectiveness and efficiency of business operations as a corporation, the reliability of financial reports, compliance with laws and regulations applicable to your business activities and the protection of assets.

  • 2. Accountability

    Appropriately distribute the financial and non-financial information to inside and outside the company based on the recognition of accountability to society and stakeholders.

Human Rights

  • 1. Respect for human rights and prohibition of discrimination

    Support and respect the protection of human rights proclaimed internationally. Moreover, never under any circumstances engage in any discrimination whatsoever based on race, national origin, birthplace, social origin, caste, family lineage, religion, disability, age, gender, sexual orientation, gender identity, family background, marital status, membership of unions, political views or other differences.

  • 2. Prevention of human rights violations

    Endeavor to avoid causing any human rights violations and indirectly creating adverse human rights impacts through your business activities. In addition, work to prevent or mitigate adverse human rights impacts through all stakeholders involved in the course of your business activities.

Labor

  • 1. Provision of equal opportunities

    Equally provide employees with opportunities for personal career growth through human resources development initiatives. Moreover, provide equal opportunities for employment to human resources with motivation and ability.

  • 2. Payment of proper wages

    Observe the statutory minimum wage in countries and regions where your business activities are conducted. In addition, endeavor to establish wages by giving due consideration to the improvement of employees' personal growth and their motivation.

  • 3. Fair application of working hours and leave of absence

    Observe the labor hours prescribed in laws and regulation of countries and regions where your business activities are conducted. In addition, grant workers the right to take paid vacation.

  • 4. Prohibition of forced labor

    Guarantee that employees are free to separate from the service at their own discretion as all work is voluntary.

  • 5. Prohibition of child labor

    Never employ children who are under the legal working age in countries and regions where your business activities are conducted. In addition, never assign such jobs that impair children's health, safety and morality.

  • 6. Respect for basic labor rights

    Respect employees' rights to organize and bargain collectively and other basic labor rights.

  • 7. Advance management of occupational safety and health

    Grasp the risk of an accident occurring at work and the risk of exposure to chemical substances hazardous to the human body, noise, foul odors and so on and ensure a safe and healthy work environment. In addition, take measures with due care for employees' mental health.

Environment

  • 1. Management of chemical substances

    Manage chemical substances contained in products in accordance with standards prescribed in laws and regulations.

  • 2. Reduction of environmental load

    Endeavor to reduce environmentally harmful substances released into the air, water and soil (including greenhouse gases) by setting levels equal to those required by laws and regulations or independent targets exceeding the required levels.

  • 3. Efficient use of resources

    Promote efficient use of energy, water, raw materials and other resources by setting independent targets.

  • 4. Waste management

    Take responsibility in the disposal or recycling of waste materials by setting independent targets.

  • 5. Biodiversity conservation

    Promote biodiversity conservation by reviewing the direct and indirect impact of your business on ecosystems.

Risk Compliance

  • 1. Corruption prevention

    Maintain sound relationships with local administration authorities and public officials where your business activities are conducted, by managing the reception thereof to prevent corruption.

  • 2. Prevention of offering or accepting improper advantage to or from customers, suppliers and so on

    Maintain sound relationships with customers, suppliers and so on by avoiding excessive gift-giving, entertainment and collusive relationships regarding marketing and purchasing activities.

  • 3. Prevention of non-compliance with competition laws

    Prevent unfair trading, including bid-rigging, cartels and abuse of dominant bargaining position.

  • 4. Elimination of anti-social forces

    Eliminate any relationship with organized crime groups, corporate racketeers and other anti-social forces and never provide any benefits to anti-social forces.

  • 5. Respect for third parties' intellectual property

    Respect third parties' patents, copyrights, trademarks and other intellectual properties and prevent unauthorized use thereof.

  • 6. Establishment of contact points for complaints and consultations

    Develop a system to allow for an individual who came to know important risk information to directly report and consult with an internal dedicated division or external contact points. Moreover, ensure that confidentiality of the individual who made said reporting or consultation will be strictly maintained and that the individual will never suffer prejudicial treatment.

  • 7. Establishment of a system for business continuity plan (BCP)

    Develop a system to ensure the continuity of important operations and business or early restoration in case of a disaster.

  • 8. Management of confidential information and protection of personal information

    Properly manage confidential information of customers, suppliers, one's own company and so on to prevent leakage

thereof. In addition, implement proper management and protection of personal information of customers, suppliers, one's own company and so on.

Quality and Safety

  • 1. Ensuring quality and safety of products and services

    Provide products and services that meet laws and regulations and safety standards established in countries and regions where your business operations are conducted and that satisfy quality standards required in advance.

  • 2. Appropriate response to defects arising in products and services

    Implement prompt information disclosure and notify the competent authorities in the event that an accident occurs with regards to products and services or that defective products are distributed. Moreover, implement a product recall and develop a system for formulating measures to ensure the safety of supply destinations.

Supply Chains

  • 1. Basic stance for supply chains

    For the purpose of fulfilling social responsibilities across the entire supply chain, endeavor to ensure that not only one's own company but also suppliers are fully aware and comply with the significance of sustainable procurement.

  • 2. Responsible procurement of raw materials

    Never purchase or use raw materials containing any gold (Au), tantalum (Ta), tungsten (W) and tin (Sn) that are conflict minerals related to inhumane acts by local armed groups in the Democratic Republic of the Congo and its neighboring countries.

Communication with Local Communities

1.

Contribution to local communities

Respect the culture and customs in countries and regions where your business activities are conducted and perform activities to contribute to the sustainable development of local communities.

End.

Sustainable Procurement

Management System

Supplier Evaluation and Guidance for

Improvement

Participating in Initiatives

Supplier Evaluation and Guidance for Improvement

When commencing transactions with new suppliers, as well as periodically with our current suppliers depending on transaction details, the Mitsui Chemicals Group verifies their efforts towards realizing a sustainable society. This involves confirming a wide range of specific items that include environmental protection, occupational safety, quality assurance, corporate governance, fair transactions, human rights, and information security. In addition, we evaluate supplier companies based on the results of these surveys and offer guidance on making improvements, as needed. When such surveys and audits identify any significant discrepancies, a penalty, such as suspension of transactions, is imposed according to the penalty criteria. Please note that the contract terms for raw materials and equipment have been revised with the amendment of the Civil Code of Japan in April 2020.

Transaction Procedures

Sustainable Procurement Survey

The Group has adopted the CSR/Sustainable Procurement Self-assessment Questionnaire (SAQ)

*

drafted by theUN Global Compact Network Japan supply chain subcommittee meeting as the Sustainable Procurement SAQ format used to request responses from suppliers. This SAQ was drafted to conform with the UN Global Compact's 10 principles and international regulations such as ISO 26000 and GRI. Although the Group already requests that our suppliers meet the requirements of the Sustainable Procurement Guidelines , it is the SAQ that specifically defines the details of these requirements.

Mitsui Chemicals requires that suppliers complete the SAQ, and provides feedback and improvement assistance to suppliers based on the response results. In addition, the SAQ completion rate (Group-wide transaction value basis) has been included as one of the KPI within the 2025 Long-term Business Plan as the sustainable procurement ratio.

* Partial excerpt from the CSR/ Sustainable Procurement SAQ tool set of the helpful series aimed at realizing global sustainable development published by Global Compact Network Japan.

An SAQ survey of Purchasing Division suppliers* was conducted from fiscal 2017 to fiscal 2019. Responses were received from 307 companies that account for roughly 90% of our transaction value.

In fiscal 2018, we created a guidebook for the sustainable procurement SAQ. This guidebook is submitted to suppliers whose SAQ score was less than 70% in order to help them deepen their understanding of the aims of the questionnaire. In our guidance visits to suppliers whose score was less than 40%, we used this guidebook to take account of the differing situations of each company in their SAQ responses. As a result, their understanding on reflecting the efforts made into the SAQ response and the scores of all the companies that received guidance visits have improved to 40% or more. We requested these suppliers to continue their efforts for further improvement.

* Purchasing Division suppliers: 510 suppliers of raw materials; 3,028 suppliers of equipment and indirect materials (as of May 2020)

In fiscal 2019, an SAQ survey covering suppliers to our business divisions and domestic affiliates (subsidiaries) was started following briefings on sustainable procurement conducted for our business divisions and affiliates. This survey is a preliminary study for a survey that was originally planned for 2021 aimed at accelerating sustainable procurement and equalizing workloads.

Sustainable procurement SAQ results (Fiscal 2017-19)

SAQ score levels

No. of Companies

Actions for improvement

Level 3 (Score 70% or higher)

223

Feed back comments along with information about average score of all companies, industry average, and chart of company scores.

Level 2

(Score 40% or higher to less than 70%)

70

Submit a guidebook for the SAQ and request corrections by the next survey (2021).

Level 1 (Less than 40%)

14

Visit company premises and exchange opinions towards improvement, as well as explain the intention of SAQ using a guidebook for the SAQ. Also, request resubmission of questionnaire answers.

Total no. of responses

307 (Response rate: 90%)

Sustainable procurement ratio

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2025 (Goals)

Purchasing Division transaction value basis

73%

84%

84%

Mitsui Chemicals, Inc. transaction value basis

39%

44%

44%

Mitsui Chemicals Group transaction value basis

70%

Sending Reminders to Our Suppliers

In fiscal 2016, Mitsui Chemicals sent reminder letters to around 2,600 Purchasing Division suppliers containing the following items. Then, in fiscal 2018, we held briefings in companies affiliated to our works on these items, as well as distributing reminder letters. We also submitted letters rejecting any gifts to all suppliers of the Purchasing Division.

Examples of previous discrepancies

Request items for each supplier

Compliance with laws and social norms from a sustainable standpoint

Avoid engaging in direct price negotiations with requesting divisions regarding transactions overseen by the Purchasing Division

Formulate BCPs (business continuity plans)

The Mitsui Chemicals Group Purchasing Policy details and Risk Hotline reminder

Policy on Conflict Minerals

We are fully aware of the essential need to address so-called conflict minerals here at the Mitsui Chemicals Group. In fiscal 2015, the Purchasing Division conducted an investigation covering all raw materials except fuels and packaging materials transactions taken in fiscal 2014. As a result, we have confirmed that we do not purchase or use any conflict minerals associated with inhumane acts committed by armed groups on the ground in the Democratic Republic of Congo or any of its neighboring countries. That includes gold (Au), tantalum (Ta), tungsten (W) and tin (Sn). If it comes to light that we have used any conflict minerals in the future, we will immediately halt procurement of the relevant minerals.

In addition, the Purchasing Division and RC & Quality Assurance Division are working together every year to conduct conflict mineral surveys of our suppliers by identifying tin catalysts, etc., within those Group product compositions that are registered in the chemical product safety information system. The surveys confirmed that there are no issues with the minerals we use.

The sustainable procurement SAQ includes a category for confirming conflict mineral-related activities.

Internal Training

In fiscal 2016, Mitsui Chemicals conducted sustainable procurement training targeting all of its Purchasing Division employees. Since this time, this training has been included as one of the required elements of procurement training for all newly appointed members. In fiscal 2018, we provided a training program on the items covered in the sustainable procurement SAQ to all Purchasing Division employees to ensure their understanding of the aims of the SAQ. In fiscal 2019, we explained the sustainable procurement SAQ to purchasing personnel in our business divisions and domestic affiliates (subsidiaries). 'Quality audits' was added to the study items in the Purchasing Division's e-learning program for fiscal 2020 aimed at building a system capable of auditing suppliers with greater accuracy and from a more advanced perspective.

We have also made it mandatory for purchasing staff members working outside the Purchasing Division to take an e-learning course on procurement rules, and conduct regular group training every year. In fiscal 2020, we revised the content of the e-learning course on procurement rules.

Sustainable Procurement

Management System

Supplier Evaluation and Guidance for

Improvement

Participating in Initiatives

Participating in Initiatives

Participating in ESG Information Sharing Platforms and Acquiring Supply Chain Certification

The Group is participating in platforms Sedex, EcoVadisthat aim to improve corporate environmental and social practices within the supply chain through the sharing of information relating to these practices. Moreover, Mitsui Chemicals has acquired RSPO (Roundtable on Sustainable Palm Oil) supply chain certification.

EcoVadis Awards Mitsui Chemicals Gold Rating in Sustainability for Third Consecutive Year

RSPO Certification

Participate in UN Global Compact Network Japan Supply Chain Subcommittee Meetings

Mitsui Chemicals has been participating in UN Global Compact Network Japan supply chain subcommittee meetings since fiscal 2013. As part of its efforts together with participating companies to improve sustainable procurement throughout the supply chain, Mitsui Chemicals has been involved in drafting industry-wide Self-assessment Questionnaires (SAQs), exchanging opinions with NGOs and experts, and raising awareness of these efforts among other organizations and companies.

Moreover, the following concepts for drafting the questionnaire were stated at the UN Global Compact Network Japan supply chain subcommittee meeting. Sharing these ideas, the Group has taken the initiative in adopting the SAQ to improve sustainable procurement not only in its own supply chain but throughout society and along with other participating companies.

Hold discussions on equal treatment for companies that comprise supply chains regardless of the size of management resources (personnel, assets, funds); sustainable procurement is becoming important for creating asustainable society.

Foster a shared vision, mutual understanding/growth based on SAQ responses from all companies that comprise the supply chain, while aiming to make SAQs a baseline by making them easy to understand, user friendly, andopen-ended in order to implement sustainable procurement on a global level.

Take steps to facilitate the channeling of management resources toward improving internal and supply-chain sustainable procurement by sharing SAQs among suppliers and buyers while working to reduce workloads for both parties.

CERT/FICA TE CU-RSPO SCC-842870

Based on an audit according to the requirements stated in the RSPO Supply Chain Certification Systems, version November 2014 and a signed contract, Control Union Certifications herewith certifies that the facility(s) listed below are found to be in compliance with the RSPO Supply Chain Certification Systems, version November 2014. This guarantees that the criteria for processing RSPO certified palm oil products through one or more of the supply chain models as stated in the RSPO Supply

Chain Certification Systems have been met.

Name of ceified company

Mitsui Chemicals, Inc

Fu address ceied company

Shiodome City Center, 1-5-2 Higashi-shinbashi

105-7122 Minato-ku

Tokyo JAPAN

RSPO Number (if applicable)

4-0664-15-000-00

Other sites ceified (see annex 1)

RSPO registered parent company (if applicable)

RSPO member number parent company

Scope of assessment Procurement and processing of Fatty Acid Methyl Ester, including storage and selling as nonionic surfactant.

Start date ceifica 21-12-2015

iration date certicate 20-12-2020

Date of first RSPO ceification 21-12-2015

Ceificate number Supply chain modelCU-RSPO SCC-842870

ldeoUty P,eser,ed (IP)

Mass Balance (MB)

Segregation (SG)Authorised signato name Ms. N Atiqah

Issued by

Date of issue: 21-12-2015

On behalf of the Managing Director

Control Union Certifications Meeuwenlaan 4-6, P.O. Box 161, 8000 AD ZWOLLE

Authorised signature

c: 1F

The Netherlands tel.: +31(0)38 426 01 00http://www.controlunion.comcertifications@controlunion.com

Control Union Certifications is accredited to provide RSPO Supply Chain Certification on 06/06/2014 (RSPO-ACC-014)

This certificate including the annex remains the property of Control Union Certifications and can be withdawn in case of terminations as mentioned in the licensee contract, or in case changes or deviations of the above-mentioned data occur. The licensee is obliged to inform CUC immediately of any changes in the above mentioned data.

Only an original and signed ceificate is valid.

Certificate version: C842870CU-RSPO SCC-01.2015

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Human Resources Management

Management System

Human Resources Development

Evaluation / Compensation

Employee-friendly Working Environment

Diversity

Global Human Resources Strategy

Management System

*

Please refer here for details regarding measures for employees' lifestyle-related diseases and mental health.

Policy and Basic Approach

As the world has become increasingly globalized in recent years, more than 40% of our employees now work overseas. Society requires companies to state how they will contribute to building a sustainable global society. We answer this question by generating the values required by society, and human resources (HR) is the key. There are two main challenges in global HR. The first is to secure human resources who will implement our business strategy. The second is to improve job engagement. The Group is implementing various measures to address these challenges.

The Human Resources Management Policy of the Mitsui Chemicals Group outlines our attitudes toward our employees as well as society including those individuals considering joining the Group. The Policy focuses on "maintaining a high regard for people," as stipulated in our Action Guidelines. This in turn enables the Company and its employees to stimulate and actively enhance one another as they work to create a better future. We will position the Policy as the cornerstone of the human resources initiatives of subsidiaries and affiliates all around the world, and aim to strike a balance between the sustainable growth of the Mitsui Chemicals Group and the happiness and self-fulfillment of our employees. Disclosed in Japanese, English and Chinese, the Policy covers the languages spoken by the majority of employees.

Human Resources Management Policy of the Mitsui Chemicals Group

  • 1. "Always Act in Good Faith"

    • 1. The Mitsui Chemicals Group will require employees to "act in good faith" as stipulated in "The Action Guidelines," highly appreciate such employees and offer an appropriate environment for them to give full rein to their strengths.

    • 2. Mitsui Chemicals will comply with all labor and employment laws wherever it operates.

    • 3. Mitsui Chemicals will disclose its rules and operate fairly and with justice according to the rules regarding recruiting, assignment, training, evaluation and compensation of employees without any discrimination against gender, race, nationality, age, religion and disabilities.

  • 2. "Maintain a High Regard for People and Society"

    • 1. Mitsui Chemicals will require employees to "have a high regard for people and society" as stipulated in "The Action Guidelines," highly appreciate such employees and offer an appropriate environment for them to give full rein to their strengths.

    • 2. Mitsui Chemicals will protect employees' safety and health in the workplace.

    • 3. Mitsui Chemicals does not tolerate any form of harassment, and in turn supports and respects the protection of human rights.

  • 3. "Dream-inspiring Innovation"

    1. Mitsui Chemicals will require employees to have the following attitudes and engage in certain behavior in order to pursue the dream-inspiring innovation as stipulated in "The Action Guidelines," highly appreciate such employees and offer an appropriate environment for them to give full rein to their strengths:

To take on challenges unflinchingly with full trust in our potential without fear of failure.

To create novel value by enhancing our sensitivity.

  • To consider and act proactively based on the actual data and facts at the workplace.

  • To aim to be world-class professionals with a global view.

  • To develop the future generation by passing on our experiences and technologies.

  • To integrate individual strengths into the organization through active communication.

The Company established three Core Values to capture the spirit of all employees working at Mitsui Chemicals Group sites all around the world and to act as a unifying force, ensuring that we are all working toward the same goals. The "spirit of challenge," "respect for diversity," and "teamwork" established in the Action Guidelines are each connected to the three core values of Challenge, Diversity, and One Team.

4. Mitsui Chemicals, based on the aforementioned, will conduct Human Resources Practices under the following policies:

Toward sustainable growth of the Company

Organization

Create an organization based on the strategy and allocate jobs in a way that accomplishes the strategy.

Recruiting

Carefully recruit human resources that contribute to the organization's growth.

Assignment

Proactively promote employees that yield fruitful results.

Training

Foster world-class professionals from a long-term perspective.

Evaluation

Evaluate achievement appropriately.

Compensation (Remuneration)

Build up and operate a competitive compensation system to control operating costs.

Toward the happiness and fulfillment of employees

Organization

Conduct job allocation in consideration of each personal motivation and capability.

Recruiting

Give equal opportunities for employment to any motivated and capable candidates.

Assignment

Allocate suitable jobs for employees so that they can exercise their motivation and capabilities.

Training

Support employees in making self-reliant efforts to become world-class professionals.

Evaluation

Conduct fair evaluation to enhance motivation and the capability of employees.

Compensation (Remuneration)

Build up and operate a competitive compensation system to secure motivated and capable human resources.

We also strive not to violate minimum wage regulations and working hours regulations on the basis of the laws and regulations stipulated by each country and region.

System and Responsible Officers

The Managing Executive Officer responsible for the Human Resources (HR) Division and the Global Human Resources Division takes this role.

The Human Resources Division plays a central role in setting the mid-term and fiscal year plans for human resources management while sharing and implementing those plans with the HR department at each business site, domestic and overseas subsidiaries, and affiliates. HR managers from each business site as well as domestic subsidiaries and affiliates and HR managers from our overseas regional headquarters periodically confirm and discuss the progress, which leads to the drafting and implementation of related policies. The priority issues of the fiscal year plans are reported to the director in charge on a quarterly basis. Important managerial issues are also discussed mainly by the Management Committee and the Key Talent Management Committee.

Furthermore, in order to draft and implement global HR policies, the Mitsui Chemicals Group has established the HR Development Advisory Committee (HRDAC), a virtual global HR organization under the general manager of the Global Human Resources Division that incorporates our HR managers together in Japan, Europe, the Americas and Asia. This organization is addressing a range of issues, such as (1) global HR marketing, (2) global HR development, (3) global mobility, and (4) global compensation/appraisal systems.

Human Resources Management System

Meeting of HR managers from

Twice a year

Overseas subsidiaries

regional headquarters (the

(Information gathering for

and affiliates

Americas, Europe, China and Asia-

quarterly reports is also

Pacific) (HRDAC)

conducted)

*

HRBP

Human Resources Business Partners. These are staff who assist in key talent management in each division, work with the Key Talent Management Committee, and are involved with personnel changes/placements. Fifteen members are selected from the Human Resources Division and the Global Human Resources Division.

The state of compliance of HR management at sites and affiliated companies is being checked regularly with internal audits conducted by the Internal Control Division.

Goals and ResultsDiversity

KPI

Scope

FY2019

FY2020

Medium to Long-term

Goals

Results

Level Achieved

Goals

Goals

Percentage of women among regular hires

Career-track administrative positions

Mitsui Chemicals, Inc. registered employees

40%

52%

40%

40%

Career-track technical positions

Mitsui Chemicals, Inc. registered employees

20%

16%

20%

20%

General positions

Mitsui Chemicals, Inc. registered employees

5%

11.4%

7%

7%

Ratio of women in management positions (manager-level or above)

Mitsui Chemicals, Inc. registered employees

4.0%

3.0%

4.0%

10 (FY2025)

Ratio of employees with disabilities

Mitsui Chemicals, Inc. registered employees

2.2%

2.3%

2.3%

Employee Engagement

KPI

Scope

FY2019

FY2020

Medium to Long-term

Goals

Results

Level Achieved

Goals

Goals

Increase employee engagement

Mitsui Chemicals Group

Formulate the action plans

Action plan registration rate 96%

Implement action plans

Conduct the regular survey and implement action plans

Human Resources Management

Management System

Human Resources Development

Evaluation / Compensation

Employee-friendly Working Environment

Diversity

Global Human Resources Strategy

Human Resources Development

Based on the Human Resources Management Policy of the Mitsui Chemicals Group, the Group is, from a long-term perspective, developing human resources who are able to work on the world stage. The Group's approach to human resources development is to proactively support employees who are self-disciplined and work to enhance their personal growth, so that it can develop human resources who are able to create the values demanded by society in the present and future while constantly communicating with global markets and colleagues.

Programs in Line with Stages in Development Based on a Leadership Pipeline Concept (Mitsui Chemicals)

Aiming for a smooth transition to the upper management level, stratified training programs are designed on the basis of the skills and an awareness of the professional duties required by each rank. Minimizing the knowledge cramming style training, we are aiming for the employees themselves to repeat cycles of experience and introspection, while acting proactively to meet their higher-level job requirements, to support them in changing their behavior in ways that will produce results.

Outline of Training

  • *1 Uniformly provided to eligible employees. Other training courses are for those who wish to participate and those who are selected.

  • *2 Also provided to subsidiaries and affiliates.

Key Achievements of Stratified Training (Mitsui Chemicals, Inc. registered employees in FY2019)

New Employee Training

Contents Corporate Mission, core values, sustainability, compliance, diversity, safety, quality, R&D, occupational health, in-house systems, management strategy, understanding stakeholders, the functions of each division and department, cultivating professionalism, teamwork, self-awareness, business manners & literacy

No. of Trainees Males: 77, Females: 28

Total Training Hours 17,325 hrs.

Basic Business Skills Training Programs

Contents Trainees aim to develop the qualities required to become a manager. This is an optional program and its timing is based on the needs of individual staff and the workplace.

Self Leadership-the 7 Habits of Highly Effective People, accounting and business management skills "Apples & Oranges," logical thinking, project management,* interpersonal skills* (* starting in fiscal 2020)

No. of Trainees Cumulative Total: 380

Total Training Hours 9,803 hrs.

Training for Newly-promoted Management Staff

Contents Message from the Management, Understanding each role, Strength finder

No. of Trainees Males: 130, Females: 21

Total Training Hours 1,163 hrs.

New Line Manager Training Program

Contents Understanding each role, skills to develop subordinates, assessment skills, labor management, mental health management, compliance, and diversity (understanding of diversity-such as LGBT; harassment; and women's empowerment)

No. of Trainees Males:53, Females: 0

Total Training Hours 795 hrs.

* Some parts of the program were postponed due to COVID-19.

Global Business Skill Training

Contents Understanding cultural differences and putting the knowledge into practice, communication skills, self-expression, presentations.

No. of Trainees Males: 20, Females: 9

Total Training Hours 1,340 hrs.

Leadership Development Program

Allowing talented human resources to demonstrate their abilities-despite time constraints caused by life-changing events, such as childcare and family care, and regardless of differences in nationality, ethnicity, and religion-requires improvements in line managers' management capabilities. Mitsui Chemicals focuses on developing leadership skills to lead the organization toward an even better direction by incorporating coaching methods into training programs for each level of line manager training and by encouraging core leaders in each division to take specific and innovative action in their daily business activities.

We have introduced 360-degree feedback and assessment for trainees before and after training programs as a means to measure the effectiveness of each program. Moreover, analysis of the correlation between the results of annual workplace stress surveys and workplace environment of employees who have finished these training programs confirmed improved support, specifically from bosses and colleagues, one of the factors affecting stress levels among employees.

Number of Leadership Development Program Participants (Mitsui Chemicals, Inc. registered employees)

Name of Training Program

FY 2019 results

Cumulative Total

Executive Coaching (1 on 1)

(For Executive Officers and General Managers)

5 Males: 4 Females: 1

51 (From FY2013)

Leadership Development Program

(For Directors and Managers)

40

Males: 39 Females: 1

266 (From FY2013)

Leadership Development Program

(For Supervisors

105

Males: 101 Females: 4

258 (From FY2016)

Initiatives for Work Styles in the "New Normal" Era

We are actively implementing teleworking and staggered working hours as well as considering moves to online training, in order to put first the health and safety of our employees and their families, our customers and suppliers, and other stakeholders as well as lower their risk of COVID-19 infection.

Our Stance on Online Training

We divide our training programs into four types: self-contained programs, mutual engagement, teaching, and learning. Depending on the desired training outcome, the programs will be taken online, via a mix of online and face-to-face training, via face-to-face training, or postponed during the COVID-19 pandemic.

When it is decided to move a training program online, we redesign it taking advantage of the characteristics of appropriate tools: knowledge input will be achieved through prior individual study; those that require mutual engagement through dialogue will be offered via online sessions; and e-learning will be used for iterative learning after the completion of the training.

Actual cases of training moved online

FY2018 Business Site Managers Leadership Development Program Follow-up FY2019 Business Site Managers/Supervisors Leadership Development Program FY2019 Global Business Skill Training Final Session

FY2020 New Career-track Employee Training

Future plans

  • (1) Plan and prepare to move existing training programs online.

  • (2) Conduct online learning trials in fiscal 2020 on a global basis, with a view to Group-wide and global rollout to keep up the pace of our growth regardless of external conditions.

Human Resources Management

Management System

Human Resources Development

Evaluation / Compensation

Employee-friendly Working Environment

Diversity

Global Human Resources Strategy

Evaluation / Compensation

We believe that treatment in line with proper appraisal is an important system that improves employee motivation, secures and fosters talented human resources, and is closely related to the Group's development.

Setting Goals and Performance Appraisal

At all levels, Mitsui Chemicals has systemized annual interviews and meetings to set goals with superiors. Progress toward the goals and an assessment of action taken are reflected in employee compensation. Assessment of an employee's covers their actions related to diversity and safety based on the Mitsui Chemicals Group Action Guidelines and the Core Values. In support of diversifying human resources, including women's empowerment, specific causes or reasons that surfaced during the fiscal year are assessed and rated on a scale of 1 to 5.

In goal-setting interviews, we set not only performance targets for a single fiscal year but at the same time conduct a "capability/career development interview" to confirm the business tasks the employee would like to experience as well the skills they would like to acquire in the short term (within three years) and long term. Employees are thus able to use their own initiative in setting their own career paths. In addition, the manager reviews the career perspectives, strengths and weaknesses as well as the future goals of their workers and obtain their support.

Since fiscal 2017, Mitsui Chemicals has been using its Talent Management System (Success Factors) to manage activities from setting goals to evaluating performance, and this has improved the accuracy and efficiency of HR management. Employee's performance achievements are updated on the system either by the employees themselves or by the superiors to enable effective management of the employee's goals. In addition, the employee and their superior are able to use the system to review the employee's performance history, which enables consistent development of the employee's talents.

Evaluation Feedback

Mitsui Chemicals has introduced an annual interview with their superior for employees in all positions to give feedback on their performance assessment. The interview is designed not only to discuss the assessment results but also to share areas in which the employee can make improvements and the superior's expectations from the perspective of the employee development.

Moreover, the Mitsui Chemicals Labor Union conducts a survey on the rate of these feedback meetings among its members and the degree of satisfaction with the feedback. The results of the survey are shared by labor and management, and we are striving to manage the evaluation system appropriately.

The conducting rate of feedback meetings and Degree of Satisfaction (Mitsui Chemicals Labor Union Registered Members)

FY2016

FY2017

FY2018

FY2019

The conducting rate of feedback meetings

in the Previous Fiscal Year

96%

98%

98%

94%

Degree of Satisfaction over Evaluation Feedback

89%

90%

86%

91%

Global Evaluation Guidelines

Global evaluation guidelines were formulated in May 2016 to organize the Mitsui Chemicals Group's evaluation mechanisms, approaches, and design, and have been distributed to all Group companies. These guidelines consist of two concepts: (1) management by objectives (MBO), (2) global core competencies. These guidelines are enabling the HR sections of four regional headquarters (the Americas, Europe, Asia-Pacific and China) to support the development, revision, and operation of evaluation systems for companies in their respective regions.

Specifically, global core competences are used as a shared index within the Mitsui Chemicals Group's Key Talent Ma nagement system, and they are used as the basis for the 360-Degree feedback and assessments provided in tandem with the leadership development program.

Improving assessment and training has become an urgent issue in finding and utilizing talented group-wide human resources in the years ahead. We are strengthening our cooperation with Group companies in applying shared Group evaluation indices broadly and fairly.

Complying with Legal Wage and Establishing Compensation Levels that Are Both Attractive and Competitive

With the globalization of our business activities, we will comply with laws on compensation in the various countries and regions in which we operate. In addition, compensation levels and systems that are both attractive and competitive are being developed to match conditions in the labor market in each country or region.

Compensation for Mitsui Chemicals employees, who make up roughly 40% of the Group's total employees, are reviewed regularly against the compensation database of an external research firm to maintain the competitive compensation levels that are needed to attract human resources. Our policy of using an external database ensures that the compensation percentiles correspond to the percentiles of our medium-term business performance.

Human Resources Management

Management System

Human Resources Development

Evaluation / Compensation

Employee-friendly Working Environment

Diversity

Global Human Resources Strategy

Employee-friendly Working Environment

Maintaining a "high regard for people and society" is the basis of the Human Resources Management Policy of the Mitsui Chemicals Group. Guided by this policy, we strive to achieve "high levels of sustainable growth" in conjunction with the "happiness and self-fulfillment of our employees". Against this backdrop, support measures in consideration of work-life balance have become increasingly important to an environment in which each employee can maintain a high degree of motivation and continue to generate results.

Work Style Reform Declaration at Mitsui Chemicals

The Mitsui Chemicals Group is targeting an operating income of ¥200 billion in 2025 under its Long-term Business Plan. In order to achieve this lofty goal, it is vital that each and every member of the Group takes up this unprecedented challenge and pursues every possible avenue while rethinking their approach to certain concepts and work.

To ensure the sound health of employees, increase productivity and encourage creativity in the workplace, under strong leadership from the management team, Mitsui Chemicals is committed to promoting work style reform by addressing each of the following issues.

1. Strive to ensure that the total number of overtime hours and hours worked on designated holidays for each individual employee is less than 80 hours for each month

Executives and management staff will take the initiative in reforming their mindsets and promoting diverse work styles.

Management staff will review work processes as well as human resources systems and improve word efficiency while strictly controlling the number of hours worked.

Employees will abandon the notion that the number of hours worked makes assessment and in principle endeavor to carry out their duties within scheduled working hours.

2. Promote the utilization of the teleworking in order to address a host of issues. This includes efforts to improve the work-life balance of employees, increase productivity, secure talented human resources, and improve business continuity for emergency

Management staff will take the initiative and make use of teleworking. Thoughts will also be given to the effective management of subordinates with respect to teleworking.

Employees will consider how they can increase productivity with respect to their duties while telework program and endeavor themselves to create the necessary environment.

Reducing Overtime

The Mitsui Chemicals Group is striving to ensure that the total number of overtime hours and hours worked on designated holidays for each employee is less than 80 hours for each month. Recently, the results of these efforts have significantly reduced the number of employees with overtime.

Number of Employees whose Overtime Hours Exceeded 80 Hours/Month (Mitsui Chemicals, Inc. registered employees)

Reviewing Tasks and Strengthening Human Resources

In general, chemical plants operate continuously for long periods of time, but when it is necessary to carry out periodic maintenance, the entire plant is shut down for a specific limited period to allow repairs and inspections to both minimize the effect on production and ensure that the equipment is safe. To avoid work being concentrated in specific periods due to periodic maintenance, we have been working to review tasks and strengthen human resources.

Visualizing Overtime and Hours Worked on Designated Holidays

To visualize overtime and hours worked on designated holidays, the line managers share the monthly records of overtime and hours worked on designated holidays for each division and each employee. Each line manager is working to establish a comfortable working environment by comparing overtime and hours worked on designated holidays of other divisions and their own division, and by confirming work is not concentrated on a specific employee. When an employee is found to have worked more than 80 hours of overtime each month, the Human Resources Division conducts an interview with the workplace manager, and reviews and implements specific measures to identify the cause of the overtime and make improvements for the individual employee.

Skill Development Training Aimed at Reducing Overtime

We have provided skill development training aimed at reducing overtime. Non-management staff are provided with time management training, in which they acquire specific approaches to reviewing working habits, scheduling and handling e-mail. Management staff are provided with organizational management workshop training, in which they learn specific approaches to efficiently managing their organization.

Work-Life Balance Measures

Mitsui Chemicals has put in place various systems that exceed statutory requirements in response to employees' circumstances outside of work, including child and family care.

As a part of this support, we changed the work-from-home program for childcare/family care leave to a teleworking program, regardless of the reason in 2019. We also reformed the leave system so that unused annual (or special) leave that has already expired can be used as leave for hospitalization or visiting a doctor, thereby offering better support for our employees' work-life balance. Please refer here for the benefit programs and measures.

Principal Employee Benefit Programs and Measures (Mitsui Chemicals, Inc.)

Childcare Leave Usage Rate (Mitsui Chemicals, Inc. registered employees)

Please refer here for details of the usage status of other systems.

Program That Supports Employees Returning to Work after Taking Childcare Leave

Mitsui Chemicals has introduced a program that supports employees returning to work. The principal goal is to create an environment that allows employees bringing up young children to return to work smoothly after giving birth to their child or taking childcare leave and to help maintain a high degree of motivation.

The program clarifies the types and details of support for each period from the time before maternity leave through childcare leave to the return to work. Prior to taking leave, the employee and their manager engage in a one-on-one interview to discuss the handover of duties, contact while they are on leave, necessary procedures, and other important issues. Meetings between employees and their managers are also conducted while they are on leave to share details of work styles that will ensure the work environment will accept the employee and details of their duties when they return to work and to ensure mutual understanding. After returning to work, the Company provides an explanation of the procedures and support available from its various programs for employees.

In this manner, every effort is being made to relieve employees' anxieties with respect to taking maternity and childcare leave as well as returning to work. This in turn helps to alleviate the need to resign from the Company and allows employees to continue their careers.

Return Rate of Employees from Childcare Leave (Mitsui Chemicals, Inc. registered employees)

FY2017

FY2018

FY2019

Males

97%

99%

100%

Females

100%

100%

100%

Total

98%

99%

100%

Employee Retention Rate Three Years after Childcare Leave (Mitsui Chemicals, Inc. registered employees)

FY2017

FY2018

FY2019

Males

91%

94%

83%

Females

96%

93%

93%

Total

92%

94%

86%

Job Evaluations for Persons Taking Childcare/Family Care Leave

Mitsui Chemicals has a program designed to prevent childcare or family care leave from affecting promotion or assessments for payments, bonus payments, etc.

Under the company's employee evaluation system, the ceiling for job evaluations for the fiscal year is determined by the work attendance rate. However, an evaluation ceiling is not set for persons on childcare or family care leave as long as they meet a specified attendance rate for the evaluation period. Their job performance while at work is evaluated fairly, and if their attendance rate is lower than certain standard, they are exempted from the job evaluation (no rating), so as not to affect their job evaluation or promotion.

Improving the Acquisition of Paid Leave

In the drive to work style reform, Mitsui Chemicals is working to raise the rate of annual paid leave (20 days). We are taking the following actions to improve the acquisition of paid leave, to support the physical and mental health of employees.

Measures to Promote Work Style Reforms

Recommendations for the planned acquisition of extended leave and continuous leaveDesignation of workdays that fall between holidays as days to support the acquisition ofpaid leave Tabulation of paid leave acquisition rates by worksite and report and guidancebased on the findings Review of the concentration of workloads on specific employeesSchedule sharing within the worksite

Paid Leave Usage Rate (Mitsui Chemicals, Inc. registered employees)

FY2016

FY2017

FY2018

FY2019

Goals

Non-management staff

81%

79%

83%

86%

Management staff

56%

56%

62%

70%

70%

Total

70%

69%

74%

79%

Response to COVID-19

In 2019, Mitsui Chemicals introduced a teleworking program for up to eight days per month.

With the COVID-19 pandemic, however, this ceiling on teleworking was temporarily lifted in February 29, 2020. Teleworking was implemented as the basic work scheme in the head office, starting on March 4. In response to the declaration of the state of emergency by the Japanese government on April 7, Mitsui Chemicals organized the following work scheme during the period to reduce COVID-19 exposure among employees and to maintain the company's business functions. When the state of emergency was lifted on May 25, Mitsui Chemicals introduced guidelines on work schemes, etc. Studies are expected to be conducted on new working styles for the post- COVID-19 society.

Infectious diseases countermeasures

Before declaration of the state of emergency (from March 4, 2020)

· Teleworking program implemented as the basic work scheme for the head office

State of emergency period (from April 7, 2020)

  • · Teleworking program implemented as the basic work scheme for all business sites

  • · No domestic or overseas business travel

  • · Cancellation of all internal and external social gatherings and receptions organized for business purposes

Lifting of the state of emergency (from May 25, 2020)

  • · Teleworking recommended (work scheme adjusted to keep employees working in offices to less than 50%)

  • · No domestic business travel unless absolutely necessary

  • · Internal and external social gatherings and parties organized for business purposes to be kept to the minimum

    Labor-management Relations Based on Frank Dialog and Mutual Understanding

Mitsui Chemicals has incorporated the realization of its Corporate Mission and the achievement of the happiness and self-fulfillment of employees as common goals in its labor-management agreements and is working to build constructive and stable labor-management relations. In order to help achieve 2025 long-term targets, labor and management are endeavoring to share and exchange opinions regarding a host of management issues. Efforts are also being made to engage in ongoing frank discussions between labor and management on such themes as improving productivity as well as the work-life balance of employees. In this manner, we are working to lay the necessary foundation so that employees can work in a more enjoyable and meaningful manner. Moreover, we have adopted a rule that employees must generally be notified at least one month prior to transfers that entail moving and relocation.

Major Labor-management Discussion Themes (Fiscal 2019)

Revision of human resources system

Bonus amounts and profit sharingRevision of the increase in wagesExplanation of the management conditions

Mitsui Chemicals has adopted a union shop system; all employees that are eligible to join a labor union under the labor-management agreement agreed upon by labor and management join the labor union. The Mitsui Chemicals Labor Union represents all non-management staff, and the negotiation outcomes between labor and management are applied to all non-management staff without any conditions. According to the labor-management agreement, management staff and other employees at or above the management level are not eligible to join the union. Union membership in the total employees including managers is 54.5%.

Overseas sites are operated in a way that allows labor unions to be formed under the labor-related laws of each country and under the freewill of the employees. We do not take any actions whatsoever to limit such moves.

List of Support Measures in Consideration of Work-Life Balance (Mitsui Chemicals, Inc.)

Holidays and Leave

Permanent Employees

Contract Employees

Re-employment

Indefinite-term contract and part-time

Fixed-term contract and part-time

Five-day workweek

(Saturday and Sunday are holidays)

Public holidays and New Years Holidays (company holidays)

Annual paid leave

(20 days/year, start from the second year of employment*)

Leave for employees who visit home from an unaccompanied posting*

Marriage leave

(eight consecutive days)*

Refreshment leave

(two consecutive days off/year)*

Family medical leave (paid leave*)

Paid family care leave*

Childcare leave

(the first five days are treated as paid leave*, eligibility lasts until the end of the fiscal year when the child reaches the age of three*)

Family care leave

(eligibility also extended to employees caring for family members considered as being in need of support*, eligibility lasts up to one year*)

Special leave

(paid leave, leave for illness or injury, family care leave, childcare leave, community service leave)*

Leave of absence to accompany spouse's overseas assignment*

Community service leave (paid leave)*

Work Patterns

Permanent Employees

Contract Employees

Re-employment

Indefinite-term contract and part-time

Fixed-term contract and part-time

Short working hours (childcare/family care leave)*

Restrictions on overtime (childcare/family care leave)

Restrictions on late night work (childcare/family care leave)

Company childcare center*

Flextime system (without core time)*

Teleworking*

Income

Permanent Employees

Contract Employees

Re-employment

Indefinite-term contract and part-time

Fixed-term contract and part-time

Maternity benefits*

Childbirth benefits*

Childcare leave benefits*

Family care leave benefits*

Subsidies for home-care services*

Subsidies for babysitting services*

Retirement allowance*

Dealing with each case individually

Dealing with each case individually

Employee stock ownership*

* Measures marked with an asterisk (*) exceed statutory requirements

Human Resources Management

Management System

Human Resources Development

Evaluation / Compensation

Employee-friendly Working Environment

Diversity

Global Human Resources Strategy

Diversity

*

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The Mitsui Chemicals Group recognizes the importance of diversity in ensuring sustainable growth both for the Group and society. Based on this understanding, we have positioned diversity as one of our core values*. Promoting diversity is an important business strategy. We strongly believe that a diverse pool of human resources, characterized by wide-ranging experiences and a wealth of new ideas, is the driving force behind innovation, a key source of sustainable growth. The Mitsui Chemicals Group is resolute in not permitting any discrimination whatsoever based on race, national origin, birthplace, social origin, caste, family lineage, religion, disability, age, gender, sexual orientation, gender identity, family background, marital status, membership of unions, political views, or any other differences as stated in the Mitsui Chemicals Group Human Rights Policy. At the same time, we aim to realize our core values by responding to changes in the diverse values associated with our employees' work styles and careers.

* core values:

"Diversity," "Challenge" and "One Team" as the three core values to be shared and held in high regard among Group employees.

Female Employees' Active Participation and Advancement in the Workplace

The Mitsui Chemicals Group was focusing its efforts on proactively leveraging the capabilities of female employees in its operations even before establishing the Promotion and Development of Women Team in 2006. These efforts include assigning female employees to plants and employing women in positions with promotion prospects. Although we have made steady progress in our efforts to foster a corporate culture that encourages the ongoing employment of women over the past decade, we are still facing challenges. There remains a lack of consistency in annual female employment rates, there are small numbers of women with technical backgrounds applying for jobs and being hired,and a low percentage of female managers.

Under the 2025 Long-term Business Plan, we have set a target ratio of women in management positions (manager-level or above) of 10% or more (Mitsui Chemicals, Inc. registered employees). One factor for the currently low numbers is that the ratio of women among all employees is comparatively small. In our hiring practices, we work to set a numerical target for the ratio of female employees in regular recruitment for respective job types, namely, for career-track technical positions, career-track administrative positions and general positions (primarily factory operators), as the situation for each of these is different.

CEO Message for Women's Empowerment

Mitsui Chemicals is aiming to change its business model by transforming the business portfolio. Understanding of diverse values and tastes is required to reach out to markets closer to customers. We must create an environment where a diverse group of people can make the most of their unique talents and potential, and expect ever more opportunities for women to fulfill their potential. We provide a better work environment for employees with family responsibilities such as childcare and nursing care, as our employees have been using our teleworking program more effectively since the COVID-19 pandemic. Such a work environment will also create promotion opportunities for women. We will continue to implement initiatives that encourage the recruitment of talented people.

HASHIMOTO Osamu

Representative Director, President & CEO

A Message from the Outside Director

I believe that for the Mitsui Chemicals Group to improve its corporate value, our Group must be an organization where a diverse pool of human talent, including female employees, can play an active role in the workplace. To that end, I believe that it will be critical for the Group to place higher priority on and work toward achieving the above goal as a management challenge. As the outside director representing stakeholders, I will keep a close eye on the direction of management and offer my advice.

Yukiko Kuroda Outside Director

* To secure diversity in the Board of Directors, we try to appoint more than one female director.

Ratio of Female Employees (Mitsui Chemicals, Inc. registered employees)

Percentage of Women among Regular Hires (Mitsui Chemicals, Inc. registered employees)

FY2017

FY2018

FY2019

FY2020 Goals

Career-track Administrative Positions

46%

47%

52%

40%

Career-track Technical Positions

11%

16%

16%

20%

General Positions

3.2%

5.0%

11.4%

7%

Non-Japanese Employees' Active Participation in the Workplace

The Company began the full-scale hiring of non-Japanese employees in Japan in 2005.

For non-Japanese employees working in Japan, we provide dedicated consultation services. In addition to supporting trouble-free work and life styles, we are committed to maintaining a workplace that provides non-Japanese employees with a good work environment and employing talented human resources.

Specific Examples of Assistance Provided to Non-Japanese Employees

Assisted with Japanese language training

Assisted with visa procedures

Addressed daily inquiries regarding HR systems, initiatives, company regulations

Conveyed information required for working in Japan in English and Japanese

Conduct inclusion study lectures (promote awareness of cultural differences)

Created English manuals for HR-related applications

Responses to consultations from non-Japanese employees (assigned staff in charge to each business site)

Number of Non-Japanese Employees (Mitsui Chemicals, Inc. registered employees)

FY2016

FY2017

FY2018

FY2019

55

57

54

54

Enabling Employees with Disabilities to Reach Their Full Potential in the Workplace

In hiring employees with disabilities, the Company goes beyond achieving the legally required employment ratio and is committed to maintaining an environment in which people with disabilities can play an active role while accumulating their skills, and feel accepted as members of the organization.

Before assigning an employee with disability to a certain position, we select the most appropriate place for the employee, taking into account not only their job role, but also the work environment and workplace members, to avoid putting under pressure on the employee to adapt to the work environment. In addition to conducting training sessions at sites that accept employees with disabilities to help other employees understand what a disability entails, we set incubation periods and adaptation/learning periods for a certain period after hiring and introduce measures suited to the employee's particular disability to enable them to work smoothly. We also provide regular interviews for both employees with disabilities and their superiors to help to retain employees with disabilities in the workplace. Listening to difficulties and issues from both sides helps to improve the workplace environment and work styles and creates a comfortable work environment.

We also offer subsidies for learning skills that are useful to employees with disabilities in their work, such as language and computer skills, to help improve their skills in a way that is suited to their individual talents.We also hold inclusion lecture meetings to foster a climate that accepts into the organization not only people with disabilities but also people with diverse personalities and characters and people receiving medical treatment. At the lecture meetings, participants learn about sexual minorities, and we provide a forum where employees with disabilities or illnesses speak about their own disabilities and experiences.

Mitsui Chemicals has endorsed and signed on to "The Valuable 500" in October 2019. Launched at the World Economic Forum's Annual Summit, the Valuable 500 is an initiative created to promote the participation of disabled people in the workforce. The initiative looks for business leaders to carry out reform that allows disabled people to fulfil their potential in business, society and the economy.

Ratio of Employees with Disabilities (Mitsui Chemicals, Inc. registered employees)

Employee Comments

Easy to Work Environment

What surprised me after starting to work in Mitsui Chemicals was that people were so open to talk to me regardless of their positions, whether low or high. Because they don't change their attitude whoever you are, I can ask questions without worry. This is my fourth year in this company and I am assisting with administration work. I am not good at coping with non-routine tasks, and so my supervisor selects summary counting tasks that need to be monitored routinely over a long period. This means I can work without panicking. Because my work is not pressurized, I can make minor improvements to other work when my condition is good. For example, making a template easier to work with or changing existing documents to make them easier to read. I would like to be a member who can respond to my colleagues needs for "something a little more convenient."

Developmental disabilities Joined the company in fiscal 2017

Retired Employees' Active Participation in the Workplace

Mitsui Chemicals is moving forward in making use of the wealth of experience possessed by senior human resources, and to those retired employees who wish to continue working, calls for ongoing employment through its system of rehiring. We do this to address the challenges presented by the shortage of human resources associated with our expanding business operations and the generational retirement of whole generations of employees who were recruited in large groups, as well as to utilize employees who are highly motivated to work, even after their retirement. From fiscal 2018, we will improve the level of compensation offered when rehiring to increase the numbers of employees who wish to continue working.

Ratio of Re-employment for Retired Employees (Mitsui Chemicals, Inc. registered employees)

FY2016

FY2017

FY2018

FY2019

81.3%

76.7%

87.6%

85.5%

Understanding LGBT

We held lecture meetings on LGBT in fiscal 2017 for employees who are in charge of consultation services for harassment at all domestic sites, inviting lawyers to provide the LGBT-related knowledge required for HR members. We also included some new topics such as discrimination and harassment over sexual orientation in the harassment lecture in the compliance e-learning program targeting at all employees, in addition to conventional topics, including sexual and power harassment. From fiscal 2018, we included a diversity seminar as a part of the New Line Manager Training Program. The seminar explains about Sexual Orientation Gender Identity (SOGI) harassment and teaches about actions that line managers should take when they are consulted by their subordinates about gender issues. From fiscal 2020, our New Employee Training covers consideration for LGBT matters and SOGI harassment. All attendants of the program receive a leaflet from which they can learn more about LGBT matters.

As an optional event, in fiscal 2019 we showed a movie with a storyline involving gay issues.* Those who viewed the movie gave us comments such as "It gave me a good opportunity to think again about LGBT matters" and "I realized that gay issues are closer to us than I imagined."

* Movie: Pride, distributed by Cetera International

Understanding Multiculturalism

Since fiscal 2014 we have provided the Global Business Skill Training, to teach the skills needed when working with multicultural teams. This training program is targeted specifically at employees who have been assigned abroad and engaged in overseas business, that involves managing multicultural teams and negotiating with business partners from different cultural backgrounds. About 30 employees are selected to participate in this program each year. The participants learn about religions, cultures, and ways of thinking in different countries and regions through concrete case studies of business communication, in addition, the program aims to improve employees' language ability by learning how to give presentations and case studies and hold meetings in English. In fiscal 2019, we held a cross-cultural exchange seminar with an external lecturer, to which employees could attend by choice. Attendants learned the "Dos and Don'ts" to enjoy cross-cultural communications.

Training and Lectures related to Diversity Promotion

Work Style Reform in Career-track Production Technology Positions

We are proactively recruiting women as production technology human resource for Works, however, balancing family life and engineering work is challenging. As the number of families with two earners increases, this challenge is not only for women but for all of our young employees, including men. For this reason, we provided a training program to consider ways of working and a career that enables and encourages diverse human resources to play an active role in the workplace for all young production technology employees. The program was held jointly with Sumitomo Chemical Co., Ltd., which is also facing the same issue.

Support for Female Operators' Participation and Advancement in the Workplace

In the quarter century since 1992, Mitsui Chemicals has hired women as operators at manufacturing sites, and moving forward, will further promote the active participation and advancement of women at its Works. In fiscal 2016, briefings on the social background of the promotion of women's active participation and advancement in the workplace, the initiatives that companies, organizations and individuals should take as well as Mitsui Chemicals' goals and action plans toward the promotion were conducted for line mangers at all Works in Japan. In fiscal 2017, we provided a training session to workplaces that are accepting female operators for the first time under the themes of women's empowerment and managing female employees. In fiscal 2019, we asked female operators from Works across Japan to gather at the Head Office to take an educational program to cultivate their approach to their careers and networking.

Lecture of Dr. Ruriko Tsushima, Ruriko Tsushima Women's Life Clinic Ginza

Women's Careers and Health

It is now common that women work throughout their lives, yet it is still true that there are events in their lives when they may find it difficult to continue working, such as during pregnancy, childbirth, menopause, or when facing female-specific diseases. Since fiscal 2017, we have been holding a lecture entitled "Women's Careers and Heath" to help women to continue working by teaching them about specific health issues and how to manage them in a way that minimizes their impact. The fiscal 2017 lecture, given by a gynecologist, for younger employees focused on how women can manage their physical condition, and for older employees, on the menopause. For the fiscal 2018 lecture, we invited the gynecologist to speak about gynecological cancers. The lecture was followed by a talk by an employee about her experience of cancer. In fiscal 2019, our industrial physician gave a lecture on how to read the comprehensive health check results and gave some advice and tips for daily life on maintaining healthy levels of cholesterol, liver function, and carbohydrates. This lecture was distributed to other sites through a web conferencing system to share this information.

Dispatching Female Employees to External Career Training Programs

We dispatch 10 to 20 female employees to external career training programs every year. Such programs include those to motivate female employees who aim at managerial careers and improve their management skills, and programs designed for prospective general managers to impart business management skills and establish a human network outside the company. Exchanges with other business women in similar positions from different companies give employees an opportunity to meet women who can become a role model and raise their career awareness.

Participant's Comments

Learning Business Management and Leadership with Female Managers in Different Industries

I attended the Female Manager Step-Up Support Program hosted by the Japan

Business Federation. This program was held over four months and we had a group discussion and presentation after each lecture. Topics covered in the program included "Business environment from the viewpoint of the global situation;" "Frame of mind as a leader to form a successful team;" and "How to make an action plan for a strategically important project." All of these were very practical and provided me with the skills required by a person at my career stage.

Moreover, working on the program's assignments together as a team, provided

KOJIMA Mika

me with a precious opportunity to gain new insights by learning about the varied

IP Search Team Leader,

values of women in similar life stages to me but in different industries. I also

Intelligence & Information

renewed my awareness of the importance of articulating my ideas. I am truly

Group,

Intellectual Property Division

grateful for this program for enabling me to form human networks in which I can

continue to share information in the future.

Fiscal 2019 Result (Cumulative total number of participants: 835)

Theme

Lecturer

Target audience

Women's career and health

MCI industrial physician

MCI employees

Health of working women

Expert outside the company

HR staff members and harassment contact officers

Female Employees' Active Participation and Advancement in the Workplace

The director of the Diversity and Inclusion Group

Management staff (line managers or higher positions)

SAP

MCI employee

Contract workers

Encouraging career awareness among Works operators

Expert outside the company

Female Works Operators

Work style reform and women's empowerment

MCI Director

MCI employee

Dementia

Expert outside the company

MCI employees

Work style reform for production technology engineers

Expert outside the company

MCI employee

Work style reform

Expert outside the company

MCI employee

Overtime working

Expert outside the company

MCI employee

Cross-cultural communications

Expert outside the company

MCI employees

LGBT understanding (showing a movie)

MCI employees

Generation gap

Expert outside the company

MCI employees

Anger management

Expert outside the company

MCI employees

Developmental disorders and depression

Expert outside the company

MCI employees

Various disorders

Expert outside the company

MCI employees

Development of Various Capabilities (Computer skills, languages, others)

Expert outside the company

Employees with Disabilities

Fiscal 2018 Result (Cumulative total number of participants: 539)

Theme

Lecturer

Target audience

Crohn's disease

MCI employee

MCI employees

LGBT

Expert outside the company

MCI employees

Family care

Expert outside the company

Line managers

Family care

Expert outside the company

MCI employees

Childcare leave

Expert outside the company

MCI employees

Women's career and health

Expert outside the company

MCI employees

Cancer

Expert outside the company

MCI employees

Communications between male and female

Expert outside the company

MCI employees

Female Employees' Active Participation and Advancement in the Workplace

The director of the Diversity and Inclusion Group

Management staff (line managers or higher positions)

Improve work efficiency

Expert outside the company

Non-management staff

Development of Various Capabilities (Computer skills, languages, others)

Expert outside the company

Employees with Disabilities

Human Resources Management

Management System

Human Resources Development

Evaluation / Compensation

Employee-friendly Working Environment

Diversity

Global Human Resources Strategy

Global Human Resources Strategy

Message from the Responsible Officer

Our Global Human Resources Strategies

The Mitsui Chemicals Group's consolidated employees have increased to around 20,000 persons (including contract employees) in part as a result of M&As in recent years, and the ratio of overseas employees has reached around 40%. Our business domain is also no longer restricted to the development, production, and sale of materials, but has expanded to include the proposal of solutions to our customers. Amid significant growth in the diversity of nationalities and specialties of the talents that work in our Group, we need more than ever to carry out human resources strategies with a Group-wide and global scope. We launched the Global Human Resources Division in April 2019, and are aiming to strengthen center-of-excellence (CoE) functions that enable the Group-wide and global formulation and rollout of human resources strategies. In the just over one year since the establishment of the Global Human Resources Division, we have made steady progress on developing a Group-Global Human Resources Platform that incorporates the perspectives of talent management, position management, and talent development. To continue to create value in global markets, we will work to recruit, train, and effectively deploy the required human resources on a Group global basis.

ANDOU Yoshinori Managing Executive Officer General Manager, Global Human Resources Division

Global Human Resources Management and Strategies

Since the founding of Mitsui Chemicals in 1997, the Group's consolidated companies have grown in number to a total of 156, and our consolidated employees (as of March 31, 2020, excluding contract employees) have increased to 17,979 persons. The overseas sales ratio has expanded to 45%. With the progress of business globalization, we have worked to build a framework on a global basis in the area of human resources management, including the operation of overseas bases, as well as post-merger integration (PMI) for cross-border M&As. In order to further accelerate theseefforts, we established the Global Human Resources Division in April 2019 to expand from our conventional virtual HR organization to a permanent global HR organization. We will enhance our global business competitiveness by executing effective human resources management on a Group and global level, and enhancing our human resources governance. Following the launch of the Division, we established functions for system development at the global headquarters, including talent management, human resources development and training, and compensation and evaluation. At the same time, we are using schemes from the HR Development Advisory Committee (HRDAC), a virtual project framework involving human resources at the regional headquarters, held continuously since 2014, in order to accelerate the planning of various globally-shared programs and expansion into local regions. We have redefined matters that should be unified globally, as well as matters that should be operated with a degree of freedom in each region or company. We operate the human resources organization that supports both effective human resources management on a Group and global level and the growth of each region and our businesses.

History of Group Globalization and Global Human Resources

Overview of Global Human Resources Management

Key Talent Management: Developing Future Leaders

It is a pressing task for the Group to develop and train future leaders, as well as human resources who are capable of managing our overseas subsidiaries and affiliates, the number of which are increasing due to overseas development and M&As. To this end, the Group has introduced the Key Talent Management system, which began operations in fiscal 2016. We will further develop this system, in order to promote the development and training of employees who will ensure the continued growth for the Group.

Overview of Key Talent Management

(1) Key Talents and Management Candidates

Among the Group's worldwide human resources, those who consistently demonstrate a high level of performance and competence, potential, and enthusiasm are identified as key talents. Among such key talents, those who have the potential to become future leaders are selected as management candidates.

(2) Key Talent Management Committees

The Key Talent Management Committees have been established as a body to select key talents/management candidates, approve development plans, and review their results. The Committees review the work experience of selected human resources, and determine where they should be assigned based on five perspectives: managerial view point, business restructuring, new business development, Company-wide projects, and the operations of overseas subsidiaries and affiliates.

Key Talent Management System

Progress in Fiscal 2019

Held meetings of the Divisional Key Talent Management Committees in all divisions (both business and functional).

Selected key talents from across the entire Group, including from domestic and overseas affiliates, and formulated individual development plans (placement and training) for those talents.

Held meetings of the Company-wide Key Talent Management Committee, in which all officers participate. Identified management candidates, talents who might join the senior management ranks in the future, from among the key talents selected by the Divisional Key Talent Management Committees, and confirmed and approved the individual development plans (placement and training) for these candidates. Also confirmed the direction of development and placement of other key talents (those in positions equivalent to Supervisor at Mitsui Chemicals or below, including those at domestic and overseas affiliates).

Confirmed and approved the revised succession plans for the 100 critical positions based on the business strategies for fiscal 2019.

As part of efforts to strengthen organizational diversity, created individual development plans for potential female line managers who had been selected as key talents.

Formulated a Key Talent Management Assessment System to increase objectivity and transparency in the management candidate development process.

Specific Plans Going Forward

  • (1) Review and implement the individual development plans (placement and training) based on the qualities, motivation, experience, and competency of management candidates selected from among key talents.

  • (2) Formulate individual development plans for newly selected key talents.

  • (3) Implement a talent rotation program between sectors based on individual development plans for Supervisor-level key talents in Japan and overseas.

  • (4) Formulate succession plans for the 100 critical positions.

  • (5) Specify qualifications and attributes required of management candidates, and introduce a skills development program to determine the direction of longer-term development of management candidates (key talent management assessment).

Global Position Management: Appropriate Placement of Human Resources throughout the Entire Group

The Mitsui Chemicals Group currently has approximately 18,000 position, of which close to 40% are based overseas. As the Group continues to grow globally, in order to ensure that the overall design of our organizational and job structures is aligned with the Group's management strategies, we have standardized and clearly specified and the basic principles, systems, and procedures related to the creation and phasing out of positions within the Group. In addition, we are introducing a global grade structure to delineate positions within the Group. These measures will enable us to place the right human resources in the right places and to build a cross-national and cross-regional transfer system, which will facilitate career development within the Group.

Example of Activity: Global position management in action

One advantage a large, globally operating corporation has to offer, is the opportunity for its employees to move within the organization - to new responsibilities and also to new countries. During my career at Mitsui Chemicals I have been fortunate to work in different roles in three different countries, Singapore, Japan and Germany. When I joined the company in 2009, the first overseas R&D site had recently been established in Singapore. After eight rewarding years in R&D, I was given the chance to move to MCI headquarters in Tokyo and expand my responsibilities. I changed my field of work to NewBusiness Development, a logical next step after customer directed R&D. Two exciting years in Japan followed where I prepared the expansion of the project to Europe. I relocated back to my native Germany in 2019 to join Mitsui Chemicals Europe to implement this plan. In preparing for and undertaking these moves, I could always rely on the advice and encouragement from my managers as well as the support from local and global HR teams. Moreover, the memories of people, country and food of Singapore and Japan will last a lifetime. I am confident that as the Mitsui Chemicals Group expands its global presence, global mobility of its employees will follow suit.

Dominik Jürgen-Lohmann New Generation Business Development Manager,

Health Care Division Mitsui Chemicals Europe

GmbH

Global Employee Engagement Survey

In preparation for implementing our 2025 Long-term Business Plan, we consider Group employee engagement to be extremely important. We, therefore, conducted an online survey in June 2018 to measure individual engagement levels and investigate the underlying factors for all employees of the Mitsui Chemicals Group.

This was the first survey to cover all Group employees, and 87% of the employees responded. Their opinions provided us with many suggestions that improved our understanding of the Group-wide HR challenges. Characteristics of the Group revealed through this survey include an incredibly strong culture of safety and an emphasis on autonomy anddelegation of authority. The results of this survey can be analyzed by the unit of Head Office division, affiliate, or subsidiary. Therefore, leaders in each organization and the Head Office HR Division have worked together to formulate improvement action plans that are suitable for individual departments, and are working on the specific measures to improve the level of engagement. The Head Office HR Division identified the priority areas to further employees' engagement scores: senior management; career opportunities; and performance management. The division is now working to create Group-wide measures to be implemented in each of these areas. To improve senior management, we must communicate their clear vision and strategy to employees and increase opportunities for dialog between management and employees. Measures for the area of career opportunity are to offer flexibility to enable employees to apply for new positions or initiate business projects beyond division or company borders, and to increase study opportunities. For better performance management, we are regarding the performance appraisal as a growth opportunity and aim to create an environment where employees can enhance their skills through freely exchanging opinions with their supervisors.

In order to further raise the engagement level in the entire Group, this survey will continue to be conducted every two to three years.

Engagement Factor Score

Mitsui Chemicals Group top factors three areas in which we are strong

Mitsui Chemicals Group bottom factors three areas in which we face challenges

Global Training Program

Global Leadership Training Program

This program aims to develop candidates for executives who will play important roles in the Mitsui Chemicals Group. These candidates are selected from the Mitsui Chemicals Group and its overseas group companies. This twelve-day program is held jointly with a business school over nine months for the key talent from the Mitsui Chemicals Group around the world. The program covers strategic thinking, global leadership skills, and action learning. Nineteen people participated in the program in fiscal 2019 (about half of these participants were Japanese).

Global Managers Seminar

This program provides knowledge of Mitsui Chemicals business strategy, cultural understanding, and leadership skills, in order to develop local leaders from different Group companies. Manager candidates from major sites around the world work together through discussions during this five-day program. Twenty candidates participated in the program in fiscal 2019 (about 20% were Japanese).

Mitsui Chemicals Competency Development Program

This is a program for future generation leaders to help them understand their roles as leaders and acquire the necessary knowledge and skills. Selected candidates from young employees from the Asia-Pacific and other regions work through this 5-day program, including business simulations. Twenty-two people participated in the program in fiscal 2019. We plan to create and provide new programs for employees of different ranks in the near future.

Social Activities

Management System

Laboratory Classes on the Wonders of

Chemistry

Nurturing Future Generations

Environment

Support for Employees' Participation in

Disaster Relief

Social Activities

Working in Harmony with Local

Communities

Management System

Policy and Basic Approach

The Mitsui Chemicals Group believes that it can effectively help to resolve social challenges by harnessing its strengths and unique characteristics as a Group. With that in mind, we utilize our chemical technologies and products and roll out a host of social contribution activities that include efforts to develop the future generation and provide disaster relief. At the same time, we undertake various endeavors to encourage our employees to participate in social contribution activities of their own accord. In addition, and with the aim of ensuring that our sites are always open to the local community, we place the utmost importance on communication with members of the local community while working in harmony with all those around us.

The Mitsui Chemicals Group Social Activities Policy

The Mitsui Chemical Group will continually strive to:

  • 1. Harness and improve its chemical technologies to contribute to society as a whole

  • 2. Work in harmony with local communities and ensure that its sites are as open as possible

  • 3. Do its bit to nurture future generations, on whose shoulders the future rests

  • 4. Carry out activities aimed at protecting the environment

  • 5. Engage in active international exchange and cooperation

  • 6. Create a corporate environment in which individual employees can actively participate in social activities

System and Responsible Officers

With the responsible director in charge of the Corporate Communications Division, the Corporate Communications Division develops and implements annual social activity plans. In addition, each business site enacts voluntary and ongoing efforts while coordinating with the Corporate Communications Division.

The Corporate Communications Division conducts a survey of the results of social contribution activities of each of the Company's business sites as well as domestic and overseas subsidiaries and affiliates once a year to confirm activity details.

Social Activities

Management System

Laboratory Classes on the Wonders of

Chemistry

Nurturing Future Generations

Environment

Support for Employees' Participation in

Social Activities

Disaster Relief

Working in Harmony with Local

Communities

Laboratory Classes on the Wonders of Chemistry

Copyright©2006-2020 Mitsui Chemicals, Inc. All Rights Reserved.

Point three in the Mitsui Chemicals Group Social Activities Policy is, "Do its bit to nurture future generations, on whose shoulders the future rests." In order to further this goal on a global basis, the Mitsui Chemicals Group launched the Laboratory Classes on the Wonders of Chemistry program.

Since 2006, we have organized various types of classes, from off-site classes, whereby members of staff from each of our sites go out to local schools, summer vacation events and festivals, to those held during tours round our works and research centers. Approximately 5,000 children took part in classes over the course of fiscal 2019.

Taking into account the interests and opinions of the participants, the Laboratory Class themes are determined and developed by the Head Office and the Sodegaura Center. The Head Office also provides support for the creation and maintenance of manuals allowing development of the program at domestic and overseas group locations. Accepting a suggestion from an external expert, we created a leaflet that children could take home to read and learn more about chemistry. In fiscal 2020, we plan to ask participants to complete a questionnaire after the class to help improve the contents of experiments to meet each school's specific needs and challenges.

In recognition of these activities, we received the Catalysis Society of Japan's 2015 Award for Education and the Ministry of Education, Culture, Sports, Science and Technology (MEXT) Award for Companies Promoting Experience-based Learning Activities for the Youth (Judge's Commendation) in the large corporation category for 2015. In addition, we registered with the Ministry of Education, Culture, Sports, Science and Technology Support Group for Saturday Educational Activities Program and are working to spread education to even more children.

Catalysis Society of Japan's 2015 Award for Education

Mitsui Chemicals Receives Catalysis Society of Japan Award for Education Educational programs in chemistry receive high marks

Received "Award for Companies Promoting Experience-based Learning Activities for Youth (Judges' Commendation) from Mini stry of Education, Culture, Sports, Science and Technology (MEXT)

Experiment Workshop in Longmiao Hope Primary School in China

To celebrate the 10th anniversary of its establishment in 2010, Mitsui Chemicals (China) Co., Ltd. donated funds to rebuild the old buildings of a primary school in the rural area of Anhui, China, as a part of the company's social contribution project. The school renamed itself as Longmiao Hope Primary School and we have continued to provide support since then. In fiscal 2018, we donated funds to install flush Toilets and attendedthe completion ceremony held on October 10. Our employees also held an experimental workshop to create urethane foam and balloon slime. The children were totally engrossed in the experiment, which turns liquid into a solid material, fully enjoying the wonders of science! We will continue to support the local community through exchanges with Longmiao Hope Project Primary School.

Participating in a Summer Holidays Science Show for Children

On August 3 and 4, 2019, we participated and presented shows in Dream Chemistry 21- Summer Holidays Science Show for Children*, held in the Science Museum in Tokyo. At our booth, we demonstrated an experiment using a film made from our product, ABSORTOMER™. Some 240 primary school children learned about the features of this plastic and were amazed to see how the film expanded or shrank when it was soaked in hot or cold water.

* Dream Chemistry 21 - Summer Holidays Science Show for Children:

Hands-on scientific workshops for primary school pupils and their parents held during the summer holidays every year. These workshops are sponsored by the Dream Chemistry 21 Committee, comprising the Chemical Society of Japan; Society of Chemical Engineers, Japan; Japan Association for Chemical Innovation; and the Japan Chemical Industry Association. The workshops, developed by leading chemical companies in Japan, are specifically designed to entertain and educate children.

Laboratory Classes on the Wonders of Chemistry Experiments

* Experiment titles are subject to change.

Experiment title

Chemical reactions

Description

Related Group products Isocyanate, Polyol

Participants watch urethane, the uses of which include cushion materials, pillows and refrigerator insulation, being foamed and experience reaction heat and differences in hardness

Field Polymer properties

By making "slime" (i.e. cross-linking polyvinyl alcohol with water using borax), participants learn that water can be confined and about the gels around us in our everyday lives

Field Light

Participants learn about the passage of light through a kaleidoscope fitted with a polarizing plate that converts natural light into linear light, as used in mobile phones and other such devices

Field Adsorption and separation

Participants learn that the ink in a water-based pen contains a mixture of various different colors (pigments)

Field Polymer properties

Participants learn about the properties and separation of plastics, by using the heat shrinkable properties of polystyrene to make their own original accessoriesField Buoyancy

Participants learn about buoyancy and pressure, by making a Cartesian diver from a PET bottle and a plastic soy sauce container

Field Acids and alkalis

Using anthocyanin extracted from red cabbage, participants investigate the properties of everyday liquids and learn about acids and alkalis

Let's make an air freshener using spongy polymers

FieldPolymer propertiesRelated Group products Nonwoven fabrics

Participants learn about the principle of water retention, by making an air freshener from a water-absorbing polymer, as used in disposable diapers, gardening supplies and other such products

Let's make a rainbow tower

Field Specific gravity

Participants learn about the specific gravity (relative density) of fluids, by pouring colored waters with varying concentrations together to make a tower

Let's make a freezer!

FieldHeat of solutionRelated Group products Urea

Participants learn about the principle of heat adsorption via the heat of solution of urea, as used in such products as fertilizer and moisturizing cream

Learn how bubble bath works!

Field Reaction of acid and salt

Participants learn about how carbon dioxide is produced, by making bubble bath from baking soda and citric acid

Learn about acid rain!

Field Acids and alkalis, Oxidation / reduction

Participants learn about acid rain and what causes it, by measuring the pH using red cabbage extract and conducting a bleaching experiment using iodine

Let's make paper!

FieldRecycling / Making paperRelated Group products Acrylamide

Using everyday implements, participants experience paper recycling from old paper and learn about papermaking and recycling

Let's make small objects from melted plastic!

FieldPolymer propertiesRelated Group productsGeneral thermoplasticsParticipants learn about the properties of thermoplastics, which melt when heated, by using a glue gun to melt resin and make small objects

Experience the wonders of shrinking films!

FieldPolymer propertiesRelated Group products Films, PET, etc.

Participants learn about the principle of heat shrinkage, by using shrinkable film to attach labels and make their own PET bottle

See the power of air!

Field Hydrodynamics

Participants learn about air resistance, by observing air rings emitted from an air cannon

Let's make snow on pine cones!

FieldCrystalsRelated Group products Urea

Participants learn about crystal deposition, by observing dissolved urea being sprayed onto pinecones and drying

Field Enzymes

Participants learn about the difference between bioluminescence and chemiluminescence by making light using each of luciferase enzymes taken from fireflies and using mineral-based chemicals

Polymer propertiesRelated Group products TAFNEL™

Participants learn about the principles and how to use adsorbent materials, by absorbing only the oil from mixed oil and water substances They also learn about the impact on the environment of oil spillage

Polymer propertiesRelated Group products ABSORTOMER™

Participants learn about the properties of a variety of plastic films, by taking steps to expand, shrink, and dissolve various plastics. They also learn about changes in polymers (plastics) attributable to temperatures

Social Activities

Management System

Laboratory Classes on the Wonders of

Chemistry

Nurturing Future Generations

Environment

Support for Employees' Participation in

Social Activities

Disaster Relief

Working in Harmony with Local

Communities

Nurturing Future Generations

The future rests on the shoulders of adolescents and children. With that in mind, we carry out various activities aimed at teaching the young that chemicals are all around us, and showing them how fun, interesting and mystifying chemistry can be, as well as getting them interested in science, and inspiring them to create the technologies of the future.

Cosponsoring of Robotics Competition

Mitsui Chemicals, Inc. cosponsored, and held a booth exhibition at, the February 16 Japanese championship of FIRST LEGO League* 2019-2020 (FLL 2019-2020), the world's largest robotics competition. This marks the third time for the event to be cosponsored by Mitsui Chemicals, which supports FLL's idea of providing children with an opportunity to experience the excitement of solving issues in the real world while applying STEM concepts and active learning.

In line with the FLL 2019-2020 theme of City Shaper, Mitsui Chemicals ran a booth exhibiting Toughness coat™, a polyurea resin produced and sold by Mitsui Chemicals Industrial Products Ltd. that helps to extend the life of concrete structures such as tunnels. The booth also served to showcase a power assist suit produced and sold by Power Assist International Corp. that uses Mitsui Chemicals components to achieve lightweighting. In addition, Mitsui Chemicals ran activities as part of its Laboratory Class on the Wonders of Chemistry program. This included pouring colored water of different densities into test tubes to create colorful layers - an experiment that served as a lesson on the specific gravity of liquids and attracted many children to the booth. By teaching these children about the existence of resins that can improve the lifespan of structures, as well as the fact that liquids with the same volume can have different weights depending on their density, Mitsui Chemicals hopes that the day will have served to pique their interest in science further.

* FIRST LEGO League (FLL) :

FLL is one of the world's largest robotics competitions sponsored by FIRST, a nonprofit organization in the United States, and the LEGO Group (the Japanese championship is sponsored by For Inspiration and Recognition of Science and Technology). FLL is currently held in more than 98 countries around the world, and the number of students participating in FLL is more than 320,000. Two to 10 children make a team to participate in the robotics competition and conduct scientific research and its presentation based on the theme of the competition. Top teams at the championship in each country will qualify for the world competition.

Children enjoying a Mitsui Chemicals experiment

Robotics competition

Receiving Internship Trainees

The Mitsui Chemicals Group accepts internship trainees at each of its offices and business affiliates.

Sun Medical Co., Ltd. participates in the All Shiga de Internship program* since fiscal 2018. Held by Shiga Prefecture, this program is designed to help university students living in the prefecture develop a clearer idea about their future career through internships as well as spark the interest of students in local companies.Sun Medical accepted one student from Nagahama Institute of Bio-Science and Technology in August and September in fiscal 2019, providing a 14-day internship. On the final day, the student gave a presentation on the features of Sun Medical from a student perspective and on what the student had learned and noticed through the internship. This presentation session gave a good opportunity for the attending employees to review their own work and inspired them to make improvements. We are continuing this internship program in fiscal 2020.

* All Shiga de Internship :

A program to support corporations and agricultural organizations in the prefecture to secure human resources by promoting their businesses among candidates and advising on recruitment strategies. This internship program is managed by the Shiga Internship Promotion Council to cultivate a practical viewpoint in students about employment and develop an understanding of local companies through prefectural internships, thereby encouraging students to choose to work in Shiga and matching the needs of students and corporations.

Cooperation in Experiential Study Programs for Teachers

The Company held Experiential Study Programs for Teachers for three days from August 7, 2019. Sponsored by the Japan Institute for Social and Economic Affairs, these training sessions date back to 1983. Geared towards teachers from elementary, junior high and high schools, the aim is for them to experience corporate activities, and to convey these experiences to the children who hold the future in their hands. The Company has participated in this program every year since fiscal 2006.

This year, 10 teachers from elementary schools in the Tokyo metropolitan area participated. At the Head Office, the educators had the opportunity to learn about the Group's corporate mission, corporate sustainability management, Responsible Care initiatives, and human resources development. They also saw a demonstration of the Laboratory Class on the Wonders of Chemistry. They visited the production site at the Ichihara works and participated in hands-on laboratory training at the Mitsui Chemicals Plant Operation Technology Training Center. The educators and researches at the Plant Operation Technology Training Center engaged in a lively exchange of opinions, including on the importance of "experience and feeling" as well as "taking notice of and giving thought to something."

An educator training session at the Plant Operation Technology Training Center

Social Activities

Management System

Laboratory Classes on the Wonders of

Chemistry

Nurturing Future Generations

Environment

Support for Employees' Participation in

Social Activities

Disaster Relief

Working in Harmony with Local

Communities

Environment

With the goal of realizing a cohesive society in harmony with the environment, the Mitsui Chemicals Group engages in a variety of environment communication activities.

Mitsui Chemicals Group Clean-up Caravan

To tackle the problem with plastics, the Mitsui Chemicals Group aims to encourage the recycling of resources and promote a circular economy model by implementing our plastics strategies and measures to address the marine plastic waste issues. Marine plastic waste is generated by plastic items that have escaped the process for recycling resources. Stopping such waste from flowing into rivers and the sea is of utmost importance.

Mitsui Chemicals has undertaken clean-up activities in areas around our sites. In fiscal 2019, we launched a group-wide initiative, the Mitsui Chemicals Group Clean-up Caravan, calling on our affiliates in Japan and overseas to join in these activities. Going beyond the range of activities seen to date, the scope of the Caravan was broadened to allow for more employee initiatives, now including participation in clean-up activities organized by nonprofit and governmental bodies as well as clean-ups following community events. A total of 3,670 people participated in the Caravan campaign, collecting 28,580 kg of waste in fiscal 2019.

Mitsui Chemicals Group Clean-up Caravan

Activities at Kugenuma Beach, Kanagawa Prefecture in Head

Activities at Pasir Ris Park by six affiliated companies in

Office

Singapore

Activities at Bruce Park Woods Road Picnic Area in Mitsui

Activities at Shanghai Beijing Forest Park in Mitsui Chemicals

Chemicals America

China

Donating NONROT™ Tree Decks to Shiretoko Nature Foundation Third round of the Protecting Our World Natural Heritage Project

In the third round of the Mitsui Chemicals Group's Protecting Our World Natural Heritage Project series, Mitsui Chemicals, Inc. and Mitsui Chemicals Industrial Products Ltd.) have donated three tree decks to mark the 40th anniversary of the Shiretoko Nature School, a project organized by Shiretoko Nature Foundation, which is based in Shari, Hokkaido Prefecture.

The World Natural Heritage Site of Shiretoko was the birthplace of Japan's first national trust movement, the Shiretoko 100 Square-Meter Movement Trust. Today, the Shiretoko Nature Foundation works to protect Shiretoko's natural splendor through activities centered on the approach of learning, protecting and educating, including environmental education and awareness activities; wildlife conservation, management and research; and forest development. Since 1980, the Shiretoko Nature School Initiative has been held week-long courses, in which children from across Japan spend a week camping outdoors in Shiretoko National Park. The Shiretoko Nature School aims to ensure that Shiretoko's magnificent natural environment can be passed on to the next generation. Since that first course, more than 1,900 children have spent a week at Shiretoko during summer.

To mark the 40th anniversary of the Shiretoko Nature School, Mitsui Chemicals Group donated three tree decks for the Ponhoro Forest, where Nature School courses take place. The tree decks were made between July and October 2019 with the help of children attending the Nature School, as well as by Nature School alumni, members of Shari Town and the Shiretoko Nature Foundation and many others. The decks were treated with NONROT™*, a wood protective coating supplied by Mitsui Chemicals Industrial Products.

* NONROT™:

NONROT™ is a highly safe timber coating that makes full use of wood's natural breathability. It offers outstanding water-repellency, UV resistance and protection against rot, fungus and insects. NONROT™ has become the wood protective coating of choice for many architects, designers and their clients, as it allows the wood to breathe, enabling users of products treated with the coating to enjoy the pleasant scent of the timber itself.

Rice Paddy Organism Surveys Providing Opportunities to Learn about Biodiversity

Mitsui Chemicals Agro, Inc. recently took elementary school students on rice paddy organism surveys across two locations in Miyagi Prefecture.

The rice paddy organism survey held for third-grade students from Tsurusu Elementary School in Taiwa-cho has been hosted annually by JA Asahina (Taiwa-cho, Kurokawa-gun, Miyagi Prefecture) since 2015. Mitsui Chemicals Agro's Sendai branch office assists community coordinators, teachers and JA ZEN-NOH staff with the survey, which is conducted within the context of Community Cooperation Activities for Learning and Education promoted by the Ministry of Education, Culture, Sports, Science and Technology (MEXT).

Meanwhile, this year marked the first time for the rice paddy organism survey to be held for third- and fourth-grade students from Kami-Ayashi Elementary School, Sakunami Elementary School and Okura Elementary School in Sendai, coming at the behest of former Tohoku University Science Coordinator Tomiichiro Ishigaki and with the cooperation of Mitsui Chemicals Agro's Sendai branch office.

Tsurusu Elementary School

Kami-Ayashi Elementary School, Sakunami Elementary School, Okura

Date: June 11, 2019

Location: Taiwa-cho, Kurokawa-gun, Miyagi

Prefecture

Location: Sendai, Miyagi Prefecture

Number of participants: 35

Number of participants: 22

Elementary School Date: June 20, 2019

Not only involved in sales of agrochemicals, the Mitsui Chemicals Agro surveys the effects of agrochemical use on wildlife in rice paddies, which is useful for the improvement and development of agrochemical products. Further, the Mitsui Chemicals Agro conducts surveys, and we publish results summaries of these surveys that certify that rice was grown in rice paddies inhabited by a wide variety of wildlife, which contributes to adding value to local rice.

Mitsui Chemicals Agro Takes Schoolchildren on Exploration of Rice Paddy Organisms

Raising awareness of biodiversity conservation in rice cultivation

Donation to the Singapore Government to Support Coral Protection

Five Mitsui Group companies in the Asia Pacific region*participated in the Grow-A-Reef-Garden project led by JTC Corporation and the National Parks Board (NParks). The project aims to protect coral reefs in the offshore of Small Sister's Island in Singapore by sinking a large-scale artificial reef structure. The project opening ceremony was held with a great fanfare on October 18, 2018, attended by the Speaker of the Singapore Parliament and representatives from numerous donors, including from our company.

* Five companies of Mitsui Chemical Group in Asia-Pacific region :

Mitsui Chemicals Asia Pacific, Ltd., Mitsui Phenols Singapore Pte. Ltd., Mitsui Elastomers Singapore Pte. Ltd, Mitsui Chemicals Singapore R&D Centre Pte. Ltd., Prime Evolue Singapore Pte. Ltd.

Photo courtesy of JTC Corporation

Social Activities

Management System

Laboratory Classes on the Wonders of

Chemistry

Nurturing Future Generations

Environment

Support for Employees' Participation in

Social Activities

Disaster Relief

Working in Harmony with Local

Communities

Support for Employees' Participation in Social Activities

As its employees maintain a keen awareness toward social challenges, Mitsui Chemicals provides support for them to remain human resources that voluntarily take it upon themselves to contribute to society.

One-Coin Club

We set up the One-Coin Club in November 2007. Employees who join the club choose an amount to be deducted from their salaries or bonuses, which is used to fund donations to organizations involved in social activities. The One-Coin Club Management Committee, formed by volunteer members, specifies the priority areas for support, and reviews and selects which organizations donations should be made to.

Priority Areas of Support

  • (1) Activities aimed at nurturing future generations/saving lives and protecting the livelihoods of children

  • (2) Activities aimed at supporting people with disabilities/contributing to patients with intractable diseases

  • (3) Activities that contribute to medical/maintenance disaster response systems

  • (4) Activities that protect the global environment

As of October 2019, the Club had 733 members, who between them contributed approximately ¥3.7 million to the fund in fiscal 2019.

In fiscal 2019, we donated a total of ¥6.4 million - ¥3.2 million from the One-Coin Club and a matching gift* of the same amount from the Company - to a total of 16 organizations involved in a range of social activities. The Club also donated ¥850,000 from its fund to support those who suffered from the heavy rains by Typhoons Faxai and Hagibis.

* Matching gifts :

A program that supports employees' social contribution activities whereby a company provides a matching donation of the same amount when an employee donates to a social or environmental organization.

Organizations That Benefited from Donations in Fiscal 2019

Organization Name (In random order)

Priority Areas of Support

Past Donation History (Years)

United Nations World Food Programme (Japan)

(1)

2008-2019

Japan Committee, Vaccines for the World's Children

(1)

2008-2019

SUCCESS

(1)

2011-2019

Nanbyo Network

(1) (2)

2009-2019

Guide Dog & Service Dog & Hearing Dog Association of Japan

(2)

2008-2019

Japan Marrow Donor Registry Promotion Conference

(2)

2008, 2010-2019

Helicopter Emergency Medical Network (HEM-Net)

(3)

2010-2019

team RESCUE

(4)

2012-2019

Asia Prevention of Blindness Association

(2)

2013, 2016-2019

MEDECIN SANS FRONTIERES

(3)

2014-2019

Japan Environmental Action Network

(4)

2015-2019

Chance for Children

(1)

2017-2019

Kamonohashi Project

(1)

2015, 2018-2019

5years

(2)

2018-2019

Peace Winds Japan (PWJ)

(1) (3)

2009, 2012-2017, 2019

FoE Japan

(4)

New

As part of our health and productivity management, the Company and the labor union have called on employees to participate in the WFP Walk the World since fiscal 2014. The WFP Walk the World is a charity walk event held by the United Nations World Food Programme, and offers employees an opportunity to raise their awareness of world hunger.

On our Family Day, we organized a presentation about assistance dogs from a member of the Guide Dog & Service Dog & Hearing Dog Association of Japan, one of the organizations that we help. The presentation was attended by our employees and their families, as well as employees of other companies in the same building, and gave us an

opportunity to reflect on creating an inclusive society.

Community Service Leave Program

In August 2008, we introduced a community service leave program to provide support for employees participating in social activities, by enabling them to take up to two day's paid leave a year. In fiscal 2019, employees made use of the program 88 times.

Since 2011, we have also been allowing employees to take up to eight days' special leave each year, so that they can engage in social activities aimed at providing disaster relief.

Social Activities

Management System

Laboratory Classes on the Wonders of

Chemistry

Nurturing Future Generations

Environment

Support for Employees' Participation in

Social Activities

Disaster Relief

Working in Harmony with Local

Communities

Disaster Relief

The Mitsui Chemicals Group is committed to building a system that can quickly and effectively provide relief that closely fits the needs of people in areas affected by a disaster by working closely with organizations such as NPOs and local authorities. We are also exploring actions that can contribute to enhanced co-creation as part of our New Disaster Recovery Activities.

Disaster Relief Supplies

Our disaster relief activities here at Mitsui Chemicals originated from suggestions submitted by employees, who wanted to help those affected by earthquakes and other major disasters by providing them with useful Mitsui Chemicals products. In fiscal 2009, we set up warehouses to store relief supplies at two of our sites - the Iwakuni-Ohtake Works (Yamaguchi Prefecture) to cover West Japan and the Mobara Branch Factory (Chiba Prefecture) to cover East Japan - and put in place the necessary framework to swiftly send out supplies upon request from contact partners*1 and local governments. We have stockpiles of items such as urethane mattresses (cushioned materials to lay on the floors of gymnasiums being used as evacuation shelters), waterproof tarpaulin sheets (to cover buildings damaged by water or landslides), and air cushions*2 (for use at evacuation shelters) at both of these warehouses. In fiscal 2019, we offered relief supplies to those areas affected by the Northern Kyushu Heavy Rain, Typhoon Faxai (No. 15), and Typhoon Hagibis (No.19). We also donated five million yen to the Japanese Red Cross Society to support the people and areas affected by those typhoons. A donation of one million yuan (approx. 16 million yen) was also made to the Red Cross Society of China to support COVID-19 countermeasures.

  • *1 Contact partners:

    Team Rescue Peace Winds Japan

  • *2 Air cushion:

    Developed by Wako Plastic Industry Co., Ltd. in response to comments from people affected by the Great East Japan Earthquake, air cushions provide an alternative to pillows, conventional cushions, and matrasses. Boasting a host of features, air cushions provide sound protection and comfort against the hard and cold floors of evacuation shelters.

    Made from the polyethylene EVOLUE™ material manufactured by Prime Polymer Co., Ltd., a Mitsui Chemicals Group company, the cushioning properties of these air cushions can be adjusted using a single straw. These air cushions also withstand heavy loads and offer environmentally friendly properties.

Goods delivered by an NPO to an evacuation center

Tarpaulin sheets carried by an NPO to an evacuation center

Distribution of Disaster Relief Supplies in Fiscal 2019

Northern Kyushu Heavy Rain

Location

Contact

Details of Relief Supplies Provided

Omachi Branch, Shiraishi Fire Station, Fire Dept. HQ of Kito Cross-Border Municipalities

Hakata Port and Airport Office Kyushu Regional Development Bureau, MLIT

- TAFNEL™ Oil Blotter™ 22 boxes, etc.

Welfare & Health Center and Omachi-cho Community Hall in Omachi-cho, Kishima-gun, Saga Prefecture

Social Emergency Management Alliance (SEMA)

A-PAD Japan

- Urethane mattresses 200

- Tarpaulin sheets 200

Green COOP Wakamiya Distribution Center

(Evacuation housing for Takeo City)

NPO Team Rescue

- Urethane mattresses 100

Typhoon Faxai (No. 15)

Location

Contact

Details of Relief Supplies Provided

Kyonan Elementary School and Tateyama City Hall, Chiba Prefecture

SEMA

Peace Winds Japan

- Tarpaulin sheets 99

Central Fire Station, Ichihara City, Chiba Prefecture

Ichihara City

- Tarpaulin sheets 100

Typhoon Hagibis (No. 19) and heavy rain

Location

Contact

Details of Relief Supplies Provided

Central Fire Station, Ichihara City, Chiba Prefecture

Ichihara City

- Tarpaulin sheets 150

Establishment of SEMA, Japan's First Private-led Disaster Response Alliance

Alongside 17 other private companies *1 and six non-profit organizations *2 Mitsui Chemicals participated in the establishment of SEMA (Social Emergency Management Alliance), Japan's first privately led disaster support alliance. The organization provides one-stop support, including goods and services of participating companies and NPOs in the event of a large-scale natural disaster in Japan. The Great East Japan Earthquake showed us that municipalities themselves can be greatly damaged in a disaster, making the assessment of local conditions and support to those in need all the more difficult. The SEMA organization crosses the divide between companies and NPOs and aims to minimize the impact of natural disasters of the nation's citizens and speed recovery efforts.

The SEMA organization makes in advance a list of goods and services offered by participating companies and organizations, and during a natural disaster can rapidly send packaged support based on that list to afflicted areas. The organization also aims to cooperate with public institutions in offering support and exchanging information, with the general aim of reducing the burden on municipalities and cutting down on waste and unnecessary support.

SEMA organization partners (53 companies and six civil groups, as of January 24, 2020)

  • *1 Private companies :

    Askul, FSX, Asahi Kasei, Oisix.daiichi, Kirin, Gunze, Saraya, JG Marketing, Johnson & Johnson Japan, Star Festival, Snow Peak, Seino Transportation, Seibu Properties, SoftBank, Japan Airlines, Heart Moving Service, FamilyMart, V-cube, Yahoo! Japan, ROHTO Pharmaceutical and others.

  • *2 Non-profit organizations :

    Asia Pacific Alliance for Disaster Management (Japan), specified non-profit corporation ADRA Japan, specified non-profit corporation HuMA, Civic Force (a public interest incorporated association), specified non-profit corporation Peace Winds (Japan), and The NGO Collaboration Center for Hanshin Earthquake Rehabilitation.

    Great East Japan Earthquake: Working to Support New Disaster Recovery Activities

In 2016, five years after Great East Japan Earthquake, the Mitsui Chemicals Group, alongside four companies already supporting the town of Minamisanriku and one new company, launched Discover the Future Minamisanriku, centered on co-creative activities, with the goal of meeting the town's request to "create industries that bring together the community and companies while fostering local pride."

The initiative involves engaging in discussions about creating a vision of community pride, what is required to realize this, and what companies can do to help, including how to utilize businesses and products, and cooperation between companies and NGOs to "build back better* " based on the community's history, culture, and disaster status. In keeping with the town's characteristics under the key words-forest, home, ocean, and people- the project presented a future-oriented joint business creation action to the community that leverages the strengths of each company.

In fiscal 2019, 13 employees from four group companies visited Minamisanriku to have study tours for local sustainability and discuss what each company could do under the theme of "Refine the Future Minamisanriku." We then started our projects, working together with local organizations to realize our plans. We are engaged in discussions regarding specific actions aimed at creating a new Minamisanriku by 2030. As a new way to support reconstruction efforts moving forward, we will continue to promote cooperative action with the people of the town and the partner organizations.

* Build back better

Build back better refers to reconstruction after a disaster with an eye toward creating a more resilient community able to better withstand any future disasters.

2018 Create The Future MinamisanrikuShort Ver.

2018 Create The Future MinamisanrikuLong Ver.

Social Activities

Management System

Laboratory Classes on the Wonders of

Chemistry

Nurturing Future Generations

Environment

Support for Employees' Participation in

Social Activities

Disaster Relief

Working in Harmony with Local

Communities

Working in Harmony with Local Communities

At each of its business sites, the Mitsui Chemicals Group believes that relationships of trust, based on close-knit relations with everyone in the local area, are crucial to the normal and stable operation of its businesses. The Group thus provides opportunities for communication with everyone in the vicinity of its facilities.

Local Communication at Each Business Site

At each of our business sites, we invite local residents living in the vicinity to opinion exchange meetings and tours of our facilities. At the opinion exchange meetings, we provide an overview of the works and showcase our efforts to protect the environment, safety initiatives and activities designed to contribute to society. Lively discussions have ensued from residents living in the vicinity of our facilities speaking about their day-to-day feelings and any requests they had. We would like to reflect everyone's opinions and requests in the management of our business sites.

We are working to further deepen mutual understanding by holding events and actively taking part in local events.

Examples of opinion exchange meetings/facility tours

Ichihara Works

Date

Those for Whom Meeting/Tour Organized

Details

Autumn Festival

Conducted Laboratory Class on the Wonders of

Chemistry

Events on the stage

Kids Corner (playground equipment)

Mobara Branch Factory

Date

Those for Whom Meeting / Tour Organized

Details

September 28, 2019

Local neighborhood council officers

Fureai Park 2019Various stage shows

A meeting to exchange opinions

November 18, 2019

Local neighborhood council officers

Summarized explanation of plant

Plant and Technology Training Center tours

A meeting to exchange opinions (About environmental protection and process safety as well as disaster prevention initiatives, dialogue with local communities, etc.)

Nagoya Works

Date

Those for Whom Meeting / Tour Organized

Details

August 23, 2019

Children's clubs from neighboring school districts

Plant tour

Conducted Laboratory Class on the Wonders of Chemistry

October 26, 2019

Local residents

Autumn Festival

November 28, 2019

Officers from neighboring school districts

Plant tour

Osaka Works

Date

Those for Whom Meeting / Tour Organized

Details

May 28, 2019

Local neighborhood council officers

Summarized explanation of plant

Explanation on such matters as environmental protection and disaster prevention activitiesPlant tour

A meeting to exchange opinions

Oct.-Nov. 2019 (Total of 7 times)

Local elementary schools

Summarized explanation of plantFire fighting facilities and plant tours

Simple hands-on laboratory class on chemistry

February 6, 2020

Related parties of local government and various organizations

Local dialogue on responsible care

Summarized explanation of plant

Explanation on measures for responsible care

Plant tour

A meeting to exchange opinions

Iwakuni-Ohtake Works

Date

Those for Whom Meeting / Tour Organized

Details

July 10, 2019

Heads of local neighborhood councils and those in charge of volunteer disaster response organizations

Summarized explanation of plant

Explanation on disaster prevention initiatives

Plant tour

Meeting to exchange opinions

Aug.-Dec. 2019 (Total of 4 times)

Local elementary schools

Conducted Laboratory Class on the Wonders of

Chemistry

November 17, 2019

Local residents

Autumn Festival

Omuta Works

Date

Those for Whom Meeting / Tour Organized

Details

October 18, 2019

Related parties of local neighborhood councils

Plant overview and explanation on social contribution activities

Explanation on measures against natural disastersExplanation of Technology Training at Works and participation in hands-on training

A meeting to exchange opinions

Oct.-Nov. 2019

Local elementary schools

Conducted Laboratory Class on the Wonders of

Chemistry

Sodegaura Center

Date

Those for Whom Meeting / Tour Organized

Details

August 8, 2019

Related parties of local neighborhood council, neighborhood companies, municipal office

Summer Festival

February 18, 2020

Local neighborhood council officers

Explanation of Center and tour

Conducted Laboratory Class on the Wonders of

Chemistry

A meeting to exchange opinions

Cleanup activities around

Ichihara Works

Meeting to exchange opinions at Mobara Branch Factory

Meeting to exchange opinions at Nagoya Works

Junior rubber baseball tournament at Osaka Works

Meeting to exchange opinions at Iwakuni-Ohtake Works

Autumn Festa at Omuta Works

Meeting to exchange opinions at Sodegaura Center

ESG Performance Data

Environment

Society

Governance

Environment

Input Output Data (FY2019)

Greenhouse Gas (GHG) Energy

GHG

Scope

2016

2017

2018

2019

GHG emissions (Scope1) / thousand tons

Mitsui Chemicals, Inc.

3,700

3,570

3,450

3,550

Domestic subsidiaries & affiliates

310

270

110

70

Overseas subsidiaries & affiliates

250

260

220

160

Global

4,260

4,100

3,780

3,780

GHG emissions (Scope2) / thousand tons

Mitsui Chemicals, Inc.

740

750

720

610

Domestic subsidiaries & affiliates

170

180

160

140

Overseas subsidiaries & affiliates

550

550

560

540

Global

1,460

1,480

1,440

1,290

GHG emissions (Scope1, Scope2) / thousand tons

Global

5,730

5,580

5,220

5,060

GHG emissions (Scope3) / thousand tons

Mitsui Chemicals, Inc.

10,710

11,080

11,694

GHG emissions intensity per unit of sales /tonsbillion yen-1

Global

472

420

352

378

GHG emissions reduction rate (compared with fiscal 2005, operating at full capacity) / %

Mitsui Chemicals, Inc.

22.6

24.5

27.3

27.7

Energy

Scope

2016

2017

2018

2019

Energy consumption / PJ

Mitsui Chemicals, Inc.

78.3

76.2

75.1

75.5

Domestic subsidiaries & affiliates

4.1

4.2

3.9

3.5

Overseas subsidiaries & affiliates

14.3

14.6

13.9

10.3

Global

96.7

94.9

92.9

89.3

Energy intensity index (FY2009=100)

Mitsui Chemicals, Inc.

94.0

93.4

94.6

94.9

Five-year annual energy intensity reduction rate /%

Mitsui Chemicals, Inc.

1.4

1.3

0.

3

0.

4

Industrial Waste

Global

Recycling

Scope

2016

2017

2018

2019

Amount recycled externally / thousand tons

Mitsui Chemicals, Inc.

54.3

61.4

68.0

60.9

Domestic subsidiaries & affiliates

31.5

31.1

28.8

27.5

Overseas subsidiaries & affiliates

31.3

32.3

34.7

24.3

Global

117.1

124.8

131.7

112.7

Recycling rate / %

Domestic

73.1

71.6

72.1

71.4

Overseas

78.4

75.3

73.5

69.9

157.2

172.1

181.7

158.6

Landfill

Scope

2016

2017

2018

2019

Landfill / thousand tons

Mitsui Chemicals, Inc.

0.6

0.5

0.4

0.4

Domestic subsidiaries & affiliates

0.1

0.1

0.1

0.2

Overseas subsidiaries & affiliates

0.2

0.1

0.2

0.2

Global

0.9

0.7

0.7

0.8

Landfill rate for industrial waste / %

Domestic

0.4

0.3

0.3

0.4

Oversea

0.4

0.3

0.4

0.5

Global

0.4

0.3

0.3

0.4

Substances Subject to the PRTR Act

Scope

2016

2017

2018

2019

Substances subject to the PRTR Act emissions / tons

Air

Mitsui Chemicals,

789

766

816

768

Inc.

2016

2017

2018

2019

1,676

1,574

1,621

1,579

408

395

350

405

84

62

64

58

2,168

2,031

2,035

2,042

2,588

2,311

2,110

2,311

303

295

253

108

456

203

195

254

3,348

2,809

2,558

2,673

261

273

223

368

135

131

97

42

25

41

67

62

422

444

387

472

128

114

101

88

22

18

13

7

27

30

90

60

176

162

204

155

14

15

13

15

WaterEfficient Use of Water

Emissions of Water Pollutants

Scope

2016

2017

2018

2019

COD, BOD emissions / tons

Mitsui Chemicals, Inc.

849

889

888

884

Domestic subsidiaries & affiliates

75

68

72

68

Overseas subsidiaries & affiliates

1,927

2,944

2,601

1,676

Global

2,851

3,901

3,561

2,628

Total nitrogen emissions / tons

Mitsui Chemicals, Inc.

866

1,053

1,138

1,269

Total phosphorous emissions / tons

Mitsui Chemicals, Inc.

40

33

41

27

Environmental Accounting

Scope

2016

2017

2018

2019

Environmental preservation costs (Investment) / billion yen

Mitsui Chemicals, Inc.

9

13

19

19

Environmental preservation costs (Expenditure) / billion yen

220

212

217

222

Economic impact of environmental initiatives / billion yen

14

13

12

11

Visualization of Contributions to the Environment

Scope

2016

2017

2018

2019

Blue Value™ products sales ratio / %

Global

17

17

16

18

Others

Scope

Number of environment-related accidentsGlobal

2016

2017

2018

2019

0

0

0

0

Mitsui Chemicals Group ESG Report Appendix

INPUTOUTPUT Data FY2019

Mitsui Chemicals Group

INPUT

Purchased materials

OUTPUT

OUTPUT

Energy

Products,etc.

Energy

Products, etc.

Energy consumption

89.3

Products shipped

6,642

Energy consumption

Products shipped

4,573

(PJ)

(thousand tons)

(PJ)

(thousand tons)

Raw materials

(thousand tons)

6,594

Purchased materials

(thousand tons)

66

Water resources

Water withdrawal

( million m3)

Tap water

( million m3)

1.5

Ground water

( million m3)

1.8

Industrial water

( million m3)

94.1

Seawater

( million m3)

418.7

516.1

Recycled water

( million m3)

1,824.5

Mitsui Chemicals Group

Atmospheric emissions

GHG(thousand tons) 5,060

Scope1 3,780

Scope2 1,290

Fluorocarbons(tons) 10

NOx(tons) 2,673

SOx(tons) 472

Hazardous air pollutants(tons)

15

VOC(tons)

Soot and dust (tons)

2,042 155

Industrial waste

Waste sent off-site

(thousand tons)

Amount recycled externally

(thousand tons)

158.6 112.7

Off-site landfill

(thousand tons)

0.8

Wastewater

CODBOD(tons) 2,628

Total nitrogen(tons) 1,269

Total phosphorous(tons) 27

Effluent(million m3)

Wastewater treatment

(million m3)

Mitsui Chemicals, Inc.

INPUT

75.5

Purchased materials

Raw materials

(thousand tons)

Purchased materials

(thousand tons)

4,597 24

Water resources

Water withdrawal

( million m3)

Tap water

0.8

( million m3)

Ground water

0.6

( million m3)

Industrial water

81.9

( million m3)

Seawater

409.5

( million m3)

492.7

Recycled water

1,686.2

( million m3)

Mitsui Chemicals,Inc.

Atmospheric emissions

GHG(thousand tons) 4,160

Scope1 3,550

Scope2 610

Fluorocarbons(tons) 8

NOx(tons)

SOx(tons)

2,311 368

Hazardous air pollutants(tons)

15

VOC(tons)

Soot and dust (tons)

1,579 88

Industrial waste

Waste sent off-site

(thousand tons)

Amount recycled externally

(thousand tons)

Off-site landfill

(thousand tons)

92.1 60.9 0.4

Wastewater

CODBOD(tons)

Total nitrogen(tons)

884 1,269

Total phosphorous(tons) 27

494.6 52.2

473.8

52.2

OUTPUT

Energy

Products, etc.

Energy consumption

Products shipped

1,530

(PJ)

(thousand tons)

Effluent(million m3)

Wastewater treatment

(million m3)

Domestic Subsidiaries & Affiliates

INPUT

Energy

Energy consumption

3.5

(PJ)

Purchased materials

Raw materials

(thousand tons)

Purchased materials

(thousand tons)

477 18

Water resources

Water withdrawal

( million m3)

Tap water

( million m3)

0.3

Ground water

( million m3)

1.2

Industrial water

( million m3)

9.3

Seawater

9.2

( million m3)

19.9

Recycled water

( million m3)

101.5

Domestic Subsidiaries & Affiliates

OUTPUT

Products, etc.

Products shipped

(thousand tons)

539

Atmospheric emissions

GHG(thousand tons)

210

Scope1

70

Scope2

140

Fluorocarbons(tons)

0

NOx(tons)

108

SOx(tons)

42

VOC(tons)

405

Soot and dust (tons)

7

Industrial waste

Waste sent off-site

(thousand tons)

Amount recycled externally

(thousand tons)

Off-site landfill

(thousand tons)

31.8 27.5 0.2

Wastewater

CODBOD(tons)

Wastewater discharge

(million m3)

68 19.6

Overseas Subsidiaries & Affiliates

INPUT

10.3

Purchased materials

Raw materials

1,520

(thousand tons)

Purchased materials

25

(thousand tons)

Water resources

Water withdrawal

( million m3)

Tap water

( million m3)

0.4

Ground water

0.0

( million m3)

Industrial water

3.0

( million m3)

Seawater

0.0

( million m3)

3.4

Recycled water

( million m3)

36.9

Overseas Subsidiaries & Affiliates

Atmospheric emissions

GHG(thousand tons)

700

Scope1

160

Scope2

540

Fluorocarbons(tons)

2

NOx(tons)

254

SOx(tons)

62

VOC(tons)

58

Soot and dust (tons)

60

Waste sent off-site

(thousand tons)

Amount recycled externally

(thousand tons)

Off-site landfill

(thousand tons)

34.7 24.3 0.2

CODBOD(tons)

Wastewater discharge

(million m3)

1,676 1.2

Mitsui Chemicals Group ESG Report Appendix

Ichihara Works

We commenced operations at ourIchihara Works in 1967. It is one of the leading comprehensive petrochemical Works in the country, manufacturing various resins, chemical products and other derivatives around a central ethylene plant. Production activities continue to go from strength to strength, as our core Works for petrochemical and basic chemical products.

https://www.mitsuichem.com/jp/corporate/group/domestic_02.htm

INPUT

27,977

OUTPUT

OUTPUT

Energy

Products, etc.

Energy

Products, etc.

Energy consumption

Products shipped

Energy consumption

Products shipped

(thousand GJ)

(thousand tons)

(thousand GJ)

(thousand tons)

Purchased materials

Industrial water

(thousand m3)

21,390

Seawater

(thousand m3)

324,480

Water withdrawal

346,012

(thousand m3)

Tap water

0

(thousand m3)

Ground water

142

(thousand m3)

Recycled water

( million m3)

384,902

Ichihara Works

1,758

Atmospheric emissionsIndustrial wasteWastewater

Mobara Branch Factory

We commenced operations at our Mobara Branch Factory in 1957, with the aim of expanding the chemical industry using natural gas as a raw material. These days, it specializes in manufacturing highly functional products. We established our Plant Operation Technology Training Centeronsite in 2006, as an educational facility and a focal point for transferring skills throughout the company.

https://www.mitsuichem.com/jp/corporate/group/domestic_08.htm

INPUT

748

Purchased materials

Mobara Branch Factory

48

Atmospheric emissionsIndustrial wasteWastewater

Nagoya Works

We were the first in Japan to use our own unique technology to manufacture polyvinyl chloride resins at our Nagoya Works in 1951, using unique technology that had never previously been used in Japan.These days, the works has transformed into a production hub specializing in electronic and IT materials and products.Its main products include processing tape for manufacturing integrated circuits(IC) and sealant sheets for solar cells.

https://www.mitsuichem.com/jp/corporate/group/domestic_03.htm

INPUT

OUTPUT

Energy

Products, etc.

Energy consumption

Products shipped

(thousand GJ)

(thousand tons)

713

Nagoya Works

49

Atmospheric emissionsIndustrial wasteWastewater

Wastewater discharge

2,122

Wastewater discharge

64,315

(thousand m3)

(thousand m3)

Wastewater treatment

0

Wastewater treatment

10,153

(thousand m3)

(thousand m3)

Osaka Works

Located in the Sakai Senboku Coastal Industrial Zone, one of the leading industrial areas in Japan,our Osaka Works has a large dock capable of accommodating 100,000 -ton tankers. Production activities make the most of the Works'ideal location,in terms of operations and distribution, with nearly half of all products and raw materials transported by ship.

https://www.mitsuichem.com/jp/corporate/group/domestic_04.htm

INPUT

Energy

Energy consumption

(thousand GJ)

30,985

Osaka Works

OUTPUT

Products, etc.

Products shipped

(thousand tons)

2,034

Atmospheric emissions

Mitsui Chemicals Group ESG Report Appendix

Iwakuni-Ohtake Works

We commenced operations at our Iwakuni-Ohtake Works in April 1958, as Japan's first comprehensive petrochemical works. It manufactures PTA, the raw material in polyester fibers, and PET resin, which is used to make plastic bottles, and is one of the largest scale facilities of its kind in the country.

https://www.mitsuichem.com/jp/corporate/group/domestic_05.htm

INPUT

7,809

OUTPUT

Energy

Products, etc.

Energy consumption

Products shipped

(thousand GJ)

(thousand tons)

Purchased materials

Iwakuni-Ohtake Works

436

Atmospheric emissionsIndustrial wasteWastewater

Omuta Works

We commenced operations at our Omuta Works in 1912 and continued to operate as a coal complex through to the early 1960s, using byproducts from Mitsui Mining's coke ovens. These days, the Works specializes in organic synthesis technology and serves as our main fine chemical facility, primarily manufacturing functional chemicals.

https://www.mitsuichem.com/jp/corporate/group/domestic_06.htm

INPUT

Energy

Energy consumption

7,028

(thousand GJ)

Purchased materialsWater resources

Omuta Works

OUTPUT

Products, etc.

Products shipped

(thousand tons)

248

Atmospheric emissionsIndustrial wasteWastewater

Sodegaura Center (R&D Center)

Including affiliates, our R&D center brings together around 1,000 researchers, all of whom continue to create new technologies and materials in an effort to make society a more comfortable place.

https://www.mitsuichem.com/jp/corporate/group/domestic_07.htm

INPUT

Energy

Energy consumption

(thousand GJ)

228

Sodegaura Center (R&D Center)

OUTPUT

Products, etc.

Products shipped

(thousand tons)

0

Atmospheric emissionsIndustrial wasteWastewater

ESG Performance Data

Environment

Society

Governance

Society

Employees

Scope

2016

2017

2018

2019

Number of employees

Global

13,423

17,277

17,743

17,979

Mitsui Chemicals, Inc.*

6,516

6,541

6,670

6,773

Region

Scope

2016

2017

2018

2019

Ratio of region / %

Global

Japan

67.0

57.5

57.0

57

China

5.6

6.6

6.6

5

Asia

8.8

9.7

9.8

11

Europe

8.2

17.0

17.5

18

North, Central, and South America

10.3

9.2

9.1

9

Others

0.1

0.0

0.0

0

Gender

Scope

2016

2017

2018

2019

Number of employees

Mitsui Chemicals, Inc.*

Male

5,709

5,720

5,827

5,892

Female

807 (12.4%)

821 (12.6%)

843 (12.6%)

881 (13.0%)

Total

6,516

6,541

6,670

6,773

Age

Scope

2016

2017

2018

2019

Average age / age

Mitsui Chemicals, Inc.*

Male

42.3

41.9

41.8

Female

44.6

44.5

44.0

Total

42.5

42.2

42.1

Number of employees

Mitsui Chemicals, Inc.*

10s

(Ages 18 or older)

86

116

136

114

20s

940

1,015

1,112

1,201

30s

1,082

1,128

1,204

1,243

40s

2,451

2,254

2,079

1,928

Over 50s

1,957

2,028

2,139

2,287

Total

6,516

6,541

6,670

6,773

Nationality

Scope

2016

2017

2018

2019

Number of non-Japanese employees

Mitsui Chemicals, Inc.*

55

57

54

54

Disabilities

Scope

2016

2017

2018

2019

Ratio of employees with disabilities / %

Mitsui Chemicals, Inc.*

2.3

2.3

2.4

2.3

Management Positions

Labor union members

Scope

2016

2017

2018

2019

Ratio of labor union members / %

Mitsui Chemicals, Inc.*

47.1

53.7

54.0

54.5

Employee-friendly Working EnvironmentService and Turnover

Overtime

Scope

2016

2017

2018

2019

Number of employees whose overtime hours exceeded 80 hours / month

Mitsui Chemicals, Inc.*

Non-management staff

216

100

22

33

Management staff

120

67

36

21

Total

336 (5.2%)

167 (2.6%)

58 (0.9%)

54 (0.8%)

Average overtime hours / hours/month-1

Mitsui Chemicals, Inc.*

21.4

21.4

21.1

20.9

Average overtime hours (statutory) /hoursmonth-1

Mitsui Chemicals, Inc. *(excluding shift workers)

0.5

1.9

1.1

Paid Leave

Scope

2016

2017

2018

2019

Paid leave usage rate / %

Mitsui Chemicals, Inc.*

Non-management staff

81

79

83

86

Management staff

56

56

62

70

Total

70

69

74

79

Average number of days used for paid leave

Mitsui Chemicals, Inc.*

Total

14.8

15.8

Childcare

Scope

2016

2017

2018

2019

Number of employees taking childcare leave

Mitsui Chemicals, Inc.*

Male

62

71

89

85

Female

16

17

13

15

Total

78

88

102

100

Childcare leave usage rate / %

Mitsui Chemicals, Inc.*

Male

39

40

56

48

Female

100

100

100

100

Total

45

45

59

52

Average number of days used for childcare leave

Mitsui Chemicals, Inc.*

Male

8.0

13.2

Return rate of employees from childcare leave / %

Mitsui Chemicals, Inc.*

Male

97

99

100

Female

100

100

100

Total

98

99

100

Employee retention rate three years after childcare leave / %

Mitsui Chemicals, Inc.*

Male

91

94

83

Female

96

93

93

Total

92

94

86

Number of employees using short working hours for childcare

Mitsui Chemicals, Inc.*

Male

2

3

1

4

Female

88

91

85

88

Total

90

94

86

92

Family Care

Scope

2016

2017

2018

2019

Number of employees taking paid family care leave

Mitsui Chemicals, Inc.*

0

0

0

1

Number of employees using short working hours for family care

Mitsui Chemicals, Inc.*

1

1

0

1

Recruitment

Scope

2017

2018

2019

Total number of employees hired

Mitsui Chemicals, Inc.*

Male

298

333

250

Female

35 (11%)

46 (12%)

61 (19.6%)

Regular recruitment

202

267

245

Mid-career recruitment

131

112

66

Total

333

379

311

Number of Employees Hired through the Regular Recruitment

Scope

2017

2018

2019

Career-track administrative positions

Mitsui Chemicals, Inc.*

Male

12

10

14

Female

10 (46%)

9 (47%)

15 (52%)

Total

22

19

29

Career-track technical positions

Mitsui Chemicals, Inc.*

Male

49

73

64

Female

6 (11%)

14 (16%)

12 (16%)

Total

55

87

76

General positions

Mitsui Chemicals, Inc.*

Male

121

153

124

Female

4 (3.2%)

8 (5.0%)

16 (11.4%)

Total

125

161

140

Number of Employees Hired through the Mid-career Recruitment

Human Resources Development

Scope

2017

2018

2019

Training hours per person / hours

Mitsui Chemicals, Inc.*

15

34

27

Training cost per person / million yen

0.29

0.27

0.20

Evaluation

Scope

2016

2017

2018

2019

Conducting rate of feedback meetings in the previous fiscal year / %

Mitsui Chemicals Labor Union registered members

96

98

98

94

Degree of satisfaction over evaluation feedback / %

89

90

86

91

Safety and Prevention

Occupational Health

Scope

2017

2018

2019

Average rate of lifestyle-related disease (male) / %

Mitsui Chemicals, Inc.*

9.6

9.7

10.2

Frequency of absences from work due to health disorders

Mitsui Chemicals, Inc.*

0.60

0.78

0.87

Frequency of absences from work due to mental health disorders

Mitsui Chemicals, Inc.*

0.34

0.45

0.56

Ratio of smokers / %

Mitsui Chemicals, Inc.*

25.7

24.2

23.7

Harmful substance risk assessment implementation rate / %

Mitsui Chemicals, Inc.

100

100

100

Product Stewardship

Scope

2017

2018

2019

Product risk assessment implementation rate / %

Mitsui Chemicals, Inc.

36

100

100

Provision ratio of the latest safety information for all products / %

Mitsui Chemicals, Inc.

100

100

100

Number of legal and regulatory violations

Mitsui Chemicals, Inc.

0

0

0

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Mitsui Chemicals Inc. published this content on 03 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2021 15:33:12 UTC.