Sustainability Management

Basic Sustainability Policy

1. The Basic Sustainability Policy is as follows

The JSP Group, with its corporate philosophy of "Creatively and Actively Contribute to Society”, aims to continuously enhance its corporate value with a strong awareness of its corporate responsibility in the elements of environment, society and corporate governance.

2. JSP will make the Basic Sustainability Policy known to all employees.

3. JSP complies with all relevant laws, regulations, and standards, and implements sustainability promotion management in a systematic, organized, and sustainable manner.

Approach and Activities on Sustainability

In medium-term business plan "Change for Growth" (from 64th to 66th term), the JSP Group announced basic concept of gaining the understanding, trust and sympathy of stakeholders as a global company for global society by broadening the value we provide for both economic value and social value to our customers and for addressing social issue, through sustainability management. Based on corporate philosophy of “Creatively and Actively Contribute to Society”, the JSP Group is working to further enhance our corporate value by incorporating environmental, social and corporate governance factors into its various management activities, thereby reducing risks and capturing profit opportunities, and increasing the sustainability of our business model.

Materiality Relationship Chart

The relationship between JSP's Corporate Philosophy, Basic Sustainability Policy, Long-Term Vision, Mid-Term Management Plan and Materiality is shown in the diagram below.

Materiality Selection Process

Phase 1: Identification of Issues and Materiality Assessment

The JSP Group identifies a wide range of social issues, referring to international guidelines such as GRI standards, the 17 goals of the SDGs and trends at other companies and then evaluates the level of importance from two perspectives: the importance from JSP Group’s perspective and the importance from the stakeholders’ perspective.

Phase 2: Deliberations by the Executive Officers Meeting

The Executive Officers Meeting deliberates on issues of high importance and in the process selects materiality candidates, incorporating the basic concepts of the Midterm Management Plan "Change for Growth" and product perspectives.

Phase 3: Resolution by management

Governance and Risk Management

The JSP Group is working to achieve sustainability through a company-wide sustainability promotion system. The Board of Directors, chaired by the President, oversees sustainability-related risks and opportunities in management activities and plays a governance role. The Executive Officers Meeting is responsible for managing sustainability-related risks and opportunities in management activities, carrying out reviews and making decisions on responses. The Sustainability Promotion Committee, an advisory body to the Executive Officers Meeting, works with the Risk and Compliance Committee, business units and the corporate divisions to identify and assess sustainability risks and opportunities that have a significant impact on management activities, and to consider policies and measures to be taken by the JSP Group, reporting the results to the Executive Officers Meeting and the Board of Directors.

Sustainability Promotion Structure

Activities for Materiality: The creation of shared value

The creation of shared value (CSV): Materiality concerning the contribution through businesses operations and products

Materiality	Main Activities	SDGs
(1) Contribution of environmentally friendly products	JSP's foaming technologies will expand the value provided from economic value to social value to solve customers’ and social issues.
(2) Contribution to plastic resource recycling
(3) Contribution to climate change mitigation
(4) Contribution to food and healthy living
(5) Contribution to safety

Activities for Materiality: Environment, Society, and Corporate Governance (ESG)

Materiality concerning the environment (E)

Materiality	Main Activities	SDGs
(1) Global environmental conservation	Global environmental conservation through Responsible Care (RC) activities.

Materiality concerning society (S)

Materiality	Main Activities	SDGs
(1) Improve human resources development	Promote human resource development by enhancing the capabilities of all employees.
(2) Foster a corporate culture of job satisfaction	Creating a work environment where employees with diverse values respect each other and can play an active role.
(3) Occupational safety	Ensure the health and safety of employees and local residents by striving to achieve zero accidents and zero injuries in our business activities.
(4) Development of an information system structure.	Promote operational efficiency through the use of digital technology.

Materiality concerning corporate governance

Materiality	Main Activities	SDGs
(1) Strengthen corporate governance	Strengthening Group-wide corporate governance through compliance, internal control and risk management initiatives

Indicators and Targets

Among materiality, indicators and targets for “Global environmental conservation” can be found here. Indicators and targets for “Improve human resources development”, “Foster a corporate culture of job satisfaction” and “Occupational safety” can be found here.