Our company manufactures and distributes a variety of chemical products such as ionic liquids, pyridine bases, pyrazines and amines.

Sustainability

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Basic Policy on Sustainability

Koei Chemical is committed to the following five goals, guided by our corporate philosophy, to contribute
to the establishment of a sustainable society through business.

1.We are committed to achieving our own sustainable growth by accelerating innovation in all
departments to create both economic value and social value, while also contributing to the
establishment of a sustainable society through business.

2.We are committed to contribute to solving a variety of issues that are globally vital, such as
establishing diverse and inclusive society and achieving the Sustainable Development Goals (SDGs),
as well as doing business in compliance with accepted universal standards and principles, including
those concerning human rights, labor, safety, the environment and anti-corruption.

3.We are committed to work closely with various stakeholders through promoting spontaneous
disclosure of information and open dialogue on the targets of our sustainability promotion initiatives
and the progress of their implementation.

4.We are committed to carry out initiatives toward promoting sustainability, led by our top
management having taken firm pledges to this end and advanced by all officers and employees
across Koei Chemical with a shared strong sense of mission and great enthusiasm.

5.We are committed to assess and improve our activities continually and proactively for promoting
sustainability by reviewing the progress of the activities periodically and from holistic viewpoints.

December 1st, 2021

Human Rights Policy

Koei Chemical has put in place this Human Rights Policy (“Policy”) to demonstrate its commitment to
international standards on human rights. All officers and employees (“Personnel”) of Koei Chemical will
uphold this Policy.

1.Our Position on Human Rights

(1)Compliance with Standards, Laws and Regulations
 We support and respect international standards on human rights, such as the Universal Declaration
of Human Rights and International Labor Organization (ILO) Declaration on Fundamental Principles and
Rights at Work, and promote respect for human rights. We comply with applicable laws and regulations
in countries and regions where we operate, and where local laws and regulations conflict with
international standards, we will seek ways to honor the principles of internationally recognized human
rights.

(2)Respect for Human Rights in Our Business Activities
 We do not discriminate against individuals based on employment status, age, sex, ethnic or social
origin, ancestry, nationality, disability, religion, beliefs, marital status, or any other status. We do not
tolerate any form of harassment, including sexual harassment or workplace bullying. We also respect
fundamental labor rights including freedom of association and the right to collective bargaining, and
prohibit forced labor or child labor.
 We are committed to respecting human rights in our business activities and also strive to avoid
contributing to infringement of human rights. In order to prevent and mitigate human rights risks
related to our business activities, we will take necessary measures, including ensuring compliance with
the Compliance Manual (the Koei Chemical Code of Business Conduct) and other relevant policies and
guidelines. We are also committed to understanding our impact on local communities and aim for
harmonious coexistence with these communities. We expect our business partners, including our
suppliers, and other relevant stakeholders to act in line with the principles in this Policy, and we will
seek ways to work with them to promote respect for human rights.

2.Our Approach to Human Rights Issues

(1)Providing Education and Raising Awareness
 We will provide appropriate education and training to our Personnel so that this Policy is understood
and effectively implemented.
(2)Human Rights Due Diligence
 We will identify adverse human rights impacts, and seek to prevent or mitigate such impacts through
our human rights due diligence framework.
(3)Responding to Identified Human Rights Impacts
 We will engage with relevant stakeholders in order to address actual or potential adverse human rights
impacts.
(4)Remedy
 Where we identify that we have caused or contributed to adverse human rights impacts, we will
endeavor to remediate such impacts through appropriate processes.
(5)Grievance Mechanisms
 In order to address concerns about activities that may adversely impact human rights or any other
concerns raised about our business activities. These channels are available for anyone having
involvement in Koei Chemical’s business activities, including their business partners as well as Koei
Chemical Personnel and their families. We will continuously seek to optimize our grievance mechanisms.
(6)Disclosure
 We will report on our efforts to respect human rights through our website, CSR Report (Koei Chemical
Report), and other relevant channels.

April 1st, 2022

Koei Chemical’s KPIs

We share material issues for sustainable value creation(Table 1) with Sumitomo Chemical Group, and has

established the key performance indicators (KPIs) of our own, shown in the table below(Table 2) to address

each of those material issues.
We promote management and disclosure of the status of sustainability initiatives, as well as promote dialogue

with stakeholders.
We contribute to the realization of a sustainable society through our KPIs initiatives.


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Sumitomo Chemical Group Material Issues for
Sustainable Value Creation

Material Issues for
Social Value Creation

●Contribute to the environment

     
  • Climate change mitigation and
    adaptation
  • Contribute to recycling resources
  • Sustainable use of natural capital

●Contribute to the food supply


  • Advance sustainable agriculture

●Contribute to healthcare

●Contribute to ICT

Material Issues for
Future Value Creation

●Advance innovation

●Bolster competitiveness leveraging DX

●Human resources: DE&I*, growth &
    development, health
 *Diversity, Equity & Inclusion

Foundation for Business Continuation

   ●Occupational safety
    and health, and
    operational safety
    and disaster
    prevention

   ●Product safety and
    quality assurance

   ●Respect for human
    rights

●Cybersecurity

●Compliance

●Anti-corruption

Table1

Koei Chemical’s KPIs

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Material issues KPI
Material Issues for Social
Value Creation
飢餓をゼロに
すべての人に健康と福祉を
エネルギーをみんなにそしてクリーンに
産業と技術革新の基盤をつくろう
気象変動に具体的な対策を

Contribute to the environment
・Climate change mitigation and
 adaptation
・Contribute to recycling resources
・Sustainable use of natural capital

・CO₂ emissions (Scope 1 + 2):
 【Target: 50% reduction 
  compared with 2013】
・Improvement in energy 
 efficiency etc.

Contribute to the food supply
・Advance sustainable agriculture

Sales of raw materials and
intermediates for crop
protection products.

Contribute to healthcare Sales of raw materials and
intermediates for
pharmaceuticals.
Contribute to ICT Sales of electronic materials-
related products.
Material Issues for Future
Value Creation
ジェンダー平等を実現しよう
産業と技術革新の基盤をつくろう
人や国の不平等をなくそう
Advance innovation ・New product sales ratio.
・Cumulative savings from cost  rationalization.
Bolster competitiveness
leveraging DX
Digital literacy assessment.
Human resources: DE&I*,
growth & development, health

*Diversity, Equity & Inclusion
Percentage of female new
graduate hires:
【Target: 20% or more】
Employment rate of persons with disabilities:
【Target: 2.5% or more】

Table 2

Koei Chemical Report

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