Introduction of SEKISUI CHEMICAL Group's Environment-Contributing Products.

There's another good reasonfor choosing SEKISUI products.

Website introducing the Environment-Contributing Products and SDGs.

SDGs proposed in the United Nationsfor the sustainable development of the world.We are companions who are chasingthe dreams this world envisions.

In 2015, the world shared 17 issuesto be solved for our planet Earth.

Environment-Contributing Products

While protecting our lives and the earth, we also work to solve the various problems and create a rich and wonderful future. SDGs, proposed by the United Nations for this purpose in 2015, clarified the issues that the world should unite to address, including climate change, resource depletion, ecological deterioration, and such. Contribution to the natural and social environments through SEKISUI CHEMICALGroup's products and services also meets this SDGs' goal.

In addition to environmental consciousness as well as cooperation with the society, there is a need to respond in line with the society, giving greater consideration to everything in the product life cycle and encourages suppliers of raw materials to reduce greenhouse gas emissions, and also start to make an effort in involving the supply chain as well. We will continue to work on resolving the issues of SDGs with our stakeholders, including our business partners, through corporate activities centered on Environment-Contributing Products.

Expanding corporate engagement responsibilities is vital to solve the problems.

Contact Information

E-mail：esg@sekisui.com

ESG Management Department

©UN Photo/Cia Pak

EduTown SDGs

I N D E X

The corporate activities that we are engaged in contributes to the nature and society are solutions for SDGs (SDGs) advocated by the United Nations as the 17 tasks to be achieved for the sustainable development of the world. SEKISUI CHEMICAL Group will continue to actively promote activities as a member of this world.

Since 2018, in collaboration with Tokyo Shoseki Co. Ltd., we established the "EduTown SDGs" website where children from high grade levels in elementary school to junior high school students can learn about SDGs.Through the distribution of electronic teaching materials, we started SDGs educational activities for the next generation.

Global Children's Eco Summit 2017

New York UN headquarters displaying SDGS icon

Mangrove plantation in Thailand

"SEKISUI Environment Week"Cleanup activities around the Tokyo headquarters

2020.02

Further Contribution 1: Customers' business activities P9-10Further Contribution 2: Visible and invisible products in our daily lives P11-12Activity cycle that produces reliable results / PDCA P13Future born from SEKISUI P14

Product manufacturing that can be chosen from the earth's future P1Concept of Environment-Contributing Products P2Product Case / Housing Company P3-4Product Case / Urban Infrastructure & Environmental Products Company P5-6Product Case / High Performance Plastics Company P7-8

SEKISUI CHEMICAL CO., LTD

1. No Poverty2. Zero Hunger3. Good Health and Well-Being4. Quality Education5. Gender Equality6. Clean Water and Sanitation7. Affordable and Clean Energy8. Decent Work and Economic Growth9. Industry, Innovation, and Infrastructure

10. Reduced Inequalities11. Sustainable Cities and Communities12. Responsible Consumption and Production13. Climate Action14. Life Below Water15. Life on Land16. Peace, Justice and Strong Institutions17. Partnerships for the Goals

Did you know that SEKISUI CHEMICAL Group's products are produced with the future of our planet in mind?

Environment-Contributing Products is the system created from the idea that one can contribute to the environment and the society by using the products.

When choosing which products to buy, performance and functionality are often at the front of customers minds. But theirs is something else to consider. How was the product produced? What resources did it consume? And what impact will your purchase have on the environment and society? At SEKISUI we believe that preserving the environment and contributing to society form the very foundation of our corporate management. So we strive to deliver products that are beneficial to our customers, and for the future of our planet. This is the vision of SEKISUI CHEMICAL Group.

When manufacturers think about contribution to the environment and society, the biggest common theme is contribution through its products. Since September 2006, Sekisui Chemical Group has implemented the "Environment-Contributing Products System", which registers the product based on internal standards. Not only being considerate during the production, but also contribute to the sustainable development of the environment and society while using the products. This is the basic concept of the system. Through this approach, we believe that we will be a part of the major movement to change the natural and the social environment.

SEKISUI CHEMICAL's sustainable management has received some of the world's top accolades. Chosen by the World Economic Forum (WEF) as one of the "100 Most Sustainable Corporations" from approximately 7,400 corporations at the 2020 Global 100 Index, Sekisui Chemical's efforts and achievements are highly recognized by the evaluating agencies of each country.

By using our products, customers can contribute to the environment and society in all walks of life. Such as, reducing green house gas emissions with solar panel houses, utilizing resources effectively by reducing waste, etc.

What SEKISUI can contribute What Customers can contributeAs a responsible producer, Sekisui Chemical Group is conscientiously considerate of the environmental impact, starting within the company itself. Starting from procurement of raw materials, product development, to factory production. We are developing a green business that reduces environmental impact in all phases of the production process.

❶ Procuring raw materialsChoosing trusted partners

❹ DistributionDeliver to customers with consideration of environmental impact in mind

❷ Product DevelopmentPlanning and Development of Environment-Contributing Products

❸ ProductionReduce amount of waste, effective utilization of resources

Contribute to the health of people using these products

Reduce the impact on the environment by reducing energy consumption and waste

Utilizing renewable energyto create and store energy

Consume less resourcesto support livelihoods and businesses

Contribution through production process by SEKISUI

Contribution through customers utilization

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As of Feburuary 2020

CASE

Naoki OnishiKusatsu HEIM Exhibition HallShiga Sales HeadquartersSEKISUI HEIM KINKI CO., LTD.

"A year ago, I started living in a SMART HEIM home with my family. At the end of the year, while looking to buy Christmas illuminations, my wife said to me "why don't you look for ones that are solar powered?". Since starting to live in SMART HEIM, my family has become more aware of environmental impact."

"When the typhoon came, only our house still has electricity!" It is now the era where SMART HEIM can be chosen as a home that protects the family.

INTERVIEW

Simply saying that the home will not collapse during a disaster is not enough to save your family's lives. In recent years, earthquakes have displayed a different tendency from tremors before. That is, death toll directly caused by earthquakes has been less than the number of victims that pass away after living at evacuation shelters due to poor physical condition caused by stress. Housing must be the shelter that protects the family's life to the end. In the event of a disaster such as a typhoon, I hear from customers living in HEIM tell me that "When we returned home, only our house had electricity, I was so delighted." Solar power and storage batteries are no longer limited to environmental consideration and economy, but also serves to protect families from disas-ters. As the industry leader in this field, I believe that SEKISUI HEIM has a very important role to play.

Living in a SMART HEIM help raises environmental awareness. Practically no one selects SMART HEIM to protect the environment. However, customer's awareness begins to change once they start living in the house. SMART HEIM uses HEMS*2 to display daily electricity bills and other information, so you will be able to enjoy an environmen-tally friendly lifestyle. Hopefully the comfortable, eco-nomical, and environmentally friendly lifestyle born from SMART HEIM will spread to the world. I would like to spread the joyful experience of customers living in SMART HEIM with many more people.

*1：According to in-house research *2：HEMS is the abbreviation for Home Energy Management System

SEKISUI HEIM began selling solar power houses in 1997, ahead of the industry. That year was also the signing of the Kyoto Protocol, where devevloped nations agreed to reduce their greenhouse emissions by 5% (com-pared to the levels of 1990) as a whole. Since then, SEKISUI HEIM has been leading the industry in bringing "Energy Self-Sufficient house" to the mainstream.

Not only to create and store electricity, but a system that optimizes energy consumption.In 2011, we visualized the energy consumption in the house, and launched "SMART HEIM" equipped computers with "HEMS*2", which analyzes customer's lifestyle.Since then, we have continued to make great strides in the industry.

Three technologies back up people's lives from economic standpoint and disaster preparedness standpoint. In order to make the house an "Energy Self-Suffi-cient house" it must excel in "creating", "storing" and "using" energy. "SMART HEIM" is equiped with 3 main functions: "Large capacity solar" will generate more electricity than the same sized site area with a flat roof through Heim's unique roof design. "E-Pocket" electric storage system that keeps electricity flowing not only during the day, but also during the night as well as in case of emergencies; and "SMART HEIM - Navi" which provides consulta-tion by making effective energy saving and energy saving points visible to reflect domestic energy consumption. By using the advancement of SEKISUI

HEIM's creating, storing, and using energy system, we bring to reality a smart energy life. Furthermore, not only the merits in terms of economic but also supplyinig the necessary power even during disasters such as earthquakes and typhoons, providing a safety net for family lives. SEKISUI HEIM will deliver the complete comfortability and securi-ty that sunlight brings.

20182017201620152014201320122011

742

230360

99 144

855

37190

（ten-thousand households）

Changes in the number of domestic blackouts (according to data published by Cabinet Office, Government of Japan)

In 2018, more blackout occurred than any of the past 8 years. If there is a storage battery, you can eliminate the anxiety from power failure.

For visiting customers, I always introduce the film type lithium ion batteries developed by SEKISUI CHEMICAL Group.

Did you know that SEKISUI HEIM is No. 1 in the number of solar (photovoltaic) houses constructed? Approximately 180,000 houses in total. Many families are experiencing a different future lifestyle courtesy of SEKISUI HEIM. "Creating" electricity with solar power. "Storing" energy with battery storage. "Using" self-supplied electricity even during emergencies. This type of "Smart House" should become the housing standard in the future. The age of "energy self-sufficiency" where economic lives are powered by "0 yen" energy that was created at home for "0 yen". The SEKISUI CHEMICAL Group is trying to make common sense of such homes a reality sooner than anyone else.

3 4

1

Development background

Features of SMART HEIM

Housing Company / Energy Self-Sufficient house "SMART HEIM"

No.1 in construction of Solar housing.*1 Comfortability and security that sunlight brings. "SMART HEIM" - Energy Self-Sufficient house.

CASE

Piping installed that bent greatly

Do you know how many countries where tap water is drinkable? Including Japan there are only 9 countries*. Even within this list, the water supply system in Japan is known to be the top or second best amongst developed countries for water quality and low leakage rate. However, in Japan, there are many damage from disasters such as earthquakes, and in regions where sufficient earthquake resistance has not been made, replacement for water pipe that is strong enough against earthquakes is required.

Water pipes that can withstand large deformation during earthquakes are stronger and softer. The durability and earthquake resistance of metal pipes (cast iron pipes), which have been widely used in Japanese water supply systems, have been improved over the years, but the biggest challenge of "rusting" still remains. To overcome this weakness, polyethylene water pipe which is resistant to earthquakes, with a lifetime of more than 100 years is the solution.

EsloHyper is a resin water pipe with excellent flexibility and strong connecting joint. When an earthquake occurs, due to the shaking of the ground, the piping is subjected to a heavy load in the axial direction. In addition, even if a fault occurs due to a geometric movement, pipes will be largely deformed, therefore, connecting points between the pipes risk water leakage. In 1995, SEKISUI CHEMICAL released Japan's first polyethylene water pipe "EsloHyper" which solved the problem. EsloHyper has flexibility in the material itself, stretching to five times its length, and it never breaks. In addition, since the joint portion be-tween the pipes is firmly bonded by fusion due to

heating, it has a strong resistence to deformation. The picture is one of the demonstrations carried out by a caravan that travels throughout the country. At the time of sale, these polyethylene water pipes were well received as it did not leak even if the groups were uneven.

Urban Infrastructure and Environmental Products Company /High Performance Polyethylene Tube "EsloHyper"

Gentaro NishikawaResearch Institute Product Development CenterGeneral InstituteUrban Infrastructure & Environmental Products Company SEKISUI CHEMICAL CO., LTD.

"I did not think that I'd be this happy to see water coming out!"Hearing such words in a disaster area made me realize the importance of this work.

*According to the "Current situation of water resources in Japan" (2018 edition) published by Ministry of Land, Infrastructure, Transport and Tourism.

The bendable polyethylene pipes protected the water supply of the affected area from the earthquake. High performance polyethylene pipe "EsloHyper"

"When I was a student, I was studying environmental issues, but while focusing on researching the water quality of Lake Biwa, I was also thinking that I would someday contribute in the field as well."

In my second year at the company, I was sent to a disaster area of the Tohoku earthquake and tsunami to set up water pipes. I headed to the town of Unosumai in Kamaishi City, Iwate Prefecture to provide assistance. At the local waterworks bureau, it was decided that polyethylene pipes would be installed because it is light and easy to put in, and it can be installed reasonably along the curves of the prefectur-al roads, but the local contractors did not have enough manpower. Therefore, SEKISUI CHEMICAL offered its assistance according to the request. The happiness and joy the locals expressed at the time still resonates deeply within me. At that moment, I became aware of the impact my work has on supporting people's lives.

Japan's water supply penetration rate is 97.9%. *1 However, urgent measures needs to be taken against aging of iron pipes. Nationally, there are about 650,000 km*2 of waterpipes. Currently, most are iron pipes. Considering that occur-rence of natural disasters has been on the rise in recent years, improvement of earthquake resistance is urgently required, however, construction has not proceed as expected. Polyethylene pipe is the most suitable to raise the earthquake resistance rate with a smaller budget and within a short construction period. Therefore, we are trying to break the manufacturer's barriers in the cross-sectional organization called the Polyethylene Pipe System Association for water distribution. I hope to continue to contribute to the future improvement of the infrastructures in Japan, such as earthquake resistance water pipes.

*1: According to the Basic Statistics of the Ministry of Health, Labor and Welfare's "Water Trends in Water Supply Rates" *2: According to Japan Water Works Association's "Water Supply by the Number" (2017.8.30)

5 6

Demonstration that even in the event of large land deformation, water would not be cut off.

Difference in level caused by geometric faults

Background of development

Features of EsloHyper

INTERVIEW2

Hanshin-Awaji Earthquake, Niigata Prefecture Chuetsu Earthquake, Tohoku Earthquake and Tsunami, Kumamoto Earthquake ... In recent years, due to earthquakes striking Japan one after another, the disaster areas have suffered severe damage. Within that, damage to the water pipes had a severe impact on people's lives after the disaster. However, there are products that keeps supplying water without being damaged at all, even in the event of numerous earthquake disasters. That is SEKISUI CHEMICAL Group's high performance polyethylene pipe "EsloHyper".

CASE High Performance Plastics Company / Thermally expandable refractory material "Fi-Block"

*Data by Fire and Disaster Management Agency data, 2017FY: Total number of fires incidents was 39,373, the total number of deaths due to fire was 1,456, and the number of injured people was 6,052. Cost of fire damage was 89.32267 billion yen.

Background of Development

8

Features of Fi-Block

In recent years, there are about 40,000 fire accidents per year in Japan, close to 1,500 people lose their lives.* Therefore, a number of companies have been developing refractory materials. The most important thing when a fire happens is to evacuate to a safe place. And to delay the speed of fire by blocking the path of fire, will ensure the time to escape. "Fi-Block" is Japan's first organic refractory material produced for that purpose.

Tomoyuki IshiguroFire Protection Materials Sales OfficeFire Protection Materials DivisionHigh Performance Plastics CompanySEKISUI CHEMICAL CO.,LTD

I live near the sea, and when I go out, I often pick up garbage from the coast as a volunteer. Indeed it is a modest environmental contribution（haha）」　

"Huh, only applying it to one side?!" Shook up the industry - Fi-Block Fi-Block is often used as a compartment penetration treating material for constructing piping space that penetrats the wall, but because unlike conventional fire-resistant materials, it is not necessary to install it on both sides of the wall as one side can sufficiently perform to its ability, it is also a major feature that allows you to drastically cut down on the construction time. However, at the time of sale, it was not easy to convince people in the industry of the question "is that really enough?" It was that big of a breakthrough product.

"When discussing about the section penetrating treatment member, Fi-Block" is considered as the standard. Nowadays, many Fi-Blocks are used in fire prevention area, potential fire prevention area, and the product has become synonymous with the term compartment penetration treatment member. Even during construc-tion inspections performed by the fire department, often the workers at the site will hear "If you use Fi-Blocks you are fine." With regards to dealing with products that contribute to the social and the natural environment. In addition to providing the role of direct disaster pre-vention, I am involved in sales promotion specifications of resin sashes, which has higher thermal insulation than aluminum sashes. Through our daily activities, I believe that SEKISUI CHEMICAL Group will be recognized for contributing to the betterment of both the societal and natural environment through spreading the use of resin sash, which will increase the heating and cooling effi-ciency of the building, and reduce CO₂ emissions.

INTERVIEW

It is said that "in the event of a fire, you must close the windows." Why is that?When a fire occurs in the room, the flame grows by taking in oxygen from the opened windows and doors, and expands to the outdoor, causing the fire to spread to the upper floors and adjacent buildings. It is important to eliminate the existence of such "fire loopholes" in order to stop even just a little bit more damage caused by fire.

Measures are also required to deal with fires spreading through indoor piping. Besides windows, these "loopholes" of flames are penetrating through parts provided in the walls and floors for air conditioning, water supply and drain-age, and indoor wiring. If fire protection measures are not applied to these parts, the flammable piping material becomes the path of fire and the fire spreads throughout the building.

Fi-Block is a fire-resistant material that, when heated, expands and blocks 'loopholes of the flame'.Fire-resistant material that does not burn off even if it is heated at high temperature is necessary to close the openings of the window and the loop-holes of the penetrating flame. However, conven-tional fire-resistant materials are mostly non-or-ganic substances such as concrete and gypsum, they are hard and difficult to be shaped, not only requiring time and labor to construct, but also deforms due to high heat, therefore, sufficient fire resistance can not be obtained. As a result, SEKISUI CHEMICAL developed a new fire-resistant material that expands when a fire occurs and forms a heat insulating layer. Even if the frame of the window deforms due to high heat or the piping material is burned down, it expands quickly and closes the gap firmly, pre-venting the fire from spreading out to another

3

Help people to escape the fire by shutting out the flames. Thermally expandable fire-resistant material "Fi-Block"

It expands at the time of fire, closing the penetrating loopholes and prevents the fire from spreading.

For example, a 2 mm thick sheet expands (10 times) to 20 mm thick.

The high evaluation and trust from the fire department comes with the weight of the responsibility this product has to the society.

room or outdoors for a certain period of time. Furthermore, the construction only requires pasting a sheet-like Fi-Block. Not troublesome work at all, anyone can perform the construction without mistakes.

Usually

Fi-Block in sheet form・・ Expands rapidly when heated・・ Close the gaps

When fire occurs

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Fi-Block

Pipe

wall

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7

High-quality, transparent, flexible container capable of γ-ray sterilization treatment. Maintaining aseptic condition, ideal for pharmaceuticals and food bulk.

Hot melt adhesive packaged in a non-adhesive film used for sanitary materials such as paper diapers. Packaging bags can be put into tanks, not disposed as waste.

A system that makes a contract to buy back the end material from customers who purchased the product and recycles the end materials.

Due to the dual tank system, renewal work can be performed for each tank, without the stoppage of water as replacement work for the receiving tank is being performed.

Very low thermal resistance realized by thinning the layer. Easy to handle, easy to dispense and apply to substrates.

Automobile heat dissipation grease

Medical liquid transport container "Steritainer"

Hot melt adhesive "Zero-Pack"

Tank maintenance renewal/FDNS method

ABS recycling system"ALLEN" grade

Communication Cable Box "CC-BOX"Collective piping method to house power and communi-cation cables in the space under the road. Reduce cable damage and damage to the surrounding environment in the event of a disaster.

Used for preventive maintenance, repair of concrete structures and steel structures, longevity of infrastructure facilities such as railways and roads.

Lightweight corrosion-resis-tant structural material made of resin that has sufficient strength as a structural material, making it light weight like wood, with water resistance and durability.

Construction method which can renew the old sewer pipe without excavating the road by applying it inside the existing pipe.

Synthetic wood "Eslon Neo Lumber FFU"

Pipeline rehabilitation method "SPR Method"

Fire-resistant material "Fi-Block"

Energy Self-Sufficient House "SMART HEIM"

A new type of fire resisting / fireproof material that expands due to heat and forms a heat insulating layer when a fire occurs.

Energy-efficient houses with solar power generation and storage batteries, HEMS equipped with energy-sav-ing houses that enabled visualization of energy usage.

・Fire-resistant material "Fi-Block"

・Synthetic wood "Eslon Neo Lumber FFU"

・Communication Cable Box "CC-BOX"

・Pipeline rehabilitation method "SPR Method"・Rainwater storage system "Cross-Wave"・Hard polyvinyl chloride pipe "Eslon summer pipe"・Soundproof rail cover

Construction/Disposal

Maintenance

Use

Designing

Shipping/Sales

Collection/Recycling

Shipping/Sales

Material Procurement

Use/Maintenance

Construction

Designing

Collection/Recycling

Use/Maintenance

Production

Shipping/Sales

Material Procurement

Designing

・Energy Self-Sufficient House "SMART HEIM"・Solar power generation, storage battery, HEMS Installation renovation・High weatherproof gutter・Ceiling Air Conditioning Panel・High performance polyethylene pipe for air conditioning piping "Kuu Chow Hyper CH"・Resin made tatami "Migusa"・Large capacity film type Lithium ion battery

・Fire-resistant material "Fi-Block"・Heat screen material "Heat cooling net"・Heat screen door kit "Smart cooling window"

・Tank maintenance renewal /FDNS method・Pipe/duct insulation "THERMOBREAK"・For outdoor fire hydrant installation High performance polyethylene pipe "EsloHyper PE"・Polyethylene pipe for industrial water /chemical liquid pipe "Eslon plant hyper BK"・Heat exchange coating "Sekisui Protect Court (SP)"

・Hot melt adhesive "Zero-Pack"・AP/E atmospheric pressure plasma etching machine・Medical PP sheet, medical PE sheet・Protective tape for diffusion films

・Automotive heat dissipation grease・LCD materials: 3800 Series double-faced tape for fixing of LCD components

Product names with contribute to the natural environment, and those with contribute to the social environment.

Infrastructure renovation business "Infrastructure guard" series

・Medical liquid transport container "Steritainer"・"Rontainer" for inspection reagents

●Use/Maintenance ●Construction ●Designing

●Maintenance ●Usage ●Shipping/Sales

●Usage ●Shipping/Sales

●Construction/Disposal ●Designing

●Designing

●Production●Shipping/Sales

Housing/Building Construction

Infrastructure Construction Manufacturing

at Factories

●Collection/Recycling

・Synthetic wood "Eslon Neo Lumber FFU"・Reflector built-in sound absorbing panel・Soundproof rail cover

・ABS recycling system "ALLEN" grade・3-layer containers made from recycled materials "Green Label"・Plastic winding core (ABS)・Plastic winding core (PP)・Lawn protection grids "SHIBA-OMOI", Edging materials "FUCHI-OMOI"・Container for waste/recycling sorting "Clear Eco Duster"・Rainwater storage system "Cross-Wave"・Artificial lumber "ASHERA Wood"・Recycling containers

Further Contribution 1: Customers' business activitiesFrom product design to production, sales, disposal, recycling. SEKISUI CHEMICAL Group's Environment-Contributing Products are contributing to the natural and the social environment through customers who use our products for business activities in various situations.

Housing/Building Construction

Infrastructure Construction

Manufacturing at Factories

9 10

・Infrastructure renovation business "infrastructure guard" series・High impact PVP "Tough Vilon" (Used for tunnel drain)・Polyethylene pipes and fittings for gas distribution system ・Polyethylene pipes and fittings for sewage

・ Sound and solar interlayer film "S-LEC"

Agriculture

Automobile

Housing

Medical / Nursing care

Infrastructure

Construction

Aviation

Railway

Further Contribution 2: Visible and invisible products in our daily livesIn towns, factories, infrastructures, transportation systems.SEKISUI CHEMICAL Group's Environment-Contributing Products are contributing to the environment and society in various scenes that people see, or even invisible to them.

Interlayer film used for automotive and architectural glasses. Improve sound /heat insulation, reduce weight of material by thinning glass, improve efficiency of air conditioner.

The goal to create a new sunscreen by combining units of a three-dimensional shape conforming to the structure of trees composed of many leaves. Temperature increase is small, providing shade like trees.

Soundproof rail cover that smooths the uneven surface of railway rail and suppresses noise during operations. Contribute to saving resources by reducing the weight of our own vibration damping technology and structure.

Multilayered reinforced plastic tube made of glass fiber, unsaturated polyester resin and silica sand. It exerts excellent hydrity, durability, light weight and contributes to reduction of total cost.

Tatami mats made of durable polypropyl-ene and natural inorganic materials. Maintaining a natural texture, it lasts longer than tatami using natural rush grass and contributes to effective utilization of resources.

In paddy fields and such., a system that performs water supply, drainage and water level adjustment through natural pressure. Easily manage water supply/drainage, reducing wasteful use of water. Because of natural pressure pipeline, a power source is unnecessary.

Recyclable molded part which satisfy strict safety standards and design properties of the aircraft industry, such as flame retardancy and impact resistance. It is used for seat sheets, tray tables, and such., which contributes to fuel reduction through reduced weight.

Business development for various clinical examination drugs such as diabetes and infectious diseases, vacuum blood collection tubes made of resin, analyzer and others. Early detection of illness contribute to a longer healthy life through prevention of severity and expansion of infection.

・Rainwater storage system "Cross-Wave"・Artificial lumber "ASHERA Wood"・Lawn protection grids "SHIBA-OMOI"

・Nursing care / Independence support facility "wells"・Disaster-prevention type of elderly housing "Harvestment"・Automatic coagulation analyzer Coapresta series "CP 3000"・"Steritainer" for Medical liquid transport container

・Temporary plastic road material "Pla-Road"

・Rain gutter / rain water storage tank for Europe・SMART HEIM City, SMART HEIM Town・Large capacity film type lithium ion battery・Heat shield screen material "Heat shield cool net"・Heat screen door kit "smart window cool"・Thermally insulated bathtubs "Thermotect Bath"・Water-saving bathtubs

・Foam for automobile flooring materials "Alveosoft"・Automobile heat dissipation grease

・Pipeline rehabilitation method "SPR Method"・Polyethylene pipes and fittings for gas distribution system ・Polyethylene pipes and fittings for sewage

・Synthetic wood "Eslon Neo Lumber FFU"・Thermoforming sheet for railway interior "KYDEX Railway Grade"

Electronics field

Thin foam double-sided tape with high impact absorption performance. Adopted as a liquid crystal display for mobile phones, prevents damage due to dropping, contributing to improvement of water-proofness.

・LCD materials: gap-control microparticles "MICROPEARL SP, GS" ・Ceramic binder for MLCC (multilayer ceramic capacitor)・LED materials: white-type resist

11 12

Release liner

AcrylicAdhesive

Ultra thin PEForm

Product names with contribute to the natural environment, and those with contribute to the social environment.

・Diagnostics Business

・Fractal sunshade materials "Airyshade"

・LCD materials: 5200 Series functional foam tape

・Thermoforming sheet for aircraft interior "KYDEX aircraft grade" ・Non-pressurized pipeline system "Kopf’s System"

・Resin made tatami "Migusa"

・Reinforced plastic composite pipe "RCP"

・Soundproof rail cover

Supporting the development of town through Environment-Contributing Products to produce lifestyle of the future.

The natural capital return rate to 100% in 2030!What should we do to increase the sustainability of earth. The plan begins with drawing a clear plan. We set the goal of 100% return rate of natural capital at SEKISUI CHEMICAL Group by 2030 and have already started the process.

Develop activities involving even business partners. Analysis shows that the company's contribution through products is the largest. Furthermore, it is crucial to mention the importance of activities to reduce environmental impact in collaboration with customers and business partners. Our commitment to Environment-Contributing Products is based on the result of this analysis.

Plan

Do Check

Action

Event cycle Future born out of SEKISUI

Contribution products 83.2%

UpstreamSupply chain

productionprocess

Downstreamsupplychain

SEKISUI CHEMICAL Group's long-term environmental vision

The concept of town planning is "Safe & Sound". Safe and secured for people living there and also friendly to the environment.In this town, various designs that reduces damage caused by earthquakes and disasters, support healthy and comfortable living conditions, and even if important lifelines such as electricity and water stops, a system that guarantees the safety of living is provided to reach all walks of life. In the town, we are planning the construc-tion of about 130 houses of detached houses by SEKISUI HEIM, commercial facilities, multi-family houses, etc. Construction work has already started. It is scheduled to be completed in 2020.

In order to realize the ideals of the future town, we are considering to adopt a number of Environment-Contributing Products. Many Environment-Contributing Products are planned to be used for housings equipped with solar power genera-tion system, rainwater storage material, high earthquake resistance piping facility and such, for the purpose of environmental friendliness and safety living in this town. By using more Enviornment-Contributing Products that benefits the environment, the town will continue to be safe, comfortable and environmentally friendly. Please stay tuned for SEKISUI CHEMICAL Group's unique town planning.

Achieved a return rate* of 84.1% natural capital in FY 2017. Working while checking achievement progress of the vision.

Evaluate "visualization" of the return rate of natural capitalDeveloped "SEKISUI Environmental Sustainability Index" to analyze the return rate of natural capital.We calculated the environmental impact over the life cycle of the product, its impact on climate change due to greenhouse gases, resource deple-tion, ecosystem degradation, social assets, etc.

Examples of SEKISUI CHEMICAL Group's Environment-Contributing Products that are being considered for adoption

"SEKISUI Safe & Sound Project" image illustration

With the focus of the world, SEKISUI CHEMICAL’s Innovative Resource Recycling System now produces chemical products from garbage!About 60 million tons of combustible garbage is discharged in Japan annually. The SEKISUI CHEMICAL Group developed the world's first technology to recycle it by using it as a raw material. With this technology, combustible garbage is converted into gas and made into a single raw material, ethanol is produced by microorganisms that eats gas. With world’s attention as the ultimate resource recycling system, it turns any burnable garbage into reusable raw material, not relying on fossil resources. At the SEKISUI CHEMICAL Group, we are actively working to bring a practical plant into reality in the fiscal year of 2019. Please stay tune.

TOPIC

Efforts to reduce greenhouse gas (GHG)

Customers

Encouraging the use of materials that have low impacts in environment and sharing the information.

Promote the spread of Environment-Contributing Products such as ZEH (net zero energy housing).

Inspection of heat leak condition of equipment at production site

Raw material producers

Pilot plant demonstrating the "technology to transform garbage into ethanol"

Ethanol and fermentation liquid during the process of production Conservation of the natural

environment 0.6%Impact reduction

0.4%

Corporate activities are based upon using nature as its capital. Therefore we adopted our own evaluation method named "SEKISUI Environmental Sustainability Index" in order to replenish such environmental impacts caused by activities through the use of natural capitals. We are confirming our committment to "Earth with Maintained Biodiversity (sustainable earth)" aiming to realize this goal in 2030, as demonstrated by empirical data. *Based on the "LIME2" method established by professor Itsubo and team of Tokyo City University, which shows the percentage of impact on the environment that is replenished if the impact on the environment is set at 100. SEKISUI CHEMICAL Group increased by 7.7 points from the previous fiscal year.

Town developments that SEKISUI CHEMICAL Group envisioned to contribute to the development of products which contribute to the environment. Now, that plan is advancing towards a reality. We discussed the utilization of factory site in Asaka City, Saitama Prefecture with the local administration, and decided to build a sustainable town that realizes the solution of environmental and social issues by combining the comprehensive strengths of the SEKISUI CHEMICAL Group here.

Raw materials50.9%

Production20.5%

Use of natural capital

Return of natural capital

Usage/disposal of products

28.6%

Return rate84.1%

❶Energy Self-Sufficient house "SMART HEIM" ❷Large capacity film type lithium ion battery ❸High resistence to weather and high rain drainage "Super core LEVOL" ❹Quake-resistant water supply pipe "EsloHyper" ❺Fire-resistant material "Fi-Block" ❻Cooling tile "Water retention CREGARE" ❼For detached houses Drinking water storage system❽For disaster Manhole toilet ❾Rainwater storage system "Cross-Wave" 10Communication Cable Box "CC-BOX" 11Resin made tatami "Migusa" 12Fractal sunshade materials "Airyshade"

❶ ❷ ❸ ❹ ❺ ❻

❼ ❽ ❾ 10 11 12

Focusing on three activities, Sekisui Chemical Group is currently promoting:"Expand and create Environment-Contributing Products", "Reduce environmental impacts (reduction of greenhouse gas emissions)", and "Conserve the natural environment." Focusing on these three activities and develop company-wide activities involving divisions such as R&D and sales.

13 14

Introduction of SEKISUI CHEMICAL Group's Environment-Contributing Products.

There's another good reasonfor choosing SEKISUI products.

Website introducing the Environment-Contributing Products and SDGs.

SDGs proposed in the United Nationsfor the sustainable development of the world.We are companions who are chasingthe dreams this world envisions.

In 2015, the world shared 17 issuesto be solved for our planet Earth.

Environment-Contributing Products

While protecting our lives and the earth, we also work to solve the various problems and create a rich and wonderful future. SDGs, proposed by the United Nations for this purpose in 2015, clarified the issues that the world should unite to address, including climate change, resource depletion, ecological deterioration, and such. Contribution to the natural and social environments through SEKISUI CHEMICALGroup's products and services also meets this SDGs' goal.

In addition to environmental consciousness as well as cooperation with the society, there is a need to respond in line with the society, giving greater consideration to everything in the product life cycle and encourages suppliers of raw materials to reduce greenhouse gas emissions, and also start to make an effort in involving the supply chain as well. We will continue to work on resolving the issues of SDGs with our stakeholders, including our business partners, through corporate activities centered on Environment-Contributing Products.

Expanding corporate engagement responsibilities is vital to solve the problems.

Contact Information

E-mail：esg@sekisui.com

ESG Management Department

©UN Photo/Cia Pak

EduTown SDGs

I N D E X

The corporate activities that we are engaged in contributes to the nature and society are solutions for SDGs (SDGs) advocated by the United Nations as the 17 tasks to be achieved for the sustainable development of the world. SEKISUI CHEMICAL Group will continue to actively promote activities as a member of this world.

Since 2018, in collaboration with Tokyo Shoseki Co. Ltd., we established the "EduTown SDGs" website where children from high grade levels in elementary school to junior high school students can learn about SDGs.Through the distribution of electronic teaching materials, we started SDGs educational activities for the next generation.

Global Children's Eco Summit 2017

New York UN headquarters displaying SDGS icon

Mangrove plantation in Thailand

"SEKISUI Environment Week"Cleanup activities around the Tokyo headquarters

2020.02

Further Contribution 1: Customers' business activities P9-10Further Contribution 2: Visible and invisible products in our daily lives P11-12Activity cycle that produces reliable results / PDCA P13Future born from SEKISUI P14

Product manufacturing that can be chosen from the earth's future P1Concept of Environment-Contributing Products P2Product Case / Housing Company P3-4Product Case / Urban Infrastructure & Environmental Products Company P5-6Product Case / High Performance Plastics Company P7-8

SEKISUI CHEMICAL CO., LTD

1. No Poverty2. Zero Hunger3. Good Health and Well-Being4. Quality Education5. Gender Equality6. Clean Water and Sanitation7. Affordable and Clean Energy8. Decent Work and Economic Growth9. Industry, Innovation, and Infrastructure

10. Reduced Inequalities11. Sustainable Cities and Communities12. Responsible Consumption and Production13. Climate Action14. Life Below Water15. Life on Land16. Peace, Justice and Strong Institutions17. Partnerships for the Goals