The external environment is undergoing rapid changes as described above. Nonetheless, we have a number of highly promising businesses that are expected to drive the NAGASE Group’s growth.

The bio-related business is one that we are most excited about for future business expansion. The three companies, NAGASE & CO., LTD., Nagase ChemteX Corporation, and Hayashibara Co., Ltd. each work on biotechnology research and development at the NAGASE Group. We have consolidated their activities on a single platform and are applying biotechnologies to a wide range of fields. We expect that many accomplishments will result from these activities during the time period covered by ACE 2.0.

Next is the semiconductor business. Electronic component demand is increasing in a variety of industries, including automobiles, and is expected to rise further in the future. The NAGASE Group carries many high-performance materials used as process materials in semiconductors, so this is a major plus. Going forward, we will work to share information and promote collaboration throughout the supply chain by establishing an organization that spans the whole Group.

With increased health consciousness around the world, we are also excited about the future of the food ingredients business related to nutrition. As a result of the acquisition of the Prinova Group LLC, the NAGASE Group already has a certain amount of market share, which adds to our expectations for this business. Furthermore, we have set our sights on accelerating initiatives in the Southeast Asia region, and expanding through capital investments or M&A.

Our proactive investments in new businesses in these fields have started to generate current returns, and I expect that they will become key drivers of the NAGASE Group. Of course, the NAGASE Group has more than just these types of focus businesses. It also has core businesses, such as the chemicals and resins businesses. These businesses continue to be NAGASE’s breadwinners. We will continue to advance the “Pursuit of Quality,” not just business volume, in our core businesses by incorporating the element of sustainability.

Furthermore, I have high expectations for environmental businesses further in the future. We are leveraging the NAGASE Group’s diverse spectrum of technological capabilities to contribute to environmental improvement in a variety of ways, including carbon neutrality. For example, to promote carbon neutrality in the chemicals industry, we are working to develop business in collaboration with Zeroboard, Inc, which has developed cloud services for computing and visualizing greenhouse gases (GHGs). This service provides proposals on initiatives to reduce GHG emissions, encompassing not only Scope 1 and 2 emissions, but also Scope 3 emissions, and we will continue to pursue value that other companies cannot match. The first step will be to work on resolving customer issues. In the future, we hope that these efforts will pave the way for providing solutions that leverage new technologies.

The pursuit of sustainability is a critical theme for the NAGASE Group to grow its business and create value. We have made the framework for promoting sustainability stronger. Notably, on April 1, 2022, we changed the name of the Corporate Communication Dept. to the Corporate Sustainability Dept. and made it an organization that reports directly to the president.

My personal approach to sustainability has changed tremendously, even more so than the NAGASE Group’s stance on the subject. When I was appointed as president and the SDGs were adopted around 2015, they did not elicit the same level of interest that they do today. Even when I visited Europe and the United States, I don’t recall hearing much about the SDGs. However, from around 2018, just a few years later, the attitudes of world-famous manufacturers started to change dramatically. I was filled with a strong sense of urgency. Japan lags far behind the forward-thinking activities of companies in Europe and the United States. We must not fall behind this trend. That sense of urgency motivated me to work to spread the SDGs throughout the organization.

Based on the belief that our sustainability activities are part of the “Pursuit of Quality”, we are working to raise sustainability awareness among all NAGASE Group employees in 2022 under the “Green it!” theme. The company’s social value will surely increase if each employee takes individual ownership of our sustainability goals.

Improving employee engagement and achieving carbon neutrality have been identified as urgent issues for our sustainability activities. Two corporate projects focused on these issues were launched, and non-financial targets (KPIs) were set in ACE 2.0 following extensive discussions. We are determined to meet these targets, believing that non-financial targets (KPIs) are just as important as financial goals.

Employee engagement is, of course, essential for sustainable growth. The NAGASE Group defines engagement as the organization and its employees understanding and enhancing one another. People, in my opinion, are a company’s most important asset. What NAGASE needs going forward are human resources who are willing to take the initiative in making changes. However, what a single person can accomplish is limited. If we can foster a corporate culture that creates a process where the organization and employees enhance each other, we can energize communication beyond the boundaries of both parties, and make NAGASE a far stronger organization. First, we conducted an employee engagement survey to assess the current situation and identify issues. We will continue to promote two-way communication between the organization and employees.