Shin-Etsu Chemical

Stakeholder engagement

The company discloses how often and through which channels it engages with various stakeholder groups.

No leading practices were identified in the ecosystems and biodiversity area.

No leading practices were identified in the social inclusion and community impact area.

Sustainability strategy and accountability

The company does not disclose its process for identifying and prioritising its most relevant sustainability topics and impacts. While the company discloses some sustainability targets, no evidence that the company has group wide targets on key sustainability topics for the most material parts of its value chain based on the SBTN Sectoral Materiality Tool could be found in the public domain. The company reports consistently against all its targets. No evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Stakeholder engagement

The company does not disclose an overview of the issues raised during its stakeholder engagement activities.

Lobbying

While the company discloses some trade associations of which it is a member, this is not a complete list covering all geographies. The company does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. The company does not report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment

The company has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species

The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.
Ecosystem conversion and restoration
No evidence was found regarding the company’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Resource exploitation and circularity

No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets. While the company discloses evidence of conducting groundwater and soil monitoring in its own operations, no qualitative evidence of improving soil health was found. The company does not have a target to improve soil health in its production or sourcing practices.

Water

No quantitative evidence was found of reductions in water withdrawal across the company’s own operations. While the company has a target to reduce water withdrawal, it does not report reductions in water withdrawal. The company does not report how much water is withdrawn for its own operations in water-stressed areas. The company does not engage with suppliers to reduce water withdrawal. The company does not report a decrease in water pollution. The company discloses its processes for managing and monitoring discharge water quality. The company regularly reports on water pollution. While the company has a target to reduce water pollution, it does not report reductions in water pollution. The company does not disclose a commitment to respect the right to water. The company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution

The company is not reducing the production of hazardous substances. The company does not commit to avoid developing or marketing new chemicals or products with SVHC (substance of very high concern) properties. The company is not reducing the production of hazardous waste. The company is not reducing plastic use and waste in its own operations. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company reports regularly on air quality parameters of emissions of harmful air pollutants. While the company has a target to reduce air pollutants, it does not have a time-bound target.

GHG emissions

The company is reducing its scope 1 and 2 greenhouse gas emissions. The company has a time-bound target to reduce its scope 1 and 2 emissions. The company reports progress against its scope 1 and 2 emissions target. The company’s scope 1 and 2 emissions target is not aligned with a 1.5-degree trajectory. The company is not reducing its scope 3 emissions. The company does not disclose a time-bound target to reduce its scope 3 emissions. The company does not report progress against its scope 3 emissions target. The company’s scope 3 emissions target is not aligned with a 1.5-degree trajectory.

Invasive species

The company has not identified any activities that could lead to the introduction of invasive species in its own operations

Safe, healthy, clean environment

The company does not show if it is committed to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous peoples’ and land rights

The company does not show if it is committed to respecting Indigenous Peoples’ rights or Land rights of local communities.

The company describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations. The company describes its process for assessing its human rights risks. However, it has an opportunity to disclose what it considers to be its salient human rights issues. The company does not publicly disclose the results of its assessments, which may be aggregated across its operations and locations. While the company discloses that it conducts routine human rights risk assessments and that it remediates in locations with the highest risk, no evidence was found that it has a global system to act on all its salient human rights issues. There is no evidence that the company provides an example of the conclusions reached and actions taken or to be taken on at least one of its salient human rights issues as a result of assessment processes. While the company discloses the categories of stakeholders it engages with generally on sustainability issues, it is not clear if these stakeholders are those whose human rights have been or may be affected by its activities. There is no evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities.

There is no evidence that the company has a publicly available policy statement committing it to respect the health and safety of workers. The company has a publicly available policy statement which shows it expects its suppliers to commit to respecting the health and safety of their workers. While the company has committed to living wage, it has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. There is no evidence that the company describes how it determines a living wage for the regions where it operates. There is no evidence that the company describes how it works to support the payment of a living wage by its suppliers. There is no evidence that the company discloses the proportion of its total direct operations workforce covered by collective bargaining agreements. While the company states that it encourages its suppliers to respect employees’ right to freedom of association and the right to collective bargaining, it has an opportunity to describe how it works to support the practices of its suppliers in relation to those.

The company discloses a tax strategy, but it is not applicable to all its operations. The company has an opportunity to disclose a policy on bribery and corruption and its processes for identifying and addressing bribery and corruption. The company does not disclose its approach to lobbying and political engagement in a public policy document.