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CSR

Message from the President

Message from the President

With its finger on the pulse of changing times, the ADEKA Group is leveraging its strengths in materials to contribute to a sustainable society.Hidetaka Shirozume President and Chief Executive Officer

Changes Wrought by COVID-19

The ADEKA Group mourns those who have lost their lives in the current COVID-19 pandemic and expresses its sincere condolences to their families. To those who are suffering from this disease, we wish you a full and speedy recovery.

In fiscal 2020, the ADEKA Group took measured steps to prevent the spread of COVID-19, always placing first priority on the safety of its employees. We implemented a range of emergency measures, including staggered shifts and use of remote work and online conferencing. To realize remote work and free-address workstyles, the Group launched the Remote Work Promotion Project, to furnish a workplace environment in which employees could work at home or at the office with no difference in performance while reducing the use of paper media Group-wide. We also launched two organizations spearheaded by the president, the Business Digitalization Project and the Business Digitalization Department, which are working toward the achievement of digitalized business management.

Current circumstances are shifting markets into low or neutral gear while prompting rapid transformation of workstyles. Under these conditions the ADEKA Group is building a robust and responsive management structure to gain a keen grasp of these social changes and meet stakeholder expectations in a timely manner.

Enriching People’s Lives Through Our Business

Guided by its management policies of striving “to be a company that is progressive and dynamic with a keen attitude towards the new changing tide” and “creating a better future for the people of the world,” the ADEKA Group contributes to enriching people’s lives by delivering innovative materials that respond to customer needs.

In July 2020, the ADEKA Group adopted the corporate slogan “Add Goodness,” as a way of succinctly expressing its corporate stance. The slogan reflects the ADEKA Group’s determination to be no mere supplier of materials, but a supplier that recognizes trends in the market environment early on and responds to those emerging needs by providing materials with value-added, enhanced by its technology, service and talented personnel.

A global trend is unfolding in which an array of forward-looking initiatives are being put into action at an accelerating pace. Surveying these developments, we at the ADEKA Group believe we have a momentous role to play in solving the issues humanity confronts, including curtailing the COVID-19 pandemic and achieving carbon neutrality, to bring about a stable and prosperous international society. As a good corporate citizen, the ADEKA Group is committed to its mission, unchanged since the Company’s foundation of contributing to the environment and society, practicing sound and transparent management, and continuously supplying customers with safe, dependable products of high performance and quality.

Looking Back on the Previous Mid-Term Management Plan and Gearing Up for the Next

In its previous mid-term management plan, BEYOND 300, the ADEKA Group adopted a core policy of becoming an excellent company with sales exceeding 300 billion yen. For fiscal 2020, the final year of this Plan, the Group had set goals of consolidated net sales of over 300 billion yen from organic growth, operating profit ratio of 10%, ROE of 10% and payout ratio of 30% (target for the final year of a series of phased increases).

In fiscal 2020, the ADEKA Group attained consolidated net sales of 327 billion yen and a payout ratio of 30%. Despite the stagnation foisted on the economy by the COVID-19 pandemic, net sales, operating profit and ordinary profit all rose to all-time highs. However, the targets for net sales from organic growth and profit ratio were not met. The three years of the previous mid-term management plan were a period of careful groundwork in preparation for growth, through various measures and investments guided by the Group’s three basic strategies: global expansion of three main businesses (polymer additives, chemicals and foods), entering new domains and enhancing our management foundation.

The ADEKA Group updated its mid-to-long-term targets in April 2021, drafting ADEKA VISION 2030, a vision for achieving the Group’s management policies by 2030, and launching a fresh three-year mid-term management plan, ADX 2023. Focusing squarely on bolstering earnings, ADX 2023 is positioned as the first stage of the Group’s advance toward achieving an operating structure with a robust management base as envisioned in ADEKA VISION 2030.

To formulate ADX 2023, the ADEKA Group revised its fundamental CSR policy and identified new, high-priority CSR issues, to respond to today’s new social environment. The Group is integrating CSR into every facet of its management, by clarifying the relationships between high-priority CSR issues and SDGs targets and reflecting the high-priority CSR issues and KPIs in its measures for ADX 2023.

ADX 2023 pursues both social and economic value, incorporating new social needs such as carbon-neutrality. It is the path by which ADEKA will transform itself into a robust, earnings-focused enterprise constitution that boosts enterprise value and contributes more than ever to achieving a sustainable society. By pursuing a fundamental strategy of transforming its revenue structure, achieving sustainable growth by expanding into new business domains and strengthening the management foundations of the Group, the ADEKA Group is moving ahead with efforts to achieve consolidated operating profit of 35 billion yen, consolidated net sales of 380 billion yen and ROE of 9% in fiscal 2023.

Toward a Sustainable Society

These days a great number of companies are realigning their management approaches to dovetail with goals such as sustainability and environmental, social and governance (ESG) concerns. ADEKA believes that CSR activities are the initiatives needed to achieve a sustainable society and that disclosing those activities to stakeholders is the surest way to earn the trust of society.

The ability to respond to the dramatic changes unfolding worldwide is the true test of companies today. But while ADEKA’s engagement with CSR may seem new, in fact this challenge is already integral to the culture, spirit and management policies of ADEKA as well as the ADEKA Group Code of Conduct, handed down to the ADEKA Group since ADEKA’s foundation. In 1917 this determination was inscribed by the Company’s pioneers in its founding prospectus: “In the interest of Japan and its citizens, caustic soda production in Japan should be achieved as soon as possible.” The very founding objectives of ADEKA constitute CSR itself.
Furthermore, the management policies of the ADEKA Group consist of two phrases: “[Striving] to be a company that is progressive and dynamic with a keen attitude towards the new changing tide” and “creating a better future for the people of the world.” These phrases attest to the Group’s resolute will to create products and services that society and individuals desire using original technologies, expand into a diverse range of fields and continuously tackle challenges in ways that respond flexibly to a changing environment. These management policies also encapsulate our desire to be a “global good company,” not merely doing business on the global stage but working with communities to create value for society.
To guide the ADEKA Group in ongoing business activities with high sense of ethics, the ADEKA Group Code of Conduct enjoins ADEKA and its Group companies to obey their consciences, conducting business in a sound, transparent and impartial manner, complying strictly not only with laws and regulations but also with in-house regulations, social norms and corporate ethics; and to provide products and services of excellent quality, not only complying strictly with laws and regulations but also meeting the expectations of society. With each ADEKA Group officer and employee understanding and taking guidance from this Code of Conduct, the ADEKA Group is enhancing the reputation and trust it enjoys while working to achieve mutually prosperous coexistence with the communities in which it does business.

Furthermore, the management policies of the ADEKA Group consist of two phrases: “[Striving] to be a company that is progressive and dynamic with a keen attitude towards the new changing tide” and “creating a better future for the people of the world.” These phrases attest to the Group’s resolute will to create products and services that society and individuals desire using original technologies, expand into a diverse range of fields and continuously tackle challenges in ways that respond flexibly to a changing environment. These management policies also encapsulate our desire to be a “global good company,” not merely doing business on the global stage but working with communities to create value for society.

To guide the ADEKA Group in ongoing business activities with high sense of ethics, the ADEKA Group Code of Conduct enjoins ADEKA and its Group companies to obey their consciences, conducting business in a sound, transparent and impartial manner, complying strictly not only with laws and regulations but also with in-house regulations, social norms and corporate ethics; and to provide products and services of excellent quality, not only complying strictly with laws and regulations but also meeting the expectations of society. With each ADEKA Group officer and employee understanding and taking guidance from this Code of Conduct, the ADEKA Group is enhancing the reputation and trust it enjoys while working to achieve mutually prosperous coexistence with the communities in which it does business.

In April 2021 ADEKA signed the UN Global Compact. The ADEKA Group continues to conduct itself as a good corporate citizen, working hard to protect human rights, eliminate unjust labor conditions, address environmental concerns and prevent corruption. The Group also continuously generates excellent value, through products that contribute significantly to the environment and address social issues; and contributes through its operations to the achievement of the SDGs to which international society aspires.

The ADEKA Group will persevere more than ever to conduct management that achieves harmony with society while meeting the expectations of a wide range of stakeholders, including customers, shareholders, investors, business partners and regional communities.

CONTACT

For inquiries about us, please contact us via inquiry form, telephone or fax.

For inquiries about us, please contact us by phone or fax.

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