CSR Activity Report (CSR Guideline Activity Reports)

Contributing Solutions to Social Issues through Business Activities

Leverage innovation to address global-scale environmental issues such as climate change and provide solutions for various social issues such as the need to improve the quality of medical care, the need to reduce the burden on medical staff, health maintenance and longevity, and personal safety, thereby helping to build a more sustainable world.

Basic Approach

Global environmental issues continue to escalate, marked by climate change, rising CO2 concentrations, and population growth-induced water scarcity and resource depletion. More than seven billion people live on Earth, a number that is expected to surpass 10 billion by 2050. Meanwhile, developed countries as well as many emerging countries are expected to face rapid population aging, as average lifespans increase and birthrates decline.
In the world of the 21st century, the most critical shared challenges are to resolve global-scale environmental issues and to provide healthcare that helps people lead healthy, independent lives, which involves delivering high-quality medical care that reduces the burden on both patients and medical staff.

As basic strategies of the Medium-Term Management Program, Project AP-G 2019, Group has implemented the Green Innovation Business Expansion Project (Green Innovation Project) and the Life Innovation Business Expansion Project (Life Innovation Project) to expand business in growth sectors. These efforts are directed by the Global Environment Business Strategic Planning Department and the Life Innovation Business Strategic Planning Department, respectively. The progress on the projects has been followed up by company-wide management committees and other bodies. To strengthen the initiatives, in 2018, the Group established and announced the Toray Group Sustainability Vision to clearly outline the world as envisioned by the Toray Group in 2050, and also set KPIs to be achieved by 2030 as long-term targets. To help ensure the achievement of the Sustainability Vision, the Group is strongly promoting the Green Innovation Project and Life Innovation Project group-wide. These projects are led by the president of Toray Industries, under the Long-Term Corporate Vision, TORAY VISION 2030, and the Medium-Term Management Program, Project AP-G 2022, which were announced in May 2020.

In the Green Innovation Project, Toray Group works to achieve “a net-zero-emissions world, where greenhouse gas emissions are completely offset by absorption,” “a world where resources are sustainably managed,” and “a world with a restored natural environment, with clean water and air for everyone,” as outlined in the Toray Group Sustainability Vision. Here are some specific examples of Toray initiatives under this vision. To accelerate efforts to fight climate change, the Group will expand aircraft and automobile applications for its advanced materials and help reduce CO2 emissions by improving fuel efficiency through vehicle weight reduction. It will also work to help society transition to renewable energy by supplying materials for wind and hydrogen power applications. To enhance the sustainable use of recycled resources, the Group will promote initiatives for resource recycling and bio-technology. To help ensure safe water and air, it will proceed with initiatives in areas such as water treatment membranes and air filters.

With its Life Innovation Project, Toray Group seeks to build “a world with a restored natural environment, with clean water and air for everyone,” as well as “a world where everyone enjoys good health and hygiene,” as set out in the Toray Group Sustainability Vision. In working toward “a world where everyone enjoys good health and hygiene”, the Group is focused on “contributing to better medical care and hygiene for people worldwide.” In order to accelerate this initiative, the Group has broadened Life Innovation beyond its conventional definition of products that support people’s health maintenance and longevity and improve the quality of medical care, to include products that support personal safety and help the elderly and home-care recipients to live more independent lives (improving activities of daily living [ADLs]).

Structure

In April 2021, the Group established the Sustainability Committee to serve as a group-wide committee. Headed by the president, the committee is tasked with promoting efforts to achieve the Toray Group Sustainability Vision. Toward this end, the committee draws up the overall medium- and long-term roadmaps and action plans for achieving the Vision and deliberates on the yearly action plans for the three group-wide projects—the Green Innovation Project, the Life Innovation Project, and the Challenge 30 Project1—and manages the progress on KPIs for fiscal 2030. In addition, the committee further promotes these efforts by overseeing and managing implementation issues and the status of activities. The Sustainability Committee is additionally responsible for overseeing the implementation of efforts to address climate change and discusses important policy matters and topics related to climate change. In order to address this topic as it relates to the entire Toray Group, the committee also collaborates with the CSR Committee, Risk Management Committee, Safety, Health and Environment Committee, and Technology Committee, all of which deal with issues related to climate change. For more information on the Toray Group governance structure related to the issue of climate change, please refer to the Toray Group TCFD Report 2021.

  1. 1 The Challenge 30 Project aims to achieve a 30% reduction in greenhouse gas emissions and water usage per unit of revenue in production activities by fiscal 2030 (compared with fiscal 2013) by undertaking the following activities.
    ・Implement regular energy-conservation activities with stronger cooperation between sites in and outside Japan, and adopt successful case studies across the Group
    ・Shift to purchasing electricity instead of generating with coal-fired boilers, and increase the usage of biomass fuels
    ・Promote wastewater reuse, etc. with Toray Group’s water treatment technologies

CSR Roadmap 2022 Targets

CSR Roadmap goals

Help address social issues by developing innovative materials and new technologies, focusing on the fields of Green Innovation and Life Innovation

Main Initiatives and Key Performance Indicators

KPI
⑴ Increase revenue from Green Innovation products
7-❶
⑵ Increase revenue from Life Innovation products
7-❷
⑶ Expand contribution to CO2 reduction in the value chain1
7-❸
⑷ Expand water filtration throughput contribution by Toray’s water treatment membranes2
7-❹
⑸ Conduct a wide variety of product research and technology development to help build a low-carbon, circular economy
-
⑹ Contribute to the utilization of biomass in and recycling of plastic products, the spread of renewable energy and hydrogen, and the reuse of water resources
-
⑺ Contribute to countermeasures to public health risks, including infectious diseases, by developing and upgrading materials and products for protective clothing and personal protective equipment, as well as materials to protect environmental hygiene including of air and water
-
Key Performance Indicator (KPI) Target Fiscal 2020 Result
Fiscal 2020 Fiscal 2021 Fiscal 2022
1,000 billion yen (Fiscal 2022) 711.8 billion yen
300.0 billion yen (Fiscal 2022) 275.6 billion yen
5.3 times compared to fiscal 2013 (Fiscal 2022) 6.4 times compared to fiscal 2013
2.4 times compared to fiscal 2013 (Fiscal 2022) 2.0 times compared to fiscal 2013
  1. Reporting scope : Toray Group
  1. 1 Toray calculates the CO2 emissions reduced throughout the value chain of products in accordance with the chemical sector guidelines of the Japan Chemical Industry Association, the International Council of Chemical Associations (ICCA), and the World Business Council For Sustainable Development (WBCSD).
  2. 2 Toray calculates water treated with Toray’s water treatment membranes by multiplying the amount of fresh water that its ultrafiltration water treatment membranes can produce per day, including reverse osmosis (RO), ultrafiltration (UF) and membrane separation bioreactors (MBR), by the number of membrane elements sold.

Related Materiality for CSR

  • Contributing to the solution of environmental issues through business activities
  • Contributing to health maintenance and longevity through business activities
  • Initiatives for managing water resources

Click here for a PDF summary of materiality-related CSR Roadmap 2022 main initiatives, KPIs and progress (PDF: 1.6MB).PDF

Looking to the Future

In fiscal 2020, the Green Innovation Project generated revenue of 711.8 billion yen on a consolidated basis. This was a year-on-year decline, attributed partly to the impact of the COVID-19 pandemic, and is expected to be a temporary decline. On the other hand, the CO2 emissions avoided by the use of Toray Group products throughout the value chain increased due to business expansion. The Group will continue to help address resource, energy, and global environmental issues through its businesses.
Worldwide issues such as climate change, water scarcity, and resource depletion will become more serious, inducing a transition to more sustainable modes of production and consumption. Initiatives will be implemented for moving to a circular economy where used products are recovered and regenerated to make new ones. This will enable a further transition from a mass production/mass consumption linear business scheme to business models such as PaaS (products as a service), sharing, product life extension, resource collection and recycling, and circulated supply chains. The Green Innovation Project will take advantage of this transition to create new business opportunities and development.

In fiscal 2020, the Life Innovation Project generated revenue of 275.6 billion yen on a consolidated basis, growing year on year due to the addition of personal safety products to this business area as well as increased shipments of non-woven fabrics for medical gowns and masks. Moving forward, Toray Group will continue to leverage its strengths in advanced materials in Life Innovation fields. In the Pharmaceuticals & Medical Products Business, the Group will accelerate its entry into new fields such as diagnostic medicines.

Fiscal 2020 CSR Activity Report

Click below on activity reports for fiscal 2020