Message from the President
Kuraray's history is filled with episodes of struggle as we took up the challenge of new business ahead of the rest of the world, beginning with our commercialization of rayon in 1926, followed by KURALON, CLARINO, poval, EVAL, isoprene, and GENESTAR. In the age of turmoil spanning the period of 83 years straddling World War II, we nurtured the Kuraray corporate culture by venturing to create business with a high social value utilizing original technology. This corporate culture is imbued with the idea of social responsibility, which motivates us to "contribute to the world and individual well-being through actions that others are unable to produce", as a good corporate citizen.
I earnestly hope that this report will assist understanding of our corporate culture and commitment to fulfilling our social responsibilities.
Economic Crisis and Corporate Responsibility
In 2008, the global community was rocked by the bubble of speculative investment in energy resources in the first half, and the eruption of a financial crisis and simultaneous worldwide depression triggered by collapse of Lehman Brothers in the second.
We at Kuraray believe that management mindful of the fundamental needs of corporate social responsibility is vital precisely at times like these, when social sustainability is being exposed to the risks of global crisis and the prospects for the very subsistence of corporate enterprises are jeopardized by the loss of demand and employment.
Fiscal 2008 was the final year of GS-21, our mediumterm business plan, and our results fell far short of the targets in it owing to the worsening of our revenues because of the steep drop in demand in the second half. To deal with this harsh business climate, we commenced implementation of GS-Twins, a medium-term action plan aimed at recovery of earning structure, development and expansion of new business, and acceleration of our global strategy over the three-year period beginning in fiscal 2009. The plan views the paradigm shift toward the low-carbon society as an opportunity for making a big leap forward, and adopts priority input of management resources in new environment-oriented business as a matter of basic policy on the Group level.
By staunchly maintaining our management stance of contribution to a sustainable society and fulfilling our social responsibilities under a system of effective corporate governance, we remain determined to achieve our corporate mission, which states: "We in the Kuraray Group are committed to opening new fields of business using pioneering technology and contributing to an improved natural environment and quality of life."
Approaches to Global Environmental Problems
In 2008, discussions at the Toya Lake Summit Conference concerning a new international framework looking to the post-Kyoto Protocol reached an agreement on a long-term target for reduction of greenhouse gas (GHG) emissions (50% in 2050). While the path to resolution of global warming depends on the outcome of future negotiations on the international framework, I think it is imperative for corporate enterprises to seize this target as an opportunity for development of technology and business for positive contribution to society instead of grudgingly accepting it as a burden.
We at Kuraray formulated our Medium-Term Environmental Plan in 2000 and are taking action toward attainment of its ambitious target, which calls for a 10% reduction in GHG emissions in fiscal 2010 relative to fiscal 1990, mainly by having our domestic plants basically meet their utility requirements with power they generate on their premises. By fiscal 2008, we had reduced GHG emissions by 22.7% through energy-saving measures and fuelswitching, and achieved an overall reduction of 12.7%, in excess of the influence of change in the volume and makeup of production.
We are determined to review our very production processes and develop innovative environmental technology and environmentally friendly products with a view to further emission reduction throughout the product lifecycle.
Kuraray as a Good Corporate Citizen
The 21st century is an age in which countries and the international community will be called upon to find rational solutions for serious problems in the economic, social, and environmental spheres. Companies, too, as members of society, will be asked to contribute in their area of expertise to the sustainability of global society in addition to discharging their direct responsibilities to their shareholders, customers, employees, local communities, and all other stakeholders.
Kuraray is proud to have a corporate culture in which each and every employee stays keenly aware of his or her responsibilities to society as a good citizen and takes action backed by a strong sense of ethics. We shall continue to spare no effort to cooperate in shared goals, fulfill our social responsibilities as a global corporate citizen, and put our corporate philosophy into practice.
