Human Capital
- Strategy (Stance, Approach, Risks and Opportunities)
- Governance
- Risk Management
- Indicators and Targets
(Stance, Approach, Risks and Opportunities)
Basic Concept
SEKISUI CHEMICAL Group has established the Long-term Vision, Vision 2030, in order to become a globally indispensable corporate group that supports Life, with the aim of realizing a society in which all generations can enjoy an affluent existence. In an effort to realize Vision 2030, we will work to become an energized and engaged company where all employees thrive on challenges, in other words, to serve as a company that fosters innovation and creation while expanding its contribution to solving social issues.
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As we work to become an energized and engaged company where all employees thrive on challenges, we are promoting a shift in our human resources management that includes the promotion of a role-based human resources system and challenges as an investment in human capital. In addition, we emphasize Achieving the right talent in the right position by developing human resources that can respond to the speed of business growth and changes. This includes securing, selecting, and systematically training personnel who are essential to the realization of our Long-term Vision. Meanwhile, we have also initiated steps to invest heavily in human capital through such measures as expanding employee careers and improving working conditions to the tune of ¥12 billion over the three-year period of the Medium-term Management Plan.
Risks and Opportunities
SEKISUI CHEMICAL Group recognizes human capital-related risks and opportunities in the following factors and is working to address each factor accordingly.
| Factors | Risks | Opportunities |
|---|---|---|
| Increased competition for new graduate hires | ・Failure to achieve planned headcount due to the declining birthrate and downturn in the industry’s appeal | ・Productivity improvement through DX |
| ・Delay in new business development due to shortages in the necessary personnel | ・Supplementing the composition of labor through expanded career recruitment | |
| Increased mobility of human resources | ・Insufficient man-hours and specialized skills due to the downturn in retention | ・Promotion of diversity through expanded career recruitment |
| ・Further downturn in retention due to a decline in engagement | ・Standardization of operations through the use of systems | |
| Shortage of executive talent | ・Vacancies in line management positions due to the large number of retirements | ・Selection without regard to age, gender, or nationality |
| ・Decline in organizational strength due to the appointment of personnel undergoing development | ・Promotion of organizational revitalization and innovation | |
| Obsolescence of skills | ・Delay in business expansion due to inadequate response to changes in the environment | ・Improvement in the market value of employees through reskilling |
| ・Decline in employee engagement due to a downturn in motivation for growth | ・Expansion of global operations and creation of new products |
Human Capital Strategy
Under the Human Capital Strategy outlined in the Medium-term Management Plan (FY2023-2025), we are implementing various measures based on the three pillars of fostering a culture that embraces challenge, placing the right talent in the right position, and achieving diversity.
SEKISUI CHEMICAL Group is shaping the future by passing on the baton of challenge to each individual.
We are working diligently to realize our management strategies of strategic innovation and organic growth by fostering a culture that embraces challenge and maximizing individual and organizational strengths.
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System
SEKISUI CHEMICAL Group established the Diversity Promotion Committee as a part of efforts to carry out its human capital strategy. Engaged in a variety of activities, the committee meets twice a year. Within these activities, the Committee clarifies the supervisory and executive functions in a bid to strengthen the Group’s strategies and information disclosure as they relate to human capital management as well as efforts to promote diversity.
As far as the supervisory function is concerned, advice is afforded on the supervision and execution of human capital with regard to human capital management-related matters and efforts to secure the diversity of human resources.
From an executive function perspective, the Group established the Human Resources Subcommittee, under the Sustainability Committee. This Subcommittee is comprised of the general managers of the Human Resources Section at each divisional company and determines how the human capital management initiatives decided by the supervisory body will be executed. The Human Resources Department of Corporate Headquarters then collaborates with the labor union to swiftly execute these initiatives.
Diversity Promotion Committee
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Chairperson:Haruko Nozaki, Outside Director
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Members:Outside Directors (five), Chairman of the Board and Director, President and Representative Director, Representative Director Senior Managing Executive Officer, Director and Executive Officer and Head of the Human Resources Department
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Secretariat:Human Resources Department
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Human Resource / Promotional Structure
SEKISUI CHEMICAL Group recognizes the risks and opportunities of four factors regarding human capital: Increased competition for new graduate hires, Increased mobility of human resources, Shortage of executive talent, and Obsolescence of skills (see here).
We are promoting various measures to reduce risks based on KPIs that are set in conjunction with the risks and opportunities associated with each factor. In addition, the Human Resources Subcommittee, which meets once every six months, evaluates risks and opportunities along with these measures.
By adopting a PDCA cycle-based approach with respect to these initiatives, we are able to reduce risks, prevent reoccurrence, and expand opportunities. In this manner, we are promoting a human capital strategy .
The Group-wide Risk Review Subcommittee also evaluates risks and opportunities related to human capital, and monitors the likelihood (frequency) and impact (outcome). At the same time, steps are taken to confirm the consistency of measures in response to social conditions and demands, identify issues, consider countermeasures, develop strategies to reduce risks one step ahead, respond quickly when problems occur, and turn risks into opportunities.
SEKISUI CHEMICAL Group established 14 guiding principles under a new human capital strategy based on the Medium-term Management Plan launched in FY2023. These guiding principles consist of two policies and 12 KPIs (including three priority KPIs).
The following 14 guiding principles comprise the targets of SEKISUI CHEMICAL Group's human capital strategy.
14 Human Capital-related Guiding Principles
| Policies | |||
|---|---|---|---|
| 1 | Human resources development | ||
| 2 | Internal environmental improvement policy | ||
| KPI | |||
| No | Items | Category | Targets (2025) |
| 1 | Degree of challenging behavior expression | Priority | 60% |
| 2 | Rate of successor candidate preparation | Priority | 100% |
| 3 | Retention rate | Priority | Maintain/Improve from previous year |
| 4 | Engagement score | Major | Maintain/Improve from previous year |
| 5 | Training hours | Major | 10 hours |
| 6 | Ratio of female in management position | Major | 5% |
| 7 | Number of hires | Major | Ratio of female employees: 35% |
| 8 | Gender wage gap | Major | Maintain/Improve from previous year |
| 9 | Percentage of male employees taking childcare leave | Major | 75% |
| 10 | Employment ratio of people with disabilities | Major | 2.5% (above the legally stipulated ratio) |
| 11 | Total working hours | Major | Less than 2000 hours/year |
| 12 | Rate of long-term leave due to mental health problems | Major | 1.0% |