Basic Approach to Environment

The NAGASE Group aims to realize a sustainable world where people live with peace of mind. We believe a prerequisite of this vision is a sustainable global environment.

Currently, changes in the global environment are pressuring companies and individuals to make big decisions. The NAGASE Group helps realize a sustainable society by actively working to solve environmental problems, including by promoting a low-carbon society, realizing a recycling society, preventing pollution, preserving biodiversity, and efficiently using water.

In pursuing business activities, we give consideration to the natural ecosystem, global environment, and the conservation of the global environment, and make efforts for resource-saving, including reductions in energy and water consumption, and for the reduction and recycling of waste.

Environment Policy

In the spirit of our Management Philosophy we established the following policy for the protection and conservation of the natural environment.

1.Comply with all environmental laws, regulations and other rules

In promoting our business activities, we will comply with international declarations, conventions, and treaties related to environmental conservation, as well as the laws and regulations of the countries and regions in which we operate.

2.Develop businesses that give full consideration to environmental issues

In the promotion of our business activities, we will promote measures to cope with climate change, the formation of a recycling-oriented society, the conservation of water resources, consideration for biodiversity, and the management of chemical substances.
We will contribute to global environmental conservation by providing society with products, technologies, and services that contribute to solving environmental problems.

3.Fulfill our responsibilities as a good corporate citizen

As a good corporate citizen, we will work together with public institutions, industries, and local communities to promote environmental conservation measures that are suitable for the NAGASE Group.

4.Environmental management systems and continuous improvement

The NAGASE Group has set environmental targets to achieve our environmental policies. Further, we have established and operate an environmental management system, striving for continuous improvement.

5.Disclose and make the relevant parties fully aware of our Environmental Policy

We will disclose our Environmental Policy to the public and make all who work for the NAGASE Group fully aware of its contents.

April 1, 2023
Hiroyuki Ueshima
Representative Director and President, NAGASE & Co., Ltd

Environment Management System

The NAGASE Group's environmental management system began in May 1999 with the establishment of the Global Environment Committee (now the Risk and Compliance Committee). The committee has provided support and assistance in obtaining ISO 14001 certification, the international standard for environmental management systems. We will continue activities to improve environmental management systems among certified group companies.


Group Manufacturing Industry Cooperation Committee and Environmental Subcommittee

Promote the environmental activities of the NAGASE Group by visualizing and sharing environmental data and setting KPIs. Visualize, set KPIs and manage their operation, and share challenges towards reduction for environmental data, especially each scope (Scope 1, 2, and 3) of GHG emissions. Has established Group internal calculation rules for GHG emissions and are promoting efforts to calculate and reduce GHG emissions.

The NAGASE Group has set the following targets to promote environmental initiatives in the areas of Climate Change, Biodiversity, Prevention of Pollution and Resource Circulation, Chemicals Management, Water Resources, and Supply Chain. Please check the page of each disclosure item for the progress of each target.

Disclosure item Target item Boundary Targets for FY2022
Climate change GHG emissions Group Quantitative:
The NAGASE Group Carbon Neutral Declaration

We are also committed to achieving carbon neutrality, which means virtually zero GHG emissions by 2050 (Scopes 1 and 2). We will also reduce Scopes 1 and 2 by 46% from 2013 level and Scope 3 by more than 12.3% from 2020 level by 2030.
We will consider updating the target value of Scope 3 through future dialogue with our supply chain.
Biodiversity Business activities that may have an impact
Sustainable palm oil procurement
Group Qualitative:
In line with the NAGASE Group's Basic Approach to Biodiversity, with regard to business activities that may have a significant impact on biodiversity, we will strive to understand how we depend on biodiversity and what kind of impact we are having, and to minimize our impact on biodiversity and contribute to its recovery.

Sustainable palm oil procurement
100% (in FY2025)
Prevention of Pollution and Resource Circulation
Raw materials
Amount of paper used Non-consolidated (Tokyo Head Office) Qualitative:
In accordance with the NAGASE Group Environmental Policy (2. Promoting Environmentally Conscious Businesses), we will work to reduce paper consumption at offices.
Prevention of Pollution and Resource Circulation
General office waste
Recycling rate
Non-consolidated (Tokyo Head Office) Qualitative :
In accordance with the NAGASE Group Environmental Policy (2. Promoting Environmentally Conscious Businesses), we will work to improve the recycling rate at offices.

Quantitative :
Recycling rate of 80% or more
Amount of general office waste Non-consolidated (Tokyo Head Office) Qualitative: In accordance with the NAGASE Group Environmental Policy (2. Promoting Environmentally Conscious Businesses), we will work to reduce the amount of waste generated at offices.
Prevention of Pollution and Resource Circulation
New investment Non-consolidated Qualitative:
In accordance with the NAGASE Group Environmental Policy (1. Compliance with environmental laws and regulations), we will strive to prevent pollution by controlling the emission of pollutants, and comply with environment-related laws, ordinances, and other laws and regulations in the promotion of our business activities.
Production Group Qualitative:
In accordance with the NAGASE Group Environmental Policy (2. Promoting Environmentally Conscious Businesses), we will strive to prevent pollution by controlling emissions of pollutants at production sites, and conduct production activities.
Chemical management Management system to appropriately respond to relevant laws and regulations Group Qualitative:
In line with the NAGASE Group's Basic Approach to Chemical Management, we will strengthen product-related legal management, including chemical management, promote centralized information management, and establish a management system that appropriately responds to related laws and regulations for all products handled by the Group.
Water resources Volume of water taken and recycled
Group Qualitative:
In accordance with the NAGASE Group Environmental Policy (2. Promoting Environmentally Conscious Businesses), we will monitor the volume of water taken and recycled, manage water resources appropriately, and reduce the environmental impact.
Supply chain Value chain and environment Group Qualitative:
In line with the NAGASE Group Procurement Policy (3. Consideration for the Global Environment), we aim to build and maintain a responsible supply chain by having our business partners understand that environmental issues are social issues that should be addressed throughout the value chain.

Acquisition of ISO 14001 certification

Currently, NAGASE & CO., LTD. and its Group companies have acquired ISO 14001 certification, and the environmental ISO organization operates, maintains, and renews the certification.

Nagase and domestic affiliates

Affiliates ISO14001
Nagase Chemical CO., Ltd
Nagase Plastics CO., Ltd.
Nagase Abrasive Materials Co., Ltd.
Nishinihon Nagase Co., Ltd
Nagase Techno Service Co., Ltd.
Fukui Yamada Chemical Co., Ltd
CAPTEX Co., Ltd.
Nagase ChemteX Corporation/Harima/Sakai
Nagase ChemteX Corporation/Fukuchiyama (Current Nagase Viita Co., Ltd./Fukuchiyama)
Totaku Industries, Inc/Kansai Rinku Plant/Kyushu Plant/Kanto Oyama Plant
Nagase Techno-Engineering Co., Ltd.
Nagase Elex Co., Ltd

Overseas affiliates

Affiliates ISO14001
Nagase Electronics Technology (Xiamen) Co., Ltd.
Nagase ChemteX (Wuxi) Corporation
Pac Tech Asia Sdn. Bhd.
Pac Tech-Packaging Technologies GmbH
Sofix Corporation
Nagase (Malaysia) Sdn. Bhd/Penang
Nagase (Europa) Gmbh
Nagase Philippines Corporation

Internal environmental audits and external audits

The NAGASE Group conducts an annual internal environmental audit based on the ISO 14001 environmental management system. External audits are also conducted by a certification body.

Third-party assurance of environmental data

The Scope 1, 2, 3 data we disclose is third-party guaranteed by SOCOTEC Certification Japan to enhance the reliability of the information.

Violation of environmental laws and regulations

There were no violations of environmental laws and regulations (payment of fines or penalties) in the NAGASE Group in FY2023.

Cleantech opportunity

In its ACE 2.0 medium-term management plan, the NAGASE Group identifies "Creating new value through the use of advanced technologies" and "Solving social and environmental issues and globalization" as key issues (materiality). Environmental risks, including climate change, are also opportunities for cleantech businesses. The NAGASE Group promotes its business by viewing cleantech as an opportunity through collaboration with its R&D function, which pursues commercialization from a variety of perspectives and R&D capabilities over the medium to long term. And since the NAGASE Group has manufacturing and processing functions in addition to its trading company functions, we have categorized our operations into the two axis and four quadrants of "trading company/manufacturing" and "visualization/reduction," and will work to achieve our targets under the NAGASE Group Carbon Neutrality Declaration consisting of overall measures and measures 1) through 4).

Large category Middle category Small category Business example
Alternative energy Renewable energy Participation in solar power generation and development Nagase & Co., Ltd. is supplied by Murata Manufacturing Co., Ltd. with FORTELION, an iron phosphate-type lithium-ion battery, and Captex Co., Ltd., a member of the NAGASE Group with strengths in technology, development, and manufacturing related to energy storage, manufactures storage battery panels for self-consumption solar power generation.

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Alternative fuel Participation in biogas development and sales Nagase & Co., Ltd. sells BGMAX (microbial formulation) manufactured by Novozymes Biologicals, which efficiently decomposes organic substances under anaerobic conditions to improve the overall efficiency of the system.

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Involvement in the development or sale of fuel cells/hydrogen systems Captex Co., Ltd., a member of the NAGASE Group, manufactures lithium-ion battery modules for environmentally friendly vehicles such as electric vehicles.

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Energy efficiency Power management Involvement in the manufacture or sale of batteries Captex Co., Ltd., a member of the NAGASE Group, manufactures industrial storage battery systems, compact battery power supplies, power supplies embedded in equipment using standardized small battery modules, and emergency power supply systems charged from renewable energy sources.

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Involvement in the manufacture or sale of nanotechnology NAGASE & CO., LTD. sells The Shepherd Color's inorganic composite oxide-based thermal barrier pigments to paint manufacturers. The use of paints with these thermal barrier pigments contributes to the reduction of electricity and energy consumption.

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Participation in the development of energy solutions for household products Nagase & Co., Ltd. sells eneEase, a next-generation energy product, to households.
eneEase is a set including photovoltaic power generation, storage batteries, and home energy management system (HEMS). It enables electricity to be made, stored, used, and controlled from power generation by solar panels to storage by storage batteries and control by power conditioners.

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Fuel efficiency Involvement in development and sales of hybrid and electric vehicles Nagase & Co., Ltd. is conducting a demonstration experiment to operate a small electric vehicle (EV) in a delivery business field with the aim of contributing to the shift to EVs in society as a whole by promoting the use of small EVs.

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Involvement in development and sales of advanced materials Nagase ChemteX Corporation supplies epoxy resin products to Toyota Motor Corporation. Toyota's hydrogen-powered MIRAI is equipped with a high-pressure hydrogen tank, which is made of strong carbon fiber reinforced plastic (CFRP). Nagase ChemteX Corporation's epoxy resin products are used as matrix materials to impregnate carbon fibers, contributing to improved tank productivity.

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Industrial operation & automation Involvement in the development or sale of optimization technologies and systems Nagase & Co., Ltd. sells zeroboard, a cloud service for calculating and visualizing carbon dioxide (CO2) emissions developed by Zeroboard, Inc. for the purpose of supporting corporate decarbonization management. We are mainly engaged in the chemical industry, selling this service, gathering customer needs, and developing and providing solutions to reduce CO2 emissions.

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The Nagase R & D Center, a research and development facility of Nagase & Co., Ltd., has achieved the world's highest level of production efficiency by increasing the productivity of the rare amino acid ergothioneine approximately 1,000 times by utilizing innovative biotechnology developed in the Smart Cell Project of the New Energy and Industrial Technology Development Organization (NEDO). Currently, we are aiming to commercialize the product as soon as possible by utilizing the production strains we have developed.

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Pollution prevention and control Clean air Involvement in the development or sale of environmental information technology Aience Inc, an affiliate company of the NAGASE Group, has developed the Deoriser, a scrubber (air pollution and odor control device) that uses a unique wastewater treatment system called Aquablaster, which promotes microbial metabolism and realizes wastewater treatment that does not rely on chemicals.

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Involvement in the development or sale of conventional pollution control technology Aience Inc, an affiliate company of the NAGASE Group, has developed the Deoriser, which is highly effective in treating organic solvents and smoke emitted from chemical manufacturers and food factories.

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Reuse and recycling Involvement in development and sales of reusable products or waste recycling products Nagase & Co., Ltd., which holds the Nagase Application Workshop, supports the recycling of Tritan wine glasses (manufactured by Ishikawa Jyushi), which are used in all branches of Saizeriya's Italian restaurant Saizeriya, by providing recycled materials and developing products for Ishikawa Jyushi.

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Water treatment and purification Water treatment and purification Participation in wastewater treatment business, development and sales of wastewater treatment technology Aquablaster, a wastewater treatment system provided by Aience Inc, an affiliate company of the NAGASE Group, uses proprietary technology to promote the metabolism of microorganisms to achieve wastewater treatment that does not rely on chemicals. Aquablaster has already been installed in wastewater treatment facilities at numerous plants.

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Education and enlightenment activities

We educate and enlighten our employees on ISO 14001 through the environmental and sustainability-related pages and briefings on website and intranet. We also provide information and discussion on important themes related to environmental issues such as climate change through Round Sessions for each business unit by the Sustainability Office, which was established in April 2021, and the Climate Change Workshop, where representatives of business units share information and discuss the “opportunities,” which is a disclosure item of TCFD (the Task Force on Climate-Related Financial Disclosures).In addition, as the introduction of Life Cycle Assessment (LCA) is rapidly progressing in the industrial world, Nagase is supporting employees to take the LCA beginner's exam and study under the "Self Innovation Challenge" system, which supports learning through study groups and online information exchange.