Sustainability

Social Actions

KH Neochem contributes to society through business and communication activities in order to enrich society and contribute to the sustainable development of the global environment.

Contributing to a sustainable society through our business

We will drive Sustainable Management with the aim of contributing to achieving a sustainable society through our business and further increasing our corporate value.
Based on a wide-ranging customer network that is our strength, we are contributing to the achievement of a sustainable society by accurately identifying needs related to solutions for environmental and social issues, and mobilizing rich and unique technologies, the world's leading manufacturing plants, and major products with large market shares, with a central focus on the three strategic domains of Environment, Healthcare and Electronics.

Environmental domain

Contributing to global warming prevention

Social issues

Global sales of air conditioners are expected to triple from the current figure by 2050. International refrigerant regulations designed to curb global warming are being advanced, and environmentally friendly air conditioners that utilize refrigerants with low global warming potential (GWP) must become more widely used.

The value we provide

As a leading manufacturer of refrigeration lubricant raw materials, we are increasing our production capacity for refrigeration lubricant raw materials that are compatible with low GWP refrigerants in order to meet the growing demand for environmentally friendly air conditioners. The expansion work at the Chiba Plant is scheduled to be completed in the summer of 2024 (the expansion of the Yokkaichi Plant was completed in 2020). We will strive to contribute to the prevention of global warming by providing a stable supply of products made by fully leveraging our advanced technical capabilities.

Company estimates for the air conditioner market. Global sales are forecast to grow from 115 million units in 2021 to 200 million units in 2030 (CAGR +6%). In China, sales are forecast to grow from 46 million units in 2021 to 71 million units in 2030 (CAGR +5%). In Other Asia countries of excluding Japan, sales are forecast to grow from 16 million units in 2021 to 51 million units in 2030 (CAGR +14%).

New contributions born from environmental measures

Air conditioners installed in electric vehicles (EVs), which are becoming increasingly popular around the world, and heat pump-style hot-water supply heating systems, for which demand is rapidly increasing in Europe due to soaring energy prices and stance on reducing greenhouse gases, use the same system as home air conditioners. We will contribute to global warming mitigation by supplying refrigeration lubricant raw materials for these new applications, which are expected to expand significantly in the future.

Fossil fuel vehicles use exhaust heat from the engine for heating, A system that makes it hard to use our refrigeration lubricant raw materials. However, EVs use the same system for both heating and cooling as home air conditioners so our refrigeration lubricant raw materials can be used.
Healthcare domain

Contributing to improved QOL

Social issues

While the need for beauty products declined temporarily due to the COVID-19 pandemic, medium- to long-term demand is expected to expand further hand-in-hand with the expansion of the middle class resulting from growth in emerging countries, particularly in Asia. We need to cater to diversifying consumer needs, such as consumers' growing preference for high-quality high-end products and the expansion of the male cosmetics market.

The Asian cosmetics market (Research estimates by the Company). CAGR of +8% is predicted from 2021 to 2025.

The value we provide

1,3-BG, our mainstay product in cosmetic ingredients, is used in a wide range of applications, mainly in high-end skincare products, due to its strong moisturizing properties and antibacterial properties, as well as its reduced odor and amount of skin irritation. We will also engage proactively in open innovation to expand our lineup in the healthcare field, and contribute to global improvement of quality of life and richer lives for people.

Electronics domain

Contributing to an advanced information society

Social issues

In recent years, production of cutting-edge semiconductors has been increasing both in Japan and overseas due to the need for cutting-edge semiconductors and the highly sensitive sensors used with them in the expanding fields of IoT technology, AI technology, self-driving vehicles, and telemedicine. The manufacture of advanced semiconductors requires high-quality chemical materials with very few impurities that can withstand miniaturization and integration, and sensors require high-tech resin materials for use in lenses and other applications.

The Global photoresist market (The values are forecasts).CAGR of +6% is predicted from 2021 to 2025. In particular, The CAGR of the EUV photoresist market is predicted to be +30%.

The value we provide

We manufacture high-purity solvents containing extremely low volumes of impurities through a fusion of high purification (distillation) technology and high quality control technology. We provide them to a wide range of customers in the field of electronics materials as raw materials for items such as the photoresists that are essential in semiconductor manufacturing. Also, our group company Kurogane Kasei is engaged in various contract manufacturing businesses related to electronics materials, including in the field of cutting-edge semiconductors. These products and technologies help to boost photoresist quality and support the evolution of semiconductors.

In addition, we are moving forward with the development of high-tech resin materials utilizing the oxo technology that is our strength, and will contribute to increasing the sophistication of sensing technology.

Exterior view of Quality Control Building, Yokkaichi Plant
Quality Control Building, Yokkaichi Plant (Completed in March 2022)
Photo: Ena Mitsui (Kawasumi • Kobayashi Kenji Photograph Office)

Environment Measures in Factories

ISO14001 Certification

Both of KH Neochem's plants, located in Yokkaichi and Chiba, have acquired ISO14001 certification. ISO14001 is an international regulation relating to environmental management systems issued by the International Organization for Standardization and can only be obtained by companies that satisfy the below requirements.

<ISO14001 Certification Requirements>
1.The company has an established framework for the sustainable alleviation environmental impact due to the company's activities, products or services
2.The company has an operations framework which improves the framework mentioned in 1. on an ongoing basis

Overhead view of Yokkaichi Plant(Umaokoshi Plant, Kasumigaura Plant)
Yokkaichi Plant(Umaokoshi Plant, Kasumigaura Plant)
Overhead view of Chiba Plant
Chiba Plant

Responsible Care (RC) Activities

KH Neochem proactively engages in initiatives to reduce environmental load, such as reducing flue gas and waste produced by our plants, and conserving energy.

Zero Emissions Activity

In order to reduce environmental load, we take a centralized control approach to waste created by our plants, and sort/recycle waste in order to reduce the amount of landfill as much as possible. We have also established an eco station within our plants as a facility to achieve the centralized management of waste.

Eco station

Social Actions

Activities in communities where our plants are located

We conduct activities with deep local roots in the areas where our plants are located (Yokkaichi City and Ichihara City) every year to cooperate with local communities and society and contribute to their sustainable development. As part of our initiatives, we have gathered participants from across KH Neochem for painting activities as it is closely related to our business operations (manufacturing of paint raw materials), donate benches, and the like to express gratitude to the local community on a daily basis.

Initiatives for children

Children are the future, and KH Neochem is actively supporting children's sports tournaments in order for the children in the communities around our manufacturing plants to flourish. In Yokkaichi City, we sponsor the KH Neochem Cup, a Yokkaichi City U-10 soccer tournament for children aged 10 and younger, and in Ichihara City, we support the KH Neochem Cup, a tournament for Yu-Yu Ball *, a baseball-inspired game originating in Chiba Prefecture.

*Yu-Yu Ball:
To help children appreciate the fun of baseball, children in the lower elementary school and their parents form teams and play a game with a soft ball and a megaphone bat following rules similar to baseball.

Sponsorship of Sports

The company has sponsored short track speed skater Moemi Kikuchi since 2018, and speed skater Rin Kosaka since 2022.
As "a leading global specialty chemical company" that shares the enthusiasm of these athletes to pursue their dreams, we will do our utmost to support both athletes so that they can shine on the world stage.

Clean-up activities

In order to contribute to the local community, KH Neochem holds regular clean-up activities around its business locations ever year. Essentially, we perform these clean-ups independently, but will cooperate with local organizations such as the city council if requested.

Satoyama conservation activities

Woodlands are essential as a source of food and timber. Nevertheless, the shift of people to urban areas has resulted in many woodland areas being neglected and becoming wastelands. As such, KH Neochem participates in woodlands conservation activities together with local citizens.

Local networking (festivals)

Every year, KH Neochem participates in local festivals through running a stall. We aim to reassure the community and gain their trust by directly interacting with the many members of the local region who participate in such events, from young to old.

Road Safety (Seatbelt Campaign)

KH Neochem sponsors the road safety activities organized by the Ichihara Road Safety Association and participates in Seatbelt Campaign, which is run every year by cooperation between the companies on the coastal areas of Ichihara and various organizations. We proactively engage in activities to reduce the number of road accidents.

Disclosure of Environmental Information
(RC Report Preparation)

In order to keep members of the local community and other stakeholders up to date with the efforts KH Neochem is making to reduce environmental load, we issue an annual RC Report. Our aim is to maintain our status as a company trusted by the community.

Integrated Report
RC Report Preparation