The Bando Group, since its foundation in 1906, has connected various goods and services through its business, supported a wide range of industries and peoples' lives, and contributed to the development of society. Now, we have developed a new long-term vision (Vision 2050)
“Best Partner, supporting people and society, connecting the present and future.”The Group continues to lead the way toward a more sustainable society for 2050 as the best partner of people and society by sustainably providing products and services that are considerate of people's lives and the environment as well as solve social issues.

Aim to increase sustainable corporate value by placing sustainability initiatives at the core of our management issues

When I became President in April last year, I had a thorough discussion with the management about the direction the Group should aim at in the long term. Through repeated discussions, we were able to confirm that, over the past 100 years, the Group has overcome transition times by repeating the transformation of its business domains and main products. We also confirmed that the Group has consistently played a role of “connecting” and “supporting” industries and people and created value in our own distinctive way. So, we have renewed our determination to connect the Group's distinctive value creation to industrial innovation and realize sustainable growth in the future society. This determination is embodied in the aforementioned new long-term vision (“Vision 2050”), based on which the new mid-to-long term management plan “Creating New Value for the Future” was developed using a backcasting approach.

In addition, as the business environment continues to change drastically, we have systematized our Mission/Vision/Value in order to return to our management philosophy once again and work together as the Group to realize Vision 2050.

Under the mid-term management plan “Creating New Value for the Future 1st stage” (“CV-1”) covering the period from FY2023 to FY2026, we will promote sustainability initiatives as one of the core management issues and focus on the three guidelines of “Creation of value (joint creation × new businesses × core businesses),” “Creation of smart manufacturing,” and “Evolution of organizational capabilities for the future” with the aim of increasing the Group’s sustainable corporate value.

Focus points of three guidelines in “CV-1”

Under Guideline 1, “Creation of value (joint creation × new businesses × core businesses),” we will accelerate the “management on two wheels,” an initiative in the previous mid-term business plan, on a global basis to build an optimal business portfolio. Specifically, we will further strengthen joint creation with external parties, promote joint creation in new businesses and core business areas, and work to create new values. We will also focus on transforming our business portfolio by growing new businesses. In our core businesses, we will expand investments in growing and untapped markets to maximize cash generation.

Under Guideline 2, “Creation of smart manufacturing,” we will create competitive quality and productivity by combining our on-site capabilities that the Group has accumulated over the years and digitalization. We aim to build the foundation of manufacturing to realize the “Bando Dream Factory” that is eco- and people-friendly by 2030. As a preparatory step, we will focus on developing all employees into safety professionals and ensuring the safety of our facilities in order to build a workplace where employees can demonstrate their abilities in a safe and secure manner. We will also focus on shifting to renewable energy and reducing emissions of environmentally hazardous substances toward the achievement of carbon neutrality. In addition, we aim to build autonomous production lines that does not rely on people by utilizing digital technology as a means of efficiently promoting safe, secure, and eco-friendly manufacturing. Through these initiatives, we will promote “Creation of smart manufacturing” that takes into account carbon neutrality to create high quality and earning power.

In Guideline 3, “Evolution of organizational capabilities for the future,” we will closely align our priority measures with “Sustainability activity themes” in material issues to promote our sustainability activities as a growth strategy in CV-1. Specifically, we will work to expand sales and improve operational efficiency in order to rebuild global organizational governance. In addition, through job satisfaction reforms aimed at improving employee engagement, we aim to create an attractive organization that attracts human resources. And we will squarely address climate risks, accelerate the development and sales expansion of products that contribute to a decarbonized society and energy saving, as well as promote innovation in manufacturing, with the aim of contributing to the development of society.

Through these initiatives, I hope that all employees will feel how the Group's products and services are in harmony with society and the environment, solving issues, and contributing to a society that is considerate of peoples' lives and the global environment. To that end, I myself intend to visit sites as much as possible and have deep conversations with employees and other stakeholders to increase the Group’s corporate value and achieve its sustainable growth.

“Sustainability Activity Themes”

Fiscal 2022 and current initiatives
In fiscal 2022, the fifth year under the “CSR promotion themes,” some progress was made in each theme. We changed the name to “Sustainability activity themes” at the start of the new mid-term management plan.

[Products and services]
We proceeded with efforts toward mass production in the innovative production line of industrial toothed rubber belts in Wakayama Plant. In our efforts to expand “Environmentally-Friendly Products (based on our own standards),” we certified accessory drive power transmission belts for automobiles that reduce waste loss generated in the production process and optical clear adhesive sheets that reduce harmful substances as “Environmentally-Friendly Products” in fiscal 2022. However, the ratio of “Environmentally-Friendly Products” in new products launched in fiscal 2022 was 15%, falling short of the target of “50%.”

[The Environment]
We have introduced solar power generation systems to achieve our target to reduce CO₂emissions from fuel usage and electricity by 38% compared to fiscal 2013 by 2030 (on a non-consolidated basis). We expect to reduce CO₂ emissions by approximately 478 tons per year through the new installation in an Indian subsidiary and the expansion in Wakayama Plant. We have also completed the switching to LED lighting at our head office and proceeded with preparations for disclosure in line with the TCFD. In terms of biodiversity initiatives, which will become increasingly important in the future, we will expand activities at each site, such as the cultivation of Thoroughwort at Kakogawa Plant and the organic farming experience for protection of the ecosystem of “Satoyama (undeveloped woodland near populated area)” in new employee training.

[Labor/Safety]
The Group has always prioritized the safety of employees above all else and has conducted thorough risk forecast and education on compliance with rules. Unfortunately, however, two serious accidents occurred in 2021, and therefore, we are focusing on activities to further raise safety awareness among all Group employees. Specifically, I personally visit sites where accidents occurred for safety awareness activities, and we also continue to conduct high-frequency and high-level risk assessments. In addition, as part of our risk forecast activities, we introduced a system to listen to the voices of on-site workers, and in order to further raise individual safety awareness, we distribute “Basic Action Cards (Safety Pledge)” to all employees and read them aloud before work every day to instill the habit of ensuring basic actions. We will never compromise on safety initiatives and will continue to focus on them as our top management priority.
In terms of investment in human capital, we resumed many of our group training programs as the COVID-19 started subsiding and also expanded educational programs. As a result, annual training hours per person and the number of participants are increasing. We will continue to focus on employee-related measures as an important management issue by closely aligning them with the priority policy in CV-1 of “improving engagement.”

[Compliance/Human rights]
In fiscal 2022, we conducted supplier assessments in Japan and overseas as in the previous fiscal year and developed the Group's human rights policy on April 1, bearing in mind that the human rights awareness is growing worldwide.

[Stakeholder communication]
At the Bando Kobe Science Museum for which we acquired the naming rights, its exhibition room was renovated, and we participated in “Port Island Science Festival” and gave a demonstration using C-STRETCHTM. We also made donations to local food banks through the food drive activities at several sites, including Kakogawa Plant. Our overseas efforts include donations to relief funds for the earthquake in southern Turkey and donations by our German subsidiary to orphan support organizations. We are engaged in community-based initiatives in Japan and overseas.

The Group will continue to pursue sustainability in harmony with society and the environment and improve sustainable corporate value.

We appreciate continued understanding and support from our stakeholders.

August 2023

President and Representative Director,
Bando Chemical Industries, Ltd.

Tomio Ueno