Interview with the President | Sumitomo Bakelite Co., Ltd.

Contributing to abundant living for everyone and a sustainable society through functional plastics

Our Company is working to contribute to a sustainable society through a wide variety of functional plastic products.
We met for an interview on our Company’s efforts with Yukiko Motomura, an Editorial Board Member of The Mainichi Newspapers with deep knowledge of environmental issues who heads the news organization’s Science and Environment News Department.

Interview

Pursuing the potential of plastic without taking our eyes off environmental problems

Motomura	Your Company has a long history as a “pioneer in plastics.” Tell us about the approach you take toward your current business operations.
Fujiwara	We originated as the first company in Japan to manufacture plastics, and we have conducted R&D of the diverse potential of plastics in an effort to create products with value. More than 100 years have passed since plastic manufacturing began in Japan, and it has developed into a material that is essential to every industry. Working with a material that makes such a large contribution to society is accompanied by great responsibility. In doing so, we place great importance on the precepts of our business philosophy: “Our Company places prime importance on trust and sureness, and shall commit itself to contributing to the progress of society and enhancement of people’s welfare and livelihood through its business activities.” That is, we think it is very important to continue business activities with a view to contributing, through plastics, to the development of society and abundant living for everyone.
Motomura	You handle a diverse range of products. Has this emerged in response to the needs and requirements of your customers?
Fujiwara	That’s exactly right. As a manufacturer of the functional chemical products giving plastics the necessary functionality, we have been moving forward with research and development of plastic processing technologies in consideration of our customers’ needs and requirements, and offering those products to the world. They are in widespread use, from familiar applications to those that do not meet people’s eyes, including telecommunications devices such as smartphones and PCs, household electronics, transport systems such as automobiles, railways and aircraft, as well as in the fields of food products and healthcare. As the times and technologies advance and lifestyle convenience and values change, we place due importance on flexibility, creating new things from time to time as the need arises.

Motomura	In a word, plastics are extremely broad in scope.
Fujiwara	Yes, Ms. Motomura. Without even being aware of it, you yourself might pick up one of our products. For example, do you know of our P-Plus product used in packaging of fruits and vegetables? It is used in places such as supermarkets and convenience stores. We developed it to help fresh fruits and vegetables keep longer so they are fresh when eaten. Each package has invisible holes in it of about 100μ to preserve freshness. The number and size of the holes are varied according to how a given fruit or vegetable breathes.
Motomura	I’m surprised that it has such ingenuity designed into it. Plastic products like these are definitely essential to the abundance in our lives. At the same time, I believe plastic is associated with issues such an environmental problems.

Fujiwara	That’s exactly right, so while pursuing convenience, we also respond to the environment. A certain kind of gap does exist there, and in aiming to achieve a sustainable society, we cannot avert our eyes from the environmental problems that surround plastics. The key to a solution lies in the technological and R&D capabilities that are among our Company’s strengths. With regard to the problem of plastic waste, for instance, we are working to reduce plastic waste through daily management of the raw materials we use and the plastic products we manufacture, by advancing their recycling, and moreover by considering life cycle assessments (LCA) from the product development stage. From the standpoint of recycling, we have been moving forward with development of plastics that include biomass-derived materials to reduce environmental impact even when discarded, as well as mono-material films for packaging conducive to recycling. We have also been helping to reduce the volume of waste itself with thinner plastic films. Moreover, from a circular-economy standpoint, at our Shizuoka Plant we have established an innovative technology that can turn cured phenolic resins back into phenolic resins through a recycling system using supercritical fluid technology.
Motomura	The prevailing popular tendency to simply equate plastics with environmental harm is a fact. However, if we aim for a life without plastics by, for example, switching drink containers from PET bottles to glass bottles, the added weight results in increased CO₂ emissions volume during transport. That’s the other side of things of which I think it can be difficult to gain the understanding of consumers. We in the news media have our role to play, but I’m glad that a company like your Company that provides materials is getting the word out as well.

Fujiwara

That’s exactly right, so while pursuing convenience, we also respond to the environment. A certain kind of gap does exist there, and in aiming to achieve a sustainable society, we cannot avert our eyes from the environmental problems that surround plastics. The key to a solution lies in the technological and R&D capabilities that are among our Company’s strengths. With regard to the problem of plastic waste, for instance, we are working to reduce plastic waste through daily management of the raw materials we use and the plastic products we manufacture, by advancing their recycling, and moreover by considering life cycle assessments (LCA) from the product development stage. From the standpoint of recycling, we have been moving forward with development of plastics that include biomass-derived materials to reduce environmental impact even when discarded, as well as mono-material films for packaging conducive to recycling. We have also been helping to reduce the volume of waste itself with thinner plastic films. Moreover, from a circular-economy standpoint, at our Shizuoka Plant we have established an innovative technology that can turn cured phenolic resins back into phenolic resins through a recycling system using supercritical fluid technology.

Motomura

The prevailing popular tendency to simply equate plastics with environmental harm is a fact. However, if we aim for a life without plastics by, for example, switching drink containers from PET bottles to glass bottles, the added weight results in increased CO₂ emissions volume during transport. That’s the other side of things of which I think it can be difficult to gain the understanding of consumers. We in the news media have our role to play, but I’m glad that a company like your Company that provides materials is getting the word out as well.

Accelerating efforts to contribute to SDGs and realize a decarbonized society

Motomura	I’d also like to ask you about SDGs. Your Company has changed its priority areas for imperative efforts from 5+1 to 6+1. Tell us about the background to the change.
Fujiwara	Until fiscal 2020, our Company had established 5+1 of the 17 SDGs as priority areas to address through our efforts. These five consisted of Goals 3 “GOOD HEALTH AND WELL-BEING”, 7 “AFFORDABLE AND CLEAN ENERGY", 8 “DECENT WORK AND ECONOMIC GROWTH”, 9 “INDUSTRIAL INNOVATION AND INFRASTRUCTURE”, and 12 “RESPONSIBLE CONSUMPTION AND PRODUCTION”, to which we added Goal 14 “LIFE BELOW WATER”. In April of 2021, we added to these Goal 13 “CLIMATE ACTION” for 6+1 priority areas. In recent years, many of our customer companies have been undertaking Goal 13 “CLIMATE ACTION”, and the possibility of being left behind if unable to keep up with this worldwide movement has given rise to a sense of crisis. In addition, the government has issued a declaration on its aim of achieving a decarbonized society by 2050. I thought that, as a company that handles plastics, it is incumbent upon us to present concrete measures for what we must do toward achieving that goal, and to take action. Amid these background circumstances, we also expressed our support in February of this year for the TCFD recommendations.
Motomura	I think CO₂ reduction is an issue for every industry. I’ve heard that there has been a broad revision of the goals for 2030 that were established in 2018. Can you give us the details?

Fujiwara	We made the revisions in response to the government’s “2050 Carbon Neutral Declaration.” In addition to the energy conservation activities and process efficiency reforms that our Company has long engaged in, we have also formed an internal cross- sectional organizational body to implement phased CO₂ reductions. We determined, however, that taking on the challenge of zero emissions would require a greater acceleration of efforts than is currently underway. We therefore formulated our “Environmental Vision for 2050 (net zero)” ending in 2050. Subsequently, the government has established its goal for 2030 as a milestone. We are therefore aiming for the government’s specified goal of a 46% reduction in CO₂ (compared to fiscal 2013) by 2030 as a must.

Fujiwara

We made the revisions in response to the government’s “2050 Carbon Neutral Declaration.” In addition to the energy conservation activities and process efficiency reforms that our Company has long engaged in, we have also formed an internal cross- sectional organizational body to implement phased CO₂ reductions. We determined, however, that taking on the challenge of zero emissions would require a greater acceleration of efforts than is currently underway. We therefore formulated our “Environmental Vision for 2050 (net zero)” ending in 2050. Subsequently, the government has established its goal for 2030 as a milestone. We are therefore aiming for the government’s specified goal of a 46% reduction in CO₂ (compared to fiscal 2013) by 2030 as a must.

Motomura	What do you think will be the key point in reducing CO₂?
Fujiwara	I think it’s electric power. In this effort, we will have to start by getting a handle on the electric power situation of each country, then increase the ratios of renewable energy. Rather than solar power alone, there are a variety of candidates for this, such as hydrogen, biomass and CO₂ adsorption technologies. I would like to scrutinize the state of advancement of each technology, then consider technological applications that are appropriate to a given region or plant. I think that crucial factors in working toward our “Environmental Vision for 2050 (net zero)” will include product development that is mindful of lifecycle CO₂ reduction, as well as cooperation with our supply chains.

Motomura

What do you think will be the key point in reducing CO₂?

Fujiwara

I think it’s electric power. In this effort, we will have to start by getting a handle on the electric power situation of each country, then increase the ratios of renewable energy. Rather than solar power alone, there are a variety of candidates for this, such as hydrogen, biomass and CO₂ adsorption technologies. I would like to scrutinize the state of advancement of each technology, then consider technological applications that are appropriate to a given region or plant. I think that crucial factors in working toward our “Environmental Vision for 2050 (net zero)” will include product development that is mindful of lifecycle CO₂ reduction, as well as cooperation with our supply chains.

Improving the “human ability” of employees to become a company that makes your dreams for the future a reality

Motomura	I think that for a materials manufacturer, R&D is a lifeline. What do you focus on and put into practice in acquiring and developing human resources?
Fujiwara	Our R&D costs represent about 5% of revenue, which is a relatively high ratio for a materials manufacturer. Since human resources development is more important to a company than anything else, we tell our employees to undertake efforts without fear of failure.
Motomura	Those are promising words.
Fujiwara	Innovation will not emerge unless we take on challenges. I myself come from an R&D background, and have accomplished things after piling up many failures. As part of that message, I have designated “improving human ability” our Company’s internal watchword for this year. “Human ability“ is the cumulative effect obtained from multiplying motivation, capability, personality and character together. Diligent training is essential to achieving this improvement. While day-to-day OJT and self-training are a matter of course, I want for us to improve every category of our human ability so that we can be the kind of company in which employees are given many opportunities, enabling each and every one of us to speak to customers about aspirations and value.

President and Representative Director

Kazuhiko Fujiwara

Joined the Company in 1980.
Became Team Leader of the Biotechnology- related Product Development Project in 2003, Department Manager of S-Bio Development Department in 2007, General Manager of S-Bio Business Division and Executive Officer in 2009, Managing Executive Officer in 2013, Director and Managing Executive Officer in 2014, Director and Senior Managing Executive Officer in 2016, and President and Representative Director in 2018.

Motomura	At the same time, it seems the impact of COVID-19 will remain with us for some time. What kind of impact have changes in work styles due to the COVID-19 pandemic had on your Company and all of its employees?
Fujiwara	In terms of our actual work, while we have switched those things that could be substituted for online, the change in environment may have caused the burden on our employees to increase. While we give the highest consideration to our employees’ health and mental care, I think it is very important to flexibly maintain a comfortable work environment that is responsive to circumstances at any given time. At the same time, some work arrangements have emerged that could only be possible online. I think that these may provide opportunities to lighten the load, depending on how they are understood. Online meetings enable us to connect worldwide locations, and the fact that we can efficiently and seamlessly connect with customers is a major factor for our Company, which emphasizes customer service.

Motomura

At the same time, it seems the impact of COVID-19 will remain with us for some time. What kind of impact have changes in work styles due to the COVID-19 pandemic had on your Company and all of its employees?

Fujiwara

In terms of our actual work, while we have switched those things that could be substituted for online, the change in environment may have caused the burden on our employees to increase. While we give the highest consideration to our employees’ health and mental care, I think it is very important to flexibly maintain a comfortable work environment that is responsive to circumstances at any given time. At the same time, some work arrangements have emerged that could only be possible online. I think that these may provide opportunities to lighten the load, depending on how they are understood. Online meetings enable us to connect worldwide locations, and the fact that we can efficiently and seamlessly connect with customers is a major factor for our Company, which emphasizes customer service.

Motomura	How about promotion of diversity?
Fujiwara	The abilities of our employees bear no relation to gender. Rather, I think it is critical that we create an environment in which each and every person can fully exercise their individuality. Our female employees do have maternity leave, however. I think we need to give some consideration to this, since we cannot allow it to pose a handicap. In fact, the number of women managers at our Company in fiscal 2020 was double that of fiscal 2014. The goal here is not merely to boost the numbers. I think it shows how we have cultivated an arena in which we maintain an environment conducive to women fully exercising their capabilities, and in which evaluations are unrelated to gender differences.
Motomura	We’ve come to hear the term “degrowth” lately in society. I think a corporation is something that is run on the assumption of growth. What are your thoughts on this?

Fujiwara	For a manager commissioned by shareholders to increase corporate value, degrowth is a difficult topic. At present, I have not arrived at any thought of rejecting growth. However, I do think that it is extremely crucial for us to thoroughly engage in management that avoids an obsession with profit, and is mindful of our contribution to society, of diversity and of environmental considerations, such that all of our shareholders and investors choose us.
Motomura	Through today’s interview, I think I’ve been able to glimpse not only the role that plastics play in our lives and society, but also something of the thinking of your Company. In closing, could you tell us about the future your Company looks to amid the uncertainties that the COVID-19 pandemic has cast on times to come?
Fujiwara	It is required of any company that does business globally to look beyond mere economic value such as sales and profit, and to contribute through its business operations to the realization of a sustainable society. We aim to become “a company that makes your dreams for the future a reality” by meeting the expectations of our stakeholders, expanding the potential of plastics, and creating value for our clients. I think our mission is first to open the way to a society abounding in people with smiling faces.

The Mainichi Newspapers Deputy Chief Editorial Writer

Yukiko Motomura

Assigned to the Science and Environment News Department since 2001, serving in positions including Department Manager before her current position. Received the first Science Journalist Award in 2006 for her work with the news crew for the Rikei Hakusho series. Authored several books on science and technology themes, based on her knowledge cultivated through reporting and other work, including Kagaku no Mikata and Ki ni Naru Kagaku. Active in a broad range of digital and TV media in addition to newspaper work.