SEKISUI CHEMICAL GROUP Tokyo Green Industry Conference 2011 The Activities of the Sekisui Chemical Group and the Keidanren Naotake Okubo, SEKISUI CHEMICAL CO., LTD, Director & Executive Advisor Chairman of the Keidanren Committee on Nature Conservation

SEKISUI CHEMICAL GROUP The Activities of the Sekisui Chemical Group

SEKISUI CHEMICAL GROUP 2 Sekisui Chemical Group Environmental Management [1] 2 Balanced Approach to the Ecology & the Economy 1. Minimization of environmental impacts in all business activities 2. Development of products that contribute to the environment 3. Environmental improvement through CSR activities 【長期目標】 Achievement of "Carbon Minus"Preservation of Biodiversity 2030 Vision

SEKISUI CHEMICAL GROUP 3 Sekisui Chemical Group Environmental Management [2] Toward Achievement of "Carbon Minus" Toward Preservation of Biodiversity ・ Expand Environment-Contributing Products ・ Efficient Use of Energy (ECO-JIT) ・ Raise Employee Consciousness (Environmental Education) ・ Use of Renewable Energy ・ Development of Low Carbon Raw Materials (Bioplastic Raw Materials) Current Year 2030 ・ Technology Developed Based on "Innovations Inspired by Nature" ・ Biomimicry ・ Reduce Impact/Load on Ecosystem ① Related to Soil, Water Use ② Consideration of the Ecosystem In Utilization of Raw Materials Achievement of "Carbon Minus" Biodiversity Preservation

SEKISUI CHEMICAL GROUP 4 Environmental Contribution via Products ◇ From Environmental Consideration to Environmental Contribution ● Pipe Renewal System ● Houses with solar energy generation systems ● Sound Insulation/Solar Control Interlayer Film ＜ Main Environment- Contributing Products ＞ Low risk of impacting the environment in the areas of environmental pollution, safety and quality Sekisui's Business Activities Society ・ Customers High Low Conventional Environment- Friendly Products Environment- Contributing Products Definition of Environment-Contributing Products Necessary Conditions Environmental Contribution Level

SEKISUI CHEMICAL GROUP 5 Environment-Contributing Products ： CO2 Reduction Heat pump water heaters Solar energy Generation s systems High thermal insulation/ High airtight building performanc e Ohisama Heim

SEKISUI CHEMICAL GROUP 6 What is the "Achievement of Carbon Minus"? ● Estimate of the possible CO2 reduction by Sekisui Heim ・ Per single detached house: approx 3.5 tons/year ( Conventional House: approx 4.0 tons/year (Sekisui Heim: approx 0.5 tons) Sekisui estimate assumptions: Tokyo Metropolitan weather conditions, 120m 2 model plan ・ In the case that all the detached homes in Japan (Approximately 28,500,00 units) are replaced, Approximately 100 million tons/year (Japan's total CO2 emissions are approximately 1.2 billion tons/year)

SEKISUI CHEMICAL GROUP Activities of the Keidanren

SEKISUI CHEMICAL GROUP 8 Policy to Cultivate Industries that Contribute to Green Industry, Energy Saving and the Environment. ●Measures to strengthen Environmental/Energy Technologies are of the highest importance ・ Expand Current Technology ・ Develop New Technology Achieve Ecology & Economy ●Develop a structure that takes consideration of both the supply & demand aspects/Promote the environmental policy ・ Supply Side (Company) By using technological ability, offer "Products friendly to the environment" (Demand Side) (Consumer) Aggressively buy and use "Products friendly to the environment" Contribute to the sustainable development and expansion of various countries