High hopes for leveraging individuality in developing new fields
This is my seventh year as an external director, and during that time our company has achieved groundbreaking growth, not only in terms of finances, but also in many other areas. I would like to commend the management team and all employees for their efforts in overcoming various challenges and difficulties.
Our company is characterized by an extremely wide range of business domains, from Commodity fields such as petrochemicals to Specialty fields like bioscience. Naturally, the management team’s understanding and management of these many independent businesses is more important than ever before. The promotion of dual management of commodities and specialties requires each of the various business units to secure their own product lines and independence while expanding communication across the organization and between employees. The market environment is tough and there are always competitors. However, we have a large number of products and we believe that combining them allows us to leverage our individuality in developing new fields of business.
In 2020, the number of external directors was increased from two to four. The increase in the diversity of their backgrounds and experiences has led to more open and active discussions and heightened the effectiveness of the board of directors. In particular, the appointment of Tosoh’s first female external director has resulted in more proposals from new perspectives, thereby deepening the discussions.
I will continue to capitalize on my past experience in support of the company’s further growth.
Tsutomu Abe
External Director
Continue changing and don’t rest on past successes
After my first year as an external director, I was surprised by the number of issues discussed at our company's board meetings and the breadth of the business domains on which they are based.
I feel that the board of directors is well aware of our business portfolio strategy, which hinges on the balance between the energy-intensive Commodity fields that support our current earnings and the Specialty fields such as bioscience, where high added value is our competitive edge. A diversified chemical manufacturer like Tosoh is always questioned about the state of the company as a whole, and I was frankly impressed by the sense of pride and stability of the company's good management from that perspective. I was also impressed by the well-balanced discussions on health and safety at the company’s manufacturing complexes, medium- to long-term R&D policies, business reform with an awareness of changes in the global environment, and human resource development.
Over the past ten years, our business situation and financial structure have improved dramatically. Perhaps because of this, each of our business units seems to be brimming with confidence. That is why I dare to suggest that it is important not to simply accept the status quo. As the environment surrounding our company changes rapidly, we believe it is important for the management team to constantly ask themselves, "What is the purpose of our company and what kind of contribution does the world expect from us?”
Each of the external directors has a different background. Based on the discussions at the Management Reporting Meeting, it would be my hope that the external directors can contribute to the betterment of our company's management by making proposals from their personal perspectives.
Yoshihiro Hombo
External Director
Strengthen R&D, the driving force behind new business creation
In the fiscal 2020 Tosoh Report, I mentioned that our management team emphasizes R&D and is fully cognizant of the importance of nurturing technology. Our laboratories are collaborating efficiently with outside parties and steadily accumulating technologies in the three priority fields of electronic materials, life science, and environment and energy. In fact, with the COVID-19 pandemic, we have been developing and launching reagents in response to the spread of infection. Looking at it this way, you could say that our potential for growth is quite attractive. I expect this to be the driving force behind the creation of new businesses in the future.
Recently, Tosoh’s board of directors decided to construct a new research building and customer support building at the Tokyo Research Center to accelerate future business expansion and technology development in Specialty fields. Research laboratories play a vital role in expanding business in the Specialty sector as much as or more than in the Commodity sector. As such, I believe it is appropriate to invest in the right management to create an environment conducive to achieving our R&D goals. The consensus of the board of directors is that they would like to see a continued explanation of the direction in which R&D will be strengthened by the new facilities.
Since there are many cases of intermittent growth in Specialty fields, we must have a strong financial structure and flexibly make decisions to respond to rapid changes. This will enable us to invest and execute M&As without missing opportunities. As an external director with a background in technology, I will provide advice that emphasizes these points and contributes to the enhancement of corporate value.
Keiichi Miura
External Director
Prioritize CSR issues such as decarbonization and the advancement of women
At the board of directors meetings, not only were materials distributed in advance and carefully explained, but we were also made fully aware of the annual schedule and agenda.
For chemical manufacturers, environmental issues such as the realization of a decarbonized society and the plastic waste problem are very difficult topics. We have been implementing measures from a medium- to long-term perspective for some time now, with these activities having achieved some success. Given the recent increase in extreme weather events, however, I think we need to step up our efforts. In the organizational revision in June 2021, the CO2 Reduction and Effective Use Strategy team was newly established under the CO2 Reduction and Effective Use Promotion Committee. Task forces have also been set up at the Nanyo and Yokkaichi Complexes. We are investing in energy conservation more aggressively than initially planned, and are prioritizing technological development and investing funds. We will continue to take on even more difficult challenges, including various reviews for the new medium-term management plan starting in fiscal 2022, for which I would like to provide continuous support.
With regard to the advancement of women, Tosoh has enhanced its human resource system in recent years leading to an increase in the number of women hired. On the other hand, I think that there is still room for improvement in terms of application and awareness in the workplace. We believe that a workplace where female employees play an active role is a good environment for all employees regardless of gender. I would like to do my small part to support the realization of such a workplace environment by interacting with employees.
Mariko Hidaka
External Director