AGC (5201) ESG Update summary

Business and Corporate Overview

• Operates in over 30 countries with a diversified portfolio in glass, electronics, chemicals, life sciences, and ceramics, generating net sales of ¥2,067.6 billion and employing 53,700 people as of FY2024.

• Major business segments include Chemicals, Architectural Glass, Automotive, Electronics, Ceramics, and Life Science, with glass-related business accounting for about 45% of sales.

• Maintains a strong regional presence in Japan & Asia, Europe, and the Americas.

Value Creation Model and Sustainability

• Pursues a value creation model connecting external changes and long-term social issues to its purpose, integrating sustainability and innovation.

• Focuses on three social values: Blue planet (sustainability), Innovation (future society), and Well-being (safe, secure living), guided by 10 key long-term social issues.

• Targets net zero carbon emissions by 2050, with a 30% reduction in Scope 1+2 GHG emissions by 2030 and significant investments in climate change measures.

• Invests in unique materials and solutions to address social issues, leveraging robust technology platforms.

• Proactively addresses PFAS regulations and sustainability KPIs, including GHG emissions and employee engagement.

Intellectual Capital and R&D Strategy

• R&D is central, with the Business and Technology Outlook (BTOL) identifying seven key technology fields and 21 focus areas for future growth.

• Develops advanced products such as heat-insulating glass, building-integrated photovoltaics, and high-performance materials for semiconductors, contributing to global CO2 reduction.

• Utilizes digital twins, AI, and AR/VR to optimize manufacturing, sales, and material development.

• Intellectual capital built on 115+ years of core technologies in glass, ceramics, organics, and polymers, with increasing patent applications and licensing revenue.

• Pursues sustainability management, digital transformation, and open innovation, including electric boosters for glass furnaces and recycling to achieve carbon neutrality.