"Aiming for 100% material recycling rate by 2030." In September 2021, Sekisui Chemical Co., Ltd. formulated its "Resource Recycling Policy" and strategy with the aim of "realizing a circular economy by 2050."
Since founding the company in 1947 with the aim of comprehensively commercializing plastics, they have strived to create social value through their business activities, but they have now set themselves the goal of stepping up their game even further.
Approximately one year before the formulation of the "Resource Recycling Policy," Pantech was asked to evaluate current related initiatives to lay the groundwork for the policy. The question was: what are the best ways to maximize the recycling of plastic waste among the efforts already being made by the 58 group companies nationwide?
We asked Mr. Toru Yoshida, Section Manager of the ESG Management Promotion Department, to reflect on the consulting services that Pantech was commissioned to provide.
How we came to request consulting services
- -
What challenges have you faced regarding the recycling of plastic waste?
- Mr. Yoshida
To further promote ESG management, we aim to increase the material recycling rate of plastic waste generated from our production bases located throughout Japan.
As a pioneer in "creating infrastructure for housing and society" and "chemical solutions," we at Sekisui Chemical Group have consistently provided our customers with products and services of reliable quality.
In all of our business areas, plastics have always been and will continue to be an important material. Therefore, we have actively promoted efforts to reduce the amount of plastic waste generated in the production process and to reuse scraps and other materials generated during production by returning them to raw materials at each of our production sites. Furthermore, even when it is unavoidable to dispose of plastics as waste, we have implemented disposal methods that utilize them as recycled raw materials, including energy.
However, with the global shift towards green practices progressing, we are receiving an increasing number of requests from our business partners for environmentally conscious measures. Therefore, it was necessary to further advance our environmentally conscious efforts, such as increasing the material recycling rate of plastic waste generated from our production bases scattered throughout the country.
At Sekisui Chemical Group, we place ESG at the heart of our management, and in recent years, we have been selected for four consecutive years since 2018 as one of the world's 100 most sustainable companies, "Global 100" (organized by Corporate Knights, Canada), receiving global recognition. However, there were limits to what we could accomplish on our own. We were looking for a producer who could objectively evaluate our efforts with expert knowledge, provide concrete proposals that were highly feasible towards our goals while incorporating perspectives we hadn't considered, and support us by leveraging the reliable technical skills and services of our proud employees on the ground.
- -
Please tell us about how you first encountered Pantech .
- Mr. Yoshida
It all started when I visited Pantech 's booth at an exhibition held in Tokyo in February 2020, which focused on technologies and services necessary for realizing a circular economy.
While environmental considerations and efforts to address climate change are now a globally recognized principle in corporate management, Pantech's consistent focus on material recycling since its founding in 1996, and its recent foray into product design with recycling in mind and environmentally conscious manufacturing, perfectly matched the image I was looking for. Furthermore, Pantech was a pioneer in promoting the "circular economy," which piqued my interest. Although terms like "circular economy" and Pantech circular economy" have only recently become widely known, they were still quite rare at the time. I was impressed by their forward-thinking approach, and I reached out to them myself.
- -
Please tell us why you chose Pantech .
- Mr. Yoshida
The main reason we chose Pantech is that it has partner companies throughout Japan that handle processing such as recycling raw materials, and it also has numerous sales channels both domestically and internationally. We believe it is one of the few companies that can promote plastic recycling at a high level regardless of location or the type of resin.
Our company has manufacturing bases (factories) located throughout Japan. At our factories, we have been working with local processing plants and other partners to maximize material recycling rates, but we have found it difficult to oversee all our locations and make overall improvements. Therefore, Pantech 's ability to operate without being tied to a specific location by collaborating with partner plastic waste processing plants throughout Japan, and its numerous sales channels for recycled materials both domestically and internationally, were very appealing to us. Furthermore, they have a diverse supply chain that encompasses everything from plastic waste collection operations to pelletization and the manufacturing of recycled products.
I was hoping for a more relaxed, businesslike atmosphere where we could work together as if we'd shared a meal, always considering each other's needs, so the fact that we were on the same wavelength in that regard was another important reason. Through conversations with Managing Director Kuroki and everyone at Pantech , I felt their 26 years of accumulated experience and extensive knowledge, as well as a venture-like atmosphere that suggested they would genuinely engage with our company's environmentally conscious initiatives, and I felt that they were a trustworthy company.
About consulting
- -
Please tell us the details of your order.
- Mr. Yoshida
We received consulting services on four themes: the conversion of plastic waste into valuable materials and recycled raw materials, a review of the selling price of plastic waste, the establishment of a circular product development scheme, and the reduction of processing costs related to industrial waste and thermal recycling.
First, we shared data on plastic waste from all our domestic factories, collected using our internal system, with Pantech . Based on the item name, quantity, and processing method, we selected factories with high plastic waste generation volumes and arranged for Pantech to conduct site visits. During the visits, they carefully examined each item, from the actual waste generated to the production process and storage area, and interviewed on-site staff about the operations. The process then involved evaluating the potential of plastic waste for valuable purposes and recycling, reviewing the selling price of plastic waste, establishing a circular product development scheme, and reducing processing costs related to industrial waste and thermal recycling. Finally, they compiled their evaluation into a report and presented it at a reporting meeting.
As a result, even with our proactive efforts to date, we found that there is still room for improvement in reducing the total amount of plastic generated from our factory by 15%. Through Pantech and its network of partner factories nationwide, we were advised that by coordinating changes in partners, the introduction of new machinery, and improvements in transportation efficiency through waste sorting and crushing, we could expect to see increases in material recycling rates, selling prices, and reductions in processing costs.
- -
What did you think of the consulting service?
- Mr. Yoshida
We are pleased that, after carefully examining the challenges facing the Sekisui Chemical Group as a whole and each of our production sites, we received highly feasible proposals, as well as a closed-loop solution that looks ahead to the future.
During the factory tour, they carefully examined each piece of plastic waste, comparing it with data, and selected items with room for improvement toward resource recycling. They also meticulously calculated an action plan and estimated annual reductions in processing costs. We were grateful that they used their professional eye to identify "future valuable materials" that could be recycled if the management methods for the target items were changed.
I understand from your company that it is difficult to process certain plastics as recycled raw materials within Japan, but Pantech has a wide network, so we can expect diverse developments.
We will continue to keep in mind that when collecting plastic waste, it is necessary to improve transportation efficiency by removing foreign objects such as paper and stickers, separating by resin type, and compressing and packaging the waste.
Furthermore, we have come to understand once again that a closed-loop approach in which we recycle the plastic waste we generate externally and incorporate it as part of the raw materials into our products is also important from the perspective of resource recycling, so we would like to start implementing this wherever possible.
Achieving a 100% material recycling rate will involve a significant shift in the methods we've been using, and I believe it will be a painful process. That's why, first and foremost, I want you to experience the appeal and potential of our factories and other facilities that drive our reliable technology and services. On top of that, I want this to be an initiative that we ourselves can continue with pride, finding joy that outweighs the pain of the transformation. We tend to have preconceived notions based on past experience, thinking that we might need additional resources or capital even when it's actually possible to achieve the desired results without them, but I hope you will work patiently with us.
Future business development
- -
Please let us know if there's anything you expect from Pantech in the future.
- Mr. Yoshida
We hope you will put your proposals into action and continue to work alongside us as an external partner towards achieving a 100% material recycling rate by 2030.
We have received valuable insights into effective management methods for recycling the plastic waste system we have been using, and we are currently working on modifying the system.
Through my conversations with everyone at Pantech , I learned for the first time about the dramatic changes in the world, such as how recycled materials made from plastic waste are becoming increasingly difficult to obtain, stemming from our own experiences with one initiative. I would like Pantech to actively share with us the latest trends and insights they gain from their daily work in the recycling industry. I believe that by having our employees stay informed about the latest situation and exchanging opinions within the company, our own environmental awareness will deepen.
This time, Pantech provided consulting services to the Sekisui Chemical Group, and we were able to clearly see who the people at Pantech are and what their motivations are. While it is possible to set goals for resource recycling within a company, it is not possible to achieve those goals alone. Sekisui Chemical Co., Ltd. and Pantech are both companies that have taken pride in creating social value. There are many challenges to achieving a 100% material recycling rate by 2030, but we would like to co-create solutions by combining our respective strengths. And let's lead Japan's circular economy by communicating our results externally. We look forward to continuing our collaboration.
