Long-Term Management StrategyVision 2030

In February 2021, we announced a new long-term management strategy, Vision 2030. Our goals under this strategy are to contribute to the realization of a sustainable society and achieve continuous growth and evolution as an excellent company by providing unique materials and solutions. We aim to realize this through sustainability management and business portfolio transformation, leading to the continuous creation of social and economic value.

Vision 2030

Q1. What are your financial targets under the Vision 2030 long-term management strategy?
A1. We have set the following targets as a framework for our efforts to create economic value.

We formulated Vision 2030 in February 2021. Our original goals under this vision were to break our operating profit record of 229.2 billion yen, which we set in 2010, by 2030, and to maintain ROE consistently at 10% or higher. However, our operating profit in 2021 exceeded the initial forecast of 100 billion yen and reached 206.2 billion yen. We therefore revised our targets as shown below.

Q2. What non-financial goals are included in Vision 2030?
A2. We will create the five types of social value through business activities that contribute to the solution of social issues.

The Company anticipates future changes in social issues and identifies material issues that could become major opportunities or risks over the long term. We have also clarified the social and economic value that we aim to create while advancing Group management and business activities along this path.

Solutions for five social issues

Solutions for five social issues
Q3. Please outline your policies on business portfolio transformation as the cornerstone of your strategy.
A3. We will develop an “ambidextrous” approach to management based on the deepening of core businesses and the further exploration of strategic business areas.

We will practice “ambidextrous” management by deepening core businesses and exploring strategic businesses, leading to the development of a business portfolio that combines resilience to market fluctuations with high asset efficiency, growth potential, and carbon efficiency.

Based on this policy, we will continue to invest intensively in the strategic business areas of Electronics, Life Science, and Mobility, where high growth is expected, as well as in the chlor-alkali business in Southeast Asia, and the fluorochemicals & specialty businesses. In the three glass-related business areas (architectural glass, automotive glass, and displays), we will continue to implement measures to improve asset efficiency and increase the ratio of high-value-added products.

“Ambidextrous” management in the AGC Group

“Ambidextrous” Management in the AGC Group

Through these initiatives, we aim to create a stable, long-term revenue base in core business areas, while continuing to achieve high growth in our strategic business areas. By 2030, we aim to achieve company-wide operating profit of 300 billion yen, with strategic businesses accounting for the majority of that amount.

Breakdown of operating profit (billion yen)

Q4. What are your policies on addressing climate change as part of sustainability management?
A4. We aim to achieve net-zero carbon emissions from our business operations, while also contributing to the achievement of social net-zero emissions by society.

As a midway point on its path to achieving net-zero carbon emissions by 2050, the AGC Group has set 2030 milestone targets calling for the reduction of greenhouse gas emissions by 30% and greenhouse gas emissions per unit of sales by 50% (both compared with 2019 levels).

As an industry leader, AGC is working to reduce GHG emissions from manufacturing processes by introducing the world’s most energy-efficient glass manufacturing technologies. While progressively and systematically implementing existing technologies, such as oxygen combustion systems and electrical boosters, we are also developing innovative technologies that will have a major impact on the future.

We are further expanding our contributions to the prevention of global warming through our products and technologies. In both core and strategic business areas, AGC has drawn up strategic aims for technology and business development relating to the environment and energy.

Carbon emission targets (net-zero by 2050)

Q5. What human resource initiatives are included in your sustainability management policies?
A5. We will expand our initiatives. Key goals include the promotion of diversity, strengthening individuals, and the improvement of engagement.

Under a policy entitled "AGC People: the driver of our growth!", we have established the following HR programs with the aims of enabling each and every employee to reach their full potential, creating an organization that is stronger than the sum of its parts, and achieving our business strategies and organizational targets while delivering corporate and individual growth.

We will continue to promote a variety of initiatives based on the principles of pursuing diversity, strengthening individuals, and enhancing work engagement.

Diversity initiatives, human resource development

Diversity initiatives, human resource development
Q6. Please outline your policies on the expansion of open innovation.
A6. We will use the AGC Yokohama Technical Center as our base for the expansion of open innovation.

Throughout its history, the AGC Group has responded to the demands of the times and worked to solve social issues by taking on the challenges of R&D and commercialization. We have approached these challenges from a long-term perspective, based on unique materials and solutions that combine organic and inorganic material technologies, biotechnology, and common basic technology, as well as its relationships of trust with customers in a wide range of industries.

Through our R&D activities at the AGC Yokohama Technical Center, which we opened in June 2021, we will continue to contribute to the transformation and development of society and achieve continuous growth by providing solutions to future needs through value creation initiatives with client companies . This will also be accomplished by searching for and acquiring complementary and innovative technologies in partnership with universities, research institutions, venture companies, and external partners.

AGC’s open innovation

AGC’s open innovation