Building Value to Materialize Sustainable Growth The UBE Group’s Innovation: New Environmental Technologies

R&D that Contributes to Create Businesses and Help Lower Environmental Impact The UBE Group pursues R&D to create businesses that will be vital to its long-term growth. We are committed to cultivating technologies that help reduce GHG emissions and contribute to sustainable social growth.

R&D NEDO Projects

CO2 Utilization Projects Contributing to Breakdown of R&D Expenses The UBE Group’s R&D program encompasses Decarbonization by Research Theme all four of its business domains—environment and R&D expenses: ¥11.3 billion energy, mobility, construction and infrastructure, Mineral Carbonation (FY2020) and healthcare. From fi scal 2021, we will build GHG R&D of an Accelerated Mineral Carbonation emission on that foundation to undertake R&D that focuses Other Process Utilizing Calcium in Industrial Wastes reduction on creating new businesses in fi ve areas. These 15% 13% • Development team: , Idemitsu Kosan Environmentalenent areas are construction and infrastructure, CO2 Co., Ltd., JGC Group, Seikei University, and preservationssee and waste utilization, energy management, 28% Tohoku University nature sustainability, and life sciences. Specialty • Focus: Use carbonate obtained from reactions (Chemicals) We will increase success rates by enhancing between industrial waste with high calcium content 57% the synthesis, catalyst, processing, and other and factory CO2 emissions. technologies that we have amassed across the • Progress: The team is developing low-energy- inorganic, organic, and fi elds or have consumption carbonate technology and applications gained from collaborating with external entities. for the resulting carbonate and by-products to In choosing these fi ve areas, we will maintain our build a process that is profi table and has a low specialization approach while becoming even environmental impact.

more conscious of the need to tackle environmen- CO2 Electrolysis tal issues. In energy management, for example, Integrated Electrochemical Systems for we aim to contribute to decarbonization by using energy-saving heat insulation and dissipation Scalable CO2 Conversion to Chemical materials. On the nature sustainability front, we Feedstocks are exploring the use of natural raw materials and • Development team: Ube Industries, University of techniques to foster effi cient plant and animal , University, RIKEN, Shimizu Corpora- growth without harming biodiversity. tion, , and Addressing CO2 emissions, waste , Co., Ltd. and other long-term issues should also present • Focus: Use renewable energy-derived electricity in new business opportunities. We will readily allocate electrolysis to convert CO2 directly into useful resources and leverage projects that the New chemical raw materials. Energy and Industrial Technology Development • Progress: The team is developing high-performance Organization (NEDO) commissions to resolve such electrocatalysts and evaluating CO2 electrolysis to build an electrolysis system that can effi ciently and issues. Here, we will provide details of decarbon- selectively convert CO2 into useful chemical raw ization projects and plastic recycling initiatives. materials. We aim to reduce annual CO2 emissions by up to 200,000 metric tons. Waste Plastic Recycling Multilayer Film Recycling Developing Liquid-Phase Hybrid Recycling Technologies for Multilayer Plastic Films Development team: Ube Industries, Tohoku University, National Institute of Advanced Industrial Science and Technology, Keiwa Kogyo Co., Ltd, Tohzai Chemical Masayoshi Ota Senior Executive Offi cer, General Manager, Research & Development Div., with responsibility for development section and Intellectual Property Dept. Creating New Businesses and Lowering Environmental Impact through R&D

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Construction and Environmental Issues / Sustainability Life Sciences Infrastructure

Industry Co., Ltd., Corporation, Intellectual Property Printing Co., Ltd., and Mitsubishi Engineering-Plastics Corporation The UBE Group’s initiatives to reinforce and opti- Focus: Treat multilayer (nylon–polyolefi n) fi lms at high mally leverage intellectual property (IP) aim to temperatures with highly pressurized water to recycle enable us to create new businesses and bolster decomposed nylon monomer and isolated polyolefi ns. competitiveness, thereby helping to build and Progress: Attained target nylon monomer yield after expand enterprise value. decomposition as a result of initial nylon pellet assess- We seek to maximize our enterprise and IP ment. Currently verifying optimal decomposition value by formulating IP strategies according to treatment for layer composition and crushing for multilayer fi lms. our business strategies and by implementing the plan-do-check-act (PDCA) cycle of IP strategy Using Non-Fossil Raw Materials activities. Furthermore, to strengthen IP research and analysis capabilities, we are working to Bio-Based Polymer improve operational effi ciency, including in R&D R&D of Data-Driven Integrated departments, by utilizing tools with AI functions Biomanufacturing Management System and to utilize IP portfolios*1 and open/close 2 Development team: Ube Industries, National Institute of strategies* while promoting IP activities Advanced Industrial Science and Technology, and that contribute to business revenue. At the other entities same time, we are promoting global IP Focus: Obtain monomer through microbial biomass management as the UBE Group, and are conversion. advancing the sharing of activity policies Progress: Designed and constructed prototype and IP information with Group companies microorganisms to produce monomer. From fi scal in and overseas. 2021, looking to shift to R&D using a data-driven integrated biomanufacturing management system (please see note).

Note: This R&D support system accumulates, shares, and uses infor- mation obtained from technological development to drive the adoption of biomanufacturing technologies.

Glossary *1 IP portfolios: Patents, copyrights, know-how, and other IP that corporations can use to formulate strategies and assess competitiveness *2 Open/close strategies: Management strategies that give companies competitive edges by making IP open or closed

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