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If you have any questions, please call us at 03-3218-5603. Once again, the number to call is 03-3218-5603. We will start in a short while. It is time, so let us get started. Welcome to the 2023 ESG briefing session at AGC Inc. I'm Chikako Ogawa from Corporate Communications and Investor Relations Division. I'll be serving as the moderator. Today's participants are Senior Executive Vice President, CFO Shinji Miyaji, and Senior Executive Officer, General Manager of Corporate Planning General Division, Tadashi Murano. First, CFO Miyaji will explain our long-term management strategy, Vision 2030. Murano will then talk about the promotion of sustainability management. We will then take questions. We are scheduled to end at 6 P.M. Your cooperation is appreciated. First, CFO Miyaji.
Good afternoon. I'm Miyaji, the CFO. Without further ado, please look at page 4 of the slide deck. Here you can see our Vision 2030. AGC is in the materials business, and we bring about results. Assuming for certain applications, it takes time. Usually, we look ahead about 10 years in advance and see where we want to get to, and then do the back casting from there to build the 3-year medium management plan, and then into annual budget plans. That's how we have been running. Looking at Vision 2030, as you can see, greater corporate value is what we are enhancing, looking at both the social value and economic value. As you can see at the top, by providing differentiated materials and solutions, we strive to help realize a sustainable society and become an excellent company that grows and evolves continuously.
In addition to realizing a sustainable society, of course, realizing the sustainable society would be helpful in enhancing our corporate value as well, economic value as well. Economic value cannot be ignored to create social value, so we'll be pursuing both. Social value would result in economic value enhancement as well, is our basic principle. Looking at page six, for this, broadly, we are implementing the business portfolio transformation, and we believe four aspects are important in terms of direction. As you can see here, resilient to market fluctuations, high asset efficiency and high growth rate, as well as high carbon efficiency, which is closely related to ESG. So along these four axes, we are gradually transforming our business portfolio in this direction. Next page. This is a very important slide.
This graph shows each of our businesses in terms of our ROCE asset efficiency on the Y-axis and carbon efficiency on X-axis. Ideally, good carbon efficiency and high asset efficiency, those in the upper right-hand corner would be the best. For overall business, we are pushing all businesses in that direction, and for that, the high carbon efficiency and high ROCE businesses, these growth businesses are to be expanded further. That will be essential. That's one very important aspect of our business portfolio. Another thing we cannot forget is essential chemicals, architectural glass, automobile, and display. For these, we have big assets, and in terms of net sales, they account for a large proportion. So these businesses need to be improved to enhance the overall business portfolio.
So starting from essential chemicals, those on the left-hand side are to have a better carbon efficiency and better ROCE. So not just growing the growth businesses, we are to promote the conventional businesses, or our core businesses as well, towards the upper right-hand corner. Page eight, this is my last slide. Through these initiatives, we are to change the breakdown of the operating profit as well. More recently, in terms of the business portfolio transformation, we have been working on this for quite some time. Until last year, the dark blue portion, let's call it strategic businesses, these have been growing steadily.
For FY 2023, bioscience, life science, is going to be a bit stagnant, but we believe they can return to the growth trajectory starting next fiscal year, so towards 2025 and towards 2030. Half of the profit is to come from these strategic businesses. That is the overall direction that we are aiming at. That concludes my part of the presentation. Thank you for your attention.
Thank you. I'd like to talk about the promotion of sustainability management. My name is Murano from the Corporate Planning General Division. For the business portfolio transformation, together with that, we will be promoting the sustainability management. I will speak in the order of ESG, what we are doing at AGC. Slide 11. First, the E part of ESG. Climate change related are at the core. The risks and opportunities have been identified along TCFD framework. We have done these scenario analysis to capture the opportunities as well as to reduce the risks. So the opportunities and risks, as you can see in this slide, are being addressed in our businesses through our business strategy. Next slide.
We are in the energy business, so the biggest challenge in the environment area is CO2 GHG emissions reduction. In our medium-term plan, we have already announced that by 2050, we are to realize carbon net zero in Scope 1 and 2, and as milestones towards that, in 2030, Scope 1 and Scope 2, 30% reduction in emissions, and in terms of per unit of sales, 50% reduction, and for Scope 3, reduce GHG emissions by 30%. This is in comparison to 2019. These are the targets that we have set for ourselves, and each business is working towards achieving these. Page 13. More specifically, in 2022, this was the emissions results in 2022. Scope 1 and 2 on the left-hand side, Scope 3 on the right-hand side, as we have defined. Scope 1 + 2, 11 million tons, and for Scope 3, 10.5 million tons.
Compared to 2019, the progress has been in 2020 in terms of emissions, a 5% reduction, and in terms of the per unit of sales, approximately 30% reduction has been achieved. Of course, we are reducing the emissions from existing businesses, but as we have explained in our business portfolio transformation, we are seeing an expansion of the high carbon efficiency business like electronics and life science. And as a result, we are seeing a steady reduction in terms of per unit of sales. That is the result for 2022. On page 15, we are showing Scope 1 and Scope 2, a major issue in the area of glass business, especially the flat glass, float glass melting process, which is a major part of glass making. The roadmap for GHG emission reduction in float glass melting process in our furnaces. You can see the technology roadmap shown here.
Very complicated, but the key point here is, depending on the regions, the electricity coefficient and the initiatives are different. AGC Group does business in Japan, Europe, and Asia. So technology and the progress are being combined. We are to have the best mix so that we can achieve the targets for 2030, ultimately net zero in 2050. In particular, the point here is the introduction of the electric boosters and to conduct the demonstration tests and deployment of clean fuel, as well as carbon recycle. By combining these initiatives, we are aiming at achieving our goals. In terms of clean energy demonstration test introduction and deployment, in this year, as a part of the projects commissioned by NEDO, the ammonia demonstration test has been announced in June of this year. The demonstration test succeeded, and we are moving into a further deployment here. Next page.
In float glass melting furnace, we are implementing various emissions reduction measures, so I'd like to go over them using different slides. As mentioned earlier, on a global scale, we are engaged in global glass business. So in different region, the process, situation, characteristics, technology advancement level in different regions are to be combined, so as to realize a differentiated process that cannot be emulated by our competitors. So as a project under the direct leadership of CTO, we do have the project being implemented. Next slide shows one of the examples. The two top glass manufacturers collaborating in this project, Saint-Gobain, a major producer in Europe, and AGC, are to collaborate so as to come up with innovative process technology demonstration test.
From the second half of 2024, this is to start, and we have already made the announcement on this. This is, innovation, creation initiative, unprecedented, so as to accelerate the CO2 reductions in the industry overall. Similarly, on the next page, you can see another example, CCU technology. The carbon capture and utilization. Together with Mitsubishi Gas Chemical Company, we have started studying the production and sale of methanol made from CO2, which is emitted in the flat glass manufacturing process. And also, we are considering using the CO2 generated during the glass production as a raw material for our chemicals business. So methanol from CO2 would be used as resources and materials.
This is a long-term project, and through these, by 2030 and by 2050, we are to achieve the CO2 reduction targets respectively. So far, I talked about the risks, mainly, and if you can go to the next page, page 19. There were opportunities presented, and I'd like to discuss them as well. With regard to CO2, obviously, in the glass manufacturing process, there is CO2 be generated, but at the same time, as you can see here, energy-saving glass or energy tech, saving technologies can be used for houses and buildings where CO2 is generated, and you can reduce the CO2 significantly. That's what we found. And, addressing these technologies, vacuum insulating glass or BIPV or Building-Integrated Photovoltaic with power-generating cells, we have come up with a lot of technologies, and we are going to launch them in the market to increase the sales.
So this Thermocline, which is a double glazing with glass, and the vacuum insulating glass, Fineo, and also glass and power-generating cells are integrated in the building, and you can use this in the seals between the glasses, BIPV. And then the low carbon glass that can significantly reduce the GHG emission for overall from the product life cycle. So those have been launched into the market. And as for other opportunities, this is architectural glass opportunities in Europe. Architectural glass or window renovations are accelerating. As you can see here, European Commission has a target of 55% reduction in GHG emissions in Europe by 2030, and as we announced, and more specifically, the building accounts for 36% of GHG emissions.
So by 2030, there are 30 million-35 million existing buildings in Europe, and those will be subject to renovation by 2030. More specifically, you have to transform the buildings from energy inefficient to energy efficient ones. As for AGC Group, the energy performance improvement is essential, and one key factor is a highly insulating glass, and that market is expected to expand continuously. With regard to the system, as you can see at the bottom, as you can see at the up right bottom, in Europe, the building energy performance evaluation has been introduced. From grade G, you have to move up gradually, and there are subsidies that are provided as well. So ordinary glass will be converted to highly insulating glasses, and that is what is expected to happen.
Next page. In line with these developments, what is called green buildings are increasing in Europe, and the less carbon footprint construction materials and glass is in demand because of that. So, as AGC, low carbon glass has been introduced in Belgium first, and we're going to start the same process in France as well. Next page, please. Likewise, again, opportunities. The aside from architectural glass, EV, electric vehicles, fuel cell vehicles, FCVs markets are expected to expand, and AGC products will be highly in higher demand. One example is light control glass on the sunroof of the vehicles. It is going to be introduced, and light will be automatically controlled. And the second one is Low-E glass.
The heat will be shut down and insulated with this glass. And the third one is. Well, once the hydrogen society comes in the future, fuel cell vehicles are expected to be used, and electrolyte polymers for fuel cells expected to increase going forward. And in AGC Group, already we are working on the technologies from the top-down process. And as for chemicals or essential chemicals or functional chemicals markets, we are also doing some activities. Next generation coolants and solvents. The existing coolants or refrigerants used, measured by GWP, will have to be less. And the coolants and solvents with less GWP is now being accelerated, and around 2030, the market is expected to be tripled compared to the present scale.
As for the products of AGC, there's AMOLEA. As you can see on the left, depending on the applications, the progresses in the products are shown. Turbo coolants for turbo freezers, there's GWP will be less than one from 1,030, which is the present one. So there is going to be a great contribution to environmental protection. And also, car air conditioner coolants, the same similar products is going to be developed and help this grow. And also, coolants for houses, stores, and buildings, there are different types, but we believe that this is something that we can cover, and the products that will address this is under development. So what I have discussed so far is summarized in page 24.
We're extensively addressing these in terms of ESG. Social value and economic value can be coexistent in the growth, and that is what we are aiming for. On page 25, more specifically, what is going to be the impact that we can see from out of these? If you just focus on environment energy, in 2023, 11% of net sales and 13% of operating profit is expected approximately. And we have shared with you some products like energy-saving insulating glass or next-generation refrigerants or coolants for chemicals. Those are the focal points to help grow the net sales and operating profits for the midterm. For these initiatives, CO2 and GHG reduction is going to be invested in, and also the products that will contribute in this regard will also be subject to investment by between 2021 and 2026.
More than JPY 120 billion in investment is planned. Today, we are focusing on ESG and especially focused on E. If you look at the sustainability as a whole, in AGC Group, in addition to E or Environment, there is intermediates for pharmaceuticals like life science, like in life science and essential chemicals, the hypochlorite or sodium hypochlorite for sterilizing the tap water. There are many different products that can also contribute in this regard. So we would like to contribute and to social values and also link them to economic growth for AGC Group as a whole. Next page, please. In climate change area, in CDP 2022 A list, is where we are selected, and in December last year, we have acquired SBT certification. Now, please go to page 28.
So to support these environmental initiatives, there's the S portion, the Society-related activities that we are implementing as well. AGC People, the driver of our growth. In other words, we aim to enable each and every employee to reach their full potential, creating an organization that is stronger than the sum of its parts, to achieve our business strategies and organizational targets while delivering corporate and individual growth. We consider this as AGC's corporate culture. On the next slide, you can see that we have a very diversified human resources within our group. On the left-hand side, you can see the changes in the number of employees from 2002 to 2022. Especially in regions outside of Japan, you can see the number of employees growing.
Similarly, in terms of net sales, as shown on the right-hand side, we have been growing the net sales outside of Japan in accordance with growth in the number of employees outside of Japan. Let me be more specific, looking at the ensuing slides. Page 31. This is for architectural glass and automotive glass, our base in Brazil. The very first South American base for AGC. As you can see, we have engineers from 13 countries, Italy, France, the Czech Republic, Belgium, Japan, and others, as one team. So far, we have been very successful in expanding our business in Brazil. Next page. On the left-hand side, you can see the milestones in our global expansion. In 1956, we started the business in India and in over 30 countries and regions, we are operating.
More recently, as shown on the right-hand side, we are expanding on a global scale our life science business. They are bases in 10 sites in 6 countries, including Japan. In terms of net sales, you can see a steady growth. For the life science business, our global talent is leveraged for the business development. Page 33. In life science business area, especially the biotechnology and pharmaceutical ingredients, CDMO, we do have the business of technology transfer in life science. In Copenhagen, we i n Denmark, we do have the expertise accumulated through many years of experience in mammalian cell business, and that expertise has been transferred to our Chiba site.
In three locations, Japan, Europe, and North America, we are expanding our overall life science business for the overall growth on a global scale. In the area of life science, of course, that is part of our strategy, strategic business, and similarly in electronics and mobility, which are other parts of our strategic business. Again, we have the global base and the diversified talent, which are to bring about the synergy effect. In 2023, there is a temporary stagnation, but we do have a big target for 2025, and we are confident that we can reach there. Next page is the last portion, or rather, the social part, the supply chain and human rights in the supply chain. Page 36.
In AGC Group, in each of the businesses, starting from raw materials to the products, there is a long supply chain, and human rights duties is something that we are working on right now. So, in accordance with AGC Group purchase policy, we have started the questionnaire in 2020, and we have been gradually expanding the scope of the questionnaire so that we can enhance sustainability for the whole supply chain. And you can see the average questionnaire score on the right bottom, and we believe that there has been gradual improvement that we has been made. Now, the last part of ESG, the governance. Page 38, please. In AGC Group, sustainability management is one of the top priorities, and therefore, under the monitoring of the Board of Directors, Sustainability Committee is positioned on the same footing as the Management Committee, which is the top priority committee.
And deciding and monitoring the execution of initiatives is what this committee is responsible for. And CEO is the chair of this committee, and all the heads of the functions are sitting on this committee, and the progress and the policies of the whole group is looked at. And one of the sustainability is the diversity of talent. And with regard to diversity, in 2022, we have established Diversity Council to have a cross-functional information sharing. Diversity Council is also, chaired by CEO, the top of this executive function, and all the heads of the functions are sitting on this council as well to promote diversity. Page 40 is the last one, and I'd like to wrap up my presentation.
So AGC Group, is, focusing on ESG to promote sustainability management, and that's one of the pillars of midterm plan. And since the foundation in AGC, we have been, working together with society, and as a result, we can achieve economic growth as well. So that is what we are going to continue to pursue. That's all. Thank you very much for your attention.
Thank you. We will now start the Q&A session. If you wish to ask questions using the chat box, please press the Q&A button first, and then type in your questions. If you wish to ask questions orally, please use the Raise Hand button on the screen and wait until your name is called upon by the moderator. Unmute your microphone, and please state your name and affiliation before you start your question. We will first answer the questions that we received in advance. The first question, on slide 25, products contributing to the environment and energy field. In terms of net sales and operating income, approximately 11% of net sales and 13% of operating profit in 2023. What are the products that had a greater profit contribution?
And also, towards 2026, what are the products which you expect the profit contribution to be large? Murano-san, thank you for your questions.
As I briefly mentioned during my presentation, first of all, in environment-related area, the energy saving products, especially for architectural glass and automotive glass, the heat resistant and the heat blocking demands, we believe will grow. And similarly, r eally to block the heat, of course, that will have a great contribution in terms of energy saving for buildings and residential buildings. And in the area of electric vehicle, the air conditioning electricity consumption is closely related to the heat blocking, and therefore, the glass that can block the heat can be very effective over a long term. What I mentioned earlier, the fuel cell vehicles, polymer, the fuel cell polymer, that's a next generation product area where we have a great expectation, and these should grow as well. That will be our answer.
Next question. There was a report that methanol production and sales are going to be done using CO2 generated in glass manufacturing. So by using this, to what extent you can expect to reduce CO2 on a company-wide level or on a plant, a single plant level? And depending on the market, it might be different, but, what would be the profit level that you can expect? Murano-san, can you answer this question as well? Thank you.
As you can see on page 18, I think, this is what is relevant. And, we just started our study, so, specific sales and profit impact has not been calculated yet. We're not in a stage of doing that yet. And at what cost we can achieve this? How we can use the raw materials beyond that is what has yet to be studied. So there is a high expectation, but at this moment, how much reduction can be expected and to what extent this can contribute to profitability, we cannot give you any specific numbers yet. So as we make progress, in due course, we will be sharing more information with you. Thank you.
Next question. Page 48, appendix. In chemicals, chlor-alkali business, GHG reduction roadmap. What is the current makeup of the energy, in-house power generation and purchased electricity? What are the ratios? And of in-house power generation, what are the ratio between fossil fuel and biomass of fuel? What's the current ratio, and what's the projection for 2030? Can you separate between Indonesia, Thailand, and Japan? So compared to the current level, to what extent do you plan to reduce GHG emissions in 2030? Again, Murano-san. Thank you.
What's shown here, Scopes 1 and 2, 11.6 million, 30% reduction from there is the target that we have set for ourselves. AGC Group is in different businesses, and energy breakdown by different business, we do not disclose that. But as you can see in this slide, in glass business, as was explained earlier, in the glass melting process, we will be reducing there. In the area of chemicals, electricity is consumed quite a bit, and so purchased electricity to be converted to renewable energy. We do have some in-house power generation, so have the biomass fuel there. These are the initiatives that we will be working on to reduce emissions.
Regarding chemicals, the overall picture, conceptually going forward, the business itself is still growing, and so as business grows, we assume that the emissions volume would grow accordingly, and therefore, we will try to reduce the potential global warming potential. Also, we do have many sites for chemicals in different parts of the world, so recycling and energy conservation initiatives will be implemented. So in chemicals as well, 30% reduction is the target we have for 2030.
Let us move to the next question. With regard to ESG initiatives, is this KPI introduced to be linked to performance or compensation for executives? Miyaji-san, can you answer this question?
Well, as for directors or officers' compensation, GHG emission reduction and diversity initiatives, non-financial information has been actually introduced and linked to compensation. Exactly how has not been disclosed externally at the moment, but amongst executives, we have introduced these measurements or metrics in the assessment. From next year, the next medium-term management plan is going to be started. So non-financial assessment will be made clearer in terms of introducing that into compensation so that people outside can see better. That's what we are studying. Of course, this is a director's matter, but to the compensation committee, this is going to be proposed as well.
Thank you. Moving on to the next question. TCFD analysis results were shown. Of risks and opportunities, what are the priority items? Is the next question. Murano-san, can you take that question? Thank you.
As I briefly mentioned in my presentation, for AGC Group, the highest priority matter would be climate change issues that are both opportunities and risks, as well as resources used. On a global scale, we are conducting business, so sustainability of planet Earth and for the sustainable growth of AGC, explore the new business opportunities, and on specific risks, create, develop the roadmaps for reductions. Especially regarding the technology roadmap, the specific activities have already started, and the progress would be shared with you. Of course, in other areas, other opportunities and risks will be addressed on a sustainable manner as well.
Thank you. The next question, in Europe, renovation market is expected to increase, that's what you said. But it, by 2030, to what extent, you would increase the market to, expect the market to increase, or what would be the scale that you're expecting? Murano-san, please.
I think, page 20 is relevant here. So as for European renovation market, the European Commission has made announcement, and in each country and region, there will be more initiatives to be promoted. And what we estimate, as far as we estimate at the moment, the renovation windows or repair rate annually for the windows is going to be doubled, probably. But of course, depending on the country and region, the speed might be different. How much impact it will have on our performance is something that we need more time to assess. Because as you can see on page 20, 30 million or 35 million buildings are what we're talking about, which will be subject to this renovation. So at what level of high energy saving glass or window will be used?
That will decide the magnitude, and we do believe that it is definitely going to increase. But how much demand it will translate into in terms of glass demand we have yet to decide, but there is a high expectation on that anyway.
Thank you. We are accepting questions. If you raise hand, we will call upon you. So you can ask questions orally as well. Next question. The sales contribution of environment products, do you have any targets? Is the question. Murano-s an, can you take that question? Thank you.
On slide 25, you can see the products that will contribute to the environment and energy field, both net sales and operating profit. By 2020, the AGC group's management target has been the CO2 emissions in the process of production. The sixfold contribution to what is emitted has been the target until 2020 as management target. We don't have similar targets currently, but we would like to come up with metrics that are easy to understand, that will represent the performance of our products contributing to environment and energy. Sixfold contribution, we believe, has been achieved, mostly, and we are thinking of setting even more challenging target. In terms of environment contribution, it's not just CO2 emissions, there are other categories as well. So we'll be looking at the overall picture and come up with the metrics that are easy to understand for both the inside and outside stakeholders.
Okay, let's move to the next question. With regard to PFAS, your company has been found to be the largest PFAS producer in Japan. That was the analysis that was announced. And from two years after, there will be PFAS regulations started in Europe. So is there anything that you can disclose in terms of impact on your performance or extent of preparation to address this issue? Murano-s an?
Thank you very much for your question. As for PFAS, as you know, this is a fluorine-related products, and general name for that, and there are more than 12,000 different substances. And what is now becoming problem is PFOS and PFOA. Those are under regulation. And for those substances, in AGC, we don't have any track record of producing or selling PFOS, and ahead of the regulation, we had abolished PFOA entirely. So amongst the PFAS, those specific PFAS is substances that are now at issue. There is no significant problem to us. But as you said, there is a regulation proposal that is being discussed now in Europe actually looking at covering the whole PFAS.
So as for the PFAS regulation, how the PFAS regulation should be is something that we have to look at, but not as a single company for AGC, but each industry and each country would make consideration. And amongst AGC products, there are a fluorine polymer as well, but the ion exchange membrane, like, a fluorinated polymer resin, and it's not ingested into the body, so it is extremely safe. And in pharmaceuticals and agrochemicals, there are products that are contributing to society amongst AGC products, and we believe that appropriate understanding will be formed going forward. As for if there is any specific progress in regulation of PFAS, then we would like to share with you what are the progress that we have made in our initiatives, and so I'll keep you posted. Thank you.
Moving on to the next question. In 2050, carbon net zero, is that achievable really, is the question? I assume that this is a rather challenging target. What are the issues that might lie in between? Murano-san. Thank you.
That's a very tough question. Carbon net zero for AGC group overall is what we're talking about. So in each business and in each region, the appropriate initiatives need to be implemented. The main source of emissions: glass, chemicals, electricity. In those areas, when certain conditions are met, then we believe that certain level of achievement is possible. And for that to happen, electricity or promote electrifying the energy source, that is one key. And of course, energy saving through our own efforts and also innovation, technology innovation, part of which I explained today. For example, ammonia and hydrogen fuel conversion in the glass making, and use more of renewable energy. Also, CCU, carbon recycle. This will be promoted in combination, and successful combination of these options could get us closer to achieving carbon net zero.
The challenge, having said that, is a major facility renovation would be needed, modification, and collaboration with other players, and in certain instances, the regional infrastructure needs to be built. So the best timing doing that needs to be closely looked into over the medium to long term.
Thank you very much. There is only 10 minutes left, but we still continue to receive the questions. So if you wish to ask questions, please use the raise hand function. The collaboration with Saint-Gobain was mentioned. What is the progress that you've made? That's the next question. Murano-san, over to you again.
Thank you. On page 17, you can see the information. At this moment, there's no delay in development, so we are steadily making progress. As I said, on a global basis, glass top manufacturers are sharing the distinctive and unique technologies, and combination of these technologies is now being demonstrated, and that is going to be started in second half of 2024, and various development activities are ongoing, and there's high hope for that. And as we make progress, we will share more information with you.
Next question about human resources or talent. What are the quantitative and qualitative targets for corporate culture, if you have any? And what are the challenges, and what are the initiatives you have in mind to address them? Murano-san, please. Sorry. Miyaji-san.
If I may. As briefly mentioned during the presentation, the corporate culture, I think that's what's most important within our group is, you know, for any company, the human resources talent is really the key. So, creating good culture would attract a good talent, I think. So we are really focusing on building good corporate culture. Of course, history is a big factor within a corporate culture. So, it really differs from company to company as to what is the factors for corporate culture and corporate value enhancement, so you can't really generalize. But as you can see here, we want each and individual company to fulfill their potential. And we have engagement survey conducted once every three years, a full survey all employees on a global scale.
Results, we do pay a lot of attention to the results. In a way, we consider this to be one of the most important indicators. Once every three years, the full survey is conducted, and every time we see improvement in our response. And currently, the level is among the Japanese companies, I think we are one of the best. You can see here. So once every three years, full survey. And for any of the items, we are seeing improvement. In terms of challenge, first, on a global scale, the blue-chip companies, we want to be one of the blue-chip companies on a global scale. But when it comes to respecting individuals and growth opportunities that are directly related to motivating the employees, we are a bit lagging behind our competitors in those areas, so we want to strengthen this.
And for that, we have a very unique approach taken. Global Dialogue CEO more than 100 x a year, and including other executives. We have many town hall meetings held so as to get feedbacks from all levels of employees. And we do have a very detailed breakdown of the engagement surveys so that we can come up with the countermeasures on more specific level. Through these efforts, we believe even better corporate culture can be built, and that will attract a more good talent, and that would contribute to the corporate enhancement. So we are expecting this positive circle.
Thank you. Next question. You're saying that you're using the global talent. What is the mechanism that you have introduced to support this utilization of talent? Mr. Miyaji, over to you again.
As you can see here, Japan is expanding in the circle, but actually the number is declining. And in other regions, the number of headcounts is increasing. In terms of headcounts, close to 80% are non-Japanese. And in our company, in 2002, we have changed our system significantly to a global company system, and it's been more than 20 years since then. And how to utilize the talent is something that we have started to work on as an infrastructure improvement early on. And the global job grading is what we have launched already. What is now becoming a buzzword now, but in 2005 or 2006, we have already put that in place. So those who are at a certain level or over will be assigned the jobs in the job grading system.
And it all started with the right person in the right place, and that is the basis of the whole system. And based on businesses, of course, there are some local natures or businesses or different businesses of different characteristics. So we may not be able to utilize all the global talent in all businesses, but we do have the infrastructure in place, and we have that philosophy in place as well. And what is in the center of the business, the headquarters should be located geographically. So Architectural Glass is headquartered in Belgium, in Europe, and Biopharmaceutical is in Seattle, in the U.S., and chlor-alkali Asian headquarters is now in Asia, because it is growing in Asia. And so, we have combined how to utilize talent is, with these, businesses.
So, it's not like just a globalization, not in accordance with the, practical system, but, we have established a, talent system that is in accordance with the, nature of the region. And as for the top management, we need to have something, somebody who's, who has experience, and in the succession planning, we do have, the system in place to have the, person from region to region.
Now, that's all that we have in time, and I'd like to conclude question and answer session. If we haven't covered all the questions, IR representatives will answer the remaining questions. Thank you very much for joining us today. We'd like to conclude ESG presentation for 2023. So if you close the Zoom screen, then you will be transferred to questionnaire screen. So to improve our IR activities, please help us with your feedback. But if you still have any questions, please contact us. 03-3218-5096. 03-3218-5096 is the number that you need to call. Thank you very much for your attendance once again.