Innovation Ambitious For A Sustainable Future Co-Creation For Innovation Kao Contributor Brand Contributor Kao BRANDVOICE Storytelling and expertise from marketers | Paid Program Aug 9, 2022, 03:49pm EDT | Share to Facebook Share to Twitter Share to Linkedin The Kao Corporation of Japan has been committed to improving society for more than 130 years. It began as a soap maker and developed its precise interfacial control technology, which it has applied to other fields. Kao is now working on ways to solve issues such as environmental challenges and the global food problem, as well as fostering other innovations that could change the world. This article series will explore the drive behind this innovation as well as how Kao is leveraging its R&D heritage and assets to address social issues. ILLUSTRATION BY TIM BOELAARS Tackling Environmental Issues And The Food Problem With Precise Interfacial Control Technology When it comes to innovation and ESG management at Kao, a key word is “responsibility. ” “The evolution of technology has both positive and negative aspects,” says Hiroyuki Terazaki, an Executive Officer at Kao, and Vice President of R&D Strategy. “Even products created with the aim of enriching people’s lives may have negative environmental consequences. So we make it our mission to keep that from happening while using resources carefully. Innovation that enhances sustainability is at the heart of what Kao should be as a company. ” Kao has long regarded its responsibility to the environment and society as a basic tenet rather than a trend. Now it is finding ways to innovate through its fundamental technologies accumulated over many years. Three examples epitomize such efforts—Kao’s revolutionary detergent base Bio IOS, the company’s adjuvant technologies and soil improving agent technologies to increase crop yields. These different innovations are driven by the same spirit of resource conservation. They are also examples of using precise interfacial control technology to solve social issues. Bio IOS is a unique surfactant, highly soluble in water while at the same time retaining high affinity to oils. Created from the residue of pressed palm oil, Bio IOS was developed with sustainability in mind and is the world’s first real sustainable surfactant in 50 years. The raw materials used in conventional detergent bases are mostly coconut oil and palm kernel oil. Their production area is extremely limited, but another problem is environmental destruction from the logging of primary forests. These factors mean that detergents may become more expensive but lower-quality in the future. Bio IOS uses the residue of pressed palm oil collected from the fruit of the oil palm. It had been difficult to use this residue as a raw material for detergents but Kao scientists found a way. As its name suggests, Bio IOS is highly biodegradable, but it also cleans better than conventional detergents. It’s also better for the planet. Bio IOS products require about two-thirds of the energy, produce only two-thirds of the CO2 emissions and reduce water pollution load by half compared to conventional detergents. Because of its strong cleaning power and solubility, Bio IOS also works in cold regions with low-temperature or hard water. “In Japan, Bio IOS has been put to practical use as a laundry detergent, and the production volume of the base itself keeps steadily increasing,” says Masato Nomura, leader of Bio IOS research and development. “We are currently promoting commercialization and collaboration while looking ahead to global expansion, and this will contribute to the creation of a sustainable society worldwide. ” Innovation Inspired By The Desire To Solve Social Issues Kao is also applying its expertise in precise interfacial control technology to increase crop yields and food production. For instance, Kao adjuvants are highly effective in reducing use of agricultural chemicals. Meanwhile, its soil-improving agents can maximize plants’ natural growth and increase yields. The adjuvants developed by Kao have high wettability and permeability. They have a pest control effect even with a small volume of agricultural chemicals. Kao also developed an adjuvant that is less affected by wind than conventional agents, making it more effective when spread by drones. “Spraying by drone not only yields low agrochemical coverage on crops, but may also cause issues such as pesticide drift onto plants other than the target crops,” explains Hiroshi Tomita of the Kao Material Science Research Laboratory. “Kao’s adjuvant applies two precise interfacial control technologies that are highly effective in solving these problems. One is our wettability enhancement technology. The other is our evaporation suppression technology. We plan to expand the project to China and to countries with pesticide issues and shrinking agricultural workforces. We also want to develop it as a technology to increase the productivity of Japanese agriculture and strengthen its export power. ” Kao is also developing soil-improving agents to guarantee stable yields. One agent uses lignin with a low degree of condensation extracted from plant biomass. Only a small amount can improve the soil’s water permeability and growing conditions for crops by changing the soil into granular form. Research is also underway to utilize the nonedible part of the palm. When enhancing the quality of soil, large-scale use of machines is often carried out to improve water permeability. Soil-improving agents can help lessen the financial burden faced by farmers while increasing productivity. “Lignin with a low degree of condensation can bring out the potential of land regardless of the type of crop,” says polymer chemistry specialist Yumi Mochizuki, also of the Kao Material Science Research Laboratory. “We are compiling the results of soybean experiments. We will keep experimenting and verifying the effects, then expand to other crops. Our goal is to promote the R&D so that one day these technologies can be used in the United States, China, India and other Asian countries, and all regions faced with food problems. ” Kao continues to generate a number of innovations based on its responsibility to the environment and society. Within great responsibility lies great strength, and Kao is pursuing a new formula for innovation and ESG management. Co-Creation At Kao Co-creation at Kao is embodied in the idea that innovation is achieved only when an invention enhances customer value. The company has many strengths that support innovation, such as environmental and social responsibility, basic research and a matrix organization that organically unites business units and functional units. ESG management should be based on the Japanese concept of monozukuri (craftsmanship), according to Hiroyuki Terazaki. “Since the beginning of Kao, which started with soap and now develops many different products, our corporate philosophy has always been to contribute to the lives of our customers in a way that makes them happy,” he explains. “Kao's 130-year history of product development itself has always been steeped in what is now known as ESG. Evolving that corporate philosophy should be the best way to realize ESG management for a new era. ” Kao is working on ways to apply its long-cultivated technologies to today’s world and utilize them to solve social issues. “Innovation is effective only when it contributes to customers in the real world ,” Terazaki continues. “But there are more and more issues that cannot be solved by one department or even one company alone. We collaborate actively with all departments and other companies to unleash innovation and make a positive impact. ” Kao maintains a companywide policy of focusing on four social challenges—environmental issues, population aging, pandemics and diversification—and of promoting technological innovation to help solve them. To match the right technologies with the many issues that exist, and to discover solutions from a user-first perspective is of utmost importance, according to Terazaki. “Invention and innovation are not the same,” he explains. “Innovation is achieved only when an invention enhances customer value. No matter how good the technology is, if it doesn’t have value to customers and society it’s worthless. On the other hand, even if the level of technology is not very high, if the value is high, it’s a great innovation. We always ask ourselves: what kind of technology is useful for consumers and society? We will forge ahead with R&D from the perspective of customers and social issues. This is how we can further improve customer value and solve social issues, while carrying out ESG management. ” The Biomass Research Building, a greenhouse adjacent to the Wakayama Plant, includes oil palms, the main raw materials for Kao’s new detergents. Part of Kao’s philosophy is to carefully use all resources to the fullest in its products. KAO Click here for the original 2019 article in which Forbes JAPAN interviewed the developers of the sustainable surfactant Bio IOS. Message from Kao R&D Kao was established in 1887 and began the manufacture and sales of consumer soap Kao Soap in 1890. Based on the philosophy of supporting clean lifestyles, Kao first addressed the social issue of improving cleanliness and hygiene in Japan. As Japan developed, we built up our R&D prowess and applied technological innovation to solve social issues through a variety of products intended for daily use. This philosophy undergirds the very DNA that Kao has handed down and maintained since the beginning. Kao's mission has been to support the evolution of daily necessities while tackling social issues. In addition, Kao now conducts a broad range of R&D on environmental issues, the global food problem and virus control. At the same time, the desire to work with people to solve society’s issues through our products and services manifests in our efforts to use the latest technology to enrich the lives of the planet’s some eight billion people. In this series of articles, we introduce some of our original technologies that are enriching daily life around the globe. We also hope to connect with like-minded people to make the world a better place. Kao Contributor Editorial Standards Print Reprints & Permissions.