Putting chemistry to work for our future

Report on Responsible Care

Tokuyama Corporation
RC Administration Division
Shibuya Konno Bldg. 3-1 Shibuya 3-chome, Shibuya-ku,
Tokyo 150-8383 Japan
Telephone: 03-3499-8478
FAX: 03-3499-8967
URL: http://www.tokuyama.co.jp
e-mail: rc-toukatsu@tokuyama.co.jp
Recycled paper
AiLuck. 01111000
Printed in Japan1

1

Basic Policy and Action Objectives

Basic Policy
As a member of the Japan Responsible
Care Council, Tokuyama Corporation carries out Responsible Care activities that protect the environment and preserve safety
and health throughout the entire chemical
cycle from development to manufacturing,
distribution, use, final consumption and disposal. Our social mission is to aggressively
tackle and solve environmental issues in particular, which will in turn, drive sustainablecorporate development. Based on thisrecognition, we are promoting environmental management, which is a management
method that emphasizes the environment, inall of our business activities, including development, manufacturing and sales.

Action Objectives
1. To promote environmental protection.

・To employ environmental management systems in accordancewith ISO14001 and reduce environmental impact.

2. To faithfully observe laws and regulations.

・To faithfully observe international rules, domestic laws andregulations, and industry standards.

・To thoroughly practice internal export control rules.
3. To promote energy conservation and curb global warming.

・To achieve the lowest unit energy consumption in the industry
for all of our products.

・To reduce 1990 unit energy consumption by 15% by 2005.
Responsible Care (RC) is a self-management activity to implement and improve measures concerning health and safety and the environment.
It is an activity of a corporation producing or
handling chemical substance that pledges in its
management policy to protect the "environment"
and to ensure health and safety throughout theentire chemical substance life cycle, from development, manufacturing, distribution, use, and final consumption, to disposal based on the principle of self-determination and self-responsibility.

4. To promote resource recycling and work toward reduction and proper
management of waste materials.

・To promote material recycling and thermal recycling of resources.
・To promote office paper reduction.
・To increase effective waste utilization ratio to 91% by 2005.
5. To promote safety, disaster prevention, and workers' health and safety.

・To aim for zero accidents and disasters based on the principle of personalsafety and personal responsibility.

・To ensure a comfortable work environment and preserve safety and health.
6. To ensure strict product safety standards.

・To provide products that have little impact on the environment and can be
Responsible Care Promotion
Organization
Recent Responsible Care Activities
Environmental Accounting
Preventing Global Warming

used safely.
・To provide appropriate information on how to use products properly,
precautions, etc.

7. To deepen our trusting relationship with society.

・To disclose information regarding Tokuyama's activities in the areas ofsafety measurements.

・To actively carry out dialogue with local communities.

Toward the Reduction ofEnvironmental Impact
Recycling Waste
Safety Measures
Total Safety Management ofChemical Products
Environmental Activities with
the Community

Passing a better environment to the next
generations is Tokuyama's importantbusiness concern. We are willing to
implement Responsible Care (RC)
activities and make great efforts to solvea variety of issues. Now, let me introduce
what we have done and what we haveachieved this past year.

Promoting environmental
management to establish a
corporate presence in therecycle-oriented society to comeCompanies in the chemical industry have long
been providing essential products for sustaining
and enriching our lives. On the other hand, consideration to prevent the occurrence of environmental and human health problems over the entire chemical substance life cycle, from distribution to use, recovery and disposal, is imperative
to our business activities.

From this viewpoint, Tokuyama has participated in the Japan Responsible Care Council since its inauguration in 1995. We pledged to adopt
Responsible Care, and have initiated aggressive Responsible Care activities that extend beyond conventional environmental and health issues.
The concept of "Environmental Management" that emphasizes environmental protection is at the core of
the managerial strategies in our mid-term plan, which began in FY1999. We regard restructuring our business approach, which encompasses all of our business activities, including research and development, themanufacturing process, and sales, to protect the environment as our social mission, which in turn will enhance our company's value and drive our continuous development.
The White Paper on the Environment of FY2000 says that the 21st century is "the century of the environment," which makes it necessary to establish a sustainable and recycle-oriented society. The Basic Law for
Promotion of the Creation of a Recycle-Oriented Society, the Law for Promotion of the Effective Utilizationof Resources, the Containers and Packaging Recycling Law, the Home Appliance Recycling Law, and theGreen Purchasing Law have already been enacted and put into force. In addition, the Government ofJapan will put the Food Waste Recycling Law and the Construction Waste Recycling Law into effect.
Japan is in the process of making a swift transition to a recycling-oriented society. At Tokuyama, ourgoal is to play a vital role in such a society.
Toward this goal, our corporation established a Recycling and Environmental Business Department in
FY2000. Our corporation has been accepting waste and has utilized it for cement manufacturing. In the future, we aim to make the cement business a core entity to recycle a large amount of waste, to play a vitalrole in recycle-oriented society, and to establish a strong presence as part of this society.
We regard that it is important to actively disclose information on Responsible Care and our measures
toward environmental protection. With each year, we intend to make the contents of such information fuller
and more detailed, reflecting both our deepening commitment to environmental issues and our growing expertise. We hope that your interest in, and understanding of our programs will increase with this report,
and we welcome your opinions and comments.
Yuichi Miura President
September 1, 2001

1

Responsible Care 2001

Responsible Care
Promotion Organization
Tokuyama has established the "Environmental Measures Committee"
to integrate and manage environmental measures throughout the corporation to have a system
in place to promote our activities more effectively.

The RC Committee, consisting of our top managerial executives, is the highest decision-making bodyfor RC activities in our corporation. This committee not only decides policies for our entire corporation,
but also establishes measures on safety, environmental protection, and quality of products. In addition,
we have established various committees on safety, environment, product safety, and other topics as suborganizations, and each committee discusses concrete plans for activities, makes reports on implemented
plans, assesses products, and executes other activities.

Responsible Care Promotion Organization

Objectives for Reducing Environmental Impact and
Its Assessment in FY2000

RC Committee
Assessment Bodies

Assessment and Decision-Making Bodies

Environmental Measures
Committee
Product Assessment Committee(Labeling and Information Assessment
Sub-Committee)

Safety Measures Committee
Internal Export Control
Committee

RC Research Laboratory

RC Administration Division

Supporting body

Secretariat

As for activities geared toward reducing environmental
impact and their achievements, please see below.
In order to grasp and manage our accomplishments
in detail, each place of business reviews its target for reducing environmental impact. In addition, both main andbranch offices establish objectives for saving energy,
separating and collecting waste, implementing green
procurement, and other activities. Our corporation, as awhole, has implemented these activities.

Environmental Management Activities, FY2000

Operation of ISO 14001 Environmental Management Systems
We obtained the ISO 14001 environmental management systems certificate for our Tokuyama factory andKashima factory. Each place of business has established
its own environmental policy and environmental objectives, and has made efforts to reduce environmental impact, to save energy, to diminish waste, and to implement resource recycling and other activities. The
Tokuyama factory incorporates all the related corporations within the factory into the environmental management system, and implements comprehensive environmental management throughout the factory.

Item

Objective

Air

Reduction of SOx,
NOx, and dust

Water

Reduction of COD

Pollution
Control

Under the strong leadershipof top managerial executives,
Tokuyama always establishes
concrete objectives for ouractivities and steadily
promotes the reduction ofenvironmental impact.

GlobalEnergyEnvironmental
SavingProtection
Reductionof Waste

RecycleOperation of ISO 9000s Quality Management System
We obtained the ISO 9001 quality management systems certificate for our Tokuyama factory and Kashima
factory. We have made efforts to secure the quality andsafety of products that our customers demand by operating the quality management systems.

2

Contents of Activities

Achievements of Activities

We installed wet electrostatic precipitator facilities in the
boiler of our own electric power station.
We plan to install denitration facility in the cement
calcinations furnace. Operations will begin in FY2001.

We expect to reduce
SOx, NOx, anddust.

15 percent reduction ofunit energy consumption We made efforts to operate our plants more effectively.
(FY2005)

91 percent increase ofeffective utilization ofwaste (FY2005)

We installed a filtration facility to separate solid material
from discharged water.
We are implementing a program to effectively use this solidmaterial as cement raw material for cement manufacturing.

PRTR

We implemented measures to reduce the discharge ofsubstances of PRTR.

Reduction of discharge ofharmful air-polluting substances

We implemented measures to reduce the discharge ofharmful air-polluting substances.

11 percent(in comparison with FY1990)

91 percent

31 percent reduction(in comparison with FY1997)

PRTR
49 percent reduction(in comparison with FY1995)

3

Responsible Care 2001

Recent RC Activities
Tokuyama is promoting RC activities throughout the organization, and is also promoting their adoption in
our affiliated companies. We also positively support the development of recycling technology and the application ofsuch technology in our own plant.

Tokuyama is a member of the Japan Responsible Care Council, and acts positively in thedevelopment of RC programs. Environmental protection, in particular, we regard to be a vital managerial
theme, and highlight it in our managerial strategies. In terms of environment-related technologicalinnovation, we have developed technology that can be used to recycle polyvinyl chloride. At the cement
factory, we are developing techniques for recycling waste plastic as fuel.

Green Procurement: Start with Office Supplies

Plants for Recycling Waste Plastic into Fuel

Waste Polyvinyl Chloride Recycling Plants

Green procurement aims to contribute to global environmental protection by actively purchasing environmentfriendly products. In the past, each section used to follow
its own procedures; but now, after the establishment of
the "Green Procurement Standard", the whole corporation has adopted the same policy. As a preliminary step,
we have just started the green procurement of office supplies in our offices. In addition, we are striving to adopt
a paperless operation and to recycle waste in the office.

Tokuyama has long exploited the advantage of having
cement kilns in our chemical factory by reusing wastematerials and byproducts as raw materials and fuel for
manufacturing cement. At the first recycled waste plastic
fuel plant (disposal capacity: 15,000 tons per year)
completed in August 1999, we have been recycling
waste plastic that had previously been disposed aswaste in landfills, as raw material and fuel for cement
factories. In June 2001, the second recycled fuel plantbegan operation, which enabled us to dispose of
45,000 tons per year, together with the first plant. We
plan to expand this further in the future.

From April 1998, in concert with three other organizations*, Tokuyama initiated the development of new recycling technologies for waste polyvinyl chloride. A prototype test plant for recycling was built at the site of theTokuyama factory in July 1999, where we implemented
prototype tests on many kinds of waste polyvinyl chloride. This plant has a system in which waste polyvinyl
chloride is degraded in order to reuse recovered hydrochloride in the vinyl chloride monomer manufacturing
process, and to utilize the residue as raw fuel for cementkilns. We finished our prototype tests by establishing thenecessary technology in FY2000, but we are continuing
tests at this plant in FY2001, commissioned by the three
relevant organizations, and aim for practical applicationof the results in the early part of the twenty-first century.

Green Products

Mizutori Zosan 550 (Eco-mark approved)

The 550ml model of our Mizutori Zosan line of dehumidifiers (Mizutori Zosan 550) received the Eco-mark certification as a product made with due consideration given
to the environment.
This model uses recycled resin for the main unit's
plastic case, thereby contributing to resource recycling. It
also differs from conventional types in its refill design, in
which the desiccant and the case can be separated,
thereby contributing to reduction of household trash.

*the Vinyl Environmental Council, the Plastic Waste Management
Institute Japan, and the Japan PVC Environmental Affair Council

Obtaining the Certificate for Safety

Waste Plastic-to-Fuel Recycling Plant

In September 2000, our corporation obtained the certificate for safety inspection of the polypropylene production facilities that allows us to implement our own safety
inspection based on the High Pressure Gas Safety Law
at the Tokuyama factory. Our safety inspection capabilities meet the standard for recognition of management forsafety, facility, and operation, and is certified by the
Minister of Economy, Trade and Industry. In the future,
we plan to expand certified facilities gradually. In addition, in April 2001, all our privately owned electrical
power facilities at the Tokuyama factory were given thecertificate for the safety management inspection systemthat allows us to implement regular self-imposed inspections based on the Electric Utility Law.

ing efforts to expand these activities to the affiliated companies of Tokuyama. We began to implement safety
and environmental inspection for the affiliated companies
both at home and abroad in FY2000, and have been
making efforts to strengthen our management system ofsafety and environmental protection further. We plan toimplement safety and environmental inspections of several affiliated companies every year and expand the RC
activities. Increasingly the affiliated companies have obtained ISO14001 and ISO9000s.

Participation in "Yamaguchi Zero Emission"
Yamaguchi Prefecture promotes "Yamaguchi Zero Emission"in which people, the local government, and businesses cooperate to create a recycling society with sustainable development, utilizing technologies and foundations of basic material industries that are characteristic of Yamaguchi.
Tokuyama participates in this scheme and has developed
the recycling technology to utilize incinerator ash discharged from municipal garbage incineration facilities for
raw materials and waste plastics disposed of by households for raw fuel for cement manufacturing. Our corporation plans to start recycling incinerator ash discharged fromthe garbage incineration facilities of all the municipalities in
the prefecture as an eco-town business in 2002.

Implementation of Safety and Environmental
Inspection of Affiliated Companies
Mizutori Zosan 550

4

Waste polyvinyl chloride recycling plantThis is the fifth year of our RC activities and we are mak-Safety and environmental inspection at a factory abroad

5

Responsible Care 2001

Environmental Accounting

Preventing Global Warming

We have been implementing the company-wide operation of environmental
accounting since FY2000, with the goal of more effective environmental investments.

As a measure towards the prevention of global warming, Tokuyama is changing its refrigeration equipment to thatwhich uses alternatives to chlorofluorocarbons; and we are striving to reduce energy consumption in the production process.

Although some of our sections previously counted environmental investment and expenditures,
according to the environmental accounting guidelines of the Ministry of the Environment, we have begun to
implement company-wide accounting. Consequently, we could more clearly grasp our environmental investments and expenditures. In the future, we will utilize this environmental accounting system to make environmental investments more effective by continuing to assess environmental protection costs and effectiveness.

In particular regard to the emissions of greenhouse gases, such as chlorofluorocarbon gas and carbon
dioxide gas, Tokuyama has been adapting refrigeration machines and other equipment to use
alternatives to chlorofluorocarbon gas. The production of caustic soda, cement, and other materials does
consume a large amount of energy, but Tokuyama is actively engaged in energy saving
to improve its unit energy consumption ratio.

Major Environmental Investment in FY2000

Trends in Reduction of CO2 Emissions

We installed a wet electrostatic precipitator in the boiler,
filtration equipment to separate and collect solid material
from discharged drainage water, equipment to recoverwaste heat from incinerators, in order to reduce environmental impacts and to save energy.
In addition, in terms of environment-related technicaldevelopment, we are involved with the development ofwaste disposal technology and polyvinyl chloride recycling technology.

CO2 emissions are mainly from power plants and the cement kilns. However, despite our rising production output, Tokuyama has been keeping CO2 emission levels
steady for the past several years, due to our efforts to reduce unit energy consumption.

Reducing Unit Energy Consumption
The Tokuyama factory, our main production facility, hasbeen promoting energy conservation programs with thegoal of reducing unit energy consumption to 85% of1990 levels by 2005.
A reduction ratio of 11% was achieved in FY2000.

As our investment in the environment increases,
the cost-benefit perspective becomes
more and more important. Tokuyama has
introduced an "environmental accounting"system and is making efforts toimplement more effective environmental
investments. In the future, we plan to
examine its economic effect.

Amount emitted (1,000 tons/year)

2,000
1,500

Environmental protection costs
Category of environmental protection costs

Cost within
business area

Major contents of activities

1,000
Investment amount

Total expenditure(unit: million yen)(unit: million yen)

Pollution
control

Installment of wet electrostatic
precipitator and dust filters

905

3,390

Global environmental protection

Installment of heat recovery system
and improvement of cooler heat efficiency

55

6

Resource
recycling

Installment of comprehensive waste water
treatment equipment (collecting solid substance)

828

1,362

Upstream/downstream cost

Container recycling

0―

Management activities cost

Installment of analysis equipment

39

307

Research and development
cost

Development of polyvinyl chloride
recycling and waste disposal technologies

0255

Social activities cost

Maintenance of green areas

29

51

Environment damage cost

Management of vacant areas

0

238

1,855

5,610

Total

*According to the "Guideline for Introduction of Environmental Accounting System" by the Ministry of the Environment*Applied within all of our places of business

6500
0 90 91 92 93 94 95 96 97 98 99 00

FY

CO2 Emissions (C-Conversion)
Reduction ratio (%)

0
-2
-4
-6
-8
-10
-12
Target figure:15%-14-16 90 91 92 93 94 95 96 97 98 99 00 05 FY

Unit Energy Consumption Reduction Ratio7

Responsible Care 2001

Toward the Reduction ofEnvironmental Impact
We set targets to reduce our environmental impact.
We are implementing various measures to realize this goal.

Reduction of environmental impact is one of the most important themes for our corporation. We havemade efforts to reduce environmental impact for many years, primarily in electric power plants andcement plants. Recently, we have been actively engaging in the reduction of Pollutant
Release and Transfer Registers (PRTR), the emission of air-polluting chemical substances, andmeasures against dioxins.

4．COD Emissions
Tokuyama works to prevent the pollution of factorydrainage water. Tokuyama is reducing chemical oxygen
demand (COD) emissions through various measures, including activated sludge processing equipment for industrial drainage water containing organic substances.

Amount emitted (tons/year)

200
150
100
50

1．SOx Emissions
SOx is emitted from boilers, kilns and dryers when heavy
oil and coal are burned. Plant boilers are the primary
producers of SOx emissions. Tokuyama is working to reduce these emissions by installing exhaust gas desulfurizers at each power plant. We efficiently use gypsum produced by exhaust gas desulfurization as raw material for
cement.

Amount emitted (tons/year)

4,000

0 90 91 92 93 94 95 96 97 98 99 00

3,000
2,000

5．Programs for Reducing Harmful Air Pollutants

1,000
0 90 91 92 93 94 95 96 97 98 99 00

FY

SOx Emissions

2．NOx Emissions
NOx is also emitted from boilers, kilns and dryers whenheavy oil and coal are burned. The primary producers ofNOx emissions are power plant boilers and cementkilns.
Tokuyama has constructed power plant boilers
equipped with exhaust gas denitrizers. In FY2000, we
installed denitrizers in the cement kilns.

Amount emitted (tons/year)

12,000vinyl chloride monomer
chloroform
1.2 dichloroethane
dichloromethane

100
80
60
40
20
0

95

96

97

98

99

00

FY

8,000
6,000

6．Pollutant Release and Transfer Registers (PRTR)

4,000

Tokuyama participates in PRTR surveys conducted by theJapan Chemical Industry Association, which is carriedout annually, with making efforts to reduce PRTR substances. Since the PRTR Law came into effect in 2001,
we have also included legally regulated substances inthe survey.
In FY2000, the number of chemical substances for
PRTR was 37.

2,000
FY

Amount emitted (tons/year)

300

Amount emitted (tons/year)

600
500
400
300
200
100
0

97

98

99

00

FY

Emissions of PRTR Substances

200
7．Dioxins Countermeasures

100

0 90 91 92 93 94 95 96 97 98 99 00

Dust Emissions
8

120

Harmful Air Pollutant Emissions

NOx Emissions

Dust emissions result from fuel combustion at power
plants and cement kilns. Tokuyama works to reduce emissions by equipping these facilities with electrostatic precipitators. In FY2000, we upgraded the electrostatic precipitator of cement plants.

By the voluntary efforts to reduce emissions of 12 typesof harmful air pollutants, more reductions than previously
planned have been achieved, and each industrial community has decided to continue with further efforts for reduction. Tokuyama will also continue implementing the
reduction measures.
Four of these substances are produced by
Tokuyama: vinyl chloride monomer, chloroform, 1.2
dichloroethane and dichloromethane.

Amount emitted (tons/year)

10,0000 90 91 92 93 94 95 96 97 98 99 00

3．Dust Emissions

FY

COD Emissions

FY

Since waste incinerators and other equipment are subject
to dioxins emission regulations, Tokuyama monitors themwith care. The densities of emission have resulted in levels below the regulated values. We will continue to measure and monitor dioxins emissions, and take measures
toward their reduction.

9

Responsible Care 2001

Recycling Waste in an Open Way
Our cement business that attempts to recycle waste materials contributes
to the formation of a recycle-oriented society.

At our cement factory, we are recycling resources from many waste materials and byproducts collectedboth internally and externally. Cement is a substance composed of minerals such as limestone, clay,
and silica. Since many of these minerals are contained in waste materials, and cement kilns are capableof sustaining intensely high temperatures between 1,000 oC and 1,800 oC, the non-mineral, combustible
waste portions are completely incinerated. Thus, all components of waste materials can be effectively
recycled into either thermal energy or raw materials for cement manufacturing. As a result, our cement
factory is making an enormous contribution to the formation of a recycle-oriented society.

Recycling of Internally Generated Waste
Raw materials used at soda plantRaw materials used at cement plantRaw salt Limestone

Limestone Clay

Soda ash plant

Cement factory
reuses internal wastefrom soda ash
plants.

Products

SilicaBlast
furnaceslag

Copper slag

Cement plant

Soda ashCalcium chloride
Sodium bicarbonate

Accepting Waste from Outside Sources

Product

A Huge 1.61 Million Tons in FY2000

CementSince our cement business began in 1938, Tokuyama's
cement plant has recycled large amounts of industrial
waste and byproducts, generated both internally and externally. We receive slag from the steel industry, as wellas coal ash, sludge and incinerator ash, which are used
for material recycling, while used tires and waste plastics
are used for thermal recycling. The total amount of recycled waste and byproducts in FY2000 was 1.85 million
tons, which includes 1.61 million tons received from outside the company. We plan to continue increasing thequantity of waste we recycle.

Electric power

FuelElectric power

Waste produced in
power plants areimportant raw
materials for cement
manufacturing.

Our power
plantsTo each plant

Electric power, steam

Asphalt

Recycling Waste into Resources and Fuel

Tokuyama's fuel recycling plant (with a processing capacity of 15,000 tons per year), which finely pulverizes
waste plastics, began its operation in 1999 and is already in full operation. At the plant, plastics of various
shapes and sizes are cut and crushed into 20-30mm
blocks for incineration in cement kilns. From this point ofview, we plan to further expand our acceptance ofwaste plastics.

Combustion
gas temperature

Electrostatic precipitators

New suspension preheater

Limestone

Clinker cooler
Raw material
dryer

Clay

Recycling 9,000 Tons of Used Tires Annually
Tokuyama possesses facilities for receiving and loading
cut tires into cement kilns, and is currently recycling at a
rate of approximately 9,000 tons of used tires per year.

10

Coal ashGypsumSOx

Coal

Accepting Various Types of Waste

Expanding the Coal Ash and Sludge Accepted for
Recycling to 440,000 Tons
Tokuyama is increasing the amounts of coal ash andsludge it accepts. In FY2000, the volume of coal ash
and sludge we received reached 440,000 tons.

Unreacted limestone

Limemilk(for desulfurization)

Rotary kiln
Finishingmill

Blast furnace slag
Copper slag

CementShipment

SilicaChemistry plays an indispensable role in completingcircles of recycling and reuse, and in expanding thesecircles to the entire society. Tokuyama contributes its
power of chemistry to maintain a "sustainable society."
Take Tokuyama's cement business as an example.
We exhibit characteristic features of a cement factory,
accepting industrial waste such as waste plastic,
used tires, and sludge generated externally as well asinternally, and efficiently using these elements as raw
materials and fuel for cement manufacturing.

Product

Coal ash

SludgeCoal ashInternal waste

Used tires
Waste plastics (solid)

GypsumWaste plastics(granular, fluff)

External waste received

11
10

Responsible Care 2001

Safety Measures
We carry out safety and environmental inspections for all of our places of business to evaluate
whether our safety management activities are being implemented properly.

Based on the Philosophy that "Ensuring Safety is the First Step in Becoming a Good Corporate Citizen," Tokuyama is carrying out activities aimed at eliminating accidents and disasters. Based on our corporate
philosophy, "Safety is the foundation of our activities, and ensuring safety is the first step in becoming agood corporate citizen," Tokuyama creates a safety management plan every year and is vigorously
carrying out activities aimed at eliminating accidents and disasters.

Effective Use at Cement Plant
Recycled amount (1,000 tons/year)

2,500

Thermal Recycling

2,000

Thermal Recycling is the reuse of waste as a heatsource. Tokuyama receives large amounts of waste
plastics, used tires, etc., which we reuse as fuel.

1,500
1,000

Recycled amount (1,000 tons/year)

40

500
0 90 91 92 93 94 95 96 97 98 99 00

30
FY

Material Recycling at Cement Plant

20

Material Recycling

10

Material recycling is the reuse of waste andbyproducts as raw materials. Tokuyama recycles
slag, coal ash, sludge and incinerator ash generated
internally and externally.

0 90 91 92 93 94 95 96 97 98 99 00

Thermal Recycling at Cement Plant

Tokuyama generates a total of about 270,000 tons ofinternal waste per year. We are continuing to work to reduce waste materials to achieve the goal of increasing
our effective waste utilization ratio to 91% by 2005.
Most of the waste generated from our plants is used as
raw material or fuel for cement manufacturing. A portionof our waste is sold to external parties as valuable materials. The remainder becomes landfill or is incinerated,but the amount of the remainder is decreasing as we
promote recycling activities. In FY2000, the effective
waste utilization ratio became 91 percent.

50

Recycling ratio

Target figure: 91%

95
90

40

85

30

10
0

90 91 92 93 94 95 96 97 98 99 00 05

12

Plant Safety and Environmental Surveillance
Safety Programs for Zero Accidents

We carry out plant safety and environmental surveillance of all of ourplaces of business toevaluate whether oursafety management
activities are being
implemented properly. In addition, we
point out inappropriate operation to further strengthen ourmanagement system.
Plant safety and52000

Landfill

Sale to external
partiesIndustry overall
Chemicalmanufacturingindustry

In FY2000, industrial accidents increased in comparison
with the average number for previous years. Many of
those accidents resulted from human errors. As a countermeasure to this increase, we provided each worker witheducation and training, including moral training.

4

1.9％

3.1％

3

Tokuyama

Incineration

7.2％

2
Recycled orused as raw
materials

70

87.8％

65

Transition of the Effective Waste Utilization Ratio

Before a facility is newly built, expanded, or remodeled,safety and environmental assessments are implemented.
These assessments evaluate safety of facility design, safetyof substances handled, readiness for abnormal situations,compliance with laws and regulations, environmental protection, and other factors, with the goal of building facilities
that are easy to maintain and free of accidents.

Occurrence per year

75

FY

The Tokuyama factory is fully equipped for disaster prevention. It is home to an altitude water cannon carriage,
chemical fire engines, an ambulance and oil fences.
We have formed a special organization for defense
against various accidents and disasters, and we conduct
comprehensive disaster drills every year. In FY2000, in
addition to normal fire drills, we conducted drills using
oil fences to prepare for an oil-leaking disaster.

environmental surveillance

80
20

Safety and Environmental Assessments

We cannot maintain stable production activities without
safety. The safety and health of each individual results inprosperity for our corporation. We strive for a safety program that results in zero accidents for each work place.
As concrete measures, we will create "high awareness inthe work place" not to overlook unsafe actions and conditions, and promote "thorough assessments of safety" before each individual takes action. In addition, we aremaking efforts to assure safety through various activities
such as work place safety meetings, KYT activities, andsafety patrols.

We Recycle More Than 90% of Our Internal Waste

Landfill or incinerated waste quantity (1,000 tons/year)

FY

Extensive Accident and Disaster Prevention Activities

1
0

Breakdown of Waste Disposal

90

91

92

93

94

95

96

97

98

99

2000

FY

Safety record
13Responsible Care 2001

Total Safety Management ofChemical Products
We keep a keen eye to ensure environmental and human safety based on
accurate information gathered throughout the entire product life cycle.

Tokuyama gathers product safety information that is used as a basis for conducting safety andenvironmental assessments of facilities, product safety assessments and product labeling assessments.
In addition, we investigate the impact of chemicals on the surrounding environment by runningsimulations on the dispersion of emitted chemical substances. Moreover, we provide our customers anddealers with instructions and training regarding the proper handling of hazardous chemical products.

Chemical Substance Dispersion Simulations
We run simulations to investigate how emitted chemicals
are dispersed, with the goal of evaluating their impact
on human health and the environment. Through simulations, we can estimate how the emitted chemicals are
spread and where there is possibility of impact.
The results of these simulations are of use in formulating measures aimed at reducing environmental impact
through improving facilities, setting our target values to
be attained, and other ways.

Product Safety and Labeling Assessments
From research and development of new products to facility design and their market release, Tokuyama carries out
many kinds of assessments from various angles to secure
product safety. In FY2000, we carried out 27 productsafety assessments and 152 labeling assessments.

Education activities
Risk Assessment
Tokuyama implements risk assessment for the transportation of dangerous materials to avoid transportation accidents. Thus, we are making efforts to improve transportation facilities and immediate measures for an accident. In
addition, in cases where the risk is high, we implement
drills for accidents.
Product Stewardship Activities - MSDS
Tokuyama offers Material Safety Data Sheet (MSDS) to
its users and clients, offering guidance on the proper
handling of products for use and disposal. So far, wehave published 440 MSDS.

Courses on Product Handling
We carry out guidance or education on producthandling and laws and regulations by holding
lectures for dealers who handle our products.
Educating Our Employees
In the course of employee training, Tokuyama
provides education regarding RC and ISO. We
also educate and enlighten our employees by
notification of policies, goals and measures
regarding RC programs through in-housenewsletters and other means.

Supporting Responsible Care:

Training in handling chemical substances

The RC Research Laboratory
The RC Research Laboratory supports the research aspectof Tokuyama's Responsible Care system. It is comprised of
1 Analysis and Evaluation Group
2 Environmental Analysis Group
3 RC Assessment GroupThe Analysis and Evaluation Group offers analyticaland evaluation support regarding product safety to research and development departments through conducting microanalysis and structural analysis with full use ofstate-of-the-art analysis equipment.

HPV Program
Tokuyama announced its participation in the high production volume (HPV) program and is implementing safety assessment initiatives as a member of the international
consortium. Tokuyama assesses 18 materials.
*The HPV program is an initiative by which chemical corporations andindustrial organizations throughout the world asses safety of high volume chemicals that are produced in quantities exceeding 1,000 tons
per year in two or more countries, and summarize their basic hazard information by 2004.

Tokuyama encourages the affiliatedcompanies, including those inforeign countries, to obtain
the ISO9000s quality
management system and theISO14001 environment
management system.

Transmission electron microscope (TEM)

Dispersion simulation

Safety and Environment Assessment Flowchart
Promoting Safety Management at theAssessment Procedure

Distribution Stage

Research Start

Based on MSDS, Tokuyama educates transporters on our
products' chemical properties and handling methods.
We also require their drivers to carry a Yellow Card that
describes emergency procedures to ensure that they can
respond quickly with the appropriate measures in theevent of an accident during transportation.

Development Start
Feasibility Study
Facility Design
Before Market Launch(Before Operation)

Yellow Card

14

After Operation

Product Safety Assessment

Safety & Environment Assessment

Labeling Assessment

Research Laboratory General Manager(First Assessment)

Executive Managing Director(Second Assessment)

Product Assessment Committee(Third Assessment)

Safety & Environment Sub-committee(Basic Plan)

Safety & Environment Sub-committee(Design)

Safety & Environment Sub-committee(Before Operation)

Labeling Assessment
Sub-committee

Status Report(Environment)

15

Responsible Care 2001

Environmental Activities with
the Community

Tokuyama actively participates in community environmental activities.
In addition, we disclose information on RC activities to local communities.

For environmental activities, the cooperation of both residents around the factory and local authorities
is indispensable. Tokuyama is making efforts to build mutual confidence with the local community byactively participating in various community activities. In addition, Tokuyama also participatesin regional RC presentation meetings held in the local community so that the local residents canbetter understand our RC activities.

Participation in Green Volunteers
Forests protect the natural environment and fulfill the vitalrole of "green dams" that provide a stable supply ofclean water. Protecting forest helps us to ensure safe andcomfortable lives. With this in mind, we support thegoals of the Green Volunteers*, which is sponsored by
the Yamaguchi Prefecture Agriculture and Forestry Office,and participate in their volunteer activities each year.
*Green Volunteers: An event carried out each year by the Yamaguchi
Prefecture Agriculture and Forestry Office that brings together persons
involved in forestry in the upper reaches of the Nishikigawa river andpersons using water in the lower reaches, with the goal of cultivating understanding and promotion of proper development of forests throughforestry work experience, including pruning and thinning.

which people joined together to carry portable shrines.
Our participation was highly regarded by citizens inTokuyama City. At the 65th anniversary of the establishment of Tokuyama City in 2000, we won the Tokuyama
Mayor Award.

RC Audits

Regional Responsible
Care Activity

Clean-Up Campaign
Tokuyama City develops Clean Network Promotion withthe motto, "we clean our own town." Our Tokuyama factory also actively participates in cleaning activities under
the title of "Clean-Up Campaign." Our employees engage in clean-up activities for roads and parks aroundthe factory once a month.

Regional RC Presentation Meeting
In July, a regional RC presentation meeting was held in
Yamaguchi. The objective of this presentation meeting
was to explain RC activities to the local residents andthis was the second meeting. Tokuyama made a reporton RC activities with the emphasis on reusing waste as
resources under the theme of "Recycling Open toSociety." This was a very good opportunity for us to obtain the understanding of the local residents about our
RC activities.

Participation in the Dai Tokuyama Summer Festival
The Dai Tokuyama Summer Festival is a big event inwhich many corporations and citizens participate every
year. Approximately 80 employees of our corporation
participated in the "Great Parade of Portable Shrines," in16

Tokuyama's History of RC Activities
7/1991

Global Environmental Issues Committee established3/1993

RC Committee established
Voluntary plan for overall management ofenvironment, safety and quality enacted

RC Presentation
Meeting

Tokuyama prepares an RC action plan every year andcarries out internal audits and surveillance in the following three areas in order to evaluate whether RC activities
are being implemented according to plan.
1 Environmental Audit
2 Plant Safety and Environmental Surveillance
3 Quality and Product Liability Audit
We also undergo external audits based on ISO14001
and ISO9000s for environmental and quality management.

Dai Tokuyama Summer Festival

4/1994

ISO9002 certification obtained for high-purity
isopropyl alcohol

6/1994

Arrangement for quality assurance system including
product safety and labeling assessments

EstablishedFebruary 16, 1918

12/1994

Internal Export Control Committee established

Headquarters

4/1995

Participation in Japan RC Council

2/1997First edition of RC report issued

Shibuya Konno Bldg., 3-1 Shibuya
3-chome, Shibuya-ku, Tokyo
150-8383 Japan

5/1997

ISO9001 certification obtained for cement

4/1998

ISO9001 certification obtained for dental materials

12/1998

ISO9001 and ISO9002 certifications obtained foraluminum nitride, precipitated silica, etc.
Tokuyama factory obtained ISO14001 certification

1/1999Kashima factory obtained ISO14001 certification

6/1999ISO9002 certifications obtained for inorganic
chemicals, polypropylene, film, etc.

12/1999

Ecological Management Initiative Dept. inaugurated
ISO9002 certifications obtained for polycrystalline
silicon, organic solvent, etc.

8/2000Recycling & Environmental Business Dept.
inaugurated

Company ProfileSo, how was it? Tokuyama continues
to do its best to promote Responsible
Care activities toward the formation ofa sustainable society.
Chemistry possesses the power tochange the future of the earth. We
want to discover and utilize this power.
We will make even greaterachievements in the future.

Business Locations Tokuyama factory

Kashima factory
Tsukuba Research Laboratory
Capital

JPY19.273 billion

Sales

JPY173.33 billion

Employees

2,425(As of March 31, 2001)(FY2000)

Soda ash, inorganic and organic chemicals,
cement, materials for civil engineering andconstruction, synthetic resins, ion exchange(As of March 31, 2001)
membrane and other highly polymerizedcompounds, fine ceramics, pharmaceuticaland agrochemical intermediates, electronic
instruments and parts and materials for them.
Areas ofBusiness/
Main Products17