N.E. CHEMCAT CORPORATIONSUSTAINABILITYREPORT

N.E. CHEMCAT CORPORATIONWorld Trade Center Building South Tower 27F, 2-4-1
Hamamatsucho, Minato-ku, Tokyo, 105-5127
Tel: +81-3-3435-5490
Website: https://www.ne-chemcat.co.jp/eg/

2023

Corporate Philosophy

We contribute to achieving a sustainable and quality global
environment and affluent society through chemistry.
We at all times strive to develop technologies and provide
high-quality products to our customers, and bring about
the creation of new value.
We respect human rights and fulfill corporate social
responsibilities, seek to co-exist with the environment andsociety around us, and aim to become a company that istrusted by stakeholders.
We promote transparent and sound management, develop
the potential of each employee, and foster a culture thatmaximizes the achievement of the entire company.

Contents
Corporate Philosophy

1

Contents / Editorial Policy

2

Message from the President

3Long-Term Vision

5

History of N.E. CHEMCAT

7

N.E. CHEMCAT Business Fields

9Helping to Build a Sustainable Future

13

Sustainability Management

15

Feature Article:

Realizing a Decarbonized Society throughInnovative Technologies

17

ENVIRONMENT
Environmental Initiatives
Responsible Care Activities

21
24

SOCIAL
Together with Customers: Quality Assurance Activities
Cooperating with Business Partners: CSR Procurement
Cooperating with Employees: Human Resource Development
Cooperating with Employees: Occupational Health & Safety
Stakeholder Engagement

25
27
29
31
33

GOVERNANCE
Corporate GovernanceCompliance
Risk Management

35
36
37

ESG Data
Company Data

39
40

Editorial Policy
The aim of this report is to present N.E. CHEMCAT's approachto sustainability and its efforts to help solve environmental andsocial issues through its business activities. The company’s wide
range of initiatives related to sustainability are presented in the
ESG categories of environment, society, and governance. We
hope this report will help our stakeholders gain a better understanding of our sustainability management.
Reporting period:
Fiscal 2022 (April 2022 to March 2023)

Some data from before/after the reporting period are included.

Reporting scope:
N.E. CHEMCAT CORPORATION
Reporting frequency:
Once a year
Reference guidelines:
GRI Standards
Contact:
Corporate Administration Dept., N.E. CHEMCAT CORPORATION
Email: info-pr@ne-chemcat.co.jp
Note: This report is the English version of the Japanese original.

1

SUSTAINABILIT Y REPORT 2023

SUSTAINABILIT Y REPORT 2023

2

Message from the President

Contributing to
the realization ofa sustainable society withcatalyst technology
Susumu Endo

President and Representative Director

Promoting sustainability management to help solve social issues,
based on the cornerstones of our Corporate Philosophy andLong-Term Vision
N.E. CHEMCAT was established in April 1964 and will

Our approach to management is to “contribute tocelebrate the 60th anniversary of its founding in 2024.

achieving a sustainable and quality global environ-Over the past 60 years, we have successfully helped

ment and affluent society through chemistry” as statedto build a sustainable, affluent society through theprovision of catalysts. We have contributed to society

We have also formulated Vision 2030 as our long-through the development and production of catalysts

term goal based on this Corporate Philosophy and aim

used in a variety of applications including air purifica-

to achieve it by visualizing our ideals in the three areastion by detoxifying the harmful substances containedof finance, business, and management infrastructure,in automobile exhaust gas, and the manufacture ofand pursuing 16 key drivers as concrete measures.

pharmaceuticals, agrochemicals, fertilizers, electronicmaterials, and other products.

3

in our Corporate Philosophy.

Fulfilling our role in building a sustainable society by developing
new technology
We need to pursue technological development to solve

Our company is working on electrode catalysts, whichsocial issues. Our company will continue to perform

are the core components of fuel cell vehicles (FCVs).

research and development on automotive exhaust cat-

We are pursuing initiatives targeted at development

alysts that produce even higher performance to adaptof next-generation catalysts and the establishment ofto the increasingly stringent regulations on gas emis-

technology to recover precious metals from used elec-

sions. We will also improve technological capabilities introde catalysts.

extraction, recovery, and refining to recycle and reuse

From the perspective of the entire value chainrare precious metals, thereby helping to build a recy-(manufacturing, storage and transport, and usage),cling-oriented society.

areas of application for the technologies we possess

In addition to the initiatives described above, we areinclude manufacturing and effective usage of ammo-

focusing on carbon neutrality as a key area of social

nia as an energy source, aftertreatment of exhaust gas

contribution. Carbon neutrality is a global mission, withemitted through combustion, and other technologies,

more than 150 countries and regions having declaredin addition to the use of catalysts in the manufacture

their intention to achieve this goal and which are pur-and transport of hydrogen.

suing a range of initiatives. Recently, hydrogen and am-

In addition to hydrogen and ammonia, carbon cap-monia are drawing attention as new energy sources thatture and utilization (CCU) is another area where we cando not emit CO2 during use, but our company has been

make full use of the knowledge we have accumulated.

developing products for hydrogen use since the 1990s.

This is accomplished by various means such as direct

Our fuel cell catalyst technology is already being

air capture (DAC) of CO 2 from the atmosphere, meth-used for stationary fuel cells for residential use andanation, which is a process of producing methane from

we are developing technology to achieve higher pow-

CO 2, and e-fuel synthesis.

er output to expand application to industrial fuel cells

As I have described, there are wide range of tech-used in plants, stores, and other commercial facilities.

nological areas where we can contribute. I take pride

The use of hydrogen in mobility is also an importantin the fact that demonstrating such capabilities to help

area of contribution. Many countries are considering thesolve social issues is a mission of our company andapplication of fuel cells for medium- to long-distance bus-

we will continue to pursue technological innovation toes, trucks, trains, ships, and other modes of transport.

achieve carbon neutrality.

Developing human resources willing to take on challenges

Although the business environment surrounding

People are the driving force behind promoting sustain-

than in the past, and work to build a sustainable so-

our company is undergoing major changes aimed atability management and supporting initiatives aimed at

ciety and develop new technologies as we cooperatewith our stakeholders.

In recent years, global warming and other environ-decarbonization, including the transition to renewablesolving social issues. Fostering a spirit of challenge is im-

mental issues have increased in severity, resulting inenergy and the shift to zero-emission vehicles (ZEV) in

portant in order to pursue new innovation in the future.

N.E. CHEMCAT has sincerely worked with society inmounting global-scale social issues. There is a height-

the automotive industry, we intend to promote sus-

We are therefore continuing to build a culture andoperating its business since the company was found-ened awareness of sustainability among the public andtainability management to achieve sustainable growthsystem capable of drawing out the potential of eached. We will continue to promote sustainability manage-

corporations are also being pressured to take steps towhile continuing to respond to society’s needs. We will

employee and establish an environment that encour-ment as a company that continues to be needed andsolve those issues.

build business models and systems that are beneficial

ages each employee to take on challenges by support-

trusted by society, as we think about how we can help

Our company has contributed to environmen-

to society by helping to solve social issues as part ofing participation in new businesses and different proj-

to solve social issues from now into the future.

tal conservation through the business of exhaust

our business activities, in alignment with our Corpo-

ects, and other means.

catalysts, precious metal recycling, and others.

rate Philosophy and Vision 2030.

SUSTAINABILIT Y REPORT 2023

I aim to engage in open innovation even more actively

I would like to ask you, our stakeholders, for yourcontinued support and cooperation.

SUSTAINABILIT Y REPORT 2023

4

Long-Term Vision

Vision 2030

Vision 2030 was formulated to identify the company we want to be in 2030 based on
three areas of finance, business, and management infrastructure, with an eye toward the social
environment we will operate in, in 2050.
To achieve this vision, we will continue to pursue corporate transformation and contribute
more to building a sustainable society and protecting the global environment.

Catalysts are used in a broad range of industries, includ-present (backcasting). The Long-Term Vision identifies

ing the petrochemical, automotive, and pharmaceuticalthe company we want to be in 2030 based on the threeindustries. They have contributed to improvement ofareas of finance, business, and management infrastruc-environmental challenges such as detoxifying vehicle

ture, in order to proactively help solve increasingly di-emissions while also supporting industrial development.

verse social challenges.

Meanwhile, global warming, ocean pollution, food short-

Internal corporate transformation to achieve fun-ages, and other social challenges have been mounting

damental change in the values and structure of ourin recent years. Stronger demands are being made forcompany is essential to achieve Vision 2030. We havecompanies to contribute to the resolution of such chal-therefore specified 16 key drivers as the infrastructure

lenges since the Sustainable Development Goals (SDGs)

and systems for such transformation. By implementing

were adopted by the United Nations General Assembly

these drivers, we aim to establish the internal corporate

in 2015.

structure and propel transformation to provide new val-

Our Vision 2030 was formulated by first forecastingue for catalysts and thereby contribute even more to thethe desired social environment of 2050 and then work-

development of a sustainable society and protection of

ing backwards to connect that specified future to thethe global environment.

Vision 2030

16 Key Drivers to Achieve Vision 2030

To provide new value in catalysts to society
and thereby contribute greatly to thedevelopment of a sustainable society andprotection of the global environment.

FinanceBusinessStrengthen our
financial foundation
focusing on ROIC

Explore new businessdomains to contributeto resolving social
issuesTo build a lean internal processthat helps to increase throughput,
allocate assets needed for business
operations in a planned manner on
the basis of return on invested capital (ROIC), and thereby support thesustainable growth and development of our business and strengthen the financial foundation.

To develop new catalyst technologies and business domains that
contribute to solving such social
challenges as those addressed by
the SDGs, on the basis of the catalyst technologies and customer
relations we have built over theyears, and thereby achieve sustainable growth.

Finance

Management
Infrastructure
Promote ESG
management
To practice sound business management, based on the principles of environment, social, and governance (ESG)
management, build an environmentand structure that allows employees toshare the joy of working for N.E. CHEMCAT and constantly breed innovation incollaboration with stakeholders, andthereby increase our corporate value.

16 Key Drivers to Achieve Vision 2030
5

SUSTAINABILIT Y REPORT 2023

Business(1)

Strengthen business management process and financial base focusing on ROIC

(2)

Restructure the business execution framework to strengthen existing
businesses and create new businesses(3)

Explore new areas and develop new technologies (products)(4)

Strengthen marketing functions and optimize the value chain(5)

Streamline the development process and create new technologies by utilizing digital transformation (DX), etc.

(6)

Establish a lean production process by strengthening the process engineering functions(7)

Improve the overall process through the promotion of Lean Six Sigma(LSS) activities(8)

Strengthen procurement functions and secure a sound supply chain(9)

Optimize the precious metal management process(10) Establish a system to promote corporate-wide digital transformation (DX)(11) Reduce environmental load substances throughout the business activities; prevent environmental and labor accidents(12) Strengthen the management of precious metals and chemical substances at plants

Management
Infrastructure(13) Enforce safe & hygiene workplace and environmental management
through promotion of responsible care (RC) activities(14) Strengthen stakeholder engagement through appropriate information
disclosure and dialogue(15) Establish an HR system to encourage and support aggressive challenges(16) Promote ESG management and create a lively working environment

SUSTAINABILIT Y REPORT 2023

6

History of N.E. CHEMCAT
We have continued to take on the challenge of providing new value through catalysts based on theknowledge and technology we have accumulated over more than a half a century, since N.E. CHEMCAT
was founded in 1964.

Early Years

Breakthrough Period

Expansion Period

Toward the Next Stage of Challenges

As a catalyst manufacturer, N.E. CHEMCAT
contributed to the development of theJapanese chemical industry during thecountry's period of rapid economic growth.

Expanding the exhaust catalyst businessalong with the motorization of society

Eco-friendly business expanded
beyond Japan

Management focused on building
a sustainable society

Founded as Nippon Engelhard Ltd. on April 9, 1964, the com-

In 1979, the company started manufacturing auto exhaust

The company began its global expansion in 1996, and by

The Numazu Plant celebrated its 50th anniversary in Julypany was established with a total of 37 employees as a 50:50

catalysts. As automobile use grew, the health effects of

2002, it had sites in locations including Singapore, Thai-

2020, the head office relocated in May 2021, and the Tsuku-

joint venture between Sumitomo Metal Mining Co., Ltd. andharmful substances contained in exhaust gas, such as

land, and China. In response to stricter vehicle emission

ba Plant marked its 20th anniversary in February 2022.

Engelhard Corporation of the United States. The Ichikawa

carbon monoxide (CO), hydrocarbons (HC), and nitrogen

regulations for diesel vehicles, the company opened theIn April 2021, the company formulated a new Corporate

Laboratory was set up later in the same year. In 1970, op-oxides (NOx), began to raise concern. At that point, the ex-

Tsukuba Plant in 2002 to create a mass production system

Philosophy and started practicing sustainability management.

erations began at the Numazu Factory (now Numazu Plant),

haust catalyst business expanded rapidly due to the tight-

for diesel auto exhaust catalysts.

which is still a base for manufacturing and R&D today.

ening of emissions regulations.

1964–1978

1979–1995

1996–20192020–

While helping to achieve the UN Sustainable Develop-

In order to accelerate decision-making capabilities,

ment Goals (SDGs), N.E. CHEMCAT is now pursuing struc-By manufacturing a wide range of products, including

In June 1989, the company name was changed to N.E.

the company delisted in 2010, and became a 50:50 jointtural reforms to achieve Vision 2030, which outlines thecatalysts, chemical products (precious metal salts, plating

CHEMCAT CORPORATION, and the company went public in

venture between Sumitomo Metal Mining Co., Ltd. and thecompany's long-term direction and aims.

chemicals, electrodes, etc.), as well as liquid gold (luster),

September of the same year.

BASF Group.

and through its precious metal recovery and refining busi-

In April 2022, the new corporate tagline, "Excite the
Imagination," was unveiled.

ness, N.E. CHEMCAT helped promote the development of
the Japanese chemical industry.

N.E. CHEMCATEnglish Logo Mark + Slogan Logo Mark

2022.3.28

Color 4CFirst management teamCatalytic converter

BASF Chemcat (Thailand) Limited

Moved to a new head office in May 2021

"Excite the Imagination" expresses the company's aspiration to bring about new innovation by spurring theimagination. It conveys a passion for building an evenbetter future by fostering excitement and motivation inall employees.

NE CC B L UE
C:9 0 M :5 0 Y:5 K:5
K:7 0

Numazu Factory at the start of operations

7

SUSTAINABILIT Y REPORT 2023

First shipment of auto exhaust catalysts

Mass production equipment for diesel auto exhaust catalysts

SUSTAINABILIT Y REPORT 2023

8

N.E. CHEMCAT Business Fields
N.E. CHEMCAT contributes to achieving a sustainable and quality global environment and affluent
society through the provision of catalysts that support a wide range of industries and help solve
social challenges.

Process Catalysts

Exhaust Catalysts

Process catalysts are used for accelerating chemical reactions or

Substances emitted from plants and other stationary sources

selectively producing specific compounds, and are indispensable

and from the internal combustion engines of vehicles and oth-for industrial manufacturing. We develop and manufacture pro-er machinery are harmful to the environment and to the humancess catalysts used in a variety of fields, from energy plants tobody. Exhaust catalysts convert such harmful substances into

the manufacturing of pharmaceuticals, agrochemicals, fertilizers,

harmless substances through chemical reactions and thereby

and organic electroluminescence. Through these activities, we

make a substantial contribution to solving air pollution and otherprovide support to many aspects of society, from cutting-edge

environmental challenges.

industries to the everyday lives of citizens.

Products

Products

Fine Chemical Catalysts

Stationary Off-Gas Treatment Catalysts

Fine chemical catalysts are used in the process of manufacturing high value-added

The hydrocarbons (HC) and carbon monoxide (CO) contained in industrial emissions

chemicals such as pharmaceuticals and agrochemicals. They are used to produce

are the main sources of air pollution and are a big problem for society as whole. N.E.

antidiabetic and antihypertensive medicine, antibiotics, and other medicine, and

CHEMCAT helps to prevent air pollution by providing DASH catalysts that remove

improve agricultural productivity, thereby supporting the lives of everyone. Fine

volatile organic compounds (VOCs) and other contaminants contained in exhaustchemicals also require a high degree of purity and are manufactured through pro-gas from plants and recover and reuse the thermal energy emitted from them.

duction processes that involve many stages and which generate a great deal ofwaste. There have been demands to reduce waste generation in recent years and

Gasoline Auto Exhaust Catalysts

fine chemical catalysts possessing high activity and selectivity are contributing to

Gas exhaust from gasoline engines contains carbon monoxide (CO), hydrocarbons

more efficient production with a lower environmental impact.

(HC), and nitrogen oxides (NOx), which are harmful substances. We help to prevent
air pollution by providing three-way catalysts that convert these harmful substances
into the harmless substances, carbon dioxide (CO2), water (H2O), and nitrogen (N2).

Gas Purification Catalysts

Regulations on vehicle emissions and fuel efficiency continue to grow stricter world-

Gas purification catalysts refine inert gas to an ultra-high degree of purity by re-wide year after year. We are working to prevent global warming and solve environ-moving minute impurities such as oxygen (O2), carbon dioxide (CO2), hydrogen (H2),mental challenges by working together with automotive manufacturers to develop

and moisture. The catalysts are used in the chemical, steel, machine, and manyand manufacture high-quality catalysts that have superior durability and good puri-other industries with a high need for ultrapure gas. We are also developing meth-fication performance, and low-temperature and high heat-resistance performance.

anation to recycle CO2 and produce methane, the main raw material in city gas, andother carbon recycling technologies aimed at achieving carbon neutrality.

Diesel Auto Exhaust Catalysts
Diesel engines emit less CO2 than gasoline engines, but exhaust higher amounts

Petrochemical Catalysts

Providing value to society

9

SUSTAINABILIT Y REPORT 2023

of sulfuric acid mist, other particulate matter (PM), and nitrogen oxides (NOx), in

Catalysts are essential to the petrochemical and petroleum refining processes andaddition to soluble and insoluble organic compounds. To address these problems,

have contributed greatly to the development of the industry to where it is today.

we are developing and manufacturing catalysts that can be adapted to various

We support affluent living by providing the catalysts needed to produce basic

post-treatment systems such as diesel particulate filters (DPF) to capture particu-

chemicals used in manufacturing apparel, carpet, plastics, and other petrochemi-

late matter (PM) and convert into CO2 and selective catalytic reduction (SCR) cata-

cal products, as well as catalysts that serve as the raw material for the gas barrier

lysts to treat nitrogen oxides (NOx). These catalysts render such substances harm-films widely used in food packaging and for other purposes in recent years.

less and help to protect the global environment.

Supporting industrial development and flourishing lifestyles

Providing value to society

Promoting a livable planet by eliminating substancesthat are harmful to humans and nature

SUSTAINABILIT Y REPORT 2023

10

N.E. CHEMCAT Business Fields

Catalysts for Fuel Cell Applications

Precious Metal Recycling

Fuel cells, which generate electrical energy through the reac-

N.E. CHEMCAT separates and recovers precious metals fromtion of hydrogen and oxygen, are attracting increasing atten-

spent catalysts, including platinum (Pt), palladium (Pd), rhodiumtion as a clean energy technology. We develop and manufacture(Rh), ruthenium (Ru), and gold (Au). Our proprietary process al-

electrode catalysts for fuel cell vehicles (FCVs), and reforming

lows impurities to be removed and the precious metals to be re-catalysts and preferential oxidation (PROX) catalysts needed to

fined to a high degree of purity.

produce hydrogen gas, and we are working to develop a hydro-

We also have precious metal reduction technology to formu-

gen-based society.

late catalysts that use fewer precious metals while offering performance that is equal to or better than conventional catalysts. We
are helping to conserve scarce precious metal resources by pro-

Products
Catalysts for FCVs

viding integrated services, from the development and manufacture of catalysts to the recovery and refining of precious metals.

We develop and manufacture electrode catalysts for FCVs, which are drawing inter-

Initiatives

est as zero-emission vehicles that will help achieve carbon neutrality. We are focusing on improvement of platinum (Pt) catalysts and development of next-generation
catalysts (platinum alloy catalysts and platinum core-shell catalysts) and are contrib-

Initiatives Targeting Effective Use of Precious Earth Resources

uting to resource recycling up to precious metal recovery from electrode catalysts.

Electrode Catalysts for Stationary Use
Fuel cells use hydrogen to generate heat and electricity, and are an essential

Technology to reduce use of
precious metals

Precious metal recovery
technology

Reduction in use of precious metals by improving
catalyst activity and durability

Recovery and refining of high-quality precious metals
through the proper extraction and recovery technology

system for hydrogen use. For stationary fuel cells, we develop and manufacturereforming catalysts that convert methane to hydrogen, such as catalysts needmonoxide (CO). We will continue our work to provide catalysts offering even highDevelopment
andmanufacturingperformance and will support the proliferation of clean energy as the demand for(Catalysts)

ed to produce hydrogen from city gas, and PROX catalysts that remove carbon

Use(Catalysts)

Recovery(Precious metals)

Refining(Precious metals)

it continues to grow in the future.

Catalysts for Hydrogen Value Chain
The use of catalysts is being considered for each step of hydrogen production,

The Numazu Plant has been involved in the precious metal recycling businessstorage, transport, and use. Reforming catalysts and PROX catalysts are used in thesince N.E. CHEMCAT was first established.

production process, and the use of catalysts is also promising for the technology to

In addition to metal recovery, our recycling technology is also used for refin-

extract hydrogen from hydrogen carriers in the storage and transport steps. Cata-ing high-purity adsorbents for waste treatment and high-purity semiconductor

lysts are also effective at removing nitrogen oxides (NOx), nitrous oxide (N2O), andencapsulants and raw materials for encapsulants.

other harmful substances generated by mixed combustion of hydrogen and ammonia (NH3) during use. These hydrogen-related catalysts support the hydrogenvalue chain and help solve environmental, resource, and other social challenges.

Providing value to society

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SUSTAINABILIT Y REPORT 2023

Facilitating the adoption of clean energy and promoting
a sustainable society

Providing value to society

Promoting the effective use of scarce resources and helping
to build to a recycling-oriented society

SUSTAINABILIT Y REPORT 2023

12

By continually advancing the technologies we have amassed in developing our catalyst, precious

Helping to Build a Sustainable Future1

Building ahydrogen-society

Recently, hydrogen has seen resurging interest as anext-generation energy source that does not emit CO2.
In order to promote a carbon-free hydrogen society,our company is working to develop the catalysts
necessary for more efficienthydrogen production, storage,transport, and utilization.

2

metal recovery, and other businesses, we aim to help create an even more sustainable, affluent world
for future generations.

Technologicalinnovation

3

Semiconductors are essential for the advancement of thetechnologies being adopted for the digital transformationof society, including AI, IoT, and 5G. In order to achievecarbon neutrality, energy-saving and other sectors
need semiconductors with higher
performance and efficiency. We
will continue to contribute to thesetechnological innovations with thepower of chemistry.

A major transformation is underway in the mobility
sector as part of the effort to achieve carbon neutrality
by 2050. N.E. CHEMCAT is working to develop advanced
technologies to meet society's changing mobility needs,
including vehicle electrificationand the use of green fuels.

4

Supporting
healthcare

Our catalysts are also used in the production ofpharmaceuticals and fine chemicals. The developmentof high-performance catalysts enables chemical
synthesis with less impact on the environment. By
promoting the development ofsterilization and antibacterial
applications, we are helping
people to lead healthier lives
worldwide.

4

2

1

Next generation
mobility

3

5
6
8

7

5

Resource recycling

Precious metals are scarce and important resources.
This is why N.E. CHEMCAT is helping to recycle theseminerals by utilizing advanced technologies to recoverthem from spent catalysts. We are also promoting
more effective resource use andwaste reduction by developing
catalyst technology for thechemical recycling of plastics.

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SUSTAINABILIT Y REPORT 2023

6

Utilization of
captured CO2

Technology for capturing and recycling CO2 is attracting
attention as a contribution to the fight against climatechange. We are improving the performance of catalysts
used in the production of green fuels synthesized from
CO2 and hydrogen, which willfurther improve the efficiencyof each process stage, from CO2
capture to green fuel production.

7

Cleaner air
and water

Catalysts are indispensable for decomposing anddetoxifying harmful substances found in automobileand factory emissions and in industrial wastewater.
In order to contribute to a more livable planet, weare advancing our purification
technology to ensure cleaner
air and water.

8

Sustainable foodsupplyWe are using the power of chemistry to help solve food shortages,
which are becoming more serious due to global climatechange and population growth. In order to enhance the dietsof people worldwide, we support the production of agriculturalchemicals and fertilizers with catalyst
technology, while also promoting thedevelopment of high-performance
catalysts that enable long-term foodstorage and reduce food loss.

SUSTAINABILIT Y REPORT 2023

14

Sustainability Management
Based on its Corporate Philosophy, N.E. CHEMCAT contributes to achieving a sustainable society
through its business activities. We are implementing sustainability management to achievesustainable growth as a company that is beneficial to society.

 Elements for Practicing Sustainability Management
To ensure the effective practice of sustainability management, we categorized the chosen material issues into threeelements and identified the relationship with each one. The
elements are: (1) creating products that help solve social
issues; (2) establishing sustainable supply chains and op-

Making the Most of Our Strengths to Help Solve Social Issues

erations; and (3) building solid management infrastructure.

Environmental challenges such as climate change, marine

has helped develop the chemical industry, while promoting

pollution, and deforestation have worsened in recent years.

the prosperity of society. We have also played a major role in

Meanwhile, society faces many other issues such as poverty

reducing environmental impact, including through air pollu-

and human rights violations. In order to make society moretion control.

Moreover, each material issue has been arranged fromthe perspective of important ESG issues and the SDGs. Specific individual issues are now incorporated into our Vision

help achieve the UN Sustainable Development Goals (SDGs).

lated over the decades, we are well-positioned to address

The underlying purpose of companies is being questioned,

challenges such as climate change, sustainable energy, Material Issues (Materiality)

and the public is asking what they can do to help overcome

food preservation, and healthcare. With this considerable

these challenges.
Since N.E. CHEMCAT’s founding in 1964, the company

potential to help build a sustainable society, a key mission
for N.E. CHEMCAT is to fully demonstrate its strengths byClassification

has been focused on catalysts as well as precious metal

helping society overcome these challenges.

Material issues
Developing products to
help solve social issues

recovery and refining. Through these efforts, our company

E

Value Creation at N.E. CHEMCAT
businesses and products based on ESG awareness, thereby

Corporate Philosophy, we are working to strengthen rela-

helping to solve the social issues identified by the SDGs. In

tionships of trust with our diverse stakeholders. In addition,

doing all this, we seek to improve corporate value and help

we are striving to ensure sustainable operations and createbuild a sustainable society.

Corporate
Philosophy

Stakeholder engagementS
CSR procurement

Business activities
Creating ESG-focusedbusinesses and products

Improvingcorporatevalue

As part of our mission to help build a sustainable society,
we have identified important social issues that we can andmust prioritize by leveraging our strengths, specifying theseas our material issues.
 Material Issue Identification Process
To identify our material issues, we set up an ESG & SDGs
Promotion Project team made up of employees and held
discussions for about five months. Based on our past andpresent initiatives that are closely related to ESG and SDG
issues, and a discussion of the company's vision for the

SUSTAINABILIT Y REPORT 2023

Building of stable
management infrastructure

Realization of safe andsecure workplacesG
future, we identified the issues N.E. CHEMCAT should address. The issues were categorized into the two areas ofand the results were mapped.
Through this mapping, initiatives with both high economic value and social value were identified as key candi-

Manufacturing

Sales

1
Developing
products to
help solve
social issues

Sustainable operations
Fostering human resources and a corporate culturethat value challenge-taking

SDGs

Workplaces that value diversity

Fostering humanresources and a corporate
culture that value
challenge-taking

date issues. After consulting external experts, eight material issues were chosen.
Workplaces that value
diversity

Solid management
infrastructure

Financial foundation, ensuring safe, secure work
environments, and stakeholder engagement

Details

SDG-based targets- Developing eco-friendly products- Developing products that enhance health and safety- Developing resource-saving products

Targeting carbon neutrality by 2050,
reducing the environmental impact of
all business operations- Continuing to reduce CO2 emissions, water
use and waste in all business activities- Practicing high-efficiency energy
management- Implementing Responsible Care (RC)
activities

Establishing systems to minimize theuse of hazardous substances andprevent environmental accidents

Continued efforts to earn the trust ofsociety as a fair company
Building a sound value chain, including
the avoidance of conflict minerals

Creating efficient business management
systems based on numerical targets
Promoting compliance and establishing acomprehensive risk management systemeconomic value and social value, before being prioritized,Rawmaterial
procurement

Helping to solve environmental
challenges and other social issues
through business activities

Developing management systems andorganizations for disclosure of management
information in a timely and appropriate way

Building asustainable
society

Identification of Material Issues

15

Reducing environmental
impact across the entire
supply chain

Important ESG issues

Good communication with stakeholders

 Value Creation Story

Helping tosolvingsocial issues(to achieve
the SDGs)

Product
planning

3

With the technology and knowledge we have accumu-

In accordance with our purpose, which is set forth in our

Building a sustainable supply chain(practicing CSR procurement, andreducing environmental impact)

2030, and we are pursuing various initiatives accordingly.

sustainable going forward, it is important for companies to

ESG-focusedsustainable operations

2- Deepening mutual understanding with customers,
suppliers, employees, and shareholders- Enhancing corporate branding- Strengthening employees' sense of belonging- Establishing procurement policies to avoid conflictminerals and promote green procurement, etc.
- Examining supplier selection andimplementing monitoring- Enhancing the compliance promotion
system- Developing crisis management andresponse systems (including PR activities
and BCM)- Improving business efficiency based on
thorough ROIC management- Setting and managing financial targets

Constructing a system to comprehensively manage environmental
protection, as well as health and safety- Creating a comprehensive system toprevent workplace accidents (RC activities)

Creating workplace environments where
human rights are respected andemployees can work with peace of mind

- Eliminating workplace harassment

Clarifying employee roles and targets,and creating of a system thatappropriately evaluates theirachievements- Clarifying employee roles and targets aswell as required conduct- Developing a fair, transparent personnel
evaluation system

Creating work environments where theindividuality and diversity of employees
is respected and where they areencouraged to take on challenges- Developing human resources who can takeon challenges- Fostering a corporate culture thatwelcomes diverse opinions and encourages open and frank discussions- Increasing the recruitment and promotionof diverse human resources- Diversifying work styles (remote work, etc.)

SUSTAINABILIT Y REPORT 2023

16

Feature Article:

Realizing a Decarbonized Society through Innovative Technologies
Conversation

Helping to make fuel cellvehicles (FCVs) a practical reality
with the power of catalysts
N.E. CHEMCAT has positioned the Fuel Cell Catalyst Businessas one of the important pillars for achieving Vision 2030. We
invited Dr. Akihiro Iiyama, a specially appointed professor
at the University of Yamanashi and leading authority on thedevelopment of fuel cell vehicle (FCV) systems to discuss
topics such as trends in the practical use of hydrogen in society
and FCVs in Japan and overseas, as well as the challenges ofcatalysts in the future with Hiroshi Igarashi, Vice President ofN.E. CHEMCAT and General Manager of our R&D Center.

Hiroshi Igarashi

Vice President, General Manager of R&D Center

Prof. Akihiro Iiyama

Specially Appointed Professor, Director of the Hydrogen and
Fuel Cell Nanomaterials Center, University of Yamanashi

Why hydrogen now?

17

itself from natural gas imported from Russia and transi-

pectations. Moreover, the Japanese government also an-tion to new energy sources. The target for introduction

nounced an additional new intermediate target for 2040,

of hydrogen has doubled, also out of consideration foreven though they have only set targets for the domesticenergy security.

introduction of hydrogen in 2030 and 2050. The concrete

Igarashi: The U.S. has also announced a National Clean

plan, which also includes energy exports from Japan, is an

Hydrogen Strategy. Just the other day, at the presentation

unprecedented move, and it is having a strong impact on

session related to energy that I attended with you in thehydrogen-related industries.

U.S., I was surprised by the statement that the hydrogen― How is the industrial world taking the govern-

fuel cell market size has increased from the previous level

ment’s activity?

of several tens of millions of dollars to several billions of

Igarashi: As a company, up to this point we haven’t known

dollars. A huge budget has also been set for establish-

the specific indicators for how far we should proceed on

ing infrastructure and I feel that the budget for hydrogen

R&D, how much volume to target, by when, and to what

energy will really increase rapidly and keep pace. Europe

level. To be honest, I thought the hydrogen conversion as

and the U.S. are also investing in building a supply chain

an energy source would be difficult by only using surplus

to sustain a hydrogen-based society.

electric power and renewable energy to produce hydro-

Iiyama: The Japanese government has also reacted togen. However, the fact that Japan has determined the pol-such movements with acute sensitivity and announced anicy as a country also clarifies our policy on investment as

updated Basic Hydrogen Strategy in June 2023. This strat-

a company. I see the national strategy as a strong push

egy has set a target of 15 GW for the introduction of wa-

from behind.

ter electrolysis equipment for 2030 in companies related

Iiyama: Seeing the movement at the national level gives

to Japan, both in Japan and overseas. It is noteworthy thatme a strong sense of wanting to develop hydrogen into aJapan has set a target in both Japan and overseas, or incompetitive industrial field. For example, using the waterother words, a target for Japan’s share of the global pow-

electrolysis equipment of Japanese companies in the Mid-er generation market. I know the Japanese government

dle East and other areas with an abundance of renewable

is thinking of a plan for expanding the water electroly-energy to produce clean, cheap hydrogen and transport

sis industry in Japan overseas and think companies are

it to Japan. I think movement in that direction will acceler-

probably getting a fresh sense of the enormity of the ex-ate from this point on.

― To begin with, Professor Iiyama, please tell me about

when necessary. They are also using hydrogen as alter-

the Hydrogen and Fuel Cell Nanomaterials Center

native fuel, as a heat source for plants and other facilities.

where you serve as Director.

Efforts have also emerged to produce synthetic fuel (e-fuel)Iiyama: The University of Yamanashi has put effort into

using hydrogen and atmospheric CO2 as raw materials― Catalysts are essential technology in thinking about

in the U.S. It is the role of catalyst manufacturers such as

research on catalysts for fuel cells since the 1960s. The

and use this as a new energy source. Clean hydrogen is

the value chain for hydrogen, as hydrogen increases in

N.E. CHEMCAT to provide a stable supply of high quali-

university’s efforts were recently recognized and the Fuelthe key to both of these efforts.

importance. What challenges do catalysts present?

ty catalysts that offer high performance. I am convinced

Cell Nanomaterials Center was established in 2008 as

Igarashi: Looking back, Japan pursued research on the

Iiyama: Catalysts present the problem of resources forthat it will be difficult to develop practical applications ofa project of the New Energy and Industrial Technology

use of hydrogen early on, since the Sunshine Project in

iridium, which is a rare metal. As a catalyst with high ox-

innovative catalysts, including the cost involved, as long

Development Organization (NEDO). The name was sub-1974. They were looking at hydrogen use from the per-ygen generation activity and high durability, iridium is

as we limit our research to the current trajectory. We aresequently changed in 2022 in light of the growing impor-spective of energy conservation at the time, but hydrogenthe first rare metal I would mention. The undergroundtherefore aiming to develop high performance catalysts

tance of hydrogen.

is now drawing interest as a CO2-free energy source and,reserves and the amount extracted are both extremelythat have the potential to change the world if we can de-

Igarashi: Interest in hydrogen has surged globally sinceunlike electric power, it is viewed as an energy source that

small. I look forward to N.E. CHEMCAT using its techno-

velop them successfully.

the Declaration of the Carbon Neutrality Coalition inis easy to use because it is possible to store and transport

logical prowess to make progress on resource conserva-

Iiyama: Expanding the discussion to the entire hydrogen2021, hasn’t it?

it. I think hydrogen is drawing interest as a new energytion, on that point.

value chain, how do you think it will develop?

Iiyama: Maximum utilization of renewable energy is nec-

source due to these advantages.

Igarashi: We, of course, also recognize the problem with

Igarashi: The use of ammonia and other hydrogen com-essary to achieve carbon neutrality. The key to that is the― How will the world approach hydrogen in the future?

using a large amount of iridium. We are therefore devel-

pounds to store and transport hydrogen, and the use ofhandling of surplus electric power.

Catalysts, the key to the hydrogen value chain

Iiyama: Europe is where conditions have changed rap-

oping catalysts that can minimize the amount of iridiumhydrogen to produce clean fuel are examples. Catalysts

In Europe, surplus electric power is used to operate

idly with respect to energy sources. Europe was pursu-

used as much as possible, and are also taking on the chal-play an important role in either case so we are also keep-

water electrolysis equipment. They are gradually install-ing the introduction of clean hydrogen as part of thelenge of open innovation with the National Laboratories

ing in mind contributions in these areas.

ing systems for converting electric power to hydrogen

trend toward carbon neutrality when Russia suddenly

and storing it, and converting it back to electric power

invaded Ukraine. As a result, Europe had to rapidly wean

SUSTAINABILIT Y REPORT 2023

SUSTAINABILIT Y REPORT 2023

18

Feature Article:

Realizing a Decarbonized Society through Innovative Technologies
Roadmap to developing a hydrogen-based society andpractical use of FCVs

with high activity on the surface of catalyst particles, orwith auto manufacturers overseas. However, just as you

apply in one layer on the shell, and use different materi-stated, we will not aspire to game-changing innovation

als for the core. This will drastically reduce the amount ofunless we set a target that strikes us as impractical now.

platinum, a rare metal, used. Ultimately, how far catalyst― The proliferation of FCVs is a major key to expanding theto establish hydrogen stations in the necessary locations,

My dream for the future is to make the FCV a car for thedevelopment on a monoatomic layer progressed?

demand for hydrogen. How do you think it will proceed?

so this will likely make practical implementation possible.

general public. I want the presence of the FCV to be highIgarashi: As I mentioned earlier, we are engaged in joint

Iiyama: We need to divide FCVs into passenger cars andIiyama: However, we are not just ignoring passenger carsenough so it is the first thing everyone thinks of whendevelopment with the U.S. National Laboratories and, tocommercial vehicles and think about them separately. In

because of this. Research on FCVs as large commercial

they think about buying a car.

be honest, I cannot discuss the details at present. How-the passenger car category, there are a huge number ofvehicles is proceeding at NEDO as well. If this research isIiyama: I look forward to the development of theever, I want to create a world in which FCVs are routinely

competitors such as battery electric vehicles (BEVs) andsuccessful, it is conceivable that FCVs hold future promise

next-generation catalysts and core-shell catalysts thatdriving around by around 2040. To achieve that, I thinkplug-in hybrid vehicles. The market is also established. On

in segments such as large vehicles where they are com-will make that possible. Use platinum and other materials

our proposal for 2030 needs to be concrete in form.

the other hand, we cannot say that a sufficient number ofpeting with BEVs, even in the passenger car category.

hydrogen stations have been established to provide the

Igarashi: We are also working with the auto manufactur-

infrastructure for FCVs. At present, it is difficult to makeers to develop FCVs, but this is mainly focused on com-

progress on establishing hydrogen stations because of

mercial vehicles, and on large passenger cars, after that.

the cost, so it is hard to choose an FCV for a passenger

If FCVs spread to this genre, I think the means to solve

car as a practical matter.

the problem of infrastructure will become clear. In Europe

Igarashi: However, the situation changes completely inand the U.S., hydrogen stations are being establishedthe case of commercial vehicles.

based on the premise of accommodating long-distance― Hydrogen is bursting with potential and it is essential

Iiyama: That’s true. For example, BEVs are not practicaltravel. If FCVs begin to become popular as commercial

to have the human resources to achieve that potential.

as large trucks because their continuous driving range is

vehicles in Japan, this will likely spur efforts to establish

How are you thinking of developing human resources?

limited. In that case, the competitors in the commercial

the infrastructure to stimulate demand here as well.

Iiyama: We are implementing two initiatives at present.

vehicle category are e-fuel, hydrogen engines, and similar― Catalysts play an important role in practical applica-

One is conducting a Hydrogen and Fuel Cell Industrial

technologies, but FCVs are the most practical option intions for FCVs. Practically speaking, what technologicalTechnology Human Resources Training Course for techni-terms of cost and efficiency in that case. I therefore thinkrequirements and standards would suffice?

cians in small and medium-sized companies in Yamanashi

that widespread proliferation of FCVs will begin from

Iiyama: NEDO has created a roadmap for the level of re-Prefecture, under contract with the prefecture. This train-large commercial vehicles.

quirements and has disclosed the numerical values thating course provides an opportunity for participants to

Igarashi: In the U.S., there is movement toward using

should be met for catalysts used in fuel cells for large

attend lectures by guest lecturers who are engineers in

FCVs for trans-continental trailers and other transport ve-

commercial vehicles. The values set are on a complete-companies that are at the forefront of the hydrogen fuelhicles. If transport is limited to certain routes, it will sufficely different level than before. The operating temperaturecell field and learn new skills, including the actual technol-

was set at 95°C up to this point, but stable operation is

ogy used in fuel cells.

now required at 120°C, a far higher level. The target is so

19

took the place of the customary greetings when meeting

SUSTAINABILIT Y REPORT 2023

Developing human resources
for the next generation in thefield of hydrogen

The other initiative is a Hydrogen and Fuel Cell Class

Akihiro Iiyama

high that it strikes catalyst researchers as absurd.

designed for local elementary and middle school students.

Igarashi: It is certainly an inconceivable target, in a

I want the youth who will be responsible for the future tosense. In my view, achieving this target will necessitate

learn what is exciting about hydrogen. In that sense, thejoint development in which materials manufacturers work

new Clean Energy Chemistry Course established in thewith technology manufacturers as a team.

University of Yamanashi Faculty of Engineering in April

Iiyama: I see the establishment of an extremely high2024 is also one way to develop the human resources whotarget as the flip side of the sense of urgency. In short,

will be responsible for hydrogen energy in the future.

pursuing technological development along conventional

Igarashi: I think excellent talent will emerge from thoselines cannot overcome the limitations, so it will require

initiatives. N.E. CHEMCAT also has great expectations ofmaterial informatics and other types of disruptive innova-

your initiatives, Professor Iiyama. As you mentioned, theto innovate. I pay more attention to “creating the environ-tion. Innovation is essential in order to achieve the level ofskills of young people are essential to R&D. There are alsoment to develop people” rather than “developing people.”

practical application we want to see in 2040.

cases in which innovative ideas waft in from people out-

Iiyama: Our discussion today has given me a fresh aware-

Igarashi: I have been involved in fuel cell development forside of specialized areas. We therefore also make a con-ness of how catalysts are used in manufacturing and a wide

30 years. At the time, I thought that FCVs would be driv-

scious effort to give form to small insights and discoveries.

range of other areas in society, in addition to hydrogen, anding all over the world in 30 years’ time. Many researchers

It is extremely important to have an environment where

how essential catalysts are to achieving carbon neutrality. I

held the same view, so much so that the comment “it isn’t

everyone can debate ideas and technology, regardless of

think there is business for your company at each point, so keep

going as well as we expected and we are really struggling”

their position in the hierarchy, and stimulate one anotherup the good work and do not miss out on such opportunities.

Joined a major auto manufacturer after graduating from The
University of Tokyo. After working on R&D on fuel cells, EV
systems, and other topics and serving as the General Manager of the Fuel Cell and EV System Laboratories, he became a
specially appointed professor of the University of Yamanashi
Graduate School for Engineering in February 2015. Professor
Iiyama performs research on automotive fuel cell systems,
electrode catalysts, electrolyte materials (membranes), MEA,
and other areas. PhD, Engineering.

SUSTAINABILIT Y REPORT 2023

20

Environmental Initiatives

ENVIRONMENT

Every company has a social responsibility to be proactive in its efforts to protect the global environment.
N.E. CHEMCAT seeks to minimize environmental impact in all processes of its business activities.

Environmental Management
Our Corporate Philosophy includes the commitment tofulfill corporate social responsibilities and seek to co-exist
with the environment and society around us. To further
promote this, N.E. CHEMCAT has established an environmental policy and is actively engaged in environmental
protection activities.

Environmental Policy
1. Under our Responsible Care Policy, we consider
global environmental conservation to be one ofour most important missions. We strive to reduce
the environmental impact of our business activities
with help from the creativity and ingenuity of all our
employees. We also actively promote business activities
that aim to control environmental pollution.
2. As one effort to fulfill our key mission of conserving
the global environment, we properly manage chemical
substances while taking into consideration technicaland economic factors. This includes the managementof substances in all equipment, parts, and productsthat we design, manufacture, and deliver.

(kl: Crude oil equivalent)
20,00016,640

Environmental Education
In addition to providing employees with our environmental manual, we conduct education and training to improve
employee environmental awareness and to comply with
relevant environmental laws and regulations.

Frequency

Internal auditor course

Once a year

Environmental safety patrol

Four times a year

Environment Month (Message from the
President)

Once a year

Emergency equipment training

Once a year

High pressure gas (LNG) leak training

Once a year

Chemical leak and emergency shutoff
valve training

Once a year

Chlorine gas leak training

Once a year

Environmental Conservation Committees have been established at each plant to promote initiatives related toenvironmental conservation, chemical substance management, and energy, as part of our Responsible Care
(RC) activities.
Initiative progress is reported to the supervisory company-wide RC Committee chaired by the General Managerof the Production and Technology Div. (See P. 24 for RC
Activities and RC Promotion System)

Environmental Management System
N.E. CHEMCAT has obtained ISO 14001 environmental
management system certification, and the company's system is constantly being enhanced. We have also preparedan environmental manual, and conduct environmental activities as part of daily operations.
Business Sites with Environmental Management System
Certification
ISO 14001:2015

Numazu Plant, Tsukuba Plant

16,23817,151

Annual Water Use and Industrial Wastewater Discharge
Water use discharge(Thousand m )
1,000
912
2019

2020

2021

2022

SUSTAINABILIT Y REPORT 2023

(FY)

868

813

800

821

773
623

600

Target to Reduce Greenhouse Gas
Emission Intensity

Target to Reduce Greenhouse Gas Emission Intensity
Greenhouse Gas
emission intensity

50%
reduction

Achievement ofcarbon neutrality

Promote Energy Conservation2013(Base year)

2030

2050

661

200
0

2019

2020

2021

2022

(FY)

Effective Resource Use

50
0

788

400

We have set a target to achieve a 50% reduction in ourgreenhouse gas (GHG) emission intensity by 2030, compared to the 2013 level. GHG emissions are considered tobe the cause of global warming, and we are pursuing initiatives to reduce them.

(FY)

Initiatives for Target Achievement- Energy conservation and loss reduction measures for electricity and liquefied natural gas (LNG) use (installation of LED
lighting and higher-efficiency air conditioning equipment)- Adoption of highly energy-efficient equipment and technology

 Precious Metal Recycling
Platinum (Pt), palladium (Pd), rhodium (Rh), ruthenium(Ru), and other precious metals can be found in spent
catalysts. Since they are important resources, N.E. CHEMCAT has its own facilities for recovery and refining of these
metals. High-quality precious metals can be separated, recovered, and refined using appropriate technology. This istrue even when the post-use precious metal catalyst contains multiple precious metal types, additives, and/or toxic
substances that accumulate during use.
Each metal is recovered with a purity of 99.9% or higher
purity as shown below.

- Improvement in development and production efficiency- Adoption and expanded use of renewable energy

Annual Greenhouse Gas Emissions and Emission Intensity*(ton)
50,00040,00030,000100%
GHG emission
Greenhouse Gas Emission Intensity

73.3%
32,246
26,64670.5%
30,55467.8%
30,830

(%)
100
80

63.9%
32,92560

20,00040

10,000

20

0

2013
2019
(Base year)

2020

2021

2022

*GHG emissions with 2013 emission level set as 100%

21

Industrial wastewater discharge

3

5,000

(%)
100

Our Energy Management Committee promotes companywide energy plans, including the adoption of new energysaving technologies.
We have also positioned dedicated efforts to reduce environmentally hazardous substances and prevent environmental accidents and occupational accidents and injuries
in all business activities as one of the 16 key drivers toachieve Vision 2030.
While energy consumption increased along with an increase in our operations in FY2022, we are implementing
measures to reduce CO2 emissions, including setting energy
conservation targets at each office and plant, making improvements to development and production processes, and installing high-efficiency equipment to achieve energy savings.

15,929We have installed our own water supply equipment andare working to minimize water usage by recycling water.

10,0000Initiatives to Reduce Environmental
ImpactPromotion System for Environmental
Management

15,000

FY2022 Environmental Training Programs
Training name

Effective Water Use

Annual Energy Consumption

0
(FY)

Pt

Pd

Rh

Purity of 99.95%
or higher

Purity of 99.95%
or higher

Purity of 99.9%
or higher

Ru

Au

*

Purity of 99.99%
or higher*Ruthenium is recovered as ruthenium chloride

We are developing new adsorbents and further improving other recovery technology to enable more efficientprecious metal recovery.

SUSTAINABILIT Y REPORT 2023

22

Responsible Care Activities

Environmental Initiatives

Waste Reduction

Management of Chemical Substances

Wastewater sludge accounts for the largest volume ofwaste emitted by the company. In order to reduce thiswaste, we have been enhancing our production processes
and updating equipment and machinery.

Along with managing chemical substances handled internally, we are promoting chemical substance management
for all raw materials and products used in our processes
from design to manufacturing and delivery.

Annual Industrial Waste Generation

 Compliance with Chemical Substances Regulations
N.E. CHEMCAT complies with all relevant laws and regulations including Japan's Act on the Regulation of Manufacture and Evaluation of Chemical Substances (Chemical Control Law), Act on the Assessment of Releases ofSpecified Chemical Substances in the Environment and
the Promotion of Management Improvement (Chemical
Management Law), and Industrial Safety and Health Act.
The appropriate management procedures are stipulated
in our Chemical Substance Management Regulations, andchemicals are being properly managed accordingly.

(ton)
1,000
800
600

645

741

709

606

400
200
0

2019

2020

2021

2022

(FY)

Amount and Percentage of Industrial Waste Reusedand Recycled
(ton)
1,200
900
600

Amount reused
89.8%
92.8%

579

658

Percentage recycled

95.6%
708

94.1%
75
570

50
25

300
0

(%)
100

2019

2020

2021

2022

0
(FY)

 Management of Chemical Substances Containedin Products
In the product design and development stage, we clarify
the management standards for chemical substances contained in products to be applied at each stage, from raw
material purchase to product manufacturing and delivery.
This allows us to promote appropriate chemical management across the supply chain.
In order to manage chemical substances contained in
products throughout the supply chain, the key is to appropriately manage chemical substances contained in intermediates and products that are the result of chemical
agent conversion.
At N.E. CHEMCAT, we not only manage the amounts ofchemical substances found in chemical agents used in intermediates and products; we also manage the amountsof and changes in chemical substances in the manufacturing process. This extends to the prevention of any contamination.
We have begun handling chemical substances according to the JAMA and JAPIA Guidelines for the Managementof Chemicals in Products published in December 2022.

ENVIRONMENT

N.E. CHEMCAT emphasizes Responsible Care (RC) activities as one of its 16 key drivers for achieving
Vision 2030 and is actively practicing them.

RC Activities
RC activities are being promoted by chemical industry associations in more than 70 countries worldwide. RC is avoluntary initiative for members of the chemical industry
to implement and improve their environmental safety measures. Participating companies pledge to ensure environmental protection, health and safety throughout the life
cycle of their chemical products, from development, manufacturing, and distribution, to use, final consumption anddisposal. Since fiscal 2020, we have been participating inmeetings of the Responsible Care Committee establishedby the Japan Chemical Industry Association ( JCIA). Ourparticipation involves presentation of activity results andengaging in dialogue withother members, and the aim
is to earn the further confidence of society.

Responsible Care Policy
We regard environment protection, safety and health as
the highest-priority issues, and we engage in the following
voluntary and ongoing Responsible Care activities.
1. We strive to reduce environmental impact and protect
the environment throughout the entire life cycles of our
products, from development to disposal.
2. Based on the principle of "safety first," we aim for zero accidents and occupational injuries, and we ensure the safety of all onsite personnel and local community members.

RC Promotion System
RC Committee

Committee Secretariat(Production and Technology Div.)

Head OfficeNumazu Plant

Tsukuba Plant

Plant RC
Committee

Plant RC
Committee

Head Office RC
Committee- Health and Safety
Committees- Health and Safety
Committees- Health Committees- Environmental
Conservation
Committees- Environmental
Conservation
Committees- RC Subcommittees- RC Subcommittees

Each department
and section

Each department
and section

Human Resources Dept. andCorporate Administration Dept.

- RC Subcommittees

RC Management System
N.E. CHEMCAT has adopted the Responsible Care Management System (RCMS) to promote the company's RC activities. The RCMS satisfies the requirements of ISO 14001 andOSHMS (ISO 45001), and activities have been clarified foreach management practice code.
RC Activities (Six Management Practice Codes)
Code 0 Management system

3. We verify the safety of chemical substances found in the
raw materials, intermediate products, and final productsthat we handle and will take into consideration the healthof everyone connected to our business activities, including employees, logistics personnel, and customers.

Code 1
Environmental
protection

Code 2
Process safety anddisaster prevention

Code 3
Occupational
health & safety

We publicly release the results of the above activities andmaintain appropriate communication with stakeholders.

Code 4
Distribution
safetyCode 5Chemicals andproduct safety

Code 6
Dialogue withsociety

Supply Chain and Management of Chemical Substances Contained in Products

Purchasing stage
Chemical agents

Molding and firing, etc., after
blending and reaction(Raw materials)

Information on
chemical
substances
contained inpurchased products
SDS, chemSHERPA, etc.

23

SUSTAINABILIT Y REPORT 2023

Manufacturing stage

Confirmation

Conversion to Information on Chemical
Substances Contained in Purchased Products
based on manufacturing information
Conversion rules, conversion logic, anddesign data for conversion

Delivery stage
Products and intermediates(Precious metal complexes, etc.)

Information on
chemical substances
contained in products
to be delivered
SDS, chemSHERPA, etc.

RC Promotion System
We have established an RC Committee to promote Responsible Care activities as well as safety and environmental protection activities.
Based on the priority points of the Responsible Care
Policy, the committee manages execution of the actionplans established by each plant for achieving their targets.
Activities in FY2022 were implemented in accordancewith the Responsible Care Manual produced in the previous year. RC verification by JCIA is scheduled at the Tsukuba Plant in FY2023.

RC Audit System
Based on the RCMS, RC audits are conducted annually ateach plant.

SUSTAINABILIT Y REPORT 2023

24

Together with Customers: Quality Assurance Activities
Since its founding, N.E. CHEMCAT has provided high-quality products and services that earn theconfidence of customers and meet their expectations. We strive to improve our quality on a daily
basis so that we can work with customers to provide them with optimal solutions.

Quality Assurance Activities
Quality Policy
In order to ensure our customers receive high-quality
products, we have implemented a Quality Policy and arealways striving to further improve quality.

Quality Policy
1. This is our quality policy:(1) We provide quality that satisfies customers andearns their confidence.
(2) Through the efforts of all employees, we aim forcontinuous quality improvement.
2. In order to fulfill this quality policy, we implement the following measures:(1) Create a quality management system that is ISO
9001 compliant, and strive for continual system improvement.
(2) Ensure that each department sets and implements
its own quality targets, monitors their progress, andreviews them regularly.
(3) Review the appropriateness of our quality policy
during management review activities.
(4) Inform all members of the organization of our quality policy and enhance their understanding.

Continuous Quality Improvement
N.E. CHEMCAT makes the following efforts to continuously
improve quality.
 Internal Bodies for Quality Improvement
The company has established the following bodies for
quality improvement, and has established a system enabling departments to cooperate for enhancing quality.
- Audit Reporting Committee- Quality Committee- Quality Manufacturing Liaison Committee- Quality Defect Reporting Committee- Quality Patrol Global Cooperation System
Our technology transfer system has been created to enable manufacturing of auto exhaust and other catalysts
developed in Japan at overseas production plants without
any loss of product performance.
We also regularly share technical information with the
BASF Group and adopt the latest technology to further enhance quality.
Global System of Cooperation with the BASF Group

Quality Management System
At N.E. CHEMCAT, the General Manager of the Production& Technology Div. is ultimately responsible for service
quality assurance and product liability, and oversees thecompany's quality assurance activities.
Our quality management system has been certified under the ISO 9001 and IATF 16949 programs, and we provide a stable supply of high-quality products.
Business Sites That Have Acquired Quality Management
System Certification
ISO 9001:2015

Numazu Plant

IATF 16949:2016(Auto exhaust catalysts)

Head office, Numazu Plant, andTsukuba Plant

Quality Audits
Based on our quality management system, each plant conducts external and internal quality audits once a year.

25

SUSTAINABILIT Y REPORT 2023

● N.E. CHEMCAT● Joint ventures of BASF and N.E. CHEMCAT (exhaust catalysts)■ BASF production and R&D sites (exhaust catalysts)▲ BASF production sites (process catalysts)

SOCIAL Customer Satisfaction Surveys
We often work closely with our customers, from catalyst development to scale-up. In order to further improve customer satisfaction and quality, we conduct
an annual Customer Satisfaction Survey. The results
are used for our continual quality improvement.
Quality Awards Received in FY2022
Daihatsu
Motor

Quality ExcellenceAward

May 2022

Quality Control Training
N.E. CHEMCAT actively conducts quality control
training to improve the abilities of human resources involved in quality control. This includes Quality
Management System (QMS) basic training, IATF tooltraining, and internal quality auditor training.

Main Quality Control Training in FY2022
Training programs

PlantsFundamentals of manufacturing

Numazu / Tsukuba

Introduction to IATF for new process owners /scopes due to organizational change

Numazu /Head office

IATF process approach

Tsukuba

IATF standards study group

NumazuIATF core tools

Head officeCorrective action review using QMS-style cause
investigation diagram and Naze-naze Analysis

NumazuSupplier Audit Approach

NumazuMeasurement system analysis (MSA)

Tsukuba

Measurement instrument and apparatus
management

Tsukuba

CP and P-FMEA preparation

Numazu / Tsukuba

Lean Six Sigma Activities
Lean Six Sigma (LSS) is a globally recognized management approach for quantitative improvement of processes and quality.
In addition to being a means for operational improvement, LSS
activities are also helping us to develop the human resources
who will be the leaders of tomorrow. Our employees are able
to comprehensively develop the four skills required for Green
Belt (GB*1), Black Belt (BB*2), and Master Black Belt (MBB*3). We
have expanded the scope of activities every year since beginning these activities in 2019. During the 7th term in 2022, webegan GB development in the head office and in Development,in addition to Manufacturing. We have also embarked on MBB
development further enhance LSS activities and certified thefirst MBB in the company during the 7th term.

LSS
activities

Number of GB/BB/MBB Certified Personnel
GB

40

BB

30
20
10

12

6

18

MBB

21

26

0

0

32

3
0

38

3
1

Term 1 Term 2 Term 3 Term 4 Term 5 Term 6 Term 7

2019 2020 2020 2021 2021 2022 2022

second first second first second(firsthalf ) ( half ) ( half ) ( half ) ( half ) ( half )*The numbers for 2021 (first and second half) were changed
due to revision of the aggregation method.

Four Personal Skill Categories Fostered by LSSTeam management
Stakeholder management
Decision making and final decision making
Personal leadership development
Team member leadershipdevelopment
Team member motivation

Statistical techniques
Risk analysis and risk management
Data collection and analysis
Utilization of statistical software

Projectmanagement

Leadership

Four
Personal Skill
Categories
Numerical
analysis skills

LSS tools

Business process improvement
Solving actual problems (realizationof improvement opportunities)
Creative thinking
Change management
Continuity and management
Report presentation skills
Identification and prioritization oforganizational interests
Six Sigma methodology
Lean methodology
Customer orientation
Process conceptualization skills*1 Green Belt (GB)This is the first level of LSS qualification. Leads an LSS project within the scope of normal business activities.
*2 Black Belt (BB)This is one level higher than GB. Provides guidance and advice to GBs and leads an LSS project that spans multiple areas.
*3 Master Black Belt (MBB) Qualified to assume responsibility for development and establishment of company-wide LSS activities as routine practices.
An MBB manages LSS projects, formulates medium- and long-term plans for LSS activities, supports management,
conducts training, coaches projects, and improves the level of recognition of such projects in the company.

SUSTAINABILIT Y REPORT 2023

26

Cooperating with Business Partners: CSR Procurement
In order to address CSR throughout its supply chain, N.E. CHEMCAT shares its procurement policy
and CSR procurement guidelines with its suppliers and works with them to resolve social issues.

SOCIALCSR Procurement Guidelines
1. Environment

CSR Procurement
Procurement Policy
N.E. CHEMCAT practices CSR procurement based on its
Corporate Philosophy. We established a new procurement
policy in April 2022, and have shared it with our suppliers
and other stakeholders.
We completely avoid the use of conflict minerals andengage in environmentally friendly green procurement.

this supplier and will work with them to formulate and implement measures to achieve improvement.
We will continue to conduct an annual CSR survey andwork to ensure responsible procurement.
CSR Survey Process
Corporate Philosophy and Corporate Guiding Principle

2) We will select our suppliers with fairness and equity, conduct transactions in good faith, and strive to strengthen
and develop mutual understanding and trust.

Dissemination of CSR Procurement Guidelines to suppliers

Selection of CSR survey sites

4) We will give attention to conserving the global environment and strive to reduce environmental impacts
through our procurement activities.

Collection of suppliers' responses to the CSR survey

N.E. CHEMCAT began conducting CSR surveys in FY2022,
using the CSR/Sustainable Procurement Self-assessment
Questionnaire developed by Global Compact Network Japan (GCNJ).
In the first fiscal year, we asked 19 of our main suppliers
to complete the questionnaire and obtained responses
from 15 suppliers (a response rate of 78.9%). The averagescore for responding companies exceeded 90%. However,
one supplier only scored 50%. We shared the results with

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SUSTAINABILIT Y REPORT 2023

Our suppliers comply with the laws and regulations concerning
the prevention of air, water, and soil pollution in each country
reduce environmentally hazardous substances.
(4) Resource Conservation and Waste Reduction

region in which they operate, and they ensure that resources are
effectively utilized.
Our suppliers comply with the laws and regulations concern-

Trade in minerals such as tin, tantalum, tungsten, gold,
and cobalt mined in the Democratic Republic of Congoand adjoining countries in Africa has been identified as asource of funding for armed groups.
N.E. CHEMCAT manufactures products using gold andtungsten, and its CSR Procurement Guidelines stipulatethat the company avoids the use of conflict minerals.
The guidelines also stipulate that the company does
not procure minerals that may be involved in human rights
abuses such as child labor, forced labor, and environmental destruction, which are problems not only in the region
but also for the international community.

strive to prevent accident and injury.

4. Raw Material Procurement(1) Conflict Minerals
Our suppliers do not procure minerals that may be associatedwith child labor, forced labor, or other violations of human rights,
or that may cause environmental destruction, or that may provide a source of funding for armed groups.
(2) Raw Materials Associated with Human Rights Violations
Our suppliers do not conduct business with companies suspected of committing human rights abuses such as forced labor (orthose with business ties to such companies).

5. Legal Compliance(1) Legal Compliance Systemthroughout the product life cycle to prevent environmental pol-Our suppliers comply with the laws and regulations of eachlution and adverse effects on the human body.

country and region in which they operate and maintain a system(1) Quality Assurance Management System
Our suppliers maintain a quality assurance management system(2) Product Safety
In the event a defective product is discovered, our suppliers takeformation in a timely manner, investigating the cause, and thoroughly implementing measures to prevent recurrence.

to promote compliance.
(2) Compliance with Competition Laws
Our suppliers comply with the competition laws of each country
and region in which they operate and do not engage in unfair
restraint of trade (cartels, bid rigging, or other practices), unfair
trade practices, or abuse of superior bargaining position.
(3) Prevention of Corruption
Any political contributions and donations our suppliers make are
made in accordance with the laws and regulations of each country and region in which they operate, and they maintain fair relationships with political parties and governments. Our suppliers

3. Human Rights

do not provide entertainment, present gifts, or give money to, or(1) Prohibition of Discrimination

receive money from, business partners for the purpose of obtain-

Our suppliers do not discriminate in recruitment, hiring, or treatment on the basis of race, creed, gender, social status, family

Conflict Minerals

Our suppliers ensure health and safety in the workplace andthey operate. Our suppliers strictly control chemical substances

all appropriate measures to ensure safety, including sharing in-

Improvement activities at suppliers

region in which they operate.
(6) Safe and Healthy Working Environment

ing chemical substances in each country and region in which

quality improvement activities.

Achieving responsible procurement

CSR Surveys

emissions generated by their business activities.
(3) Environmental Impact Reduction

to ensure product quality and safety and conduct continuous

Management Structure

In order to practice CSR activities throughout the supply
chain, we established CSR Procurement Guidelines in April
2022 to define our approach to CSR procurement including environmental, human rights, and legal compliance.

Our suppliers undertake activities to reduce greenhouse gas

2. Quality

Improvement request/support activities

Establishment of CSR Procurement
Guidelines

in accordance with the laws and regulations of each country and(2) Greenhouse Gas Reduction(5) Chemical Substance Management

3) We will eliminate conflict minerals and will not procure articles that may be associated with humanrights violations.

The company practices CSR procurement under the leadof the Corporate Administration Dept., which cooperates
with the purchasing sections of plants in this effort.

ate with, and choose not to associate with, groups of their choice

the proper disposal and recycling of waste in each country andCSR Procurement Guidelines

Our suppliers recognize the right of employees to freely associ-tem for implementing environmental activities.

Our suppliers comply with the laws and regulations concerning

Procurement Policy(5) Freedom of Association

Our suppliers establish and operate a general management sys-and region in which they operate, and they continuously work to

Procurement Policy

1) We will comply with all laws and regulations, and conduct procurement activities based on social ethics.

(1) Environmental Management System

origin, sexual orientation, gender identity, or disability.
(2) Prohibition of Inhumane Treatment
Our suppliers respect the human rights of their employees anddo not tolerate sexual harassment, power harassment, bullying,or any other conduct that may degrade the work environment.
(3) Prohibition of Forced and Child Laboring or maintaining unfair advantage or preferential treatment.
(4) Respect for Intellectual Property
Our suppliers protect intellectual property rights owned by or
belonging to their company and do not infringe on intellectual
property rights owned by third parties.
(5) Confidential Information Management and Protection
Our suppliers maintain a system for managing the confidential and personal information of customers and third parties in

Our suppliers hire only employees who work of their own freeaccordance with the laws and regulations of each country andwill, ensuring that they are not forced to work and are free toregion in which they operate. Our suppliers do not illegally ac-

leave their jobs as desired. Our suppliers do not use the labor ofchildren who have not reached the legal working age under thequire, use, or leak this information.
(6) Exclude Antisocial Forces

laws and regulations of each country and region.

Our suppliers do not maintain relationships with such antisocial(4) Compliance with Work Hours and Wage Payment

forces as organized crime groups or corporate blackmailers, or

Our suppliers comply with the maximum working hours set by
the laws and regulations of each country and region, as well as

make payments to these groups, under any circumstances.
(7) Export Transaction Managementwith those regarding salaries and wages, including minimum

Our suppliers follow appropriate export procedures and controls

wage, overtime pay, and piece-rate wages.

for the export of technology and goods as regulated by the laws
and regulations of each country and region in which they operate.

SUSTAINABILIT Y REPORT 2023

28

Cooperating with Employees: Human Resource Development

SOCIAL

N.E. CHEMCAT encourages employees to be proactive about taking on challenges and strives topromote diversity to “build an environment and structure that allows employees to share the joy ofworking for N.E. CHEMCAT and constantly breed innovation,” as stated in Vision 2030.

Human Resource Development

on challenging and rewarding work, and have it evaluatedappropriately.
In FY2023, we introduced a new internal recruitment system for new posts and a special bonus system for employees who have demonstrated outstanding performance.

Human Resource System That
Encourages Employees to Be Proactive
about Taking On Challenges
To create the infrastructure for encouraging employees
to take on challenges, we introduced and are operating ahuman resource system. The system is designed so thateach employee can recognize clear roles and goals, take

Human Resource Management
Promotion System

Execute personalg o a l s s e t i n a c c o rdance with company-wide strategies
and fulfill expectedroles

Practice

Evaluate the degreeo f a c h i ev e m e n t o f
individual goals tied
to the company-wide
strategy as well as thedegree of fulfillmentof expected individualroles

Evaluation

Human
Resource
Training System Planning
Allocation

In addition to on-the-job
training, Human Resources Dept. and other departments plan off-the-job
training, taking into account the competencies
required for the role

Human Resource Development

Through periodic interviews between supervisors and subordinates, formulate development plans for eachindividual and selectcandidates for the
next management
level

Based on the company-wide
strategy, establish appropriate organizations and roles,
and assign appropriate
personnel according to theirroles

Promoting Diverse Work Styles

N.E. CHEMCAT formulates and implements various humanresource policies based on the human resource strategy inits medium-term management plan.
Personnel evaluations and changes in role grades, personnel transfers and annual hiring plans, succession plans
for key posts, and the selection of candidates for the nextmanagement level are discussed by the Personnel Committee, which is chaired by the president. This ensures a
medium- to long-term perspective in the management of
human resources.

Five Components of the Human Resource System

Our human resource development is mainly based on onthe-job training, which involves communication with supervisors and senior employees in daily work as well as
guidance and advice provided via regular interviews.

Human Resource Development System
OFF-JTOJT

Function-specificSelected training
training (conducted
Knowledge & skills training (training for potential
by each organization
managers)
category)

Position-based training

We also provide training for new employees and coaching training, as well as off-the-job training for each employee grade. The goal is to help them acquire the skills
required to fulfill their roles and to develop and improvetheir competencies.
N.E. CHEMCAT actively supports independent learningfor each employee, including support for obtaining a doctoral degree and English language training, and e-learning
courses that can be selected at will by interested employees.

 Flexible Work Styles
N.E. CHEMCAT operates systems that allows employees towork flexibly. Such systems include the flex systems andthe telecommuting system.
We also strive to maintain a balance between work andlife through appropriate management aimed at preventing long working hours and encouraging employees totake annual paid leave.
 Support System for Childcare and Nursing Care, etc.
To support the activities of employees with childbirth,childcare, and nursing care needs, the company has introduced a variety of support systems that exceed legal
standards. In FY2022, 100% of female employees who are
eligible for childcare leave took it. The percentage of eligible males that took childcare leave exceeded 50% at 57%.
This achieved one of the goals set in the General Business
Owner Action Plan under the Act on the Promotion of
Women's Active Engagement in Professional Life.
We also began providing a new nursing care seminar in
FY2022 to provide appropriate support to employees when
they face the need to provide nursing care.

Self-development support
Dispatch to outside
the company

Individual learning

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SUSTAINABILIT Y REPORT 2023

Support for online English training

Provision of e-learning (management, technical skills, health management, languages, PC, etc.)

Support for taking various correspondence courses

Support for acquisition of qualifications

Dispatch of external seminars

Support for acquisition of abachelor's degree in liberal arts
from the Open University of Japan

Support for obtaining a doctoral degree *employees with bachelor’s degree or higher

Training necessary for the execution of operations (in-house training, dispatch to external seminars)

Training related to Lean Six Sigma (LSS) activities

Education related to Responsible Care (RC) activities

SeniorManagement
Program

Education related to health, safety, environment, and quality

Practical placement and guidancePre-assignment training for overseas assignment

Performance Improvement Support Training

Diversity training (life planning, career design, nursing care)

metals management, etc.)

Compliance training (legal compliance, human rights, harassment)

Coaching training

Evaluator training

Basic skills training (logical thinking, facilitation, anger management, precious

S1

Followershiptraining

English training outside the company

S2

New supervisor training

Mid-career employee training *Introductory training and tours of plants

S3

New manager training

English Training for new employees

Employees

S4

Middlemanagement
program

Instructor system

M1

Training for new employees

Managers

M2

Assignments/guidance through regular meetings with supervisors

Off-site meetings

Diversity and Inclusion
Believing that acceptance of diversity leads to the creationof innovation and enhancement of corporate value, thecompany is working to create a work environment in which
the individuality of employees and the abilities of diverse
human resources can be fully realized.
In FY2022, the mid-career employee employment rate
exceeded 70% and the employment rate for people withdisabilities was 2.6%, exceeding the legally mandated level.

Women in Management Positions
Of the approximately 700 employees at the company, approximately 11.0% are women. The percentage of womenin management positions has been increasing in recent
years and was 4.9% in FY2022.
(%)
FY2019FY2020

FY2021

FY2022

Percentage of regular
employees who are women

10.0

10.9

10.8

11.0

Percentage of women in
management positions

3.3

4.6

4.3

4.9

General Business Owner Action Plan based on
the Act on Advancement of Measures to
Support Raising Next-Generation ChildrenChildcare Leave

Extension to 2 years old is possible
depending on the situation of thechildcare center. (The rate of employees who have returned to work after
taking childcare leave is 100%.)

Shortened Work
Hours for Childcare

Available until the child graduates fromelementary school

Nursing Care
Leave

Can be taken up to three times for aperiod of up to 93 days for a family
member in need of nursing care

1. Encouraging employees to take annual paid leave by
informing their supervisors of the status of their use ofannual paid leave.

Family Support
Leave

Available for up to 40 days per year for
nursing care of family members who are
injured or ill or in need of nursing care*Can be taken even if not in need ofnursing care

2. Using the intranet to inform employees about childcare
leave based on the Child Care and Family Care Leave
Law and various systems based on the Unemployment
Insurance Law.

Job Return
System

Employees who have left the company
due to marriage, childbirth, childcare,nursing care, or a spouse's transfer are
eligible to return to work if they so desire.

Officers

M3

 Creating a Positive Workplace That Is Easy to Work in
N.E. CHEMCAT strives to improve the workplace environment based on stress checks and suggestions and recommendation from the labor union.
We also provide insurance coverage for illness and injury and a group life insurance program so our employees
can work with peace of mind.

We have established and are implementing the following
goals in order to create an environment in which all employees can balance work and child-rearing and in which
all employees can work comfortably so that they can fully
demonstrate their abilities.

3. Appropriately managing the transition of employees'
overtime work and striving to reduce working hours.

SUSTAINABILIT Y REPORT 2023

30

Cooperating with Employees: Occupational Health & Safety

SOCIAL

N.E. CHEMCAT strives to create a workplace environment in which employees can work safely andin health.

Occupational Health & Safety
Seven Safety Action Rules
Under the safety policy that safety takes precedence overeverything else, N.E. CHEMCAT has established Seven
Safety Action Rules to ensure safety and health.

Seven Safety Action Rules
1. Follow the rules
All company employees shall comply with laws, regulations, and other internal rules.
2. Implement thorough safety precaution
In order to prevent injury, supervisors shall give due
consideration to safety (pre-screening, education andtraining) before utilizing new employees or introducing
new equipment, new substances, or new tasks.
3. Standardize operational procedures
Workplace supervisors shall standardize operational
procedures in order to ensure safety.
4. Wear protective gear
Personnel working on site shall wear appropriate protective gear.
5. Patrol the workplace
Supervisors shall patrol the workplace in a timely manner to identify any on-site issues. Identified problems
shall be corrected in a timely manner without leaving
dangerous locations or dangerous tasks unattended.
6. Report obligations
If an accident, injury, or emergency should occur, work
shall be stopped immediately, and the situation shall bereported to a supervisor as quickly as possible.
7. Prevent recurrence thoroughness
Following an accident or injury, all workplace employees
shall reflect seriously on the circumstances, determine
the cause, and take steps to prevent recurrence.

Health & Safety Promotion System
N.E. CHEMCAT has established health & safety committees
at each of its plants. These committees include safety managers, health managers, industrial physicians, and work supervisors, and a system is in place to reflect the opinions of
employees at workplace and safety meetings. The initiatives
reported to the committee are reported to the company-wide
RC Committee, which oversees the progress of the initiatives.

Plants with Certified Health and Safety Management Systems
JISHA-qualified OSHMS

Numazu Plant, Tsukuba Plant

Safety Training
We conduct safety-related education and training andmake educational materials available on our safety andhealth bulletin board.
Safety Training (Examples)- Safety principles

Implementation of Risk Assessment
We support the mental and physical health of employees
by conducting risk assessments that place the highest
priority on preventing serious accidents and implement
essential safety measures such as the maintenance andmanagement of necessary equipment. In addition, we
are working to improve work that involves heavy labor or
working in hot weather to create a workplace that is easy
to work in, even for elderly workers.

- Disaster preparedness education (BCP for major earth­quakes/wind, flood, and earthquake disaster prevention)- Education on chemical substance management- Training for employees who work with chemical substances- Education on management system of chemical substances in products- Education on basic knowledge of protective equipment (for new and mid-career employees)- Education on prevention of exposure to liquids (chemical hazards)

Risk Assessment Procedures
Selection of risk assessment targets

Work selection andimplementation
planning

Preparation of risk assessment plan

To prevent occupational accidents, we conduct regular facility safety inspections and health and safety patrols, aswell as workplace patrols by management, and shareholder audits.

HealthSupporting Employees' Mental andPhysical Health Employee Health Management through Health Checkups
Regular health checkups are conducted once a year tomaintain and promote employees’ health. We also help tomaintain the health of employees by providing thoroughphysical examinations.

- Education on full body harness fall arrest equipment

Specific healthcheckups

Specific health checkups are conducted
for all insured employees and dependents between the ages of 40 and 65.
For those who are selected for "motivational support" or "active support" in thespecified health checkup, an action plan isprepared under the guidance of a doctor,
public health nurse, etc., and health guidance is provided to improve lifestyle.

Thoroughphysicalexamination

Insured persons and their dependents
can undergo physical examinations without age limitation.

- Training for high-pressure gas handlers- Education on compliance with relevant laws and regulations- Traffic safety training

Identification of hazardous elements

Workplace Accident Prevention Activities- Heatstroke prevention education

Risk estimation of hazardous elements

Implementation ofrisk assessment

Evaluation of risk level
Consideration of countermeasures
Consideration and determination ofrisk reduction measures

Risk reduction
measures

Implementation of risk reduction measures- Risk assessment of chemical substances
In FY2022, we conducted off-site hazard simulation
training provided by the Sumitomo Metal Mining Group.
The five N.E. CHEMCAT employees who took the course
serve as on-site trainers. They take the initiative on andserve as role models in safety activities, urge other employees to practice safety, and work to sustain zero accidents and injuries at each plant.

Risk management

Safety Targets

 Health Consultations
N.E. CHEMCAT partnered with an outside organization andintroduced a system to provide mental and physical healthconsultations 24 hours a day. In addition to daily healthcounseling, we also provide services such as referrals to
medical institutions where consultations are available
during the year-end and New Year holidays.
Employees who request health counseling meet withan industrial physician or receive health counseling froma healthcare provider at least once a month at our head
office and plants.

With the aim of achieving zero lost-worktime injuries andinjuries without lost worktime, we are working to create asafe and healthy work environment for all employees. In
FY2022, two lost-worktime injuries occurred.
Occupational Accidents(Number of accidents)
FY2019 FY2020 FY2021 FY2022

Lost-worktime injuries

1

1

2

2

Accidents without lost worktime

2

2

0

0

Fatal accidents

0

0

0

0

 Mental Health
The company conducts annual stress checks to not only
address mental health issues but also promote mental
health in a broader sense, including the revitalization of
workplace communication.
In fiscal 2022, 98.6% of employees underwent stresschecks. We are following up with high-stress individuals
through interviews.

Health & Safety Management System
We have obtained OSHMS certification for our health and safety management system, which is qualified by the JISHA method.

31

SUSTAINABILIT Y REPORT 2023

Hazard simulation training course

SUSTAINABILIT Y REPORT 2023

32

Stakeholder Engagement

SOCIALWe seek to achieve sustainable growth and a prosperous society through stronger relationships
with stakeholders by providing them with appropriate information and engaging them in dialogue,
and by creating new technologies and value in collaboration with stakeholders.

Communication with Stakeholders
To share our philosophy and objective of promoting sustainability management, we place immense importanceon opportunities for diverse dialogue with stakeholders.
Through dialogue, we seek to build relationships of
mutual cooperation between the company and its stakeholders and among stakeholders, and to grow and develop together.

Communication to Deepen Connections
among Stakeholders

Suppliers

Local
Communities

Customers

Local Contribution Activities
 Kano River Water Quality Conservation Activities
N.E. CHEMCAT has a plant in the city of Numazu. We promote
the conservation of water quality in the Kano River, participate in the Kano River Water Quality Conservation Council,
and engage in environmental conservation activities.
We also participate in the environmental protection
programs Clean Numazu in Numazu City, Shizuoka Prefecture and Clean Bando in Bando City, Ibaraki Prefecture.

Schools

Industry
GroupsEmployees

Business
Partners

Opportunities for Dialogue with Stakeholders
Stakeholders

Objectives- Collaborating to solve social issues through business

Customers

Shareholders (Sumitomo
Metal Mining and BASF)

Suppliers

Business Partners- Building and strengthening relationships of trust through appropriate disclosure of sustainability and other initiatives- Be accountable to shareholders for business strategies and performance, and strengthen Group cooperation

General shareholders' meeting, acceptance of audits, and technical exchanges- Maintaining sound business relationships through fair and equitable transactions- Sharing procurement policies and CSR procurement guidelines,
and promoting CSR procurement throughout the supply chain- Strengthening collaboration with various companies to develop products and new technologies that contribute to a sustainable society- Creating opportunities for direct dialogue between officers and employees

Employees- Strengthening mutual trust through labor-management dialogue- Strengthening employee engagement- Fostering a lively work environment

Communication through purchasing
activities and conduct CSR surveys

Communication through projects, cooperative research
Employee Forum (held twice a year),labor-management council, executive
blog, intranet

Schools (Universities)- Creating new technologies and values that support a sustainable
society

Acceptance of internships, cooperative
research

Industry Groups- Exchanging views and sharing information with chemical and catalyst-related industry groups, and with organizations working tosolve social issues

Membership in industry groups ( JCIA,
Catalyst Manufacturers Association JAPAN,
Japan Hydrogen Association, and others.)

Local Communities

33

Main communication
Sales and technical support, customer
satisfaction surveys, acceptance of plantinspections, CSR survey responses, information disclosure on website, sustainability reports- Improving customer satisfaction by maintaining the supply ofhigh-quality products- Contributing to local development through youth development,
local environmental protection, and other social activities- Coexisting and co-prospering with local communities

SUSTAINABILIT Y REPORT 2023

Elementary Schools• Support for producing newsletters
Bando municipal Kamiomi Elementary School, Numazu
municipal Hara Elementary School
High Schools/Technical High Schools• Future Shizuoka*
Support for extracurricular courses at National Instituteof Technology (KOSEN), Numazu College*Future Shizuoka: A project run by Shizuoka Shimbun (newspaper) that communicates the appeal of living in the community
by having high school students work in local companies.

NECC
Shareholders

technical high school students in extracurricular courses
as part of its activities to support the education of students
who will be responsible for their communities in the future.

Providing extracurricular classes at technical colleges and high schools, regularly
engaging in dialogue with resident associations and landowners, participating in community cleanup activities, in regional chambers of commerce and environment-related councils, and in district sports competitions, and supporting AED advertising for
local government community facilities

Kano River water quality conservation activities Support for AED Installation in Public Facilities
N.E. CHEMCAT sponsors AED advertising to support efforts to install automatic external defibrillators (AEDs) inpublic facilities in Bando City, Ibaraki Prefecture.
In FY2022, we supported the installation of AEDs in five locations in four facilities: Bando City Hall, Iwai Wellness Center,
Bando General Gymnasium, and Bando Civic Concert Hall.
 Support of Culture and Sports
N.E. CHEMCAT sponsors local marathons and other sports activities as part of its efforts to support sports in local communities.
In FY2022, we sponsored the Shizuoka Ekiden, a long-distance relay road race for municipalities in Shizuoka Prefecture, donated towels to cheer on the team from Numazu
where our plant is located, and deepened engagement withlocal residents.
Our Tsukuba Plant also participated in the Bando City Masakado Half Marathon, which was held for the first time in three years.

Extracurricular course at National Institute of Technology (KOSEN),
Numazu College

International Technology Exchange Welcoming a Science and Technology Mission Group
from South Africa for a TourIn October 2022, the Numazu Plant welcomed a scienceand technology mission group from South Africa for a technology tour. This visit was hosted by National Institute ofTechnology (KOSEN), Numazu College, the representative
institution for the Development of New Ammonia Synthesis
System using Renewable Energy and Hydrogen* research
theme involving Japan and South Africa. They accompanied
the South African science and technology mission groupon the tour. We gave the mission group a tour of our latest
precious metal catalyst technology and engaged in an international exchange with the mission group.
* A research theme adopted by the Science and Technology ResearchPartnership for Sustainable Development (SATREPS) program

The Numazu Team holding up the towels we donated to cheer them on

 Support for Local Education
N.E. CHEMCAT supports the production of elementary
school newsletters and the participation of high school andSouth African science and technology mission group that toured ourNumazu Plant

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34

Corporate Governance / Compliance

GOVERNANCE

N.E. CHEMCAT is working to build a transparent and sound governance system and strengthening
internal controls in order to increase stakeholder trust and enhance corporate value. We have also
positioned compliance as our top priority in corporate activities.

Governance System

Internal Controls

To conduct transparent and sound corporate management, we need to establish corporate governance that is
in line with the true state of the company. The company
has put in place a general shareholders' meeting, a boardof directors, corporate auditors, and accounting auditor toensure appropriate corporate governance.

Activities of the Board of Directors andCorporate Auditors
In accordance with the Companies Act and internal regulations, we held eight board of directors’ meetings (three of
which were held in writing) in FY2022 to discuss importantmatters and report on the state of business execution.
Corporate auditors also attended the general shareholders meeting, the board of directors’ meetings, andother important meetings to monitor and verify whether
resolutions and reports have been made in accordancewith laws, the Articles of Incorporation, and internal regulations, and whether appropriate business judgment was
exercised in making decisions.

Compliance

The company has formulated the Policy on Internal Controls as an effort to establish a system necessary to ensure
the appropriateness of business operations as stipulated
in the Companies Act. Based on this policy, the company
has established a system for appropriate operational controls in terms of business processes, risk management,
and compliance.
The company also conducts internal audits on businessprocesses and compliance. Regarding internal audits, theInternal Audit Committee reviews and evaluates the status of the system’s development and operation in terms of
the appropriateness of the company’s important businessprocesses and compliance status.
When conducting internal audits, the company cooperates with external organizations as appropriate, andreports the existence of deficiencies and their causes tothe Internal Audit Committee. If deficiencies are found,
an issue log is released, and the General Manager of the
Corporate Administration Dept. investigates and confirms the implementation of improvements in a timely
manner and releases the summarized report to the Internal Audit Committee.

Overview of Directors and Corporate Auditors
Number of directors

6

Number of corporate auditors

3

Number of board of directors’ meetings held

8

Number of corporate auditors liaison meetings held

7

We believe that compliance must be addressed to fulfill our required social responsibilities and achieve sustainable growth.
Based on this belief, the company has established the
Corporate Guiding Principle and the Code of Conduct toshow its commitment to rigorous compliance as a company,
and to clarify the items that must be observed by employees, which they must put into practice in their daily work.
In FY2022, there were two incidents involving compliance violations. Each incident was handled appropriately,according to internal rules.
To prevent recurrence, we are also making everyone in
the company aware of these incidents and are posting educational activities on the intranet.

Internal Reporting System
The company has established an internal reporting system
to promptly collect information on any violation of laws or
regulations and to respond to that information as quickly as possible. The division in charge investigates reports
and determines whether the report content qualifies as alegal violation or violation of other rules. It then reports
the results to the Representative Directors and full-time
auditor for determination of the appropriate steps to take.
One report was made through the internal reporting
system in FY2022. We continue to inform everyone about
the role of the internal reporting system and how to use
it, along with the importance of compliance, and promoteuse of the system.
Internal Reporting Contact

Corporate Governance System Chart

General Manager of the Corporate Administration Dept.

Shareholders
Appointment/Dismissal

Appointment/Dismissal

External Reporting Contacts
An affiliated law firm

Cooperation

Board of Directors

Accounting auditor

Appointment, dismissal, andoversight of business execution

Referral/Reporting

Business Strategy
Meeting

SUSTAINABILIT Y REPORT 2023

Reporting

Reporting

Reporting

Each organizational
category

35

Audit

President andRepresentative
Director

Instruction

Oversight

Corporate auditors

Internal
audit

Business Execution Functions

Internal Audit
functions

ReportingInstruction

Internal Audit
Committee

Corporate Guiding Principle
Basic attitude towards business activities
We conduct active R&D based on a long-term perspective,
establish systems to supply safe and quality products consistently, develop existing businesses and create new businesses in order to resolve social issues.

Environmental initiatives
We position the preservation of global environment as animportant mission, and provide products that help resolve
environmental issues, as well as take actions to reduce environmental impact throughout our corporate activities.

Enforce safety
We make sure that safety is given first priority throughout
the company. We allocate management resources necessary to ensure safety, and strive to create an accident-free,disaster-free environment by enforcing training upon all
persons engaged in our corporate business activities.

Quality improvement
We provide the quality that is satisfactory to our customers,
engage the entire company in the quality control systems
and conduct continuous quality improvement activities togain customer trust.

Relationship with stakeholders
We value the dialogues with all stakeholders around us, andaim to be trusted as member of society through achieving
accountability and appropriate information disclosure.

Compliance, internal controls
We enforce legal compliance, provide appropriate internal
training, and take rigorous attitude against illegal and violating acts, as well as establish an internal controls systemwith emphasis on the management risks associated withour business activities.

Vibrant working environment
We respect the human rights of our employees and encourage open exchange of opinions and proactive challenges,
and create a cheerful working environment that will enable
employees to express their characters and diverse humanresources to reach their potential.

In-House Training
We conduct compliance training company-wide, focusing
on the importance of compliance, the company's compliance system, and the prevention of harassment.
In FY2022, the company regularly published the Compliance Newsletter to raise awareness about harassment,
safety and environmental laws and regulations, and theinternal reporting system.

Audit

SUSTAINABILIT Y REPORT 2023

36

Compliance & Risk Management

GOVERNANCE

N.E. CHEMCAT promotes risk management under the supervision of top management so that it can
respond appropriately and promptly to increasingly diverse and complex risks.

Human Rights Policy
The company has established a human rights policy that
respects the Universal Declaration of Human Rights andother international norms and prohibits all forms of workplace discrimination. The policy also clearly states that wewill cooperate with relevant parties and not be complicit inany human rights violations, even indirectly.

Human Rights Policy
1) We will respect the Universal Declaration of Human
Rights and other international norms, comply with laws
and regulations, and promote initiatives towards respecting human rights.
2) We will not allow discrimination, harassment, or otheracts of human rights abuse in the workplace. We will
respect the diversity of our employees and will foster alively workplace environment.
3) We will encourage supply chain partners and other stakeholders to take the initiative on respecting human rights,
and will not take part in any human rights violations.
4) We will identify the adverse human rights impacts in ourbusiness activities and strive to prevent and mitigate suchimpacts, and to address such impacts when they occur.
5) We will carry out awareness-raising activities for officers
and employees to embed the Policy throughout theCompany.

Harassment Prevention
The company will in no way tolerate any violation of humanrights, including discrimination, harassment, or any otherforms of harassment in the workplace for any reason. In
FY2022, there were four incidents of harassment that led to
disciplinary action. When someone reports harassment, wefirst take sufficient steps to protect the privacy of the reporter, the perpetrator, and others involved, and then swiftly andaccurately verify the facts. The necessary measures are thenpromptly implemented after the facts have been verified.
To prevent harassment in the workplace, we have established internal and external contacts for consultation
and reporting and a system for handling the process fromreceiving a report to the response. We make everyone in
the company aware of this system, in addition to conducting training on harassment.

Internal audit
N.E. CHEMCAT conducts internal audits based on the internal audit rules to help ensure appropriate, efficient auditsof its business.

37

SUSTAINABILIT Y REPORT 2023

In FY2022, we audited compliance with the Act against
Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontractor Payment Delay Prevention Act).

Risk Management
We believe that identifying and strengthening our response
to management risks not only fulfills our corporate responsibility but also leads to our sustainable growth, and we areworking to strengthen our risk management system.
The risk management policy stipulates that the company shall establish a high-precision crisis management
system. The policy also stipulates that in the event of an
emergency, we should prioritize respect for human lifeand seek rapid recovery.

Risk Management Policy
1) Ensure the safety of company employees and preservecompany resources.
2) Conduct risk management to continuously improve risk
response capabilities.
3) Develop risk sensitivity and share risk-related information.
4) In the event of an emergency, prioritize respect for human
life, responding promptly and quickly restoring operations.
5) Maintain a high-precision crisis management systemwith the aims of not only quickly restoring operationsin the case of an emergency, but also contributing tosociety and enhancing our corporate image.

Risk Management System
The company has established the Risk Management Committee, chaired by the president, as a body that oversees
risk management.
The Risk Management Committee is responsible for identifying and assessing various management risks and implementing risk mitigation measures, as well as planning andconducting disaster prevention-related education and training.
We have established and maintain a disaster response
system that makes it possible to ensure the physical safety of people and protect lives, prevent and/or mitigate theexpansion of corporate and stakeholder losses, and rapidly
restore important business and business operations.
In the event of a serious disaster that could disrupt business continuity, the officer in charge of crisis management
has the discretion to activate a crisis response headquarters
and mount a company-wide response when a crisis occurs.

Business Continuity Management (BCM)
N.E. CHEMCAT has formulated a business continuity plan
(BCP) for earthquakes, wind and water damage, infectious
diseases, and other envisioned events.
We also take action to improve the crisis management
system and response measures by operating the PDCA cycle to enhance our ability to respond when a crisis occurs.

Disaster Prevention Training and Drills
We conduct various kinds of training and drills for all employees as part of our business continuity management.
Once a year, we conduct training and drills for all employees on disaster prevention measures during normal times
and response procedures during emergencies.
Safetyverification
drillsResponse drills for all employees
using the safety verification andresponse system

Twice ayear

Comprehensive disaster
drills(Numazu
andTsukuba)

Training for evacuation, roll call,reporting, firefighting, and inspection based on the assumption of alarge-scale earthquake, fire, chemicalleak, and injuries (we also assumed atsunami for the Numazu Plant)

Once
per
year foreach
type ofwork

Self-defense
firefighting
drills(Head office)

Drills for evacuation, fire extinguishing, and reporting in caseof a fire

Twice ayear

BCP
training anddrillsTraining and drills on internal information sharing, determining the
response, and response procedures to maintain and quickly
restore continuity of important
operations in the event of a disasterOnce ayear

Information Security
To protect information assets including various confidential and personal information held by the company, we
have established Regulations for Handling Confidential
Information, Regulations for Handling Personal Information, and Regulations for Information Security to protect
information assets including distinct types of confidential
and personal information held by the company.
Based on these regulations, the company appoints
an Information Security Management Officer (Director in
charge of Corporate Planning Dept.) and an Execution
Supervisor (General Manager of the Corporate Planning
Dept.).
The Information Security Management Officer and the
Execution Supervisor identify information security risks suchas large-scale disasters, computer viruses, cyberat­tacks, andinformation leaks, and promote measures to properly protect and manage the company's information assets fromvarious threats, while constantly working to strengthen information security.
If information security risks materialize that make it difficult to maintain our information security and seriously
affect our business, the Execution Supervisor shall reportto the Information Security Management Officer and convene the Information Security Emergency Response Committee to respond appropriately to minimize the damage
and promptly return the situation to normal.
In addition, to maintain and improve security, the company informs, educates, and instructs its officers and employees on information security standards and rules.

 Risk Management System

During normal times

During a crisis

Risk Management Committee(Chairperson: President)
Secretariat
Importantpoints andinstructions for
improvementof deficiencies

PDCA

Reportingon riskmanagement
activities

Related departments at plants,
R&D center, and head office

Officer in charge of crisis management
Decides whether toactivate the Crisis
Response Headquarters

Secretariat

Crisis Response Headquarters
Provides instructions oncrisis response

Secretariat

Related departments at plants,
R&D center, and head office

SUSTAINABILIT Y REPORT 2023

38

ESG Data
Environment-Related Data
Unit
Energy consumption (crude oil equivalent)
Purchased electricity
Gasoline
Energy / GHG

Light oilLiquefied natural gas (LNG)
City gas
GHG emissions

Waste

2020

2022

15,92916,23817,151kwh

34,873,000

33,391,000

33,094,000

34,774,000
1,100

kl

1,064

1,057

1,108

kl
Ton
Thousand m3

197
2,477
2,820

170
2,343
2,715

96
2,591
2,761

2,909

Ton

32,24630,55430,83032,925

113
2,811

0.733

0.705

0.678

0.639

Water usage (total)
Tap water

Thousand m3
Thousand m3

912
12

813
9

623
10

661
14

Groundwater

Thousand m3

885

790

599

632

Industrial water

Thousand m3

15

14

14

16

Thousand m3
Ton
Ton
%
kg

868
645
579
89.8
886*1

773
709
658
92.8

821
741
708
95.6

788
606
570
94.1
2,581
4.99
0
0

Industrial wastewater
Amount of industrial waste (general/special management)
Amount of industrial waste reused
Recycling rate

Chemical substances

Emissions of PRTR substances (amount transferred to the environment)

AtmosphericemissionsNOx emissions (Tsukuba Plant)
SOx emissions
Number of serious environmental accidents

Ton

6.68*1

Ton
Cases

0
0

Number of employees (regular employees)
MaleFemaleNumber of new hires
New graduates
Mid-career
Percentage of women among new graduate hires
Average years of service (male)
Average years of service (female)
Average age
Numbers of employees by age (up to 29 years old)
30–39 years old
40–49 years old
50–59 years old
60 years old and above
Percentage of paid annual leave taken
Average hours of monthly overtime
Percentage of women in management positions
Percentage of employees with disabilities
Number of employees aged 60 and over

Unit
PeoplePeoplePeoplePeoplePeoplePeople
%
Years
Years
Years
PeoplePeoplePeoplePeoplePeople%Hours%%
PeopleNumber of employees taking childcare leave
Percentage of childcare leave taken (male)
Percentage of childcare leave taken (female)
Percentage of employees returning to work after childcare leave*2

People%%%Number of employees using family support leave
Number of accidents resulting in lost worktime
Number of accidents without lost worktime
Number of fatal accidents
Percentage of employees undergoing stress checks

People
Cases
Cases
Cases
%

Others2021

16,640GHG emission intensity (index with FY2013 as 1)

Water

2019

kl

901*1

2,021

5.70*1004.76*100Social Data

Employment

Diversity

Childcare, nursing
care, and nursing

Occupational
Health & Safety

2019

642*1

578*1
64*1
42
21
21
23.8

17.3*1
14.8
42.9
105
134
180
202
21
75.0
18.4
3.3
2.3
37
5
9.1
100
100
0
1
2
0

98.8

2020

667*1

594*1
73
39
21
18
19.0

17.2*1

13.9*1
42.8
113
149
175
196
34
65.7
19.3
4.6*1
2.2
52

8
16.6

100
100
2
1
2

0
97.8

2021

676
603
73
44
15
29
13.3
17.0

14.3*1
43.0
107
162
172
192
43
69.2
20.4

4.3*1
2.9
63
7

30.7
100
100
1
2

0
0
97.3

2022

671
597
74
29
8
21
12.5

16.8
14.6

43.0
95
175
169
191
41
72.8
20.3
4.9
2.6
69
9
57.1
100
100
2
2
0

0
98.6

Governance-Related Data
Unit
Directors andcorporate auditors

Number of directors
Number of corporate auditors
Number of board of directors’ meetings held
Number of corporate auditors liaison meetings held

PeoplePeople
Times
Times

2019

2020
6
3
7
4

2021
6
3
7
4

2022
6
3
7
6

6
3
8
7

*1 Figures disclosed last year were corrected after review of scope.
*2 Percentage of employees returning to work after childcare leave: Number of employees who returned to work in the same year divided by the number of employees
scheduled to return to work in the same year x 100

39

SUSTAINABILIT Y REPORT 2023

Company Data
Company name

N.E. CHEMCAT CORPORATIONFounding date

April 9, 1964

Capital3,423.5 million yen

Representative director

President: Susumu EndoSUSTAINABILIT Y REPORT 2023

40