Lintec GroupCSR Report 2016

Company Motto

Sincerity and Creativity
The foundation of the Lintec Group’s CSR is its company motto,“Sincerity and Creativity.” These are the ideals that everyone in thegroup aspires to.
“Sincerity” means thinking about what can be done that will be of
benefit and appreciated and tackling every task with all one’s heart.
“Creativity” means to work constantly to innovate and improve, seeking
greater added value without being satisfied with the status quo.
Showing integrity to all stakeholders and taking on new challenges over
and over again with a determination to innovate is the starting point
for a manufacturer dedicated to craftsmanship.
“Start with Sincerity and then apply Creativity”—this is Lintec’s
unchanging approach and the driving force that underpins its
sustainable growth.

LINTEC WAY
Important values supporting the company motto

Five Rules of Sincerity

Five Rules of Creativity

1 Always be sincere.

1 Be committed until you succeed.

2 Faithfulness opens people’s mind.

2 Be proud of being unique.

3 Please people.

3 Be resilient and take advantage of changes.

4 Be a giver.

4 Think globally.

5 Care about colleagues and family.

5 Look for connections to potential everywhere.

Editorial Policy
The CSR activities of the Lintec Group follow the company motto: “Sincerity and Creativity”

Contents

when conducting its CSR activities. This report explains our CSR activities during fiscal 2015.
The Highlight section features our modal shift initiative, which the Lintec Group has adopted

01

Editorial Policy

as part of its efforts to reduce environmental impact, and CSR workshops, which aim to

02

Message from the President

04

Overview of the Lintec GroupCSR website.

08

CSR in the Lintec Group* Stakeholders include consumers, employees, shareholders, creditors, suppliers, local communities, and government
agencies.

10

Materiality (Important Issues)

12Highlight 1

integrate CSR and business. This report highlights certain information which is important for
both the stakeholders* and the Lintec Group. For more detailed information, please visit ourMain Channels for CSR Information

Aim to Reduce CO2 by Changing theDistribution Structure through a Modal Shift

CSR Report (Booklet / PDF version)[Booklet]Information on the CSR activities of the Lintec Group described in a simple manner.

[PDF version] Full version is created in English. Abridged version is created in Korean,Chinese (traditional), Chinese (simplified), Malay, Indonesian and Thai.

14

Highlight 2 CSR Workshops

Aggressive CSR for the Creation of
Corporate Value

CSR Website
More detailed information on the CSR activities of the Lintec Group[Japanese]
http://www.lintec.co.jp/csr/[English]http://www.lintec-global.com/csr/● Guidelines Referenced
Sustainability Reporting Guidelines (version 4) of the Global Reporting Initiative (GRI)
Environmental Reporting Guidelines (2012) of the Ministry of the Environment of Japan
Environmental Accounting Guidelines (2005) of the Ministry of the Environment of JapanISO 26000 (Guidance on social responsibility)

16

Corporate Governance18

Practicing Sincerity

20

Aiming to Develop BCMS for
Proactively Thinking andTaking the Initiatives● Reporting Period
This report covers the period from April 1, 2015, to March 31, 2016 (fiscal 2015). It also
includes some information up through June 30, 2016 concerning specific initiatives.
Environmental performance data for 12 group companies outside Japan covers the period
from January 1 to December 31, 2015.

● Organizations Covered
Corporate Governance Social Report
Lintec: Lintec Corporation
Lintec Group: Lintec Corporation plus group companies in and outside Japan
Environmental Report
Lintec: Lintec Corporation (Head Office, 10 production sites*1, and Research Center) and Tokyo
Lintec Kako, Inc.
Lintec and 12 group companies outside Japan: Sites listed above and 12 overseas groupcompanies*2
Lintec Group: Lintec Corporation plus group companies in and outside Japan*1 See page 6.

*2 See page 35.

● Note on the fiscal year of consolidated subsidiaries
The fiscal year of LINTEC (THAILAND) CO., LTD., LINTEC KOREA, INC. and another 28
consolidated subsidiaries ends on December 31. As the difference between the fiscal year endof these 30 consolidated subsidiaries and the consolidated closing date is within three months,
this Report uses each company’s financial statements based on the fiscal year, and makes
necessary adjustments with regard to important transactions that occurred between the two
accounting dates.

● Verification of the reliability of this Report
Performance indicators marked by an asterisk * have been verified by a third party, SGS Japan Inc.
As a result of third-party verification, no important issues that require correction were found.

CSR Themes, Targets, and Performance

Social Report
21

Providing Value to Customers

22

Cooperating with Suppliers

23

Together with Employees(Human Rights / Employment / Human Resource
Development / Safety and Disaster Prevention)

27

Together with Local Communities(Community Participation)

Environmental Report
28

Business and Environmental Activities

30

Environmental Management

31

Addressing Global Warming

33

Reducing Waste and Water Usage

34

Reduction of Environmentally Hazardous
Substances

35

Environmental Activities of 12 Group
Companies Outside Japan

37

Third-Party Opinion

Publication datePrevious publication: August 2015
Current publication: August 2016
Next publication: August 201701

Message from the President

We Will Contribute to Society by Promoting
CSR Activities with Sincerity and Creativity.

We express our heartfelt sympathy to those who were affected by
the Kumamoto earthquake, and hope for the earliest possible

Promoting Global Development to Achieve
Our Business Target

recovery of the affected areas.
Among the five key initiatives under the LIP-2016, global

Promoting Business Activities for the Leap
Forward Based on LIP-2016

development is our most important challenge as we aim to meet
our business target of an overseas sales ratio of 40% or more.
One of the initiatives in this area was full participation in the

As a leading company in the field of adhesive materials, the Lintec

world’s largest labeling exposition, LABELEXPO EUROPE 2015, held

Group has provided a wide variety of products created using

in Belgium in September 2015. We introduced our new products inunique technologies such as technologies for applying adhesives

our large exhibition booth to communicate the advantages of theand for modifying surfaces.

Lintec Group to user companies in Europe and around the world. In

Since fiscal 2014, we have been working on business activities

recognition of our recycled PET labeling material, the Expothat will result in a further leap forward with the five key initiatives

presented the Label Industry Global Award to Lintec, the first

set in our medium-term business plan, LINTEC INNOVATION PLAN

Japanese company to receive the award (see page 28 for details).

2016 (LIP-2016): further promote global development; create

In December 2015, we completed our clean adhesive coating

innovative new products that will support the next generation;

facilities in Thailand, laying the foundation for the speedy provisiontransform into a robust corporate structure: promote strategicof our high value-added products in Asian countries, primarily in

M&As; and foster human resources.

Southeast Asia.
With the globalization of our business activities, our businessMedium-term Business Plan [LIP-2016](April 1, 2014 to March 31, 2017)

scope is expanding beyond national boundaries and our
stakeholders are diversifying. Accordingly, we are reinforcing
global-standard governance, risk management, and compliance.

Basic Policy

Return to Growth Path through Active
Management and Continuous
Innovation

Key Initiatives

1. Further promote global development
2. Create innovative new products that will
support the next generation
3. Transform into a robust corporate structure
4. Promote strategic M&As
5. Foster human resources

Strengthened Hardware and Software for
the Creation of Innovative New Products
In order for the Lintec Group to achieve sustainable growth,
creating innovative new products is as important as global
development. This initiative has seen steady progress in terms ofboth hardware and software.
In hardware (facilities), the fully-fledged operation of a new

02

Hiroyuki Nishio
Representative Director, President,
CEO and COO
LINTEC Corporationbuilding named the Advanced Technology Wing started at our

without “Creativity.”

Research Center. Developing new materials and mass-production

Meanwhile, in taking on the challenges of these creative

processes in an integrated manner at the new building, will allow

initiatives, we need to build a strong business foundation. That

us to accelerate the launch of innovative new products.

requires “Sincerity,” the spirit of working sincerely on all tasks,

In software (culture), we have held a number of Aggressive

including compliance with laws and regulations, fair transactions,

CSR workshops. Young and middle-level employees from across ourrespect for human rights, and a comfortable working environment.

company participated in a total of five workshop sessions to

What is important in making a judgement is deciding what is good

examine new business models that may improve or solve social

and what is bad, rather than pursuing percentages. I believe that,issues. We are discussing specifically moving forward with uniqueby continuing with these sincere actions, we will surely earn theand feasible ideas presented at the workshops.

trust of customers and society.

We are committed to developing innovative business models
that are the result of free thinking, outside existing frameworks.

All employees will jointly promote CSR activities based on“Sincerity and Creativity” to meet stakeholder expectations andcontribute to society.

Set Indicators to Measure Progress of Materiality(Important Issues)

To communicate our CSR activities broadly to the public and all
employees, this report clearly summarizes the results of our CSR
activities during fiscal 2015.

The Lintec Group identified its materiality (important issues) inWe would appreciate the continued support and guidance offiscal 2014, and set key evaluation indicators*1 for each of theall our stakeholders.

issues identified in fiscal 2015. This will help us push forward with

*1 For key evaluation indicators, see page 10.

total optimization group-wide, instead of partial optimization for
individual issues.
We will implement PDCA cycles for our CSR activities to checkprogress in the processes that will move us toward achieving thetargets for the relevant issues.

Trust Lies beyond Sincere Actions
The foundation of these CSR activities is the company motto:“Sincerity and Creativity.”
Attempts to enter new, more global fields and to create
unprecedented innovative new products will not be achieved

03

Overview of the Lintec Group

What Is the Lintec Group?
Evolving four basic
technologies to provide
products for everyday life
Achieving an integrated system
for the mass production ofadhesive products
The Lintec Group has established a wide range of proprietary
technologies for the production of release base paper, releaseagent coatings, surface base material coatings, and adhesive
coating and gluing, which establishes a unique and integrated
system for the mass production of adhesive products.

Information ofeach segment

Printing- andindustry-related
segment

Adhesive
application
technologies

Surfacemodification
technologies

Technologies fordeveloping, mixing andcoating adhesives

Technologies for developing,mixing and coating withsurface coating agents

Creating new values in three businesssegments with high-level integration of
the four basic technologies

Technologies
for systemization
Developing technologies
related to gluing, releasing,and processing

Technologies for
manufacturing
specialty papers andrelease agents
Paper-making technologies;
technologies for developing,mixing and coatingwith release agents

Adhesive papers and films for labels

We provide products to which various functions are added tosuit the purpose or usage environment, including: adhesive
papers and films for labels on household goods, foodproducts and home electronics, tapes for fixing parts ofmobile devices, adhesive products for automobiles, industrial
barcode printers, labeling machines for automatic labeling,
window films for buildings and automobiles, materials foroutdoor signage and advertisements, marking films fordecorating car bodies, and interior decorative sheets.
Sales(Million yen)

100,000 90,093

82,761

86,27186,764

87,638

2012

2013

2014

2015

50,000

0

2011

(FY)

(See page 01 for a note on the fiscal year of consolidated subsidiaries.)

04

Films for car windows

Information ofeach segment

Electronic- andoptical-related
segment

Semiconductor-related tapes and devices

We provide products that leverage our unique R&D andtechnologies, including special tapes for semiconductor chip
manufacturing and mounting processes, devices to make thebest of these tapes’ properties, release films indispensable forlaminated ceramic capacitor manufacturing, adhesive
products related to liquid crystal displays, and products
related to touch screens.
LCD films

Sales(Million yen)

100,000
73,87472,352

2011

2012

79,13983,20785,422

2013

2014

2015

50,0000(FY)(See page 01 for a note on the fiscal year of consolidated subsidiaries.)

Information ofeach segment

Paper- andprocessing-related
segment

Greaseproof paper

Taking advantage of paper-making technologies, we provide
a wide variety of products, including: color envelop paper andcolor paper in a wide array of colors, function paper including
greaseproof paper and dust-free paper for food packaging,high-quality printing paper, and release paper and releasefilm for protecting adhesive coated surfaces, as well as
casting paper used when manufacturing synthetic leather andcarbon fiber composite materials.
Casting paper for carbon fiber
composite materials

Sales(Million yen)

50,00036,93735,73037,83137,28337,440

2011

2012

2013

2014

2015

25,0000(FY)(See page 01 for a note on the fiscal year of consolidated subsidiaries.)

05

Overview of the Lintec Group

Global Network Supports Our Activities
In response to the views of our stakeholders,
all employees of the Lintec Group are engaged in CSR activities to help build a better society.

Europe2

Netherlands
Germany

companies,

26

Japan

employees

Hungary

9
3,401
companies,

Japan

China

IsraelSouth Korea

India

TaiwanThailand

25

employees

United States

Philippines

Vietnam
Malaysia

Asia

United States

3

Singapore
Indonesia

companies,

Overseas sales■ Manufacturing subsidiary

1,359■ Overseas sales(Million yen)
80,00033.2

companies,

239

32.8

33.7

36.0

employees

Overseas sales ratio

38.8

39.1

60,000(%)
4030

employees
40,00020
70,590■ Sales subsidiary, branch, office

65,95164,34373,09280,34082,26220,00010■ R&D center■Covered in the Corporate Profile below
Note: The number of employees shown here includes employees of non-consolidated subsidiaries.

0

2010

2011

2012

2013

2014

2015

0
(FY)

(See page 01 for a note on the fiscal year of consolidated subsidiaries.)

Corporate Profile (as of March 31, 2016)
Company name

Lintec Corporation

Head office23-23, Honcho, Itabashi-ku, Tokyo 173-0001, Japan

Websitewww.lintec-global.com/

Established

October 1934

Capital23.2 billion yen

Stock listing

Tokyo Stock Exchange, First Section (Securities Code: 7966)Fiscal year-end

March 31

Representative

Hiroyuki Nishio, Representative Director President, CEO and COO

Number of employees

Consolidated: 4,246 Non-consolidated: 2,535

Sites

Sales offices:

Iidabashi (Tokyo), Sapporo, Sendai, Hokuriku(Toyama Prefecture), Shizuoka, Nagoya,
Osaka, Hiroshima, Shikoku (Ehime
Prefecture), Fukuoka, and Kumamoto

Production sites: Agatsuma (Gunma Prefecture), Kumagaya(Saitama Prefecture), Ina (Saitama
Prefecture), Chiba (Chiba Prefecture),
Tatsuno (Hyogo Prefecture), Shingu (Hyogo
Prefecture), Komatsushima (Tokushima
Prefecture), Mishima (Ehime Prefecture),Doi (Ehime Prefecture), and Niihama (Ehime
Prefecture)
R&D facility:

06

Research Center (Saitama Prefecture)

Business activities

Development, manufacturing, and sales of adhesive
products (adhesive papers and films for labels, marking
films, window films, semiconductor-related tapes, optical
function film, etc.); specialty papers (color envelope
paper, color paper, special function paper, etc.);
processing materials (release paper, release film, casting
paper for synthetic leather, casting paper for carbon fiber
composite material, etc.); and adhesive-related devices(label printing machines, labeling machines,
semiconductor-related equipment, etc.)

Sales(fiscal 2015)

Consolidated: 210.5 billion yen
Non-consolidated: 164.5 billion yen

Operating income(fiscal 2015)

Consolidated: 17.7 billion yen
Non-consolidated: 10.0 billion yen

For more detailed financial
information, see the Investor Relations
section of the Lintec Website at
http://www.lintec-global.com/ir/.

Financial and Non-Financial Highlights(Consolidated)
See page 01 for a note on the fiscal year of consolidated subsidiaries.
Sales(Million yen)

200,000

200,905 190,844

Operating income

Sales by segment (Fiscal 2015)(Million yen)

(Million yen)

210,501
203,242 207,255
20,00013,975

13,766

16,881 17,692

10,564
100,000

10,000

0

0
2011

2012

2013

2014

2015 (FY)

2011

2012

2013

Ordinary income

Current net income(Million yen)

(Million yen)

2014

2015 (FY)Paper- andprocessingrelated
37,440Electronic- andoptical-related
85,422

Dividend per share■ Dividend per share

20,00017,901 17,623
13,613

0

11,659 10,899

7,681

8,501

2012

2013

25

2014

2015 (FY)

2011

2014

● ROE

ROA

(Million yen)

200,000

6.6
5

7.4

7.2
5.6

6.5
5.2

100,000

5.8

7.8

2011

2012

2013

2014

2015 (FY)

2012

2013

2014

2015 (FY)

2011

(%)

250

120

4,223

4,413

4,246

7,263

6,849

6,771

2013

2014

7,644

182

169

184

203

202

200

150

2012

2015 (FY)

Ratio of quality accidents(non-consolidated)(1,000 tons CO2)

4,270

2015 (FY)

2,000(Persons)

4,286

2014

6.0

CO2 emissions (non-consolidated)

4,000

2013

0
2011

200

2012

5,000

Number of employees

6,000

25

6.4

0

0

29.7

6,154

10
240,720
216,048 225,073 237,444

36.8
33.1

R&D expenses(%)(Million yen)

2011

2015 (FY)ROE / ROA

Total assets

34.7

0

0

210,203

50

42

40

10,000 8,648

300,000

48

(%)
54

34

10,000

2013

35.7

50

20,00013,1652012

Dividend payout ratio(right vertical axis)(Yen)

10,981

2011

Printing- andindustryrelated
87,638

Total
210,501

100

100

80
60

100
2,000

40

50
0

0
2011

2012

2013

2014

2015 (FY)

25

20
1990

2011 2012 2013 2014 2015 (FY)

20

18

14

12

0
2003

2011 2012 2013 2014 2015 (FY)
(Ratio to the number recorded in fiscal 2003)

07

CSR in the Lintec GroupThe CSR in the Lintec Group is built on its company motto “Sincerity and Creativity.”
All Lintec people are committed to CSR activities with this motto.

Company
Motto

Unchanging belief of Lintec

Sincerity andCreativity
Important values supporting thecompany mottoManagement Philosophy
Basic concepts forpromoting CSR

LINTEC WAY
Rules as daily
action guidelines

We will meet the expectationsof stakeholders andcontribute to the sustainablegrowth of society through ourbusiness activities based on
corporate governance, andthis will improve ourcorporate value.

Basic CSR Approaches
Lintec Group Compliance Guidelines
Medium-Term Business Plan

Practicing CSR through the Core Business

CSR Promotion System

Many stakeholders support the business of the Lintec Group. To

The CSR Management Office under the direct control of themeet these stakeholders’ expectations and be trusted by them, allpresident strives to foster high ethical standards, disseminate

Lintec Group employees actively conduct CSR activities with theinformation on CSR, and support the initiatives of the CSR

company motto “Sincerity and Creativity” at the center and incommittees. The CSR committees, which have aaccordance with “LINTEC WAY” which is an important value

cross-organizational membership and each of which include ansupporting the company motto, the Basic CSR Approaches and theofficer in charge, lead initiatives with responsibility from the

Lintec Group Compliance Guidelines.

standpoint of management.

To achieve the medium-term business plan, LINTEC INOVATION
President and CEO

PLAN 2016 (LIP-2016), which started in April 2014, we need to

CSR Committees*1 For key evaluation indicators, see page 10.

08

Cost Innovation Office

General Affairs & Personnel Division
Administration Division
Safety, Disaster Prevention,and Health Committee

strategic CSR activities.

Corporate Ethics Committee

evaluation indicators*1 in fiscal 2015 based on our identified

Social Contribution Committee

CSR activities in our core business, the Lintec Group set new key
materiality, and has been implementing PDCA cycles in our

Corporate Strategic OfficePublic Relations Officeactivities directly impact the business and in order to implement

Environmental Preservation Committee

activities on a global basis. With strong awareness that CSR

Audit Office

CSR Management Office

Customer Satisfaction Committee

enhance group management. Therefore, we are conducting CSR

Business Administration Division
Quality Assurance & Environmental
Protection Division
Production Division
Research & Development Division
As of April 1, 2016

ISO 26000

Participation in UN Global Compact
Having participated in the United Nations Global Compact since April

ISO 26000 is an international standard that defines social

2011, the Lintec Group conducts business activities based on the following

responsibilities of all organizations. By referring to the seven core

Ten Principles to contribute to the sustainable growth of society.

subjects, the Lintec Group promotes CSR activities.

●Human Rights●Environment

Principle 1: Businesses should support andrespect the protection ofinternationally proclaimed humanrights; andPrinciple 2: make sure that they are notcomplicit in human rights abuses.

Principle 7: Businesses should support aprecautionary approach toenvironmental challenges;
Principle 8: undertake initiatives to promote
greater environmental
responsibility; andPrinciple 9: encourage the development anddiffusion of environmentallyfriendly technologies.

●Labour

Principle 3: Businesses should uphold thefreedom of association and the●Anti-Corruption
effective recognition of the rightPrinciple 10: Businesses should work against
to collective bargaining;corruption in all its forms,
Principle 4: the elimination of all forms ofincluding extortion and bribery.
forced and compulsory labour;
Principle 5: the effective abolition of childlabour; andPrinciple 6: the elimination of discrimination in
respect of employment andoccupation.

Organizational governanceFair operating practices

Human rights

Consumer issues

Labor practices

Community involvementand development

Environment

Stakeholder Communication
To meet social expectations, the Lintec Group proactively holds dialogues with stakeholders.

Customers

We aim to improve products and services to build trusting
relationships and improve customer satisfaction.

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Suppliers

We aim at fair transactions, mutual understanding, thoroughcompliance with laws, and trusting relationships.

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Local
communities

We aim at mutual understanding with locals and giving backto local communities.

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Employees

We aim to make the working environment rewarding in linewith the company motto.

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We aim to improve corporate value and build trusting
relationships.

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Shareholders/investors

Value Chain of the Lintec Group
The Lintec Group is working to implement CSR with its suppliers throughout the value chain.

Raw material
procurement●Implement CSR
procurement to co-exist
and co-prosper with
suppliers.

R&D

Manufacturing

Distribution

Sales

Disposal/
Recycling●Create new innovative●Improve production●Reduce environmental●Provide security and●Reduce waste and use it

products for society, led
by the R&D Division.

efficiency, reduce
environmental impact,
and mass-produce new
products in andoutside Japan.

impact and achieve astable supply of
products as a result ofour modal shift.

trust based onhigh-quality
manufacturing that cansatisfy customers.

effectively.

09

Process of identifying materiality and setting
key evaluation indicators

Materiality (Important Issues)
For further promotion of CSR activities and in response to stakeholder demands, in fiscal 2014

STEP1 Identify issues

the Lintec Group identified its materiality, following steps 1 through 4 on the right. In fiscal

We identified CSR-related issues to beconsidered based on ISO 26000, G4 andother guidelines and through communication
with stakeholders.

*1

2015, the Lintec Group set key evaluation indicators .

Materiality

Governance

Scope
Circles mean applicable
External

Operating global governance○○In operating business globally, we need to develop a strategic global management system
at a high level above local laws and regulations, divide the roles of execution andsupervision, clarify policies, and implement the policies.

Effectively using raw materials○○

We are using petrochemical materials, pulps and water. Resource depletion has an impact
on the sustainability of society. Stable procurement of some materials may become
unavailable. Therefore, we need to reduce their consumption and use them effectively.

Reducing atmospheric emissions○○

Atmospheric emissions of greenhouse gases, ozone depleting substances, VOCs, and so on
have an impact on the entire globe and must be reduced. Strategic initiatives, such as total
emissions management, are required.

Making environmental contributions
through products and services○○

With the growing need for environmental consideration in all phases from development toproduction, product use and disposal, LCA*2 management is indispensable. It is crucial for
us to consider the products we provide to various industries.

Ensuring environmental compliance○○

The matters subject to environmental regulations, as well as the regulation method, vary
among regions. We will need to accurately understand local legal systems and take proper
actions in compliance with laws and regulations related to the atmosphere, water quality,
noise, vibration and other pollutions in emerging and developing countries.

Ensuring occupational health andsafety○○We need to understand the situations of our suppliers in key developing countries and takenecessary actions, beyond occupational health and safety within Lintec. It is also becoming
important to take actions related to mental health.

Achieving workplace diversity○–

A comfortable working environment requires considerations for diversity (e.g., gender,
minority, LGBT*3). We need to develop policies for achieving diversity to secure acompetitive advantage in management.

Improving employee satisfaction○–

Employees are important stakeholders of Lintec. For the long-term growth of a company, aprerequisite is that employees are proud of and satisfied with their work.

Conducting human rights
due diligence*4○○

As we procure from around the world, it is becoming crucial to understand human rights
risks at our primary suppliers and enhance education and supervisory systems forstakeholders to protect human rights throughout the SCM*5.

Ensuring social compliance○○

As the matters that are subject to social laws and regulations, as well as the regulation
method, vary among regions, we need to accurately understand local legal systems. We
need to aggregate the information about local situations to link and improve the global
management systems.

Ensuring product compliance○○

As the matters that are subject to product-related laws and regulations, as well as theregulation method, vary among regions, we need to accurately understand local legal
systems. It is indispensable to provide a stable supply of products, ensure thorough quality
management and improve services.

Making contributions to sustainableconsumption○○

As a manufacturer of materials for a variety of purposes, we need to consider the consumer,
and publicize and disseminate information.

Achieving harmonious co-existencewith local communities○○

Contacts with local communities increase as we expand globally. In recognition that any
company is supported by the local community and society while comprising a part of them,
we need to make various contributions to ensure harmonious co-existence with society.

Developing business models for
local production & consumption in
emerging countries○○

We will promote the utility of adhesive products, provide useful products for emerging
countries, and operate business globally with emphasis on quality. We need to launchbusiness models horizontally by creating local demand and pursuing local procurement
further.

Entering new areas○○

We will enter new areas in response to global customer needs and social issues while
recognizing our current strengths and weaknesses in technology and development. We
need to consider social aspects (e.g., safety, quality, price) through stakeholder dialogue.

Theenvironment

Labor
practices

Society

Contribution
to business*1 Key evaluation indicators: Evaluation indicators are important indicators of organizational
strategies, and quantitatively measure progress toward targets.
*2 Regarding LCA, see page 17.

10

Background of selection

Internal*3 LGBT: Lesbian, gay, bisexual and transgender. LGBT is a generic term for sexual minorities.

STEP2 Determine priority

STEP3 Check validity

STEP4 Set key evaluation indicators

We determined the priority of the identified
issues from the two perspectives of theirimportance to the Lintec Group and theirimportance to stakeholders.

We received an evaluation and approval fromthe president as the chief decision-maker on
CSR as well as from external experts.

We disclosed our identified materiality. In
light of the progress in our activities, we set
key evaluation indicators in fiscal 2015.

Issues we should work on

Enhance and operate the management system.

Key evaluation indicators

Relatedpages

Enhance global governance.

(1) Use of consultation contact points in and outside Japan(2) Results of audits by the Internal Audit Office according
to local laws and regulations and internal standards

18
19

Procure materials that will help to reduce
environmental impact based on the Lintec
Procurement Policy.

Weight of organic solventsーReduce emissions into the atmosphere based on
our mid-term environmental target.

(1) CO2 emissions froWm manufacturing(2) VOC emissions

17
31

Develop and spread environmentally friendly
products through LCA.

Number of environmentally friendly products developed

32

Ensure and manage environmental complianceusing the environmental management system.

Number of violations of environmental laws andregulations

30

Conduct activities to ensure occupational safetyaccording to the occupational safety and healthmanagement system.

(1) Number of occupational accidents and accidents
resulting in absence from work
(2) Working hours with no occupational accidents

25
26

Respect the diversity of employees and provide
rewarding workplaces.

(1) Ratio of female managers(2) Return to work after taking time off for childcare
leave or family care

23

Build working environments where employees feel
motivated to work.

Turnover of third-year employeesーRespect human rights and determine risks
throughout the supply chain.

Number of responses to supplier survey

22

Instill and ensure group-wide compliance.

Response rate to compliance survey by officers andmanagers

18

Use the quality management system to eliminate
and prevent accidents.

Number of serious product accidents reported

21

Publicize the effects of environmentally friendly
products to stakeholders.

Number of exhibitions participated in as an exhibitor in
and outside Japan (activity evaluation)

CSR site

Introduce social contribution activities for local
communities as a good corporate citizen.

(1) Total number of participants on plant tours(2) Implementation of social contribution activities

CSR site

Development of a system for registering local raw
materials at sites outside Japanー

Number of patent applications (activity evaluation)ーSpecific actions

Reduce environmental impact and comply withenvironmental laws and regulations.

Provide workplace environments where employees
can work with peace of mind and ensure the safety of
our employees in emergencies.

Promote stakeholder-friendly global communication.

Promote business models that are friendly to theenvironment and society, and create businesses thatcan contribute to solving social issues.

Conduct R&D for products intended for local
procurement and for solving social issues.

*4 Human rights due diligence: A process exercised by an organization not only to comply
with laws but also to address and reduce the risk of human rights violations (ISO 26000
6.3.3. Human Rights Issue 1).

*5 SCM: Supply chain management. Optimized organization and management of a series offlows from material procurement to production, sales and distribution and to final users.

11

Highlight 1

Aim to Reduce CO2 by Changing theDistribution Structure through a Modal Shift
As part of its efforts to address global warming, Lintec is promoting a modal shift*1, i.e., changing its
freight transport means from trucks to railways and ships. In Highlight 1, we introduce the results of ourmodal shift activities while reviewing past initiatives based on feedback from the staff in charge.

Hiroshi Fujishima

Akio Shimonabe

General Manager
General Manager
Fine & Specialty
Cost Innovation
Paper Products andOfficeConverted Products
Operations Department

Yoshihiro Tobise

Kazuhito Ishikura

Assistant General
Manager
Cost Innovation
Department

Assistant General
Manager
Environment and
Safety Department

RORO ship berthed at the Port of Chiba

Reducing CO2 Emissions and Transportation
Costs by Changing the Mode of Transport from
Truck to RORO Ship*2

the Port of Mishima-kawanoe. Since then, 100 tons of products permonth (180 tons per month since July 2015) have been delivered tothe sales warehouse and customers in the Kanto region via the Portof Chiba. Starting in September 2014, we have been using RORO

Recently, modal shift is drawing attention as a way to address

ships for product transportation (100 tons/month) from theglobal warming, and is expected to improve social problems,

Kumagaya Plant to the Shikoku region.

including shortages and overwork for truck drivers, and road“To change transportation to RORO ships, we had a hard timecongestion. Currently, Lintec is implementing modal shift primarily

negotiating with distribution companies and coordinating ourfor distribution between its sites. The move was triggered by aninternal shipment and receipt systems,” says Fujishima.

initiative of the Fine & Specialty Paper Products Operations, which“Consequently, we reduced CO2 emissions from transportation as

Hiroshi Fujishima from these operations reviews as follows:

well as transportation costs. We have realized great benefits from

“The topic of modal shift was first raised around April 2013. As

introducing modal shift.”one of the key items on the agenda of a meeting on infrastructureenhancement for the fine & specialty paper products business, we
discussed what means of transport could replace conventional
truck transport and cut distribution costs. After deciding to get
involved in modal shift as much as possible, we examined various
means of transport using both land and sea routes, and finallyselected RORO ships.”
Six months later, in October 2013, the first RORO ship loaded

12with products manufactured at the Mishima Plant departed fromSecuring goods in the cargo area of the truck to prevent them from collapsing (left) and securing the truckon the ship (right)*1 Modal shift: An initiative to reduce CO2 emissions by changing the mode of transport forpassenger or cargo transportation from truck to railway or ship, allowing mass transport.

*2 RORO ship: RORO (roll-on, roll-off) ship allows trucks loaded with cargo to drive on andoff the ship under their own steam.

Identifying Routes for Modal Shift by Checking
the Distribution Data for Each Site

railway container we are using for the route was developed as partof the railway industry’s modal shift measures, and met our needs.”

The initiative drew the attention of the Cost Innovation Office,headed by Akio Shimonabe.
“The Cost Innovation Office had taken various measures to reducetransportation costs group-wide,” says Shimonabe. “However, in order
to comply with the Act on the Rational Use of Energy and respond to
the future decline in the population of truck drivers, we had to review
our distribution methods drastically. The initiative at the Fine &Specialty Paper Products Operations was precisely an example of the

Improved transportation efficiency with the use of railway containers with a loading capacity equivalent
to a large truck

structural reform of distribution we envisaged.”
In April 2014, led by the Sapporo Branch, we switched truck
transport to RORO ship transport for part of the products shipped

Launching Modal Shift Group-Wide to Build aDistribution Structure with Low Environmental Impact

from the Tatsuno Plant to Sapporo. Concurrently, we collecteddistribution data from our sites across Japan to investigate the

Kazuhito Ishikura of the Environmental Safety Department explainstransportation distance and cost for each shipment. Based on an

the advantages of modal shift as an environmental activity:

accurate understanding of the group-wide flow of goods, we
identified the transportation routes where we should implement
modal shift.
“After discussions based on the survey results, we decided to“The Environmental Safety Department has been promoting
environmental activities primarily at plants. In order to cut more
CO2 emissions from the production process, investment, such as
facility improvement, is often required. Modal shift can reduce both

apply modal shift to routes of 500 km or longer,” explains

CO2 and transportation costs, and therefore is effective as a

Shimonabe. “We found that, when the transportation distance iscorporate environmental activity. Modal shift is also important inover 500 km, we can have the benefits of modal shift and reduce

terms of playing a role in the socially required activity to reduce

CO2 emissions.”

CO2 emissions across the supply chain.”
Triggered by the Fine & Specialty Paper Products Operations,Switching to Railway Transport to Match theTransportation Route Conditions

modal shift is being expanded group-wide by the Cost Innovation
Office. We will use railway and ship transport on varioustransportation routes to build a distribution system with lower

Besides the shift from trucks to RORO ships, Lintec hasenvironmental impact.

implemented a modal shift to railway transport. In June 2015, theSapporo Branch switched from truck to railway for part of theroute for transporting products from one of its contractors in
Shizuoka Prefecture. Yoshihiro Tobise of the Cost Innovation
Department was in charge of the shift.
“The volume of goods transported on the route was not

CO2 reduction with modal shift
Truck
transport

Sapporo100

Tomakomai

large enough to use a RORO ship, and we had sea route
constraints. So we selected railway transport,” relates Tobise.
“There are multiple transportation methods for modal shift. It is
crucial to choose the best way depending on the transportationroute and its conditions.”
Following the Shizuoka-Sapporo route, in May 2016, truck
transport was changed to railway transport for part of the products
and goods in process transported from the Tatsuno Plant in Hyogo
Prefecture to Tokyo Lintec Kako, Inc. in Saitama Prefecture. In thatcase, we negotiated with railway companies to use railway
containers with a 13-ton loading capacity (internal volume of48m3), which is equivalent to a large truck.
“Modal shift is a national commitment,” adds Tobise. “TheAfter
modal shift*

31
RORO ship transport 28

About 70%
reduction

Railway transport 3
Note: In the graph above, CO2 emissions after modal shift iscompared with CO2 emissions for truck transport for
the route where modal shift is implemented.

Key transportation routes where
modal shift is implemented
Tokyo
Lintec Kako

RORO ship
Railway
Truck

Koshigaya
Tsuruga
TatsunoChiba

Himeji

Okayama
Osaka
Shikokuchuo

Regarding the asterisk *, see page 01.

13

Highlight 2
CSR Workshops

Aggressive CSR for the Creation of
Corporate Value
In 2015, the Lintec Group started CSR Workshops with the goal of creating new business models andmechanisms to solve social issues so that it can respond to stakeholder demands and achievesustainable growth with society.

of five CSR workshops in six months. The workshops were designed

Creativity Supporting Sustainable Growth

to help individual employees learn the essence and methods of CSR
and become able to practice aggressive CSR. The 36 participants
were grouped into six teams. Each team held in-depth discussions

Having set “creating innovative new products” as one of key

to create new business models and mechanisms and develop

initiatives in its medium-term business plan, LINTEC INNOVATION

proposals in light of social issues. Each workshop offered a seminar

PLAN 2016 (LIP-2016), the Lintec Group aims to provide society

by an external guest speaker to provide the participants with anwith new values for sustainable growth. To that end and toopportunity to gain new knowledge and awareness.

respond to a changing society and stakeholder expectations, we
believe the practice of aggressive CSR is important.
The Lintec Group carries out all its business activities, as wellAims to Create New Values for the Lintec Groupas CSR, based on the company motto, “Sincerity and Creativity.”
Defensive CSR, which is the basis of our business activities,

At the first workshop titled, “Think about the Connection between

represents “Sincerity.” Meanwhile, aggressive CSR, including

Social Issues and Business,” the participants identified social issues

creating innovative products, is driven by ideas inspired byrelated to the Lintec Group by taking into account the latest social“Creativity.” To enable individual employees to further

trends, including United Nations SDGs*1. At the second workshop,

demonstrate “Creativity” so that the company is able to create

they presented their opinions on the strengths and weaknesses ofvalues, the Lintec Group launched CSR Workshops primarily forthe company, from standpoints that vary between departments. At

young and middle-level employees.

the third workshop, based on the social issues and the company’s
discussed strengths and weaknesses, each team thought about

Practice of Aggressive CSR by Individual Employees

what Lintec aspires to be by 2030 using the backcasting*2 method,
and what they should do now to that end. At the fourth workshop,
each team gave a presentation in preparation for submitting their

14

In 2015, the first fiscal year of the workshops, 36 young andproposals, while actively providing other teams with comments

middle-level employees from all departments participated in a totalthat may help them further review and improve the presentation*1 SDGs stands for Sustainable Development Goals. The United Nations adopted SDGs
comprising 17 goals and 169 targets in September 2015.

*2 Backcasting: A method that first defines desirable conditions or situations in the future
and then works backwards to identify what to do now to create that future.

content. Finally, at the fifth workshop, each of the six teams
presented its business model for solving social issues. Some of theComments from participants

proposals developed after the six-month discussions and● The workshop allowed me to discuss, think, and create
proposals from scratch with people from departmentsthat I have no contact with in my daily operations. The
sense of accomplishment was something I had never felt
since I joined the company. I am glad that I participatedin the workshops. I am also aware that the workshops
widened my personal perspective.

brainstorming were associated with uniqueness or potential statedin the LINTEC WAY, and are being worked on to be materialized
in the future.

Practicing Individual CSR
As the first series of CSR workshops ended, participants provided● I realized that businesses can change society, regardlessof their scale. That finding motivates me in my work
every day.

feedback, including the following: “I became more aware of therelationship between CSR and business”; “I realized that
innovation is made through communication between various
people”; and “All employees should have an attitude of aggressive● I found the workshop very difficult, but realized theimportance of CSR through the problem-solving process.
I got more and more involved in the subject each time.
I had a very meaningful time at the workshops.

CSR to face various issues.” Each workshop was very rich incontent, helping the participants to understand the essence of CSR
and motivating them to practice CSR in their workplaces.
The Lintec Group will continue to provide workshops and otheropportunities to help individual employees practice aggressive CSR
with “Creativity.”● I want to use what I learned in my work. Communicationand opinion exchanges with people from otherdepartments will definitely be assets for me in the future.
● I was particularly impressed by the backcasting
approach. I find the concept very helpful and will use it
in my work.

15

CSR Themes, Targets, and Performance
In order for Lintec to achieve sustainable growth together with society, the company must not only ensure legal compliance,
it must also undertake various efforts to meet the demands of society.Committees composed of cross-organizational members
matched to the company’s basic CSR approaches promote CSR activities.

Fiscal 2015 CSR Themes, Targets, and Performance

Environmental Preservation

Social Contributions

Safety, Disaster Prevention,and Health

Customer Satisfaction

Corporate Ethics

Basic Commitment

Treat corporate ethics and compliance aspriority management themes and ensurethat every employee is aware of theirimportance and practices them every day

Provide a stable supply of products andimprove quality management and service
based on the key concepts of assuring
customers of reliability and fulfilling
responsibilities

Proactively develop workplaceenvironments where people can work withsecurity, based on the concept of
improving employee satisfaction

As a good corporate citizen of both thelocal communities where we operate andthe international community, help solve
social challenges and carry out realistic
activities that contribute to thesustainable development of societies

As a materials manufacturer, conductcompany-wide activities in R&D,
production, and other areas based on theprinciple of reducing environmental
impact and effectively using resources

Theme● All employees behave as good citizens with
self-awareness● Aspire to be a company trusted by society byensuring thorough compliance● Promote ethics through interactive participation frameworks● Optimize and familiarize management rules (information security,
personal information, business secrets, etc.)● Expand and deepen ethics by promoting activities based on
employee proposals● Create (development/production/quality)● Learn FMEA*1 and promote its launch● Horizontally launch unique technologies● Sell (communication/operations)● Enhance marketing power● Improve individual skills● Enhance the development system● Enhance the planning system● Nurture (corporate culture/human resources)● Develop human resources● Penetrate the corporate culture● Take actions for BCMS (review/follow up theProcedure Manual)● Thoroughly revise the Disaster Response Procedure Manual in line withpractice● Establish immediate workplace safety and ahealth promotion framework● Provide mental care for employees● Maintain and manage the occupational safety and health management system● Enhance the mental health support system● Promote employee health● Take security measures for expatriate employees
and employees on overseas business travel(sickness, disaster, riot, etc.)● Take measures to prevent sickness in Japan● Share safety information with EM Committee*2 and secure safety● Establish means of communication● Reduce the number of employees infected with influenza● Establish measures against long working hours● Encourage the taking of annual paid leave● Decrease the number of employees working long hours● Establish effective measures for employees working long hours● Establish measures to encourage employees to take annual paid leave● Establish a system for safe commuting by bicycles● Secure the safety of employees commuting by bicycle (mandatory registration,
insurance enrollment and rule setting)● Sustainable activities● Community-based activities● Interact with local communities● Expand and firmly continue activities● Raise employees’ willingness to participate in activities and support their
participation● Ensure thorough compliance● Strict management of legal compliance● Enhance environment-related PR and education● Release 20 issues of Eco News● Conserve biodiversity● Develop an action plan in each site

● Develop environmentally friendly products● 12 development projects a year that satisfy the Lintec LCA Standard*3● Reduce CO2 emissions● Reduction target: 203,000 tons/year or less

● Reduce energy use● Improve the specific energy consumption by 3% (compared to fiscal 2013)● Reduce disposal costs for industrial waste● Waste discharge: 29,000 tons/year or less

● Ensure thorough management of chemical substances● 50 self-audits conducted by suppliers a year

● Reduce release of VOCs to the atmosphere● Target: 890 tons/year or less

*1 FMEA stands for Failure Mode and Effects Analysis, a method to prevent failure by
predicting potential failure modes in product design or other processes and analyze their
possible causes and impacts.

16

Fiscal 2015 Targets*2 EM stands for Emergency Management, an organization to ensure the safety of employees
stationed or dispatched in overseas sites.

We strive to fulfil our corporate social responsibility (CSR)
with all employees in the Lintec Group proactively
thinking and taking the initiative based on our company
motto “Sincerity and Creativity.” The LINTEC WAY, aneasy-to-understand interpretation of the company motto,
helps employees think about it as their own issue andnurture it further. In fiscal 2015, we held CSR workshops◎Achieved substantially

Progress○○Achieved

to develop a sense of unity through CSR activities and tohelp employees realize personal growth. We conduct CSR
activities through the concerted efforts of the company
and individuals to achieve sustainable growth for the
Lintec Group.

Toru Maki General Manager of CSR Management Office△Not achieved

Main Activities in Fiscal 2015

Comments from Officers in Charge
Businesses as public institutions should comply
with rules to meet social demands and trust. Suchrules include not only laws and regulations but
also corporate ethics and social norms. Mature
corporate ethics forms a foundation for thesurvival of businesses. We will honestly continue
to raise awareness of what businesses andindividuals should aspire to be.

● Continued the “Rinri Kawaraban” ethics news column andpublished a booklet● Provided e-learning course, “Familiar Security Risks 1”● Conducted self-audits on information security● Completely revised the Sexual Harassment Prevention Rules
into Harassment Prevention Rules● Created and put up posters on harassment prevention

Tsunetoshi Mochizuki
Director, Managing Executive Officer

○

○

○

● Started FMEA education through e-learning● Continued to share information on production technology
specific to each production site
● Provided rank-based workshops on collection of accounts
receivable and credit management for 10th-year employees
at the sales section chief level● Provided a briefing session on CS activities (Agatsuma Plant,
Kumagaya Plant, Chiba Plant, Research Center)

With the basic principle of securing customer
trust, sales, production and research divisions
will fulfil their responsibilities to further improvecustomer satisfaction in global markets.
Takashi Nakamura
Director, Managing
Executive Officer● Read through the Disaster Response Procedure Manual and practiced
part of it● Exchanged opinions with the BCMS Secretariat● Conducted mental health checkups● Promoted measures to separate smoking areas, and distributed posters
to raise awareness of giving up smoking● Provided employees with safety lectures in advance of business trips● Effectively used the Overseas Risk Management Manual● Established rules on commuting by bicycle

We will launch various initiatives to provide
better workplaces so that all the employees of
the Lintec Group can stay healthy and continue
to work safely with peace of mind.
Koji Koyama
Director, Senior Managing
Executive Officer

To be a company trusted by society, Lintec iscarrying out social contribution activities for anenriched society and sustainable growth. Our
corporate activities are supported by many
stakeholders. We will continue to launch themin various forms.

● Implemented community clean-up activities (2,838 employees)● Participated in local festivals● Participated in a campaign against local organized crime in Itabashi● Took initiatives to support persons with disabilities● Hosted plant and facility tours at five business sites (709 visitors)● Employees made blood donations (576 employees)

Shuji Morikawa
Director, Executive Officer◎● Conducted mutual internal audits to confirm environmental compliance at each site○

● Achieved the target by releasing 22 issues○● Each site participated in local community activities○● Achieved the target by developing 24 products○● Achieved the target with 200,000 tons/year○● Achieved the target with a 7.7% improvement compared to fiscal 2013○

● Achieved the target with 28,260 tons/year○● Achieved the target with 83 voluntary audits conducted a year△

● Did not achieve the target with 904 tons/year

Lintec aims to grow with society by developing
environmentally friendly products andmanufacturing them with low environmental
impact. At our sites in and outside Japan, we
will proactively promote community-based
activities to conserve biodiversity.
Koichi KimuraManaging Executive Officer

Fiscal 2015 Performance

Corporate
Governance
Practicing Sincerity

pp. 18–20
Organizational
governance/
Fair operating practices†

Social Report
Providing Value to Customers
Cooperating with Suppliers

pp. 21–22
Human rights/
Consumer issues/
Fair operating practices†

Together with Employees

pp. 23–26
Human rights/
Labour practices†

Together with Local
Communities

p. 27
Community
involvementand development†

Environmental
Reportpp. 28–36
The environment†† One of the seven core subjects of ISO 26000. This guide is referenced when reporting Lintec’s CSR activities.
*3 LCA (Life Cycle Assessment): A method for comprehensively assessing effects on theenvironment by calculating items such as the amount of energy and water input, theamount of raw materials used, and the amount of CO2 and hazardous chemical substances
emitted throughout a product’s lifecycle.

17

Corporate Governance
Organizational governance

Practicing Sincerity

Fair operating practices

As expressed by the Lintec Group’s company motto,“Sincerity and Creativity,” corporate ethics and complianceare themes of paramount importance in business
management. They are positioned at the foundation of CSR in
the group’s efforts to strengthen its management structure.

Corporate GovernanceCorporate Governance Framework
For organizational design*1, Lintec has chosen a company with anaudit and supervisory committee*2, and appoints directors as Audit
and Supervisory Committee members with voting rights, with theaims of stepping up corporate governance and improving
management further.
Lintec has four outside directors, including three directors as
Audit and Supervisory Committee members. Other specificmanagement initiatives include one-year terms for directors toclarify their responsibilities, and the adoption of an executive
officer system to separate directors in charge of making decisions
on important management issues from executive officers in chargeof business operations.
Corporate Governance System

General Meeting of Shareholders
Appointment/dismissal

Reporting/recommending

Board ofDirectors(directors)

Appointment/dismissal

Appointment/
dismissal

Audit andSupervisory
Committee
Auditing/
Cooperation(directors as
supervising committee members)

Account auditing
Internal control
auditing● Social Contribution
Committee● Safety, Disaster Prevention,and Health Committee

Promoting(directors andexecutive officers)

Reporting

Cooperation● Environmental Preservation
Committee

Management
meetings

Operations
Administrative
marketingproduction, andtechnical divisions
Domestic andOverseassubsidiaries

Internal auditing

Audit Office● Customer Satisfaction
Committee

Independent Auditors

President
CSR Management Office● Corporate Ethics Committee

http://www.lintec-global.com/csr/governance/corporate/

Compliance

The Lintec Group regards the basics of corporate governance to be
the practice of thoroughgoing compliance, maximum managementtransparency, awareness of corporate ethics, rapid
decision-making, and efficient administration of business
operations. The Lintec Group aims to increase its corporate value
by continually improving its corporate governance and common
benefit to shareholders.

Decisionmaking

CSR > Corporate Governance > Practicing Sincerity

All employees at the Lintec Group are committed to disciplining
themselves based on the corporate motto of “Sincerity andCreativity.” In February 2016, we conducted a compliance survey
with officers and managers (response rate: 82.6%* in 2016,
compared with 79.1% in 2015 and 85.7% in 2014). “Complianceself-check sheet” and “compliance training materials” arepublished in the Lintec intranet, available to all employees. All
employees use these materials to check their conduct. They also
use the materials
for compliancelearning activities
in theirdepartments.

CSR study session at Ina Technology Center

Global Surveys on Human Rights and Labor Standards
In February to March 2016, the Lintec Group conducted all-site
survey to check labor conditions and human rights at all groupcompanies*. As a result of the survey covering legal compliance,
elimination of discrimination, respect for human rights, prohibitionof child labor, prohibition of forced labor, wages, working hours,
dialogue and negotiation with employees, safe/healthy working
environment and human resource development, it was confirmedthat all sites comply with local and regional laws and regulations,that the Lintec Group Compliance Guidelines are well understoodby employees, and that Lintec employees work in a healthy andsafe working environment where their fundamental human rights
are respected. We will continue this regular survey every year tounderstand our current conditions, and improve them.
Awareness Raising with the Compliance Guidelines
At the Lintec Group, we issue a code of conduct
booklet, “Compliance Guidelines,” to enhanceeach employee’s compliance awareness. Using
the booklet, revised in April 2014, we held CSR
study sessions both in and outside Japan in
fiscal 2015.

Operational
implementation

18*1 Organizational design: Determining the structure of organizations (e.g., shareholder meeting, boardof directors) in charge of decision-making or operation of a joint-stock company*2 A company with an audit and supervisory committee: A stock company where its audit andsupervisory committee, comprising more than three directors (with outside directors as a majority) as
committee members, audits and supervises how directors administer business operations.

*3 BCMS stands for a Business Continuity Management System. It is a management technique todevelop a business continuity plan, based on the understanding of the current conditions of theorganization, to ensure that the businesses are continued in the event of a serious incident(see page 22) that will or may have grave impact on major products/services of the organization.
Drills are also performed to validate the effectiveness of the BCP.

Compliance with the Antitrust Law & Prevention of Corruption
The Lintec Group issued volume 8 of an internal legal newsletter,“Will Japanese Companies be Judged by Foreign Laws?
Extraterritorial Application of Foreign Laws” in fiscal 2015 to raise
employee awareness of legal compliance outside Japan.
We also covered the Guidelines for the Antitrust Law in ourCompliance Guidelines.

Environmental Report

The Lintec Group strives to prevent problems by identifying all
possible risks associated with company management and working
at making improvements throughout the group according to thedegree of urgency and importance. We also identify risks on aquarterly basis to understand the situations within the company
and improve our risk management ability.

Helpline
Lintec has a helpline (internal reporting system) for employees toobtain consultations on legal violations and other workplace
worries. In April 2008, Lintec added a third-party corporate lawyer
to the helpline system, to facilitate prompt consultations andinvestigations. Efforts have been made to raise internal awarenessof the helpline in order to encourage its use, including mentioning
it in the Compliance Guidelines. The goal is to quickly identify andsolve problems.
In May 2015, we established rules on the global
whistleblowing system, covering group companies outside Japan,
to accept reporting in English.

Social Report

Risk Management

Information Security Management
Lintec conducts internal audits every year in each department
based on detailed regulations on information security and internal
audit check list.
In November 2015, our Corporate Ethics Committee conducteda self-audit using a check sheet and confirmed that eachdepartment properly understands the contents of the Information
Security Management Regulations. In February 2016, we provided
an e-learning program, “Familiar Security Risks 1,” to call attention
to the use of smartphones and SNS.

Corporate GovernanceFostering Sense of Ethics
Rinrin Kawaraban, which started in fiscal 2006, is an intranet
ethic news column featuring a short haiku-like poem with anadditional explanation to familiarize employees with standards for
ethics and conduct. The poems
are compiled and published as abooklet. Volume 9 of the booklet,
issued in March 2016, introduces
voices of employees stationed
outside Japan under the theme of“Sincerity in Any Place.” Thepoem compilations are also
shown to suppliers andcustomers as an example ofLintec’s CSR initiatives.

Establishing group-wide BCMS*3
Lintec Corporation and Tokyo Lintec Kako, Inc. have developed a
BCP*4 to be able to protect the life of employees, continue tosupply products, and resume business as early as possible after anearthquake or other disaster. In March 2014, they became certified
under an international BCMS standard, ISO 22301:2012*5. With theaddition of Lintec Specialty Films (Taiwan), Inc. in fiscal 2015, weare activating and enhancing efforts to spread BCMS.

Initiatives to Enhance the Governance System

Voice

01

With the enforcement of the Corporate Governance Code*6 in June 2015, we haveexamined Lintec’s initiatives with regard to all of 73 items of the principles. We are making
continued improvements after discussing the insufficient initiatives with top management
and outside directors. We also confirmed that the change to the Audit and Supervisory
Committee complies with the principle, and adopted a training program for officers and amechanism for evaluating the Board of Directors. We will continue to enhance ourgovernance system.

Tsunetoshi Mochizuki, Director, Managing Executive Officer*4 BCP: A plan developed in advance to enable the minimization of damage and the continuation or
early resumption of business in the event that a company encounters an emergency situation such as
an accident or disaster.
*5 ISO 22301: An international standard for BCMS that a corporation or organization should follow inestablishing and effectively operating a system to prepare for earthquake, fire, trouble in the IT

system, financial crisis, bankruptcy of supplier, pandemic, or other natural disaster or accident.
*6 Corporate Governance Code sets key principles of the code of conduct which listed companies
should comply with to enhance corporate governance.
Regarding the asterisk *, see page 01.

19

Aiming to Develop BCMS for
Proactively Thinking andTaking the Initiatives
As two years have passed since March 2014 when Lintec established group-wide BCMS*1 andbecame certified under ISO 22301*2, Lintec BCMS is evolving further.
We are conducting the following activities to develop “BCMS for proactively thinking and taking
the initiatives,” on which all employees work together.
All Employees As Key Persons in BCMS
To protect people’s
e’s lives and carry out emergency measures andrelief activities for business continuity, quick and accurate action byeach and every employee is required. The Lintec Group considers
all employees as key persons in BCMS, and aims to develop BCMS
for proactively thinking and taking the initiatives. Specifically, wehold BCMS studyy sessions group-wide and BCMS drills at our sites
is to spread BCMS among employees. We also
on a regular basis
ees with opportunities to participate in theprovide employees
development of BCMS on their own initiative, including conducting
mutual site audits and holding open BCMS Council meetings,
which have resulted in new measures based on suggestions from
employees, such as creating a disaster prevention manual forfamilies and preparing emergency stocks from a women’s
perspective. While developing BCMS for proactively thinking andtaking the initiatives, we will promote the development of BCP andrules, such as double verification, applicable group-wide including
sites outside Japan.

BCMS
B
CMS Drill
Drill
Employees at eachh site
site planp and conduct drills according to thebusiness and characteristics of the site.
site. Details
Details of drills at all
Detail
all sites
sites areshared group-wide via the intranet.

Drills conductedin fiscal 2014
and 2015

31 426sites

drillsInternal Audits
BCMS operation at each site is checked by internal
audits. About half of these internal audits are
conducted as mutual site audits, which provide
employees with opportunities to get to know
initiatives at other sites and help improve each other.

Group-Wide BCMS
Study Sessions
We hold study sessions several times a year at Head
Office for all employees to gain a basic knowledge ofBCMS. The study sessions are broadcast to all sites
using the TV conference system.

External Training

BCMS Council

We hold an annual workshop given by an
external BCMS expert, in which employees
from each site can take part. Participants
use the knowledge they learned in theworkshop when holding drills at their sites.

Suggestions and improvement proposals from
employees are discussed at the BCMS Council andreflected in group-wide initiatives. Council meetings
are held openly, broadcast at each site using the TV
conference system so that employees can watch them.

Employees’ Awareness and Comments on BCMS

Employees who answered that BCMS leaders
are all the people working in the Lintec Group96%*1 BCMS: See page 18.
*2 ISO 22301: See page 19.

20● I believe that individual employee
awareness is important. I will start bybecoming aware.

● I think BCMS is indispensable to fulfil
our corporate social responsibility,
including customer service.

● It has an impact not only on employees
but also on their families, so I want tocontinue with it.

● I want to carry out practical activities,
not ending up with a desk theory.

Note: Excerpt from an internal survey (March 2015, 1,863 respondents)

Social Report

Providing Value to Customers
The Lintec Group strives to further improve its
services by providing a stable supply of products
and ensuring thorough quality management inorder to meet the expectations of customers.

Quality Assurance

Acquisition of ISO 9001 certification
Number of sites certified

FY2013

FY2014FY2015*

21

20

20

Quality Education★
As part of its efforts to ensure high-quality manufacturing forcustomer satisfaction, the Lintec Group acquired certification for
ISO 9001 (quality management systems), ISO 14001(environmental management systems) and ISO 22301 (business

continuity management systems). We continue to provide internal
training programs, including study sessions and e-learning
programs for all employees.
Total participants in quality
education program

1,951
employees
Preventing Quality Incidents
Quality incidents that may lead to a loss of customer trust require
speedy handling. We have built and operate a complaint
management system for the quick collection of information,
analysis of the cause, and prevention of a recurrence. In addition to
the domestic system operation, we launched the system outside
Japan in April 2015. With this system for cooperation built in andoutside Japan, we will strive to eliminate quality incidents.
Ratio of quality accidents to the number recorded in fiscal 2003
(%)
120
100
80
60
40
20
0

(Fiscal 2003 = 100%)
100

2003

25

20

18

14

12

2011

2012

2013

2014

2015

Environmental Report

Improving Customer Satisfaction

http://www.lintec-global.com/csr/social/customer/

Social Report

Quality Assurance System
The Lintec Group has established a quality assurance system
based on the international standard ISO 9001*3. In response to
the ISO revision in September 2015, we are preparing for thetransition to the 2015 version. While continuing to acquire evengreater integrated certification, as well as certification for newsites, we are enhancing cooperation between related sites. With
these activities as a foundation, we are making efforts toimprove quality.

CSR > Social Report > Providing Value to Customers

Corporate Governance

Manufacturing in the Lintec Group is based on the company motto“Sincerity and Creativity.” Individual employees work on
manufacturing with an awareness of quality, the environment andsafety. We are taking on new challenges, never satisfied with thestatus quo, to deliver safer, more reliable products. The Lintec Group
continues to address challenges in manufacturing for the future.

Consumer issues(FY)

CSR Lecture in Taiwan

Voice

02

As a result of a request from a customer, we provided a presentation on “a comfortableworking environment” in January 2016. A comfortable working environment requires
sharing of the value of the Lintec Group with all employees, which corresponds to a CSR
activity. We explained the Lintec Group’s CSR, working environment designed to reducestress, activities to promote communication between employees, environmental
conservation, and activities to promote health to all our employees and customer
suppliers. We will actively work on our CSR activities to ensure a stronger trusting
relationship with our customers and sustainable growth.

Lu Hsiao-Wei, Public Relations Department, Lintec Advanced Technologies (Taiwan), Inc.
*3 ISO 9001: The international standard for quality management systems
Regarding the asterisk *, see page 01.

21Social Report

Cooperating with Suppliers
The Lintec Group strives to engage in fair, highly
transparent transactions, cooperating with suppliers
for mutual growth based on relationships of trust.

Fair Transactions
The Lintec Group has a basic policy for fair and transparent
transactions based on the principle of free competition between
all suppliers. When selecting suppliers, we evaluate themappropriately to ensure legal and ethical compliance in our
procurement activities. Considering all suppliers as “partners whoshould grow together with Lintec,” we work to establish trustfulrelationships with them.
CSR Procurement
Lintec’s procurement activities follow the Lintec Procurement
Policy, the Lintec Green Procurement Policy, and the Lintec Lumber
Pulp Procurement Policy, all of which are based on CSR. We request
suppliers to understand the importance of these policies, andremind them on various occasions to maintain thorough CSR
activities. In fiscal 2015, we asked the top 78* among about
500 material suppliers to complete a questionnaire and all of themdid so. The survey includes CSR-related questions to check onhuman rights, prohibition of child labor, healthy working
environment, and so on. We will continue to cooperate with our
suppliers in this way.

Suppliers

2,692

WEB

Fair operating practices
Human rights

CSR > Social Report > Cooperating with Suppliers

http://www.lintec-global.com/csr/social/partner/

Green Procurement
For procurement with lower environmental impact, the Lintec
Group is ensuring thorough chemical substance management for
raw materials, parts, and secondary materials. In fiscal 2015, we
conducted a survey of about 16,000 raw materials to determine
whether suppliers’ materials contain substances regulated under
the Registration, Evaluation, Authorisation and Restriction ofChemicals (REACH) regulation*1. We also ask suppliers to endorse
our environmental protection activities and ensure control ofchemical substances.
Conflict Minerals
Lintec recognizes that conflict minerals*2, mined to fund armed
conflict, are a serious social problem. The company investigatesand ensures that no conflict minerals are present in any of its raw
materials. Lintec will continue to conduct procurement
management that avoids the use of conflict minerals.
BCP with Suppliers
The ability of suppliers to continue their businesses in the event of
a disaster is critical for Lintec to secure the stable supply of its
products to customers. Lintec conducts evaluation of the suppliers
to determine their business continuance ability. Since fiscal 2014,
Lintec has evaluated suppliers for all products to confirm thefollowing statuses: (1) the stock volumes of the raw materials for
Lintec, (2) procurement routes for the raw materials, (3) disaster
control measures taken in their production sites and facilities, and(4) availability of a substitute production site.
Lintec also conducted examinations of some suppliers to
confirm whether they had BCPs and a management system to
implement the BCPs, and whether they had organizations andprocedures to cope with an incident*3. All our suppliers will be
subject to these examinations in the future.

Working with Suppliers to Enhance QCD
Improvement Activities

Voice

03

Lintec uses a self-audit check sheet for constant communication with its key material
suppliers. We ask them to fill out four check sheets on quality, control of chemical
substances, management/service, and CSR to maintain and enhance our partnership sothat we can periodically review the purchasing process and respond to changing customer
needs. We will further strengthen activities to improve QCD*4 based on our partnerships
with suppliers.

Masahito Nakabayashi, Assistant Section Manager, Coordination Section,
Procurement Department, Cost Innovation Office, Head Office

22*1 REACH Regulation: A chemical substance regulation in the EU on the “Registration,
Evaluation, Authorization and Restriction of Chemicals.” Registration is required whenexporting a chemical substance into EU states in quantities of one metric ton or more per
year. Notification must also be submitted to the authorities when a chemical substancefalling under the category of “candidate for required authorization” is present in a

product at more than 0.1 percent of the mass of the object.
*2 Conflict Minerals: Conflict minerals defined in the Dodd-Frank Wall Street Reform andConsumer Protection Act include tantalum, tin, tungsten and gold.
*3 Incident: A situation which cause or may cause business interruption, disturbance, loss,
emergency or hazard

Social Report

Together with Employees
Rewarding Workplace (Human Rights / Employment / Human Resource Development)
The Lintec Group has been creating a comfortableworking environment to support all employees who
perform their jobs with energy and motivation.

WEB

Respecting Human Rights and Diversity

Human rights

CSR > Social Report > Together with Employees (Human Rights/Employment)
http://www.lintec-global.com/csr/social/employee/
CSR > Social Report > Together with Employees (Human Resource Development)
http://www.lintec-global.com/csr/social/employee/training/

Respect for Human Rights in Labor Management and Education
The Lintec Group believes that compliance forms a foundation for
its activities and thoroughly adheres to both social rules andrelevant laws and regulations in and outside Japan. This also
applies to the recruitment and treatment of employees. Labor
management is performed in accordance with relevant laws. Unfair
discrimination, child labor, and harassment are prohibited.
Education on human rights is also provided. Lintec provided 46
new employees who joined the company in fiscal 2016 with the“UN Global Compact and CSR” training.

Employment■ Employees at group companies outside Japan

Japanese
employees
97
6％

94％

Total employees

1,721

Rate of local employee*

94%■ Number of employees by gender
Lintec Corporation

Male

Lintec Group

FemaleMale

2,207*

328*

4,069*

87％

13％

81％

Total employees
Managers

Female956*
19％

Total employees
Managers

Managers

447

6

695

80

20％

2％

17％

8％

2,535

5,025

Managers

Education session for new employees

Employment of Persons with Disabilities
Lintec provides employment opportunities to persons withdisabilities. The full-year employment rate at Lintec for persons
with disabilities in fiscal 2015 was 1.94 percent, which was an
improvement over the previous year but below the legally
mandated rate of 2.0 percent.
At the Operation Support Office, which was established underthe Human Resources Department on April 1, 2015, three staff
members are supporting the operations of each department.

Environmental Report† Scope:All overseas group companies (as of December
31, 2015)† Japanese employees hired locally are included in
the number of local employees† Japanese employees indicates employeestransferred from Japan

Social Report

Local
employees
1,624

Corporate Governance

The employees of the Lintec Group are working together based on
the company motto, “Sincerity and Creativity.” To ensure that all
employees may find their work equally rewarding, the grouprespects the diversity*5 of every employee and prohibits any kind of
discrimination, including that based on race, creed, gender,
education, nationality or age. Lintec joined the UN Global
Compact, which seeks to eliminate the use of child and forcedlabor, in 2011. The group aims to continue its growth based on
mutual understanding and respect between all employees.

Labour practices(Overseas: as of December 31, 2015, Japanese: as of March 31, 2016)

Joined the Active Women’s Work Committee to Empower
Women in the Workplace

Voice

04

The diversity management training allowed me to learn broadly about diversity. I realizedthat women should develop themselves, and that men should become better
communicators. After joining the Active Women’s Work Committee to Empower Women in
the Workplace, the training helped me advise others on how to use the support systembooklet and the interview sheet for return to work after childbirth/childcare leave.

Kayoko Morishita, Assistant Section Manager, Coordination Department,
Printing & Variable Information Products Operations, Iidabashi Office*4 QCD stands for Quality, Cost, and Delivery. Placing the highest priority on customer
satisfaction, Lintec continues to work hard to improve QCD through cooperation with
its suppliers.
*5 Respecting diversity: By respecting diverse characteristics that exist among people andgroups, it is possible to generate more original ideas, solve problems using diverse

perspectives, and allow people to display their full potential by appointing the best
person for each job.

23
Regarding the asterisk *, see page 01.

Work-life Balance
Lintec is working to help employees to balance their professional
and personal lives by creating workplace environments where
employees are able to perform their jobs with peace of mind andexercise their full abilities. Lintec offers an accumulated time-off
program that can be used either for long-term treatment of an
employee’s own illness or injury or for caring for a family member.
There is also a paid social contribution time-off program thatallows employees to participate in local volunteer activities. In April
2016, Lintec extended the period of the family care leave from93 days to one year. Lintec also extended the application ofshorter hours: from a child before school age to a child in the third
grade for childcare; and from two years (730 days) to three years(1,095 days) for family care.
Starting in April 1, 2016, these activities have also been
progressing in line with an action plan it drew up based on the
Female Empowerment Promotion Act. The company continues tocreate systems that help employees work with peace of mind.

Company-wide Rank-based Training Programs
With the aim of developing human resources that contribute to thecompany and society, Lintec has introduced company-widerank-based training programs to develop its human resources.
These programs enable all employees with diverse values toachieve personal growth and a sense of accomplishment. They help
boost employees’ skills and support each person’s self-motivatedcareer planning.
Total participants in company-widerank-based training programs*

507

employees

Action Plan based on the Female Empowerment Promotion Act
Period: Three years from April 1, 2016 to March 31, 2019

Initiatives

Target 1 We will raise the average percentage of females in the total number of new hires(graduated from university/graduate school) to over 30%.
April 2016t $POUJOVFUPSBJTFFNQMPZFFBXBSFOFTTUPQSPNPUFFNQMPZNFOUPGGFNBMFTUVEFOUT
t *NQSPWFKPCXPSLQMBDFFOWJSPONFOUTBOESFWJFXDSFBUJWFMZJNQSPWFUIFXBZPGXPSLJOH
t "QQPJOUGFNBMFSFDSVJUFSTUPDPOEVDUFNQMPZNFOUTDSFFOJOHGPSFBDIKPCDMBTTJmDBUJPOTarget 2 Raise the percentage of female supervisors (section chiefs) to over 10%

Initiatives

September 2016t $POUJOVFUPQSPWJEFEJWFSTJUZNBOBHFNFOUUSBJOJOHGPSNBOBHFSTUPSBJTFBXBSFOFTTGPS
creating workplaces where diverse human assets can exercise their abilities to the full.

November 2016t $POUJOVFUPQSPWJEFGFNBMFFNQPXFSNFOUDBSFFSCVJMEJOHUSBJOJOHGPSGFNBMFFNQMPZFFTUP
raise women’s awareness of female empowerment initiatives, their career development, andfuture working styles.

February 2017t $POTJEFSSFWJFXPGUSBJOJOHQSPHSBNTGPSDBSFFSEFWFMPQNFOU

Employee Communication
Lintec (Thailand) Co., Ltd. held its Sports Day in December 2015. All
employees were grouped into four teams to compete for ten
events, including football, sepak takraw, badminton, hula-hooping
and a relay race. Each game was a tight match, exciting employees.
The Sports Day played a significant role in deepening
cross-organizational communication. Comments from participants
include: “I realized the pleasure of working hard together for thesame goal,” and “It helped me strengthen relationships of trustwith my colleagues, facilitating communication at my workplace.”

Program users
Programs

FY2013

FY2014FY2015*

Family care leave program(persons)
Family care time off(persons)
Accumulated time off(persons)
Childbirth leave(persons)
Childcare leave(persons)
Child nursing care time off program (persons)(persons)
Shorter hours/flex time

1
1
0
3
1
1
61
65
61
16
14
13
26
25
20
11
10
9
21
28
27
26
26
22
Paid social contribution time off (persons)(total of 50 days) (total of 47 days) (total of 49 days)
Percentage of paid leave taken

(%)

50.09

51.12

61.11

Sports Day motivated employees

Flower Arrangement Club Has a History of Over 50 Years

Voice

05

The Flower Arrangement Club (Sogetsu school) in Head Office has a history of more than
50 years. Members practice the basics according to Sogetsu school textbooks. Once they
become more advanced, they are permitted to arrange flowers freely. We practice twice amonth, and display flower arrangements we created at the reception desk and in thesmoking areas. We hope our flower arrangements help visitors and employees to becomeaware of the seasons and feel relaxed.

Masako Goto, Chief, Secretary’s Office, General Affairs and Legal Department, Head Office24Social Report

Together with Employees

Labour practices

Safe Workplace Environments (Safety and Disaster Prevention)
The employees of the Lintec Group are engaged in avariety of activities so that everyone can work withpeace of mind in a safe environment.

Occupational Safety●Meetings of the Safety and Health Committee ●Patrols ●Safety education●Safety training and drills ●Inspection and measurement●Measurement of work environment conditions ●Medical checkups●Internal audit ●Management review

Safety and Health Committees & Health Committees
The Lintec Group holds monthly committee meetings to discusssafety and health in the workplace. In fiscal 2015, the group
continued to distribute Japanese and English versions of its
disaster flash reports and minutes of committee meetings to
implement safety management group-wide.
Committees for safety and health in workplaces
Committee

Scope

Activities

Safety and
HealthCommittee

Plants and ResearchCenter◯ Implement plans◯ Share information on disaster conditions,
implementation of safety education, resultsof equipment inspections, findings by patrols
and improvement status

HealthCommittee

Head Office and branches
that have a sales division◯ Discussions on health issues, safe operations
and disaster control activities

Accidents Resulting in Absence from WorkIn fiscal 2015, five occupational accidents (resulting in lost workdays) occurred at Lintec Group companies in Japan, leading to
134 days of absence from work. The number of accidents had
been on the decline since fiscal 2013, but increased in fiscal
2015. Three accidents were similar to those that occurred in thepast, and the remaining two seemed to be caused bycarelessness during familiar tasks. In fiscal 2016, we will raise
everyone’s level of awareness through education for managers
and supervisors. (Overseas Group companies are excluded.)Occurrence of accidents resulting in absence from work
FY2013

FY2014FY2015*

Number of accidents resulting
in absence from work

4

2

5

Number of days ofabsence from work

245

81

134

Lintec andpartner companies

LintecPartnercompanies

Accident sites

Environmental Report

Actions included in the annual safety and health plan

http://www.lintec-global.com/csr/social/employee/safety/

Social Report

Annual Safety and Health Plan
The Lintec Group develops an annual plan for safety and healthactivities. The Group manages health and safety through theimplementation of PDCA cycles.
In fiscal 2015, mutual safety audits, fire prevention patrols, andtop management patrols were conducted. Individual plans also
carried out patrols by members of the plant’s top management,
managers, and the union, as well as employee volunteer patrols.
The company shares safety information with all sites, groupcompanies in and outside Japan, and executive officers by
distributing disaster flash reports, disaster analysis reports, and theminutes of the Safety and Health Committee meetings.

CSR > Social Report > Together with Employees(Safety and Disaster Prevention)

Corporate GovernanceOccupational Safety and Health Policy
In 2010, the Lintec Group established the Lintec Occupational
Safety and Health Policy. Since then it has been carrying out
business activities based on an occupational safety and healthmanagement system (OSHMS)*1. Plans for mutual safety audit andfire preventive patrol are developed at the corporate-wide level,
while annual safety and health plans are developed at individual
plants, to implement plan-do-check-act (PDCA) cycles for safety
activities. The Safety Consideration Committee, consisting ofmembers engaged in safety activities in plants and members of thegroup-wide Safety Secretariat, examines group-wide safety
activities. The Lintec Group will continue to promote activities for
accident-free operation.

WEB

Accident-Free for Two Consecutive Years After Citing theFour Lintec Safety Principles

Voice

06

At Lintec Thailand, all employees cite the Four Lintec Safety Principles*2 every morning toensure the 5Ss*3. As a safety manger, I conduct daily safety patrol. Every year, we
appoint an employee who has taken a safety seminar provided by a public institution asa health and safety committee member in order to improve awareness of safety across
our plant. Because of these efforts, we received the safety award from a local laborbureau for two consecutive years. As the next step, we would like to achieve one million
accident-free hours.

Zeeroh Madsa-i, Assistant Chief, Safety Office, Lintec (Thailand) Co., Ltd.
*1 OSHMS: Stands for Occupational Safety and Health Management System. It is avoluntary management system operated by a business operator with an aim to improve
the safety and health level of its business sites.
*2 Four Lintec Safety Principles: (1) Finger pointing and callouts; (2) Never touch a moving
rotating machine; (3) Cue colleagues during a collaborative task; and (4) Stop themachine in the event of trouble.
*3 5S: A slogan for workplace improving practices; “S” is the first letter of Japanese words“Seiri, Seiton, Seiso, Seiketsu, Shitsuke” (meaning organizing, clearing up, cleaning,cleanliness and discipline).
Regarding the asterisk *, see page 01.

25

Mishima Plant Achieved Two Million Accident-Free Hours
The Mishima Plant has had no accidents for about two and halfyears, achieving accident-free man hours of two million hours on
February 13, 2016.
Since March 2014, the plant has been implementing MIP*1,
which is an environmental improvement activity based on the 5Ss*2,
in its effort to beautify workplaces and improve workability andefficiency. The plant
is committed toenhance andpromote the MIP
activity for cleaner,safer workplaces.

Members of the Safety and Health Committee at the Mishima Plant

Accident-free hours achievements in fiscal 2015 (April 1, 2015 to March 31, 2016)
Date achieved

Achievement (hours)

April 21

Shingu Plant

1.75 million

May 22

Ina Technology Center

0.5 million

July 9Mishima Plant

1.5 million

November 25

Agatsuma Plant

1 million

December 11

Shingu Plant (Including Niihama)

2 million

February 13

Mishima Plant

2 million

March 31

Chiba Plant

No accident in the year

March 31

Komatsushima Plant

No accident in the year

March 31

Shingu Plant (Including Niihama)No accident in the year

March 31

Agatsuma Plant

No accident in the year

March 31

Mishima Plant

No accident in the year

2015

2016

Business site

Top Management Patrols at Production Bases
To ensure safe operation, President Nishio carried out top
management patrols to visit and inspect plants worldwide. President
Nishio also talked with employees while touring around production
floors to check the progress in safety-first operations andimplementation of the 5S’s. Each production site is taking various
improving measures based on issues pointed out during these top
management patrols, and creating comfortable workplaces.

Regular Safety Council Meeting (Kumagaya Plant)
To prevent accidents by partner constructors on its property, theKumagaya Plant holds Regular Safety Council Meeting three times
a year. In April, July and December, 176 participants from in andoutside the company exchange a wide range of opinions on safety
topics, including (1) following safe operating rules, (2) sharing
information on other companies’ disasters, and (3) information on
unsafe production sites, to help with activities for spreading andreviewing rules and management forms and improving workplaces.
The plant asks participating partner companies to submit a pledgeof safety to ensure safe operation on plant property.

Disaster Control in BCMS
In planning prevention and mitigation of disasters in its
corporate-wide BCMS activities based on ISO 22301, aninternational standard*3, Lintec conducts risk assessment ofdisasters, placing top priority on saving human lives. All Lintec sites
examine their operations and facilities to identify, analyze andassess risks of damage that may be caused by different types ofdisasters. It is stipulated in the corporate-wide BCMS activity rulesthat if it is found that disaster control in a site is not sufficient, thesite should plan and take sufficient measures. Moreover, theconcreteness and validity of these disaster control measures arechecked and improved by carrying out disaster drills.
Emergency Drills
Each Lintec site carries out emergency drills as part of thecorporate-wide BCMS activities, while taking measures to reduce
disaster-related risks, including stocking emergency supplies andusing satellite telephones to ensure multiple means ofcommunication. On December 1, 2015, a corporate-wide safety
check drill was conducted, assuming an “earthquake of intensity 6
lower.” About 3,700 persons* rom 26 Lintec sites* and partnercompanies in Japan participated in the drill. Lintec will continue
this type of drill.

Prompt BCMS-Based Response

Voice

07

Lintec Speciality Films (Taiwan), Inc. started its BCMS activities in February 2015. Our
company received registration after a one-year preparation period and a screening for
BCMS expansion on February 2, 2016. Following the earthquake in Southern Taiwan that
occurred in February 6, 2016, we promptly conducted safety checks and report thedamage using LSP (Lintec Standard Package)*4. The event provided an opportunity to see
the results of our activities. We will continue to work on group-wide BCMS.

Cheng Wen-chieh, Assistant Section Chief, Occupational Safety Office,General Affairs Section, Lintec Speciality Films (Taiwan), Inc.

*1 MIP stands for Mishima Innovation Project.
*2 5S: See page 25.

26*3 ISO 22301: See page 19.
*4 LSP: An inter-company network available to all group companies in and outside Japan

Social Report

Together with Local Communities(Community Participation)
Recognizing that it is part of society and local
communities, the Lintec Group is engaged in various
initiatives to contribute to society while ensuringharmonious co-existence with society.

Fukushima Foods & Product Fair

Support for Persons with Disabilities
In April 2015, Lintec invited persons with disabilities and theirhelpers living in Tokyo’s Itabashi City (118 people in total) to aprofessional baseball game at Tokyo Dome—Hokkaido Nippon
Ham Fighters vs. Saitama Seibu Lions. This marked the ninth such
event arranged by Lintec. The company received smiles and many
words of thanks from participants who expressed their gratitude
and enjoyment of the game and a strong desire to participate
again. Lintec will continue this kind of social contribution activity
that brings joy to local residents.
Beautification Projects and Cleanups
The Lintec Group carries out neighborhood beautification projects
and cleanups around all its factories. The Chiba Plant holds a Zero
Litter Campaign around the Midori Daira Industrial Park where theplant is located, while the Kumagaya Plant conducts an Arakawa
Riverside Cleanup along a nearby river. The Komatsushima Plant
removes litter from the Yokosu shoreline as part of its Seto Inland
Sea Restoration effort. As part of social contribution initiatives, theLintec Group actively conducts
cleanups with local residents tokeep the environment in local
communities beautiful.

Kumagaya Plant employees participating in
Arakawa Riverside clean up

Total number of participants in community
beatification/clean-up activities

Environmental Report

Fureai Concert
Lintec held its fifth Lintec Fureai Concert in October 2015, inviting
persons with disabilities and their helpers living in Tokyo’s Itabashi
City, as well as people from neighboring areas. A total of about 700
persons, including Lintec Group employees and their families,
participated in the concert. The concert programs included: handbell performance by children of members of Itabashi“Hohoemi-no-Kai,” an association of parents of children with
Down syndrome; chorus by “Kuma,” a choir from the Itabashi City
Takashima Daisan Junior High School that joined the event for the
first time; and a jazz band session. We will continue to value
opportunities to communicate with local residents.

http://www.lintec-global.com/csr/social/community/

Social Report

Students from Ofunato City Junior HighSchool taking a tour of the Iidabashi OfficeShow Room

CSR > Social Report > Together with Local Communities

Corporate GovernanceOngoing Disaster Support
The Lintec Group has been making relief donations as an ongoing
activity to support recovery after the Great East Japan Earthquake.
In fiscal 2015, as it did in the previous fiscal year, the company
raised funds for Ofunato City in Iwate Prefecture, which has signed
a cooperation agreement with Itabashi City, where Lintec’s Head
Office is located. Lintec and the Lintec Forest*5 respectively
matched the donations made by Lintec employees, and the total
was donated as a matching gift. The donation was used for thepurchase of musical instruments for a local junior high school brassband club. Lintec’s Head Office also hosted a Fukushima Foods &Product Fair to support the recovery of Fukushima by economic
activities. The company will continue various forms ofreconstruction support activities in the future.

WEB

Community involvementand development

2,838
employees

Support for the Areas Affected by the Kumamoto
Earthquake in 2016
We express our heartfelt sympathy to all those who were affectedby the Kumamoto Earthquake. To be of help to the affected people
and help the recovery of the affected areas, the Lintec Group maderelief donations through the Japanese Red Cross Society.
Employees of group companies in and outside Japan have also
donated the funds they raised separately.
Volunteer staff for the Lintec Fureai Concert*5 Lintec Forest: Lintec’s labor union

We hope for the earliest possible recovery of the affected areas.

Regarding the asterisk *, see page 01.

27

Environmental Report

Business andEnvironmental Activities
The Lintec Group is working to reduce environmental
impact across its business activities from procurementof raw materials to sales to support conservation of
the global environment.

WEB

The environment

CSR > Environmental Report >Relationship between Lintec and the Environment
http://www.lintec-global.com/csr/environment/relation/

INPUT
Business Activities of the Lintec Group

Pulp

97,100 tons
Paper

35,100 tons
Film

Raw material
procurement

31,800 tons

R&D

AdhesiveRawmaterials

21,200 tons
Release agents

1,800 tons
Organic solvents

8,900 tons
Other chemicals

36,000 tons
Mechanical parts

400 tons
EnergyPurchased power

Environmental Activity Topics
KP5000 from the KINATH Series Won a Global AwardAt the world’s largest labeling exposition, LABELEXPO EUROPE
2015, held in Belgium in September 2015, Lintec’s KP5000, a labelmaterial using recycled polyethylene terephthalate (PET), from theenvironmentally friendly product line KINATH received the Label
Industry Global Award. Lintec became the first Japanese company
to receive the award. KP5000 uses substrates containing 80% ormore mechanically recycled PET*1 resin, and thus contributes torecycling resources and reducing petroleum usage. Encouraged by
the Award, we will continue to develop products that contribute toa sustainable society.

161,000 MWh(Crude oil equivalent 40,000 kl)

Fuel (crude oil conversion)

52,000 kl
Water

Industrial-use water

6,563,000
tons

Yusuke Matsuoka
Adhesive Material

Self-generated
electricity

Self-generated electricity

36,000 MWh(crude oil conversion 9,000 kl)*1 Mechanically recycled PET: Mechanical recycling is a recycling method that uses plastic
bottles collected as sorted waste to produce high-quality and sanitary recycled PET resin.

28

Laboratory

OUTPUTSpecialty papers

72,000 tons
Adhesive products

81,900 tons

Products

Processing materials(release paper, etc.)

53,000 tons
Adhesive-related
equipment

800 tons
Waste generated

28,260 tons
Waste emitted

11,740 tons
tEffective external utilization

Manufacturing

Sales

10,860 tons
tIncineration

Waste

850 tons
tFinal landfill disposal

30 tons
Effective internal utilization•

Sale of valuable materials

9,690 tons
6,830 tons

Social ReportCO2

200,000
tons

SOx

7.4 tons
Emissions into
the atmosphereNOx88.0 tons

Environmental Report

Third-Party Verification of Environmental Data
The Lintec Group promotes environmental conservation activities
following ISO 14001 with the global integrated certification
covering its sites in and outside Japan, and receives a third-party
assessment every year of whether its environmental management
system is operating properly for its environmental targets. In
addition to that, this fiscal year, the Lintec Group received athird-party assessment by an independent auditing organizationfor environmental management systems, SGS Japan Inc., on
greenhouse gas
emissions and electric
power consumption.
The audit found noimportant issues thatneed corrective action.

•

Corporate Governance•Soot and dust

4.8 tons
Substances subject to the PRTR

0.45 tons
Effluent

Release into
water bodies

6,291,000
tons

Breakdown of CO2 emissions

Scope 1
•Direct
emissions

Scope 2
•Indirect
emissions from energy*2・Bunker-A oil
・Utility gas
・LPG

*3

・Electricity

87,000 1 13,000

Verification Report*2 Scope 1: All direct CO2 emissions from the consumption of purchased gas and liquid
fuels, such as liquid natural gas (LNG), liquid petroleum gas (LPG), utility gas, oxygen,kerosene, light oil, and gasoline.

tons

tons

*3 Scope 2: All indirect CO2 emissions from the production of purchased and consumed
energy, such as electricity and steam.

29

Environmental Report

Environmental Management
Under the slogan, “We have to broaden our scope whenworking to support the environment. There is only one
Earth,” Lintec has established, operates and is constantly
improving its environment management system, and iscarrying out a variety of environmental protection initiatives.

WEB

Lintec Group Quality, Environmental
and Business Continuity Policy
The Lintec Group has established a Quality, Environmental andBusiness Continuity Policy. The policy was drawn up by adding abusiness continuity policy prepared for natural disasters andpandemics*1 to the former quality and environmental policy, withthe aim of fulfilling social responsibility from various perspectives.
In the area of the environment, the Lintec Group sets medium-termtargets for CO2 emissions and electricity consumption.

CSR > Environmental Report > Environmental Management

http://www.lintec-global.com/csr/environment/management/Internal Environmental Auditing
Lintec conducts internal audits and mutual audits of its businesssites, in order to confirm proper implementation of theEnvironmental Management System and legal compliance in thesesites. Mutual site audits are conducted by employees who are
certified lead auditors as a unique qualification of Lintec. Lintec
trained nine new lead auditors in fiscal 2015, bringing the total to
184 (as of March 31, 2016).
Lead auditors in charge ofsite mutual audits

Lintec Medium-Term Environmental Targets (fiscal 2014 to 2016)
CO2 emissions

1.6% reduction from the previous year
(per-unit of production)

Electric power consumption

0.2% reduction from the previous year
(per-unit of production)

Waste discharge

0.1% reduction from the previous year

Production water usage

2% reduction from the previous year
(per-unit of production)

Integrated Certification forEnvironmental Management
The Lintec Group has acquired global integrated certification*2 for
ISO 14001 for 25 registered sites, including Head Office, 11 groupcompanies outside Japan, 11 plants plus the Research Center inJapan, and Tokyo Lintec Kako, Inc. We are also preparing for thetransition to the 2015 version of the ISO, revised from the 2014
version. The Lintec Group will continue its group-wide
environmental protection activities.

The environment

184

auditors

Biodiversity Conservation Initiatives
The Lintec Group has incorporated biodiversity conservation into its
Quality, Environmental and Business Continuity Policy, andaccordingly conducted biodiversity preservation activities, led bysites in and outside Japan that have acquired the ISO 14001 global
integrated certification. The Lintec Group is committed to proactive
biodiversity conservation, including participating in activities heldby non-profit organizations and providing internal study sessions
with invited lecturers.

Improving the Level of Internal Audits

Voice

08

For more than ten years, we have operated our environmental management system with
global integrated ISO 14001 certification. As we shift to the 2015 version of ISO 14001,
our efforts for environmental performance are becoming increasingly important. Under
these circumstances, we must improve the level of internal audit to manage the proper
operation of our environmental management system. In addition to sharing information
between sites and horizontally launching initiatives, taking advantage of the group-wide
activities ensures that auditors can improve their skills by learning from each other.

Nachio Satoyoshi, Section Chief, Environmental Group, Plant Engineering Section, Agatsuma Plant

30*1 Pandemic: An occurrence of an infectious disease that affects many people on a global
scale*2 Global integrated certification: ISO 14001 certification covering multiple business sites
worldwide as a single organization

Environmental Report

Addressing Global Warming
The domestic Lintec Group is committed to carryingout various environmental activities to mitigate global
warming, climate change and other environmental
issues that impose risks on the continuity of its business.

Efforts in Manufacturing

Total Energy Use and CO2 Emissions
In fiscal 2015, total energy use (crude oil equivalent) for the Lintec
Group in Japan increased by 0.3% due to the increased production
volume. Energy use per unit of production improved by 3.0% to
0.3189 kl per ton. CO2 emissions in fiscal 2015 were 200,000 tons,
achieving the target of 203,000 tons or less for the year.
In fiscal 2016, Lintec aims to reduce its CO2 emissions by 1.6%
and its energy use by 0.2% over fiscal 2015, on a per-unit ofproduction basis.
Total energy use (crude oil equivalent)■Purchased electricity ■Fuel ● Basic unit (energy usage/production)(1,000 kl)(kl/tons)
140
0.70
0.35
0.37
0.35
0.33
0.32
120
0.60
96
100
0.50
93
92
92
92
80
0.40
58
60
0.30
54
56
55
52
40
0.20
20

37

40

2011
2012
2013
2014
Note: Fuel means kerosene, Bunker-A oil, liquid natural gas (LNG),
liquid petroleum gas (LPG), and utility gas.

38

38

37

2015

0

0.10
0
(FY)

CO2 emissions(1,000 tons CO2)
250
200

182

169

1990

2011

184

FY2015target: 203

203

202

200

2013

2014

2015 (FY)

150
100
50
0

2012

Notes: 1. The amount of CO2 emissions is calculated by applying a CO2 emission coefficient to theamounts of electricity and fuel used.
2. The CO2 emission coefficient for fiscal 1990 is the value specified in Article 3.1 of the
Enforcement Order for the Act on Promotion of Global Warming Countermeasures in Japanas revised in December 2002. The CO2 emission coefficients for fiscal 2010 and thereafter
are the values specified in the same Order, as revised in March 2010. For the purchased
electricity coefficients Lintec uses the emission coefficients provided by the powercompanies that supply electricity to the facilities concerned.
3. The emissions shown above are CO2 emissions from fossil fuels.

Environmental Report

Waste heat boiler at the Chiba Plant

http://www.lintec-global.com/csr/environment/warming/factory/Social Report

Energy Savings Promotion Committee
To comply with the Energy Conservation Act, the Lintec Group in
Japan collects monthly data on energy consumption of individualsites under the direction of the Lintec Energy Savings Promotion
Committee. In fiscal 2015, the Lintec Group in Japan implemented
corporate-wide
energy-saving measures
aimed at improving its
energy use per
production unit. The
Chiba Plant expanded theuse of VOC combustion
heat, while the Kumagaya
Plant reviewed its
cogeneration system*4.

CSR > Environmental Report > Addressing Global Warming

Corporate GovernanceStatus of Compliance with Japan’s Energy Conservation Act
Energy use by the entire Lintec Group in Japan*3 exceeds 1,500 kl
of crude oil equivalent each year. As a result, the Group was
designated a “Specified Business Operator,” pursuant to theprovisions of the Act on the Rational Use of Energy (“Energy
Conservation Act”) in Japan, and is required to improve its energy
use per production unit by 1% per year. In fiscal 2015, the Lintec
Group in Japan implemented a variety of energy-saving measures.
These included effective operation of production facilities,
management of the air conditioning system, recovery and use ofwaste heat, and use of VOC combustion heat.

WEB

The environment

Promoting the Reduction and Recycling of Waste

Voice

09

For environmental conservation, Madico, Inc. is making efforts to reduce and recycle
waste. One example of these efforts is that we reduced solvent waste from ourmanufacturing process by improving the production equipment in use. We will continue topromote waste reduction and recycling.

Sharon Bolling, EHS generalist, Madico, Inc. (USA)*3 Lintec Group in Japan: Lintec Corporation and its sales offices; Tokyo Lintec Kako, Inc.;
Osaka Lintec Kako, Inc.; Printec, Inc.; Lintec Services, Inc.; and Lintec Commerce, Inc.

*4 Cogeneration system: A cogeneration system generates electricity using a generator
fueled by gas or other driving source, and simultaneously uses waste heat for the hotwater supply and air conditioning.

31Efforts to Prevent the Leakage of Fluorocarbons
With the enforcement of the revised Fluorocarbons Act (“theFluorocarbons Emissions Control Act”) from April 1, 2015,
comprehensive measures covering from manufacturing to disposalof fluorocarbons must be taken. To preserve the ozone layer andaddress global warming, the Lintec Group is making efforts toprevent the leakage of fluorocarbons, which include creating a listof industrial air conditioners and refrigeration systems owned byits sites and conducting regular inspections.

Product Development Initiatives
Guidelines for Environmentally-Friendly Products
Lintec has been developing new environment-friendly products,
taking into account and assessing LCA*3, and developed 24 productsin fiscal 2015, exceeding the target of 12 products. Lintec has also
developed and uses guidelines for “self-declared environment-friendly
products” which are in accordance with ISO 14021*4. Lintec willcontinue to develop environment-friendly products.
Number of environment-friendly
products developed

Efforts in Distribution
Lintec is a “Designated Shipper” under the Revised Energy
Conservation Act in Japan because it consigns the transport ofmore than 30 million ton-kilometers annually*1. As a Designated
Shipper, Lintec submits an annual transport-related energy
conservation plan to the government, in accordance with this Act.
In fiscal 2015, the volume of transportation increased by about
1.2% from the previous year but energy use and energy use perunit of transportation decreased by about 0.2% and 1.3%,
respectively, due to efforts to improve transportation efficiency.
We will continue
to improvetransportation
efficiency by
expanding modal
shift*2 and othermeasures(see page 12).

Delivery to the warehouse

CO2 emissions and transportation volume■CO2 emissions ● Transportation volume(10 million ton-kilometers)(1,000 tons CO2)
20.0
15.0

12.0
8.1

8.1

9.5

9.7

9.8
9.0

10.0
5.0

24
Developing Products That Help Reduce Environmental Impact
The Lintec Group has positioned environmental and energy
businesses as an important focus. Some of the main products arewindow films with superior heat insulation, which reduce
consumption of energy, and film base label materials, which
promote recycling and reuse. Lintec is committed to developing
products that help reduce environmental impact and save energy,
and satisfy customers.
Light Diffuser Film for Brighter Reflective LCDs*5
Lintec has developed a light diffuser film that makes display
screens brighter by efficiently diffusing the light from reflective
liquid crystal displays (LCDs). In recognition of the development of
this film, the Institute of Image
Information and Television
Engineers presented theTechnology Promotion Award
to Lintec in May 2015.

6.0
10.9

10.9

11.7

11.1

11.1

3.0

2011

2012

2013

2014

2015

0.0
(FY)

0.0

Digital clock using the light diffuser film (left)

Measures to Prevent Fluorocarbon Leakage in Daily Operations

Voice

10

The Fluorocarbons Emissions Control Act requires businesses with CO2 equivalentemissions of 1,000 tons or more to submit a report on the amount of leakage from target
equipment they own. The Environmental Safety Department has aggregated the amount ofleakage at Lintec, and found that the leakage in fiscal 2015 did not require reporting.
When we aggregated the leakage data, plants and branches reported to us not only thehatamount of leakage, but also the status of simple inspections, so that we could confirm thatthey are controlling fluorocarbons by incorporating actions in response to the new
regulation into their daily operations.
roup,
Noriko Kijima, Section Chief, Environment and Safety Group,

Environment and Safety Department, Head Office32*1 Ton-kilometers: A unit of cargo transport amounts, computed by multiplying the cargo
tonnage by the transportation distance. Transporting 1 ton of cargo over a distance of
one kilometer equals one ton-kilometer.
*2 Modal shift: See page 12.
*3 LCA: See page 17.

*4 ISO 14021: An international standard for “Environmental labels and declarations—Self-declared environmental claims (Type II environmental labeling).” A business
operator sets its own standard and may place environmental claims on the labeling of a
product which satisfy that standard.

Environmental Report

Reducing Waste and Water Usage
In order to help realize a recycling-oriented society,
the Lintec Group is working to reduce waste. It is also
striving to save water, reuse waste water, while
complying with the effluent control regulations andimproving the quality of effluent generated.

WEB

The environment

CSR > Environmental Report > Reducing Waste

http://www.lintec-global.com/csr/environment/waste/

Water Usage and Water Conservation Measures

In fiscal 2015, the amount of waste generated, including
manufacturing loss, at Lintec was 28,260 tons. The total waste
output was 11,740 tons. Of this waste output, 10,860 tons wererecycled by outside recycling companies and the remaining
880 tons were properly disposed of by waste disposal companies.
The final landfill disposal rate*6 for fiscal 2015 was about 0.11%,
which was lower than the target (0.2% or less), Lintec has also
continued to achieve “zero emission”*7 (final landfill disposal rateof 1.0% or less) since fiscal 2007. Lintec’s statutory target in fiscal
2016 is a 0.1% reduction in the waste generated, on a
year-on-year basis.

In fiscal 2015, Lintec used 6,563,000 tons of water. Of this amount,about 92% was used by the Kumagaya and Mishima plants, whichare Lintec’s papermaking facilities. Water usage at these two plants
increased slightly over the previous year. Water usage per unit ofpaper production increased by 0.8% from the previous fiscal year.
The two plants are making continued efforts to reduce water usage
in each process and take measures to prevent water leaks. Fromfiscal 2015 to 2016, they aim to reduce their water usage per unitof production by 2% compared to each previous year.

20,00025

10,860 tons

Total waste processed externally:
880 tons

20
15■Waste paper ■Waste plastic ■Waste oil ■Sludge ■Other
29.3
4.2

29.2
3.7

30.1
3.5

5.2
1.7
5.1

5.4
1.6
5.3

5.9
1.4
4.9

5.3
1.4
4.6

5.3
1.4
4.5

13.1

13.2

14.4

13.9

13.3

2011

2012

2013

2014

2015

29.1
3.9

58.4

6,664

6,560

53.9

51.0

51.4

28.3
3.8

50.0
6,427

5,000

5,959

6,014

2014

2015

25.0

0
2000

2011

2012

2013

0.0
(FY)

Reducing Effluent
The total amount of effluent discharge by Lintec in fiscal 2015 was
6,291,000 tons. About 95 percent of this was released from theKumagaya and Mishima plants. These plants are working to reduce
their water usage and effluent discharge by taking measures suchas reusing used water in each papermaking process. They willcontinue to renovate the water treatment facilities.

Environmental Report

30

55.7

10,000Total waste recycled:
27,380 tons

Waste generated(1,000 tons)
35

75.0
11,883

Waste incinerated: 850 tons
Final landfill disposal: 30 tons

100.0

15,0009,690 tons

Valuable waste sold: 6,830 tons
Waste effectively
used externally:(tons/tons)
95.3

Social Report

Waste effectively
used internally:

Actual waste
disposed:
11,740 tons

■Water usage ● Water usage amount/paper production tonnage(1,000 tons)

Fiscal 2015 waste flow

Waste:
28,260 tons

Water usage (Kumagaya and Mishima Plants)

Corporate GovernanceAmounts of Waste Generated and Effectively Used

10
5
0

(FY)

Reducing Waste by Making Changes on the Production Floor

Voice

11

At the Lintec Group, each plant is improving its production floor. The Chiba Plant isrenovating its production floor in the Chiba Innovation Project (CIP) to reduce loss of raw
materials, such as chemicals and films, to reduce waste and improve productivity. We willcontinue to practice the 3Rs (reduce, reuse, and recycle) for the development of arecycling-oriented society.

Susumu Kaneko, Section Chief Assisting Plant Manager, Chiba Plant*5 Reflective LCD: A type of liquid crystal display that displays images by reflecting lightfrom external light sources. The electric power consumption of reflective LCDs is only
one tenth that of transmissive LCDs.
*6 The final landfill disposal rate is a value found using the following formula: Final landfill
disposal rate (%) = Final landfill disposal amount/Amount of waste generated × 100.

*7 Zero emission: Lintec’s standard is a final landfill disposal rate of one percent or less.

33

Environmental Report

Reduction of Environmentally
Hazardous Substances
The Lintec Group complies with relevant laws andregulations in and outside Japan and strives to reduce
its use of chemical substances that have an impact
on the environment.

Compliance with PRTR Act*1
In fiscal 2015, Lintec used ten substances that are subject to PRTR
reporting. The total quantity of PRTR chemicals was 7,528 tons.
Toluene accounted for the largest portion of this amount, at
7,436 tons, down 144 tons from the previous year (7,580 tons).
Emissions of toluene into the atmosphere were 441 tons,
down 21 tons from the previous year (462 tons), and thetransferred amount was 494 tons, down 42 tons from the year
before (536 tons).
Fiscal 2015 emission and transfer of toluene
Emissons into
the air:
441 tons
Lintec plant
Exhaust processing equipment

Quantity
eliminated:
6,501 tons
(93.6% elimination
rate)

Toluenehandled:7,436 tons

Manufacturing processes
for release paper andadhesive products

Toluene flow
Note: Elimination rate = eliminated amount/(handling amount - transferred amount) ×100

Quantitytransferred(treated as waste):

494 tons

Proper Storage and Management of PCB*2
Lintec securely stores and manages waste containing PCBs in
accordance with the law. In fiscal 2015, Lintec properly disposedof eight units containing high-concentration PCBs and five units
containing low-concentration PCBs. By December 2015, thecompany re-inspected the number of units and confirmed that it
owns 77 high-PCB concentration units (including 52 fluorescentlight ballasts) and 13 low-PCB concentration units. Lintec will

Voice

12

WEB

The environment

CSR > Environmental Report >Reduction of Environmentally Hazardous Substances

http://www.lintec-global.com/csr/environment/impact/

promptly dispose of the low-PCB concentration units, andsecurely manage and store high-PCB concentration units that are
awaiting disposal.

Reducing VOCs (volatile organic compounds)*3
Lintec is reducing VOCs. In product design, Lintec is working on
switching to a solvent-free release agent for its release paper andsolvent-free adhesive for printing-related adhesive products to
reduce the amount of organic solvents it uses. In fiscal 2015, thepercentage of solvent-free release paper (production basis) was
55.8%. The percentage of solvent-free printing-related adhesive
products (sales basis) was 73%. The percentage of solvent-free
paper and products remains at the same level, but Lintec willcontinue to expand sales by promoting the advantages ofenvironmentally friendly products and their benefits toenvironmental conservation. Meanwhile, the installation of
exhaust gas treatment equipment has been completed. Lintec
will continue to monitor numerical values, and ensure reliable
operation of exhaust gas treatment equipment to reduce its
environmental impact.

Complying with EU Regulations Concerning
Chemical Substance Management andEnvironmental Preservation
Lintec examines substances with environmental impact in the
raw materials it purchases, and conveys the necessary
information to customers. The company also issues
GHS*4-compliant SDS*5 for its products, complying withregulations in EU where environmental regulations are becomingtighter. In light of the addition of substances subject to the
REACH Regulation*6 and the RoHS Directive*7, Lintec is enhancing
the management of substances contained in its products.
(Currently, about 6,000 substances are regulated.)

Improving the Working Environment to Reduce
Environmental Impact
Lintec Industries (Sarawak) SDN. BHD. is working on the reuse of secondary materials. For
instance, we are collecting and cleaning acrylonitrile-butadiene-styrene (ABS) resin coresfor winding products to reuse them. We have also introduced a closed automatic washer
to improve the working environment while reducing the amount of solvents used anddisposed of.

James Rigas, Maintenance, Lintec Industries (Sarawak) SDN. BHD. (Malaysia)

34*1 The PRTR (Pollutant Release and Transfer Register) Act is formally named the Act on
Confirmation, etc. of Release Amounts of Specific Chemical Substances in theEnvironment and Promotion of Improvement to the Management Thereof. PRTR is asystem for ascertaining, aggregating, and publishing data on the amounts of chemical
substances released and transferred.

*2 PCB (polychlorinated biphenyl): The Act on Special Measures concerning Promotion of
Proper Treatment of PCB Wastes (PCB Special Measures Law) mandates the proper
storage, management, and disposal of wastes containing PCBs.
*3 VOC: VOC stands for volatile organic compounds and collectively refers to volatileorganic compounds that become gas in the atmosphere.

Environmental Report

Environmental Activities of 12 Group
Companies Outside Japan
While acquiring global integrated certification for
ISO 14001*8, the Lintec Group is putting its efforts into
environmental conservation activities at groupcompanies outside Japan to fulfil its responsibility
as a global company.

WEB

The environment

CSR > Environmental Report >Environmental Activities of 12 Group Companies Outside Japan

http://www.lintec-global.com/csr/environment/oversea/eco/

Environment Performance Data in Fiscal 2015 Below is the environmental performance data for the 12 Lintec Group companies outside Japan in fiscal 2015.
FY2015 data (Jan. 1, 2015 to Dec. 31, 2015)

FY2014 data (Jan. 1, 2014 to Dec. 31, 2014)

VOC emissions
Lintec Suzhou
Lintec Tianjin
Lintec Printing &Technology (Tianjin)(tons) 0

15
19
0
0
0
0
22
19
0
0
12
12

Lintec Suzhou
Lintec Tianjin
Lintec Printing &Technology (Tianjin)

LSFT
LATT
Korea
LSFK
Indonesia
Malaysia
Sarawak
Singapore
Madico

75
102
397
768

10
5
0.5
1
0
0
9
4

200

400

600

800

1,000

3,935
3,632

Lintec Suzhou
Lintec Tianjin

316
448
856
838

Lintec Printing &Technology (Tianjin)

3,620
3,384
1,651
1,643

LSFT
LATT
Korea
LSFK
Indonesia
Malaysia
Sarawak
Singapore
Madico

8,607
7,738
7,929
8,546

3,956
7,652
7,240.5
7,525
252
277
733
732

(MWh) 0

4,377
2,485

2,000

4,000

6,000

8,000

(kl) 010,000

852
716
3
3
60
60
117
240
0
0
1,396
1,296
449
692
690
1,588
774.3
849
0
0
0
0
982
592

500

1,000

1,500

2,000

Notes: 1. VOCs = toluene and methyl ethyl ketone
2. Figures stipulated in Article 4 of the enforcement regulations for Japan’s Energy Conservation Act were used for the calorific value of each fuel used in order to calculate the crude oil
equivalent of consumed fuel.
3. LSFT = Lintec Speciality Films (Taiwan); LATT: Lintec Advanced Technologies (Taiwan); LSFK = Lintec Speciality Films (Korea)

LINTEC (TIANJIN) INDUSTRY CO., LTD.

Location: Suzhou New District, Jiangsu Province, China No. of employees: 219
Main business activities: manufacture and sale of printing materials, industrial
materials, and products related to paper and processing material

Location: Nankai District, Tianjin, China No. of employees: 89
Main business activities: manufacture and sale of products relating to printing materials andindustrial materials

In June 2015, we conducted biodiversity education andawareness-raising activities. Employees took the initiativein the activities, creating
education materials
in-house. We will continue
to conduct initiatives
for biodiversity.

To raise employee awareness of CSR, we used the Lintec
Group CSR Report 2015 as a training text and conducted a
CSR test for all employees. We
are also working to raiseawareness of how to improvethe environment. For
example, we changed thelabeling at the waste and ironscrap storage area.

Zhang Xudong
Engineering Department

Jia JunGeneral Affairs &Personnel Division

Biodiversity study session in the
Quality Control Section

Changed the waste storage area
and the labeling

LINTEC PRINTING & TECHNOLOGY (TIANJIN) CORPORATION

LINTEC SPECIALITY FILMS (TAIWAN), INC.

Location: Xiqing Economy Development District, Tianjin, China No. of employees: 92
Main business activities: manufacture and sale of products relating to printing materials
and industrial materials

Location: Shanhua District, Tainan City, Taiwan No. of employees: 94
Main business activities: manufacture and sale of electronic- and optical-related products

To further reduce effluents and electricity consumption, we
introduced new printmaking equipment in April 2015,
which resulted in reducing
effluents by 100 liters andelectricity by 200 kWh permonth. Meanwhile, we arepromoting initiatives toprovide a comfortableworking environment forevery employee.

In June 2015, we held an Employee Family Day in an old
sugar factory site in Wushulin in Houbi, Tainan. Ninety-threeparticipants learned about
the history of the sugar
factory, as well as the animals
and plants living on theproperty. The event provided
them with a good opportunity
to find out about theimportance of biodiversity.

Zhang Kun
Quality Assurance Office

New printmaking equipment

Environmental Report

LINTEC (SUZHOU) TECH CORPORATION

Social Report

With the merger with Madico in January 2013, Lintec acquired Madico’s St. Petersburg Plant, and completed the inclusion of the plant in the
integrated ISO 14001 certification in January 2015. Starting in 2015, data for the plant has been included in the above graphs, so that emissions
and usage increased. At Lintec Indonesia, emissions and usage decreased with the decline in production volume.

Corporate Governance

LSFT
LATT
Korea
LSFK
Indonesia
Malaysia
Sarawak
Singapore
MadicoFuel (light oil and natural gas) usage(crude oil conversion)

Electricity usage

Tsai Ching-Shyang
General Affairs Section

Employee Family Day

The number of employees is given for December 31, 2015.

*4 GHS: Globally Harmonized System of Classification and Labelling of Chemicals. GHS
provides international standards for the classification of chemicals by types of hazard
and a mechanism of labeling.
*5 SDS: Safety data sheet. This is a document which provides information on the handlingof chemical substances when transferring or providing products that contain potentiallyhazardous chemical substances to another company.
*6 REACH Regulation: See page 22.
*7 RoHS Directive: EU’s Directive on the restriction of the use of certain hazardous
substances in electrical and electronic equipment*8 Global integrated certification: See page 30.

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LINTEC ADVANCED TECHNOLOGIES (TAIWAN), INC.

LINTEC KOREA, INC.

Location: K.E.P.Z. Kaoshiung, Taiwan No. of employees: 73
Main business activities: manufacture and sale of electronic- and optical-related products

Location: Cheongju-si, Chungcheongbuk-do, Korea No. of employees: 72
Main business activities: manufacture and sale of electronic- and optical-related products

To improve the management and maintenance of plant wastewater andreduce the electricity consumption, we installed an additional unit for
the wastewater treatment systemand switched the lighting to LEDs in
fiscal 2015. We also introduced auto
monitoring systems for electricity
and sewage for more efficientenvironmental conservation.
We will continue to enhanceenvironmental conservation and
LED lighting after replacement
our management systems.

We improved the systems for operating our manufacturing facilities
and boilers to reduce electricity and fuel consumption. Consequently,
we reduced our annual electricity
consumption by about
236,000 kWh and our gas
consumption by about
249,000 m3, which resulted in a
reduction of about 587 tons of
CO2 per year.

Jiang Dewei
Engineering Section
Administration
Department

Kim Jung In
Engineering Section

Operating and managing the best
mix of six boilers

Corporate GovernanceSocial Report

LINTEC SPECIALITY FILMS (KOREA), INC.

PT. LINTEC INDONESIA

Location: Pyeongtaek, Gyeonggi Province, Korea No. of employees: 127
Main business activities: manufacture and sale of electronic- and optical-related products

Location: Bogor, West Java, Indonesia No. of employees: 112
Main business activities: manufacture and sale of products relating to printing materials andindustrial materials

We changed the firebricks in the furnace of the VOC incineration
system, resulting in an appropriate furnace pressure and improved
combustion efficiency. The
average monthly LNG
consumption decreased by about
85% from 35,000 m3 in August
2015 to 5,100 m3 in Decemberthat year, or by 35% on a
year-on-year basis.

In May 2015, we cut the grass on plant property, providing
employees with an opportunity to re-acknowledge the significance ofpreserving the environment andcooperating with each other. We
will continue with our various
environmental conservation
activities.

Lee Young Ho
Plant Engineering
Department

Shanti
Quality Assurance
Department

Environmental Report

VOC heat incineration system

Cutting the grass

LINTEC INDUSTRIES (MALAYSIA) SDN. BHD.

LINTEC INDUSTRIES (SARAWAK) SDN. BHD.

Location: Bukit Mertajam, Pulau Pinang, Malaysia No. of employees: 92
Main business activities: manufacture and sale of electronic- and optical-related products

Location: Kuching, Sarawak, Malaysia No. of employees: 24
Main business activities: manufacture and sale of electronic- and optical-related products

In April 2015, we planted mangroves along a coastal area insouthern Penang on the Malay Peninsula to contribute tobiodiversity conservation.
Thirty volunteer employees
participated in the event. We
hope that the mangroves weplanted will grow andcontribute to conserving
biodiversity in the region.

To conserve the forests and contribute to biodiversity, we planted
trees in the Bako National Park in September 2015, with theparticipation of all employees.
As we listened to a park guide
explaining the history of the park
and the activities of the local
community, we recognized theimportance of the naturalenvironment.

Yeoh Gaik Leng
Production Management
SectionMichael Benjzi
General Affairs &Human Resources

Employees participated in thetree planting event

Employees participated in thetree planting event

LINTEC SINGAPORE PRIVATE LIMITEDMADICO, INC.

Location: Cyberhub, Singapore No. of employees: 90
Main business activities: manufacture and sale of products relating to printing materials andindustrial materials and electronic- and optical-related products

Location: Woburn, Massachusetts, U.S.A. No. of employees: 215
Main business activities: manufacture and sale of printing materials and industrial materials

As in the previous year, we made a donation to the Garden City Fundoperated by the National Park Board. In November 2015, we also
participated in a tree planting
event hosted by the fund andplanted 16 trees in a national park.

Madico’s Woburn Plant implemented energy reduction measures,such as switching to LED lighting and installing solar panels.
Consequently, electricity usage
per unit of production in 2015
improved by 13% from theprevious year.

Employees and their families
participated in the tree planting event

Sng Seng Leng
QA/QCPaul Malburg
Engineering

Solar panels improving electricity
usage per unit of production

The number of employees is given for December 31, 2015.

36

Third-Party Opinion
Hiroyuki Tada

Japan forSustainability

Chief director of the non-profit organization Japan for
Sustainability, visiting professor at Hosei University,
professor at the Tohoku University Graduate School ofEnvironmental Studies, and committee member invarious government agencies

I am concerned about so-called “Japanese-style CSR” that too
often attaches much importance to compliance or the use of checksheets and therefore cannot play the original role of CSR: making
a paradigm shift to a sustainable society. On the other hand,
Lintec Corporation’s CSR based on its company motto “Sincerity
and Creativity” has the potential to come close to the global
standard for CSR.
The Message from the President clearly states that the goal ofsincerity means building relationships of trust with stakeholders.
Creativity is understood as making social innovation driven by
CSR, as proved by the CSR workshops featured in Highlight 2.
Perseverance makes perfect. I believe that the accumulation of suchsteady efforts will lead to the creation of a new business model aswell as social innovation with the new model.
Looking back on the activities in fiscal 2015, what I find notable
are setting materiality-related goals and the main evaluation
indicators and providing non-financial data in addition to financial

data. I hope that the company will implement PDCA cycles for CSR
management more elaborately by using the indicators for the former
and further enhance non-financial data for the latter.
Modal shift featured in Highlight 1 is a steady but important
activity because CO2 emissions from distribution are surprisingly
great in the manufacturing industry. The Lintec Group clearlyprovided its input and output in the Business and Environmental
Activities of the Environmental Report, but it would have been better
if the Lintec Group has explained the impact of the respective
business processes, including distribution, from the LCA perspective,
which would allow readers to clearly see the entire picture.
Lastly, I would like to present a suggestion. Under the current
CSR promotion system, the CSR Management Office serves as asecretariat, and five CSR committees, each of which has an officer
in charge, steadily implement activities every year. From now on, it
will become crucial to link these activities to materiality andintegrate them.
I would also like to add that many activity themes are“defensive CSR.” I suggest that the sixth CSR committee be
established to launch “aggressive CSR” group-wide and thatcommittee activities be coordinated with the CSR workshops that
I mentioned earlier. I believe that it would let “Creativity” fly more
dynamically on the foundation of “Sincerity.”

Response to Third-Party Opinion
Mr. Hiroyuki Tada has provided us with his third-party opinion
since fiscal 2012. We appreciate his understanding of the CSR
activities of the Lintec Group. We are still feeling our way with
CSR workshops, which are directly connected to “aggressive
CSR” based on creativity. We believe, however, that we will comeup with new ideas of human resources development and businessmodels if we persevere. We will make continued efforts totransform CSR activities into innovation engines.
Activities along with identifying materiality are important for
us as a company aiming to attain sustainable growth with society.
By developing targets and key evaluation indicators andimplementing PDCA cycles, we expect that we will be able tofulfil our social responsibility and create virtuous cycles,
including new opportunities. We have just started modal shift, but
we will be able to expand it as our sales division becomes aware ofenvironmental conservation through cooperation with related
divisions. The CSR committees, headed by the officers in charge,
play significant roles in supporting our CSR activities. We will link
the activities of the CSR committees to materiality and coordinate
them with job classifications.
As for the suggestion about the CSR committees, we will
check the progress of the CSR workshops and examine thesuggestion as to when we should enhance them.
Lintec will continue to enhance and promote corporate
activities based on CSR, with the goal of becoming a company
appreciated and trusted by everyone.

Hiroyuki Nishio
Representative Director, President, CEO and COO

Editor’s postscript
The Message from the President is about
promoting CSR activities following thecompany motto “Sincerity and Creativity” forsociety. Highlight 1 introduces modal shift
introduced to reduce environmental impact.

Highlight 2 features CSR workshops
aimed to integrate CSR with business.
We will continue with our CSR
activities to satisfy the expectations of
our stakeholders.
CSR Report 2016 production project members

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