Environmental Initiatives

ENVIRONMENT

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

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

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

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

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

Frequency

Internal auditor course

Once a year

Environmental safety patrol

Four times a year

Environment Month (Message from thePresident)

Once a year

Emergency equipment training

Once a year

High pressure gas (LNG) leak training

Once a year

Chemical leak and emergency shutoff
valve training

Once a year

Chlorine gas leak training

Once a year

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

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

Numazu Plant, Tsukuba Plant

16,23817,151

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

2020

2021

2022

SUSTAINABILIT Y REPORT 2023

(FY)

868

813

800

821

773
623

600

Target to Reduce Greenhouse Gas
Emission Intensity

Target to Reduce Greenhouse Gas Emission Intensity
Greenhouse Gasemission intensity

50%reductionAchievement ofcarbon neutrality

Promote Energy Conservation2013(Base year)

2030

2050

661

20002019

2020

2021

2022(FY)

Effective Resource Use

500788400

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

(FY)

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

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

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

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

73.3%
32,246
26,64670.5%
30,55467.8%
30,830(%)
10080

63.9%
32,92560

20,00040

10,00020020132019(Base year)

2020

2021

2022

*GHG emissions with 2013 emission level set as 100%

21

Industrial wastewater discharge

35,000(%)
100

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

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

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

15,000

FY2022 Environmental Training Programs
Training name

Effective Water Use

Annual Energy Consumption

0(FY)

Pt

PdRh

Purity of 99.95%
or higher

Purity of 99.95%
or higher

Purity of 99.9%or higherRuAu*

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

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

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22

Responsible Care Activities

Environmental Initiatives

Waste Reduction

Management of Chemical Substances

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

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

Annual Industrial Waste Generation

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

(ton)
1,000
800
600

645

741

709

606

400
20002019

2020

2021

2022(FY)

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

Amount reused
89.8%
92.8%

579

658

Percentage recycled

95.6%
708

94.1%
75570

50
253000(%)
1002019

2020

2021

20220
(FY)

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

ENVIRONMENT

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

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

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

RC Promotion SystemRC Committee

Committee Secretariat(Production and Technology Div.)

Head OfficeNumazu Plant

Tsukuba Plant

Plant RC
Committee

Plant RCCommittee

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

Each department
and section

Each department
and section

Human Resources Dept. andCorporate Administration Dept.

- RC Subcommittees

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

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

Code 1
Environmental
protection

Code 2
Process safety anddisaster prevention

Code 3
Occupational
health & safety

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

Code 4
Distribution
safetyCode 5Chemicals andproduct safety

Code 6
Dialogue withsociety

Supply Chain and Management of Chemical Substances Contained in Products

Purchasing stage
Chemical agents

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

Information on
chemicalsubstances
contained inpurchased products
SDS, chemSHERPA, etc.

23

SUSTAINABILIT Y REPORT 2023

Manufacturing stage

Confirmation

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

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

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

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

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

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