CSR Report
Mitsibishi Building, 5-2 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8324, Japan

Corporate Communications Division
Tel: +81-3-3283-5041 Fax: +81-3-3287-0833
Environment and Safety Division
Tel: +81-3-3283-4828 Fax: +81-3-3283-4840
URL http://www.mgc.co.jp/eng/ (English)
http://www.mgc.co.jp/chi/ (Chinese)

2010

Contents

Message from Our President & CEO
About Mitsubishi Gas Chemical (MGC)

Message from Our President & CEO

2
3

FeatureContributing to the diversification ofenergy sources

5

Towards the Promotionof Next-generation FuelDME (Dimethyl Ether)
CSR Management
MGC’s Efforts in CSR
Corporate GovernanceCompliance and Risk Management

78
9

Stakeholders and MGC
Together with Stakeholders

11

Responsible Care (RC) Activities

14
15
17

Environment and Safety Management
Results and Plans for RC Activities
Occupational Health and Safety, Process
Safety and Disaster Prevention
Environmental Burden of Business Activities
Environmental Accounting
Global Warming Prevention
Chemical Emissions
Waste Reduction
Air, Water, Water Resources
Environmentally Friendly Products andResearch and Development
Safety Management of Chemicals
and Products
RC Activities on Site
MGC Group’s Environmental and
Safety Activities

19
21
22
23
25
26
27
28
29
31
35

About this Report
The purpose of the ‘CSR Report 2010’ is to provide
information related to the various activities carried out
by Mitsubishi Gas Chemical Company Inc. (MGC) in
the area of Responsible Care (RC), the steps it is taking
to improve corporate ethics and compliance, and toreport our relations with our many stakeholders in
addition to broadly promoting our (CSR) activities.
MGC began producing an environmental report in
2001. In 2007, the report was renamed the RC Report,
and it continued to provide details about company
activities related to the environment and safety. Startingin 2010, we are changing this report to the CSR Report
to reflect our wide-ranging efforts in the area ofCorporate Social Responsibility. As a result, you willfind that this year’s report provides a much broader
selection of information.
We have put great effort into making this reporteasy to understand, and look forward to your honest
opinion and feedback.

Scope of this Report
Organizations included
All offices in Japan. In the case of MGC Group
companies, proper reference will be made where
necessary.
Reporting period
April 1, 2009 through March 31, 2010 (includes some
activities after April 2010)
However, Responsible Care (RC) activities are included
from 1 January, 2009-December 31, 2009 (includes
some RC activities in 2010)

Reference Guidelines
Ministry of the Environment, “Environmental Reporting
Guidelines (2007)”
Ministry of the Environment “Environmental Accounting
Guidelines 2005”
Global Reporting Initiative (GRI) “Sustainability
Reporting Guidelines Version 3.0”

Publication Information
Date of publication: October 2010
Date of next scheduled publication: October 2011

Disclaimer: This report contains past and present facts, in addition
to information about expectations regarding social conditions,management plans and policies of the company together with
anticipated results. These assertions or assumptions are based on
the information available at the time of drafting, however unforeseen
circumstances may lead to unexpected social conditions or result inchanges to business activities which are different to thoseexpressed here.

1

Adoption of CSR Practices Is
Critical to Becoming a Truly
Socially Engaged Chemical
CompanyKazuo Sakai
President
October 2010

As one of society’s corporate citizens, we exist
solely because of the support of our various
stakeholders including business partners,
communities and company staff. Mitsubishi Gas
Chemical (MGC) has conducted business activities
so as to earn the trust and sympathy of society,based on our management concept of “making
contributions towards development in harmony withsociety through the creation of a diverse range ofvalue based on chemistry” and our group vision of“working to achieve sustainable growth while
contributing to society as a highly profitable,
research-driven industrial group.”
Specifically, with improvements to corporate
governance as a given, an effective internal control
system was established throughout the group. While
ensuring the soundness of corporate activities byimplementing compliance and risk management, weare also proactively pursuing activities related to theenvironment and safety.
In particular, MGC does not simply stop at
compliance with the law and company regulations.
We are committed to actively responding to thedemands of society by broadly defining a policy of“acknowledging our social responsibilities andconducting fair, transparent and free businessactivities in addition to follow the law, company
regulations, and social norms.” The “MGC Code of
Conduct” defines the rules each employee mustobserve, and basic items to be observed during

everyday work.
MGC is committed to Responsible Care
activities, which are self-regulations for ensuring
environmental safety in our products’ whole
lifecycle, from their fabrication to disposal.
Furthermore, MGC is taking steps to adopt
environmental accounting, develop environmental
products, carry out green procurement, reducegreenhouse gas emissions, and achieve zero
emission of waste products.
Under the principle of sustainable development,
MGC is always conscious of the social andenvironmental impact of our business activities. At
the same time, our desire is to consistently carry out
our role as a chemical manufacturer to produce
chemicals that provide the basis for all industries,
while continuing to grow as a company that isneeded by society. Furthermore, we will focus ondeveloping new products and technologies thatutilize our skills and knowledge. By providing
products and technology that contribute to energy
efficiency, conservation of resources, and reductionof environmental impact, we will be in a good
position to meet corporate obligations.
Through the efforts of this group’s employees,
we will strive to fulfill our corporate social
responsibilities in order to earn the trust and supportof all our stakeholders.

2About Mitsubishi Gas Chemical (MGC)

To Continue Providing the Technology and Products that Help
People Increase Their Quality of Life While Supporting the
Sustainable Development of the Global Community.
Corporate Information

Major Products and Business Lines—Six businesses operated by four companies

Company name
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Corporate Logo

Natural Gas Chemicals Company

Head office address
Mitsubishi Building, 5-2 Marunouchi 2-chome,
Chiyoda-ku, Tokyo 100-8324, Japan

Natural Gas
Chemicals

Established

January 15, 1918

Incorporated

April 21, 1951

Capital¥41.97 billion (as of End of March, 2010)

Number of employees
2,282 (non-consolidated) 4,920 (consolidated)
Main Business Sites in Japan
Branch offices
Osaka branch
Research institutes
Tokyo Techno Park (Tokyo Research Laboratory,
MGC Chemical Analysis Center), Niigata ResearchLaboratory and Hiratsuka Research Laboratory
PlantsNiigata Plant, Mizushima Plant, Kashima Plant,
Yokkaichi Plant, Yamakita Plant, Naniwa Plant andSaga Plant

Tokyo Techno Park (TTP) opened in October 2009.
This urban research and development center is responsible for the study of
specialty chemicals and advanced materials.

Aromatic
Chemicals

Inorganic
Chemicals

Financial highlights (Consolidated)
Net sales / Operating income / Ordinary income

Net income / Return on equity (ROE)(Millions of yen)

(Millions of yen)(%)

(Millions of yen)

Total assets / Net assets ratio(%)

300,000

60

200,000

40

100,000

20

500,000

100,000

50,00015

400,000

80,00040,00012

300,000

60,00030,0009200,000

40,00020,0006

100,000

20,00010,000

3

0

0

0

0

-100,000-20,000-10,000-3

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net sales

Operating income(FY)

Ordinary income

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(FY)

Return on equity (ROE)

Net income

0(MGC’s previous medium-term plan)
Kyoso literally means ‘collaborative innovation’• Achieved record earnings in FY2006
and FY2007• Lost growth momentum in FY2008
with impact of global recession

Engineering
Plastics

Develops a range of products from industrialuse hydrogen peroxide, to chemicals for use in
the electronics industry and environmental
agents. Also involved in the development of
resinous material for functional thermal curing,and has a product lineup that ranges frommonomers for high refractive index plastic lenses
to photoresist monomers.

Major products
Hydrogen peroxide, Chemicals
for use in the electronics industry,
Persulfates, Organic titanates,
Water treatment agents,
Environmental agents, Monomers
for high refractive index plastic
lenses, Adamantane derivatives

Mainly involved in development of engineering
plastics, including polycarbonate and polyacetal.
Also develops special polycarbonate for specificapplications such as optics as well as
polycarbonate sheet & film with excellent surface
coating technology.

Major products
Polycarbonate Iupilon®,
Polyacetal Iupital®, Polyamide
MXD6 Reny®, Polycarbonate
sheet Iupilon® sheet, Special
polycarbonate Iupizeta®

0

Total assets

Net assets ratio

Information & Advanced Materials Company

MGC Will 2011
(FY2009-2011)• First stage toward thedesired MGC Group of2021• Return to a growth path

The desired
MGC Group in 2021,
ranked in the
Global Top 30
Sales exceeding¥1 trillion* 2021 will be MGC’s 50th anniversary

Aiming to produce sustainable growth as a highly differentiated,widely recognized chemicals group operating from a strong platform of proprietary technology.
3

Major products
Metaxylene, Metaxylenediamine,
Nylon-MXD6, Aromatic
aldehydes, Aromatic
polycarboxylic acids, Purified
isophthalic acid (PIA), Plasticizers

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (FY)

Medium-Term Management Plan MGC Will 2011
Kyoso 2008
(FY2006-2008)

Develops unique aromatic products centered on
the metaxylene chain, including aromatic aldehydes
and aromatic polycarboxylic acids, which areused as intermediates in pharmaceuticals,
agrochemicals and fragrances, monomers, andadditives. One of our core products, Nylon-MXD6,
is a derivative of metaxylene that is used for PET
bottles and food packaging because of its
excellent gas barrier property.

Specialty Chemicals Company* As of March 31, 2010

(Millions of yen)

Major products
Methanol, Formalin, Methanol
synthesis catalyst, Ammonia,
Amine, Polyol, Methyl
methacrylate, Dimethyl ether(DME), Catalase, CoenzymeQ10

Aromatic Chemicals Company

35

Number of consolidated subsidiaries

Includes a wide product lineup, spanning fromcore chemical materials such as methanol,ammonia and their derivatives to CoenzymeQ10
made using biotechnology. Also involved in the
exploration and drilling of petroleum and natural
gas and geothermal development.

Electronic
Materials

OxygenAbsorbers

Mainly involved in laminate materials for printed
circuit boards and entry sheets, used inmechanical drilling of printed circuit boards. Its
core product BT laminate material led the movetowards using plastic material for semiconductor
packaging, and it still remains synonymous withsemiconductor package boards.

Major products
Laminate materials for printed
circuit boards (epoxy-relatedmaterials, BT-related materials
and entry sheets (“LE sheets”)
used for the mechanical drilling ofprinted circuit boards.

Expanding the business with a focus on oxygen
absorber AGELESS® which was developed basedon the idea to create an oxygen-free packaging
environment that prevents food deterioration byoxidation. Currently it is not only used for preserving
food freshness but also in other areas as a totalsolution for maintaining quality, including forpharmaceuticals, medical devices, electronic/metalparts and important cultural assets.

Major products
Oxygen absorber AGELESS®,
PharmaKeep®, RP System®,anaerobic cultivation system
AnaeroPack®, and desiccant
AGELESS DRY®

4

Feature
Commercialization of DME Fuel, First Shipments in 2009

Contributing to the diversification of energy sources

Towards the Promotionof Next-generation FuelDME (Dimethyl Ether)
With concerns about high oil prices and the depletion of fossil
fuels, the “diversification of energy sources” has become apressing issue in Japan.
Against this backdrop, there are a number of candidates fornext-generation fuel, one of which is gaining much attention in
Asia: DME (Dimethyl ether).
Mitsubishi Gas Chemical Company (MGC) has been pioneering thetechnology needed to produce DME for more than 40 years, and
MGC is committed to the promotion of DME as a promising fuel.

DME in the Spotlight as a Next-generation FuelDME is attracting attention as a next generation fuel, not only
because of its environmental merits as a potential ‘clean’alternative to the black smoke-producing diesel engines
commonly in use today. DME’s strength lies in the fact that it
can be made from various materials and put to use in avariety of applications. It is truly “Multi-Source, Multi-Use”
energy (see Figure below), bringing with it the social benefitof a highly stable supply. In the future, we can expect to see
locally available materials being used as a source toproduce DME for local fuel applications based on the notionof “local production for local consumption of energy.”
Also, in addition to the fact that natural gas, which is a
raw material for DME, is widely deposited in regions
DME’s clean credentials• No direct coupling of carbon, no PM (soot) during combustion• Does not contain S (sulfur) or N (nitrogen), so does notcause SOx emissions• Efficient combustion, with low CO2 emissions

outside the Middle East, DME can be liquefied more easily
than LNG (Liquefied Natural Gas) and, because it is easilytransported and stored, it can be produced in small natural
gas fields where LNG production would not be
economically viable. And because existing LPG (Liquefied
Petroleum Gas) infrastructure can be used, capital
expenditure requirements are greatly reduced.
As one of the leading producers of methanol in theworld, MGC has long been a major supplier of clean gas
CFC propellant substitutes for use in products such as paint,
cosmetics, and insecticides, thanks to its early leadership indeveloping the process technology for making DME.
Furthermore, the company believes that its continued efforts
to promote the widespread use of DME will make a positive
contribution to society’s energy supply needs.
*1 Development of DME process technology: MGC uses natural gas toproduce methanol, and established the DME production process in 1965
for methanol derivatives.

MGC took its first step toward commercializing DME fuelfor energy applications in 2001 when Japan DME Ltd. wasestablished*2 and a feasibility study of DME was launchedin Western Australia. In 2004, the MGC played a pivotal rolein the establishment of the DME Promotion Center which
promotes the spread of and develops technologies for
DME use*3, while in 2007, Fuel DME Production Co., Ltd.
was established*4. Located inside the Niigata Plant is a fuelDME promotion plant that produces 80,000 tons of DME
annually, enough for it to be utilized as DME fuel.
In 2008, as next-generation clean energy was thrust
into the spotlight, the government’s revised master plancontained a policy to “promote the installation ofequipment using DME.” At the same time, the government
publicly announced a plan to offer a subsidy for equipmentusing DME fuel. The first company chosen to takeadvantage of the subsidy was a food manufacturer in
Niigata Prefecture, and in January of 2009, MGC made thefirst DME fuel shipment from its new plant. Another food
manufacturer from Niigata became the second company
to join this project, with DME fuel shipments expected to
begin during FY 2010.

*2 Japan DME Ltd.: Established in collaboration with Itochu Corporation,
JGC Corporation and Mitsubishi Heavy Industries Ltd.
*3 DME Promotion Center: Established in collaboration with JFE Holdings*4 Fuel DME Production Co., Ltd.: Established in collaboration with ITOCHU
Corporation, Japan Petroleum Exploration Co., Ltd., Taiyo Oil Co., Ltd.,TOTAL Di-Methyl Ether Japan Ltd., Toyota Tsusho Corporation, JGC
Corporation, Mitsubishi Heavy Industries Ltd. and Mitsubishi Chemical
Corporation.

Fuel DME Promotion Plant inside MGC’s Niigata Plant

Numerous Experiments Bring Diesel Vehicles Closer to Practical Use
One of the difficulties of DME is that, similar to ethanol, iteasily causes the swelling of particular rubbers. As aconsequence, it is essential to establish DME’s safety
before promoting it as a fuel.MGC has worked together
with the concerned agencies and local authorities tothoroughly test DME in applications such as boilers, gas
turbines, diesel generators and emergency power fuelcells, as well as by conducting experiments using an LP
gas / DME mixture to confirm safety.
DME is particularly suitable for use in diesel vehicles, so
now there are a variety of organizations and companies
working on the commercialization of DME trucks andbuses. MGC has been cooperating in DME vehicle testingas part of the Ministry of Land, Infrastructure, Transport andTourism’s “next generation low emission vehicle
development and commercialization promotion.” Using two
common-rail diesel trucks developed by Isuzu Advanced
Engineering Center Ltd., long-distance driving tests (96,000
km annually) have been carried out on public roads in the
Niigata and Kanto regions.
It is possible to run for
600km on one tank of fuelMulti-source, Multi-use DME
Multi-Source

Multi-UseNatural gas

Electricity
generation
Made from a variety
of materials

BiomassH

H

H C O C H
H

Transportation

A Major Pillar of Next-generation Energy

Methanol
Saudi Arabia(LPG supplement,

5,000,000 tons per year

(substitute fordiesel / LPG in
vehicles)

DME
Niigata (Japan)
80,000 tons per year

Fuel Cells

H

DME
Papua New Guinea

Consumer(LNG alternative)

DME
Qatar

Industrial(substitute fornatural gas,
crude oil)

(Currently conducting a feasibility
study)

CO2

Propellant(LPG alternative)

Methanol
BruneiDME
Indonesia

MethanolVenezuela

OthersOthers850,000 tons per year

(Currently conducting
a feasibility study)

1,600,000 tons per year

Methane gas
For use in many
applications

5

MGC Group methanol / DME production facilities andcommercialization plans

Manufacturing fuel oil substitute)

Coal

DME

(substitute forfuel oil / coal)(Currently conducting a feasibility study)

Many evident demonstration projects are currently under
way to prepare the path for DME’s commercialization. At
the same time, process development is underway for DME
production using bio-materials, where attention is focusedon the successful production of bio-DME from eucalyptus
under the collaboration between the DME Vehicle
Promotion Committee and the Biomass Technology
Research Center, National Institute of Advanced Industrial

Science and Technology.
It has been said that it will take more time for DME to
become popular, however once it is commercialized, it may
become a major pillar of next-generation energy options.
MGC will continue to persevere in its research efforts,
working steadily with respective agencies to make DME’scommercialization a reality.

6

CSR Management

MGC’s Efforts in CSR

Corporate Governance
The establishment and maintenance of a sound and transparent management system is a key management issue,
and a number of measures are being pursued with the aim of improving transparency, ensuring fairness, andaccelerating decision-making.

In December of 1997, we put in place the “MGC
Corporate Behavior Guidelines,” as a way for ourcompany to gain the trust and understanding ofsociety while ensuring that we could foster confidence
and pride among our employees. Then in November
2007, we undertook a major revision to incorporate amore assertive Corporate Social Responsibility (CSR)

function that plays a critical role in ensuring MGC’s
continued development as a healthy company that is
worthy of society’s trust and sympathy.
We are committed to the CSR activities in our
medium-term plan—MGC Will 2011—launched in 2009as part of our CSR program.

MGC Corporate Behavior Guidelines
Mitsubishi Gas Chemical Company, Inc. (“MGC,” “the Company” or “we”) aims to be a company that actswith sound judgment and maintains the trust and understanding of society. The Company operates under six
behavioral principles, presented and explained below, and will share knowledge of these principles widely
throughout Group companies.
Senior managers recognize that it is their role to embody the spirit of these principles, and while ensuringthat they have a full understanding of the necessary information inside and outside the Company, they willtake the initiative to promote a high level of corporate ethics, and strive to develop and operate an effective
framework for this purpose through the internal control system. Furthermore, if an incident takes place incontravention of these guidelines, they will take command and fulfill their obligations for internal and external
disclosure, strive to identify the cause of the incident and prevent its recurrence, and deal with the matter
strictly and fairly in respect to all parties, including management itself.
(1) MGC will ensure customer and consumer satisfaction and trust by providing high-quality products andservices that are useful, safe and reliable(2) MGC will voluntarily and proactively address environmental issues(3) MGC will comply with laws, regulations and rules, and will conduct fair, transparent, appropriate and open
business activities

The Company has adopted an executive officer system andpositioned the Board of Directors as the organization
responsible for making decisions on critical management
issues, including basic policies, and for overseeing businessexecution. This has strengthened governance and enhanced
the operational framework by clarifying functions andresponsibilities. MGC has also adopted an internal company
system for its business divisions, which has clarified
responsibility and improved management performance.
MGC aims to enhance the transparency and fairnessof management through internal audits performed by theCompany’s Board of Corporate Auditors and will develop
effective corporate governance through appropriate
disclosure of management information.

Overview of Corporate Governance
Structure
The current management structure consists of 10 directors
and 22 executives (including people who concurrently serve
as directors).
Any important matters affecting MGC are to bereviewed and decided with a broader perspective atmanagement meetings where management policy may be

Corporate governance, risk management structure figure
General Meeting of Shareholders
Management(4) MGC will endeavor to ensure broad-ranging communication with society through appropriate disclosureof information

Board of Directors(5) MGC will engage in business activities that are useful for society, and actively contribute to society as a
responsible corporate citizen(6) MGC will provide comfortable and productive working conditions for employees, and will ensure a safeand rewarding working environment

Corporate Auditors

Auditing /Supervision

Advising
Attorneys, etc.
Independent Auditors

Established as atemporary framework

Business Execution

Auditing

ChairmanPresident
Compliance Committee

Incident Response
DivisionGroup Vision—‘MGC Will 2011’ Medium-Term Plan

Board of Corporate Auditors

Auditing / Supervision
Crisis Management

For entire guidelines, please refer to our website; http://www.mgc.co.jp/eng/about/compliance/index.html

discussed, and at executive officer meetings wheredefinitive action plans may be discussed. In addition, MGC
draws upon the expertise of legal counsel and otherexperts when required in the decision-making process andthe business execution of the company.
There are five corporate auditors, three of whom areexternal. They attend important meetings as well as board
meetings, conduct audits on subsidiaries, and strive tounderstand the decision-making process and status ofbusiness execution. In addition to ensuring a rational
decision-making process and compliance with the law andcorporate ethics, the auditors conduct inspections of ourbusiness operations.The auditor holds regular meetings with
the CEO, and receives status reports from directors andemployees on a regular basis or ad-hoc basis whenconcerning important matters, and may request surveys orreports concerning business compliance. The auditors also
inspect important documents concerning business execution,and require information from directors and employees.
In order to enhance internal controls and improve
efficiency of business management, we have establishedan Internal Audit Office that is separate from the statutory
auditors. This office oversees the execution of MGC and MGC
Group companies to ensure adherence to our annual plan.

Basic Approach to Corporate GovernanceCompliance Consultation
Desk

Management Council

Overseas Safety
OfficeOperations Council
Internal Control
Promotion Committee

MGC Group aims to thoroughly realize CSR goals in all its activities while developing and growing
sustainably on the global stage as a highly differentiated, widely recognized chemicals group operating froma strong platform of proprietary technology.
Company Groups

Risk Management
Committee
Inspection / Reporting /Auditing

Internal Audit DivisionCorporate Groups
Inspection
Application of MGC’s Internal Control System
Subsidiaries

78

CSR Management

Compliance and Risk Management

MGC Group Compliance
MGC established its “MGC Corporate Behavior Guidelines”
in 1997 in an effort to strengthen its compliance system. In
2002 it established a Compliance Committee and aCompliance Consultation Desk. Moreover in 2004, thecompany laid down its “MGC Code of Conduct” and“Compliance Regulations,” and worked with its groupcompanies to ensure that they were aware of the policies
and adhered strictly to the compliance rules.
Within the MGC Group we strive toproactively meet the needs ofsociety by not limiting “compliance”
to a set of laws and internal rules,
but by embracing a broader beliefin “complying with the law, internal
rules, and social norms, as well as
recognizing our corporate social
responsibility to create a company
with fair, transparent and open
MGC ComplianceHandbookbusiness practices.”
MGC compliance concepts
Compliance Regulations

MGC compliance structure

Message from the Director in Charge of Corporate Communications Division

Board of directors

AuditorsCompanies operate within the society, receive the capital necessary to run their

President
Executive Board

Reportproduce. A company, therefore, needs to gain the trust of all of its stakeholders if it isReportto continue and grow its business.
Compliance Committee

Since 2001 the role of the “RC (Responsible Care) Report” has mainly been to

Chairman (Compliance Officer)
One director
General Manager of Internal Audit Div.
General Manager of Environment &Safety Div.
General Manager of Corporate
Communications Div.
General Manager of General Affairs Div.,
Administrative & Personnel Center
Temporary members

provide information on our environmental and safety activities; however, commencing

Reportwith our 2010 edition we are changing its name to the “CSR Report” to reflect theincreased focus on our social and an economic activities as well.
While maintaining a balance of environmental, social and economic perspectives,
Corporate divisions

MGC Code of Conduct

9

we will continue to improve our CSR efforts for sustainable growth.

Jin Hata

Each company

Representative Director &Senior Managing Executive Officer

Each affiliate

Compliance OfficeInternal Contact
General Contact
Individual Contact
External Contact
General Counsel
Attorney

Risk Management Promotion System
Consultation and
Notification

MGC Corporate Behavior Guidelines
Toward a more concreteStandard of Conductbusinesses from society, and offer society the products and services that theyConsultation and
Notification
People involved in MGC Group’sbusiness activities

Compliance System and the Initiatives

Risk Management

At MGC we have established a Compliance Committee tooversee matters concerning the Group’s complianceprogram, headed by the Chief Compliance Officer andreporting directly to the President. In addition, we set up a“Compliance Consultation Desk” to detect and rectify
non-compliance issues at the earliest stage.
Also, we set aside October each year as “Ethics
Month” for compliance training. MGC’s intranet contains
materials covering roughly 40 types of compliancerequirements. We select some particular agenda, whichmatch the social conditions of the time, and have our staff
learn them through our e-learning system. In an effort toraise awareness of “Ethics Month,” the President actively
promotes the program by communicating the details to allof our offices.

MGC created a Risk Management Committee in 2006 to
respond to various risks related to our business activities.
This committee helped to raise awareness of risk
management’s importance by conducting seminars forsenior management and for all employees at every MGC
offices. The committee identified risks specific to eachbusiness sector, and created a detailed list of hundreds ofrisks for further evaluation.
In 2007, we selected the pressing risks among thelisted in order to prioritize them and consider potential
solutions, and formulated a Business Continuity Plan (BCP).
Since 2008, we have worked to ensure that risk
management permeates even deeper within thecompany, while at the same time implementing measures
to reduce potential risks, and re-evaluating the BCP on an
ongoing basis.

The Risk Management Committee, headed by the risk
management officer, is responsible for assessing andprioritizing the status of risk management and providing
instructions and supervision to the appropriate division sothat mitigating actions can be taken.
In terms of risks associated with project implementation,
we have developed an action plan to identify and evaluate
risks inherent in our operations or internal control systems.
We then take the appropriate steps to prevent, avoid,
reduce or divert the risk. In the event that a serious risk is
identified, we set up a special group to cope with it
according to internal rules.

Countermeasures for Company-wide Risk
and BCP Development
At MGC, all of our facilities cooperate closely in theformulation of business continuity plans (BCP) that ensure
the company can cope with such company-wide risks ascaused by earthquakes, poisons, hazardous material
leaks, fires, explosions, and information leaks.

Countermeasures for Metropolitan
Epicentral Earthquake
In 2008, MGC put special measures in place to cope witha major earthquake in the Tokyo metropolitan area (amagnitude 7.3 earthquake north of Tokyo Bay assumed by
the Cabinet Office). We introduced a safety confirmation
system and provided each office with satellite phones andradiotelephone so that we are able to contact each officeeven in the event of a major earthquake.
As part of our BCP, we conduct emergency training
sessions using these systems and equipment each year,
so that even if headquarters becomes paralyzed, each of
our facilities such as plants and research centers may
continue supporting customers and maintaining otherservices, supplementing the headquarter’s function.

Response to Pandemic Influenza
Influenza (H1N1) was confirmed in Mexico in April 2009. In
response to this, MGC has enforced prevention efforts byredeveloping its entire global network of contacts andfollowing WHO and Japanese (Ministry of Health) directives.
Influenza remains a concern, however, we will develop
measures to cope with the spread of influenza by utilizing
our enhanced network and following BCP which iscurrently under development.

10

Stakeholders and MGC

Together with Stakeholders
As a member of society MGC contributes to the community, and by fulfilling its responsibilities to various
stakeholders, the company will earn society’s trust and sympathy.

Working with Local Communities
MGC is deeply aware of its role as a member of society,working to improve its position of trust through a variety ofcommunication channels, and promoting activities that
contribute to the community.

Cleanup around plantParticipation at tradeshow

At each of its sites MGC participates in voluntary cleanup
activities such as roads and nearby river beds.

MGC actively participates in various exhibitions as a way tolisten to the voice of our customers, which in turn helps us
to develop better products.
A good example of this was the “Health IngredientsJapan 2009” show held at Tokyo Big Sight, where we
introduced our oxygen absorber “Ageless®” andCoenzyme Q10. The exhibition brought new materials andfunctional materials, safety and quality all together under
one roof. As Asia’s largest
technology-related foodexhibition focusing on thetwo big trends of ‘health’and ‘safety,’ this show has
drawn a great deal ofinterest at home in Japanand abroad.
MGC booth

Neighborhood council briefings
Every year, we actively participate in an open dialog with
our neighborhood council.
For example, in 2009, we
invited the neighboring
residents’ association to theTokyo Techno Park opening
and held a briefing to informthem about our facilities
The public briefing at Tokyo Techno
Park opening
and research.

Hiratsuka Research Laboratory /Collecting trash with elementary
school students at Sagami River

Yokkaichi Plant / Cleaning the roads
around the plant

Our Business Partners
Efforts to improve customer satisfaction

Facility tours

In order to provide customer satisfaction to our clients,from our business partners to end consumers, MGC is
committed to providing safe and reliable products andservices. All of our plants have received ISO9000 series
accreditation for international quality management.
We also conduct customer satisfaction surveys in aneffort to constantly improve product quality and service.

In response to requests
from neighborhood
schools, we organize tours
for students to be
conducted at our facilities.
Mizushima Plant / Local high school
students taking a tour of facilities

To provide junior high school science kits
To help students become more interested in science,
especially in chemistry, we provide junior high schools near
our facilities with chemistrykits to make their own
portable heating pads.
These kits teach thestudents about theoxidation of iron, which
generates heat and makes
Science experiment kits
the pads warm.

Blood donations
Employees donate blood in
mobile vans that we invite
into our premises.

At the Logistics Department, Purchasing & Logistics
Center, we work with our partner, transportationcompanies, to ensure the safety of our supply chain, toimprove the quality of distribution, and work towards a
modal shift. We conduct audits of our partner companies
from both a legal and compliance standpoint, and strive tobuild even stronger
relationships with them.
In addition, each of ouroffices conducts a Safety
Day together with partnercompanies, enhancing
safety awareness.

Personnel system andhuman resources development
MGC’s management concept is, “making contributions
towards development in harmony with society through thecreation of a diverse range of value based on chemistry.”
Our desire is to foster a team of professionals,
empowering individuality in each employee and creating avibrant workplace.

Number of
new employees
Number of employees
at third year after
joining, as of April
Retention

FY2005

FY2006

FY2007

FY2008

23

24

47

69

21

23

47

69

91.3%

95.8%

100%

100%

Employee tenure (as of March 2010)
Male

FemaleTotal

Average age

41 years old
and 9 months

41 years old
and 7 months

41 years old
and 9 months

Average continuous
tenure19 years and4 months

19 years and5 months

19 years and
1 monthRe-employment
In response to measures that raise the eligibility age for
special payments of the old age pension, we haveintroduced a retiree re-employment scheme to ensure astable life after retirement. MGC provides in principle all
employees the opportunity to continue working if they arehealthy and desire to do so. Having motivated employees
continue to play an invaluable role in the company helps tomake it a vibrant workplace.
Re-employment of retirees
Workers desiring
re-employment

FY2006

FY2007

FY2008FY2009

76

77

65

68

Re-employed workers

76

77

65

68

Re-employment rate

100%

100%

100%

100%

Social contributions and other support
Personnel system
MGC’s personnel system is a multi-stream vocational
qualification grading system based on objective
management. Up to the standard age of 28, employees
belong to the same basic career path regardless of genderor educational background, and then move on to selectcourses that will help them in their career. It is a system thattreats all employees equally, providing them with a range ofcareer opportunities in line with individual aspirations thatmeet their role, achievements and capabilities.

Mizushima Plant Safety Day

Niigata Plant / Blood donations

11

Building better relationships withpartner companies

Employees

Retention of new employees (three years after joining)

Human resource development
In order to create an environment for each employee toachieve individual goals, we are working to enhanceself-development programs (language training anddistance learning, support for qualifications, external
training, etc.) for each rank and sector using tools such as
skill-development training and distance education.

We take pride in the fact that our employees contribute tovarious social activities in their everyday lives. In 2009, to
encourage more social activities, we introduced a special
paid leave such as “volunteer holiday” or “donor holiday.”We also provide employees with paid leave for public
service activities such as the saibanin (jury) system,
creating an environment in which employees can actively
contribute to society.

Work-life balance
At MGC we believe that a proper work-life balance is vital.
To help promote this idea we have implemented a
no-overtime day, encourage our employees to take their
paid leaves, and introduced flextime as well as a systemthat allows employees to roll-over expired annual leave.
In order to support employees with children or aging
parents who need assistant care, we introduced achildcare leave and nursing-care leave system, in addition
to a system allowing shorter working hours, to help
employees balance work with family life.

12

Stakeholders and MGC
Together with Stakeholders

Union / labor-management relations

Maternity leave
Number of employees
on maternity leave
before & after birth
Number of employees
on childcare leave*

FY2006

FY2007

FY2008FY2009

4

6

5

4

5 (1)

5

6 (1)

4

FY2006

FY2007

FY2008FY20090

1

10* Number in ( ) indicates men on childcare leave

Family care leave
Employee exercising
leave

Ensuring mental health
It is important that our employees maintain their physicalhealth, at MGC we have implemented programs to ensure
mental health as well. The Employee Assistance Program(EAP) is one of these, in which employees can freely
contact external professional institutes by e-mail,telephone or in person to discuss concerns. In addition,
we conduct an annual “mental health” test to assess
stress conditions and provide opportunities for
self-evaluation while striving to raise stress awarenessthrough workshops.
We also conduct mental health training during sessions
designed for new employees and employees receiving a
promotion. For new employees in particular, we have a“mentor system,” which helps new staff gain
independence as both an MGC employee, and as amember of society.

Respect for human rights
At MGC, we strictly adhere to our Corporate Behavior
Guidelines and MGC Code of Conduct, to respectindividual personality and human rights, to not hurt anyone
by discriminating against them based on their race,
gender, nationality, age, religion or place of origin. We
provide separate training courses on human rights for new
employees and managers to raise awareness of humanrights among all employees.
Our Code of Conduct also articulates that sexual
harassment and power harassment are prohibited. We arecommitted to preventing them within our company, andreinforce this principle through training sessions, internal
communications and a special consultation desk.
These guidelines and code—along with guidelines for theprohibition of child labor and forced labor—have beencommunicated to our group companies overseas.

Over the years MGC and the Mitsubishi Gas Chemical
Workers Union have built up mutual trust and respect
between each other based on positive labor-management
relations, which allows them to work together to solve
various issues. We regularly hold management council
meetings to discuss issues related to management, andorganize a joint management committee (such as a
Personnel System Review Committee, etc.) for more
specific agendas.
Together we have revised the personnel system, there-employment system, and retirement plans. Other issues
such as wages and bonuses are determined throughyearly collective bargaining and other negotiations.

With Shareholders and Investors
Basic policy on profit distribution
Returning profits to shareholders is considered one of
MGC’s most important management issues. Distributions
are determined by a combination of performance-linked
factors and stable dividends.

General meeting of shareholders
The annual shareholders meeting is held avoiding peakdays so that as many shareholders can attend as possible.
MCG is also endeavoring to send the convocation noticeas earlier to give shareholders more time to consider
what to vote, and adopt an electronic voting system forbetter convenience.

Briefings for institutional investors and securities
analysts, facilities tours
MGC holds results presentations for securities analysts
and institutional investors following the announcement of
its interim and year-end financial results, in addition to
conducting tours of its facilities. In 2009, tours of Tokyo
Techno Park and Saudi Methanol Company (Saudi Arabia)
were arranged.

Responsible CareAt every stage of their operations, companies dealing withchemicals must ensure that the environment, safety andhealth are safeguarded. This starts with the development andmanufacturing of chemicals, and goes all the way through to
distribution, use and final disposal after consumption. It also
involves publishing the resultsof those activities, being
engaged and willing tocommunicate with society. The
chemical industry refers to thisconscientious activity as
Responsible Care (RC).

Scope of this Report
Organization
All domestic business sites of MGC and its Group companies
in Japan dealing with chemicals
Reporting period
RC activities: from January 1, 2009—December 31, 2009
(includes some activities in 2010).
Environmental performance data: from April 1, 2009—March
31, 2010.

The interim results briefing in March
2010

13

Responsible Care (RC) Activities

Tokyo Techno Park tour

14

Responsible Care and MGC

Environment and Safety Management
Sustainable development, building a recycling-based society, and safe operations are the three critical businesschallenges that MGC faces. Responsible Care (RC) is our response to both the environment and safety issues, andit has been rolled out throughout the company.

Support for the Responsible Care
Global Charter

Message from the Director in Charge of Environment and Safety

In conjunction with chemical industry associations worldwide,
MGC signed the “RC Global Charter” in June 2009, tostrengthen global Responsible Care related activities.

MGC Group does not limit its compliance to observing laws and regulations. We undertake avariety of environment and safety activities based on our firm belief in RC, taking voluntary andKey elements of the Responsible Care® Global Charter

responsible steps to ensure both environmental preservation and safety in our operations.
In terms of environmental preservation, we have set and are trying to achieve numerical

1. Adopt global Responsible Care core principles

targets for chemical emissions reduction, industrial waste reduction and energy conservation.

2. Implement fundamental features of national Responsible
Care programs

In terms of safety, we are working towards an accident- and injury-free workplace.

3. Commit to advancing sustainable development

In order to reduce the risk of accidents and injuries further, we are promoting a

4. Continuously improve and report performancecompany-wide project to foster a culture of organizational safety, as with importance of

5. Enhance the management of chemical products
worldwide—Product Stewardshipnatural healing capacity for human health.

6. Champion and facilitate the extension of Responsible
Care along the chemical industry’s value chain

new challenges we will concentrate on environmental and safety activities as our

We will continue to improve and strengthen these activities. While we address
corporate responsibility.

7. Actively support national and local Responsible Care
Governance processes

Ageishi KuniakiManaging Executive Officer

8. Address stakeholder expectations about the chemical’s
industry’s activities and products
9. Provide appropriate resources to effectively implement
Responsible Care

Responsible Care Global Charter certificate

Fundamental Policies on Environment and Safety
MGC, as an important member of the community, makes an effort to earn social trust by recognizing our
responsibility to contribute to the community and to secure the environment and safety, and by thinking of
how to put our corporate activities in harmony with the protection of the global environment under the
principle of sustainable development.

Environmental
and Safety Targets

Zero Accident, Zero Occupational Injury and Environmental Preservation

Fundamental
Policies• Ensuring of health and safety in our operations• Securing security management of facilities and increasing self-maintenancetechnologies and skills• Reducing environmental burden in business activities• Ensuring safety in use, handling and disposal of products• Development of environmentally-friendly and safety-conscious products and technologies• Ensuring environmental conservation and safety in the logistics of obtaining raw
materials, and storing and delivering our products• Building society’s confidence in us• Providing support to subsidiaries and affiliates in implementing their own RC activities• Continuously improving our RC management system
We shall comply fully with applicable domestic laws and foreign rules and shall also
cooperate with related international organizations, international and national
administrative organs and nongovernmental organizations as required.

Responsible Care Promotion System

RC Audit in 2009

All of MGC’s divisions from both a company and corporate
level, follow fundamental environmental and safety principles
that promote Responsible Care. Every December, MGC
holds environment and safety meetings, which are chairedby the president and consist of all executive officers, division
heads, and plant managers, and takes steps to makecontinuous improvements in the PDCA cycle based on the
RC mid-term targets and annual activity targets.

The director in charge of environment and safety, together with
an auditing team, conducts the RC audit. This audit assesses
the implementation status of RC action plans at each of oursites. In 2009, this comprehensive audit included an assessmentof our adherence to applicable business laws (acknowledgment),
compliance (responsibility), as well as a check of conditions
and operating status of our standard procedures. Finally, itevaluated our efforts to foster a safety culture.
Audit period
August—October, 2009

President
Director in charge of environment and safety
Environment and Safety Meeting
MGC Group Environment and Safety Council
GHG task force
Responsible Care audit
Audit of certified high pressure gas plant
Environment and safety inspection
Environment and safety manager meeting
Administrative divisions
Companies

Business divisions
Planning and development divisions
PlantsEnvironment and safety
departments

Researchlaboratories

Environment and safety
departments

Audit findings
Full conformity (23 cases)
Non-conformity (0 cases)
Improvement orders (34 cases)
Comments (21 cases)
Follow-up issues identified in previous year
After items had been identified in the previous year, theresponse of each plant confirms that the proper
measures were taken.

Corporate headquarters
Environment and safety division (Administrative office of RC)

15

Auditee
6 Plants (including former Tokyo Techno-Center)3 Laboratories
Business divisions of 4 companies
Purchasing & Logistics Center

Auditee presentation

Confirmation of documented evidence

16Responsible Care and MGC

Results and Plans for RC Activities
Every five years MGC announces a new medium-term RC plan, and establishes yearly plans in pursuit of achieving
the goal. It then evaluates the results of the activities to help the company meet its designated targets.
* Description of Distribution Safety, Dialogue with Society, and RC in general, has been omitted.
Achieved
Mostly achieved
Further efforts required

RC Area of Activity

Occupational Healthand Safety

RC Medium-Term Plan
2006 - 2010

Achieving Zero Occupational Injury

2009 RC Action Plan

1. Promote participation by all in Hiyari-Hatto (near miss) suggestion
activities
2. Promote occupational safety and process safety risk assessment
3. Improve construction safety management

Process Safety andDisaster Prevention

Achieving Zero Accidents

1. Promote AZ Project (cultivation of safety culture, verifying andcomplying with safety rules, thorough education and training,
promotion of preventive maintenance)
2. Improve management of aging facilities (including piping)

Environmental
Preservation2010 RC Action Plan

1. Achieved full participation at some sites, now working toensure success in other sites.

1. Continue daily activity (hazard foreseeing activities,
Hiyari-Hatto (near miss) extraction activities, 5S activities)

2. Revised guideline in March 2009, now embed risk assessment
based on this new focus.

2. Practice risk assessment

3. Clarified roles and responsibilities, and educated respective
staffs about them.
1. Working on various activities to cultivate safety culture.
2. By introducing a company-wide facility management system,
the work of “transparency,” “information sharing” and building
up facility management information have all helped to improvegeneral facility management.

3. Establish AZ Project• Construct a safety education system• Enhance communications• Improve management of aging facilities (including
piping)
4. Devise emergency response training
5. Improve guidance for subcontractors’ occupational
injury prevention

Reduce energy consumption rateindex to below 85% of 1990 levels

1. Strive to implement energy-saving measures while ensuring thestable operation of each process, and aim to reduce energy
consumption rate index by 1% or more than the previous year.

Reduce greenhouse gas emissions
rate to below 80% of 1990 levels

1. Through Energy saving measures and promotion of fuelconversion, we plan to reduce greenhouse gas emissions rate by
1% or more than the previous year.

1. Greenhouse gas emissions rate has worsened by 0.5% overprevious year
A fuel conversion at the Mizushima Plant helped increase
the use of natural gas, which reduced the negative impact of
the higher emissions rate.

1. Devise and execute a plan to focus on reduction program forhigh-emission amount substances (setting a target value)

1. For sites with high substance emissions, we have created andexecuted plans for reduction. The specific substances are:dichloromethane, xylene, acetone, n-hexane, etc.
Emissions of chemicals on JCIA’s PRTR substance list
have been reduced 13%, VOC emissions have been reduced
17% over 2004 levels.

1. Each of our sites has either a zero emission ratio or a final landfill
reduction target, which they aim to achieve as part of our efforts
towards zero emissions.

1. Achieved zero emissions at 5 production sites
Final landfill at our production sites totaled 134 tons, a
reduction of 25% compared with 2008’s total of 179 tons.

1. Promote green purchasing (office supplies, etc.)

1. Green purchasing efforts are an established practice at all of
our sites.

1. Revising and Offering Support for GHS Harmonized MSDS
Improve efficiency of GHS classification and label element
editing

1. Use of GHS classification and labeling standard for MSDS
even when if not legally required. We are offering customers
GHS adapted versions in order.
We are making improvements to GHS classification andlabel element editing procedure to increase efficiency.

1. GHS support (JIS compatible) for MSDS will be
implemented by December 2010, And they will beoffered to customers.

1. Participating in 4 substance safety information programs, andproceeding as planned

1. Respond appropriately to the Japan Challenge
Program

2. Fast-track support for substances with a 2010 registration
deadline

2. Respond appropriately to the REACH regulations,
including Europe’s new CLP rules

3. Aim to promote safety assessment of new substances bycarrying out “new product risk assessment”

3. Promote safety assessment at times of new productdevelopment (eg. acute toxicity, Ames test, primaryskin irritation)

Reduce PRTR substances emissions
by 10% over 2004 levels.

Achieve Zero Waste Emissions

Offering the latest Material Safety
Data Sheet (MSDS)• Support for the Globally Harmonized
System of Classification andLabeling of Chemicals (GHS)

Product safety assessment• Participate in Japan Challenge
Program (Check existing chemicals)

1. Respond appropriately to the Japan Challenge Program• Comply with REACH regulations

3. Promote safety assessment of new products at times ofdevelopment• Assess new substances appropriately
Promote the development ofenvironmentally friendly products andenergy saving technologies

17

Evaluation

1. Energy consumption rate index worsened by 5.1% than theprevious year. We implemented energy saving measures,
which helped us achieve a 2.2% reduction in energy
consumption compared with 2008 levels; however the
economic slowdown and equipment problems resulted in aworsening energy consumption rate index.

Reduce VOC emissions
by 10% over 2004 levels.

Chemicals andProduct Safety

2009 Achievements

2. Implement REACH registration accurately

4. Promote development of products with lower environmental
burden and energy saving technologies

4. Products with an environmental or energy saving focus, suchas new technologies in soil remediation, oil pollution
detergents and high performance-damping materials.

1. By working on energy saving measures while ensuring
the stable operation of each process, we will improveenergy consumption rate index and reducegreenhouse gas emissions. (We take part in Japan
Chemical Industry Association (JCIA) activities as partof the Japan Business Federation’s Low Carbon
Society Action Plan.)

1. Identify key PRTR substances (including
pseudocumene) and VOC need to be reduced, thendevise and execute a reduction plan with specifictarget values.

1. Sites where targets have been met will continue theirefforts to further reduce final landfill.
2. Sites where targets were not achieved will set a landfill
target and strive to achieve zero emissions.

4. Promote development of products with lower
environmental burden and energy saving technologies

18Responsible Care and MGC

Occupational Health and Safety, Process Safety andDisaster Prevention
MGC’s top priority is to ensure safety, and we have a proactive approach aimed to zero accident and zero
occupational injury.

Emergency response

Safety Philosophy

As a precaution, MGC has established a disasterprevention system at each of its sites, and conducts
various drills according to the annual plan.

The top priority of our business activity is ensuring safety.
Safety is the basis of our business activity and ensuring safety is our duty to society.

Occupational Health and Safety Initiatives
In order for MGC to achieve its no accident goal, each sitemust take part in daily safety activities (Hiyari-Hatto (nearmiss) activities, 5S activities, hazard foreseeing activities,etc.), in addition to our efforts in the areas of safety training
and education for risk assessment, and measures topromote mental health.

Preventing occupational injuries at subcontractors
MGC strives to prevent work-related injuries from occurring at our
subcontractors by establishing construction safety rules, providing
information about all types of safety measures, as well as inviting themto participate in MGC-sponsoredsafety workshops. Our
subcontractors also benefit fromthe improved guidance throughmutual participation in Health
Mizushima Plant /and Safety Committee meetings. Yard work safety workshop

Process Safety andDisaster Prevention Activities
Niigata Research Laboratory /Mental health workshop

Tokyo Techno Park / Emergency
response training

To prevent the occurrence of accidents and injuries, it isimportant to ensure the safety of production processes
and the soundness of facilities. Moreover, it is critical thatthe company maintain safe operations. At each site we
conduct inspections and renewal planning for aging
facilities, and prioritize inspections, repairs and renewals
according to its (each aging facility) risk and importance.

Certified high pressure gas plants
Kashima Plant / Hazard foreseeing
training

Safety performance
In 2009 there were two occupational injuries that caused
lost time. One of them was an electric shock with after
effects (grade of disability: grade 3).
Change in lost time injury frequency rate*1
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
MGC

0.29

0.92

0.59

1.43

0.57

Chemical industry

0.90

0.88

1.10

0.84

0.72

Manufacturing industry

1.01

1.02

1.09

1.12

0.99

*1 Frequency Rate: Number of casualties of occupational injuries per one million actual
working hours

We conduct audits of our certified high pressure gas plants
under the direction of the Director in charge of environmentand safety (Process Safety Management General Controller).
Accordingly, our Niigata Plant and Mizushima Plant are “highpressure gas safety management code certified” highpressure gas plants. The aim of our audits is to objectively
evaluate the high pressure gas safety management systemand the certified inspection management framework toensure that they are working effectively.
Certified process safety management system ofhigh pressure gas process
President

0.00

0.20

0.01

0.07

2.14

Chemical industry

0.07

0.10

0.04

0.07

0.13

Manufacturing industry

0.09

0.11

0.10

0.10

0.08

*2 Severity rate: Number of lost working days per 1,000 actual working hours

19

Priority objectives and key policies
Yokkaichi Plant / Disaster drill

Kashima Plant / Joint disaster drill

Mizushima Plant / Training offire protective clothing & respirator

Yamakita Plant /Ammonia leak training

Priority objectives
Eradicate accidents and occupational injuries
Key policies(1) Cultivate a safety culture(2) Reaffirm and ensure compliance with regulations,company rules and policies concerning safety(3) Thorough education and training(4) Promote preventive maintenance2-year achievement and future activities
Since 2008, we have tried to devise activities that matchthe characteristics of each site and instill the concept of“safety culture.” However, in 2009, there were eight
accidents (including at subcontractors), so we were unable
to meet our zero accidents target.
Based on our 2-year review, from 2010 we will focus more
efforts on communications as a soft tool while continuing
to take specific actions for improvement of hardware.

Hiratsuka Research Laboratory /Fire extinguisher training

Accident and injury information sharing
MGC has a “transmissionof safety information
policy,” outlining how totake advantage of theinformation and confirm thesituation. In addition, we
share information about
any occupational injuries
and incidents (accidents,
irregularities) that occur
among our Group companies.

Tokyo Techno Park /Fire Service Act (Japan) Education

Niigata Plant / Scaffolding training
including subcontractors

Mizushima Plant /Practice in FTA course

Hiratsuka Research Laboratory /AZ education using CAI

Director in charge of environment and safety (Process safety management general controller)
Environment and safety division at Head Office (Administrative action for certified self-maintenance)
Audit on certified plant

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

MGC launched the Accident Eradication Project (AZ
Project: Accident Zero) in February 2008, in order toprevent the occurrence of serious accidents such as theone that took place at Niigata Plant in December 2007,
and to curtail the increasing tendency of such incidents.
This project is active at all of our sites.This project is activeat all of our sites.

Environment and Safety Meeting

Change in lost time injury severity rate*2
MGC

Accident Eradication Project (AZ Project)

Audit on supervisory organization
for certified facility inspection

Form of sharing safety information

Audit on process safety
management system
Certified plant

Supervisory organization forcertified facility inspection
Chief supervisor(assigned by the president)

Appropriate certified facility inspection
Confirmation of status of implementation

Act

Plan

Safety management
systemDo

CheckManagement departments
Certifiedfacility· Process safety management department
inspection · Operational management department
department · Facility management department

20

Responsible Care and MGC

Environmental Burden of Business Activities

Environmental Accounting

The overall environmental burden of our business in 2009 is displayed in the table below. Each MGC Group businesshas continued to make headway in making efficient use of the input resources and making reductions in theenvironmental emissions.

Using the Ministry of the Environment’s guidelines on environmental accounting, the cost of environmental
preservation through MGC’s business activities and the result of those activities have been calculated
quantitatively, and published for the public’s review.

Total of MGC Group*1

Environmental Preservation Cost

MGC Stand Alone*2

FY 2008

FY 2009

FY 2008

FY 2009

Number of production sites: 38

Number of production sites: 39

Number of production sites: 8

Number of production sites: 8

Units

2008

2009

Energy consumption(crude oil equivalent)

1,000 kℓ

628

593

Water consumption

1,000 m3

44,57045,420

2

2

Tap waterIndustrial water

INPUT

Tap water

Breakdown

%

Units

2008

2009

Energy consumption(crude oil equivalent)

1,000 kℓ

531

493

Water consumption

1,000 m3

39,60040,475

%

1

1

%

58

57

Groundwater

%

1

1

INPUT

Industrial water

%

59

58

Groundwater

%

3

3

River water

%

34

34

River water

%

38

38

Others%2

3

Others%2

3

OUTPUT

Units

2008

2009

Emissions to atmosphere

Breakdown

OUTPUT

Units

2009

Emissions to atmosphere

Greenhouse gas emission(CO2 equivalent)k tons

1,577

1,364

Greenhouse gas emission(CO2 equivalent)k tons

1,334

1,161

SOx emissions

tons

393

263

SOx emissions

tons

280

174

tons

863

680

tons

60

15

NOx emissions

tons

956

744

NOx emissions

Soot and dust emissions

tons

72

24

Soot and dust emissions

Released to water area

Investments
The total investment in 2009 was 990 million yen. The
main items of that investment were the enhancement oftank vent gas recovery facilities at the Mizushima Plant,
and enhancement of the exhaust gas treatment facilities at
the Kashima Plant.

Expenses
Total expenses in 2009 were 10.22 billion yen. Of these,
the highest expense was 3.48 billion yen for research anddevelopment, accounting for 34% of the total. Representing
23% of the total, the second largest expense was 2.34
billion yen being for environmental preservation activities.

Drainage volume

1,000 m3

37,31037,785Drainage volume

1,000 m3

33,78934,263

COD emissions

tons

300

261

COD emissions

tons

250

226

Total nitrogen emissions

tons

278

299

Total nitrogen emissions

tons

252

273

Total phosphorus emissions

tons

54

71

Total phosphorus emissions

tons

51

68

Breakdown

tons

34,41033,164

Transfer to off-site

tons

7,634

7,392

Final landfill

tons

3,508

1,678

Final landfill

tons

179

134

Notified substances under PRTR Law
tons

1,188

1,166

Emissions (Air)

tons

167

190

Emissions (Water)

tons

49

46

Emissions (Water)

tons

39

38

Emissions (soil)

tons

0

0

Emissions (soil)

tons

0

0

Transfers

tons

693

741

Transfers

tons

323

342

*1 The data used for the total of MGC Group is the sum of the main domestic manufacturing and processing businesses.
*2 The former Tokyo Techno-Center is included in the number of MGC’s stand-alone production sites

Greenhouse gas emissions were reduced in FY2009
compared with FY2008. The results are shown on theenvironmental burden of business activities page.

Economic benefit
We generated additional revenue by selling valuable waste
for recycling and re-use by other companies, and by costsavings from reduced energy consumption.
Economic benefit
Title

Amount(millions of yen)

Item

IncomeCost saving

86

Profit on sale ofvaluable waste

Effect by energy saving

418

Main areas of activity

ExpenseInvestment(millions of yen) (millions of yen)

Renewal, repairs and maintenance of emission gas scrubber, etc.

391

651

Water pollution prevention

Renewal, repairs and maintenance of waste water treatment
facility, etc.

207

2,060

Soil, Noise

Prevention of soil infiltration, odor control, and groundwater levelmeasurement

36

11

Global environmental preservation cost

Maintenance of cogeneration facilities, reducing energy loss

40

2,343

Resources recycling costMaterial and thermal recycling of waste

13

894

Up or down stream cost

Retrieval and reuse of product container

036Management activity cost

Maintaining green spaces, maintaining environment management
systems

25

612

R & D cost

Development of energy-saving technologies and environmentallyfriendly products

282

3,487

Social contribution cost

Greening the surrounding area, and supporting crusades against
illegal dumping, etc.

010

Environmental damage costCompensation for environmental preservation

0

125

992

10,229Onsitecost

Pollution
prevention
cost

Notified substances under PRTR Law

Emissions (Air)

Environmental preservation benefit

Air pollution prevention

Generation of waste

Transfer to off-site

Apart from the reduction in environmental burden that
resulted from our environmental preservation efforts, there
were positive economic benefits, too, such as cost savings.

Environmental preservation cost (Breakdown of investment and cost by business)

Released to water area

Generation of waste

21

2008

The cost of environmental preservation activities includes
the investment costs of installing environmental preservation
facilities and the expenses associated with running andmanaging those facilities as well as the cost of researchand development into environmentally friendly products.

Benefits of Environmental
Preservation Activity

Total* Compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005
Period: From April 1, 2009 to March 31, 2010
Range: MGC only
Methods: Investments are proportionally related to the approved or enforced amount of capital expenditure to environmental preservation. Expenses areproportionally related to the ratio of environmental preservation. This includes depreciation allowance.

22

Responsible Care and MGC

Global Warming Prevention
Each sector—manufacturing, transportation, office and residence—is making efforts to prevent global warming.

Energy conservation measures in 2009

MGC’s Overall Performance
In FY 2009, MGC’s total energy consumption andgreenhouse gas emissions were as follows. In both cases,
our manufacturing plants accounted for more than 97% of
the total.

Manufacturing sector
Office sector
Transportation sector (shipper)
Total business activities

Energyconsumption
3(10 kl—crude
oil equivalent)Greenhouse gas
emissions(k tons—
CO2 equivalent)

493.3

1160.6

2.0

3.3

9.1

24.2

504.3

1188.1• Improved thermal efficiency by installing Exhaust
Gas Re-burning System• Reduced steam vapor by improving distillation

tower efficiency• Improved yield and extended catalyst life throughcatalyst modification• Energy reduction through optimized operating
conditions

Trend of energy consumption amount and consumption
rate (Plants)
Energy consumption amount

Focusing on the manufacturing operations, the results for
FY 2009 and targets for FY 2010 are as follows.
Energy consumption rate index
Result: 1.00 compared to FY 1990
(Target: 0.85 or less by FY 2010)
Greenhouse gas emissions rate index
Result: 0.84 compared to FY 1990
(Target: 0.80 or less by FY 2010)

Amount(103 kl as crude oil)

1,200

1,000 1.00
800
600
400 430

Energy consumption rate
Target of rate in FY 2010
Energy consumption rate index(FY 1990=1)

1.2

0.99 0.93 0.88 0.87 0.89 0.89 0.95 1.00 1.0
0.8

550 544 554 569 562 577 531 493

0.6
0.4
0.2
0

200
0

1990

2002 2003 2004 2005 2006 2007 2008 2009

(FY)

Trend of GHG emission amount and emission rate (Plants)

Manufacturing Plant Initiatives
Through various efforts to conserve energy and convert tonatural gas, we are working towards reductions inGreenhouse gas (GHG) emissions in the manufacturingsection of our plants.
In 2009 energy consumption and GHG emissions were
substantially lower than the previous year, although thiswas partly due to decreased production. GHG emissions,in particular, were 13% lower thanks to the fuel conversion
to natural gas (LNG) at the Mizushima Plant. This resulted
in lower emissions than in FY 1990.
However, the energy consumption rate—as part of ourglobal warming prevention target—was approximately 5%
worse than the previous year, while the GHG emissions
rate was 0.5% worse.
One of the energy conservation measures undertaken
in 2009 can be seen in the following cases, in which weachieved an energy reduction equivalent to 12,000 kl ofcrude oil (GHG emissions were reduced by 20,000 tons ormore). One of the best examples came from the Mizushima
Plant, where Exhaust Gas Re-burning System is expected
to contribute significantly to an improvement in energy
efficiency once the utilization rate improves.

Emission amount (k ton)

Emission rate index

GHG Emission amount(k ton)3,600

Target of rate in FY 2010
GHG Emission rate index(FY 1990=1)

1.2

3,000 1.00
2,400

0.98

1,800
1,200 1,184
600
01,564 1,541 1,536 1,562 1,560 1,490 1,334

0.91 0.86 0.83 0.87 0.82 0.83 0.84 1.0
0.8
0.6

In Niigata Prefecture, MGC has been actively conducting
exploration and development work of natural gas, a clean
fuel that has low emissions of CO2 for each calorie ofenergy, less sulfur and other impurities. We have deployed
natural gas at our Niigata Plant, where it is used as both araw material and an energy source.
Also, at other plants, we are promoting fuel conversion fromcoal and heavy oil to natural gases (including city gas, LNG).
In 2009, due to an increase in the use of LNG at
Mizushima Plant, the use of energy derived from natural
gas topped 50% company-wide.
In addition to using natural gas, we are also
participating in a project in Hachimantai, Akita Prefecture,that supplies geothermal steam—a type of renewableenergy—to neighboring powerplants.

100

0

5.6%
30.3%

6.4%
28.2%

64.1%

65.4%

100
0

2006

2007

2009 (FY)2008

Trend of CO2 emission
By railBy truck

By ship

CO2 emission rate index

CO2 emission(k ton)CO2 emission rate index(FY 2006=1)

50

1.2

1.00

0.98

0.99

0.97

40

1.0
0.8

1.9%
68.0%

2.1%
68.1%

30.1%

29.8%
2007

0.6

2.2%
64.6%

2.6%
60.7% 0.4

33.1%

36.7%

2008

0.2
0

2009 (FY)

Activities in the Office and Employee
Residence Area

40

10

62.0%

200

2006

50

(FY)

62.2%

300

0

60

Actual emission coefficient from the Act on Promotion of Global WarmingCountermeasures (Japan) is adopted as CO2 emission coefficient of purchased electricity.

5.3%
32.7%

400

10

70

20

By ship

4.7%
33.1%

500

20

80

0.2
0

By truck

600

30

90

30

2002 2003 2004 2005 2006 2007 2008 2009

Steam purchased
Power purchased
By-product fuelOther fuel purchased
Coal
Heavy oil
Natural gas

Energy source component ratio(%)

By railVolume of transportation(million ton km)

60

Trend of energy source component ratio

1,161 0.4

1990

Trend of volume of transportation

Development and Utilization of Clean Energy

2004

2005

2006

2007

2008

2009 (FY)

Initiatives in the Transportation Sector
In the transportation sector (freight transport as a shipper),
we are endeavoring to reduce energy consumption byusing larger trucks and through a modal shift to railtransportation.
With regard to the modal shift, proportion of railtransportation has increased from 4.7% to 6.4% overthese four years, while over the same period transport bytruck has decreased from 33% to 28%.
These measures have contributed to CO2 emissions
rate index reduction of approximately 3% over four years.

We conduct a number of proactive measures to reduceenergy consumption at our head office and laboratories
These include Cool Biz during summer, Warm Biz during
winter, and turning off lights and computers when not in use.
At the Tokyo Techno Park, which opened in October
2009, the main building has adopted a new high-performance
air conditioning, lighting, and insulation, which are expected
to lead to significant energy savings.
In the residence sector, we participated in the ABC(Accelerate By Chemicals) Initiative which is a voluntary
CO2 reduction activity promoted by the Japan Chemical
Industry Association (JCIA). In 2009, more than 500
volunteers participated in it. They achieved an average
CO2 reduction of nearly 2 kg per person (per family),amounting to over 300 tons in total.
We are encouraging all our employees to participate itin this year again.

Mizushima Plant / Exhaust gas re-burning system

23

24

Responsible Care and MGC

Chemical Emissions

Waste Reduction

We continue to make efforts to reduce emissions of Pollutant Release and Transfer Register (PRTR) law specified
substances and Volatile Organic Compounds (VOC). The numerical targets for these reductions are set out in our
Responsible Care medium-term plan.

MGC defines its zero emissions as “Reduce final landfill to 0.3% or less to total generated waste amount throughpromotion of 3Rs*”

PRTR Law Specified Substances

PRTR Substances on the JCIA List

Waste Reduction Achievements

Zero Emissions of Waste

There are 354 substances listed in the PRTR law. In
adherence with this law, MGC made notifications for 45
substances in FY 2009.
Total annual emissions were 228 tons, an increase of
22 tons (11%) over the previous year.
Transfer was 345 tons, an increase of 20 tons (6%)
over the previous year.
These results are mainly due to a production rise inassociated with PRTR emissions.

The Japan Chemical Industry Association (JCIA) lists 481
PRTR substances voluntarily, which include PRTR law
chemicals. Of these, MGC has released 75 substances in
FY 2009, resulting in total annual emissions of 441 tons.
This was an increase of 38 tons (9%) over the previous
year, however according to our Responsible Care (RC)medium-term plan, it was a reduction of 13% comparedwith our benchmark year, FY 2004, in which 507 tons
were emitted.

In FY 2009, total final landfill continued to fall, and was 134
tons. The increase experienced in FY 2007 was due to
one-off sludge and soil waste of 285 tons.

In FY 2009, five of our eight production sites keep zero
emissions. The total emissions at the eight production sites
also achieved the target.

Volume (tons)

500
400

46

45
436

346 351300

In terms of VOC in FY 2009, from highest to lower
emissions we had: dichloromethane, methanol, xylene,
methyl ethyl ketone, etc. There were 21 substances intotal, with an emission of 369 tons, an increase of 44 tons
(14%) over the previous year. Out of the four listed above(except methanol), the increase in emissions is due toincreased production.
Comparing this with our RC medium-term plan, there
was a reduction of 17% over our benchmark 443 tons of
FY 2004.

Number of substances

45

283

41

393

325
243

200

206

45

50
40

345
228

30
20

100

10

0

0

2005

2006

120

2007

2008

2009 (FY)Generated

110.8

94.2

98.5

41.5

29.7
7.9

11.0

0

2005

2006

26.2
8.2
2007

Plants achieved zero emissions in fiscal 2009

Recycled

93.980Volatile Organic Compounds (VOC)

Number of substances

Transfer

Trend of waste generation, recycling and transfer(tons / year)

40

Trend of the chemicals on PRTR list
Emission*3Rs: Reduce, Reuse, Recycle (of waste)

29.1
7.6
2008

88.5

2009 (FY)(tons)

Niigata Plant

0.16%

0.18%

Mizushima Plant

0.05%

0.07%

Yamakita Plant

0.14%

0.01%

Naniwa Plant

0.09%

0.05%

Saga Plant

0.00%

0.00%

Total of 8 production sites

0.19%

0.15%

Zero emissions : 0.3% Final landfill÷Waste generated

Final landfill(tons / year)

600

Polychlorinated Biphenyl (PCB) Management

541

516

400

293
179

200

2005

The registered chemicals on the basis of the PRTR Law (results in FY 2009)

FY 2009

25.9
7.4

134

0

* The previously reported total transfer amount for FY 2008 has been corrected.

FY 2008

Transferred

2006

2007

2008

2009 (FY)We take special precautions in the storage management of
PCB-contaminated equipments, in accordance with the
PCB Waste Disposal Act.
We completed early disposal registration with theJapan Environmental Safety Corporation in 2006, but nodisposal was carried out in FY 2009.

Actual Results of Waste Treatment in Fiscal 2009

FY 2009
No.

ChemicalsReg. No

Emission amount
Air

Soil

Total

Recycled amount
20,779 tons
(23.4%)

Transfer total

1

145

Dichloromethane

144.7

0.0

0.0

144.7

2

283

Hydrogen fluoride and its water soluble salt

0.3

32.8

0.0

33.1

0.1

3

63

Xylene

24.7

0.0

0.0

24.7

5.8

4

227

Toluene

8.3

0.0

0.0

8.3

35.8

5

40

Ethylbenzene

5.0

0.0

0.0

5.0

0.0

6

304

Boron trifluoride and its compounds

0.1

2.9

0.0

2.9

1.2

7

224

1,3,5-Trimethylbenzene

2.2

0.0

0.0

2.2

36.7

8

310

Formaldehyde

0.2

1.6

0.0

1.8

5.2

9.6

9

42

Ethylene oxide

1.3

0.0

0.0

1.3

0.0

10

217

Trichlorofluoromethane (CFC-11)

1.1

0.0

0.0

1.1

0.0

11

299

Benzene

0.7

0.0

0.0

0.7

0.0

12

253

Hydrazine

0.2

0.3

0.0

0.5

0.0

13

266

Phenol

0.0

0.4

0.0

0.4

11.2

14

320

Methylmethacrylate

0.3

0.0

0.0

0.3

54.3

15

312

Phthalic anhydride

0.2

0.0

0.0

0.2

42.7

16

54

Epichlorohydrin

0.2

0.0

0.0

0.2

0.4

17

108

Inorganic cyanide

0.0

0.1

0.0

0.1

0.0

−

−

Other chemicals

0.2

0.2

0.0

0.1

141.8

189.8

38.2

0.0

228.0

344.6

Total (45 chemicals)

25

Water

Reduced amount
60,375 tons
(68.2%)

Waste generated
88,459 tons
(100%)

On-SiteRecycled amount
5,129 tons
(5.8%)

Reduced amount
2,139 tons
(2.4%)

Transferred outward
7,392 tons

Internal landfill
0 ton
(0%)

Off-Site

Final landfill
134 tons(0.2%)

26

Responsible Care and MGC

Air, Water, Water Resources
To protect the environment’s air and water resources, we follow every relevant law and regulation, and comply with
their respective limits to reduce any pollution and contamination.

Prevention of Air Pollution

Prevention of Water Pollution

We measure the emissions of sulfur oxides (SOx), nitrogenoxides (NOx), soot and dust, and other toxic substances,
contained in the emission gas of boilers and othercombustion facilities, to ensure that we stringently adhere
to regulated limits through our operations.

Wastewater from the production process goes through atreatment facility where it is pH balanced and treated for
microorganisms before being sent into rivers, seas, andsewerage systems. We are committed to operating incompliance with regulations for wastewater by ensuringthat chemical oxygen demand (COD), total nitrogen, total
phosphorus, pH and other chemicals are within tolerance levels.
COD and total nitrogen emissions were revised toreflect a correction of the past results.

Emission of SOx(tons / year)

600

409

400

412
278

280

300

0

2007

MGC’s Environmentally Friendly Products and Technologies

2009 (FY)

2008

269

289

MX nylon resin
Iupilon® (Polycarbonate)
Reny® (Polyamide MXD6)
Plastics
Iupital® (Polyacetal)
Iupiace® (Modified polyphenylene ether)

256

250

200

OR-SON AT

226

F-SON
Water
treatment
agents

918

948

927

863

2006

2007

2008

2009 (FY)

Deslime®, Contlime®

Emission of total nitrogen

680

DEOPOWER(tons / year)

400

600

0

2005

2006

2007

2009 (FY)2008

Emission of soot and dust

400

AGELESS®

414

353

AGELESS OMAC®

284

200

252

273

Betterpreservation
ability

90

76
42

RP System®
PharmaKeep®

(tons / year)

60

NEOSOLNEOPOCK

0

2005

49

0

2005

60

2006

2007

2008

AIR-G

2009 (FY)

Dimethyl ether (DME)

Emission of total phosphorous

30

15

Contribution to Environmental Preservation
Non chlorinated resin with high gas barrier capability, contributing to easy
recycling and energy savings through weight saving of plastic bottle
Resin with excellent transparency, durability and weatherability, used for various
purposes, contributing to resources savings
Mainly used for side mirror stay of vehicle, contributing to the energy saving by
light weight property
Resin with excellent mechanical properties and used as the substitute for metals
in various purposes
Resin mainly used for office automation equipment, contributing to the energy
saving for its light weight property
Contributing to smaller and lighter electronic office equipment on the basis ofexcellent heat resistanceDiafresh® series (wastewater treatment)(tons / year)

1,200

Products/Technologies

AI polymer® (Polyamideimide)

100

Emission of NOx

800

Field

(tons / year)

174
2006

Under the principles of sustainable development, we are working aggressively to develop products andtechnologies that help energy and resource conservation, low environmental burden and reduction of waste.

Emission of COD

200

2005

Environmentally Friendly Products andResearch and Development(tons / year)

Agent making persistent organic materials decomposable and drasticallyreducing the generation of sludge
Agent for separation and treatment of fluorine compounds, which can easily
reduce the fluorine content to 8 ppm or lessAgent to prevent the oil-base paint mist from adhering and to make easy therecovery of dispersed paint in the recycled water in a painting boothChemical agent for effective aggregation and separation of water-based paint,water soluble polymer, etc.
Water treatment agent for recycled cooling water in piping aiming both thecleaning and long-life of said water, and high thermal efficiency
Deodorant agent to solve the issue of bad odor at sewage-treatment plant, etc.
Agent keeping quality and freshness in food sector and, as a result, reducing
waste of foods and promoting efficiency of production and distribution
New packaging film with an oxygen absorbing ability, can act as an alternative tocanned foods, contributing to weight saving and waste reduction
Oxidation and corrosion resistant system for metals and electronic parts,
contributing to reduction of waste
Agent keeping quality and performance in medicines and medical device, andimproving their shelf life
Eco-friendly system for insect proof and preservation of cultural property, used as
the substitute for methyl bromide referred to as ozone layer depleting substance
Application of clean fuel DME made from natural gas to the automobile fuel, etc.

Materials for environmentally friendly
printed circuit board

Substitute for bleaching agents containing chlorine, used in a pulp and paper
production process
Reduction of solvent by applying it to non-solvent epoxy resin (two liquid type)because of its lower viscosity
Research and development of methanol fuel cell which enables direct electricity
generation without fuel reforming into hydrogen.
Under test of introduction as a power supply for welfare electric vehicle
Heat resistant materials for printed circuit board, suitable for lead-free solder.
Printed circuit board without brominated flame retardant

Persulfates

Cleaning up contaminated underground water and soil

Mild Fenton method

Soil/underground water clean up technology that decomposes organic substances
under neutral conditions in combination with hydrogen peroxide and catalyst

Production process of aromatic aldehydes

Reduction of harmful waste by the completely closed process of super acid catalyst

40,000MGC-MH process

Process for the production of high purity hydrogen gas from methanol and water

20,000

Geothermal power generation

Application of geothermal steam to electric power generation

AR

Capacitor mainly consisted of AR(carbon) and aluminum is the electricity storage
system with benefit of long life and less harmful materials

Neofade® (damping material)

High performance damping material, preventing vibration and noise

90

0

2005

2006

2007

2009 (FY)2008

Chemicals

73

74

60

71

68

GASKAMINE 240®

5130

Effective Use of Water Resources
We are committed to understanding and efficiently using
water resources.

Development of fuel cell

0

2005

2006

2007

2008

2009 (FY)

Water use / wastewater volume(103 m3)

Water consumption

Wastewater volume

Technologies,
etc.

60,000

0

2005

2006

2007

2008

2009

Hydrogen peroxide(FY)

Mizushima Plant activated sludge treatment equipment27

28

Responsible Care and MGC

Safety Management of Chemicals and Products
MGC clearly explains properties, safety and handling of its chemical products, as well as deploys various activities
to protect the environment, and to ensure the health and safety of all who use it. Additionally, MGC participates indomestic and international chemicals safety assessment activities which publicly disclose chemicals safety information.

Safety Assessment of Chemical
Substances and Products
MGC has established regulations for product safetyassessment and operates a system that ensures productsafety. The company makes its products available only
after it has reviewed a product’s marketability by analyzing,classifying, and assessing product hazard (hazardous
nature of the material) and risk (hazard and exposure) at
each step of the production process, beginning with abasic survey of raw materials through marketing (supply) tofinal disposal of the product.

Participation in the Japan Challenge
Program* HPV Program: HPV (High Production Volume Chemicals): A safetyassessment program covering production of chemicals greater than 1,000
tons annually in a single country.

Compliance with REACH Regulations
With the implementation of the new European Chemicals
Management Regulations “REACH (Regulation concerning
the Registration, Evaluation, Authorization and Restrictionof Chemicals)”, MGC and MGC Group companies areadding information collected regarding import volume (inEU) and product use to their existing store of safety
information. Using the additional support required by
REACH enables them to offer users a safer way ofhandling chemical products.

•Survey of literature•Access to MSDS of raw materials, etc.

GHS Compliant MSDS and Labels

MGC provides Material Safety Data Sheets (MSDS) tocustomers and transporters through its sales channels andagents. Products are also clearly labeled, and we provide
transporters with yellow-cards that they are required tocarry with them during the time of transportation.

MGC prepares and provides MSDSs for all of its products,
including items which are not legally required to do so.
Based on revision of Japanese Industrial Standards, MGC
is gradually shifting to new revised MSDS which arecompliant with GHS* by December of 2010. With regard to
the label, all of MGC’s product labels will be GHS
compliant by the end of March 2011.

Safety assessment•Hazard assessment•Assessment of environmental safety impact* GHS: The Globally Harmonized System of Classification and Labeling ofChemicals. Hazards of chemicals are classified under certain standards
and are indicated clearly with pictograms on labels and MSDS
documentation. Ultimately, the information contributes to disasterprevention, human health, and environmental preservation.

Hazard classifications•Survey of applicable laws
• United Nations classifications• Classifications in Japan

Preparation of safety information• MSDS•Warning label of products•Yellow-Cards
GHS compliant product labels

Premarketing investigations•Assessment of risk management•Judgment of marketability

Hazard pictograms

Product supply• Collection of customer information• Compliance with applicable laws
•Rationalization of product logistics

GLP Certified Testing Facility
MGC operates Good Laboratory Practice (GLP) certified testing facilities at its Niigata
Research Laboratory for biodegradability testing and mutagenicity (Ames) testing, which
complies with legal notifications based on the Act on the Evaluation of Chemical Substances
and Regulation of Their Manufacture, etc. and the Industrial Safety and Health Law.
In addition to these tests, MGC also has facilities to conduct acute oral toxicity
tests, primary skin irritation tests, and pathogenicity tests, and carries out safety
testing of chemicals handled within the MGC Group.
* GLP (Good Laboratory Practice): GLP is a system which ensures the reliability of test results, through government recognition of excellent testing
facilities that have GLP standards-based management, test facilities, test planning, internal auditing systems, reliability assurance systems, and thatare compliant with test result standards.

29

Providing Safety Information

Customer information

The Japan Challenge Program is a program in which thegovernment works in conjunction with industry to accelerate thecollection of safety information for existing chemical substances,and disseminates that information widely to the public.
Of these substances, there are 126 organic compounds
produced in Japan and imported in quantities greater than
1,000 tons per year that are either not contained in the
Organization for Economic Cooperation and Development(OECD)’s HPV Program* or there is no plan to collectinformation for them in other countries. MGC is committed
to this program, and is contributing by collecting safety
information about four substances.

Basic survey

Exploding
bomb

Flame

Flame overcircleExclamation
mark

Skull andcrossbones

Gas cylinder

Corrosion

Health hazard

Environment

GHS compliant MSDS

Emergency Response in Distribution
MGC requires all transporters to carry yellow cards in theevent of an accident that occurs during producttransportation. We have set up a wide-area support systemthat includes supplying emergency goods and equipment
to production sites and establishing communication
between sites so that there can be an emergency responseto accidents that occur during transportation. Because of
our materials and equipment, and our response system
preparation, we are able to assist local police or fire
departments on request if an accident occurs duringtransportation of the other companies’ product in thevicinity of our plant.

Yellow-Cards

Wide-area support vehicles carrying
emergency goods and equipments

30Responsible Care and MGC

RC Activities on Site

Niigata Plant

Address: 3500 Matsuhama-cho, Kita-ku, Niigata-shi, Niigata 950-3121, Japan
Tel: +81-25-258-3474
Main products

A Message from the Niigata Plant Manager
Surrounded by beautiful greenery and abundant water andnatural resources (natural gas), it is our mission to ensure that
the Niigata Plant maintains good relations with the local
community and coexists in harmony with nature.
Since the start of operations more than fifty years ago,
we have worked to build trust in our environment, safety andproduct quality improvement efforts while upgrading our
infrastructure. We also aim to create new value by developing
environmentally friendly products in the fields of polymers,
energy and life sciences.

Mizushima Plant

ISO14001 certification

Takuji Shitara

ISO14001 certification dateCertification body

June 1998

DNV

Environmental burden data (FY 2009)
Water consumption (103m3)

12,481

GHG emission (k tons-CO2)

367

NOx emission (tons)

283

SOx emission (tons)

0

Total drainage volume (103m3)
Waste transferred offsite (tons)

Ethylene oxide

Technical High School students on a Plant tour

The Niigata Research Laboratory is located in the northernpart of Niigata city. We cooperate with our neighbor, theNiigata Plant, in a variety of RC activities. At this laboratory wehave GLP compliant facilities for a wide variety of chemicalsafety testing, and play an important role within MGC to
conduct the whole company’s chemical safety assessments.
We aim to maintain good relations with our local community,and develop new products that contribute to the formation ofa recycling-based society, with the participation of all.

Fire extinguisher training

Executive Officer
Plant Manager

0.7

6.9

0.3

54.2

Main research themes•Process improvement•Catalyst•Pharmaceutical intermediates•New energy-related research•Biotechnology•Life science

Takafumi Abe

Laboratory Director

JCQA

Environmental burden data (FY 2009)
Water consumption (103m3)

12,432

GHG emission (k tons-CO2)

519

NOx emission (tons)

361
171
11,065140

Waste transferred offsite (tons)

2,997

Final landfill (tons)
PRTR substanceParticipation in the Takahashigawa River
watershed clean-up

Hiratsuka ResearchLaboratory

23
Emission (tons) Transfer (tons)

Xylene24.7

5.7

Hydrogen fluoride andits water-soluble salt

33.0

0.0

Ethylbenzene

4.9

0.0

Address: 6-2 Higashiyawata 5-chome, Hiratsuka-shi, Kanagawa 254-0016, Japan
Tel: +81-463-21-8600

Message from the Research Laboratory Director
At the Hiratsuka Research Institute, we have implemented
several activities to help increase our safety awareness. Firstly,
we have set a monthly goal of one Hiyari-Hatto (near miss) for
each staff member. We also conduct pre-experiment safety
reviews, risk assessment, and a safety patrol. In addition, we
ensure that the employees of each department are involvedin training exercises to prepare them to respond to potential
industrial accidents, hazardous material leaks and earthquakes.
The institute, located inside the Yahata industrial complex, iscommitted to working closely with neighboring MGC Group
companies or others to ensure safety.

Main research themes•Specialty plastics•Transparent heat resistant film
•Packaging materials•Resist materials

Toshiya TakagiLaboratory Director“The fear of fire and explosions” learning experience
Hiratsuka City Deputy Mayor on tour

31

Certification bodyMay 2000

COD emission (tons)

0.0

Methyl methacrylate

ISO14001 certification date

Total drainage volume (103m3)

2,402

Dichloromethane•Xylene isomers•m-Xylene derivatives•Specialty aromatic products•Polyols

SOx emission (tons)

9,489

Address: 182 Tayuhama Shinwari, Kita-ku, Niigata-shi, Niigata 950-3112, Japan
Tel: +81-25-259-8211

Message from the Research Laboratory Director

Kenji Inamasa

Emission (tons) Transfer (tons)
1.2

Main products

ISO14001 certification

85

Final landfill (tons)
PRTR substanceAt the Mizushima Plant, we have several themes aimed at forenvironmental preservation. These include: “promotion ofrational use of energy,” “reduce emissions of harmful air
pollutants,” “reduce emissions of water pollutants,” and“promotion of reduced waste and zero emissions.”
In recent years, we have seen the positive impact of fuelconversion to natural gas, the installation of energy-efficientboilers and turbines, and implementation of improved emission
gas recovery equipment. In FY 2010, we plan to make
improvements to our facilities that will reduce fluoride emissions.

33

BOD emission (tons)

Niigata ResearchLaboratory

A Message from the Mizushima Plant Manager•Methanol, Ammonia, and theirderivatives•Methaxylene diamine•MX Nylon•Bio-related productsPlant Manager

Address : 3-10 Mizushima Kaigan Dori, Kurashiki-shi, Okayama, 712-8525, Japan
Tel: +81-86-446-3822

Hiratsuka area small-scale emergency training

32

Responsible Care and MGC
RC Activities on Site

Yokkaichi Plant

Address: 4-16 Hinagahigashi 2-chome Yokkaichi-shi, Mie 510-0886, Japan
Tel: +81-59-345-8800
Main products

A Message from the Yokkaichi Plant Manager
The Yokkaichi Plant is located in the northern part of Mie
Prefecture, surrounded by the natural beauty of Ise Bay and theSuzuka Mountains. The formerly polluted town has changed
dramatically due to the establishment of basic environmental
regulations, environmental planning as an environmental
protection city. In response to these local initiatives the Yokkaichi
Plant also received ISO14001 certification, changed boiler fuelto city gas, and has worked on environmental risk assessment.
We will continue to protect the living conditions in thearea and promote activities that will help MGC enhance trustin the local community.

Kashima Plant•Hydrogen peroxide, Other industrial
chemicals•Polyacetal plastics
ISO14001 certification
ISO14001 certification dateCertification body

August 1999

JQA

Environmental burden data (FY 2009)

Yoshihiko Sekine

Plant Manager

Water consumption (103m3)

7,364

GHG emission (k tons-CO2)

77

NOx emission (tons)

22

SOx emission (tons)

2

Total drainage volume (103m3)

Address: 35 Higashi Wada, Kamisu-shi, Ibaraki 314-0102, Japan
Tel: +81-299-96-3121
Main products

A Message from the Kashima Plant Manager
The Kashima Plant, located in the Kashima Eastern Industrial
Complex, is surrounded by the Pacific Ocean to the east, andTonegawa River to the west. Typified by the spreading riverside
region, nearby are Itako and Kasumigaura, and Mt. Tsukuba canbe seen in the distance here in this naturally rich environment.
The factory’s basic business philosophy is taken from MGC’senvironment and safety policy of “No accidents, no occupational
injury, and environmental preservation.” Through a variety of RC
activities we have garnered the trust of everyone in the area, andwe strive to create a plant that contributes to society.

•Hydrogen peroxide•Polycarbonate plastics
ISO14001 certification
ISO14001 certification dateCertification body

February 1999

JQA

Environmental burden data (FY 2009)

Katsushige Hayashi
Executive Officer
Plant Manager

Water consumption (103m3)

1,609

GHG emission (k tons-CO2)

160
4

NOx emission (tons)0

SOx emission (tons)
Total drainage volume (103m3)

5,834

1,479

COD emission (tons)

15

COD emission (tons)

29

Waste transferred offsite (tons)

387

Waste transferred offsite (tons)

531

Final landfill (tons)

11

4

Final landfill (tons)
PRTR substance

PRTR substance

Emission (tons) Transfer (tons)

Hydrazine

0.4

0.0

Formaldehyde

1.0

0.0

Emission (tons) Transfer (tons)

Dichloromethane

144.0

2.6

Toxic substances leakage drill
Plant disaster prevention activity

Yamakita Plant

Address: 950 Kishi Yamakita-machi, Ashigarakami-gun, Kanagawa, 258-0112, Japan
Tel: +81-465-75-1111
Main products

A Message from the Yamakita Plant Manager
The Yamakita Plant, established in 1933, is nestled in thenatural environment of the Tanzawa mountains. Even after allthese years it is a unique plant in the way it exists side-by-side
with the community. We aim to further strengthen therelationship of trust with the community by striving todevelop a plant that can coexist with nature. In terms ofenvironmental preservation activities we will proactively drive
CO2 reductions and zero emissions plans. We will also
entrench process safety training through disaster prevention
based on AZ activities.

ISO14001 certification
ISO14001 certification dateCertification bodyMay 2000

JQA

Environmental burden data (FY 2009)

Kuniaki Jinnai
Plant Manager

Water consumption (103m3)

6,444

GHG emission (k tons-CO2)

21

NOx emission (tons)

4

SOx emission (tons)

0

Total drainage volume (103m3)

Safety training program by external instructors•Management Center•Oxygen Absorbers Techno Center•Electronics Materials R&D Center•Tokyo Research Laboratory
Main research topics
Electronic materials, specialty
chemicals, environmental medicine,
nanotechnology, next generationmaterials

Makoto Mizutani•MGC Chemical Analysis Center

Managing Executive
Officer
General Manager

340
0Final landfill (tons)
PRTR substance

5,238

After dismantling and removing old buildings and transforming
the property into a magnificent new tower, we opened ourTokyo Techno Park in October 2009 as an urban research anddevelopment base. There are now plans for a university anda high-rise apartment close by, and we aim at a green technopark that is in harmony with the surrounding landscape.
The first priorities in research and development areenvironmental preservation and safety. Everyone working at
the Techno Park is highly sensitive to them, and we are
steadfast in our desire to build a safety-oriented culture.

TTP internal organization

9

Waste transferred offsite (tons)

Hydrogen fluoride andits water-soluble salt

Address: 1-1, Niijuku 6-chome Katsushika-ku, Tokyo 125-8601, Japan
Tel: +81-3-3627-9411

A Message from Tokyo Techno Park General Manager•Derivatives of hydrogen peroxide•Persulfates

COD emission (tons)

33

Tokyo Techno Park

Emission (tons) Transfer (tons)
0.0

0.1

First emergency drill

Fire extinguisher training at Oxygen Absorbers
Techno Center

34

Responsible Care and MGC

MGC Group’s Environmental and Safety Activities
Twelve domestic subsidiaries of the MGC Group that handle the Group’s chemical products (as of August 2010) arepromoting environmental and safety initiatives at the MGC Group Environment and Safety Council. In addition, the director
in charge of the environment and safety carries out environmental and safety audits on domestic and overseas affiliates.

Activities of MGC Group Environment and
Safety Council
Twice each year, MGC and the member companies in the
council review the results of their environmental and safety
activities as well as their annual plans, activity results, andreports regarding accidents and occupational injuries.

Environmental and Safety Audits

MGC Group Companies Topics

With the director in charge of the environment and safety
as team leader, we conduct 3 or 4 domestic and 2 or 3
overseas environmental and safety audits each year in
support of the Group companies’ environment andsafety activities.
In 2009, audits were carried out on the following sevencompanies.
Japan Circuit Industrial Co., Ltd. Headquarters Plant
Eiwa Chemical Industry Co., Ltd. Ujitawara Plant
Toyo Kagaku Co., Ltd. Mizushima Plant
Fudow Co., Ltd. Hiratsuka Plant
Thai Polycarbonate Co., Ltd.
Thai Polyacetal Co., Ltd.
AGELESS (Thailand) Co., Ltd.

Participating in a waste reduction competitionin Fukushima prefecture (2009–2010). In
October 2009 the Fukushima Prefecture
Caravan came onto our site to boost activity.
(Electrotechno Co., Ltd.)The Osaka Plant conducted a training session
to learn regular rescue methods from Toyonaka
City fire brigade rescue personnel. 16 people
took part.
(MGC Filsheet Co., Ltd., Osaka Plant)

Participated in joint drills in the district. Ropetying, fire extinguisher training. Also
participated in putting out a fire from an oil pan,and experienced big quake inside anearthquake simulator van.
(Japan Finechem Co., Inc., Hiratsuka Plant)

Participated in the combined self-defense firebrigade indoor fire hydrant games in
September 2009. Succeeded in raising fireawareness.
(JSP Corporation, Kyushu Plant)

MGC Group Environment and Safety Council
Secretariat visits each Group plant once every
year, aiming to share activities by exchanging
environmental and safety information.
(At Japan Pionics Co., Ltd.)

Partner companies also participated inassessing electric cart risk
(Toyo Kagaku Co., Ltd., Mitake Plant)

Accident and Occupational Injury
Information Sharing
Since 2008, MGC and other Group companies have been
sharing information about all occupational injuries andincidents (accidents or irregularities) that occur.
To further strengthen information sharing, in April 2009
MGC has formulated a Group-wide policy outlining “Rules
for the Transmission of Safety Information,” andestablished mechanisms for MGC Group companies toutilize such information and check its status.

Fudow Co., Ltd. / Hiratsuka Plant

AGELESS (Thailand) Co., Ltd.

12 Member Companies of MGC Group Environment and Safety Council
Eiwa Chemical Industry Co., Ltd.

MGC Filsheet Co., Ltd.

Toyo Kagaku Co., Ltd.

Japan Circuit Industrial Co., Ltd.

Manufacture and sale of blowing agents

Manufacture of polycarbonate film and sheet

Resinous molding processing

Manufacture and sale of printed circuit boards

Daido Seimei Co. Kyoto Bldg., 595-3 Manjuya-Cho Sanjo-sagaru
Karasuma-dori, Nakagyo-ku, Kyoto-shi, Kyoto 604-8161, Japan
Tel: +81-75-256-5131
http://www.eiwa-chem.co.jp/en/

4-2242, Mikajima, Tokorozawa-shi, Saitama 359-1164, Japan
Tel: +81-4-2948-2151
http://www.mgcfs.jp/en/

51-497, Aza-Doudou, Oaza-Morowa, Togo-cho, Aichi-gun, Aichi
470-0151, Japan
Tel: +81-561-39-0531
http://www.toyo-kagaku.co.jp/

2-1236, Kamiike-cho, Toyoda-shi, Aichi 471-0804, Japan
Tel: +81-565-88-3718
http://www.jci-jp.com/

Electrotechno Co., Ltd.

JSP Corporation

Japan Pionics Co., Ltd.

Japan U-PiCA Co., Ltd.

Manufacture of copper-clad laminates

Manufacture and sale of foamed plastics

9-41, Aza-Sugiyama Oaza-Yone, Nishigo-mura,Nishishirakawa-gun, Fukushima 961-8031, Japan
Tel: +81-248-25-5000

Shin-Nisseki Bldg., 4-2, Marunouchi 3-chome Chiyoda-ku Tokyo
100-0005, Japan
Tel: +81-3-6212-6300
http://www.co-jsp.co.jp/english/

Manufacture and sale of gas purifiers andabatement system

Manufacture and sale of unsaturated polyester resinand coating resins

3-3-32 Tamura, Hiratsuka-shi, Kanagawa 254-0013, Japan
TEL: +81-46-353-8300
http://www.japan-pionics.co.jp/en/

Madre Matsuda Bldg., 4-13, Kioi-cho, Chiyoda-ku, Tokyo
102-0094, Japan
Tel: +81-3-6850-0241
http://www.u-pica.co.jp/English/

Japan Finechem Co., Inc.

Shin Sanso Kagaku Co.

Fudow Co., Ltd.

Yonezawa Dia Electronics Co., Inc.

Manufacture and sale of fine chemicals andelectronic products

Manufacture of hydrogen peroxide

Manufacture and sale of molding resin148-58, Yufutsu, Tomakomai-shi, Hokkaido 059-1372, Japan
Tel: +81-144-55-7337
http://www.sskc.co.jp/

5F, NOF Shin-Yokohama Bldg., 2-15-16 Shin-Yokohama,Kouhoku-ku, Yokohama-shi, Kanagawa 222-0033, Japan
TEL: +81-45-548-4210
http://www.fudow.co.jp/e-index.html

Manufacture of printed circuit boards,
auxiliary materials for processing

Kayaba-cho Nakano Bldg., 22-15, Shinkawa 1-chome, Chuo-ku,
Tokyo 104-0033, Japan
Tel: +81-3-3552-7611
http://www.jfine.co.jp/eng/

35446-3, Hachimanbara 3-chome, Yonezawa-shi, Yamagata
992-1128, Japan
Tel: +81-238-28-1345

36