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Unitika's 2010 Mascot Girl'3 '  Management

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Message from the President

UNITIKA Group
Corporate Social Responsibility
Report 2010

From compliance to environmental initiatives
Towards the promotion of CSR initiatives to continue being a company that is trusted by society

Specific environment initiatives that we are currently pursuing
include the development of plastics and deployment of water
treatment technologies aimed at reducing environmental load andfacilitating recycling, the development of plant-derived biomass
plastic Terramac®, and the implementation of surveys, analyticalstudies, and environmental assessments of air, water, and soil toensure environmental preservation. We are also promoting
Group-wide registration for the ISO 14001 environmental
management standards at our major facilities and Group
companies. Moreover, our main plants have converted from oil tonatural gas for their energy requirements. Clearly, in terms of bothour business and operations, we have been focusing on the mostpressing environmental issues.

Kenji Yasue
President
At the Unitika Group, we are committed to a wide range ofinitiatives targeting enhanced enterprise value and long-term
corporate growth. The basis of these initiatives is formed bydevelopment and enhancement of our business as well as byestablishing a robust cooperate structure that provides us with theability to respond to significant changes in the businessenvironment. However, we are also acutely aware of how ourbusiness initiatives are intertwined with our corporate social
responsibility (CSR), and we understand that it is absolutely
essential for a better enterprise value to establish a relationship oftrust with our stakeholders. For the Unitika Group, this approach
has always demonstrated our commitment to our corporate social
responsibility and social contributions through a variety of
initiatives. In particular, we view those initiatives related toaddressing environmental issues, ensuring legal compliance,
implementing internal audits and controls, and managing safety
and risk as areas of fundamental importance. Our CSR Office,which was established in July, 2008, is actively promoting these
initiatives under a promotion system headed by the Director in
charge and managed by full-time senior management staff.
Among the most important of Unitika's CSR initiatives are thosethat address environmental challenges. The planet's
environmental woes, together with the problem of dwindling energy
resources, constitute a common problem for humankind that needs
to be approached in an integrated manner. Concrete, national-level
responses to address these issues are underway. Spurred by theneed to respond to the currently stagnating economy, particularfocus is being given to initiatives to reduce greenhouse gases in
response to global warming and to develop alternative energy
sources and create a society committed to recycling resources in
response to increased demand for resources, mainly fromemerging nations. With these trends in international society, theCSR of individual companies is becoming increasingly more
important, and in keeping with our Group ideal of "contributing tosociety by linking lifestyles and technologies," we are pursuing a
range of initiatives in harmony with our Group business activities.

2

Message from the President

Legal compliance is a natural obligation for any company, and at
Unitika we strive to ensure that all Group Directors and employees
always demonstrate an awareness of legal compliance in the
conduct of their duties. Specifically, we instituted the Unitika Action
Charter in 2008, and later set out the Unitika Action Standards,
based on the charter. We take a variety of opportunities to ensurethat everyone in the Unitika Group is familiar with these
documents, and work via the internal compliance committee tounderstand how they are being implemented and to provide
organizational education. The Unitika Group will continue to thesekinds of initiatives in the future, and will act in a manner so as touphold the longstanding trust that we have built with our external
stakeholders since we began operations in 1889.
We promote a variety of comprehensive and systematic CSR
initiatives including the maintenance and operation of an internal
control system-a legal and standard requirement for companies;
efforts targeting the improvement of safety management standards
in a variety of situations both inside and outside the company, forexample product quality control and factory operation; and theimplementation of a risk management system to prevent the lossof trust in the company due to unforeseen events andcircumstances.
Under our new three-year medium-term management plan,"Reform 2011", which began in April, 2009, we have beencultivating eco-friendly business models as reflected by ourrecycling business, our environmental materials business, and our
reputation as a manufacturer of Terramac®. This testifies to ourmanagement vision as a good corporate citizen contributing to ahealthier environment and a more comfortable way of life. Throughsuch undertakings, we will continue our efforts to remain a trusted
corporate presence in society and to achieve our operational
goals. We will pursue these objectives based on the spirit of CSR
demanded of us as a good corporate citizen, from legal
compliance and similar matters that require detailed attention aspart of everyday corporate activities to efforts aimed at tacklinglarger problems such as how to address environmental issues.
I trust this report clarifies our commitment to the CSR initiatives
the Unitika Group is pursuing as a responsible corporate citizen,
and I welcome your support as we pursue these initiatives.

UNITIKA Group

Milestones 120 years of Unitika
1889

1950

Corporate Social Responsibility
Report 2010

1960

1970

1980

1990

2000

1889

1973

2004

Amagasaki Spinners Ltd., established.

Unitika's first Mascot Girl.
(Jun Fubuki)

Gas cogeneration facilities
introduced at Uji Plant

Amagasaki Spinners Ltd., the forerunner of Unitika, was originallyestablished with the twin aims of alleviating poverty amongst former feudal
retainers following the abolition of the feudal system and encouraging local
industry.

1989

1964

Unitika celebrates its 100th year of operation

Japanese women's volleyball team-composed
mainly of members of the Nichibo Kaizuka Women's
Volleyball Team-wins gold at the Tokyo Olympics.

Kyozo Kikuchi, who joined Amagasaki

1966

Spinners from Hirano Spinning

1998

Unitika's proprietary technologymPolylactic Refor ing
acid

ti
iza

Terramac

Unitika develops Terramac,a plant-derived biomass plastic.

Pr

Po
lym
er

Nippon Ester Co., Ltd.,established

on

ing
es s
oc

Lacticacids

Fermentation

yclingTERRAMAC'smaterial circulation system

Bio

Starch
Se

pa
ra
tio
n

1968

Biomass resources(such as corn)yPhotossnthe

isprocesTo rec

Co
mb
ustio
n
deg
radi
ng

Products

CarbondioxideWater

Temperature
Humidity
pH

2009

Light

Unitika celebrates its
120th year of operation.

Minerals

Nylon film plant completed.

Human activities, chemical reactions
Reactions caused by activities of organisms

1890

Unitika Museum

Over 30,000 people flock to public
unveiling of head office factory.

(Former head office of Amagasaki Spinners Ltd.)

1926

1969

Nippon Rayon Co., Ltd.
established.

1893

The building that housed the head office of Unitika's forerunner, Amagasaki
Spinners, was completed In 1900, ten years after the founding of the company.
It has been restored as a museum and is now open to the public. Materials fromthe company's early days and a substantial collection of photographs are on
display. As the oldest extant example of Western-style architecture in
Amagasaki, the museum is a registered cultural and historical site, and is one of
the city's popular tourist destinations.

Telephone poles and copper wire (telephone wire) installed and donated to
the Osaka Telephone Exchange.
This is said to be the reason why the area code for Amagasaki is 06(the Osaka area code,) despite the fact that the city is located in Hyogo Prefecture.

Nichibo and Nippon Rayon merge toform Unitika

What's in a name?

1907

The name “Unitika” is aportmanteau word createdfrom a Japanese rendering of
the words “United”, “Niti” (aphonetic representation of thefirst Japanese character in
the names “Nichibo” and“Nippon Rayon”) and“Company.” The name waschosen to show the strong
ties binding Nichibo Co., Ltd.,

Elementary school for childrenof workers constructed.

1918
Company name changed toDainippon Spinners Co., Ltd.
1889

1950

1960

1970

1980

Address: 1-50 Higashi-Honmachi, Amagasaki-shi, Hyogo, Japan
Opening days: Wednesdays (Irregular closing days. Please call to confirm before visiting.)
Opening hours: 10:00-12:00 and 13:00-15:00
Admission: Free
Inquiries: +81-6-6481-0525
Access: 7 mins walk, 450 m to the southeast of Hanshin Daimotsu Station

1990

2000
2001September 11 terrorist attacks.

1889

1923

1926

1960

1970

1989

1995

Meiji constitution enacted.

Great Kanto
Earthquake.

Death of Emperor Taisho. Emperor Showa
ascends the throne on December 25.

Japanese government launches
Income-doubling Plan.
(Introduction of policies to promote
rapid economic growth.)

Expo '70 held in Osaka.

Death of Emperor Showa. Emperor
Heisei ascends the throne on January 8.

Great Hanshin Earthquake
strikes Kobe.

1914
Outbreak of First World War

3

Milestones 120 years of Unitika

1941
Pacific War breaks out

1973

1990

1998

2008

1973 oil crisis

Reunification of Germany

Nagano Olympics held

Lehman Brothers bankruptcy.

1991First Gulf War breaks out. Collapse of Japan's asset price bubble.

UNITIKA Group

Activity Fields
1889

Corporate Social Responsibility
Report 2010

1950

1960

1970

1980

1990

2000

Amorphous metal fibers

Glass fibers
Direct melting method(cooperation with UMM)

Fire-resistant screens
Activatedcarbon sheet
RFC sheet

Activated carbon
fiber(pitch yarn)
Retroreflective cloth

IC cloth

Advanced
Materials

Railcar light cover
Glass clothMeta-aramid fiber
Benzoate fiber

PVA Fiber
Rayon fibers

Cotton spinning

Polyester fibers

Nylon fibers

Silmie 5

Dinkam(highly moisture proof)

Hygra

Terramac(Biomass
material)

Nylon film(simultaneously
biaxially oriented)
Spunbond
nonwoven fabrics

Eleves(composite
sheath and core)

U Polymer(Polyarylate)

Spunlace

Spherical
phenol resin

Unitika began life as a spinning company at the start of Japan's modern industrial
boom. In the century of history since being established, Unitika operations have
expanded at an unprecedented rate. The fields of spunbond, film, resins, and glass
fibers all stem from polymer and fiber technology. Unitika has also been involved in
the medical and biomedical fields as a result of the advanced polymer technology,
and later expanded to the health supplement industry. Initiatives in theenvironmental business field really took off in the 1970s, but can be traced all theway back to the time the company was established when Unitika began treating
wastewater from its factories. Adjusting the company with the times, Unitika has
shown great diversity in new research and development fields. This is achieved by
the connection of technologies and principles.

1889

1950

1889 Amagasaki Spinners Ltd., established.
1894 Middle count yarn "Amabo 42 Twisted
Yarn”
1918 Merger with Setsu Spinning Ltd.
Company name changed to Dainippon
Spinners Co,. Ltd.
1923 Merger with Nihon Kenmo Boseki(Japan Silk & Wool Spinning)
1926 Nippon Rayon Co., Ltd., established1929 Construction of new head officecompleted1939 Central Laboratory (current Central
Research Laboratory) set up at the Uji
Plant

4

Activity Fields

1951 First registered brand of Nichibo
Vinylon: Mewlon
1955 First registered brand of Nylon: Grylon

1960

1960 Nylon tire cord
1964 Company name changed to Nichibo Co.,
Ltd.
1966 Nippon Ester Co., Ltd., established1968 Emblem: a simultaneously biaxiallyoriented nylon 6 film
1969 Nichibo and Nippon Rayon merge to form
Unitika

Polymers

Nano-composite
nylonHigh thermal conductivity paintWholly aromatic
polyimide
Fuel cell separator

Pollution control technology
Chelate resin (suspension polymerization)

Biodegradable water
absorbent resin
Release film

Multi-layer film

Polyester film

Liquid crystal polyester

Unitika's Activity Fields:
Connected through Technologies and Principles

Fibers&TextilesRecycled fibers

Lyocell

Melty

Water and exhaust smoke treatment
technologies in our factories

Three-dimensional Super mewlon
fabricCarbonwafersHigh thermal conductivity resins

Incinerator

Water quality
Exhaust gas de-sulfurizer,
monitoring technology
NOx removal equipment
Exhaust gas dioxin removal technology
Wastewater treatment device
Sludge reduction technology Ash melting incinerator(pressurized flotation system)
High speed filtration device Marimo
Advanced water
purification process
Phosphorous removal
Domestic wastewater treatment facilities
Improved combined sewage
treatment technology
treatment technology
Activated sludge treatment

Microbial utilization technology

Environmental
Business

Bioreactor process technology
Coccoace(ingredients for feed)

Thermostable enzyme technology
Antithrombotic catheters withurokinase immobilized
Effective use ofwasted resources
Chitin spinning technology

Diagnosing reagentsfor diabetes, etc.

Nonwoven chition fabricSupplements

Efficient use of unused resources

1970

1972 Lovesheet, a spunbonded material for
agriculture
1976 Unitika Textiles Co., Ltd established
Palpa, a multi-layer yarn
Unitika Chemicals Co., Ltd., establishedUnitika Rayon Co., Ltd., established
Silky material Silmie 5
1979 Agreement concluded to export acashmere plant to Inner Mongolia, China

1980

1981 Melty, a low melting point polyester fibers
1982 Merger with Unitika Textiles Co., Ltd.
1984 Unitika Wool Co., Ltd., establishedDinkam, a high moisture permeability andwater proof material
1986 Unitika Research Labo Co., Ltd., establishedUnitika Garmentech Co., Ltd., established
Mixy, a multilayer, polymorphic hybrid yarn
Univeks, a thermosetting resin
Unitika Information Systems Co., Ltd., established1987 Unitika Plant Engineering Co., Ltd., established
Hamicot, a high grade fine/coarse countcotton yarn
1988 Solar , a thermal storage and heatretaining fiber
Beschitin W, a wound dressing material
Ad'All Co., Ltd., established

Health&Amenity

Ceramide1990

1991 Moufas, a chamois-type woven knit
Prooface, superior water pressure
resistance and moisture-permeable
material
Cottoace, cotton spunlace nonwoven
fabric1994 Inner Mongolia Donghao Cashmere
Products Co., Ltd., established1995 Emblem Asia established in Indonesia
Z-10, a dual-component, multifunction
synthetic fiber
1997 TUSCO (manufacture and sales ofpolyester spunbond) established in
Thailand
Lyocell, a flux yarn cellulose fiber
1999 Unitika Textiles Co., Ltd., establishedUnitika Fiber Co., Ltd., established

2000

2000 Coccoace, ingredients for feed
2002 Unitika Shanghai Office opened
2003 Byakugen Ho-ou, a health supplement created fromhanabiratake (Cauliflower fungus)
2004 Emblem China establishedGas-cogeneration facilities deployed at Unitika Uji
Plant
2005 Suplead Series health supplements
2006 Gas-cogeneration facilities deployed at Unitika
Okazaki Plant
2009 Plastics Technical Center established at Uji Plant

UNITIKA Group
Corporate Social Responsibility
Report 2010

Since her debut in December last year, Unitika's latest mascot girl, Erica,
has been busy in attending exhibitions and special events, and visiting plants.
Here we report on what Erica has been up to.

Attending the Eco Products
2009 Exhibition
The Eco Products 2009 Exhibition washeld at the Tokyo Big Sight exhibition
center from December 10-12, andUnitika's mascot girl, Erica, was one of
the first through the doors. This year's
event-the forth ever held-was attended
by a record 182,510 visitors. For the firsttime, Unitika's booth was designed in
the style of a café the "Unitika Eco Café"with a "life-friendly" theme.
The booth promoted the Unitika Group's

wide-ranging business interests,
displaying a variety of products including
film, nonwoven cloth, and plastics madefrom Terramac (a plant-derived biomass
material,) as well as products made from
Castlon and Uniecolo, and recycledplastics from Terabo Co., Ltd.
As it was Erica's first official job in herrole as mascot girl, she was a little
nervous at the beginning. Dressed inclothing made from Terramac, Erica
promoted Unitika products, participating
in an interview, and held arock-paper-scissors competition withbooth visitors.

Fishing Show Osaka 2010
Unitika also had a booth at the Fishing
Show Osaka 2010, which was held at theIntex Osaka exhibition center fromFebruary 5-7. Erica attended the event asa special guest on the 6th and 7th, whenthe venue was open to the generalpublic.
The Unitika booth displayed Silver

5

Unitika's 2010 Mascot Girl ERICA's Activity Report

Thread Arancia trout line and a range ofother fishing line products for various
different types of fishing. The boothproved very popular with visitors thanks
to an action-packed schedule that
included a seminar hosted by fishingpros, Hiro Naito, Yumiko Ishikawa, andMasahiro Sugihara; a Q&A session
conducted by Isao Okada; and a panel
discussion featuring Unitika's squid lurefishing pros, Masahiro Sugihara, Kazuo
Yuge, Norihiro Shigemi, and Nobuaki
Hiramatsu.
Erica joined in every seminar and panel

UNITIKA Group
Corporate Social Responsibility
Report 2010

discussion. In the seminar led by
Masahiro Sugihara, the audience was allears as Erica talked about her firstexperience lure fishing for squid underSugihara's expert instruction. At the endof each talk, Erica was kept busy with arock-paper-scissors competition wherevisitors had the chance to win
autographed calendars.

Promoting Unitika
Fishing Line
Erica appeared as a guest to promote
Unitika fishing line in the June edition ofa regular column written by Unitika
fishing pro, Yumiko Ishikawa, in fishingmagazine, Angling Fan.
Under Yumiko's expert tutelage, Erica
tried her hand at trout fishing for the firsttime at two popular fishing spots in
Shizuoka Prefecture. Though only her

2010 Mascot Girl website(in Japanese only)
http://www.unitika.co.jp/mg/2010/

Visiting a Unitika Plant
Not forgetting that one of the mostimportant roles of the Unitika mascot girlis encouraging Unitika employees, Erica
visited Unitika plants to chat with thestaff.
Her first visit was to the Uji Plant in Kyoto
Prefecture, where polymer films, one ofUnitika's stable income earners, aremanufactured. It was Erica's first visit toa factory. After passing through the air
showers, the tour began in earnest.
Erica was very interested in themachines that make Unitika's proprietarybiaxially oriented nylon film and in the
manufacturing process. After touring thefactory floor, Erica visited eachdepartment where she posed forphotographs, signed autographs, andenjoyed chatting with employees.
Afterwards, Erica paid a courtesy visit to
the mayor of Uji, an event that wascovered by the local newspaper,
indicating the degree of attention given
to her visit.
Erica's second factory visit was to the
Okazaki Plant in Aichi Prefecture. Hereshe visited the nonwoven cloth
manufacturing department. After
listening to an explanation of the
manufacturing process and products,
the tour proceeded to the factory floor

itself. Erica was surprised by just how
many Unitika products she had used ona daily basis without realizing. Unitika
products are everywhere. Erica stopped
to chat with plant employees before
rounding up her tour.
Having visited two Unitika plants, Erica
showed her strong commitment to herrole as company mascot girl. “I reallylearnt a lot touring the plants. It mademe determined to learn more about
Unitika products so that I can promote
them more effectively.” We wish her thebest as she continues to visit Unitika
plants around the country.

ERICA
Mascot Girl Profile

second time fishing, Erica successfully
hooked a trout using Unitika fishing line,
and was featured in a four-page article.
You can see Erica battling the trout on
the Unitika Fishing Land and 2010
Mascot Girl websites.
Unitika Fishing Land website(in Japanese only)
http://www.unitika.co.jp/fishing/

6

Unitika's 2010 Mascot Girl ERICA's Activity Report

Name: Erica
Date of birth: March 19, 1990
Home town: Tokyo
Star sign: Pisces
Height: 164 cm
Hobby: English conversation
Sports: Basketball and volleyball
Likes: Painting
Favorite season: Summer! I don't cope wellwith the cold, so I love summer.
Favorite actor/actress: Nicole Kidman
Favorite singer: Ne-Yo
Dream job: Actress. I'm taking acting anddance lessons at the moment

UNITIKA GroupManagement

Corporate Social Responsibility
Report 2010

Notes on FY 2010 Report
History of Report
This report was originally issued as the Unitika Environmental Report, a document which detailed Unitika's various environmental
and social related activities. By 2006, the Report has expanded CSR coverage, reflecting the growing importance of this area
and greater attention it is receiving in Japan. The CSR information includes topics such as corporate governance, internal control
and other principles and systems in use by the Group. The Report is now issued annually as CSR Report.

2002-2005 Unitika Environmental Report
2006- Unitika CSR Report

Period Covered by Report
This report covers principally the period from April 1, 2009 through March 31, 2010, however it does address certain items, andevents arisen after April 1, 2010.

Reference Guidelines
This report refers to the Environmental Report Guidelines (2007 edition) issued by the Ministry of the Environment.

What This Report Covers
This report in principle covers activities by Unitika, Ltd.'s domestic production sites and the Unitika Group companies including
those overseas and Environmental Report covers the following range of items.

Unitika Production
Sites in Japan

Internal Group Companies

Uji Plant
Okazaki Plant
Sakoshi Plant
Tarui Plant
Toyohashi Plant
Tokiwa Mill
Kaizuka OfficeCentral R&D
Laboratories

Ad'all Co., Ltd.
Nippon Ester Co., Ltd.
U-ai Electronics Corp.
Unitika NP Cloth Co., Ltd.
Unitika Environmental TechnicalCenter Co., Ltd.
Unitika Glass Fiber Co., Ltd.
Unitika Plant Engineering Co., Ltd.
Unitika Textiles Ltd.
Unitika Fibers Ltd.
Unitika Logistics Co., Ltd.

External Group Companies
I-Tex Co., Ltd.
Osaka Dyeing Co., Ltd.
Diabond Chemical Co., Ltd.
Terabo Co., Ltd.
Union Co., Ltd.
Unitika Sparklite., Ltd.
Unitika Spinning Co., Ltd.
Unitika Berkshire Co., Ltd.

Date of Issue
This report can be accessed on Unitika's company website from October 2010. In light of the potential environmental impact,
no printed version is issued.

Next Report
October 2011

Unitika ProductionSites in Japan
CSR: Corporate Social Responsibility.
Stakeholders: Customers, shareholders, suppliers, society, local communities, employees, and other individuals and organizations that havevested interests in a company.
Compliance: The observance of laws and corporate ethics.

7

Notes on FY 2010 ReportUNITIKA GroupManagement

Corporate Social Responsibility
Report 2010

Company Overview
Name: Unitika Ltd.
Founded: June 19, 1889
Capital: 23.8 billion yen (as at March 31, 2010)
Osaka Headquarters
Osaka Center Bldg., 4-1-3 Kyutaro-machi,
Chuo-ku, Osaka, 541-8566 JapanTokyo Head Office
JP Bldg., 3-4-4 Nihonbashi-Muromachi, Chuo-ku,
Tokyo, 103-8321 Japan
Central Research Laboratory
23 Uji-Kozakura, Uji-shi, Kyoto, 611-0021 Japan

Sales(Consolidated)

Number of employees (consolidated): 5,037 (as at
March 31, 2010)
Sales (consolidated): 182.2 billion yen (FY 2009)
Main business areas (consolidated): Polymers(films, resins, spunbond), environmental/advanced
materials (engineering, pharmaceutical products,
functional materials), fibers (synthetic and natural
fiber yarns, staple fibers, woven and knitted
fabrics), health & amenity products, otherbusiness areas(As of March 31, 2010)

Employees (Consolidated)(Billions of yen)
250

6,000

200

5,000
4,000

150

3,000
100

2,000

50
0

1,000
'05

'06

'07

'08

'09

Operating Profit (Consolidated)'05

12,000
9,000

3,000
'05

'06

'07

'08

'09

Sales:
182.2
billion yen

Ordinary Income (Consolidated)(Millions of yen)
15,00012,000

Polymers
33.5%

9,000
6,000
3,000
'05

'06

'07

'08

'09

'07

'08

'09

Net Profit (Consolidated)(Millions of yen)
6,000
4,000
2,000
0
-14,000

8

'07

'08

'09

Environmental/
advanced materials
14.2%

6,000

0

'06

Sales Share of Each Business Unit
(FY 2009, Consolidated)
Health & amenity
products, other
9.8%(Millions of yen)
15,000

0

0

'05

'06

Company Overview

Fibers42.5%

UNITIKA GroupManagement

Corporate Social Responsibility
Report 2010

Management Philosophy"Contributing to society by connecting persons' living to technologies"
The Unitika group's management philosophy is to contribute to society by connecting people's lives to technology.
Unitika aims to achieve its management vision of being a company with a clear social presence that contributes
positively to the environment and to people's lives.

The Unitika Group Slogan

There is an unimaginable number of people in the world. There is an unimaginable number of dreams and hopes.
The Unitika Group aims to unite all of these with one desire. One desire to improve the lifestyle of persons,living together in harmony within the global environment.
Unitika has the creative power to bring about this way of thinking. We also possess the technology andenergy to turn these possibilities into realities. We have taken the time to unite all the companies involved in our various
businesses, ensuring we are operating at full capacity through unification of our capabilities across numerous fields.
Unitika consistently strives to work together toward this goal.
The possibility of improving persons' lifestyle - We Realize It! We are the Unitika Group.

Corporate GovernanceUnitika aims to be a company with a clear social presence that contributes positively to the environment and to people's lives.
Under this management vision the Unitika group will implement ongoing corporate governance initiatives.

Basic Policy for Corporate GovernanceThrough our management philosophy of contributing to society by connecting people's lives to technology, we at the Unitika
Group aim to be a company with a clear social presence. We strive to achieve stakeholder-focused management by pursuinggovernance strategies that include the enhancement of legal compliance and risk management and the timely and appropriate
disclosure of information, and the implementation of rapid decision making. The Unitika Group considers that its pursuit of thecreation of a management system focused on these goals will allow it to maximize corporate value amidst the globalization of
the business environment.

Implementation
Unitika employs an Executive Director System that clearly distinguishes operational decision-making and supervisory functions('governance') from business execution functions ('management'). At the same time, we also use a system wherein directors also
serve as executive officers in order to enhance coordination between directors and executive officers and improve the agility andeffectiveness of management.
We have positioned the Board of Directors as a governance organization focused on management decision-making andsupervision. Meanwhile, we have established the Management Strategy Council, which is responsible for the early identification ofmanagement issues, the streamlining and acceleration of policymaking and implementation, and the appropriate and timely
implementation of policies and measures, in addition to facilitating more in-depth discussions amongst directors on policies andissues pertaining to all aspects of the Group's management.
While we have already established Authorization Regulations that set forth provisions regarding the execution of business, weemploy a decision-making system in which items of business of particular importance are discussed and deliberated on inadvance by the Management Strategy Council before consulting the Board of Directors.
Our internal control system can respond at the appropriate time and consists of a variety of organizations including the CSR Office,which is staffed by ten permanent employees and is the body primarily responsible for gathering information from within thecompany and the group; the Compliance Committee, which is chaired by the President; and whistleblower contact points both
inside and outside the company.
Furthermore, we work to educate our staff regarding legal compliance by conducting suitable training through the CSR Office anddistributing the Unitika Action Charter and the Unitika Action Standards to all group employees in addition to other initiatives.
9Management Philosophy / Corporate GovernanceUNITIKA GroupManagement

Corporate Social Responsibility
Report 2010

Internal Control
In April 2007, we created the Internal Control Promotion Office, and began implementing internal control for financial
reporting.In July 2008, we established CSR Office by integrating all the sections related to internal controls.

Basic Policy
Unitika's Basic Policy for Internal Control consists of the following nine items

Unitika's Basic Policy for Internal Control (Item Headings)
1. Organization to ensure that the execution of job duties by directors and employees complies with allapplicable legislation and the Articles of Incorporation
2. Items pertaining to saving/managing information on directors' execution of job duties
3. Regulations on loss hazard management; other organizational elements
4. Organization to ensure that execution of directors' job duties is performed efficiently
5. Organization to ensure suitability of operations done by corporate groups
6. Organization to secure the reliability of financial reports.
7. When auditors ask for appointment of employees to act as assistants
Items pertaining to organization for those employees, and to their independence from directors
8. Organization used for directors and employees to report to auditors; organization for reporting toother auditors
9. Other organizational elements to ensure that auditing by auditors is performed effectively

Organization
The diagram below shows the organization used for corporate governance, and to ensure fair corporate activities. The basic
elements correspond to Unitika's Basic Policy for Internal Control (outlined above). This organization is used to strictly enforce
internal control-compliance, information saving/management, risk hedging, increasing the execution efficiency of director job
duties, and ensuring the suitability of operations.

Organization
General Meeting of Stockholders
Appointing/terminating

Appointing/terminating

Appointing/terminating

ReportingManagement Strategy
Council(All directors)* Discusses important issues.

Discussion ofimportant issues

Board of Directors(five directors)

Auditing

Appointing/terminating, Reporting
instructions

Accounting
AuditorReportingAppointing/terminating,supervision

Board of Auditors(Four auditors)(Including two outside auditors)

Determining suitabilityof accounting auditing,witnessing auditing

Auditor staff
Executive Officers(Nine)(Including five executive officers
also acting as directors)

Representative
Directors(three)* Execute business operations.

President

Auditing

Reporting

Reporting

CSR OfficeInstructions

Reporting
Promotion, management
Advisory
organization

Business Execution Council(Directors, Executive Officers)

ReportingBusiness departments, Group companies

10

Internal Control

Committees:
Compliance Committee
Risk Management Committee
Export Management Committee
Central Committee on
Product Liability, others

UNITIKA GroupManagement

Corporate Social Responsibility
Report 2010

CSR Promotion System
In order to promote environmental awareness and safety measures as well as compliance and risk management and otherfacets of CSR, in 2008 we established the CSR Office and a CSR Director to oversee CSR at the entity-level.
We have established a management system consisting of various committees and business divisions that support the CSR
Office in promoting CSR initiatives.
Priority initiatives include those aimed at ensuring (1) environment, health, and safety (EHS) management, (2) the promotion ofcompliance, (3) information security management, and (4) product safety.

Organization of the CSR Promotion System
President

CSR Office

Risk Management
Committee

Compliance
Committee

Environment
Committee

Central Safety andSanitation Committee

Central Committee
on Product Liability

Export Control
Committee

Information Security
Committee

Environment, Health, and Safety (EHS) Management
Unitika's Environment Committee meets regularly every year. It discusses and votes on major environmental issues such as
basic plans for environmentally-aware management, and verification of their progress. Also, the bureau of the Environment
Committee implements environmental audits of our production sites and reports on the findings of these at Environment
Committee meetings.
The Central Safety and Sanitation Committee and the Environment Committee act as departments dedicated to safety andenvironmental measures, and have a higher level of authority in the Unitika hierarchy than the Environmental Safety Groups ofUnitika production sites or affiliates. They form an organization that provides the leadership to implement effective
environmental measures.

Information Security Management
This section outlines our work on information management and security, which are becoming increasingly
important issues as the growth of the Internet provides ever easier access to information.

Information Security
To maintain the confidentiality of information assets and prevent unauthorized use, Unitika set up the Basic Policy on
Information Security in 2005. This document contains our Information Security Declaration and sets forth our steadfast
approach to implementing it, while setting up a management and operation organization driven by our Information Security
Committee. The Basic Policy is designed to ensure protection and effective use of the information we handle in the course of
our business activities.
In 2009, we rebuilt our system, formulating and implementing standards and implementation measures for information security
and holding a meeting for personnel responsible for information management among other initiatives.

Unitika Information Security Declaration (Preamble Omitted)
1. We will take steps to ensure the security of information as set forth by our Information Security Policy.
2. We will create an information security management organization, and implement it in a systematic manner.
3. We will educate and train our directors and all employees on our Information Security Policy, working to prevent information security accidents.
4. We will work on improving our information security measures on an ongoing basis.
5. We will comply with all personal information protection laws and all relevant statutes and standards.
'Information Security Policy' refers to the documentation set forth and managed by the information Security Declaration, Basic Policy on Information Security,
Standards for Information Security Measures and Information Security Implementation Procedures.

11

CSR Promotion System / Environment, Health, and Safety (EHS) Management / Information Security Management

UNITIKA GroupManagement

Corporate Social Responsibility
Report 2010

Compliance Promotion
In 1998, Unitika instituted the Unitika Action Charter.
In April 2008 we reviewed the Unitika Action Standards, which outline
concrete standards of behavior. Moreover, as a company that
contributes to people's lifestyles and the environment while carefully
ensuring legal compliance, Unitika distributes a booklet of thesestandards to all Unitika Group directors and employees, so that they
can put them into action.
We work to ensure that all employees are aware of compliance andthat it is firmly established by making it a component of promotion
training for all staff, including new employees.

Unitika Charter of Corporate Behavior
The Unitika Charter of corporate behavior is our basic policy on how best to fulfill our mission as a public-spirited corporation.
It applies to all directors and employees of Unitika and Unitika Group companies.

The Unitika Charter of Corporate Behavior is a set of guidelines on how to act for the public good by complying with laws
and international standards and guidelines.
1.UNITIKA, by the development and provision of socially beneficial goods and services in a safe and responsible manner, shall strive toearn the confidence of their consumers and customers.
2.UNITIKA shall promote fair, transparent, free competition and sound trade. They shall also ensure that their relationships and contacts
with government agencies and political bodies are of a sound and proper nature.
3.UNITIKA shall engage in communication not only with shareholders but also with members of society at large, including active and fairdisclosure of corporate information.
4.UNITIKA shall strive to respect diversity, individuality and differences of their employees, to promote safe and comfortable workplaces,
and to ensure the mental and physical well-being of their employees.
5.UNITIKA shall respect the culture and customs of other nations and strive to manage their overseas activities in such a way as to promoteand contribute to the development of local communities.
6.UNITIKA shall reject all contacts with organizations involved in activities in violation of the law or accepted standards of responsible social
behavior.
7.As a ''good corporate citizen,'' UNITIKA shall respect fundamental human rights and actively engage in philanthropic activities, and other activities ofsocial benefit.

Whistleblower Contact Points

Unitika's Whistleblower Contact Points

In 2006, Unitika put into effect a set of "whistleblower protection"
Contact point 1
Contact point 2(internal reporting) regulations, designed to allow employees toUnitika Compliance Line
External Legal
immediately report any malfeasance or illegal activities they might
Contact point : Within CSR / CSR Group
Help Lineencounter. As part of this effort, we created two contact points forsuch reporting, one within the company and one outside theReporting Instructions Reporting Instructions
company. These are part of the strict measures we use to ensure
Reporting/
Reporting/consultations
consultations
thorough compliance within the company, driven mainly by theCompliance Committee
Feedback
Feedback
Compliance Committee.
Committee chairman: Unitika President
Further, as part of our training in observing compliance using tools
like our company intranet, we regularly dispatch information on theseAll employees working for Unitika Group
contact points to our employees.

Consultation Service for Sexual Harassment and Abuse of Authority
In1999, the Unitika Group established consultation services for complaints regarding sexual harassment and abuse of authority
at all its Group companies with the aim of discovering and resolving such problems as soon as possible.
In the more than ten years since the consultation services were first established, employee awareness regarding sexual
harassment and abuse of authority has improved, and the services have been effective to a certain extent.
With society becoming more aware of the abuse of authority in the workplace over the past several years, Unitika is reinforcing
its efforts to deal with such issues by making the decision to treat complaints regarding abuse of authority officially beginningJuly, 2010, and establishing consultation services for workplace harassment.

12Compliance Promotion

UNITIKA GroupCSR Report

Corporate Social Responsibility
Report 2010

Relationships with Clients
Through our product liability and quality assurance efforts, Unitika strives constantly to improve
product safety and quality of our products maintaining customer satisfaction as our first priority.

Ensuring Product Safety
Unitika has established product safety management regulations designed to ensure that we always offer safe products to ourcustomers.Unitika's product safety management regulations contain detailed provisions on areas such as basic policy,
responsibility areas, implementation systems, and bylaws on the implementation and application of manual procedures. Unitika
and Unitika Group companies work to ensure that product manufacturing and sales are carried out safely, in compliance withthese regulations. The chart below details promotional system, headed by the Central Committee on Product Liability, for
ensuring product safety.

Central Committee on Product Liability
Committee members

Work areas

Members include the head of each businessdivision, directors in charge of each business area,and directors in charge of management.

Creating basic policy pertaining to product safety
Creating yearly plans pertaining to product safety
Supervising results of product safety reviews
Keeping employees informed on product safety issues

Product Liability Review Board

Product Liability
Review Board

Product Liability
Review Board

Product Liability
Manager

Product Liability
Manager

Established in each business department, section and business unit. The
relevant division head appoints the committee chairman and secretariat.
Committee members
Department (office) heads incharge of production/technology,
department (office) heads incharge of sales, and members
appointed by the division head.

Main work areas
Reviews pertaining to safety issues in
product designs/specifications,manufacturing and distribution
Reviews pertaining to product displays andwarnings
Creating product safety standards andsubmitting revisions or deletions

Product Liability Manager
Appointed by each division head in line with the type of business
Main work areas
Investigating and checking health and environmental effects of product handling anduse
Creating and reviewing product handling cautions for display on product containers,
wrapping and tags
Creating and distributing product safety data sheets

Product Safety Record for Fiscal 2009
No product liability–related incidences occurred.
*Information on the claims which may bring about an accident is shared by the Central Committee on Product Liability andsuch information is used to prevent from repeated claims.

Quality Assurance Activities
In order to satisfy customer's demands on our products, the Unitika Group is pursuing quality management system
certification. We are constantly improving our quality assurance activities based on ISO9001 standards for quality management
systems.

13

Ensuring Product Safety / Quality Assurance Activities

UNITIKA GroupCSR Report

Corporate Social Responsibility
Report 2010

Relationships with Shareholders & Investors
Based on our "stakeholder-oriented" business perspective, Unitika endeavors to disclose accurate
and timely information to the stockholders and investors at every opportunity. In January 2003, weestablished a new Investor Relations (IR) Department, which works, as IR/Public Relation Group,in tandem with the Public Relations Department to ensure that such activities function smoothly,
and to create a meaningful dialog between the company and its stockholders and investors.

IR Activities

Ordinary General Stockholder Meetings
Through explanations of our latest operating conditions and dialogs with shareholders, Unitika uses
ordinary general stockholder meetings as opportunities to deepen understanding of our businessconditions and policies.
Announcements of Financial Statements & Explanatory Sessions
Unitika conducts a variety of financial data disclosure activities, including twice-yearly second quarter andfull financial year accounting statements for the press, both of which are followed a week or so later by
explanatory session geared toward institutional investors and analysts.
Institutional Investor Visits
Unitika representatives make visits to institutional investors and analysts in order to provide more specificinformation as needed.
Publications• Financial Flashes (4 times annually, in May, August, November, and February)• Stockholder Reports (2 times annually, at second quarter and full year closing)• Corporate Guides
Website Development
The "To Our Shareholders & Investors..." section of the Unitika corporate website offers an array of public
information of interest to stakeholders.

Share Status (as of 31 March, 2010)
Total Number of Shares Issued: 475,969,000

Distribution of Stocks
Financial Institutions
27.9%

Number of Shareholders: 66,764
Number of Unit Shareholders: 56,363
Individual, Other
58.7%

Financial Product Brokers(Securities Companies)
2.4%

Other Corporations
4.9%
Foreign Corporations
6.1%

14

IR Activities / Share Status

UNITIKA GroupCSR Report

Corporate Social Responsibility
Report 2010

Giving Back to the Community
Through beautification efforts, disaster prevention activities conducted with local communities
and volunteers, and various informational services, Unitika works on with the people of thecommunities to protect the environment and build a more ecologically friendly society.

Efforts Toward Environmental Improvement
Building on the success of the Kyoto Protocol, Kyoto Prefecture has created an environmental
administrative organization that includes a system called Eco Kyoto 21. The system targets
businesses that protect and develop Kyoto and the environment. It certifies and registers
corporations that play a leading role in environmental preservation through awareness activities, andin promoting recycling in the local community. Unitika's Uji Plant has participated in the system fromits inception, and in December 2004, was certified and registered under the system's Ecostylecategory for production sites and organizations carrying out highly original environmental activities.

Participation in Local Beautification Activities
The Uji Plant is actively involved in volunteer activities tobeautify the surrounding areas. It also participates in thelocal "Clean Uji" beautification and cleanup campaign, andconducts cleanup activities of the Uji Plant area three times
a year.In fiscal 2009, a total of 1,033 people participated incleanup activities, which were held on July 9, September
10, and March 3, 2010.Other Unitika production sites arealso giving back to the community by beautifying theirsurrounding environments.
At the Okazaki Plant, around 80 people conduct cleanup
activities on the second Thursday of every month. On a
Saturday in March 2010, about 150 people from the
Okazaki Plant and surrounding community gathered for a
volunteer activity to clean up the area around the facility.

The Clean Uji event

Cleanup around the Okazaki Plant

Helping Keep the Planet Green
Responding to Japan's increasing focus on public-spirited
volunteer projects, Unitika Labor Union established avolunteer foundation in 1992 and began a range of activities
inside and outside the Company. In Japan, we have held
support activities in facilities for the handicapped andconducted training meetings to expand the frontiers ofvolunteer activities. We have also worked to step up
volunteer activities overseas, where we have sent volunteers
to work camps for international exchanges, and have raised
money for disaster relief.
In 2003, Unitika Labor Union celebrated its 30th year
anniversary by starting a program called Midori no Plan('Green Plan') designed to give back to the community andraise environmental consciousness. Midori no Plan
volunteers created a wooded area they named Unitika no
Mori ('Unitika Wood'). Three species of local trees (sawtoothoak, quercus serrata, Japanese cypress) were planted in a
two-hectare area of mountain forest in Hidakagawa-cho(Wakayama Prefecture). Employees visit the area for cuttingback the undergrowth and pruning several times per year.In
September 2009, twenty-seven employees performed thistask to enable better tree growth. This project has beenrecognized by Wakayama Prefecture as "an effort
contributing to CO2 absorption through forestation," and is
15

Efforts Toward Environmental Improvement

projected to absorb about 800 tons of carbon dioxide fromthe atmosphere over the next 100 years.

UNITIKA GroupCSR Report

Corporate Social Responsibility
Report 2010

Disaster Prevention & Readiness Efforts
Unitika has created an organization well-equipped to prevent production accidents and accidents damaging surrounding
areas. In addition to these basic measures, we are also active in training activities to prepare for accidents and natural
disasters.To make internal standards for managing safety at production facilities, Unitika has established a set of"pre-evaluation policies" on safety sanitation and environmental effects at new facilities. All new and remodeled facilities are
subject to a strict inspection to be carried out two times, once during the designing stages and later again upon completion.
Plants that use boilers and other high-pressure vessels are charged with a law to conduct yearly inspections. However
voluntary self-management systems and specific conditions are fulfilled or acknowledged by presiding labor standards
inspection office, and such inspections may be extended to once every two years instead of every year. Two Unitika facilities(Uji and Okazaki) have earned this acknowledgement.
The Tarui Plant, held firefighting drills and conducted firefighting equipment checks, fire reporting drills, fire prevention patrols,
and other activities in conjunction with nationwide fire prevention campaigns held in the Spring and Fall. In Spring, the plant
holds fire extinguisher training for new staff and transferred employees. On March 26, 2010, the plant held drills for putting out
small fires using dry-chemical fire extinguishers and for extinguishing large fires using water from fire hydrants.
During the Spring fire prevention campaign, the Uji Plant held a variety of departmental firefighting drills including informing
relevant parties in the event of a fire, evacuating buildings, and extinguishing small fires using fire extinguishers. The plant also
carried out a firefighting drill involving a simulated fire at the staff dormitory.

Firefighting drill for large fires (Tarui Plant)

Firefighting drill at staff dormitory (Uji Plant)

Fire extinguisher drill (Tarui Plant)

Firefighting drill at staff dormitory (Uji Plant)

TOPICSPET Bottle Recycling
Unitika manufactures and sells a variety of recycled products
bearing the "ecomark," such as UniEcolo, recycled polyester
fibers, and Ecomix, recycled polyester non-woven fabrics. As
part of our efforts toward environmental protection, we havebeen developping such important products for which thedemand is increasing. As a raw material for these, weorganized a campaign for recovering used plastic PET bottles,
which are washed and collected by employees from ourvarious plants and their families. These are collected by our
Okazaki plant and sent to a recycler to be chopped into usable
plastic flakes. This recovering campaign began in Uji, Okazaki
and Osaka, but now has spread to the Unitika Trading
Headquarters and our Toyohashi, Sakoshi, Tokiwa, and Tarui
where employee participation awareness is on the rise.

16

Disaster Prevention & Readiness Effortss

Unitika PET Bottle Recycling System

Recycling
Processor

ECOMIXUNIECOLO

Unitika Plants

Okazaki Plant

UNITIKA GroupCSR Report

Corporate Social Responsibility
Report 2010

Concern for Our Employees
Unitika's personnel system is designed to encourage employee self-actualization. We provide equal employment
and work opportunities, and make every effort to create accommodating workplace environments.

Personnel System
Personnel Appraisal System
Unitika's personnel appraisal system emphasizes employees' effort, and is designed to increase the organization's vitality. It isa results-driven system that awards greater benefits to employees who achieve greater success or tackle more difficult
challenges. A biannual goal management system and annual competency evaluation system are used along with our humanresources development program. They impartially evaluate how well each employee is meeting their goals, and help them set
new goals to develop their abilities. Supervisors meet with each employee to discuss their evaluation results, ensuring thateveryone receives proper feedback, for better transparency and communication.

Self-Reporting System (Career Plan)
Once a year, at the time of the annual personnel appraisal employees submit a 'Career Plan Sheet' to self-report how much
aptitude they feel they have for their position. The Career Plan Sheet covers five main areas: (1) the employee's thoughts on
their current position, (2) their own medium- to long-term career plan, (3) what they want to achieve next in their career (suchas whether they want to be reassigned), (4) their strengths and how they have been working on achieving their career plan,and (5) comments on their current job position (such as their concerns) and improvement suggestions in the workplace. These
comments are used to clearly identify skill development goals and expectations regarding roles. Furthermore, we also confirm
whether employees of a certain age would like to use a reemployment system.
Unitika is aware of the importance of job rotation in fostering outstanding human resources. Our practice of periodic job
rotation (especially for young employees) helps employees improve their abilities by giving them the opportunity to work inseveral departments, and helps us spot candidates to fast-track.

Equal Opportunity
Women Employees
Unitika's women employees are valued for their abilities and perspectives. We employ a large number of female employees
and have no gender-biased employment or promotion policies. Over the past five yeas, 20.3% of Unitika employees have been
women, including many in management positions.

Support System for Work and Childcare
As of July 1, 2010

Leave

Work time

Menstrual leave

PregnancyChildbirth

Until child is 18 months
old or end of year in whichchild turns 12 months old(whichever is longest)

Morning sickness leave

Maternity leave

Childcare leave

Leave for care of sick children (10 days/year)

Relaxed commuting

Reduced working hours for childcare

1. Working hours shortenedby up to 1 hour/day
2. Commuting time slot
adjusted by up to 1 hour

1. Working hours shortened by up to 2
hours/day until child reaches age of 3
2. Working hours shortened by up to 1 hour/day
3. Commuting time slot adjusted by up to 1
hour

*Does not apply to employees on
flextime system*Does not apply to employees on flextime system

Hospital visits permitted
within working hours

Other

End of 3rd yearof elementary school

4. Restrictions on labor outside regular working
hours

Flextime system

Flextime system

Achieving a Work/Life Balance
In the interest of achieving an ideal balance between work and home life, andalso to address Japan's aging society issues, Unitika fosters a corporate
environment that allows employees to take leave for both child-raising andelder care, and in fact, Unitika offers leave durations for these, and also forcare for sick children, that are longer than those stipulated by law. Also, basedon Japan's "Next-Generation Child-Raising Support Measures Promotion Law,"
the company is also involved in promoting male participation in child-care, withchild-care leave available to both male and female employees.

Employees taking
childcare leave

Employees taking leave
to care for elderly relatives

2004

27

1

2005

17

0

2006

27

3

2007

26

0

2008

18

4

2009

16

1

Reemployment System
Unitika has a senior employee system that enables employees to continue in the same job after reaching the age of 60. We
welcome employees who want to continue working.
17

Personnel System / Equal Opportunity

UNITIKA GroupCSR Report

Corporate Social Responsibility
Report 2010

Human Resource Development
Unitika believes that raising the ability of each employee in the organization is crucial for achieving high business goals.
Human resource development is therefore an important focus for us. We approach it through two areas-our personnel systemthat sets forth employee work conditions and appraisal methods, and systems to encourage ability growth, such as ability
development and training systems. To implement our approach, we have our own training facility called the Unitika Training
Center. It is used for several different types of training taken by a large number of employees. To help employee
self-improvement efforts, Unitika offers a job qualification assistance system, correspondence courses, and full-time study
courses at universities in Japan. Many of our highly-motivated employees are eager to take advantage of these benefits.

Training System (Program) and Number of Students (FY 2009)
Training for individual levels
1 (544students)

Specialized education (122 students)
2 1.
Competency improvement

1. Training for promoted
employees (216 students)
2. Young employee
education (328 students)
New employee training,
basic course,
manufacturing department
leader development
coursetraining
Legal training
2. On-the-job development
education
Supervisor training, businessleader training
3. Quality control training
Experiment planning training
Basics of quality control

Employee Mental Health
Unitika actively pursues measures to ensure the mental well-being of employees based on the Guidelines on the Maintenanceand Enhancement of Employee Mental Health issued by the Ministry of Health, Labour and Welfare.All Unitika employees
undergo mental health training when they are promoted to a management position. We encourage managers to be aware of
their managerial role and to take care of their own mental health as well as the mental health of employees in their charge.
Beginning 2010, Unitika introduced return-to-work support guidelines for employees who have taken extended leave due tomental illness.
We manage and promote employee health by supporting all employees at every stage from preventing illness to facilitating
their return to work.

Human Rights
Raising Human Rights AwarenessThe entire Unitika Group is an active advocate of human rights.Unitika'sStandards for Behavior are distributed among employees with the goalof elucidating the company's policies on human rights. The company
also has an organization for the promotion of human rights and holds anannual human rights education seminar.
To comply with Japan's revised equal opportunity law, we are also
working on preventing sexual harassment, and have set up sexual
harassment consultation offices at each production site to raiseawareness and recognition of the problem among all employees.

Organogram of Human Rights Education Committee
Director in charge of all employee human rights issues
Human Rights Education Advisory Committee
Companywide Human Rights Education Committee
Workplace Human Rights Education Committees

Forced Labor
The Unitika Group and the Group's domestic and overseas subsidiaries and affiliates do not conduct forced labor or child laborin violation of the International Covenant on Civil and Political Rights, the Convention on the Rights of the Child, or otherinternational treaties.

Fair Recruitment Practices
Unitika has created the Unitika Employment Interview Manual based on the spirit of the employment selection guidelines issued
by The Ministry of Health, Labour, and Welfare. We promote fair recruitment practices by distributing the manual at meetings
and training seminars for interviewers and those involved in the selection process, and ensuring that all concerned are familiar
with its contents.
18

Human Resource Development / Employee Mental Health / Human Rights

UNITIKA GroupCSR Report

Corporate Social Responsibility
Report 2010

Safety & Health Activities
While the Unitika Group's medium-term safety and health plan implemented in 2008 (the 14th program running from 2008-10)
sets a target of zero workplace accidents, seven such accidents occurred in fiscal 2009, an increase on fiscal 2008. The rate oflost work time also worsened to 1.17 during fiscal 2009. However, some successes were also achieved as a result of the safety
and health activities promoted by our medium-term safety and health plan, with the Environmental Business Division
successfully reaching 10 million hours of accident-free operation.
The increase in workplace accidents can be attributed to a variety of causes including aging equipment and facilities,
increased dangers in factories, group companies, and workplaces due to generational turnover and other factors. In light of thissituation, the Unitika Group is focusing on educational activities, for example by conducting safety diagnoses at plants andgroup companies. Moreover, the Group also conducts risk assessments to clarify latent dangers in equipment and facilities andimplement measures to reduce workplace accidents.

Labor safety and health record
Number of accidents causing
lost work time

At domestic plants and internal group companies
NumberRate of lost work time

Rate

12

1.2

10

1.0

8

0.8

6

0.6

4

0.4

2

0.2
0

0
'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

Asbestos Removal
In response to the increasing public attention being given to health problems associated with asbestos, in 2005, the Unitika
Group established the Asbestos Action Committee, a groupwide body that promotes asbestos-related measures.
Exposed beams and posts containing friable asbestos have already been removed, sealed off, or enclosed as needed.
Moreover, friable and non-friable asbestos that has been sealed off or enclosed is removed using appropriate methods inconjunction with regular repair work.
To check employee health, we have offered health exams to any current or former employees who handled asbestos in thepast and want to check for asbestos-related health problems. As of March 2010, there were six certified industrial accident
victims (of whom five have died) and three victims certified under the Law Concerning the Relief of Health Damage Due toAsbestos (of whom three have died). No health problems have been reported from residents of areas surrounding production
sites or Group companies.

Number of certified industrial accident victims: 6 (5)*
Number of victims certified under the Law Concerning
the Relief of Health Damage Due to Asbestos: 3 (3)*
*Number in parentheses is number of deaths.

19

Safety & Health Activities / Asbestos Removal

Environmental Report

UNITIKA Group
Corporate Social Responsibility
Report 2010

Basic Environmental Policy
Unitika named 1993 an Environmental first year, when we enacted the Unitika Global Environment Charter,
consisting of our pledge, basic philosophy and action guidelines. Since then, we have complied with this Charterto ensure that our corporate management methods are environmentally aware, working on a range ofenvironmental activities.

Unitika Global Environment Charter
The growth and development of mankind is rapidly altering our planet's air, water and soil, threatening both theglobal biosphere and our own future, since both must depend on a finite ecosystem. As a corporation with morethan a century of business activities contributing to the public good, we are highly aware of the demanding
conditions now facing the global environment. The Charter is the declaration of our intention to focus more
attention on protecting and helping the environment, making appropriate environmental action the core of ourbusiness activities.

Basic Philosophy
Better living through technology, driven by corporate activities that help humans and nature coexist.

Action Guidelines

1

Continual awareness of the
global environment

The Unitika Group always considers the effects of our corporate activities on the global environment,
following a rigorous set of management procedures during product manufacture to prevent harm to it.

2Contributing throughtechnology development

We aggressively research and develop technologies to protect and help the global environment.

3

Using resources andenergy efficiently

We promote efficient use of resources and energy, and recycle limited resources.

4

Carrying out PR andeducational activities

We organize a large number of PR activities that provide information on protecting and helping the
global environment, and promote a wide range of educational events.

5

Drawing on the complete
range of Unitika Group
competencies

Following the mandates of the Charter, we draw on our complete range of competencies to protect
and help the global environment.

TOPICS
1st Unitika Squid Fishing Festival

Participants clean up port
The 1st Unitika Squid Fishing Festival was held on Sunday, October 18, 2009, in Arita,
a fishing port in Kushimoto, Wakayama Prefecture. The festival featured a lure fishingcompetition and was well attended by local anglers who competed for the best catch.
After the competition, all the participants joined together to clean up the port to help
maintain the local environment for all anglers.
*More details regarding the event are available from the website below:
Unitika Fishing Land website http://www.unitika.co.jp/fishing/ (in Japanese only)

20

Basic Environmental Policy

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

History of Environmental Preservation Activities
Unitika's work on environmental management hascontinued uninterrupted for over 30 years, and willcontinue into the future.
Pollution first became a major issue in Japan in 1973. That
year, Unitika created the Environmental Preservation
Regulations, making a clear distinction between environmental
measures and outward-directed production activities, toenable compliance with regulatory and standards values.
In 1991, we created a new companywide organization
called the Environmental Preservation Committee, followed in
1993 by the Unitika Global Environment Charter. That year webegan yearly environmental auditing, establishing the basic
direction for our environmentally-aware management style thathas continued to this day. In 1998, we created the Unitika
Charter of Corporate Behavior, a document that sets forth thebasic action policy needed to fulfill our Unitika Group mission
as a public-spirited corporation. Its first article sets forth our
responsibility for environmental and safety awareness.
The Unitika Action Standards created and implemented in
April 2001 expanded on the Unitika Action Charter by setting
forth specific action standards for Unitika organizations andemployees to comply with in the performance of their routine
business activities. The Standard of Corporate Behavior
represent a clear step toward corporate activities grounded ina mindset of corporate social responsibility (CSR). They coverareas such as the environment, safety, compliance, andcoexistence with the public good and stakeholders.

Unitika is working on becoming certified under ISO
14001-the international standard for environmentally-aware
corporate activities. We have started activities to help ouraffiliates obtain ISO 14001, and have been conducting
environmental audits of each company.

TOPICS

Evaluation of Financing
for Environmental Rating
Unitika has earned the overall evaluation "a company
offering particularly advanced efforts toward
environmental issues," and in fiscal 2007, we
received financing from the Development Bank ofJapan for financing for environmental rating. Thisfinancing was granted in recognition of ourdevelopment of the polylactide-based material
Terramac, which has received
widespread attention as acarbon-neutral material, and also
for our leading roles in turning theprivate sector toward lower carbon
emissions and achieving dramatic
reductions in CO2 emissions fromenergy sources. As a result of athree-level environmental screening
covering management overall,
operations, and performance,
Unitika received the highest rating.

21

History of Environmental Preservation Activities

Unitika's Environmental
Preservation Activity History
September 1973
October 1991
April 1993
May 1993

May 1994

July 1996
September 1996
October 1997
January 1998
January 1999
October 2000
April 2001
October 2002
October 2002
October 2005
October 2008

Created and implemented Environmental
Preservation Regulations.
Revised Environmental Preservation Regulations,established Environmental Preservation Committee.
Created and implemented Global Environmental
Charter.
Environmental Preservation Regulations werereborn as Environmental Regulations.
Established Environmental Committee,organization which meets annually.
Started environmental audits (once per year).
(Voluntary audits by each production site andinternal audits by headquarters staff.)
Created targets for first Medium-Term
Environmental Plan (FY 1997 to 1999).
Started publishing Kankyo, our in-housenewsletter on environmental issues.
Started activities aimed at becoming
ISO 14001-certified at our major production sites.
Created and implemented Unitika Action Charter.
Unitika Chemical was awarded ISO 14001
certification (first in Group).
Created targets for second Medium-Term
Environmental Plan (FY 2000 to 2002).
Created Unitika Action Standards.
Published Unitika Environmental Report.
Created targets for third Medium-Term
Environmental Plan (FY 2003 to 2005).
Created targets for fourth Medium-Term
Environmental Plan (FY 2006 to 2008).
Created targets for fifth Medium-Term
Environmental Plan (FY 2009 to 2011).

ISO 14001-Certified Unitika Organizations
April 1999
November 1999
January 2001
March 2001
March 2001
March 2001
March 2001
March 2001
October 2001
October 2001
October 2001
October 2001
December 2001
December 2001
December 2003
February 2004
September 2004
June 2008

Ad'all Co., Ltd.
Unitika Sakoshi Plant
Unitika Textiles Ltd., Tokiwa Mill
Unitika Uji Plant
Unitika Uji Plastic Plant
Unitika Central R&D Laboratories
Unitika Glass Fiber Co., Ltd., Kyoto Plant
Unitika Environmental Technical Center Co., Ltd.,
Kinki Office
Unitika Okazaki Plant
Unitika Plant Engineering Co., Ltd., Chubu Office,2nd Business Division
Nippon Ester Co., Ltd., Okazaki Plant
Unitika Environmental Technical Center Co., Ltd.,
Chubu Office
Unitika Tarui Plant
Unitika Plant Engineering Co., Ltd., Tarui Group
Unitika Glass Fiber Co., Ltd., Tarui Plant
Diabond Chemical Co., Ltd.
Terabo Co., Ltd.
Union Co., Ltd.

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Medium-Term Environmental Plan
The Unitika Group implements systematic improvements having established a Medium-Term Environmental Plan that sets the
reduction of industrial waste and the efficient use of resources and energy as priority targets.
We are currently working to achieve the medium-term targets set forth in our fifth Medium-Term Environmental Plan, which now
applies to all external group companies and is based on fiscal 2007 results.

Fifth Medium-Term Environmental Plan (FY 2009-FY 2010)
Priority Issues

Targets

FY2009 Results

Fig. No.

1

Reduction ofindustrial waste

4% reduction
compared
to FY 2007 level

Achieved(1)

2

Improvement ofloss recycling rate inproduction process

2% increase
compared
to FY 2007 levelNot achieved(2)

3

Improvement ofenergy source unit

Final year
Year-on-year
reduction of 1%

Not achieved due to reduced
production(3)

4

Reduction ofenergy consumption

10% reduction comparedto FY 1990 in FY 2010

Achieved via switch from fuel oil to naturalgas, introduction of cogeneration systems,& other initiatives.

(4)

Note*: Scope of fifth Medium-Term Environmental Plan: Domestic plants, internal group companies, and external group companies

Quantity of processed industrial waste products

Rate of recycling(indexed to FY2007 level = 100)t
10,000

105

8,000
100

6,000
4,000

95
2,000
0

'01

'02

'03

'04

'05

'06

'07

'08

90

'09

'05

'06

'07

Fiscal year

Fiscal year

Fig. 1

Fig. 2'08'09

Energy consumption quantity(crude oil equivalent)

Energy unit requirement(indexed to FY2005 level = 100)Thousands of kL
300

120

250
110
200
100

150
100

90
50
80

'05

'06

'07

'08

'09

'90

'00

'05

'06

Fiscal year

Fig. 3Fig. 4

Unitika Domestic Plants & Internal Group Companies

220

Fiscal year

Medium-Term Environmental Plan

External Group Companies

'07

'08

'09

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Reducing Air and Water Pollution
Domestic plants are pursuing measures such as switching from fuel oil to natural gas and the abolition of diesel power
generation to reduce emissions of dust, nitrogen oxides (NOx), sulfur oxides (SOx), and carbon dioxide (CO2). Unitika also
works to reduce water pollution through the appropriate management of wastewater treatment facilities.

Dust emissions

NOx emissions

t
60

t
1,400

50

1,200
1,000

40

800
30

600

20

400

10
0

200
'01

'02

'03

'04 '05'06 '07 '08 '09

0'01 '02 '03 '04 '05 '06 '07 '08 '09

Fiscal year

Fiscal year

SOx emissions

Changes in CO2 emissions from energy generationt
600

Thousands of tons

900
800
700
600

500
400

500
300

400
300

200

200

100
0

100
'01

'02

'03 '04 '05 '06 '07'08 '09

0

'90

'00

'05

'06

'07

'08

Fiscal year

Fiscal year

Environmental load (COD)

Total waste water quantity'09

Thousands of m3

t
400

57,00056,000300

55,00054,000200

53,00052,000100

51,000
0

'01

'02

'03

'04 '05'06 '07 '08 '09

Fiscal year

Unitika Domestic Plants & Internal Group Companies

50,000'01 '02 '03 '04 '05 '06 '07 '08 '09

Fiscal year

External Group Companies

Note: Nox = nitrogen oxides, SOx = sulfur oxides, COD = chemical oxygen demand

23

Reducing Air and Water Pollution

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Handling of Chemical Substances
The Unitika Group works to monitor and reduce the use of chemical substances thought to be hazardous to human health as
regulated by the Pollutant Release and Transfer Register (PRTR) system.
Emission and Transfer Amounts for PRTR System-Regulated Substances in Fiscal 2009
Substance

Water

Acetaldehyde

51Asbestos

-

-

-

-

Bisphenol A

-

0

0

5

-Caprolactam

14

0

14

-

Dichloropentafluoropropane

1

-

1

-

Dichloromethane(Methylene chloride)

41

0

41

8

-

-

-

1

18

-

18

1

-

11

11

3

Poly(oxyethylene) alkyl ether

-

4

4

0

Other

1

0

1

3

Unitika Domestic Plants &Internal Group Companies Total

61

12

73

16

Unitika External Group Companies

19

4

23

5

TolueneBoron and its compounds

Total

6

Emission/transfer amounts (tons/year)

Atmosphere

Terephthalic acidEmission/Transfer Amounts of Substances Subject to the PRTR System

Total Amount Transferof Emission Amount

-

350
300
250
200
150
100
50
0

'04

'05

'06

'07

'08

'09

Fiscal Year

Transfered

Emitted(annual tons)

Logistics
Unitika undertakes a variety of efforts to reduce the environmental burden associated with the delivery and emission of raw
materials, products, waste, and other materials. These efforts include the implementation of modal shifts (i.e. switching transport
from road to rail and/or shipping) and streamlining of delivery systems. In fiscal 2009, as a specified consigner (a Japanese
legal designation applied to consigners who ship 30 million tons of freight or more per year,) we reported 74.2 million tons offreight and 24,200 tons of CO2 emissions to the government.

Environmental Complaints
Based on Unitika's corporate vision of "being a company that contributes to people's lives and the environment, and that has a positive
presence within society," we make utmost efforts to pursue our business and activities in ways that are considerate of the people living
around us.
In each case, we looked to find both causes and solutions and communicated these to those in the surrounding communities while taking
steps to ensure their non-recurrence. In all such situations we will do our utmost to improve so that we may contribute positively to the living
environments of the people living around us.
Further, in fiscal 2009, for domestic plants, internal group companies, and external group companies, there were no incidences of accident
or pollution that might have led to environmental problems, nor were there any violations of environmental laws and regulations.
Complaints from Surrounding Neighborhoods
Offensive Odor

No. of Incidences
12

Noise
Water Quality

10

Air quality

8
6
4
2
0

'01

'02

'03

'04

'05

'06

'07

'08

'09

Fiscal year

Applicable scope: Domestic plants and external group companies

24

Handling of Chemical Substances / Logistics / Environmental Complaints

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Overview of Environmental Impact
Environmental Impact From Business Activities (FY 2009 Figures)
The diagram below shows the Unitika Group's materials flow for FY 2009.

INPUTOUTPUT

Atmospheric emissions
SOx: 47 tons CO2: 383,000 tons
NOx: 482 tons Dust: 7 tons

Water
53,506,000 m3
River Water 46,976,000 m3
Ground Water 4,149,000 m3
Drinking Water 19,000 m3
Industrial Water 68,000 m3

Waste water
Waste water quantity: 53,389,000 m3
COD emission quantity: 268 tons

UnitikaGroup'sbusiness
activities

Energy225,000 kL(crude oil equivalent)

Waste products
Final external disposal quantity: 7,553 tons

Chemicals*Integrnal recyclin
Raw materials
285,000 tons

Material recycling: 12,195 tons
Thermal recycling: 0 tons

Emission quantity: 93 tons
Transfer quantity: 22 tons

All products
Production quantity: 245,000 tons

External recycling
11,855 tons

*Substances requiring registration under PRTR System

25

Overview of Environmental Impact

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Environmental Accounting
The Unitika Group implements environmental accounting as part of our environment-conscious business activities.
In conducting our environmental accounting, we follow the 2005 edition of the environmental accounting guidelines publishedby the Japanese Ministry of the Environment in February 2005. The Unitika Group will continue to release clear and accurate
environmental accounting data.

Purpose of Environmental Accounting
To make environmental preservation more efficient by quantitatively identifying the amounts of investments and expenses forenvironmental preservation, and to make decision-making processes in a more reasonable way.
To disclose environmental accounting information to our stakeholders and to fulfill our responsibility to keep them informed.

Method of Tallying Environmental Accounting Data
Data provided by : Unitika Domestic production sites & Internal Group Companies and Union Co., Ltd.
Applicable period : April 1, 2009 to March 31, 2010
Calculation method: Investment amounts include the environmental investment on items forwhich the environment is not the main objective. Expense amounts include
labor costs, general expenses and depreciation.
Unitika's fiscal 2009 environmental investment was 199 million yen. Most of these funds were used on items related to energy
savings and global warming prevention.
Environmental expenses were 1,488 million yen, mainly for maintenance and management of equipment to prevent pollution,
waste processing (including recycling expenses), and product R&D to reduce environmental impact.

Environmental Preservation Costs
Category
Businessarea costs(Millions of yen)

Capital investment

Cost

Remarks

Pollution prevention costs

34

651

Pollution (water, air and noise pollution) prevention measures

Environmental preservation costs

104

27

Energy saving, global warming prevention

Resource recycling costs

61

377

Waste disposal, recycling

Upstream/downstream costs

43

Packaging material recycling

Management activity costs

73

Environmental management system maintenanceenvironmental education, impact monitoring

R&D costs

260

Developing environmentally-friendly products

CSR costs

38

Forestation improvements, beautification campaigns

Environmental damage costs

19

Quantity-based tax on environmental impact of SOx emissions

199

Total

1,488

Economic Effects
The table lists items with a clear basis for calculation that have high substantive benefits for environmental preservation. Notethat inferred benefits have not been calculated.
(Millions of yen)

Item

AmountReduction in energy expenses
Reduction of costs associated with energy-efficient powersources and industrial waste reduction
Income from sale of recycled resources

26

Environmental Accounting

105
7
119

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Technology and Products for Environmental Safety
Unitika offers various products and technologies using a basic approach that aims to create
sustainability through resource recycling.

Water Treatment Facilities
Water supply and sewage treatment facilities
Advanced water supply and sewage treatment facilities
Rural waste water treatment facilities
Landfill leakage treatment facilities

Industrial waste water treatment equipment
Sludge reduction equipment
Water supply membrane filtration equipment
Phosphorus removal and granulation equipment

Waste water treatment facilities in incinerators
Domestic waste water treatment equipment

Marimo®
High-Speed Filtration System

Improved Combined Sewerage
Treatment System
Since large volumes of combined sewage
flows into sewage treatment sites in a shorttime when it rains, the sites can't treat it fastenough, and untreated sewage is released
into rivers or other waterways. To solve thisproblem, Unitika has developed an improved
combined sewerage treatment system driven
by our Marimo high-speed filtration system,enabling rapid and stable treatment over short amounts of time. It
efficiently performs variable high-speed filtration on top/bottom
counter-currents, providing high treatment capacity in rain or shine. It
removes pollutants at a filtration rate of up to 2,000 m/day in rain, and at
a standard rate of 1,000 m/day in clear weather. It is a high-performancesystem offering stable treatment capacity at a low cost.

Marimo is a high-speed filtration system developed
by Unitika that offers high performance and uses a
special fiber as the filtration material. Marimo's
high-speed function provides a filtration rate three
to five times faster than conventional sand filtration
systems. Offering a significantly higher level oftreatment efficiency, it enables easy cleaning anddraws on Unitika's many years of expertise as afiber manufacturer. Marimo is used in a wide range
of applications in tertiary waste water
treatment, waste water reuse,industrial water filtration,and desalination
pretreatment.

Phosnix® Phosphorus removal andgranulation equipment
A system that recovers phosphorus
in waste water as granules ofmagnesium ammonium
phosphate (MAP), a
substance that canbe effectively used
as a fertilizer.

Marimo filtration material

MAP

Air Pollution
Deodorizing equipment
Soil surveys/analysis

Pollution cleanup measures
Dust collection equipment

Soil pollution cleanup measures
Pharmaceutical products, resins, filtration materials

Environmental Surveys, Measurement and Analysis:
Unitika Environmental Technical Center Co., Ltd.
Unitika Environmental Technical Center (UETC) uses the latest equipment
and technology to carry out environmental surveys, measurement andanalysis, along with various investigations needed by several industries.
UETC is certified by Japan's Ministry of the Environment as a qualified
contractor for dioxin analysis, and has gained a reputation for solid reliability.
To enable more accurate analysis, UETC can analyze trace amounts ofdioxins. It is highly experienced in soil surveys (a recent area of concern inJapan), and has measures to combat soil and groundwater pollution
permanently. UETC also helps protect living environments through activities
such as sick building surveys; air quality, weather, noise and vibration
measurements; technical support for water treatment; exhaust gas, odor andwork environment measurements; and analysis of river water, waste water,
drinking water, asbestos, and insulation oil trace PCBs.

27

Water Treatment Facilities / Air Pollution

Environmental
hormone analysis

xtracting a sample witha simple boring machine

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Plant-Derived Biomass Material
Terramac®
Terramac is a biomass material made from a polymer derived from plants such as corn. Biomass materials are organic resources
derived from sustainable biological sources except for fossil resources. Terramac ultimately degrades into carbon dioxide andwater, which are absorbed into plants such as corn for their growth. Then, the corn can be turned Terramac again. So Terramac
is part of the world's natural 'recycling system'. Conventional plastic products are made from oil, a limited and non-renewable raw
material that will run out in the not-so-distant future if we continue using it. As a non-oil-based plastic product, Terramac is hence
the focus of much attention. It has a wide range of applications in clothing, plateware, cups, wrapping films, cosmetic bottles,
teabags, planters, trash bags, electronic device components and all areas of consumer demand. Unitika has developed theworld's first heat-resistant foam containers and food containers made of polylactic acid, the base ingredient of Terramac. These
products are attracting a lot of attention for their ability to hold hot water and their microwave-safe design. Terramac is used inapplications such as mobile phone casings, which require demanding durability and heat resistance specifications, and digital
MFP parts, which are required to be fire-resistant. Recently, we have used alloy technology to develop a new heat-resistant gradeof resin for injection molding that features improved molding performance and shock resistance than conventional resins. This
resin is used as an exterior covering for health meters and other applications. Combining the natural advantages of plant material
with human technology, Terramac is an attempts to be the ideal material supported by both the Earth and human beings.

Unitika's proprietary technologymPolylactic Refor ing
acid

t io

n

Terramac
Pr

Po
ly

me
r

iza

e
oc

ng
ssi

Lacticacid

Fermentation

TERRAMAC'smaterial circulation system

Co
mb
ustio
B io
n
deg
r ad ing

Products

Starch

Se

pa

ra
tio
n
Biomass resources(such as corn)

Photosesis
ynth

Carbondioxide
Water

cess

g pro

yclin

c
To re

Temperature
HumiditypH

Light
Minerals
Human activities, chemical reactions
Reactions caused by activities of organisms

Terramac is extremely safe for human health and the environment.
Biodegradability:

JIS K6953 (ISO 14855) Passes the test of aerobic and extreme biodegradability
and destructibility under controlled compost conditions.

Can be used for these applications.
Digital equipment parts(Fuji Xerox Co., Ltd.)

Conforms to GreenPla® Identification and Labeling System/certification standard set by Japan Bio

Labeling,
Plastics Association (JBPA). (Has been placed on Positive List, and been certified with the GreenPla® Mark.)certification standard: Conforms to certification standards set by JBPA BiomassPla Identification System.
Conforms to certification standards set by Japan Organics Recycling Association's (JORA) biomass mark business.

Food sanitation:

Conforms to standards and criteria set forth in Ministry of Health, Labour and Welfare Notice No. 370(Food Sanitation Law). Certified under US FDA/FCN (Food Contact Notification) No. 178.
Included in Japan Hygienic Olefin And Styrene Plastics Association's (JHOSPA) positive list.

Bacterial resistance:

Polylactic acid is reported to have antibacterial activity.
(Bokin bobai, Vol. 29, No. 3, pp. 153 to 159, 2001)

Low combustion heat:

Low combustion heat of approximately 19 kJ/g is one-half to one-third the value of oil-based plastic, so can't
harm incinerators. Does not generate toxic gases (dioxins, hydrogen chloride, NOx or SOx) when incinerated.

Solar power digital scales(Tanita Corporation)

Expanded method resin foams(Sekisui Plastics Co., Ltd.)Terramac products with the IngeoTM are in compliance with the NatureWorks Brand Policy, and uses NatureWorks®
biopolymers.NatureWorks, Ingeo, and the Ingeo logo are registered trademarks of NatureWorks LLC in
the United States and other countries.
www.natureworksllc.com

28

Plant-Derived Biomass Material

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Anticorrosive Sheeting
Segurova®
Japan's River Law was partially revised in June 1997, and inline with the new law, Unitika developed Segurova, ananticorrosive sheeting material designed with the concern tonatural environments and landscapes. Manufactured using a
3-D weaving technology to ensure that gaps and thicknesses
are kept constant, Segurova resists water currents, andprovides high corrosion resistance. Designed for weather
resistance and endurance, it is mainly comprised of black
clope-dyed polyester monofilament. To give somecomponents partial dimensional stability, they use binder
fibers with a core and pod structure. The sheet top and bottom
layers have a honeycomb structure for easy filling with earth or
sand. Segurova can be used in embankment protection works
to reinforce the corrosion resistance of herbaceous plants
such as lawns or seedlings. It stops corrosion by water
currents at embankment surfaces and river banks, realizing a

new anticorrosion sheeting-based construction method.
Segurova has already become the first product in the industry
to be awarded the Public Works Research Center's
Anticorrosion Sheet Performance Evaluation Certification(certification No. 0001).

Plant-Derived Biomass Material
Castlon®
Castor oil plantleavesCastlon is a 100% plant-derived nylon fiber with low
environmental impact. It is made from the inedible seeds ofthe castor oil plant.
It features a unique molecular structure unlike that ofconventional nylon fiber that gives it excellent wear, bend, andfatigue resistance, as well as resistance to solvents,
dimensional stability, and flexibility at low temperatures.
The characteristics of this lightweight, up-and-coming material
make it perfect for use in bags and other non-clothing-related
applications.

Castor oil beans,sometimes also called
castor oil seeds

Bags made using Castlon

Glass Beads
Unibeads for use in Road Marking®
Unibeads for road marking are microscopic transparent
spherical glass beads. Utilizing the effects of recursivereflection lenses, they are used for a variety of roadmarking applications to help create safer roads byimproving nighttime visibility.
They are a recycled product that makes use of glass cullet
from waste construction materials.
Unibeads are a safe, environmentally-friendly product that
does not leach harmful contaminants into the soil.
They have received certification (No. 05 131 001) from theJapan Environment Association as a product that helps
reduce environmental impact.
As an environmentally-friendly green purchasing product29

they are also registered as an Osaka Prefecture-approved
recycled product recognized by the Governor of Osaka
Prefecture (No. 20-126).

Anticorrosive Sheeting / Plant-Derived Biomass Material / Glass Beads

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Recycled Polyester
Fiber

Uniecolo®
Demand for PET bottles has been growing year by year, and the cost of fossil fuel-based plastics is rising sharply. For thesereasons, used bottles have become an important resource themselves. As part of our efforts to preserve the environment,
Unitika has been active in PET bottle recycling. Uniecolo was developed through our outstanding spinning technology. Offering
soft hand-feeling and good bulkiness, it is an environmentally-aware fiber with the same features as conventional polyester,and designed to enable reuse of limited resources.

Nonwoven Sheeting

Ecomix®
Since recycling is an important part of our environmental preservation efforts, Unitika has developed, by its outstanding
spunbond technology, a polyester filament nonwoven fabric called Ecomix, made from scraps of PET bottles or nonwoven
fabric products. Ecomix has already obtained the Japan Environment Association's Eco Mark certification (No. 00105029). With
outstanding water permeability and endurance, Ecomix has been approved for a wide range of public works applications,
including protective mats for water barrier sheets in waste disposal sites, sheets for erosion and torrent control in banking
reinforcement construction and harbors, suction-preventing sheets for riverbank protection, and plastic board drains. With its
cost-effective wide sheets and highly elastic structure, Ecomix can easily handle warping and projections, and is gaining
popularity as sheeting for today's needs.

Recycling scraps of PET bottles and nonwoven fabric products

Cut and sewn into product.

Made into fabric by knitting or weaving.

Made into yarn by spinning.

Made into staple fiber.

Drawn out to filament yarn.

Finished nonwoven fabric sheet.

Made into sheet, hot-rolled to melt.

Activated charcoal is mixed into chips,
which are spin-drawn to yarn.

Heated into chips.

Cut into fine fragments.

Nonwoven fabricproduct scrap recovery.

Recycled Polyester

Heated into chips.

Cut into small flakes.

Removal of impurities such as caps and labels.

PET bottle recovery.

30

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

New Natural Fibers
Sylph®
Good clothing materials need to be gentle, comfortableand versatile, while enabling attractive tailoring. Materials
must meet all these requirements to make novel andcomfortable clothing, and Unitika's groundbreaking newmaterial Sylph generates just such new possibilities. Morethan ten years after the development of lyocell fiber (theraw stock fiber), Sylph was created by using a more
evolved form of the raw stock fiber and the latest advanced
fabrication technology. Sylph offers a larger variety of highadded-value materials, and raises the standard of quality
for lyocell products. And since it is also extremely

environmentally friendly, Sylph is setting the new standard
for materials meeting 21st-century needs.

Recycling/manufacturing process not
generating harmful substances
Pulp

Mix

Dissolving Spinning

RestoredAmine oxide
distillation

Cleaning, bleaching,dryingLyocellraw stock

Recovery
Dilute amine oxide
recovery

Organic Cotton Material
Naturecot®
Naturecot is a material that employs organic cotton thatmeets Organic Exchange*1 standards.

*1 Organic Exchange: A US-based NPO that promotes
organic cotton worldwide.
*2 Control Union: An organic certification organization
based in Rotterdam, the Netherlands.

Organic cotton is defined as cotton grown in soil that has
not had any agricultural chemicals applied to it for at least
three years. Unitika decided to employ a third-party
certification organization to guarantee that customers
receive genuine organic cotton products. The company
obtained Organic Exchange certification through Control
Union*2 and created a production system that ensures
traceability.

Ecorally®
Ecorally reclaims and recycles fibers from used uniforms. It
is a recycling system that turns resources into felt and othermaterials for reuse in new products such as carpets andvehicle interior materials. With recycling following reduction
and reuse of waste in the order of priority environmental
strategies outlined in Japan's Basic Act on Establishing aSound Material-Cycle Society, Ecorally is garnering
attention as a recycling system with low environmental

impact. In recent years, the role that uniforms play in termsof environmental impact, contributions to local
communities, and other factors is gaining importance. As atool for protecting the environment that connects
companies with society and as a tool for enhancing social
trust, Ecorally supports the realization of a sustainable andenvironmentally friendly society.

Recycling Process

Used uniforms
collected

31

Uniforms taken to
recycling factory

Coarsecrushing

Fine crushing

New Natural Fibers / Organic Cotton Material / Ecorally

Made into felt thread

Reclaimed wool recycled
as felt material

UNITIKA Group

Environmental Report

Corporate Social Responsibility
Report 2010

Production Site Information
Air

Production Site

Water

Location

SOx

NOx

Dust

BOD

COD

SuspendedmatterOil

NitrogenPhosphorus

Unit

Nm3/hour

ppm

g/Nm3

mg/l

kg/daymg/l

mg/l

mg/l kg/day

mg/l kg/day

Uji Plant

29.1

199

0.025

-

1131

30

16

-

722

-

98

Site area: 311,781 m2
ISO 14001 Certification No.
JCQA-E-0058 JCQA-E-0249

21.6

69.4

0.015

-

353

5.5

0.55

-

116

-

7

Okazaki Plant

93.29

100

0.05

25

718.7

20

10

15

385

2

51

Site area: 313,865 m2
ISO 14001 Certification No.
JCQA-E-0292

0.13

74

0

2.8

65.7

4

0

1.4

23.7

0.34

5.1

Toyohashi Plant

0.49

180

0.3

-

11.9

70

5

120

-

16

-

0.022

82

0.004

-

6.3

1

<1

12

-

0.42

-

Site area: 270,804 m2

Sakoshi Plant

0.0

89.3

0.12

-

348

3.9

10

15

-

2

-

Site area: 191,236 m2
ISO 14001 Certification No.
JCQA-E-0093

0.0

37

0.001

-

78.3

1.9

0.79

0.8

-

0.02

-

Tarui Plant

11.5

180

0.3

-

108.4

50

5

120

42.7

16

5.6

Site area: 156,224 m2
ISO 14001 Certification No.
JCQA-E-0323

0.71

82.1

0.004

-

25.5

3.3

1

2.1

3

0.1

0.14

Tokiwa Mill

17.5

130

0.3

80

-

100

2.5

-

-

-

-

Site area: 137,551 m2
ISO 14001 Certification No.
JCQA-E-0221

0.33

78

<0.001

<1

-

<1

<1

-

-

-

-

Union Co., Ltd.

-

180

0.15

300

-

300

2

150

150

20

20

Site area: 6,886 m2
ISO 14001 Certification No.
JCQA-E-0835-

18<0.002

18

-

8

0.5

1.5

-

0.1

-

Regulation values* Values in table
Measured FY2009 values

32

Main products
5 Uji-Tonouchi, Uji-shi,
Kyoto, Japan 611-0021
Nylon resin, nylon fiber,
engineering plastics,
nylon/polyester film

4-1 Hinakita-machi, Okazaki-shi,
Aichi, Japan 444-8511
Polyester resin, polyester, fiber,
spunbond (filament nonwoven fabric),
medical equipment,
environmental business

101 Matsunami, Akebono-cho,
Toyohashi-shi, Aichi, Japan 441-8527
Nonwoven fabrics (sheeting forcivil works and roofing applications),
biobusiness (cauliflower
mushroom: Sparassis crispa)

846 Takano, Ako-shi,
Hyogo, Japan 678-0171
Vinylon fiber (for industrial
materials such as cement,
rubber reinforcements, tatami thread
and papermaking binders)

2210 Tarui-cho, Fuwa-gun,
Gifu, Japan 503-2121
Cotton nonwoven fabrics,
glass cloth

88 Nakahara, Souja-shi,
Okayama, Japan 719-1195
Cotton 100% yarn,
Blended yarn with synthetic & cotton,
Synthetic woven fabrics blended
with cotton

10-1 Ohmine-Minamimachi,
Hirakata-shi, Osaka, Japan 573-0145
Glass beads

Note 1: The displayed regulation values are the most rigorous values mandated by law (Air Pollution Control Law or Water
Pollution Control Law), regulations, prefectural guidance or conventions.
Note 2: Includes environmental impact from affiliates within site.
Note 3: SOx = sulfur oxides, NOx = nitrogen oxides, COD = chemical oxygen demand, BOD = biological oxygen demand
Note 4: The displayed air pollution values are the measured values for the major facilities at each site (totals are values for
entire site).
Note 5: The displayed water pollution values are the highest values measured at the drain outlets at each site (loadamounts are values for entire site).

Production Site Information

Inquiries
IR and PR Group
Corporate Control Department
4-1-3 Kyutaromachi, Chuo-ku, Osaka 541-8566, Japan
Phone: +81-6-6281-5695
Website: http://www.unitika.co.jp/