CONTENTS UNITIKA Group

Corporate Social Responsibility Report 2013

Message from the President

2Management
Notes on FY 2013 ReportCompany Overview
Our Philosophy
Corporate GovernanceInternal Control
CSR Promotion System
Environment, Health, and Safety (EHS) Management
Export Control
Information Security Management
Compliance Promotion
Unitika Purchasing Policy

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CSR Report
Relationships with Clients
Ensuring Product Safety
Quality Assurance Activities
Relationships with Shareholders & Investors
IR Activities
Share Status (as of 31 March, 2013)
Contributing to the Community and the Environment
Community-focused Initiatives
Preserving the Environment and Biodiversity
Volunteer Activities
Disaster Prevention & Readiness Efforts
Concern for Our Employees
Personnel System
Human Resources Education
Employee Mental Health
Equal Opportunity
Promoting Awareness of Human Rights
Safety & Health Activities
Asbestos Removal

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Environmental Report
Basic Environmental Policy
History of Environmental Preservation Activities
Medium-Term Environmental Plan
Reducing Air and Water Pollution
Handling of Chemical Substances
Logistics
Environmental Complaints
Overview of Environmental Impact
Environmental Accounting
Products and Technologies for Environmental Conservation
Plant-Derived Biomass Material
Extremely Eco-Friendly Materials
Unitika Disaster Area Reconstruction Team
Waste Storage / Transportation
Surveying /Measurement
Decontamination Products
Production Site Information

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Message from the President

UNITIKA Group
Corporate Social Responsibility Report 2013

On the publication of our CSR report

Kenji Yasue
President

An Unchanging Approach
Since our founding in 1889, Unitika has always
conducted business activities designed to harmonize
with the local area and society at large. Our forerunner,
Amagasaki Spinners, is said to have been founded tocontribute to the local area in the wake of Japan’s
abolition of the feudal clan system, seeking to revitalize
the demographics of the local area by starting a new
industry. Unitika has grown along with the local area,society, users and other stakeholders, while continuing
to pursue an approach of mutual prosperity throughharmony designed for fulfillment of shared ambitions.
This approach has not stopped at just local
revitalization. Several initiatives from our history werevery similar to today’s concept of CSR. For example, in1907 we created an elementary school to provide formal
education to the children of employees. We also
donated telephone poles and wires linking Osaka to
Amagasaki (said to be the reason the town of
Amagasaki in Hyogo prefecture has the same 06 area
code as Osaka).

Fostering Compliance AwarenessThis year marks Unitika’s 124th year since its founding.
The success of our long, century-plus history has comefrom providing products and services through a ourphilosophy of.”Contributing to society by connecting
people's lives and technology". It has also come fromthe earnest corporate activities of employees working to
implement our approach of mutual prosperity through2

Message from the President

harmony with stakeholders, as well as the gift of trust
bestowed on us by those stakeholders.
While corporate compliance problems have often
been the subject of scrutiny in frequent years, theUnitika Group has created and implemented corporate
standards that go beyond the requirements ofcompliance with laws and international rules. The Unitika
Charter of Corporate Behavior sets forth the sense ofsocial conscience that myself and each of the otherofficers and employees act with, while the Unitika Action
Standards call for employees to be ever-vigilant inensuring they act appropriately.
To ensure that we continue to merit the stakeholder
trust we have built up over many years, the Group is
working in unison to foster greater complianceawareness and to strengthen our corporate
governance.

Goals for Shaping the Unitika Group’s Identity
In 2012, we created Vision 2020, a document that sets
forth our long-term vision for the Group. It sets forththree goals for shaping the Group’s identity—to become(1) a company that grows alongside its customers as we
realize our mutual dreams, (2) a company of global
standing, and (3) a company that satisfies all its
stakeholders and in which employees take pride.
We will continue to work actively on self-reform andtaking on the challenges of the future while meeting the
expectations of all our stakeholders.
I hope that this year’s CSR Report will help give you abetter understanding of the Group’s activities.

UNITIKA GroupManagement

Corporate Social Responsibility Report 2013

Notes on FY 2013 Report
Release History and Period Covered
We have released the Unitika Environmental Report once a year since 2002. In 2006, we expanded its content to include
CSR activities and interactions with stakeholders. This year’s report covers the period from April 1 2012 to March 31 2013, butalso includes some information relating to activities taking place after April 1 2013.

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

External Group Companies

Uji Plant

Ad'all Co., Ltd.

I-Tex Co., Ltd.

Okazaki Plant

Nippon Ester Co., Ltd.

Osaka Dyeing Co., Ltd.

Sakoshi Plant

Unitika NP Cloth Co., Ltd.

Diabond Chemical Co., Ltd.

Tarui Plant

Unitika Environmental TechnicalCenter Co., Ltd.

Terabo Co., Ltd.

Toyohashi Plant
Tokiwa Mill
Kaizuka OfficeCentral R&D
Laboratories

Unitika Glass Fiber Co., Ltd.
Unitika Plant Engineering Co., Ltd.
Unitika Trading Co., Ltd.
Unitika Textiles Ltd.

Union Co., Ltd.
Unitika Sparklite., Ltd.
Unitika Spinning Co., Ltd.
Unitika Berkshire Co., Ltd.
Unitika Realty Co., Ltd.

Unitika Logistics Co., Ltd.

Release Date and Format
This report will be made available for viewing on the Unitika website in October 2013. Since the inception of this report in 2002,
Unitika has sought to minimize environmental impact by releasing it only on the website and not in paper format. The nextreport is scheduled for release in October 2014.

Terminology used in this report
CSR : Corporate Social Responsibility.
Stakeholders : Customers, shareholders, suppliers, society, local communities, employees, and other individuals and organizations that havevested interests in a company.
Corporate governance : Decision-making methods designed for the sound operation of a company
Compliance : The observance of laws and corporate ethics.

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Notes on FY 2013 ReportUNITIKA GroupManagement

Corporate Social Responsibility Report 2013

Company Overview
Name: Unitika Ltd.
Founded: June 19, 1889
Capital: 26.2 billion yen (as at March 31, 2013)
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

Number of employees (consolidated): 4,534 (as at
March 31, 2013)
Sales (consolidated): 160.1 billion yen (FY 2012)
Main business areas (consolidated): Polymer businessarea: Films, resins, spunbond, biodegradable materials
Advanced materials business area: Glass fiber/
woven materials, glass beads, activated carbon fiber,
metal fibers
Fiber business area: Yarns/staple fibers/woven and knitted
fabrics, secondary products
Other: Medical business, functional foods, plant design/
construction/maintenance, apartment buildings, other

Sales(Consolidated)

Sales Share of Each Business Unit
(FY 2012, Consolidated)(Millions of yen)

250,000

Health & amenity
products, other
10.7%

200,000
150,000
100,000

Environmental/
advanced materials
8.8%

50,000
0

'08

'09

'10

'11

'12
(Fiscal year)

Operating Profit (Consolidated)(Millions of yen)

15,000

Polymers
38.2%

12,000
9,000
6,000
3,000
0

'08

'09

'10

'11

'12
(Fiscal year)

Exhibit at Eco Products 2012
The Unitika Group exhibited at Eco Products 2012, a trade fairheld at the Tokyo Big Sight exhibition center from December 13(Thursday) to 15 (Friday). Illustrating the theme For the Earth:
Building the Planet’s Future Life Together, the Unitika Grouppublicized its environmental initiatives by exhibiting products infive categories: biomass materials, recycled materials, ecofriendly materials, energy-saving materials and effective use ofresources.

4

Company Overview

Sales:
160.1
billion yen

Fibers42.3%

UNITIKA GroupManagement

Corporate Social Responsibility Report 2013

Our Philosophy"Contributing to society by connecting people's lives and technology"
Our philosophy is “contributing to society by connecting people’s lives and technology”.
We have created Vision 2020, a document that sets forth our long-term vision for the Group.
It sets forth three goals for shaping the Group’s identity—to become a company that grows alongside its
customers as we realize our mutual dreams, a company of global standing, and a company
that satisfies all its stakeholders and in which employees take pride.

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 Governance
Basic Policy
Through our management philosophy of contributing to society by connecting people's lives and technology, we at the Unitika
Group aim to be a company with a clear social presence. We have worked to achieve stakeholder-focused management by
pursuing governance strategies that include the enhancement of legal compliance and risk management and the timely andappropriate disclosure of information, and the implementation of rapid decision making.
Corporate governance will continue to be a key component of our corporate management activities.

Implementation
Unitika uses a management system that separates and specifies two sets of functions: (1) operational decisionmaking/supervisory (governance) functions and (2) business execution (management) functions. The Board of Directors isused as the organization specializing in governance functions, while policies and issues related to overall Group management
are discussed by the Business Promotion Council (which consults with the Board of Directors on particularly important items).
The Business Execution Council functions as the decision-making organization for items related to business administration andmanagement. The Company’s internal control system is led by a compliance committee headed by the President, and a CSR
Office. This system can provide timely responses by setting up methods of gathering/auditing information and whistleblower
contact points for information to be directed inside or outside the Company.
Furthermore, we work to educate our staff regarding legal compliance by conducting suitable training for new employees andnewly promoted employees and distributing Unitika Charter of Corporate Behavior and the Unitika Action Standards to allgroup employees in addition to other initiatives.

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Our Philosophy / Corporate GovernanceUNITIKA GroupManagement

Corporate Social Responsibility Report 2013

Internal Control
Unitika created an Internal Control Promotion Office in 2007, which has been working on creating internal controls for financial
reporting. In 2008, the Company integrated the departments related to internal controls to create a CSR Office that has beenworking on promoting 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 all applicable 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 forreporting to other 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, export control, 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.

Board ofDirectors(six directors)
ReportingDiscussion ofimportant issues

Reporting

Auditing

Appointing/terminating,
instructions

Executive Officers(Nine)(Including six executive officers
also acting as directors)* Execute business operations.

Board of Auditors(Four auditors)(Including two
outside auditors)
Appointing/terminating,supervision

Representative
Directors(two)President

Determining suitabilityof accounting auditing,witnessing auditing

Auditor staff

Auditing
Reporting
Reporting

CSR OfficeInstructions
Executive office, etc.
Promotion

ReportingBusiness Execution Council(Directors, Executive Officers)

Advisory
organization
ReportingMain Committees
Risk Management Committee
Compliance Committee
Export Control Committee
Environment Committee
Central Committee on Product Liability
Information Security Committee
Central Safety and Sanitation Committee
Central Disaster Readiness Committee

Business departments, Group companies

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Internal Control

Accounting
AuditorUNITIKA GroupManagement

Corporate Social Responsibility Report 2013

CSR Promotion System
Unitika’s CSR Office is an organization created to promote and oversee all CSR activity areas, such as environmental
awareness, safety measures, compliance and risk management.
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) the promotion of compliance, (2) environment, health, and safety (EHS)
management, (3) product safety, (4) export control, and (5) information security management.

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 and Central Safety and Sanitation Committee are organizations created to oversee
environmental management, and health and safety management. The Environment Committee’s main functions are examining
basic plans on environmentally aware business and verifying their progress, discussing reports of results of environmental
audits of production sites and Group companies done by the committee secretary, and discussing other major items related tothe environment. The Central Safety and Sanitation Committee discusses measures to prevent work-related accidents andother accidents/disasters, and discusses other major items related to health and safety. These two committees are higher-level
organizations that oversee the Environmental Safety Groups of individual Unitika production sites and Group companies. They
play an important role in specifying and compiling Group policies when lower-level organizations propose and implement
measures reflecting their own unique circumstances.

Export Control
Driven by a renewed awareness of the increasing importance being given globally to export control, we have revamped theExport Control Regulations, and strengthened our export control system. We have appointed an export control manager andthree other managers in business offices, and carry out daily double checks in export operations. Our system is designed sothat if a concern arises with a shipment for export, the export control committee head (who is an officer of the Company)
determines the final approval. A dedicated internal site has been created to enable the latest information on in-house systems
or amendments to statutes to be checked at any time, and measures have been created to enable rapid information sharing.
To provide large numbers of employees with correct information on trade control, we hold briefings and periodic in-housetraining for newly promoted employees (177 in FY 2012), and are planning to add export control education to our lineup ofcompliance education.

Information Security Management
Unitika’s Basic Policy on Information Security was created as a guideline on maintaining the confidentiality of information assets
and preventing their unauthorized use. It contains the Information Security Declaration, which sets forth a management/operation
system centered around the Information Security Committee, and outlines approaches to ensuring the protection and effective
use of personal information received from users and information obtained in the course of doing business.

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 toprevent 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.

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

UNITIKA GroupManagement

Corporate Social Responsibility Report 2013

Compliance Promotion
In 1998, Unitika instituted the Unitika Action Charter.
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 theminto action.
In FY 2011, additions were made to the standards in compliance with internationalrules prohibiting inhumane and unfair labor practices—forced labor, child labor andhuman trafficking.
We work to ensure that all employees are aware of compliance and that it is firmly
established by making it a component of promotion training for all staff, including
new employees.

A compliance training session

Unitika Charter of Corporate Behavior
The Unitika Charter of corporate
behavior is our basic policy on
how best to fulfill our mission as apublic-spirited corporation.
It applies to all directors andemployees 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 to earn the confidence of their consumers and customers.
2.UNITIKA shall promote fair, transparent, free competition and sound trade. They shall also ensure that theirrelationships 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 fair disclosure of corporate information.
4.UNITIKA shall strive to respect diversity, individuality and differences of their employees, to promote safe andcomfortable 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 insuch a way as to promote and 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 inphilanthropic activities, and other activities of social benefit.

Whistleblower Contact Points
We have put into effect a set of ‘whistleblower protection’ (internalreporting) regulations, and have set up two reporting contact points (oneinside, one outside the Company) to enable employees to immediately
report any malfeasance or illegal activities they encounter. Suchexhaustive measures are led by
the Compliance Committee(chaired by the President), andensure strict compliance within
the Company. The regulations
include provisions to protect
whistleblower privacy andprohibit prejudicial treatment ofthem for making a report.
A discussion between the Committee andUnitika's Whistleblower Contact Points
Contact point 1

Unitika Compliance Line
Contact point :Within CSR / CSR Group

Contact point 2

External Legal
Help Line

Reporting Instructions Reporting Instructions
Reporting/consultations
Feedback

Compliance Committee
Committee chairman:
Unitika President

All employees working for Unitika Groupan outside attorney help line

Establishment of Harassment Consultation Services
To aid in early detection and resolution of the problems of workplace sexual
harassment and power harassment, Unitika’s production sites and Group
companies have established consultation services for assisting with these
problems.

A harassment training session

8

Compliance Promotion

Reporting/consultations
Feedback

Management

UNITIKA Group
Corporate Social Responsibility Report 2013

Unitika Purchasing Policy
Purchasing Policy
Unitika purchasing departments will engage in transparent, fair procurement practices that meet personal and community
standards. They will uphold the Company’s duty to engage in responsible procurement activities, placing emphasis on CSR
activities.

1. Legal Compliance
When executing purchasing activities, the Company will comply with laws and community standards,
engaging in transparent, fair procurement activities and aiming to be a good corporate citizen.

2. Harmony With Environment
When procuring products or services, the Company will value environmental awareness and the preservationof safety, endeavoring to purchase products and raw materials of low environmental impact.

3. Respect for Human Rights; Improving Working Environments
When engaging in purchasing activities, the Company will respect human rights and ensure that all
forms of prejudice are eliminated when work is executed. The Company will make efforts to ensure healthand safety, and to improve work environments.

4. Partners (CSR Aspects)
The Company will aim to create better partnerships, and ask partners to:
A. Comply with legal and community standards
B. Respect human rights; value efforts to improve working environments
C. Work on activities to preserve the environment and to ensure safety
D. Endeavor to ensure appropriate quality/prices and reliably on-time delivery, and to maintain and improve
products and services

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9

Home town:

Fukuoka

Skills:Playing piano, swimming, sprinting, making faces

Hobbies:

Listening to music, writing letters

Dream job:

To become a star able to amaze the world

Unitika Purchasing Policy

UNITIKA GroupCSR Report

Corporate Social Responsibility Report 2013

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, incompliance with these 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
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.

Product
Liability
Review
Board

Product
Liability
Review
Board

Product
Liability
Manager

Product
Liability
Manager

Main work areas
Reviews pertaining to safety issues in
product designs/specifications,manufacturing and distribution
Reviews pertaining to product displays
and warnings
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 handlingand useCreating and reviewing product handling cautions for display on productcontainers, wrapping and tags
Creating and distributing product safety data sheets

Product Safety Record for Fiscal 2012
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.

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Ensuring Product Safety / Quality Assurance Activities

UNITIKA GroupCSR Report

Corporate Social Responsibility Report 2013

Relationships with Shareholders & Investors
Seeking to pursue a stakeholder-oriented business style, the Unitika Group strives to create several opportunities to enable
timely information disclosure to shareholders and potential investors. The IR/Public Relation Group implements activities toensure these opportunities run smoothly, and works to augment dialogs with shareholders and potential investors.

IR Activities
Ordinary General Stockholder Meetings
Held every year in late June. Outlines the latest business conditions and gives shareholders an opportunity to dialog,
seeking to provide a better understanding of the Company’s current management environment and policies.

Announcements of Financial Statements & Explanatory Sessions
Unitika conducts a variety of financial data disclosure activities, including twice-yearly second quarter and full 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 specific information 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
Unitika’s website contains the Investor Relations page for shareholders and potential investors that discloses IR informationand press releases on products and services. There is also an archive of past short-form financial statements, IR briefings
materials and securities reports.

Share Status (as of 31 March, 2013)
Total Number of Shares Issued: 577,523,433
Number of Shareholders:

58,530

Number of Unit Shareholders:

50,279Distribution of Stocks

Individual, Other
57.6%

Financial Institutions
24.6%

Financial Product Brokers(Securities Companies)
2.9%

Other Corporations
3.9%
Foreign Corporations
11.0%

Fishing Show Osaka 2013
Unitika exhibited at the Fishing Show Osaka 2013 trade fair heldfrom February 1 (Friday) to 3 (Sunday) at the Intex Osaka
exhibition center. This year’s theme of Get Force publicized how
Unitika’s fishing products lineup brings people food from the sea
through the power and know-how of technology. Unitika’s expert
staff held seminars attended by sellout crowds of visitors. A later
seminar featured an appearance by Unitika's Mascot Girl Rina
Matsuda, who enthralled the audience with the story of her recent
introduction to squid lure fishing.

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IR Activities / Share Status

UNITIKA GroupCSR Report

Corporate Social Responsibility Report 2013

Contributing to the Community and the Environment
The Unitika Group is seeking to protect the environment, preserve biodiversity and ensure solid educational opportunities forchildren by disseminating information on a wide variety of topics ranging from local beautification drives and disasterreadiness programs, to woodland conservation and educational aid in developing countries.

Community-focused Initiatives
ECO Kyoto
Eco Kyoto 21 is a system run by Kyoto prefecture to certify and register production sites that play aleading role in environmental preservation or local recycling efforts. Unitika's Uji Plant is participatingin the system, and in December 2004, was certified and registered in the system's Ecostyle category
for production sites and organizations engaging in highly original environmental awarenessactivities.

Participation in Local Beautification Activities
As part of their efforts to give back to the community, Unitika production sites actively take part in environmental beautification
drives to clean up their surroundings. At the Okazaki Plant, about 80 volunteers clean the area around the plant on the second
Thursday of every month. About 150 volunteers also came out to clean the area around the plant on May 26 (Saturday). In
October, about 100 volunteers from the plant joined with local volunteers to clean the Yahagi River as part of a river and sea
cleanup drive. The Uji Plant conducts its Clean Uji beautification and cleanup activities in the area around the plant threetimes per year. A total of 1,038 volunteers turned out for the FY 2012 cleanups, held on June 28 (Thursday), September 6(Thursday) and March 1 (Friday). In addition to its regular beautification drives, the Unitika Sakoshi Plant also took part in the
Ako Cleanup Campaign, with 35 volunteers from the plant cleaning the surrounding area on May 30 (Wednesday). Plant
members also turned out for a town center cleanup campaign organized by members of a local association of commerce andindustry. Another of the many Unitika plants active in cleanup efforts is the Tarui Plant, from which 21 volunteers took part in an
Aikawa Waterside Park cleanup drive in the area around the plant.

Volunteers from the Okazaki Plant taking part in a local cleanup drive

The Sakoshi Plant’s beautification efforts included
taking part in the Ako Cleanup Campaign

The Uji Plant’s Clean Uji activities

The Tarui Plant’s cleanup efforts in
Aikawa Waterside Park

Communicating with Local Authorities during Disasters
The Okazaki Plant has made agreements with local governments and fire departments to open as a refuge for local residents
during floods, and to provide the fire-prevention equipment it has on hand (such as chemical fire extinguishing agents and oilmats) during disasters such as earthquakes.

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Community-focused Initiatives

CSR Report

UNITIKA Group
Corporate Social Responsibility Report 2013

Preserving the Environment and Biodiversity
Participation in Biodiversity Declaration
Unitika has endorsed the Declaration of Biodiversity released by trade organization Keidanren in 2009, and is partnering with itin promoting the declaration. The declaration contains seven principles covering areas such as harmonizing businessactivities with natural cycles, and promoting business oriented to these cycles. Unitika’s business activities are designed with
an awareness of biodiversity.

Unitika no Mori ('Unitika Wood') Project
To mark its 30th year, Unitika’s labor union (Unitika Union)
started a project called Midori no Plan ('Green Plan') in 2003.
Designed to give back to the community and protect theenvironment, the project has included planting Japanesechestnut oaks, konara oaks and Japanese cypresses in a 2
hectare area of mountain forest that has been named Unitikano Mori (located in Hidakagawa-cho, Wakayama prefecture).
Several times a year, Unitika employees visit the site tomaintain the forest by clearing underbrush and pruning
branches. These activities have been officially recognized by
Wakayama prefecture as 'an effort
contributing to CO2 absorption through forestation'. It is
expected to result in about 800 metric tons of carbon dioxide
absorption over next 100 years. In August 2012, 25 Unitika
employees took part in clearing the underbrush in the area toimprove tree growth.

Volunteer Activities
Unitika Union created a volunteer foundation in 1992, and engages in support activities in Japan and overseas. Its domestic
activities include environmental preservation efforts, support activities for welfare facilities, training seminars and support
activities for natural disasters. Overseas activities include international support activities such as sending volunteers to work
camps for international exchanges. It has also set up a volunteer leave of absence system enabling Unitika employees to takea fixed amount of time off from work to take part in the community service programs of nonprofit organization Japan Overseas
Cooperation Volunteers (JOCV). In September 2012, a male employee returned to work after using the system to spend two
years in the African nation of Malawi to volunteer as a science and math instructor. So far three employees have returned towork after using the system to do volunteer work.

A Unitika employee volunteering for JOCV as a math andscience instructor

13

Preserving the Environment and Biodiversity / Volunteer Activities

UNITIKA GroupCSR Report

Corporate Social Responsibility Report 2013

Disaster Prevention & Readiness Efforts
To prepare for major disasters like the earthquake and tsunami that devastated Tohoku in March 2011, disaster readinessmeasures are crucial both to fulfill the basic mission of protecting the lives of employees as well as to uphold the responsibility
to stakeholders of continuing business activities. In compliance with Japan’s Act for Promotion of Renovation for
Earthquake-Resistant Structures, the Unitika Group inspects structures and facilities of production sites, works to create
self-supporting emergency energy supply systems, and provides for home generation facilities while working on production
site energy conversion.

Disaster Readiness Training
The Unitika Group works on creating systems to prevent production accidents and accidents damaging surrounding areas,
while actively promoting training 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. As a disaster readiness measure whencreating or renovating facilities, a total of two rigorous inspections (during design and upon completion) are carried out incompliance with these standards.
The Okazaki Plant held a plant-wide disaster readiness training exercise on November 14 2012, with a general fire drill anda general earthquake drill practicing responses to an actual earthquake. The earthquake drill involved training to deal withleaks, transporting the injured, closing off spaces, and carrying out important items. The fire drill was done in collaboration with
Nippon Ester’s Manufacturing Section No. 3 and the site’s fire truck squad.

Fire-fighting training (Okazaki Plant)

Training to extinguish small fires (Uji Plant)

Other Unitika production sites also carry out training in line with fire prevention campaigns held in spring and fall. At the Uji
Plant, individual departments train in areas such as reporting, communicating, seeking refuge, aiding victims andextinguishing small fires. A total of 890 employees took part in FY 2012. Union Co. has prepared for fires caused by major
earthquakes by providing training for steps ranging from setting up a disaster response center to fire-fighting, and providing
LNG emergency shutoff training. The Tarui Plant has provided training in the use of fire truck fire hoses and accessing waterfrom fire hydrants. The Sakoshi Plant has provided fire-fighting training for individual departments.

Fire hose training (Union Co.)

14

Fire truck fire hose training (hose connection) (Tarui Plant)

Disaster Prevention & Readiness Efforts

Fire truck handling training (fire hose use) (Tarui Plant)

UNITIKA GroupCSR Report

Corporate Social Responsibility Report 2013

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

Personnel System
Unitika’s personnel system is designed to encourage employees to develop their careers and improve their abilities. It offers
several different educational programs to enable employees to work on their personal growth with a high degree of motivation
and an ambitious mindset. These programs are offered systematically and continuously to enable organizational growth andboost corporate competitiveness.

Personnel Rotation System
Unitika’s personnel rotation system is designed to enable systematic education of the human resources needed for theongoing running of organizations in accordance with the job level of each individual. It is designed to enable the careerdevelopment of each employee, to create synergy among organizations and to lead to better business opportunities andcorporate performance. Employees self-report the positions they want to be posted to, which are considered along with theneeds of the Company, providing the best possible understanding of expected employee roles and ability development goals,
and enabling more effective operations.

Evaluation System
Unitika’s evaluation system is designed to provide a more accurate understanding of the roles employees expect to occupy,
and to provide more impartial evaluations of the individuals producing the results needed to fill those roles. Employees are
given yearly performance evaluations that rate them based on their competency, ability, role improvement, attainment of
results, and job execution processes. They are also given twice-yearly performance evaluations in accordance with theCompany’s target management system. These evaluations form the core of an evaluation system that helps ability
development and education of each employee, is linked to pay raises, promotions and bonuses, and enables reliable
feedback through discussions of evaluation results with superiors.

Human Resources Education
Driven by the awareness that raising the overall minimum ability level of employees will strengthen our organizational corecompetency, Unitika has recently created an education and training system. Positioning on-the-job training tailored to each
employee’s career path as the core of human resources training, the system enables more effective follow-up training foryoung employees and more effective education and support for supervisors. The system’s off-the-job training programs
provide augmented educational opportunities for each job level, including a greater number of programs than before aimed at
improving management abilities. Moreover, a greater range of function-specific programs will be offered to strengthenfunctions for specific job types in the areas of sales, technology development and manufacturing. To promote overseas
business, training programs for global human resources will be provided systematically and continually, fostering a global
mindset and improving skills.

Education/Training System
Ability training period (first 3 years at Unitika) and follow-up training,on-the-job training for reinforcement
Level-specific education (such as for high-level managers, new managers,
supervisors and other newly promoted employees)
Selective education (such as for core leaders and young leaders)
Function-specific education (for sales positions, technology development
positions and manufacturing positions)
Overseas study system for technical positions
Self-improvement support (such as help gaining qualifications andcorrespondence courses)

Training Programs for Global Human Resources
Placement in overseas-related positions oroverseas bases through personnel rotation
Overseas trainee system
Assistance for taking foreign language lessons
Overseas-related job training (global courses)
TOEIC testing recommendations, other

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.
Unitika introduced return-to-work support guidelines for employees who have taken extended leave due to mental illness.
We manage and promote employee health by supporting all employees at every stage from preventing illness to facilitating
their return to work.

15

Personnel System / Human Resources Education / Employee Mental HealthUNITIKA GroupCSR Report

Corporate Social Responsibility Report 2013

Equal Opportunity
Women Employees

Reemployment System

We employ a large number of female employees and have nogender-biased employment or promotion policies.

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.
In addition, we are planning to enact systems and to
improve existing ones, with the connection between
pensions and employment always kept in mind.

Support System for Work and Childcare

Leave

Work time

Other

Menstrual leave

As of July 1, 2013

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

End of 3rd yearof elementary school
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
*Does not apply to employeeson flextime system
Hospital visits permitted
within working hours

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
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,
and also to address Japan's aging society issues, Unitika fosters a
corporate environment that allows employees to take leave for bothchild-raising and elder care, and in fact, Unitika offers leave durations forthese, and also for care for sick children, that are longer than those
stipulated by law. Also, based on Japan's "Next-Generation Child-Raising
Support Measures Promotion Law," the company is also involved inpromoting male participation in child-care, with child-care leave available
to both male and female employees.

Employees taking
childcare leave

Employees taking leave
to care for elderly relatives

2008

18(1)

4

2009

16(0)

1

2010

17(0)

1

2011

19(2)

1

2012

14(4)

1

*Numbers in parentheses indicate number of male employees who
took childcare leave.

Employing People with Disabilities
Unitika not only employs enough personnel to meet the legally mandated percentage of
employees with disabilities (2.0%) but also cooperates with local employment agencies
and welfare facilities in activities to provide self-reliance support to people withdisabilities.

Percentage of Unitika employeeswith disabilities
2.79% (as of the end of March 2013)

Promoting Awareness of Human Rights
Raising Human Rights AwarenessEliminating Unfair Labor Practices

Unitika engages in Groupwide human rights education. We
have documented the importance of respect for humanrights in the Unitika Charter of Corporate Behaivior provided
to all employees, and have created an organization forfurthering human rights education. As a member of the
Corporate Report Association of Human Rights Issue,
Unitika works on human rights issues in a variety of ways,
such as by gathering human rights educational information.
In line with the enactment of Japan’s Equal Employment
Opportunity Act, the Company has created help centers ineach workplace for provide support for issues such as
sexual harassment and power harassment, raising
employee consciousness and awareness of these
problems.

Unitika Group companies and overseas affiliates have madedeclarations of their refusal to take part in any form of forcedlabor or child labor in violation of international agreements
such as the International Covenants on Human Rights or theConvention on the Rights of the Child. The Unitika Action
Standards document the Company’s refusal to permit these
unfair labor practices or human trafficking for the purpose ofsuch practices.

16

Equal Opportunity / Promoting Awareness of Human Rights

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, andWelfare. We promote fair recruitment practices by
distributing the manual at meetings and training seminars forinterviewers and those involved in the selection process, andensuring that all concerned are familiar with its contents.

UNITIKA GroupCSR Report

Corporate Social Responsibility Report 2013

Safety & Health Activities
The Unitika Group engages in health and safety management activities designed tocompletely eliminate accidents resulting in lost work time. They include original
initiatives created by individual production sites and Group companies under the
direction of the Unitika Central Safety and Sanitation Committee. The Committee
specifies a new set of key policies every three years, and creates health and safety
guidelines for use in promoting activities. Activities are now being implemented
under the 15th set of guidelines (put into effect in 2011). Production sites and Group
companies take an active approach to implementing activities, using the guidelines
to create annual activity plans at the start of every fiscal year. The culmination ofthese activities is the Unitika Health and Safety Conference, a once-yearly
opportunity for Unitika employees to gather and gain inspiration by sharing activity
reports, recognition for outstanding achievements, and speeches.

Results of industrial safety and health activities over the last 10 years
Number of accidents causing
lost work time
(Rate)
Rate of lost work time

(Number)

12

1.2

10

1.0

8

0.8

6

0.6

4

0.4

2

0.2
0

0
'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

(Fiscal year)

Asbestos Removal
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. Friable
and non-friable asbestos that has been sealed off or enclosed is being treated as needed, sometimes in conjunction withperiodic repair work.
To verify worker health, we have provided asbestos-related health checkups to all current and former employees requesting it
who have handled asbestos in the past. As at March 2013, our past and current employees included six certified industrial
accident victims (of whom five have died) and three victims certified under the Law Concerning the Relief of Health Damage
Due to Asbestos (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.

17

Safety & Health Activities / Asbestos Removal

Environmental Report

UNITIKA Group
Corporate Social Responsibility Report 2013

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

Unitika Global Environment Charter
The growth and development of mankind is rapidly altering our planet's air, water and soil, threatening both
the global biosphere and our own future, since both must depend on a finite ecosystem. As a corporation withmore than a century of business activities contributing to the public good, we are highly aware of thedemanding 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 thecore of our business activities.

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

Action Guidelines

1

Continual awareness ofthe 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.

18

Basic Environmental Policy

UNITIKA Group

Environmental Report

Corporate Social Responsibility Report 2013

History of Environmental Preservation Activities
Unitika's Environmental Preservation Activity History
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

September 1973
October 1991

Created and implemented Global Environmental Charter.

May 1993

Environmental Preservation Regulations were reborn
as Environmental Regulations.
Established Environmental Committee, organization
which meets annually.

May 1994

Started environmental audits (once per year).
(Voluntary audits by each production site andinternal audits by headquarters staff.)

July 1996

Created targets for first Medium-Term
Environmental Plan (FY 1997 to 1999).

activities, to enable compliance with regulatory andIn 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

September 1996

direction for our environmentally-aware management stylethat has continued to this day. In 1998, we created theUnitika Charter of Corporate Behavior, a document that sets
forth the basic 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

Revised Environmental Preservation Regulations,established Environmental Preservation Committee.

April 1993

environmental measures and outward-directed production
standards values.

Created and implemented Environmental
Preservation Regulations.

Started publishing Kankyo, our in-housenewsletter on environmental issues.

October 1997

Started activities aimed at becoming
ISO 14001-certified at our major production sites.

January 1998

Created and implemented Unitika Action Charter.

January 1999

Unitika Chemical was awarded ISO 14001
certification (first in Group).

October 2000

Created targets for second Medium-Term
Environmental Plan (FY 2000 to 2002).

awareness.
The Unitika Action Standards created and implemented in

April 2001

April 2001 expanded on the Unitika Action Charter by setting

October 2002

Published Unitika Environmental Report.

forth specific action standards for Unitika organizations andOctober 2002

Created targets for third Medium-Term
Environmental Plan (FY 2003 to 2005).

October 2005

Created targets for fourth Medium-Term
Environmental Plan (FY 2006 to 2008).

October 2008

Created targets for fifth Medium-Term
Environmental Plan (FY 2009 to 2011).

October 2011

Created targets for sixth Medium-Term
Environmental Plan (FY 2012 to 2014).

employees to comply with in the performance of their routine
business activities. The Standard of Corporate Behavior
represent a clear step toward corporate activities grounded
in a mindset of corporate social responsibility (CSR). They
cover areas such as the environment, safety, compliance,and coexistence with the public good and stakeholders.

Created Unitika Action Standards.

ISO 14001-Certified Unitika Organizations
Unitika is working on becoming certified under ISO 14001-theinternational standard for environmentally-aware corporate
activities. Since 1999, five production sites (Uji, Okazaki,
Sakoshi, Tarui and Tokiwa) and 11 major Group companies
have become certified. We have started activities to help ouraffiliates obtain ISO 14001, and have been conducting
environmental audits of each company.

19

History of Environmental Preservation Activities

April 1999
November 1999

Ad'all Co., Ltd.
Unitika Sakoshi Plant

January 2001

Unitika Textiles Ltd., Tokiwa Mill

March 2001

Unitika Uji Plant

March 2001

Unitika Uji Plastic Plant

March 2001

Unitika Central R&D Laboratories

March 2001

Unitika Glass Fiber Co., Ltd., Kyoto Plant

March 2001

Unitika Environmental Technical Center Co., Ltd.,
Kinki Office

October 2001

Unitika Okazaki Plant

October 2001

Unitika Plant Engineering Co., Ltd., Chubu Office,2nd Business Division

October 2001

Nippon Ester Co., Ltd., Okazaki Plant

October 2001

Unitika Environmental Technical Center Co., Ltd.,
Chubu Office

December 2001

Unitika Tarui Plant

December 2001

Unitika Plant Engineering Co., Ltd., Tarui Group

December 2003

Unitika Glass Fiber Co., Ltd., Tarui Plant

February 2004

Diabond Chemical Co., Ltd.

September 2004

Terabo Co., Ltd.

June 2008

Union Co., Ltd.

UNITIKA Group

Environmental Report

Corporate Social Responsibility Report 2013

Medium-Term Environmental Plan
The Unitika Group implements systematic improvements having established a Medium-Term Environmental Plan thatsets 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 sixth Medium-Term Environmental Plan,
which now applies to all external group companies and is based on fiscal 2010 results.

Sixth Medium-Term Environmental Plan (FY 2012-FY 2014)
Priority Issues

Targets

FY2012 Results

Fig. No.

4% reduction relative
to FY 2010 level

Achieved(1)

1Reduction ofindustrial waste

2

Improvement of loss recycling
rate in production process

1% improvement relative
to FY 2010 levelNot achieved(2)

3

Improvement ofenergy consumption rate

4% improvement relative
to FY 2010 levelNot achieved(3)

4

Reduction ofenergy consumption

4% reduction relative
to FY 2010 level

Achieved(4)

5

Reduction of CO2 emissions
from energy generation

10% reduction relative
to FY 2005 level

Achieved(5)

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

Quantity of processed industrial waste products

Rate of recycling

Fig.1

t
10,000

Fig.2

%
100

8,000

Reference90
Reference

6,000

80

4,000

70

2,000

60

0

'08

'09

'10
Fiscal year

'11

50

'12

Energy consumption rate

'10
Fiscal year

'11

'12

Fig.4

(crude oil equivalent)Thousands of kL(indexed to FY2010 level = 100)

300

120

250

Reference

100

Reference
200

80

150

60

100

40

50

20
0

'08

'09

'10
Fiscal year

'11

0

'12

Changes in CO2 emissions from energy generation

'08

'09

'10
Fiscal year

'11

'12

Fig.5
Unitika Domestic Plants & Internal Group Companies
External Group Companies

Thousands of tons
500
Reference
400

Note:Energy consumption rate =Energy consumption(oil equivalent)(Thousands of KL)/ output(Thousands of tons)

300
200
100

20

'09

Energy consumption quantity

Fig.3

140

0

'08

'05

'08

'09
'10
Fiscal year

Medium-Term Environmental Plan

'11

'12

UNITIKA Group

Environmental Report

Corporate Social Responsibility Report 2013

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
20

t
800

15

600

10

400

5

200

0

'08

'09
'10
Fiscal year

'11

0

'12

SOx emissions

'08

'09
'10
Fiscal year

'11

'12

Environmental load (COD)

t
150

t
400
300

100
200
50
100
0

'08

'09
'10
Fiscal year

'11

0

'12

'08

'09
'10
Fiscal year

'11

'12

Total waste water quantity
Unitika Domestic Plants & Internal Group Companies
External Group Companies

Thousands of m3
60,00050,000Note:NOx=nitrogen oxides, Sox=sulfur oxides,
COD=chemical oxygen demand

40,00030,00020,00010,000
0

'08

'09
'10
Fiscal year

'11

'12

National Staff Training
In October, Unitika’s Osaka headquarters, and the Uji and Okazaki
Plants held a four-day national training seminar for local employees of
Unitika overseas affiliates. Held as part of Unitika’s human resources
training to improve overseas business, and aimed at staff working atoverseas local affiliates, the seminar is a regular annual event designed
to provide a better understanding of Group business, improve motivationand team spirit, and provide an opportunity for mutual interaction among
Group employees from Japan and overseas. This year’s seminar wasattended by six employees from Tusco (Thailand), Unitika Plastics(Thailand), Emblem Asia (Indonesia) and Unitika Trading (Vietnam).

21

Reducing Air and Water Pollution

UNITIKA Group

Environmental Report

Corporate Social Responsibility Report 2013

Handling of Chemical Substances
Control of PRTR System-Regulated Substances
The Unitika Group works to monitor and reduce the use of chemical substances thought to be hazardous to human healthas regulated by the Pollutant Release and Transfer Register (PRTR) system.
Emission and Transfer Amounts for PRTR System-Regulated Substances in Fiscal 2012
EmittedTransfered

Atmosphere

Water

Total

Total

Acetaldehyde
Bisphenol A-Caprolactam
Dichloropentafluoropropane
Dichloromethane(Methylene chloride)
Dimethylformamide
Terephthalic acidTolueneBoron and its compounds
Diphenyl ethers
Hydroterphenyls

5
0
15
4
22
0
0
12
0
0
0

0
0
0
0
0
0
0
0
10
0
0

5
0
15
4
22
0
0
12
10
0
0

0
4
0
0
9
1
2
9
0
1
11

Unitika Domestic Plants &Internal Group Companies Total

46

10

56

27

Unitika External Group Companies Total

12

0

13

10

Emission/ transfer amounts (tons/year)

Substance

Emission/Transfer Amounts of Substances Subject to the PRTR System

200
150
100
50
0

'08

'09

'10

'11

'12

Fiscal Year

Transfered

Emitted(annual tons)

Response to Amended Chemical Law
In response to amendments to Japan’s Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.,
Unitika is working to comply with systems put into effect in April 2011, such as reporting systems for general chemical substancesand priority assessment chemical substances. We are disseminating information throughout the Group, working to keep staff
informed of the amended information applicable to all process phases, and working to determine the applicable substances.

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. switchingtransport from road to rail and/or shipping) and streamlining of delivery systems. In fiscal 2012, as a specified consigner (aJapanese legal designation applied to consigners who ship 30 million tons of freight or more per year,) we reported 82 million
tons of freight and 26,000 tons of CO2 emissions to the government.

Environmental Complaints
When engaging in business activities, the Unitika Group remains continually mindful of their impact on the lives of local
residents. 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.
Complaints from Surrounding Neighborhoods
No. of Incidences
10
Others8

Offensive Odor

6

Noise

4

Water Quality

20

Air quality

'08

'09

'10

'11

'12

Fiscal Year

Applicable scope: Domestic plants and external group companies

22

Handling of Chemical Substances / Logistics / Environmental Complaints

UNITIKA Group

Environmental Report

Corporate Social Responsibility Report 2013

Overview of Environmental Impact
Environmental Impact From Business Activities (FY 2012 Figures)
The diagram below shows the Unitika Group's materials flow for FY 2012.

INPUTOUTPUT

Atmospheric emissions
SOx : 41 tons
NOx : 437 tons

Water
41,210,000 m3
River Water : 35,218,000 m3
Ground Water : 5,900,000 m3
Drinking Water : 21,000 m3
Industrial Water : 71,000 m3

EnergyCO2 : 338,000 tons
Dust : 10 tons

Waste water
Waste water quantity : 42,689,000 m3
COD emission quantity : 238 tons

UnitikaGroup'sbusiness
activities

Waste products
Final external disposal quantity : 5,868 tons

185,000 kL(crude oil equivalent)In te

rn a l r e cy cli ngMaterial recycling : 12,310 tons
Thermal recycling : 0 tons

Raw materials

Chemicals*
Emission quantity : 69 tons
Transfer quantity : 37 tons

All products
Production quantity : 260,000 tons

287,000 tons

External recycling
12,374 tons

*Substances requiring registration under
PRTR System

23

Overview of Environmental Impact

UNITIKA Group

Environmental Report

Corporate Social Responsibility Report 2013

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
for environmental 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, 2012 to March 31, 2013
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 2012 environmental investment was 288 million yen. The main areas of environmental investment were
investment to reduce environmental impact and investment to reduce raw materials.
Environmental costs were 1,586 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

Remarks

Capital investment

Cost

230

639

Pollution (water, air and noise pollution) prevention measures

Pollution prevention costs
Businessarea costs(Millions of yen)

FY 2012

Environmental preservation costs

270

Energy saving, global warming prevention

Resource recycling costs

55

377

Waste generation control, Material recycle

Upstream/downstream costs—

1

Green procurement activities

Management activity costs

180

Environmental management system maintenanceenvironmental education, impact monitoring

R&D costs—

368

Developing environmentally-friendly products

CSR costs—

37

Forestation improvements, beautification campaigns

Environmental damage costs—

14

Quantity-based taxes

288

1,586

Total

Environmental Preservation Costs
The table lists items with a clear basis for calculation that have high substantive benefits for environmental preservation.
Note that inferred benefits have not been calculated.
(Millions of yen)Item

FY 2012

Income from sale of recycled resources

176

Cost reduction from energy-savings

33

Reduction of costs associated with energy-efficient
power sources and industrial waste reduction

9

Water usage reduction from recirculation

4

24

Environmental Accounting

UNITIKA Group

Environmental Report

Corporate Social Responsibility Report 2013

Products and Technologies for Environmental Conservation

Plant-Derived Biomass Material
Terramac ®
Terramac is a biomass material made from a plant-based polymer, Ingeo by Nature Works. It eventually degrades into carbon
dioxide and water, which are then absorbed into plants that can again be turned into Terramac. Terramac is finding its way intoa wide range of consumer applications, such as wrapping films, food containers, teabags, bath towels, construction materials
and electronic components.
Among these applications, Unitika has developed the world's first heat-resistant foam containers and food containers madefrom polylactic acid. These products are attracting worldwide attention for their ability to hold hot water andmicrowave-compatibility. Terramac is also used as mobile phone casings where high durability and heat resistance are
required, and as components of digital multifunction printer which also need to be flame-retardant. In January 2012, Unitika
released a new shock-resistant grade for injection molding. While biomass content increased to over 80% in this grade, theshock and heat resistance improved to levels on a par with ABS resins.
In May 2011, Unitika online shop launched Terramac products with carbon offset. We have made all effort to minimize thecarbon footprint of Terramac products from cradle to grave. With the emission rights created from forest sink projects, we
further offset the remaining carbon dioxide emission. By introducing carbon offset options, Unitika is aiming to help reducegreenhouse gases. For the customers, the options on already eco-friendly Terramac products offer an opportunity to turn their
shopping into more environmentally-friendly.
Combining the natural benefits of plant with human technology, Terramac is designed to be the ideal material for the planet
and its inhabitants.
Terramac is a part of material circulation system on the Earth
Unitika's proprietary technology

Reforming
Molding

Terramac
Pr

Po
lym
er

n
tio
iza

Polylactic
acid

e
oc
ng
ssi

Lacticacid

Fermentation

yclin

TERRAMAC'smaterial circulation system

c
To re

g pro

cess

Co
mb
ustio
B io
n
deg
r ad ing

Products

Starch

Se

pa
ra
tio
n
Biomass resources(such as corn)

PhotosTerramac products with carbon offsets.

esis
ynth

Carbondioxide
Water

Human activities, chemical reactions
Reactions caused by activities of organisms

Extremely Eco-Friendly Materials
Xecot ®
Made from castor oil extracted from castor oil plant seeds,
Xecot is a highly heat-resistant polyimide resin that can beused as a super engineering plastic. It was developed byproprietary research and technology, and enables
high-efficiency, high-quality production. It has a higher
melting point than conventional heat-resistant polyamides,
and offers outstanding heat resistance, crystallization,
deflection temperature under load, and reflow resistance.
Its low water absorbency and its chemical resistance andelectrical characteristics are also outstanding, making itsuitable for use in a wide range of applications such as

25

electrical and electronic components, automotive parts,
heat resistant films and heat resistant fibers. It’s a biomass
plastic that can provide high functionality and quality while
helping preserve the environment.

Plant-Derived Biomass Material / Extremely Eco-Friendly Materials

Castor oil plant seeds

UNITIKA Group

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Unitika Disaster Area Reconstruction Team

Harnessing the power of theUnitika Group to help reconstruct
Japan’s disaster-struck areas.
Unitika

Filament nonwoven fabrics
Compound fibers

To help reconstruct the areas devastated by the Tohoku
earthquake and tsunami of March 2011, Unitika has
harnessed the power of its Group companies andbusiness departments to create the Unitika Disaster Area
Reconstruction Team. Drawing on technologies andsuccesses accumulated in areas such as nonwoven
fabrics, industrial materials, fibers and environmental
surveying/measurement, the Team is working on projects
such as processing rubble and waste materials,
providing products helpful for decontamination andtaking radioactivity measurements. The combined powerof the Unitika Group is helping reconstruct and revive theregion to its former prosperity.

Waste Storage/
Transportation

Unitika Trading

Fibers

Unitika
Disaster Area
Reconstruction
Team
Unitika Environmental

Waste Storage/
Transportation
Decontamination
Products

Technical Center

Environmental surveying/measurement
Surveying/
Measurement

Waste Storage / Transportation

AppealHigh-function covering sheets

AppealLightproof protective mats

Waterproof, deodorizing, flameretardant sheets for covering rubble
and waste. Have been used ascovering sheets for disaster rubble in
Miyagi prefecture.

Lightproof protective mats with good
weather-resistance and outstanding
thermal adhesiveness. Made from thefilament nonwoven fabric Eleves, whichis created from a polyester/polyethylene
core-spun yarn.

Unloading chutes(Sky-Wood-Chute type)
Unloading chutes made of polyester
nonwoven fabric, that enable unloading
without the use of heavy machinery.
Can be installed and operated by small
work crews and provide constantyarding capacity, enabling use fortransporting and unloading rubble andwaste.

26

Terramac sandbags
Biodegradable sandbags madefrom polylactic acid fibers that are
degraded by soil bacteria into
carbon dioxide and water after use.
Available in standard (20 kg) andlarge (1.8 metric ton) types.

Waterproof radiationblocking sheets
Waterproof radiation-blocking sheets
made from compound fibers containing
inorganic matter of high specific gravity.
Provide the same strength, durability,
weather-resistance, water-resistance andflexibility as conventional waterproof
materials or tarpaulins.

Eleves capping sheets
Gas-permeable waterproof sheets
made from the filament nonwoven
fabric Eleves, which is created from apolyester/polyethylene core-spun yarn.
The ends of the original fabric areheated and compressed in advance toenable the portions deposited in thesite to repel water.

Unitika Disaster Area Reconstruction Team / Waste Storage / Transportation

Weather-resistantsandbags
Made from high-strength spun-dyed
black polyester fiber with outstanding
weather resistance, enabling long-term
outdoor use. Types for one-year use
and three-year use are available.

UNITIKA Group

Environmental Report

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Unitika Disaster Area Reconstruction Team

Surveying / Measurement

Future radioactivity prediction
The Team simulates radiation dose
rates several years in the future, andprovides radiation distribution charts
designed for easy understanding by
the general public.

Specialized education on work
such as decontamination

Local radiation surveying

Radiation measurement

Type I Radiation Protection Supervisors
provide education in the local area,
reducing the workload of busy radiation
managers.

Specialist measurement staff measureradioactivity levels, enabling reliable
monitoring data to be obtained.

The Team is certified with the ISO 17025
international accreditation standard(food category), and can provide reliablemeasurement values for radioactive
substances.

Decontamination Products

CsCATCHER cesium-absorbing
fiber material

Protective clothing materials

A fiber product that uses Prussian blue
to enable cesium liquated in water tobe selectively absorbed. Prussian bluethat absorbs cesium drops down,
enabling prevention of secondary
contamination.

Unitika’s protective clothing materials
include a type that combines the filament
nonwoven fabric Eleves (created from apolyester/polyethylene core-spun yarn)
with a high-performancemoisture-permeable/waterproof film, anda type that uses a base of biodegradable
Terramac nonwoven fabric.

Exhibit at RADIEX 2012
An organization of members from several related departments in the
Unitika Group, the Unitika Disaster Area Reconstruction Team exhibited at
RADIEX 2012 (Radioactive Decontamination & Radioactive waste
Disposal International Exhibition) held at Science Museum, Tokyo from
September 24 to 26. Designed to illustrate the combined innovative abilityof the Unitika Group as a whole, the Team’s exhibit showcased materials
and solutions in the areas of waste treatment, decontamination andsurveying/measurement. The radioactivity decontamination exhibits
generated a lot of interest, and the event attracted 10,450 visitors over thethree days it was held. The Unitika booth also attracted a constant streamof visitors, who were very interested in our innovative ideas.

27

Unitika Disaster Area Reconstruction Team / Surveying / Measurement / Decontamination Products

UNITIKA Group

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Production Site Information
Air

Production Site
Unit

Water
BOD

COD

SuspendedmatterOil

Total Nitrogen Total Phosphorus

ppm

mg/l

kg/day

mg/l

mg/l

mg/l

kg/day mg/l

—

29

12

1131

30

16

—

722

—

98

70

—

16

3

293

5

1

—

103

—

4

0.05

100

—

93.3

25

719

20

10

15

385

2

51

0.003

76

—

15

3

82

4

0

2

38

0.4

8

0.12

89.3

—

—

—

348

3.9

10

15

—

2

—

0.05

33

—

—

—

65

2.8

1

1

—

0.1

—

0.3

180

11.5

—

40

109

50

5

120

43

16

5.6

0.06

75

1

—

5

29

4

1

2

1

0.1

0.1

0.3

130

17.5

—

80

—

100

2.5

—

—

—

—

0.002

82

0.3

—

<1

—

<1

<1

—

—

—

—

Dust

NOx

g/Nm3

SOx

ppm

K-value

0.025

199

0.01

kg/dayUji Plant

Location—————————
Main products

5 Uji-Tonouchi, Uji-shi,
Kyoto, Japan 611-0021

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

Okazaki Plant

Nylon resin, nylon fiber,
engineering plastics,
nylon/polyester film

4-1 Hinakita-machi, Okazaki-shi,
Aichi, Japan 444-8511

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

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

Tarui Plant

Polyester resin, polyester, fiber,
spunbond (filament nonwoven fabric),
medical equipment

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

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

Tokiwa Mill
Site area: 64,530 m2
ISO 14001 Certification No.
JCQA-E-0221

Toyohashi Plant

0.3

180

0.49

—

—

11.9

70

5

120

—

16

—

0.01

56

0.02

—

—

1

<1

<1

6

—

0.04

—

Site area: 270,804 m2
ISO 14001 Certification No.
—
Regulation values* Values in table

28

Measured FY2012 values

Production Site Information

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

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

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).

Inquiries

CSR Office
4-1-3 Kyutaromachi, Chuo-ku, Osaka 541-8566, Japan
Phone: +81-6-6281-5125
Website: http://www.unitika.co.jp/