Environmental and Social Report

2012Technologies to pass our global environment down to future generations.

Ourcompany
motto

Contributing to the nation and society through industry.

Our
company
credo

Quality First / Cost Reduction / R&D Efforts

The Spirit Enshrined in Our Company Credo
1. To Embody the Dai-ichi Kogyo Spirit, Put Quality First into Practice
We believe the key to continuing growth for our company is to earn and maintain the trust of customers within the field of specialty
chemicals. Each of our employees must pay constant and profound attention not only to product quality, but also to product evaluationby consumers.
2. To Embody the Dai-ichi Kogyo Spirit, Try to Pursue Cost Reduction Opportunities
Conditions necessary for the best production in terms of quality and quantity include reducing production costs through cost reduction,
increasing production values, and taking advantage of declining market prices. Each of our employees must discharge their duties in a
way that allows them to use their own ingenuity and creativity to achieve highly efficient results on both a spiritual and technologicalbasis.
3. To Embody the Dai-ichi Kogyo Spirit, Always Maintain R&D Efforts
Both Quality First and Cost Reduction are the fruits of R&D Efforts. R&D Efforts is the motive power for all our activities. We must
be committed to sustaining our R&D Efforts while enlightening ourselves with this concept.

Environmental and Social Report 2012: Editorial Policy

CONTENTS
Message from the President ……………………………

2

About US
Company Overview …………………………………… 3
Medium-term management plan "Change 100 Plan"…… 5
Our Products Useful in Daily Life ……………………… 7
Environmentally Friendly Products & Technological Development … 9
Selected Products ……………………………………… 10
Promoting Environmental & Social Activities
Corporate Governance / Compliance…………………… 11
Internal Control / Risk Management …………………… 12

Dai-ichi Kogyo Seiyaku has published the "Environment & Safety
Report" annually since 2003, and delivered the report about RC(Responsible Care) activities that focus on environmental, safety,
and health efforts. In 2008 we added new content on our social
activities to the previous contents on our environmental, safety, andhealth efforts, and renamed the report "Environmental and Social
Report." Since then we have continued to improve our involvement
in society.
This report aims to explain to our stakeholders the efforts taken by
Dai-ichi Kogyo Seiyaku on environmental and social activities, andpromote our communication. We always keep in mind that weshould do our best to disclose lucid and comprehensive reports ina sincere manner.
Since 2010 we have posted our reports in English on our website.

A Summary of Dai-ichi Kogyo Seiyaku’s Environmental and Social Report
Organizations Covered by this Report

Environmental and Safety Activities (RC Activities)
Basic Philosophy, Basic Policies, and Corporate Principles for Environmental and Safety Practices … 13
RC Promotion System/Management System ………… 14
Targets and Performance ……………………………… 15
Environmental Accounting ……………………………… 16
Global Warming Prevention (Energy Conservation) …… 17
Efforts to Reduce Emissions of Chemical Substances … 18
Efforts to Reduce Waste ………………………………… 19
Chemical Substance Management ..…………………… 20
Efforts to Occupational Safety ………………………… 21
Efforts to Process Safety and Disaster Prevention ..…… 22
Social Activities
Information Transmission Tools ……………………… 23
Relations with Society & Local Communities ………… 24
Relations with Our Customers & Business Partners…… 26
Relations with Our Shareholders & Investors ………… 28
Relations with Our Employees ………………………… 29
On-Site Report
Yokkaichi Branch / Ohgata Branch ………………… 33/34
Shiga Branch / Yokkaichi Chemical Co., Ltd. ....…… 35/36
Posted on the website The emission amount of notification substances under the PRTR Law in FY 2011 … 37

1

Environmental and Social Report 2012

Dai-ichi Kogyo Seiyaku
Head Office, Laboratory, Tokyo Branch, Osaka
Branch, Nagoya Branch, Kyushu Branch, Yokkaichi
Branch, Ohgata Branch, and Shiga Branch
National Affiliates
Gembu Co., Ltd.; Dai-ichi Kenkou Co., Ltd.;
Dai-ichi Clean Chemical Inc.;(the above three companies are located within thepremises of Dai-ichi Kogyo Seiyaku)
and Elexcel Corporation.
Yokkaichi Chemical Co., Ltd.
In the description related to our performance, we use thefollowing definition and distinguish between "Dai-ichi Kogyo
Seiyaku" and "Dai-ichi Kogyo Seiyaku Group."Dai-ichi Kogyo Seiyaku: Dai-ichi Kogyo Seiyaku and national
affiliates located within the premises of Dai-ichi Kogyo
Seiyaku
Dai-ichi Kogyo Seiyaku Group: Dai-ichi Kogyo Seiyaku and allnational affiliates
Period Covered by this Report
Essentially, this report contains our activities and data forfiscal year 2011 (from April 1, 2011 to March 31, 2012).
The data on Industrial Accident Severity Rate (ASR) andIndustrial Accident Frequency Rate (AFR) were obtained fromJanuary to December 2011. Note that this report in partcontains descriptions after April 2012.
Reference Guidelines“Environmental Reporting Guideline 2007”/“Environmental
Accounting Guideline 2005” from the Ministry of the Environment“Environmental Accounting Guideline for Chemical Industries(November 2003)” from the Japan Chemical Industry
Association (JCIA)

Message from the President

Imple the approach to "chemistry to respond to people's needs,"
Implement
contribute to the realization of a sustainable society through our business practices.
and coIn 2011 we confronted various incidents which would affectthe future of globalized corporate activities, such as thenatural disaster of the Great East Japan Earthquake andfloods in Thailand, concerns about shortage of electricity,
increase of resource costs, and anxiety about decelerationof the global economy resulting from European debt
problems. It has been a year that reminded us of the starting
point of "company."
Our corporation group, belonging to the chemical industry
that has a key role in product innovation, pays close
attention to the expanding sales of the core productbusiness, as well as focusing on exploiting a new market
and developing new materials in the growing field. Throughthe above approaches, we intend to walk the paths ofcontinuation and progress, which is regarded as our
mission, while interpreting global trends. "Getting ahead of
the times as a leading chemical manufacturer that offers
industrial chemicals," through accomplishment of thismanagement vision, we hope to create common values withsociety through our business activities and enhance thevalue of our company based on our company motto of"Contributing to the nation and society through industry."
Now, once again, we enhance our awareness of changes andproceed towards expansion of our business accompanied byearnings.
The medium-term management plan "Change 100 Plan"
started in 2009, the year of the 100th anniversary of thecompany's foundation. Our corporate group ended StageⅠof the plan and started Stage Ⅱ in April this year. Not all theassignments of the three-year plan, with the aim ofconverting the corporate culture, were completed, but wealmost accomplished our desired purpose. Based on theearnings structure built in StageⅠ, we take over the policy of"changes," meaning full-scale of essential changes, andhave set our minds on 100% revolution, which leads us to set

the goal of Stage Ⅱ – Expansion Accompanied by Earnings.
The following goals have been raised as our management
policies: (1) Expanding into the peripheral fields (2)Replenishing and revitalizing the production bases in Japan(3) Speeding up creation of new businesses (4) Pursuingcost minimization (5) Enhancing management and fostering
human resources (6) Strengthening overseas operations
Pursuing our business opportunities in changes of therelationship between the mature societies of advanced
countries and developing societies of emerging countries,
we continue to implement the approach to "chemistry to
respond to people's needs," and devote ourselves toaccomplish our goals without fail.
We contribute to the actualization of a sustainable society by
expanding the surroundings of core business.
Our corporate group has been placing emphasis on fivecore business segments: surfactants, amenity materials,
polyurethane materials, functional materials, and electronic
device materials. To date, we have continued to offer
specialty chemicals to meet our customers’ needs.
If we set our sights on environmentally friendly productdevelopment as well as purification maintenance of the
global environment, and conversion fields to recyclable ornatural energy, and promote to expand the surrounding
areas of our business based on solutions of our own
development ability and technology, we believe we could
contribute a great deal towards the realization of asustainable society.
Continuous Efforts on RC (Responsible Care) activities
Since joining the Japan Responsible Care (RC) Council(JRCC) in 1998, Dai-ichi Kogyo Seiyaku has been
aggressively promoting RC activities.
For example, we have been making efforts on the reductionof CO2 emissions, promotion of energy savings, reduction ofenvironmental impacts, process safety and Disaster
Prevention, occupational safety, CSR activities such as
lecture delivery, and promotion of Dialogue with Society andsociety. In order to gain a reputation for higher reliability fromsociety through approaches to global environmental
problems, chemical substance control, and dialogue, we
believe that our continuous efforts on independent RC(Responsible Care) activities are important.
Management to Enhance Further Thoroughness of Compliance
We establish the corporate ethics charter and declare thateach of our employees will not only observe all legal
regulations and international rules, but also obey the spirit
thereof and behave in a socially sensible manner. During thecorporate ethics monthly campaign in October, we
conducted various events and educational activities with theaim of improving our awareness of compliance. We willcontinue transparent and healthy management in order forthe company to continue being trusted by all stakeholders
and with a high entity, as well as in order to continue as acompany where individual employees conduct fair andhealthy business activities as members of society, anddevote efforts to enhance the compliance system.
We encourage you to look over this summary of our activities
ended March in 2011 titled “Environmental and Social
Report 2012.” We hope this report will help you to deepen
your understanding of our company. We would appreciate
and welcome your candid opinion and review.
Sincerely yours,

September, 2012OYANAGI Masatoshi, Ph.D.
President

Environmental and Social Report 20122

About US

Making Efforts on Environmental and Social Activities
Our company has been actively making efforts on environmental and social activities since the company’s establishment.
We received a commendation from outside organizations, and our activities have attained high reputation.

Company Overview
Overview

Business Segments & Main ProductsCompany Name: Dai-ichi Kogyo Seiyaku Co., Ltd.
Head Office:Business Segments

5 Ogawara-cho, Kisshoin, Minami-ku, Kyoto, Japan

Date Business Started: April 1909
Date Established: August 1918
Representative: OYANAGI Masatoshi, Ph.D.
(President)
Capital:

7.1 billion and 41.7 million yen*

Number of Employees: 995 persons (consolidated)*
533 persons (non-consolidated)*

Main Products

Surfactants

Non-ionic surfactant, anionic surfactant,cationic surfactant, amphoteric surfactant

Amenity Materials

Sucrose fatty acid esters,
cellulose type polymer,
vinyl type polymer, acrylic acid type polymer

Polyurethane
Materials

Polyether polyol,
urethane prepolymer, urethane system

Functional
Materials

Materials used for radcure resins,
water-borne urethane resin,
flame retardants, amide-type lubricant

Electronic Device
Materials

Conductive paste for electronic components,
injection molding pellets,
functional inorganic materials(*as of the end of March 2012)

Domestic Branches

Dai-ichi Kogyo Seiyaku Co., Ltd.
Head Office, Laboratory (in Kyoto Branch)
Main BranchTokyo Branch

Osaka Branch

Nagoya Branch

Sales by Business Segment (Consolidated)

Kyushu Branch

Yokkaichi Branch

Ohgata Branch

Shiga BranchElectronic
DeviceMaterials
20.2%

Surfactants
33.4%

FY 2011
Functional
Materials
18.2%

Affiliates
Domestic: 9 companies
Overseas: 8 companies

56,249(Unit: million yen)

Polyurethane
Materials

Total: 17 companies

Amenity Materials
12.8%

15.4%

Management Index
56,249Changes in Sales (million yen)
50,00048,87546,52851,245

Changes in Current Profits (million yen)
2,439

2,500

44,35240,0002,000

30,0001,500

20,0001,000

10,000

500

1,742
1,239

0

07

08

09

11 (FY)

10

Changes in Total Assets & Net Assets (million yen)
50,00046,166
41,74940,000

0
07

-28
08

■ Net Assets

47,741

51,357■ R&D Expenses

2,000

15,316

16,498

16,94910,000
0

3

07

08

Environmental and Social Report 2012

Ratio to Sales

09

10

11 (FY)

(%)
6
5

2,058

4.2%

4.2%

3.9%

4.0%

1,936

1,863

2,010

2,273

1,500
14,43811 (FY)

3,000
4.2%

16,17210

2,500

30,00020,00009

Changes in R&D Expenses (million yen)

■ Total Assets

44,291

351

4
3

1,000

2

500

1
0

0
07

08

09

10

11 (FY)

About US

Business of Dai-ichi Kogyo Seiyaku and History of Environmental and Social Activities
Business of Dai-ichi Kogyo Seiyaku

1900'09 Founded in Ohno
Kungyokudo Co., Ltd.
'10 Launched the Cocoon
Reeling Agent'18 Established Dai-ichi
Kogyo Seiyaku Co., Ltd.

Environmental and Social Activities

Situations in Japan and Abroad'18 Established our company mottoand company credo'05 The Russo-Japanese War begins'10 The Japan–Korea Annexation Treaty is signed'14 The World War Ⅰ begins'20 The League of Nations is established'23 The Great Kanto earthquake'34 Launched higher alcohol
detergent "DKS300"(renamed MONOGEN in '37)
'38 Newly constructed
Yokkaichi Plant'49 Launched CMC "CELLOGEN" Main Industrial Products (around 1937)'31 Published the first newsletter'36 Introduced the weekly holiday system'47 Made presentations at the Kyoto Commerceand Industry Exhibition in commemoration of
implementation of the
new constitution'28 The Japan Chamber of Commerce and Industry is established'31 The Manchurian Incident begins'39 The World War Ⅱ begins'43 The Japan Stock Exchange is launched'47 The Japanese Constitution is enacted,
The Labor Standards Act is announced officially'59 Established Yokkaichi
Chemical Co., Ltd.
'60 Newly constructed Ohgata Plant.
'69 Established Nippon Levulose Co., Ltd.
'70 Launched the sucrose
fatty acid ester "DK ESTER" Completion Ceremony of Yokkaichi Chemical Company'73 Established Gembu Co., Ltd.
'75 Launched the industrial refresher "AIR CHEM"'78 Acquired capital in Chin Yee Chemical Industries Co., Ltd.
'80 Launched the water-reducing agent for concrete "SELFLOW"'82 Established Dai-ichi Clean Chemical Inc.

'53 Published "MONOGEN Story"'54 Joined the 1st world surfactant
congress and business conventionion'66 Household synthetic detergents wererecompletely converted to LAS (soft type)
y )
ype)
yp
'68 Published "CELLOGEN Story"s"s"'72 Established "Pollution Prevention Rules"'75 Introduced a five-day-week systemm'83 Introduced chemical fire truckssin our Ohgata Plant
ory"'84 Published "SUGAR ESTER Story"'51 The Japan Oil Chemists' Society (JOCS) is established'55 The Japan Oil & Fat Industry'59 The Ise Bay Typhoon'64 The Tokyo Olympic, The Tokaido Shinkansen(bullet train) goes into operation'70 14 bills related to the pollution prevention are passed'73 The first oil shock'86 Established Kyoto Elex Co., Ltd.
'87 Established K&D Fine Chemical Corporation'88 Established Dai-ichi Ceramo Co., Ltd.
'89 Established Dai-ichi Kenkou Co., Ltd.
'92 Established Tianjin Dai-ichi
Fine Chemicals Co., Ltd.

'89 Introduced the special
incentive leave systemty)'94 Established "PL (Product Liability)
Prevention Management Rules""Ohno Kungyokudo (at the time of establishment)

1925

1950

1975

'78 The New Tokyo International Airport opens'79 The "Ordinance relating to the Prevention of Eutrophication in
Lake Biwa" is passed in the Shiga prefectural assembly,
The United States and China renew diplomatic relations'82 The Tohoku Shinkansen and Joetsu Shinkansen go into operation'85 The world science exposition opens'86 The Equal Employment Opportunity Law is enacted'89 The consumption tax (3%) is introduced
The Tokyo stock exchange price reaches
the highest (38,915 yen 87 sen)

1985

1995
'96 Established PT. Dai-ichi
Kimia Raya
Tianjin Dai-ichi (at present)'01 Merged Dai-ichi Kagaku Kogyo Co., Ltd.
and renamed Shiga Plant'02 Established Elexcel Corporation Ltd.
and Chin Yee Chemical Technologies Co., Ltd. (Wuxi)'04 Established DKS (Shanghai) International Trading Co., Ltd.

2005

'05 Established Shuang YiLi (Tianjin) New Energy Co., Ltd.
'06 Constructed
a new laboratory inKisshoin and moved'09 Commemorated
the 100th anniversary ofLaboratory (at present)
the foundation

2010'11 Acquired the ownership of Yokkaichi Chemical Company
Issue of 100 year anniversary Company History Book

'96 Awarded the Ozone Protection
Award by the U.S. Environmental
Protection Agency'98 Joined the Japan
Responsible Care (RC)U.S. EPA
Council (JRCC)'01 Established "Environmental
Protection and Occupational Safety Rules"'02 Acquired ISO14001 authentication in all plants'03 Acquired ISO9001 authentication in all plants'03 Published the 1st Environment & Safety Report'04 Established Code of Corporate Ethics'04 Introduced the cogeneration and solar power
generation systems in the Ohgata Branch'05 Established "Declaration of Action for Executives
and Employees"'06 Set up the internal audit department'07 Introduced the cogeneration systemin the Shiga Branch'08 Achieved no accident record for 3000 daysin the Ohgata Branch'10 Started approach of lecture delivery'11 Established the Senbon Training Institute'95 The Great Hanshin-Awaji Earthquake (M7.3) occurs
The Product Liability Act (PL Act) is enacted'97 The Kyoto Protocol is adopted in COP3
'98 The Financial Services Agency is launched'99 The Europe's unified currency "Euro" is introduced(among 11 countries)'01 Government ministries and agencies is reorganized
into one office and twelve ministries and agencies
The 9.11 terrorist attacks occur in the United States'03 The Tokyo stock exchange price reaches its
previous post-bubble low (7,606 yen 88 sen)
'04 The Niigata Chuetsu earthquake occurs (M6.8)'05 The full deposit guarantee is removed, the Private
Information Protection Law is enacted'06 The Companies Act and amended Industrial
Safety and Health Act are enacted'07 The Niigata Chuetsu earthquake occurs (M6.8)'09 Influenza A (H1N1) breaks out and spreads
The Minister of Consumer Affairs is launched'10 The Shanghai International Expo opens'11 The Great East Japan Earthquake occurs (M9.0)
The U.S. dollar currency exchange rate reaches its highest value (75.54 yen)

Main External Commendation and Evaluation (since 2005)
Month, Year
Description for Commendation and Certificate of Appreciation
05.05
The 29th Japan Chemical Industry Association (JCIA)

06.02
07.05
07.05
07.06
07.12
08.02
09.03
11.03
11.08

Wins the "Safety Efforts Award" by the Japan Responsible Care (RC) Council (JRCC)
Wins the "Highest Award" for the 37th oil and fat industry article–The bio-plant concept towards the resource competition period–
Wins the industrial technology award for the 57th Osaka Industrial Research Association–Establishment and Industrialization of Compound Technology for Powder Injection Molding–Wins the "Award of the Association for Safety of Hazardous Materials
in Kanto Koshinetsu District" in 2007
Wins the "Commendation by the Commissioner of the Fire and Disaster Management Agency for a Company with Excellence Related to Hazardous Materials" in 2007
Wins the "Highest Award" for the article competition commemorating the 50th anniversary of establishment of Kyoto Industrial Association (2 articles)
Wins the "Special Award by the Review Board" for the 39th oil and fat industry article–The Green Tourism Business Proposed by the Oil and Fat Industry–
Wins the "Article Special Awards" as group for the 26th Beacon Users' Symposium research presentation
Receives a certificate of appreciation for participation in the "Environmental Study Business for Elementary School Students"
Receives a certificate of appreciation for contribution to development of the Red Cross businessAwardees

Organizers

K&D
Fine Chemical Corporation*
TONEGAWA Akimitsu
TAKAMURA Naohiro SUGINO Shingo

Japan Chemical Industry Association (JCIA)
Japan Responsible Care (RC) Council (JRCC)

Dai-ichi Ceramo Co., Ltd.*

Osaka Industrial Research Association

Ohgata Branch
Ohgata Branch
SYOUSU Takeshi NODA Toshiki
KITAGAWA Takashi
ARAI Takamitsu
YAMAMOTO Daigo
Dai-ichi Kogyo Seiyaku
Yokkaichi Branch

Oil & Fat Industry Kaikan

Kanto Koshinetsu District
Association for Safety of Hazardous Materials
Fire and Disaster Management Agency
Kyoto Industrial Association
Oil & Fat Industry Kaikan
Beacon Users' Group
Kyoto City
Japanese Red Cross Society* Affiliates

Environmental and Social Report 20124

About US

Getting Ahead of the Times of Chemistry
The medmedium-term management plan "Change 100 Plan" started in the year of the 100th anniversary of the company’s foundation.
devote our efforts to converting the corporate culture, and proceeding towards expansion of our business while maintaining our
We devobusiness quality.

Medium-term management plan "Change 100 Plan"
Stage Ⅱ –Expansion Accompanied by Earnings–
Introduction
We ended Stage Ⅰ of the medium-term management plan
"Change 100 Plan" which started in 2009, the year of the100th anniversary of the company foundation. Not all theassignments of the three-year plan, with the aim ofconverting the corporate culture, were completed, but wealmost accomplished our desired purpose.
We issued the 100 year anniversary’s company history book,which made us confident as the 21st century is the time ofchemistry. The mission of chemistry is to utilize the limited
global resources and develop alternative materials. We think
we have entered the period when the true value will bedirected to the leading chemical manufacturer that offers
industrial chemicals.

Review of StageⅠ(from April 2009 to March 2012)
During the three years of Stage Ⅰ, we put our focus onconversion of corporate culture.
We increased the awareness of earnings and changed
conventional sales attitudes. The introduction of theintegrated business division approach served as a base forpromoting conversion of corporate culture. We confirmed
some changes in promotion of our "Cost-Eco Activities,"
activities of "visualization" in production departments, andsales profit management in sales departments. Our

intended "change" was finally starting to take shape.
Conversion of the corporate culture is producing favorable
results, but it has not been completed. There still remainsome parts in which conversion has not been settled, andtasks that require more approaches.
We will be more aware of and move forward with suchthemes as "Improvement of management ability and humanresource development" and "Development of globalization"
during the period of Stage Ⅱ.

Evaluation of the Change Matrix Measures

Management Index
Î°ÈÊ¯

FY 2011 (the 3rd year)

Operating Margin on Sales（△）(△®ÊÊU iÛi«iÌÊvÊ}L>â>Ì
Full-scale expansion in Stage Ⅱ(△®ÊÊU,iÛiÜÊvÊÕ>Ê,iÃÕÀViÊ Û>Õ>ÌÊ-ÞÃÌiStarts training in 2011(○®ÊÊU,iVÃÌÀÕVÌÊvÊÌ iÊvÀ>ÌÊ-ÞÃÌiStarts operation in 2012
* VµÕÃÌÊvÊÌ iÊÜiÀÃ «ÊvÊ9>V Ê iV>Ê °]ÊÌ`°

xÈ°ÓÊLÊÞixÈÊÊÞiSales（○）

Per Capita Sales（△）

Inventory Turnover Rateby Month（×）

Cost of Sales Ratio（△）

FY 2010 (the 2nd year)(○®ÊÊU «ÀiÃÃÊvÊÝi`Ê ÃÌPromotion of cost-eco activities(○®ÊÊUÀÀ>}iiÌÊvÊ««À«À>ÌiÊ>«ÜiÀ
Selection and concentration based on the business division(△®ÊÊU  >ViiÌÊvÊ-Õ««ÞÊ >Ê>>}iiÌConstruction in the information system reconstruction PTIÊ«iiÌ>ÌÊvÊ«ÕLVÊÃÌVÊvviÀ}Ã
IÊÌÀ`ÕVÌÊvÊÌ iÊÃÌVÊ«ÌÊÃÞÃÌi

FY 2009 (the first year)nä°nÊ¯£°nÊÌ Ã
SG&A Expense Ratio（○）(○®ÊÊU «iÌiÊ vÀViiÌÊvÊÌ iÊÌi}À>Ìi`Ê ÕÃiÃÃÊ ÛÃÊ««À>V
Launches completely in 2009(○®ÊÊU,iÛ>ÌÊvÊ*iÀÃiÊvv>ÀÃ
Implements renovation of personnel affairs on a company-wide basis(○®ÊÊU-iVÕÀiiÌÊvÊ iViÃÃ>ÀÞÊÕ`Ã
Implements in the tough financial marketIÊ`«ÌÊvÊ>LÀ>>}iiÌÊÌÊ`iV>À>Ì
Implementation status of measures initially set for each fiscal year, andImplementation status of management measures to increase the company value (*)
5

Environmental and Social Report 2012£x°xÊ%
Target in FY 2011
Performance in FY 2011
Performance in FY 2010
Performance in FY 2009

About US

Stage Ⅱ (from April 2012 to March 2015)
1) Management Vision
We "get ahead of the times as a leading chemical
manufacturer that offers industrial chemicals," and realize
the company motto "Contributing to the nation and society
through industry." We take responsibility in productinnovation and progress through the age of globalization.
We interpret global trends, and walk the way of continuationand progress according to our company credo of "Quality
First, Cost Reduction, R&D Efforts."
In the mature society of advanced countries, we set oursights on purification maintenance of global environment,

and conversion fields to recyclable or natural energy.
Looking over the developing society of emerging countries,
we pursue our business opportunities under similar
geographical conditions as those in China, India, and
ASEAN countries that represent the said countries.
Based on the solutions of our own development ability andtechnology, we implement the approach to "chemistry to
respond to people's needs," and realize a company image
generating from Kyoto, to the world, and to the future.

2) Management Policies
We maintain the quality of business contents we have secured
in Stage Ⅰ, and move forward on expansion of our business.
(1) Expanding into the peripheral fields
We enhance increase of sales by horizontal development
and deep digging to expand the peripheral fields of"current products, technology, and customers."(2) Replenishing and revitalizing the production bases inJapan
We devote our efforts on the securing of and thereplenishing of new production bases and build thefoundation of expansion and growth.
(3) Speeding up creation of new businesses
We create new business and invest facilities for our futurebusiness portfolio.

(4) Pursuing cost minimization
We promote activities on improvement of thoroughproductivity and new cost minimization.
(5) Enhancing management and fostering humanresources
We foster human resources through the DKS Productive
Maintenance, and put our efforts on enhancement ofmanagement ability in Japan and overseas.
(6) Strengthening overseas operations
We strengthen development and management in China
and Asian regions, and have started to new expansion ofbusiness.

3) Numerical TargetsÃ`>Ìi`Ê iÌÊ->iÃÃ`>Ìi`Ê"«iÀ>Ì}Ê>À}ÊÊ->iÃ*iÀÊ >«Ì>Ê->iÃ*iÀvÀ>ViÊ
FY 2011

Target in
FY 201456.2 billion yen

75 billion yen

3.6 %

8.0 %

56 million yen

70 million yenÃÌÊvÊ->iÃÊ,>Ì80.8 %

78.0 %-EÊ Ý«iÃiÊ,>Ì15.5 %

14.0 %

ÛiÌÀÞÊ/ÕÀÛiÀÊ,>Ìi

1.8 months

1.6 months

Expansion Accompanied by Earnings
2025
Medium-termManagement
Plan

Mega Trend•Asia region: growth of
population, increase of income•Advanced countries: recycled,
natural energy

DKS'sBusiness Chance•Four strategy fields"Environment" "Energy""Electronic Materials""Life Materials"•Fulfillment and regeneration ofdomestic and overseas
production bases•Asia region: China, Indonesia

Recognition of
Our Possible Risk
•Disruption of supply chain bynatural disasters•Finance, money and banking,exchange-rate fluctuations

We approach the company's progression with the viewpoints of "5W1H plus 1." We execute the points of Why (management
vision), What (management policies), When (periodical index), Where (each department), Who (a person in charge), How, andHow Much, and make efforts to accomplish our targets.
▼
For the overview of the "Change 100 Plan," please see our company's website (http://www.dks-web.co.jp).
Environmental and Social Report 20126

About US

Utilized in Various Fields
Our products will aid us in daily life as useful materials and through the members of various products.
This section introduces some examples from scenes in everyday society and the environment.

Our Products Useful in Daily Life
1 Surfactant Business

2 Amenity Material Business

Surfactants, which have played a pivotal role from thestarting point of our company, are used in a wide variety ofindustrial fields, such as rubbers, plastics, colorants,
machines/metals, cosmetics/human-life related industries,
paper/pulp, fiber, agrochemicals/agricultural materials, civilengineering, and energy-related industries.
■Non-ionic surfactant■Cationic surfactant■Anionic surfactant■Amphoteric surfactant

Our amenity material business has been supplying not only
various materials used to improve the amenities within our
living environment, such as sucrose fatty acid esters, sodium
carboxymethyl cellulose, and polyvinylpyrrolidone, but also theperipheral applied technologies. They are widely used in many
fields surrounding our daily life including foods, pharmaceuticals and cosmetics, and fishery/livestock industries.
■Sucrose fatty acid ester■Vinyl type polymer■Cellulose type polymer■Acrylic acid type polymer

Silicon wafer detergent●DK BE-CLEAR CW
Conductive paste for solar cells●DD-1200C
Rigid polyurethane foam
for insulator material●DK POLYOL
Bed, cushion(Soft or semi-rigid polyurethane foam)●HIFLEX●DK FLEX
Primer for optical films(Radcure resins)●NEW FRONTIER
Flame retardants for plastics●PYROGUARD
Semiconductor sealant materials●Allyl glycidyl ethers
Seal material for electric insulation(Gas water heater control units)●EIMFLEX
Materials for cosmetics(Shampoo, rinse, hair gel)●NEO-HITENOL●CATIOGEN ●CREEJUS●Phenoxyethanol

Food additives●DK ESTER●DK FOAMER ●CELLOGEN

Coating material for building
material and furniture(Radcure resins)●NEW FRONTIER

Paint resin for cars
●SUPERFLEX

7

Environmental and Social Report 2012

Epidermis material
for car interior●SUPERFLEX

Tire rubber(Emulsion
polymerization emulsifier)●LAVELIN

Hybrid vehicle electric components(Resistant polyurethane resins)●EIMFLEX

Car seatbelts●ELASTRON

About US

3 Polyurethane Business

4 Functional Material Business

Because they change themselves from a liquid to a solid state
via an appropriate reaction process or process technique,polyurethane resins are used in many industrial materials,
such as urethane foam, elastomer, paints, adhesives, artificial
leather, civil engineering and building materials, and electrical insulating materials. Our company’s polyurethane resins
can serve as the raw material for many urethane products.
■Polyether polyol■Urethane system■Urethane prepolymer

The usage of synthetic resins covers home electronic
appliances, residential materials, and other commodities ofdaily life. Our functional material business has been supplying radcure resins, polyurethane resin water dispersions,flame retardants, and plastic additives, for which theintention is to enhance the performance and added value ofsynthetic resins and to facilitate environmental improvement.
■Materials used for radcure resin ■Water-borne urethane resin■Flame retardants■Amide-type lubricant, plastic additives

5 Electronic Device Material BusinessTechnological innovation in the IT-related field, as
symbolized by the popularization of computers and cellular
phones, has been constantly spurred on public demand. By
drawing on our unique technologies, we have been devoted
to developing various types of electronic products, including
conductive pastes, ceramic materials, ionic liquids, andlithium cells, and providing support for technologicalinnovation in the field of electronic devices.

Collapse prevention material for tunnel construction●GANBAN
Injection water-stop material●POLYGROUT■Conductive paste for electronic components ■Injection molding pellets

Detergent for linen supply●LINEN FINE
Detergent for cleaning●FINE SHOT
Water reducing agent andfluidizer for concretes●SELFLOW
Waterproof roofing material●POLYFLEX

Optical fiber connector●Zirconia compound
for ferrule
Adhesive for elastic pavement
material●RUBBER STYTER
Heavy-duty coating for steel
sheet piles●PERMAGUARD
Buildings strengthening agent(Epoxy diluent)●EPOGOSEY

Spillage oil treatment agent●SEACLE

Feed additives for cultivation●CELLOGEN

Environmental and Social Report 20128

About US

Environmentally Friendly Products & Technology
We believe that developing environmentally friendly materials is the mission of an industrial chemical manufacturer.
We develop a great number of products using chemical technology know-how accumulated over many years.

Environmentally Friendly Products & Technological Development
Our Products and Technology Development
Responding to environmental requirements including global warming prevention, energy and resource saving, environmental
protection, and the prevention of environmental pollution, we are devoted to supplying environmentally friendly and compliant
products and developing related technologies.
Environmental
Requirements

Our Product Line & Technology/Application

Functions & Features

Development of DSC (dye-sensitized solar cell)
Global Warming

Clean Energy

Prevention
Halogen-free type

Energy Efficiency
Energy &Resource Saving
Effective Resource Utilization
Extension of Life Span
Environmentally Responsive
Environmental
Protection and

VOC* Reduction

Prevention ofEnvironmental
Pollution

Reduction of Environmental Impacts
Removal of Contaminants

Lithium cell
DD-1200C Series

Conductive paste for solar cells (lead-free)

DK BE-CLEAR Series

Water-borne detergents

DK POLYOL 3000 Series

Materials/insulators for non-CFCs (water-blown type) polyurethane foam

COLOURSOL CT-171D

Accelerating/leveling agents for polyester

NEW FRONTIER Series

Solvent-free UV/EB-curable monomers/adhesives, coating agentsDK SYSTEM NF Series

Non-CFC rigid urethane foam for insulators

Anti-solidification agents for slag
ELEXCEL IL Series

Ionic liquids/energy device materials

EIMFLEX Series

Polyurethane resins for electrical insulation

NOIGEN TDS Series, NOIGEN XL Series

Nonionic surfactants/emulsifiers, cleaning agents

SUPERFLEX Series

Polyurethane water dispersions/paints, coating, binders

ELASTRON/ELASTRON BN Series

Thermal-reactive polyurethane water dispersions, binders, adhesives

COLORCOAT Series

Solvent-free urethane paints

NEW FRONTIER Series

Solvent-free UV/EB-curable monomers/adhesives, coating agents

AQUALON KH Series

Polymerizable surfactants/emulsifiers for emulsion polymerization

SEACLE N-800

Spillage oil treatment agents

DEOPELLET Series

Foul odor gas absorbents for absorption towers* VOC: Volatile Organic Compounds

Products Meeting Environmental Requirements

Thin-film Coating Protects Electronic Components, Such as Wiring Substrates, and Sensors
Environmentally Responsive Water-borne - Liquid Polyurethane Resins/EIMFLEX WF Series
EIMFLEX WF Series provides polyurethane resin water dispersion suitable for theelectrical insulation coating by brushing, immersing, and spraying. Because it iswater-borne and does not include organic solvents, it is not subject to restrictions of
the Fire Defense Law. The film provides favorable adherence properties to flux,
strength, humidity resistance, resistance to solvents and medical agents, andinsulation properties, and in particular shows the excellent embrittlement properties in
the low-temperature range. This Series is suitable for creating moisture-proof
insulation seals and waterproofing with various electronic components, such as
capacitors, hybrid ICs, sensors, print wiring substrates and transformers.

Succeeded in lead free manufacturing for the first time in the world
Conductive paste for solar cells/DD-1200 Series
We finally succeeded in lead free manufacturing of conductive silver pastes for solar
cells, which has been thought to be impossible. Owing to this performance, we leadthe world by contributing to manufacture lead-free solar cells, which have been
adopted not only in Japan, but in countries around the world.
DD-1200 Series can be converted to solar electric energy more effectively thanlead-containing conductive silver pastes for solar cells, as well as responding to thethin line printing (that enables to print 40 microns of thin lines). As a result, it becomes
possible to make wirings to transfer electricity generated on the surface of solar cells
thinner, and to expand the reception area of solar light, which allows more electricenergy to be acquired from solar cells.

9

Environmental and Social Report 2012Pb

About US

Selected Products
Numerous product lines developed using chemical technology know-how accumulated for long years. We support many typesof industries behind the scenes as a industrial chemical manufacturer that offers chemicals and intermediate materials used inindustrial processes, and deliver "Products & Technology Friendly to the Environment and People."

Environmentally Friendly Water-borne Polyurethane Resin Dispersion
SUPERFLEX Series and ELASTRON Series
Features of Polyurethane Resins
Polyurethane resin is created by the reaction between polyisocyanate and polyol,
basically composed of soft and hard segments. The soft segments are thenon-crystalline parts, composed mainly of polyol, which provide properties that areless subject to change even if changes occur in flexibility, bend performance,
and/or temperature. The hard segments are the crystalline parts mainly composedof polyurethane binding and urea binding, which provide excellent adhesion,
toughness, solvent resistance, and heat resistance to base materials.
Balancing and blending those opposite properties into polyurethane resins willproduce excellent properties that combine flexibility and toughness.

Soft segment(weak intermolecular force)

Hard segment(strong intermolecular force)

Basic Structure of Polyurethane

About Water-dispersed Polyurethane Resin
Polyurethane resins are used in many fields, such as for paints, adhesives, a varietyof coating agents, as well as binders. Organic solvents, such as toluene andxylene, have been used to dilute polyurethane resin in the past. We make use of ouraccumulated know-how about the technologies of polyurethane and surface
chemistry, and develop products with polyurethane resin particles dispersed inwater (SUPERFLEX Series and ELASTRON Series) in consideration of impacts oforganic solvents (VOC*) on the global environment. Water-borne polyurethane
resins draw attention as environmentally friendly materials in various applications.
We continue to make efforts on technology development to attach advanced
functions to them.
* VOC: Volatile Organic Compounds

Applications of Water-dispersed Polyurethane Resin (examples)

Painting Field■ For cars
■ For building materials and wood
■ For plastics■ Sheets/Film■ Metal surface■ Paper/leather processing

Adhesive■ Fiber■ Film■ WoodCoating Agent

Binder■ Glass fiber binder■ Fiber, non-woven fabric■ Synthetic/Artificial leather■ Paper processing

Environmental and Social Report 201210

Promoting Environmental & Social Activities

Aiming to be a Trusted Company
We continue to maintain the corporate governance system in order to attain a level of high confidence from society.
We also operate our control systems appropriately so that the company organization is properly managed.

Corporate Governance
The purpose of our corporate governance is to establish amanagement base that invariably obtains the confidence ofsociety. Our company motto is “contributing to the nationand society through industry.” We believe the key toaccomplishing this goal is to practice fair and transparent
corporate activities based on corporate social responsibility(CSR) and to gain a high degree of confidence from all

stakeholders including our customers and society.
In order to accomplish this commitment, we haveconstructed and maintained the corporate governancesystem. We will continue to operate our control systems in an
appropriate manner so that our company can create atransparent business structure and can be run in an
appropriate manner.

Corporate Governance System (in force as of June 26, 2012)
Shareholder Meeting
Compliance Control Committee
Audit & Supervisory Board

Board of Directors

Accounting Auditor

President

Risk Management Control Committee
Internal Audit Department
IT System Control Committee
Management Committee
Financial Reporting Control Committee
Executive Officers
Security & Export Management Headquarters
Each Business Division & Group Company
RC (Environment, Safety&QA) Promotion Meeting*Reports on our corporate governance are available on the Tokyo Stock Exchange’s website:

http://www.tse.or.jp/disc/44610/140120120608051758.pdf(Japanese only)

Compliance
Our company established a Compliance Control
Committee in 2004. This committee has been engaged inestablishing our own compliance system and performing
multiple activities to instill compliance practices within ourcompany. We will continue to enhance further compliancepractices.

Basic Policy■Our “Code of Corporate Ethics” was set up in July 2004.
This clarified the ethical goal of our company.
■Our “Declaration of Action for Executives andEmployees” was set up in December 2005. We specified
the code of conduct for executives and employees tosubstantiate our “Code of Corporate Ethics” and tosecure the effectiveness of the code. This “Declaration of
Action for Executives and Employees” is also available incard form. The card has been already handed out to all ofour board members and employees.

■Since 2004, we have been conducting a “Research
Questionnaire on Compliance Awareness” once a year, inorder to check to what extent the compliance-based
management philosophy is instilled in our employees.
■The compliance database has been built using our existing
in-house database. It provides knowledge on complianceinformation and on the related laws. To allow anyone toacquire such knowledge, we have also established an
information service database that can offer various kinds ofinformation through quiz-type games.
■We hold periodic in-house seminars and workshops oncompliance to improve our employees’ awareness.
■In 2010 we designated every October as the corporate
ethics campaign month, and since then have conductedvarious events and educational activities with the aim of
improving our awareness of compliance.

Activities to Instill and Implement Compliance
Practices■The Whistleblower Hotline was set up in 2006. Thishotline is a contact point for any employee who has
information about (alleged) violations of law and/or wants
to report an actual violation of law. Whatever accessmode is used (phone, e-mail, postal mail), theWhistleblower Hotline is directly connected to ourCompliance Control Committee.
■In order to improve our compliance practices,compliance assessment has been undertaken on asectoral basis.
11

Environmental and Social Report 2012

For more information on the “Code of Corporate Ethics” and the“Declaration of Action for Executives and Employees,” please
visit our company's website.

Promoting Environmental & Social Activities

Internal Control
set up appropriate internal control committees, we haveestablished our Information Security Rules.
Serving as the foundation of our economy and society, IT
controls currently play a larger role than they used to. Thus, inorder to reduce information system risks such as information
leaks, we have developed information security policies andstandards for risk measures and have defined procedures for
information security practices to ensure the information securityof our company.
In recognition of the importance of internal control systems, ourFinancial Reporting Control Committee and Internal Audit
Department play a central role in various internal control
matters.

We acknowledge that any enterprise must comply with laws andregulations, fulfill its obligations as a member of society throughproper business activities to ensure stakeholders’ interests areserved, and make a positive contribution to society while
gaining the confidence of said society.
In May 2006, the board of directors passed a resolution on“Systems for Ensuring the Proper Operation of the Dai-ichi
Kogyo Seiyaku Group.” We have been engaged not only ininternal control in compliance with Japanese Corporate Law but
also in performing periodic reviews of our internal control
systems and their maintenance and operation, in order toensure the credibility of financial reports in accordance with the
Financial Instruments and Exchange Law. In addition to having

PDCA Cycle of Internal Control Processes
cesses for Financial Reporting

ACTION■Reviewing Work throughSelf-auditing

PLAN

ACTION■Preparation of Checklist■Preparation of Workflows■Preparation of Task Statements

Reviewing
Correcting■Correction through Internal
Audit’s Evaluation

CHECK

PLAN
PL
AN

Documentationof Work

CHECK
K

Monitoring
Evaluation■Evaluation throughSelf-auditing■Evaluation by the Internal
Audit Department

DO

DO

Implementation■Implementing as
Specified in Workflows■Implementing as Specified
in Task Statements

Risk Management
The risks companies face have become diversified andcomplicated, which may result in increased adverse
impacts on shareholders. Our company places risk
management as an important business challenge. In
management meetings, we check and supervise thecross-sectional risk management system throughout thecompany. We also set up the Risk Management Control
Committee consisting of representatives in each branch anddepartment. To address potential and/or evident risks to ourbusiness activities, we prepare our Risk Management
Procedures, Internal Audit Rules, Product Liability (PL)Prevention & Management Procedures, Information Security

Rules, and Personal Information Management Rules, as wellas their corresponding criteria and manuals, which support
supervisory departments to promote risk management.
In FY 2011, we reviewed the risk management system, risk
management procedures, and the manuals on earthquake
countermeasures in each branch. In addition, we prepared
the Business Continuity Plan (BCP) concerning earthquake
countermeasures in production branches. We will prepare
the above plan in the head office and other branches fromnow. We have created a company-wide version of the “NewInfluenza Pandemic Business Continuity Plan (BCP).

Environmental and Social Report 201212

Environmental and Safety Activities (RC Activities)

Aiming for a Society that can Develop in a Sustained Manner
We make efforts to conserve global environment through Responsible Care (RC) activities
with the aim of protecting the environment, safety, and health, as well as to establish a circulating society.

Basic Philosophy, Basic Policies, and Corporate
Principles for Environmental and Safety Practices
Basic
Philosophy
We have adopted the following business philosophy for all our business activities: “By providing quality
products to ensure customer satisfaction, we not only strive to be a prosperous company while moving
forward with our employees and serving local communities, but also contribute to creating an affluent
society.” Based on this philosophy, we adopt the following statement as our basic philosophy forenvironmental and safety practices: “Throughout the entire life cycle of our products, from development todisposal, we pay special attention to both human safety and health and environmental preservation, as wellas contributing to sustainable development and the realization of our goal for an affluent society.”

Basic
Policies(1) Throughout the entire life of our products,from development to disposal, we evaluate
and reduce each product’s load on theenvironment and do our best to ensure theprotection of the environment.
(2) We maintain no-accident and no-disastar
operations to ensure safety for the employees
and the residents of the surrounding areas.
(3) We ensure the safety of raw materials andinterim and final products, and prevent any
health disorders of everyone concerned,
such as employees, carriers, customers, andgeneral consumers.
(4) We not only obey relevant laws andregulations, but also actively and constantly
examine and improve the environment andsafety through self-management.

Corporate
Principles(1) We evaluate the effects of our business activities on theenvironment and human safety and, further, set andperiodically review our environmental targets/goals andsafety targets to ensure continuing improvement of both ourenvironmental protection activities and occupational safety
and health activities.
(2) We obey any laws, regulations, and agreements related toboth the environment and occupational safety and healthissues to ensure coexistence with our local communities.
(3) To reduce environmental impacts, we are devoted toperforming all of our business activities in such a manner as
to achieve resource and energy conservation, promotion ofwaste reduction and recycling, and improvement ofoccupational safety and protection of health.
(4) When developing our products and technologies, we are
devoted to providing safe products while paying special
attention to environmental and safety matters, and fully
understanding the extent to which the product will impact theenvironment.
(5) We make our best efforts to help all of our employees to fully
understand the environmental and safety policies and to
improve their environmental and safety awareness byimplementing environmental and safety training andworkplace communication activities. For this purpose, we ask
our affiliate companies for their continued understanding andsupport.

What Does It Mean?
Responsible Care (RC) Activities
Responsible Care (RC) activities refer to activities voluntarily conducted by the respective
companies handling chemical substances to ensure environment, safety, and healthimprovements. We also promote dialog and communication with the public by making the resultsof such activities publicly available throughout the entire process, from the development of achemical substance to manufacturing, distribution, use, final consumption, and disposal/recycling.

13

Environmental and Social Report 2012

Environmental and Safety Activities (RC Activities)

RC Promotion System
We have established an RC (Environment, Safety & Quality
Assurance) Promotion Conference with our president as its
chairman. At the conference, we deliberate on and decide
agenda items based on our Basic Philosophy, Basic Policies,
and Corporate Principles for Environmental and Safety Practices.
In order to effectively promote our RC activities, we haveestablished three different conferences -- the Environmental
Protection Conference, Safety and Health Conference, and QA(PL) Conference -- composed of branch managers and theheads of relevant departments and sections, and chaired by the
person in charge of Environment, Safety & QA. At these
conferences, our company-wide targets and implementationplans and their results are deliberated on.
We have also established, as a sub-organization of our

Board of Directors

conferences, three company-wide committees -- the EMS
Committee, SHMS Committee, and QMS Committee -- as well as
three committees in each of our manufacturing branches -- theEnvironmental Protection Committee, Safety and HealthCommittee, and QA (PL) Committee. The conferences havebeen held periodically to formulate implementation plans for RC
targets (related to energy saving, waste reduction, and proper
control of chemical substances), to manage the progress ofthese plans, and to summarize obtained results. In addition toestablishing Safety and Health Committees in our manufacturing
branches, we have provided them in other branches anddepartments as well. These committees are chaired by theheads of the related departments and sections to promote
positive safety and health practices.

President
RC (Environment, Safety&QA) Promotion ConferenceManagement Committee

Executive Officers

Management Section

R&D Section

Branches

Safety and Health Committee Safety and Health Committee

Environmental Protection Conference

EMS*1 Committee

Safety and Health Conference

SHMS*2 Committee

Quality Assurance (PL) Conference

QMS*3 Committee*1 EMS : Environmental Manegement System*2 SHMS : Safety and Health Manegement System*3 QMS : Quality Manegement System

Manufacturing branches

Safety and Health Committee
Environmental Protection Committee

Safety and Health Committee

Quality Assurance (PL) Committee

Management System■Establishing Annual
Policies & Goals■Establishing Implementation
Plans
Deliberated on & decided
at Environmental
Protection/Safety and
Health Conferences

PDCA Cycle
Promotion and management of our company’s
RC activities, which are based on thecompany’s Environmental Protection and
Safety and Health Management Regulations,have been implemented to achieve continuing
improvement of our RC practices by executing
a PDCA cycle.
In addition, as part of their RC activities, allmanufacturing branches of our company are
ISO 14001 and ISO 9001 accredited, both ofwhich are international environment andquality management system standards. Byutilizing ISO standards as a tool, we arecommitted to not only enhancing performancebased on environmental impact but also to
improving the safety of our products.

■Reviewing Policies
Review of annual policies■Proposals for Improvement
and Corrective
and Preventative Actions

Our Departments

PLAN

CHECK
■Audit & Assessment
Auditing performed by
our RC promotion departments
Assessment at Environmental
Protection/Safety and
Health Conferences■Understanding the current status &finding latent problems

DDO■Implementation
Implementing RC activities using management systems
e.g. ISO standards on a department-by-department basis■Recording Results & Preparing Reports

ISO 14001 & ISO 9001 Accreditation Status
ISO 14001 *1

ACTION

ISO14001 Certificates
ISO 9001 *2

Date of Accreditation Registration Number Date of Accreditation Registration Number

Yokkaichi Branch

June 2002

Ohgata Branch

July 2002

JCQA-E-0397

Shiga Branch

March 2002

JCQA-E-0354

JCQA-E-0391

January 2000

JCQA-0619

Production Control Div.
Business Administration Div.
Research Depts.
*1 After passing the third renewal audit, our plants (Yokkaichi, Ohgata, and Shiga) completed the second
maintenance audit during the period from March to July 2012.
*2 All of our departments completed the fourth renewal audit in November 2011.

Yokkaichi Branch

OhgataO
BranchShiga
SBranchEnvironmental and Social Report 201214

Environmental and Safety Activities (RC Activities)

Improving Activities Towards the Targets
We set up the specified activity targets each fiscal year, and conduct the Responsible Care (RC) activities as such.
We also continue to launch investment in environmental-related systems and improve activities in this fiscal year.

Executive Officer/Division
Manager of the Production
Control Division(in charge of Environment,
Safety & QA)

MURAKAMI
Osamu

The Responsible Care (RC) activities are promoted by
the global chemical industry under voluntary
management. Responsible Care commits companies
to conduct environmental and safety measurements
over the entire life cycle, from the development ofchemical substances to their disposal, throughprocesses of manufacture, distribution, usage, andfinal consumption, as well as to improve theirperformance.
We joined the Japan Responsible Care Committee (atthat time) in 1998, and since then have strongly
promoted RC activities which focus on environmental
protection, process safety and disaster prevention,
occupational safety and health, distribution safety,
chemicals and product safety, and Dialogue withsociety for improving the level of our activities.
As major approaches to environmental protection in
FY 2011, we reduced carbon dioxide emissions
through energy conversion to natural gas from heavy
oil for the boiler fuel at the Yokkaichi Branch. In
addition, we introduced the heat recovery system,
reviewed the operating hours of devices, and installedboiler steam pressure regulators to implement energy

efficiency, and promoted recycling of waste.
Related to process safety and disaster prevention, weorganized periodical emergency and evacuation drills to
prepare for accidents, introduced the safety confirmation
system for the company in general, and created the BCP
concerning earthquake countermeasures. As forapproaches to occupational safety and health, we
extracted and corrected unsafe places and operations
based on safety patrols with the goal of zero accidents
resulting in absence from work. In addition, we
conducted risk assessment activities, experience-based
safety education, and safety countermeasures throughcorrection and verification of the events that occurred in
the past. Also, as for approaches to health management,
we held mental health seminars, and made efforts torealize the complete implementation of regular healthchecks and reexamination.
We intend to improve our performance continuously
through these RC activities and achieve our corporatesocial responsibilities (CSR) to gain the social
confidence.

Targets and Performance (Dai-ichi Kogyo Seiyaku Group)
Targets and Performance in FY 2011
Target Items

Evaluation ◎: Significant results, ◯: Results according to targets, △: Targets remain unachieved

Management Items

Targets in RC Activities

Performance in FY 2011

Energy consumption per unit

1% reduction compared to FY 2010

2.6% worse compared to FY 2010△

Reducing GHG emissions

CO2(*1)23% reduction compared to FY 2005 on average from FY 2008 to FY 2012

22.9% reduction compared to FY 2005 on average from FY 2008 to FY 2011○

Waste generation per unit

1% improvement compared to FY 2010

1.3% improved compared to FY 2010○

Recycling rate

Promoting recycling

11.2% improved compared to the previous year in recycling rate○

80% reduction of final disposal amount in FY 2015 compared to FY 2000

67.4% reduced compared to FY 2000 in the final disposal amount△

1% or less of the final disposal amount to waste amount in FY 2015

2.8% of the final disposal amount to waste amount△

50% reduced compared to FY 2010◎

11% increased compared to FY 2010△

Reducing industrial waste

Final disposal amountSOx emissions
Reducing emissions ofNOx emissions

environmental impact

Dust

38% increased compared to FY 2010△

substances

COD

0.6% reduced compared to FY 2010○

8.5% reduced compared to FY 2010◎

Emission reduction of PRTR Law-designated substances

2.9% reduced compared to FY 2010○

Promoting green procurement ratio of office supplies

2% reduced compared to the previous year in the green procurement ratio△

No occupational accidents (days away from work)

Two cases occurred△

Eliminating severe accidents associated with production facilities

No accidents occurred○

Promoting environmental management system

Maintained○

Water discharge
Proper management of chemical substances

PRTR Law-designated substances

Promoting green procurement
Eliminating disasters/accidents
Environmental management system

Emission/discharge control of environmental pollutants in the air

Emission/discharge control of environmental pollutants in water*1 Derived from energy in production and management sectors.

Targets and Performance in FY 2012
Target Items
Promoting energy saving
Reducing GHG emissions
Reducing industrial waste

Management Items

Targets and Performance in FY 2012

Energy consumption per unit

1% reduction compared to FY 2011

CO2(*1)23% reduction compared to FY 2005 on average from FY 2008 to FY 2012

Waste generation per unit

1% improvement compared to FY 2011

Recycling rate

Promoting recycling

Final disposal amount

80% reduction compared to FY 2000 in FY 2015, and 1% or less of the final disposal amount to waste amountSOx emissions
Reducing emissions ofNOx emissions

environmental impact

Dust

substances

COD
Water discharge

Proper management of chemical substances

Emission/discharge control of environmental pollutants in the air

Emission/discharge control of environmental pollutants in water

PRTR Law-designated substances Emission reduction of PRTR Law-designated substances

Promoting green procurement
Eliminating disasters/accidents
Environmental management system*1 Derived from energy in production and management sectors.

15

Evaluation

Promoting energy saving

Environmental and Social Report 2012

Promoting green procurement ratio of office supplies
No occupational accidents (days away from work)
Eliminating severe accidents associated with production facilities
Promoting environmental management system

Environmental and Safety Activities (RC Activities)

Environmental Impact Accompanied with Business Activities

Input
EnergyRaw Material

Water Resource
Water ... 3,183,000 m3

23,800 kL oil equivalentBusiness
Activities

Products

CO2 duringtransport
3,118 tOutput to Environment
Air Environment

Water Environment

Soil Environment

2,865,000 m3

Industrial Waste

CO249,400 t

Water discharge

No emission

Generated amountNOx

121.3 tCOD

21.8 tExternal waste reductions

13,395 t
2,526 t

SOx

3.3 t

PRTR Law-designated Substances

0.3 t

External recycling amount

10,500 t

Dust

2.5 t

External landfill disposal amount

PRTR Law-designated Substances

33.5 tPRTR Law-designated Substances 334.0 t

369 t

Environmental Accounting (Dai-ichi Kogyo Seiyaku Group)
In FY 2011, investment for environmental-related systems
was spent mainly for pollution control, promotion of energy
conservation, and recycling of wastes. Environmental-related
costs increased in the fields of energy efficiency and waste

recycling. The economic benefits herein include profits on
the actual sales of valuable resources and the amount ofcost savings and are not based on estimated economic
benefits.

Investment and Costs of Environmental Protection Activities
Environmental Protection Cost (yen in millions)Category

Upstream/downstream cost

Main Activity
Pollution control
Air pollution control, water pollution control
Global environment protection
Energy saving
Resource recycling
Resource saving, waste treatment/disposal
Lowering environmental impact in containers/packaging

0.7

7.9

Management activity cost

ISO acquisition/completing surveillance audit, greening each plant

3.8

47.8

R&D cost

Environmentally-conscious R&D

0.0

465.8

Social activity cost

Providing support grants for environmental protection to environmental protection groups or local communities

0.2

3.4

Costs within the plant premises

Environmental damage cost
Total

Investment

Costs

100.4

319.1

34.0

162.1

16.8

320.7

0.0

0.0

155.9

1326.8Economic Effects Generated by Environmental Protection Measures
Items

Economic Effects (yen in millions)Remarks

Profit on sale of valuable resources

2.2

Profit on sale of metal scrap, waste oil, and waste alkali, etc.

Amount of cost savings through energy conservation

50.7

Amount of cost savings in electric power and fuels

Amount of cost savings through resource saving

2.7

Amount of cost savings through reduction of water use /waste

Total

55.6

Environmental and Social Report 201216

Environmental and Safety Activities (RC Activities)

Promoting to Reduce Environmental Impact
We promote energy conservation towards global warming prevention.
We will also control emissions of pollutants and continue to make efforts to reduce them.

Global Warming Prevention (Energy Conservation)
Environmental performance data in FY 2010 and 2011 is described based on the calculation with the Dai-ichi Kogyo Seiyaku
Group (total values in all related companies in Japan, including Dai-ichi Kogyo Seiyaku and Yokkaichi Chemical Company)
because we acquired 100% of Yokkaichi Chemical Company in April, 2011.

Changes in Energy Consumption and CO2 Emissions
In FY 2011, the Dai-ichi Kogyo Seiyaku Group recorded
23,800 kl of energy consumption, which was reduced 11.5%
compared to FY 2010. The energy consumption per unit,
however, resulted in a 2.6% increase to our target of 1%
reduction compared to FY 2010 due to a decrease inproduction amounts. The CO2 emissions were 49,400 tons,
which was reduced by 13.4% compared to FY 2010
because energy conversion to natural gas for the boiler fuelat the Yokkaichi Branch, as well as other factors. As a result,the average CO2 emissions from FY 2008 to 2012 shouldhave been reduced by 23% compared to FY 2005
according to our target, but the final result of the average
CO2 emissions from FY 2008 to 2011 was equivalent to a
22.9% reduction. We continue to devote our efforts to
reducing the CO2 emissions towards our goal throughactivities to improve energy efficiency.

Changes in Energy Consumption (Crude oil equivalent)

Changes in CO2 Emissions■Yokkaichi ■Ohgata ■Shiga ■Management sectors■Yokkaichi Chemical Co.,Ltd.

(1,000 kl)(1,000 t)

70

71.0

■Yokkaichi ■Ohgata ■Shiga ■Management sectors■Yokkaichi Chemical Co.,Ltd. ■Derived from non-energy

26.9

25
21.9

23.8

22.5

22.1

20.5

20

18.0

15
10
5
0

05

06

07

08

09

10

FY 2011

Changes in CO2 Emissions

Changes in Energy Consumption

30

60

57.0
51.6

50

49.4
46.6
43.1

40

37.4

30
20
10
0

05

06

07

08

09

10

FY 2011*1: Carbon dioxide emissions derived from non-energy are described from FY 2006.
*2: Carbon dioxide emissions in management sectors include fuels for company cars.

Efforts in Logistic Sectors
We outsource our logistic business for our products to externalfreight companies. We transport products by truck, rail, andship, but the truck transport is most frequently used because it
can instantly respond to the customers' desired delivery date.
Related to environmental impact activities, we have been
fulfilling our role as a specified consigner under the Energy
Conservation Law to tackle the challenges of reducing impacts
on the environment. The freight volume decreased by 5.4% in
FY 2011, but we achieved a 6.4% reduction of energy
consumption and a 6.5% reduction of GHG emissions bypromoting modal shifting. Furthermore, we achieved a 1.1%
improvement in energy consumption per unit. Environmental
impact reduction in logistic sectors plays an important role not

only in the aspect of global warming countermeasures, but alsoin effects on air pollution and/or waste generation. In the future,
we will continue to move forward with our activities by promoting
further modal shifting, and by making efforts to achieve a 1%
improvement in the energy consumption per unit compared tothe previous fiscal year, which is specified in the goals of theEnergy Conservation Law, through increase of loading ratio forreserved services, and reduction of transporting of returned
products.
In addition, we share environmental impact activities with our
logistics partners and continue to pursue better results year by
year while implementing these activities by executing the PDCA
cycle.

Environmental Impact to be Reported as a Specified Consigner
Items

FY 2011Comparison to the Previous Year

31,398,000 ton･km− 5.4%

Energy Consumption Amount

46,073 GJ− 6.4%

Energy Consumption per Unit

1,467,000 GJ/ton･km− 1.1%

3,118t−CO2− 6.5%

Freight Volume

CO2 Emissions

Calculated using the Improved
Ton-Kilometer method, excluding
the Yokkaichi Chemical Co.,Ltd.

Efforts to Power Saving
In FY 2011, since we needed to take measures against power
shortages at the peak of summer and winter (under the jurisdictionof Kansai Electric Power Co., Inc.) due to the influences of theGreat East Japan Earthquake and the subsequent operation
stoppage of the nuclear power plants, we made efforts on powersaving in addition to the conventional activities.
In the Ohgata Branch, where limitations on the use of electricity
were issued in summer, we adjusted the operation schedule on
product facilities and shifted production to weekends and17

Environmental and Social Report 2012holidays, which resulted in a 30% or more reduction from the peakelectricity consumption in FY 2010.
As for approaches for the entire company in general, we extended
the "Cool Biz" campaign period, suppressing the set temperatureof air-conditioning equipment, reduced elevator service, andcarried out thorough energy saving modes in office automationequipment, as well as improved operating hours of production andresearch devices with the aim of reducing peak-hour electricity
consumption. We continue to address power saving in FY 2012.

Environmental and Safety Activities (RC Activities)

Efforts to Reduce Emissions of Chemical Substances
Air Pollution Control

Changes in SOx Emissions(t)

SOx emissions■Yokkaichi ■Ohgata ■Shiga

In FY 2011, Related to reduction of air-pollutant emissions,
we achieved a 50.1% reduction of SOx emissions throughenergy conversion to natural gas from heavy oil for the boiler
fuel at the Yokkaichi Branch, but NOx emissions increasedby 11.1% and dust emissions also increased by 37.9%.
We will continue to pursue more energy efficient operation
techniques compared to FY 2010.
Note that the Yokkaichi Chemical Company does not haveany facilities related to SOx, NOx, and dust generation.

Changes in NOx Emissions

Changes in Dust Emissions
133.2

NOx emissions

140.0

131.1

120.0

124.8

109.2

80.0
60.0
40.0

10.6

9.7

10.0
8.3

8.0

6.7

6.0

3.3

4.0
2.0
0

05

(t)

3.5

121.3
110.4

100.0

11.5

12.0

■Yokkaichi ■Ohgata ■Shiga

128.3

14.5

14.0

Dust emissions

(t)

16.0

20.0

06

07

08

09

10

FY 2011■Yokkaichi ■Ohgata ■Shiga

3.4

3.0

2.7

2.5

2.5

2.5
2.0

2.0
1.6

1.5

1.8

1.0
0.5

0

05

06

07

08

09

10

0

FY 2011

05

06

07

08

09

10

FY 2011

Water Pollution Control
In FY 2011, the Dai-ichi Kogyo Seiyaku Group recorded
2,865,000 m3 in the amount of water discharge, which was a
8.5% reduction compared to the previous year. The COD
discharge amount was 21.8 tons, which was a 0.6%
reduction compared to the previous year. We will continue tomake efforts to reduce the COD discharge amount byimproving our production processes and effluent treatment
facilities, as well as reviewing the cleaning methods ofproduction facilities.

Changes in Water Discharge Amount

Changes in COD Discharge Amount■Yokkaichi ■Ohgata ■Shiga ■Yokkaichi Chemical Co.,Ltd.

(1,000 m )

3,131

3,000

2,865

2,711

2,500
2,000

1,967

2,053

1,979

2,040

1,500
1,000
500
0

COD Discharge Amount

Water Discharge Amount■Yokkaichi ■Ohgata ■Shiga ■Yokkaichi Chemical Co.,Ltd.
3

(t)

70

64.1

60
50

52.9
43.9

40

41.9

38.8

30
20

21.9

21.8

10

FY 2011

10
0

05

06

07

08

09

10

FY 2011

05

06

07

08

09

Voice from the Person in Charge
Efforts to Energy Conservation

Cost Reduction Promotion Department

FUJITA Masahiro

The Cost Reduction Promotion Department reviews the production process incooperation with each branch with the aim of saving energy and reducing
environmental impact including the VOC emission reduction. The Ohgata
Branch now devotes effort to approximately as many as 20 item challenges
that focus on the reduction of electricity and steam consumption. At present,
we are entering the stage of verifying and implementing our proposed planand the number of challenges we have already accomplished is increasing.
We recognize our energy conservation activities in the Ohgata Branch would
have a large influence on the goal of achieving energy conservation
throughout the entire corporation, and promote these efforts.

Environmental and Social Report 201218

Environmental and Safety Activities (RC Activities)

Reduction of Waste and Chemical Substances
We have been devoted to the reduction of waste and chemical substances.
We promote our activities based on the rules to regulate proper management of chemical substances.

Efforts to Reduce Emissions of Chemical Substances
Emissions of PRTR Law-designated Substances
The Dai-ichi Kogyo Seiyaku Group had a total of 60 notification
substances under the PRTR Law in FY 2011. The total amount ofemissions was 33.8 tons, which resulted in only a 1.0 ton
reduction compared to FY 2010. The breakdown was 33.5 tons
to air, 0.34 tons to water, and none to land. The amount of wastetransfer recorded was 334.0 tons, a 82.7 ton reduction

Changes in Emissions

compared to the previous year (20% less) owing to the use ofrecycled Toluene, as well as other factors. Through changes in
production techniques, improvement of production processes
and the introduction of recovery equipment, we will continue
making efforts to reduce the emissions/discharge of PRTR
substances into the environment.

Emissions to Air: ■Dai-ichi Kogyo Seiyaku ■Yokkaichi Chemical Co.,Ltd.
Emissions to Water: ■Dai-ichi Kogyo Seiyaku ■Yokkaichi Chemical Co.,Ltd.

(t )
80

(t )
16

71.8

14

70
60

12

50

10
40.1

40

8
34.6

32.2

33.5

29.4

30

6

4.75

Emissions to Water

Emissions to Air

63.5

4

20
10

1.23

1.09

1.04

2
0.93
0.26

0

05

06

07

08

09

10

0.34

FY 20110

The results in FY 2010 and FY 2011 show the total amount for the Dai-ichi Kogyo Seiyaku Group and the Yokkaichi Chemical Co.,Ltd..
For the emission amount of notification substances under the PRTR Law in FY 2011 (among all notification coverage substances, those of which
the emission or transfer amount was 0.01 tons or more), please visit our webpage.
http://www.dks-web.jp/english/download/rc.html

Efforts to Reduce Waste
We continue to make efforts towards reduction, recycling, andreuse of waste with the aim of effective use of resources. The
amount of waste generation in FY 2011 recorded was 13,395
tons for the Group, which was a 2,380 ton reduction comparedto FY 2010 (15.1% less). The waste generation per unit inproduction amounts (target: 1% improvement compared to theprevious year) was improved by 1.3% compared to the previous
year by reviewing the cleaning methods of production facilities.
The external recycling rate was 78.4%, an improvement of
11.2% compared to FY 2010. The final disposal amountInternal Disposal

19

recorded was 369 tons (target: 80% reduction compared to FY
2000 in FY 2015), equivalent to a 67.4% reduction compared to
FY 2000. In addition, the final disposal rate to the amount ofwaste generation was 2.8%. To achieve the target of the final
disposal rate of 1% or less as in FY 2015, not only the Ohgata
Branch, with a large amount of disposal, but each branch is
examining measures to reduce the final disposal amount.
Furthermore, we continue to push forward the 3R (Reduce,
Recycle, Reuse) activities by improving our production
processes and reviewing our treatment measures.

External Disposal

Internal Waste Reductions

External Waste Reductions(not included
in total amount)

2,526t18.9%

Generated Waste AmountExternal Recycling Amount

13,395t100%

10,500t
78.4%

Environmental and Social Report 2012

Internal Landfill Disposal AmountExternal Final Disposal Amount

0t
0%

369t
2.8%

Environmental and Safety Activities (RC Activities)

Changes in External Recycling Amount & External Recycling Rate
■Yokkaichi ■Ohgata ■Shiga ■Kyoto ■Yokkaichi Chemical Co.,Ltd.
External Recycling Rate ■ Dai-ichi Kogyo Seiyaku Group ■ Dai-ichi Kogyo Seiyaku(t)(%)■Yokkaichi ■Ohgata ■Shiga ■Kyoto ■Yokkaichi Chemical Co.,Ltd.
(t)

15,77416,00020,00018,00014,000External Recycling Amount

Waste Amount

12,00011,015

10,674

9,912

9,664

10,000

8,579

8,000
6,000
4,000
2,000

00

05

06

07

08

09

10

(t)

1,131

1,000
908

Final Disposal Amount

900

81.0

78.3

90
80

78.4

14,00070
67.2

12,00060

10,757

10,0008,409

10,602 10,500

50

9,159

8,479

8,000

40

6,718

40.1

6,000

30
4,284

4,000

20

2,000

10

0

00

05

06

07

08

09

10 FY 2011

0Environment-related Complaints■Yokkaichi ■Ohgata ■Shiga ■Kyoto ■Yokkaichi Chemical Co.,Ltd.

1,100

85.5

16,000FY 2011

Changes in Final Disposal Amount

84.0

83.2

13,39512,800

0

100
95.8

80.7

External Recycling Rate

Changes in Waste Amount

During FY 2011, we received four environment-related
complaints: three for odor, and the other for noise problems.
We took emergency measures and recurrence-prevention
measures in each case.

893

789

800
700
600

498

500

498

400

399

369

10

FY 2011

300
200
100
0

00

05

06

07

08

09

Chemical Substance Management
We set forth the "Chemical Substance Management Regulation"with the aim of global environment protection, accident
prevention, occupational safety, health assurance, as well as
product safety. Based on this regulation, we promote "proper
management of chemical substances over the product life
cycle." We have been making management regulations related
to the understanding of chemical substances in use as well as

their amount, substitute/reduction of harmful chemical
substances, improvement of ambient environments, andmanagement of chemical substances contained in products(Green procurement). We categorize our chemical substances
into three classes based on domestic and international laws,
global agreements, and requests from customers, and we
define the control descriptions for each class.

Class and Description Related to Chemical Substances Management
Class
Class A Substances to be prohibited Chemical substances prohibited to use on products
Class B Substances to be reduced

Description

Chemical substances for which complete abolishment would be preferable from an environmental aspect, and those for which the formula contained in products needs to be changed.

Class C Substances to be controlled Chemical substances for which the amount in emissions or transfer needs to be reduced, those that need to be recycled, and those for which the above substances in Class A and Class B are excluded.

Environmental and Social Report 201220

Environmental and Safety Activities (RC Activities)

Ensuring Safety, Process Safety and Disaster Prevention
We strive to secure a safe and comfortable working environment.
We also engage in conducting emergency drills just in case of emergency events.

Efforts to Occupational Safety
We recognize that ensuring security is the foundation for
effective management and plays a fundamental role in any
business activity. Taking safety first and the respect of humanlife and dignity as our basis, we have been making efforts toeradicate the potential for and occurrence of occupational
accidents. Furthermore, in order to ensure a safe andcomfortable working environment, we have been promoting the“5S” activities (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke inJapanese). Regrettably, in FY 2011, we had two “days awayfrom work” cases and, therefore, failed to continue ourcompany No Accident Record streak. For the case studies ofaccidents, after analyzing the cause of the accident, we try tolaterally disseminate the findings and solutions throughout all
sectors and departments to prevent a similar case fromoccurring again. In addition, we have been placing significant
emphasis on periodic implementation of preventative measuresand safety patrols by the managers concerned in order tolocate unsafe working conditions and operations that may
exist. Moreover, we continue to conduct activities related to risk
prediction, pointing and calling, risk assessment, andexperience-based safety education, and we aim for theactualization of zero accidents.

Industrial Accident Frequency Rate (AFR) & Industrial Accident Severity Rate (ASR) (From January 1 to December 31, 2011)
Compared to FY 2010, the Dai-ichi Kogyo Seiyaku Group was able to improve the industrial accident frequency rate(days away from work) in FY 2011. However, we had two “days away from work” cases in FY 2011 and could not achieve
our target of making the industrial accident frequency rate to zero. We continue to further enhance our conventionalsafety activities in order to achieve the industrial accident frequency rate of zero in 2012.

Changes in Industrial Accident Severity Rate

Changes in Industrial Accident Frequency Rate (Days Away from Work)
Dai-ichi Kogyo Seiyaku Group

Dai-ichi Kogyo Seiyaku
Chemical Industry

0.25

3.47

3.5
3.0

2.30

2.5

2.08

2.0
1.83

1.5

1.23

0.79

1.0
0.00

0.0
02

0.71

03

04

1.55

Severity Rate

Frequency Rate

4.0

0.5

Dai-ichi Kogyo Seiyaku Group

Dai-ichi Kogyo Seiyaku
Chemical Industry

0.20
0.15
0.10

0.75

0.72

0.00
05

06

07

08

09

10

11 yr.

Frequency Rate = (“Days Away from Work” Accident)/(Man Hours) × 1,000,000
This is a numerical value representing the degree of frequency of victim
occurrence per 1 million hours.

0.07

0.06

0.05

0.05
0.01
0.00
0.00

02

03

05

0.05

0.02

0.00

04

0.04
0.00 0.03

06

07

08

09

10

11 yr.

Severity Rate = (Days of Lost Work)/(Man Hours) × 1,000
This is a numerical value representing the degree of severity of an
occupational accident per 1,000 working hours.

Experience-based Safety Education
To prevent occupational accidents, there is an education
method to develop workers’ sensitivity and consciousness
through an experience-based safety education that allows
people to experience pseudo risk. According to the above
method, we introduced pseudo experience devices togenerate solvent and dust explosions in FY 2010, and started

to adopt the experience-based safety education. In FY 2011,
we introduced pseudo experience devices to generate theincident of getting caught in rotary valves, and conductedsafety education in each branch. We also have a plan to
introduce new pseudo experience devices in FY 2012, andcontinue to promote such experience-based safety education.

Voice from the Person in Charge
Efforts in Occupational Safety

Ohgata Branch

SHIMIZU Shinji

21

Environmental and Social Report 2012The Ohgata Branch is making enhanced efforts both on physical facilities
and human aspects and activities to put a brake on occupational accidents.
As an example of efforts on human aspects and activities, we conduct
collective safety education for all employees by utilizing the period of
periodical maintenance and operation stoppage since last October. We
conducted several educational activities related to awareness of the risk ofingredients we handle, prevention of weathering/enduring a recurrence of
past disasters, and enhancement of the five senses through risk experienceeducation using demonstration devices. We will make continuous efforts toimplement those activities in order to eliminate accidents and/or disasters,
and aim for the goal of zero occupational accidents.

Environmental and Safety Activities (RC Activities)

Efforts to Process Safety and Disaster Prevention
Preparation for Emergency
Just in case emergency events such as a fire/explosion,
earthquake, leak, and/or power outage occur, we haveestablished a Process safety and disaster prevention systemfor each branch, and conduct emergency drills according to
the annual program. We also collaborate with local

Kyoto Branchcommunities and organize joint emergency drills, such as withlocal fire departments. In order to be able to take an initial
response immediately should a disaster occur, we haveintroduced a safety confirmation system using text messaging
for all employees, and conduct drills utilizing this system.

Yokkaichi Branch

Yokkaichi Branch

Ohgata Branch

Shiga Branch
Head Office/Laboratory
Osaka BranchTokyo Branch
Yokkaichi Chemical
Co.,Ltd.

Ohgata Branch

Comprehensive drill with the local association of independent disaster prevention organizations

September 2011/March 2012

Comprehensive emergency drill

November 2011/February 2012

Joint emergency drill with the fire department

December 2011

Safety confirmation drill

March 2012

Earthquake and tsunami warning evacuation drill

May/October 2011

Comprehensive emergency drill

June/October 2011

Safety confirmation drill

May 2011/March 2012

Comprehensive emergency drill

April/December 2011, March 2012

Earthquake evacuation drill

April/August 2011

Safety confirmation drill

October 2011/March 2012

Joint emergency drill with the fire department

January 2012

Safety confirmation drill

July 2011/March 2012

Comprehensive emergency drill

June/November 2011

Safety confirmation drill

March 2012

Comprehensive emergency drill

November 2011

Safety confirmation drill

March 2012

Comprehensive emergency drill

September 2011

Joint emergency drill with the fire department

March 2012

Funding for Process Safety and Disaster Prevention Measures
The FY 2011 funding for our process safety and disaster prevention measures
was 113.2 million yen. This funding was mainly allocated to explosion, fire,and leak prevention measures; mitigation measures for aging facilities; andoccupational safety and working environment improvement measures.

Efforts to Distribution Safety
We outsource our transport business to external freight companies.
Aiming to practice environmentally friendly transportation and eliminatetransportation accidents including damage to or deformation of transport
containers during transportation, we periodically hold conferences with
our logistics partners. We use the following documents as useful tools toprovide not only all available information but also proper education andinstruction for our logistics partners: “Safe Driving and Maintenance ofTraffic Order,” “Revised Laws and Regulations,” “Safety andEnvironmental Standards for Delivery Services,” “For Professional Drivers,”and “Transport Specifications.” We also maintain our emergency network
system during transportation.
We provide Yellow Cards for all relevant products and instruct tanker truck
drivers to always keep the Yellow Card(s) with them during transportation.
In addition, we have been working on developing a label-type Container
Yellow Card system, which facilitates the sharing of safety information of achemical substance by indicating the Emergency Response Guidebook(ERG) number and UN number on the Container Yellow Card label.

Yellow Card

Environmental and Social Report 201222

Social Activities

Activities Open to Local Communities
To show our efforts to the public, we transmit information via various media, make presentations in exhibitions,as well as actively engage in local activities based in each branch.

Information Transmission Tools
Transmission Information
For the purpose of providing our stakeholders with accurate and useful
information on our company, we publish brochures such as our company’s
prospectus and our newsletter titled “Takuto.” Our web page also offers not
only this information but information such as that of our technologies, products,
and employment. In addition, to record our environmental and social activities,
we have published a series of our Social Activities Reports as “Environmental
and Social Activities Report” (this document) since FY 2008.
[Brochures]

FY 2011 Exhibition Presentations
During FY 2011, we made presentations at the following exhibitions.
May 2011

ifia/HFE JAPAN 2011 at Tokyo Big Sight
Introduced the food emulsifier formulation "DK FOAMER"

October 2011

Leading Industry Exhibition Mie 2011 at Yokkaichi DomeIntroduced a new thickener consisting of cellulose single nano-fiber

February 2012

neo functional material 2012 at Tokyo Big Sight
Introduced nano-zirconia dispersion, UV/EB cured resin with restoring force, and dye-sensitised solar cell member

June 2012

JPCA Show 2012 at Tokyo Big Sight
Introduced products in the electronic/electric fields, and the EIMFLEX/DK BE-CLEAR Series

ifia/HFE JAPAN 2011
We made a presentation in the "ifia/HFE JAPAN 2011" cafe
trial held at Tokyo Big Sight.
We offered cookies made by a professional pastry chef tovisitors for tasting that contained DK FOAMER B-120. We
asked them to compare our cookies with those not

Cafe Trial at ifia/HFE JAPAN 201123

Environmental and Social Report 2012

containing emulsifier and see if the texture in cookies withemulsifier was improved.
Based on the questionnaire after tasting, we have been
advancing our product development to meet the requests ofthe customers.

Neo functional material 2012Social Activities

Relations with Society & Local Communities
We are moving forward with contributions to society bymaking use of resources specific to our Group. We are
devoted to various local activities including joint activities
with industry groups, acceptance of plant visits,neighborhood cleanup activities and social activities suchas participation in community events. Each branch holds a
consultative meeting with other companies in order topromote local communication.

Activities in Industry Groups
We mainly join the following industry groups and engage invarious activities.
- Japan Chemical Industry Association (JCIA)- Japan Soap and Detergent Association (JSDA)- Japan Surfactant Industry Association (JSIA)- Japan Food Additives Association (JFAA)- International Pharmaceutical Excipients
Council Japan (IPEC JAPAN)- Oil & Fat Industry Kaikan- Japan Oil Chemists' Society (JOCS)- Osaka Industrial Research Association- Kinki Chemical Society, Japan- Kyoto Industrial Association- Advanced Materials Innovation Center (AMIC)The Second AMIC Seminar
October 4, 2011
We made a lecture about theapplication of cellulose single
nano-fiber to thickener.

Plant Visit
In November 2011, a total 43 of industrial doctors and staff fromthe Niigata Medical Association visited our Ohgata Branch withthe aim of obtaining qualification as certified industrial doctor aswell as undertaking the practical training required to maintain thequalifications. After we explained the overview of our company
and the branch, we showed our workplaces to them andexchanged opinions. In addition, in December 2011, 18 people
from the Mie branch of the Japan Association of Safety andOhgata Branch

Health Consultants visited our Yokkaichi Branch.
After the tour of the branch, we were given frank advice on safety
and health from the expert consultants in each field ofoccupational safety and health. We also had a chance toexchange opinions. This visit brought us a meaningful
opportunity for improvement of occupational safety and healthactivities. We arrange and coordinate the plant visit tour fororganizations and students.

Yokkaichi Branch

Yokkaichi Chemical Co.,Ltd.

Neighborhood Cleanup Activities and Participation in Community Events

Ohgata Branch:
Cleanup Activities near the Branch

Yokkaichi Branch: Yokkaichi Minato Festival

Shiga Branch:
Gokasho Ekiden Relay Race Tournament
Environmental and Social Report 201224

Social Activities

Fulfilling Our Social Commitments
We develop our activities to bring up and support children, the leaders of tomorrow, through activities such as lecturedelivery to elementary and junior high school students, and acceptance of students for internship.
We build and operate the Quality Assurance system, as well as provide product information to customers.

Relations with Society & Local Communities
Lecture Delivery for Local School Students
For the purpose of offering opportunities to gain interest in the fun ofchemistry and/or global environment problems, we give lecturedelivery on the theme of "Experiments of Familiar Chemical Products
in Daily Life" as part of our regional contribution activities. We
encourage each student to make an interesting experiment using
detergent and experience the fundamental effects of surfactants.
We hope that they would understand why detergent can remove dirt
and consider the importance of water through our lecture. In

Yotoku Elementary School (Kyoto City)

cooperation with the business promoted by the Kyoto City and
Yokkaichi City Education Boards, we conducted lectures to the sixth
grade students at Yotoku Elementary School (Kyoto City) in
November 2011, and students of all grades at Hashikita Junior HighSchool (Yokkaichi City) in February 2012. We implement lectures bymaking use of our know-how and experience obtained throughbusiness based on the responsibility for influences our corporate
activities have on society.

Kyohoku Junior High School (Yokkaichi City)

Internship & Learning through Work
We have accepted technical college students for internships for along time. So far, many students have participated in ourinternship programs. During their summer holidays, participants
take their own time to complete one or two-week internshipprogram, during which they have a practical work experience inany of our workplaces (such as our laboratories, quality control
section of each branch, etc.) so that they can understand ouractual business operations and services. We are devoted toreviewing and improving each of our programs so that they canreally feel “the meaning of work.”

We believe that accepting students for internships will help themnot only to expand their occupational awareness and improve theirbusiness ability, but also to promote their understanding ofworkplace relationships and effective information exchange while
communicating with their schools. As a part of our CSR activities,
we will continue to offer these internship programs. In addition, we
accept requests from junior and senior high school students inregards to occupational interviews and experience learning at theworkplace.

Acceptance of Technical College Students for Internship(persons)

10
8
6
4
2

Ohgata Branch: Occupational Interview at Ohgata-cho
Junior High School (Joetsu City)

0
08

09

Laboratory: Internship
25

Environmental and Social Report 201210

FY 2011

Shiga Branch: Workplace Experience at Gokasho
Junior High School (Higashi-Omi City)

Social Activities

Relations with Our Customers & Business Partners
Quality Assurance (QA) System
We have acquired the ISO9001 certification through a third
party and introduced the quality management system basedon the required standards. Under this system, we build andoperate the QA system. We establish the quality-related
management standards in each department over the whole ofthe processes, from product planning to customer service via
design/development, manufacturing, and sales. Keeping"Customer First," which is one of our management principles, inmind, we define our Quality Policy as follows:(1) We will strive to design a product with high quality to meetcustomers’ expectations and to supply a highly reliable andsafe product before the due date requested by the customer,

and at a reasonable cost.
(2) We will pursue higher quality in our products and continue
to improve the effectiveness of our Quality Manual in order tomaximize customer satisfaction.
We constantly strive to clarify the quality assurance process, aswell as assigned roles, duty and authority in each QA
department under our QA system in order to implement
in-depth quality control (QC) and provide accurate productinformation while responding to product complaints in a quick
and faithful manner. We have always been devoted toproviding products that are safe for use.

Process for New Product Development
When trying to develop products, suppliers must take into
account a variety of aspects of the customers’ needs in an
accurate manner. We perform QA activities by checking andassessing the progress from multiple viewpoints, so that

regulatory requirements, environmental and security
requirements, and production and distribution can be
secured for all of the following processes: planning,
designing, developing, and manufacturing.

Customer

Planning

DesignResponse to(M)SDS
Indication

Development

Improvement- (M)SDS- Specifications for Delivery- Other Written Certificates

Commercialization

Investigation of raw materials
Safety of the process
Selection of production facilities
Environmental compliance
Regulatory compliance

Supplying productOffering services

Response to Production Request

Function & Performance Evaluation
Property evaluation
Selection of containers
Safety evaluation
Environmental compliance
Regulatory compliance

Offer &
Assessment

R&D Prototype

Production Processes Composition & Packaging& Facilities

Design & Development

Validity Check

Needs

Items to be Assessed

Manufacturing

Provision of the Product Information
We provide product information as an opportunity for (prospective) customers tobetter understand our products. In addition, we always respond to requests andinquiries from our customers quickly and adequately in good faith. For the purposeof providing product information, especially at the stage of introducing our existingproducts and/or developing new products, we strive to be in close communication
with customers and business partners, not only through our everyday businessnegotiations, but also with our brochures and technical documents.
We have been providing material safety data sheets ((M)SDS) for chemical
substances of all our products and answering inquiries about the latest information
on environmental burden substances and/or the relevant laws and regulations. We
have completed the procedures to update our (M)SDS and label indications, andto prepare the GHS-compliant (M)SDS according to the revisions of the Industrial
Safety and Health Law and the Pollutant Release and Transfer Resister (PRTR)
Law. In addition, we are currently updating SDS according to the revisions of theJapanese Industrial Standards (JIS) and GHS-compliant label indications
sequentially.
Product Brochures
Bro

Environmental and Social Report 201226

Social Activities

Aiming for Management that Responds to the Expectations of the People
We conduct quality management, and respond to product complaints in a quick and faithful manner.
We regard the shareholder meeting as an important opportunity for meaningful communication.

Relations with Our Customers & Business Partners
Quality Management System
We operate our quality management activities inaccordance with ISO9001. We accept all information related
to quality, from customers through sales representatives,
and/or directly in the QC section of each branch. Under thissystem, we unify management and promptly respond toquality-related information. Every month we implement
quality management in the product quality review meeting

Business
Administration
Division

Production Control
Division

Business Divisions

Sales
Department

R&D

Production
Department

Functional Chemicals Business Division
Logistics Department
Order receipt & shipping

Plastic Materials Business Division
Electronic Materials Business Division

Product Quality
Review Meeting

Purchasing Department
Material procurementwith our production departments. In the QMS Committee, we
use our PDCA cycles in the management system to promote
improvement and/or advancement measures. In the QA (PL)conference, we review and deliberate on continuing
improvement and/or advancement measures of quality
management and QA activities.

(Head of) Branch
QC Section

QA (PL) Conference

QMS Committee

Environment,
Safety & Quality
Affairs Department

Each Branch

Customer

Response to Complaints and Quality Defects
Product quality complaint management is our top priority toassure stable product quality. Therefore, we haveestablished our internal Procedures for Handling ProductComplaints. We specify procedures to deliver informationfrom the sales department which receives information from
customers to the QC section and relative departments ineach branch, and deal with quality-related complaints
according to these procedures. Our policies for handling
product complaints focus on the following practices:maintaining credibility by responding quickly and in goodfaith, thoroughly probing the cause of the complaint, andtaking preventive measures and recurrence prevention

measures. We share quality defect and complaint
information through the network, and conduct progress
management while setting the goals to reduce the number ofcomplaints and quality defects. When an abnormal event
occurs, we clarify the root cause using our analyzing method("Naze-naze analysis") and take recurrence prevention
measures. This fiscal year we invited an external lecturer
and held the lecture meeting on how to write and utilize the"Naze-naze sheet (root cause analysis sheet)" and tried to
improve the level of our activities. In addition, each branch
conducts a product quality inspection patrol on a monthly
basis.

Product Liability (PL) Policy
We established our Product Liability (PL) Prevention &Management Procedures and PL Accidents Prevention
System to ensure the safety of our products and to prevent
product safety accidents from occurring. Our fundamental
policy is to secure the maximized product safety over thewhole processes consisting of R&D, manufacturing, andconsumption, and the final disposal, as well as to develop,
manufacture, and sell products with higher safety andreliability, and to offer customer services for them.

Partnership with Our Sales Agents and Distributors
In order to offer products that respond to market trends andneeds and to promote the sale of such products, our sales
department has been devoted to developing new marketing
practices in cooperation with our sales agents anddistributors.
Our company has a group of sales agents and distributors
known as "Zenkoku Ichi-Ko Kai," composed of our major
sales agents and distributors. The general assembly is held
annually, and FY 2011 was the 30th.
In the meeting, we explained our business performancetrends and progress of our medium-term management plan
"Change 100 Plan." At the convivial party, we exchanged
information with our sales agents and distributors while
promoting mutual friendship.
27

Environmental and Social Report 2012

Zenkoku Ichi-Ko Kai (DKS National Sales Agents and Distributors Meeting)Social Activities

Issue of 100 year's Company History Book
Our company commemorated the 100th anniversary of its foundation in April, 2009. We
would like to make this important milestone to be the starting point of getting ahead of
the times as a leading chemical manufacturer that offers industrial chemicals.

Relations with Our Shareholders & Investors
Shareholder Meeting
We regard the shareholder meeting as an important opportunity
to foster communications between shareholders andmanagement.
100 shareholders attended the annual shareholder meeting on
June 26, 2012. Our President, Dr. Oyanagi, chaired the meetingand presented an annual business report and an explanation ofeach agenda item. We always try to provide a clear explanationof our report using narration and slide presentations, so that allof our shareholders can understand the points well.

During a question and answer session, there were fourquestions and opinions that came from one participant, which
resulted in about 62 minutes of discussions.
After the meeting, Vice President, Mr. Sakamoto, had thebriefing session on a new medium-term management plan,followed by a shareholders get-together with top management.
We had meaningful exchanges of opinions with ourshareholders in a relaxed and friendly atmosphere.

Shareholder Meeting

Shareholders Get-Together

Information Disclosure
We disclose a variety of information, including our company
overview and investor relations, on our web page. After
official disclosure, we promptly post timely disclosure
documents, shareholder letters (to our shareholders), an
earnings summary, notice of calling of shareholder
meetings, and news releases.

http://www.dks-web.jp/english/ir/index.html

Environmental and Social Report 201228

Social Activities

Fostering Full-Fledged Employee/Corporate Member of Society
We organize our employment system in response to the demands of the times so that all employees can progress
respectively, and launch enhanced programs related to human resource development and education.

Relations with Our Employees
Our company recognizes that our employees are our greatest asset and that the growth of each individual employee will support thegrowth of our company. To assist each of them in becoming a full-fledged employee/corporate member of society and gaining a senseof accomplishment and satisfaction from their work, we have been devoted to protecting the human rights of our employees andimproving various human resource systems, human resource development and education, and working environment development.

Our Company’s Human Resource Philosophy
Our fundamental human resource philosophy is rooted in the idea that our people are our greatest asset and must be
nurtured and treasured. We believe that by putting our belief into practice the growth of each individual employee will
support the growth of our company and will allow our employees to be active, to grow, and to realize their potential ineach workplace. This will help them in not only achieving their self-actualization but also serving as a driving force forfurther developing of our company, as well as making the company’s presence permanent.

Human Resource Development Policies
In order to foster people who can fully understand our company’ s management philosophy and the management
policies based thereon and can contribute to the realization of such philosophy and policies, we require that ouremployees have the following basic skills and attitudes:
1. Profound expertise, technique, and broad vision
2. Energetic attitude and behavior
3. Flexibility in thinking
4. Fruitful in terms of creativity

General Business Owner Action Plans
Our company has established General Business Owner Action Plans, which are intended to help our employees balance
their careers and child-rearing. These action plans have been shared with the public and within the organization.

General Business Owner Action Plans (summary) (From April 2010 to March 2015)
Target 1: Familiarizing our employees with our child-rearing support system and enlightening them
Target 2: Implementing measures to reduce overtime work
Target 3: Implementing measures to promote taking annual paid leave
Target 4: Performing community contribution activities related to children and child-rearing practices
Target 5: Expanding opportunities to obtain working experience including internship
Our Personnel System■ Employment System
In response to the declining birthrate and aging society,and in order to promote a healthy work/life balance, wehave developed the following personnel systems, each ofwhich takes into account employees’ child-rearing andnursing care.
- Childcare Leave System - Childcare Part-time Work System- Nursing Care Leave System■ In-house Achievement Award System
Through our employee incentive programs, we have beenrunning not only a performance incentive system such as
patent and personal achievement awards, (twice per year)
but also Division Manager’s and length of service awards.

Number of Employees Who Have Used the Personnel Systems
During the Last Five Years(persons) ■Childcare Leave System ■Childcare Part-time Work System ■Nursing Care Leave System

108FY 2011 First Half Achievement Award Winners

6
4
2
0

07

08

09

10

11(FY)■ Retiree Reemployment System
We have introduced a reemployment system for ourcompany’ s retirees since FY 2006. By drawing on their
many years of skills, techniques, and experience, they still
remain active as “senior challenge staff.”
29

Environmental and Social Report 2012

■ Efforts to Prevent Harassment
As for activities to prevent (sexual, power, and moral)
harassment, we provide related education programs inhierarchical training courses, and take care of any (alleged)harassment incidents by established contact points.
We took harassment prevention as the main theme of ourmonthly industry ethics campaign in October, FY 2011. We
utilized DVDs for each employee to give education
problems and solutions, and established the Harassment
Prevention Regulations in order to clarify our policy as acompany.

Social Activities

Human Resource Development & Education
Our employee development and education programs focus on three pillars—
in-house education, external education, and self development support. In
addition, we have been dedicated to supporting voluntary capacity building of
our employees by providing them with in-house lectures and briefing sessions.
In FY 2011, we conducted human resource development and education
programs based on the newly established education training system. We alsorenovated the building in Shichijo Sembon, Kyoto City, which was the place of
our foundation, for it to become the Senbon Training Institute, and started
training. While converting the educational programs in the quantitative as wellas the qualitative sense, we organize learning environments and launchenhanced programs related to human resource development and education.

In-house Education Programs▶

Corporate Manager Development Training

Brother/Sister System(New employee Training Sheet,
Safety and Health Training Sheet)

External Education Programs▶

Hierarchical Training- New employee Education/
Follow-up Training- Mid-carrier Staff Training- New manager training

Experiment of Design Training

Professional Education- Engineer Training &Sales Rep Training- ISO Quality Internal Auditor
Training Program

Self-development support program▶

- Encouraging Employees toSign Up for Correspondence
Courses- Qualification Acquisition
Support System- English Conversation Class Started- Chinese Conversation Class Started- Supporting Employees toParticipate in External Seminars

English Conversation Class

Voice from the Person in Charge
Efforts on Human Resource Development

Personeel Section
Personeel & General Affairs Department

MORI Yoshiyuki"Improving managerial skills and human resource development" is
one of our management policies in the 'Change 100 Plan.' We
reviewed the conventional human resource development system in
FY 2010, and launched the new system in FY 2011. We improved
the hierarchical education system throughout the entire corporation,and took a new approach in promoting department education.
Establishing a new system requires a great deal of hard work, but
we promote our efforts while looking forward to seeing those whobear our company's future grow.

Environmental and Social Report 201230

Social Activities

Expanding Opportunities of Our Own Activities
We promote such employee-centered efforts as meeting for presentation of research results, and improvement
activities with the participation of all employees.
Furthermore, we conduct regular health checks and have mental health care programs to support our employees'
health in both body and mind.

Relations with Our Employees
Meeting for Research Presentation
We hold meeting for research presentation twice every year,
which provides company-wide technical forums for our
researchers to present and discuss their latest findings in R&D
and production technology developments. Meeting for
Research Presentation are composed of three sections: a
special seminar presented by a visiting lecturer, verbal
presentations, and poster presentations. In FY 2011, we held
the 74th and 75th meeting for research presentations in Julyand January, respectively. At a convivial meeting following themeeting for research presentation, participants vote on the best
meeting for research presentation and a winner is awarded.
DKPM Activities
The initials DK of DKPM Activities stands for Dai-ichi
Kogyo Seiyaku, and PM for Productive Maintenance.
They are based on improvement activities and arecontrolled according to the “5S” activities, which
encourage not only supervisors to set the pace with
their leadership, but also all employees to participate in.
We launched the DKPM Activities as a company-wide
approach with the aim of securing safety, improvementof quality, and increase of production efficiency, whichconstitute key elements for a manufacturer.
In October, 2011, we started to conduct survey
research on the “5S” activities among 10% of
employees in each branch, and classroom lectures for
managers twice. In addition, in a practical manner, we
conducted hands-on training only for managers, as wellas performed diagnosis by top management.
In April, 2012, we held a kick-off meeting among all
employees and started the improvement activities.

Workshop

DKPM Diagnosis by Top Management

In-house Seminars and Briefings■ Seminars (by a visiting lecturer)
Creation of Organic-Inorganic Hybrid and Development
into Functional Materials
Microwave-based Chemical Process – Current State andProblems■ Briefings
Export Control System of Safety Assurance.
Compliance
Anti-Monopoly Act, Catch-all Controls, Subcontract Law

In-house Magazine
We publish the in-house magazine “DKSCOM” every
other month to introduce various articles including
messages from top management, regarding
management policy, and covering our employees'
performance.
Our editorial policy is as follows:(1) Convey management policies and information toeach employee and share them.
(2) Promote communication between managers andemployees.

31

Environmental and Social Report 2012

SeminarSocial Activities

Healthcare & Occupational Safety and Health■ Health Checkup
As a result of encouraging and motivating all our employees to
get regular medical checkups, their checkup-participation rate
in FY 2011 increased to 100 % of our goal.
We will also make further efforts to achieve 100 % participation
in FY 2012. We also place importance on follow-up measures
after checkups, especially in regards to any abnormal findingsin the results. Since FY 2010 we have recommended
reexamination and second checkup participation for
employees who received results with abnormal findings inorder to ensure that they do not fail to attend reexamination,and help them understand the clinical results. Consequently,
the rate of reexamination and second checkup-participation
was 75 % in FY 2010, and 83 % in FY 2011.
We will continue to promote this activity in order to prevent any
current symptoms from leading to serious illness and/or keep
any illness or other problems from increasing in severity. To
achieve early detection of cancer and ensure the promotion ofgood health for our employees, in FY 2011 we conducted
medical checkups including a fecal occult blood test, X-ray
examination of the stomach, abdominal echocardiography,
dental checkup, and PSA testing in all our branches.

■ Blood Donation
The Kyoto Branch annually conducts a blood
donation campaign upon the request of theJapanese Red Cross Society. With the cooperationof employees, the branch appeals to each person
to donate 400 ml of blood. The number of blood
donors was 13 this year. In the Yokkaichi Branch 26
employees cooperated with the twice-held
campaign, and in the Ohgata Branch 20 became
donors.

Yokkaichi Branch

Kyoto Branch■ Mental Health Care
We held a total of 13 mental health seminars on acompany-wide basis in FY 2011 with the aim ofearly detection and treatment of mental disabilities
or problems in order to attempt to prevent patientsfrom taking administrative leave. In addition, we
introduce those who need to receive counselingtreatment to external organizations.

■ AED Seminar
Along with increased placement of AEDs and theincreased number of AED seminar participants
across the nation, the number of lives saved andpeople rescued is increasing. Responding to thismovement, we placed AEDs in all our branches,
and through AED seminar devote our efforts tocultivating people who can provide emergency
medical treatment. The Ohgata Branch started AED
seminar in 2007, and all the employees havefinished the course. At present, AED seminars areheld for new and temporary employees.

Ohgata Branch

Kyoto Branch

Environmental and Social Report 201232

On-Site Report
On-SitYokkaichi Branch
Located in the coastal area of northern Mie Prefecture, our Yokkaichi
Branch is blessed with natural surroundings that include the lush,
green Suzuka Mountain Range, the water-filled Kiso Three Rivers, andIse Bay. In order to protect this nature-rich region and its richly
endowed environment, we strive to integrate environmental
consciousness into all our business activities and continue to
implement environmental protection practices.
We updated steam boilers in May 2011, and reduced CO2 emission
by switching the fuel for steam boilers from heavy oil to natural gas
and improving the combustion efficiency.
We cooperated with the public fire department, and conducted joint
emergency drills for complex disasters that of earthquakes,
hazardous material leakage, and fires in December 2011.
We adopted our annual slogan “Yokkaichi Restoration” at our branch
in 2012. We strive to conduct activities in a positive manner and withthe aim of the reduction of environmental impacts while dealing withvarious changes surrounding our branch, and continue to work on
improvement with relation to the environment.

Address: 7 Chitose-cho, Yokkaichi City, Mie Pref.

Branch Manager of
Yokkaichi Branch

TANAKA Hiroshi
Panoramic View of Yokkaichi Branch

Environmental Impacts in FY 2011
（kL）

2,131

（t-CO2）

4,246

Generated Waste Amount

（t）

7,175

Final Disposal Amount

（t）

26.0

PRTR Emissions

（t）

32.38

（1,000 m3）

597.9

（t）

1.8

Energy Consumption (Crude oil equivalent)
CO2 Emissions

Area of the Site: 17,647 m2
Main Products:
Polyether polyol, urethane prepolymer, UV-curable
monomers/oligomers, anionic surfactant, oiling/finishing
agent, cationic surfactant

Efforts in Environmental Activities

Water Discharge Amount
COD Emissions

Efforts in Social Activities

In regards to the update period of our steam boilers, we
switched their fuel from heavy oil to natural gas in May
2011, for the purpose of reducing CO2 emissions.
Because this fuel conversion and other measures worked
well, in FY 2011 our branch achieved a 28% reduction of
CO2 emissions compared to FY 2010.
We also put efforts on energy saving measures byeffectively using the boiler heat emissions and introducing
equipment to increase the boiler efficiency.

As our branch located in the industrial complex, we have actively
promoted dialogue with society through disaster prevention
measures since last year's earthquake.
We cooperated with the local association of independent disasterprevention organizations, and joined disaster drills and meetings. In
addition, in the discussion with the local government, we agreed toopen our company housing's rooftop as an evacuation area if atsunami occurs. In this way, we enhanced our communication andrelationships people in the surrounding localities.

Plant Administration Section
FUJIWARA Atsushi
Gas Boiler

Overseas Affiliates

Chin Yee Chemical Industries Co., Ltd.

33

●Established: June 1975
●Address: Headquarters in Taipei City, Plant in Taoyuan County, Taiwan●Business Outline: Manufacture and distribution of surfactants, lubricants for plastics, and chemicals for electronic materials●ISO Accreditation: ISO9001 (2001), ISO14001 (2006)■RC Activities Status
The company is promoting the RC activities based on the ISO management system. With theaim of achieving more efficient control of impact on the environment, they are devoted to
improving production processes to reduce and recycle wastes. They also make efforts tocreate various operating standards in order to promote pollution prevention measures,
management of hazardous substances, and emergency countermeasures.

Environmental and Social Report 2012

On-Site Report

Ohgata Branch
Endowed with lush green natural surroundings, our Ohgata Branch issituated in Niigata Prefecture and faces the Sea of Japan. While
enjoying the blessings of this region, we are devoted to the
production of a wide range of products, including CMC, water-borne
urethanes, various surfactants, and inorganic materials. “Throughout
the entire life cycle of our products, from development to disposal, we
will pay special attention to both human safety and health andenvironmental preservation and also contribute to sustainable
development and the realization of an affluent society.” We adopt theabove statement as our basic philosophy for environmental andsafety practices. In recent years, we have made efforts to promote
greater use of energy conversion and implement waste reduction
practices. The Ohgata Branch will continue to actively participate inenvironmental protection energy programs and energy-saving
activities, while looking forward to the realization of a more livable
planet and a spiritually affluent society.

Address: 230 Saigata, Ohgata-ku, Joetsu City, Niigata Pref.
Area of the Site:

TSUJI Hironobu
Panoramic View of Ohgata Branch

Environmental Impacts in FY 2011

polyvinyl

pyrrolidone,

（t）

956

Final Disposal Amount

（t）

142.0

PRTR Emissions

COD Emissions

Efforts in Environmental Activities

Maintenance Section
TAKUMA Junya

Maintenance Section
HAO Shigeru

8,559
18,120Generated Waste Amount

Water Discharge Amount

We set the environmental goals for our branch in theenvironment management system, and continue to makeefforts to reduce environmental impacts and energy
consumption. We are actively making efforts on the
improvement of water quality in effluent treatment facilities,
recycling of wastes, and energy saving activities.

（kL）（t-CO2）

Energy Consumption (Crude oil equivalent)
CO2 Emissions

87,116 m2

Main Products:
CMC, water-borne urethanes,
industrial detergents

Branch Manager ofOhgata Branch

（t）

0.42

（1,000 m3）

389.9

（t）

12.7

Efforts in Social Activities
Our branch, adjacent to streets of the old part of town, iscreating better relationship with the region through active
participation in local events and dialogue with local people.
We enhanced communication with local people by joining
local events, emergency drills with the fire department andassociation of disaster prevention, and meetings with local
residents.

Plant Administration Section
KAWASE Ryuji

Plant Administration Section
MIZUSAWA Naoya

Overseas Affiliates

Tianjin Dai-ichi Fine Chemicals Co., Ltd.
●Established: February, 1992
●Address: Headquarters and Plant in Tianjin City, China●Business Outline: Manufacture and distribution of industrial medical agents, mainly fiber processing agents●ISO Accreditation: ISO9001 (2001), ISO14001 (2006)■RC Activities Status
Through constructive environmental-related investment activities, the company is devoted
to changing to green materials, development of green products, energy conservation, andwaste reduction. In FY 2011, we received a letter of appreciation from the Environmental
Protection Administration of Tianjin Economic and Technical Development Zone, regarding the environmental information disclosure of our company.

Environmental and Social Report 201234

On-Site Report
On-SitShiga Branch
Nestled beneath Mt. Kinugasa, our Shiga Branch lies in the green Higashi-Ohmi
area, looking out over Japan’s mother lake, Lake Biwa. We have been paying
close attention to the environmental aspects of all our business activities andimplementing environmental protection practices through continual
improvement of our business activities. Our focus is placed on fostering
dialogue with society so that our plant can peacefully coexist with them.
So far, we have put our efforts to promote environmental protection practices,such as the introduction of a cogeneration system, air pollution reduction
through fuel conversion, and renovation of our effluent treatment facilities.
In recent years, we have engaged in promotions to maintain company owned
forests as part of in-house volunteer activities by our employees. In addition, we
succeeded in changing a part of the overall waste to valuables throughcomplete segregation, thereby resulting in significant reduction in terms of final
disposal.
We are devoted to further improving the natural and social environments whileemphasizing compliance with stringent attention towards environmental
requirements.

Branch Manager of
Shiga Branch

KAWAMOTO Wataru
Panoramic View of Shiga Branch

Environmental Impacts in FY 2011

Address: 427 Gokasho Hiyoshi-cho, Higashi Ohmi City, Shiga Pref.

6,417
12,345Generated Waste Amount

（t）

2,581

Final Disposal Amount

（t）

10.6

PRTR Emissions

（t）

0.34

（1,000 m3）

1,149.9（t）

5.7

CO2 Emissions

Area of the Site: 105,753 m2
Main Products:
Sucrose fatty acid esters, food additives, metal surface
treatment
agents,acrylic
polymer,surfactants,
water-soluble
polyesterpolyol,solvent-substitutewaterborne/non-waterborne detergents

Efforts in Environmental Activities
We disposed of plastics as "waste plastic" belonging to industrial
waste, but succeeded in making a part of it recycle-based under
the condition that contents are clean. We have started a pick up
service using a plastic recycling company.
This practice helped us to reduce approximately 45 tons ofindustrial waste. In addition, we were able to reduce the amountof "wastepaper" by approximately 29 tons owing to recycling. We
achieved our environmental goal of "Reduction of the Industrial
Waste Amount," as well as the final (landfill) disposal amountbeing reduced, and could contribute to the "zero emission" policy.

Plant Administration Section
KOBAYASHI Hideki（kL）（t-CO2）

Energy Consumption (Crude oil equivalent)

Plant Administration Section
TAKAHASHI Yuji

Water Discharge Amount
COD Emissions

Efforts in Social Activities
Satoyama is the Japanese term for the border zone or area
between mountain foothills and arable flat land. Our Shiga
Branch, blessed with nature, constantly strives to live in harmony
with nature. We recruited volunteers among our employees andlaunched the "Shiga Branch group for the protection of Satoyama"
as one of our activities to maintain company owned forests.
People of all ages join the group and promote activities as well as
having the occasional convivial gathering.
We continue to maintain the previously untouched and wild
mountain setting behind the branch, and see it returning tograssy bamboo forests, though little by little.

Group for the protection of Satoyama

Overseas Affiliates

PT. Dai-ichi Kimia Raya

35

●Established: April 1996
●Address: Headquarters and Plant in Java, Indonesia●Business Outline: Manufacture and distribution of fiber processing agents, resin additives, paper additives, and food additives●ISO Accreditation: ISO9001 (2003)■RC Activities Status
The company is making efforts to promote energy conservation by reducing the energy
consumption related to the production amount, and to improve more effective resource
utilization by recycling cooling water. In addition, they are devoted to making active
contributions to local communities through cooperation in providing a scholarship fundto local residents, making donations to religious events, and planting trees.

Environmental and Social Report 2012

On-Site Report

Yokkaichi Chemical Co., Ltd.
Yokkaichi Chemical Co., Ltd. was established in 1959 in Yokkaichi City, the firstindustrial complex in Japan, as a manufacturer of ethylene oxide derivatives
centered on non-ionic surfactants.
The company has acquired certification for the environmental management
system international standards in 1999 based on our corporate philosophy andsafety, environmental, and quality policies. In 2002 we announced our
implementation of the RC (Responsible Care) activities, and continue todevelop approaches on conservation of the environment.
We strive to integrate environmental consciousness into all our businessactivities and continue to implement environmental protection practices throughR&D that covers product life from development to disposal, thorough waste
management, waste reduction, and more effective energy and resource
utilization in production processes.
We are devoted to conducting fair and transparent business activities andfulfilling the social responsibilities while emphasizing compliance with stringent
attention to environmental requirements, and enhancing thorough safety andcoexistence with the global environment.

Yokkaichi Chemical Co., Ltd.
President

IZUMI Hiroyuki
Headquarters of Yokkaichi Chemical Co.,Ltd.

Environmental Impacts in FY 2011
（kL）

5,978

（t-CO2）

13,421

Generated Waste Amount

（t）

2,615

Final Disposal Amount

（t）

185.0

PRTR Emissions

（t）

0.68

（1,000 m3）

727.3

（t）

1.5

Energy Consumption (Crude oil equivalent)

Address: Headquarters/Yokkaichi Plant:
2-1, Miyahigashi-cho, Yokkaichi City, Mie Pref.
Rokuromi Plant:
710, Rokuromi, Oaza, Yokkaichi City, Mie Pref.

CO2 Emissions

Area of the Site: approx. 30,000 m2 (Headquarters/Yokkaichi Plant),
approx. 26,000 m2 (Rokuromi Plant)

Water Discharge Amount

Main Products: Alkylene oxide derivative, epichlorohydrin derivative, alkylphenol

COD Emissions

Efforts in Environmental Activities
The company has acquired certification for theenvironmental management system international standards.
We strive to improve on the continuous reduction ofenvironmental impacts and energy conservation as adesignated energy management factory. We are actively
making efforts on the reduction of waste and water
discharge through reexamination of process conditions,energy reduction, and a change to more energy-efficient
lighting.

Engineering & Plant Maintenance GroupKAWAMOTO Kimihito

Efforts in Social Activities
We enhanced communication with local people by joining
local cleaning campaigns, seminars in local communities,
and the local association of disaster prevention under the
motto: "Acquire public understanding of our company bypromoting community service, dialogue with local
residents, and peaceful coexistence."

Production Group B
YADA Kenichi

Shiohama District Zero Waste Campaign

Overseas Affiliates

Shuang YiLi (Tianjin) New Energy Co., Ltd.
●Established: March 2005
●Address: Headquarters and Plant in Tianjin City, China●Business Outline: Manufacture and distribution of lithium-ion battery●ISO Accreditation: ISO9001 (2007)■RC Activities Status
The company strives to save electricity by managing the usage of air conditioners and lights, as well as significantly reducing the amount of waste throughpromotion of recycling. They also periodically conduct emergency drills asprocess safety and disaster prevention activities, and perform safety production
education for employees.

Environmental and Social Report 201236

Cover: Kubiki Mountain Range
Our Ohgata Branch is located in the northeast of the Kubiki plain in western Niigata prefecture. Bordering the
Sea of Japan, it is one of the most beautiful places in Japan with its white sand and green pines. The Ohgata
Branch was established in 1960 as the fourth production base following Kyoto, Tokyo, and Yokkaichi. The
whole base district of the Kubiki Mountain Range viewed southwest from our branch is one of the heavier
snowfall areas in Japan. The Kubiki Plain expanding toward the Sea of Japan carries abundant melted snow
water flowing out from the Kubiki Mountain Range. It is one of the most famous production areas of highquality rice and rice wine in Japan.

Published in September 2012.
The next issue will be published in September 2013.