Our
Company
Motto

Contributing to the nation and the society through industry.
Our
Company
Credo

Message from the President
Contribute to realization of “sustainable society”
through our business practices.

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 evaluation by
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 waythat allows them to use their own ingenuity and creativity to achieve highly efficient results on both a spiritual and technological basis.
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.

CONTENTS
2 ... Message from the President
About Us
3 ... Company Overview/Financial Data/
Medium-term Management Plan: “Change 100 Plan”
5 ... Our Useful Products in Daily Life
7 ... Environmentally Friendly Products & Technological
Development
8 ... History of Environmental and Social Activities
Promoting Environmental & Social Activities
9 ... Corporate Governance/Compliance/
Internal Control/Risk Management
Social Activities
11... Relations with Society & Local Communities
14... Relations with Our Customers & Business Partners
16... Relations with Our Shareholders & Investors
17... Relations with Our Employees
Environmental and Safety Activities (RC Activities)
21... Basic Philosophy, Basic Policies, and Corporate
Principles for Environmental and Safety Practices/RC
Promotion System/Management System
23... Targets & Performance in RC Activities/Environmental
Accounting/Funding for Security and Disaster
Prevention Measures/Environmental Impact Accompaniedwith Business Activities
25... Global Warming Prevention (Energy Conservation)
Air Pollutants Emission Control/Water Pollutants
Discharge Control
27... Efforts to Reduce Emissions of Chemical
Substances (PRTR)/Efforts to Reduce Waste
29... Efforts in Transport Safety/Efforts in Occupational Safety
On-Site Report
31... Yokkaichi Branch/Ohgata Branch/Shiga Branch

01

Environmental and Social Report 2011

Environmental and Social Report 2011: Editorial Policy
We first published our “Environmental & Safety Report”
on our Responsible Care (RC) activities in 2003. In
2008, we added new content on our social activities tothe previous contents on our environmental, safety, andhealth efforts, and renamed the report “Environmental
and Social Report” with the aim of improving theinformation on our social involvement. This is the fourth
edition of the “Environmental and Social Report”, and it
will be the ninth publication if we count from the firstreport. We always try to prepare for and provide lucid
and comprehensive reports so that all of our stakeholders can properly understand what CSR activities
Dai-ichi Kogyo Seiyaku is undertaking.

A Summary of Dai-ichi Kogyo Seiyaku’s Environmental
and Social Report
Organizations Covered by this Report
Dai-ichi Kogyo Seiyaku Co., Ltd.
Head Office, Laboratory, Tokyo Branch, Osaka Branch,
Nagoya Branch, Kyushu Branch, Yokkaichi Branch,
Ohgata Branch, and Shiga Branch
National Affiliates Located within the Premises of Dai-ichi Kogyo Seiyaku
Gembu Co., Ltd.; Dai-ichi Kenkou Co., Ltd.; Dai-ichi Clean
Chemical, Inc.; and Elexcel Corporation Ltd.
Period Covered by this Report
Essentially, this report contains our activities and data forfiscal year 2010 (from April 1, 2010 to March 31, 2011).
The data on Industrial Accident Severity Rate (ASR) andIndustrial Accident Frequency Rate (AFR) were obtained
from January to December 2010. Note that this report
partly contains descriptions after April 2011.
Reference Guidelines“Environmental Reporting Guideline 2007”/“Environmental
Accounting Guideline 2005” from the Ministry of The
Environment“Environmental Accounting Guideline for Chemical
Industries” from the Japan Chemical Industry Association(JCIA), November 2003

We would like to express our heartfelt sympathy to the people
who have suffered great damage through the Great East
Japan Earthquake. We are praying for the rapid recovery of
the affected areas.
The Japanese economy is now in a very difficult phase due todamage caused by the great earthquake and the subsequentcrisis at the nuclear power plant. We also consider thatJapan's energy policies and countermeasures against global
warming have reached a major turning point. Direct damage
to our corporate group suffered was limited, but this disaster
caused us to reaffirm the importance of the supply chain
management and risk management that mainly support ourbusiness activities. We intend to develop further approaches
to business continuity in preparation for disasters.
Our corporate group has been placing emphasis on five corebusiness segments: surfactants, amenity materials, polyurethane materials, functional materials, and electronic devicematerials. To date, we have continued to offer specialty
chemicals to meet our customers’ needs. Now that climatechange and risks arising from chemical substances are both
recognized as global environmental issues, we see thatcurrent trends around the world call for efforts to realize
sustainability in society.
Since joining the Japan Responsible Care Council (JRCC) in
1998, Dai-ichi Kogyo Seiyaku has been aggressively promoting RC activities. While engaged in activities to ensure thebest environmental, safety, and health practices, we, as achemical manufacturer that offers industrial chemicals, needto respond to demands from the fields of environment, energy,
and information, as well as offer high value-added or
improved existing products with their peripheral technologies.
We always hope to contribute more to the realization of a"sustainable society" through our business practices.
Since its foundation, Dai-ichi Kogyo Seiyaku has consistently
upheld its mission statement–“contributing to the nation andthe society through industry”–in which the spirit of the founderremains alive. We believe that the realization of this mission
statement will be not only the focus of corporate social
responsibility (CSR) efforts across our corporate group, butalso the basis of our management principles.
Our company credo–“Quality First, Cost Reduction, and R&D
Efforts”–captures the basic spirit with which we ensure
customer satisfaction, which is based on the concept of“supply better products to customers at lower prices.” This

concept has been continuously embraced since the inceptionof the company. With the credo in mind, we make every effort
to be a company with a strong presence, while putting the“technology makes the company” concept into practice.
In the fiscal year 2010, the second year of our medium-term
management plan “Change 100 Plan,” we have become
devoted to further improving our company culture andenhancing training and education for people who will be able
to take this company over in the future, and promoted thesettlement of becoming a revenue-generating company. In
terms of our RC activities, we have approached promotion ofenergy savings, implementation of the GHS adoption in theworld, and preparation of REACH registration. In the fiscal
year 2011, the final year of "Change 100 Plan", we intend toachieve the plan's goals, and launch the development of thenext three-year management plan based on the revenuegenerating structure we cultivated for two years. In addition,
we pursue the "synergy effect" with Yokkaichi Chemical
Company of which we acquired 100% in April to further
expand the business of our corporate group.
We declare that each of our employees will not only observe
all legal regulations and international rules, but also obey thespirit thereof and behave in a socially sensible manner.
We, as a corporate member of society, will practice fair andtransparent corporate activities by enhancing our corporate
governance, implementing compliance programs, and developing eco-friendly, safe and health-friendly products. The
hope of our company is to promote open communication withall stakeholders and to continuously work to become acompany that has not only the confidence of society, but also
a strong presence in the specialty chemicals industry.
We encourage you to look over this summary of our activities
in 2010 titled “Environmental and Social Report 2011.” We
hope this report will help you to understand the perspective of
our company and to learn more about our current activities.
We always appreciate your continued support and guidance.
Sincerely yours,

OYANAGI Masatoshi, Ph.D.
President
September, 2011
Environmental and Social Report 201102

About US■ Medium-term Management Plan: “Change 100 Plan”

Medium-term Management Plan:“Change 100 Plan”(April 2009-March 2012)“Each of Us Holds the Key to Success”

Business Segments & Main Products

Dai-ichi Kogyo Seiyaku Co., Ltd.
5 Ogawara-cho, Kisshoin,
Minami-ku, Kyoto City
Date Business Started: April 1909
Date Established:
April 1918
Representative:
OYANAGI Masatoshi, Ph.D.
(President)
Capital:
7.1billion and 41.7 million yen*
Number of Employees: 861 persons (consolidated)*
554 persons (non-consolidated)*(*as of the end of March 2011)

B u sine s s S egmen t

Domestic Branches
Dai-ichi Kogyo Seiyaku Co., Ltd.

Management Principles & Policies in the “Change 100 Plan”

M ai n P r o d u c t s

Surfactants

Non-ionic surfactant, anionic surfactant, cationicsurfactant, amphoteric surfactant

Amenity Materials

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

Polyurethane
Materials

Polyether polyol, urethane prepolymer, urethane
systemFunctional Materials

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

Conductive paste for electronic components,
injection molding pellets,
functional inorganic materials

Management Principles

Staying Ahead of the Curve as a Leading Specialty Chemicals Com

Sales by Business Segment (Consolidated)

Head Office, Laboratory (in Kyoto Branch)
Kyoto BranchTokyo Branch
Osaka Branch
Nagoya Branch Kyushu Branch Yokkaichi Branch
Ohgata Branch Shiga BranchElectronic
DeviceMaterials
17.3%

Surfactants
29.5%
FY 2010Affiliates

Functional
Materials
22.3%

Domestic: 8 companies
Overseas: 8 companies
Total: 16 companies

51,245(million yen)

Amenity
Materials
Polyurethane 13.8%
Materials
17.1%

Financial DataManagement Index
Changes in Sales (million yen)
50,00046,031

48,87546,52851,24544,3522,000

30,0001,500

20,0001,000

10,000

500
06

07

08

09

Changes in Total Assets & Net Assets (million yen)
50,00045,543

46,16640,000■Total Assets

41,74944,29110 (FY)■Net Assets

47,741

30,000

792
351
06

07

15,95816,172

14,43815,316

16,49806

07

Environmental and Social Report 201108

09

10 (FY)-28
08

Changes in R&D Expenses (million yen)
3,000
2,500

4.5%

2,000

2,084

4.2%
2,058

1,500

10,000
0

0

1,239

09
■R&D Expenses

10 (FY)（%）
Ratio to Sales

6
5

4.2%

4.2%

3.9%

1,936

1,863

2,010

4

2

500

1
06

07

08

09

10 (FY)

Numerical Targets
Fiscal Year Ended March,
Fiscal Year Ended2010 (Actual Record)
March, 2011 (Targets)

51.2 billion yen

55 billion yen
or moreConsolidated
Operating Margin

5.3%

4% or higher

Per Capita Sales

61 million yen

65 million yen
or moreCost of Sales Ratio

78.9%

80% or lower

SG&A Expense Ratio

15.8%

16% or lower

1.65 months

1.6 months
or shorter

Consolidated Net Sales

Inventory Turnover Rate

3

1,000

0

Our Second Year Performance
In the first year of the medium-term management plan
“Change 100 Plan” starting from April, 2009, our corporategroup commemorated the 100th anniversary of its foundation. In the fiscal year 2010, which is expected as “a new firstyear” toward the 200th anniversary, we further promoted theimprovement of securing a stable profit structure based on
the integrated business division approach, and the movement towards the conversion of corporate culture. As aresult, we succeeded in posting record-high sales and ourcurrent profits as a corporate group.
In the fiscal year 2011, the final year of “Change 100 Plan”,
we intend to achieve the plan's goals, and launch the development of the next three-year management plan based on
the revenue-generating structure we cultivated for two years.
In addition, we pursue the “synergy effect” with Yokkaichi
Chemical Company of which we acquired 100% in April tofurther expand the business of our corporate group.

0▶

20,000

2,439

2,500

40,000003Changes in Current Profits (million yen)Management Policy and Prioritized Business Strategies
On April 1, 2009, in commemoration of the 100th anniversaryof its foundation, Dai-ichi Kogyo Seiyaku launched a
mediumterm management plan−the “Change 100 Plan”−thathas entered its third year this year. During Stage I of thisplan, we envision that, within the first three years, thebusiness structure of our company can be completelychanged to meet our needs as a leading specialty chemicals
company. We define this stage as a solid foundation to allow
us to move onto the next quantity expansion stage, Stage II.
For this vision to be realized, we advocate for the following
six management policies:
1) Securing a stable profit structure;2) Pursuing greater business efficiency;
3) Developing and strengthening our foundation to realize
the “technology makes the company” concept;4) Accelerating the creation of new products;
5) Enhancing compliance management; and
6) Improving managerial skills and human resource
development.
In addition, for the above-stated management policies to be
put in place, we set the following six business strategies:
1) Enhancing the enterprise’s power (marketing clout, costsaving ability, technical strength, and organizing ability)= Heightening our corporate value
2) Promotion of selection and concentration= Determining to withdraw from underperforming
segments based on our exit rule3) Optimal allocation of management resources= Funneling people, goods, and capital4) Seeking more productivity = Seeking more profitability
through the integrated business division approach5) Creation of new business and strengthening ofcooperation with the parties concerned= Focusing on Inorganic materials, dispersion
techniques, electronics materials, etc.
6) Focusing on priority business segments= Promptly reaping the benefits of an existing, ongoing,highly profitable business

Promoting Environmental& Social Activities

Company Name:
Head Office:Social Activities

Company Profile

About Us

Company Overview

Environmental and Safety
Activities (RC Activities)■ Financial Data

On-Site Report■ Company Overview

For a summary of the “Change 100 Plan,” please visit our website (http://www. dks-web.co.jp)(Japanese only)
Environmental and Social Report 201104

About US

Our products will aid you in daily life as useful materials and components of various products.
This section introduces aspects of how they relate to daily life.

1．Surfactant Business

2．Amenity Material Business

Surfactants, which have been playing 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.

Our amenity material business has been supplying not only
various materials used to improve the amenity of 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 the foods, pharmaceuticals and cosmetics, and fishery/livestock industries.

Non-ionic surfactant
Cationic surfactant

Sucrose fatty acid ester
Cellulose type polymer
Vinyl type polymer
Acrylic acid type polymer

Anionic surfactant
Amphoteric surfactant

Silicon wafer detergent
DK BE-CLEAR CW

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, suchas urethane foam, elastomer, paints, adhesives, artificial
leather, civil engineering and building materials, and electricalinsulating materials. Our company’s polyurethane resins canserve as the raw material for many urethane products.

The usage of synthetic resins covers home electronic
appliances, residential materials, and other commodities of life.
Our functional material business has been supplying radcure
resins, polyurethane resin water dispersions, flame retardants,
and plastic additives, for which the intention is to enhance theperformance and added value of synthetic resins and to
facilitate environmental improvement.

Polyether polyol
Urethane system

Urethane prepolymer

DD-1200C

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, hasbeen constantly spurred by public demand. By drawing on our
unique technologies, we have been devoted to developing
various types of electronic products, including conductive
pastes, ceramics materials, ionic liquids, and lithium cells, andproviding support for technological innovation in the field ofelectronic devices.
Conductive paste for electronic components
Functional inorganic materials

Conductive paste for solar cells

Feed additives for cultivation
CELLOGEN

Injection molding pellets

Spillage oil treatment agents

Detergent for cleaning

DK POLYOL

Detergent for linen supply
LINEN FINE
FINE SHOT

Bed, cushion (Soft or semi-rigid
polyurethane foam)
HIFLEXDK FLEX

Collapse prevention material
for tunnel construction

Social Activities

SEACLE

Rigid polyurethane foam
for insulator material

NEO-HITENOLCATIOGENCREEJUS

Injection water-stop material
POLYGROUT

Gas water heater control units(Seal material for electric insulation)

Waterproof roofing material
POLYFLEX

EIMFLEX

Food additives
CELLOGEN

Primer for optical films(Radcure resins)

Coating material for building
material and furniture(Radcure resins)

NEW FRONTIER

Adhesive for Elastic pavement
material
Flame retardants for plastics

RUBBERS TIGHTER

Environmental and Safety
Activities (RC Activities)

GANBAN

Shampoo, rinse, hair gel (Materials
for cosmetics)

PYROGUARD

Optical fiber connector

NEW FRONTIER

Zirconia compound for ferrule

Paint resins for cars
SUPERFLEX

Epidermis material
for car interiorSUPERFLEX

Hybrid vehicle electric components(Resistant polyurethane resins)
EIMFLEX

Tire rubber(Emulsion
polymerization emulsifier)
LAVELIN

Car seatbelts
ELASTRON

Water reducing agent
and fluidizer for concretes
SELFLOW

Heavy-duty coating
for steel sheet piles

On-Site Report

DK ESTERDK FOAMER

3．Polyurethane Business

Promoting Environmental& Social Activities

Our Useful Products in Daily Life

About Us

■ Our Useful Products in Daily LifePERMAGUARD

05

Environmental and Social Report 2011

Environmental and Social Report 201106

About US■ Environmentally Friendly Products & Technological Development■ History of Environmental and Social Activities

Functions & Features

GlobalWarmingPrevention

Clean Energy

Our Product Line & Technology/Application
Development of DSC (dye-sensitized solar cell)

Energy &Resource
SavingHalogen-free type

Energy Efficiency

Effective ResourceUtilization
Extension of Life Span
Environmentally Responsive

1918

Lithium cell

1938

DK BE-CLEAR Series

Water-borne detergents

1949

DK POLYOL 3000 Series

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

1953

Published ““MONOGEN Story”

COLOURSOL CT-171D

Accelerating/leveling agents for polyester

1954

Joined the 1st world surfactant congress and business convention

NEW FRONTIER Series

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

1959

DK SYSTEM NF Series

Non-CFC rigid urethane foam for insulators

1960

ELEXCEL IL Series

Ionic liquids/energy device materials

EIMFLEX Series

Polyurethane resins for electrical insulation

NOIGEN XL Series, NOIGEN TDS Series

Nonionic surfactants/emulsifiers, cleaning agents

SUPERFLEX Series

Polyurethane water dispersions/paints, coating, binders
Thermal-reactive polyurethane water dispersions, binders, adhesives

Listed on the first section of the Tokyo Stock Exchange

Established Yokkaichi Chemical Company, Limited.
Newly constructed Ohgata Plant.
Manufactured completely biodegradable synthetic detergent for home use

1968

Published “CELLOGEN Story”

1969

Established Nippon Levulose Co., Ltd.

1973

Established Gembu Co., Ltd.

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

1978

Established Chin Yee Chemical Industries Co., Ltd.

Polymerizable surfactants/emulsifiers for emulsion polymerization

1982

Established Dai-ichi Clean Chemical Inc.

SEACLE N-800

Spillage oil treatment agents

1983

Introduced chemical fire trucks in our Ohgata Plant

DEOPELLET Series

Foul odor gas absorbents for absorption towers

1984

Published “SUGAR ESTER Story”

Detergents for Silicon Wafer/DK BE-CLEAR CW Series
It is highly expected that solar cells that directly collect and convert sunlight into
energy in a low-carbon society. Silicon solar cells have a relatively high conversion
rate possess higher reliability, and they have been put into practical use precedingother cells. DK BE-CLEAR CW-6830E is a neutral detergents optimized for washingsilicon wafers after slicing during the manufacturing process. It penetrates deeply into
the silicon wafer clearance, and has a high removal performance of abrasive grains
and/or metallic residues. This versatile detergents has a track record of being used forboth monocrystal and polycrystal silicons, and can be applied for both diamond wire
sow and slurry wire sow process. DK BE-CLEAR CW-1850E is an alkaline detergentsfor the finishing process, featuring the performance to aid in good texture formation in
the following process.

High Functional Surfactant Meeting the Environmental Requirements of Ready
Biodegradability and Low Toxicity Toward Aquatic Organisms ̶̶̶̶̶̶̶̶̶̶̶

Renamed Nippon Levulose Co., Ltd. to Dai-ichi Kagaku Kogyo Co., Ltd.

1986

Established Kyoto Elex Co., Ltd.

1987

Established K&D Fine Chemical Corporation

1988

Established Dai-ichi Ceramo Co., Ltd.
Introduced the special incentive leave system

1992

Established Dai-ichi Kenkou Co., Ltd.
Established Tianjin Dai-ichi Fine Chemicals Co., Ltd.

1994

Established “PL (Product Liability) Prevention Management Rules”

1996

Awarded the Ozone Protection Award by the U.S. Environmental Protection Agency

1998

Joined the Japan Responsible Care (RC) Council (JRCC)

2001

Established “Environmental Conservation and Occupational Safety Rules”

Merged Dai-ichi Kagaku Kogyo Co., Ltd. and renamed Shiga Plant

2002

Acquired ISO14001 authentication in all plants

Established Elexcel Corporation Ltd. and Chin Yee Chemical Technologies Co., Ltd. (Wuxi)

2003

Acquired ISO9001 authentication in all plants

Established PT. Dai-ichi Kimia Raya

Published the 1st Environment & Safety Report

2004

Established “Corporate Ethic Charter”

Established DKS (Shanghai) International Trading Co., Ltd.

Introduced the cogeneration system

Environmentally Responsive Nonionic Surfactants/NOIGEN TDS and XL Series
What kind of surfactants do you think are eco-friendly? They should have little impact
on aquatic organisms, be excellent in terms of bio-degradability, and deliver superior
performance even if only a small amount is used. NOIGEN TDS and XL Series are
surfactants made from branched synthetic alcohol, which meets the aforementioned
environmental requirements. They are used not only for home and business, but also
in various fields of industry because of their excellent decreasing function of dynamic
surface tension, wettability, and permeability. Furthermore, they are suitable for use
as alternatives of nonylphenol nonionic surfactants because of their comparable
emulsion and dispersion performance.

Introduced a five-day-week system

1985

1989

About Us

Established “Pollution Prevention Rules”

Solvent-free urethane paints

Contributing in the Manufacturing Process of Silicon Wafers for solar cells ̶̶̶̶̶̶

Environmental and Social Report 2011

Newly constructed Yokkaichi Plant

1966

1972

Established Dai-ichi Kogyo Seiyaku Co., Ltd.

1975

＊VOC：Volatile Organic Compounds

07

Established our company motto and company credo

Conductive paste for solar cells

Anti-solidification agents for slag

History of Dai-ichi Kogyo Seiyaku
Founded in Ohno-Kungyokudo Co., Ltd.

DD-1200C series

Environmental
ELASTRON, ELASTRON BN Series
Protection and VOC* Reduction
COLORCOAT Series
Prevention of
NEW FRONTIER Series
Environmental
Reduction of Environmental Impacts HITENOL KH Series
Pollution
Removal of Contaminants

Environmental and Social Activities
1909

Promoting Environmental& Social Activities

Environmental
requirements

In 1909, an anonymous association named Ohno-Kungyokudo Unwinding Agent Division was established for the purpose of
manufacturing and supplying a cocoon rewinding agent. This was the birth of Dai-ichi Kogyo Seiyaku Co., Ltd.
We hope to engage in environmental and social activities and contribute more to the realization of “sustainable society” throughour business practices as a chemical manufacturer.

Social Activities

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 and Safety
Activities (RC Activities)

Our Products and Technology Development ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

History of Environmental and Social Activities

and solar power generation system in our Ohgata Plant

2005

Established “Declaration of Action for Executives and Employees”

Established Shuang YiLi (Tianjin) New Energy Co., Ltd.

2006

Set up the internal audit department

Constructed a new laboratory in Kisshoin and moved

2007

Introduced the cogeneration system in our Shiga Branch

2008

Achieved no accident record for 3000 days in our Ohgata Branch

2009Disclosed the current medium-term management plan “Change 100 Plan”

2010

Started approach of delivery lectures in elementary schools

2011

Supported Great East Japan Earthquake victims

On-Site Report

Environmentally Friendly Products & Technological Development

Acquired the ownership of Yokkaichi Chemical Company

Environmental and Social Report 201108

Promo�ng Environmental & Social Ac�vi�es■ Internal Control■ Risk Management■Corporate Governance System (in force as of June 24, 2011)
Shareholder Meeting
Auditors Meeting

Board of Directors

Accounting Auditor

President

Compliance Control Committee
Internal Audit Department

Management Conference

Operating Officers
Each Business Division & Group Company

Risk Management Control Committee

We acknowledge that any enterprise must comply with laws
and regulations, fulfill its obligations as a member of society
through proper business activities to ensure stakeholders’interests are served, and make a positive contribution tosociety while gaining the confidence of the 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 in internal control incompliance with Japanese Corporate Law but also in
performing periodic reviews of our internal control systems
and their maintenance and operation, in order to ensure thecredibility of financial reports in accordance with the Financial■PDCA Cycle of Internal Control Processes for Financial Reporting

IT System Control Committee
Financial Reporting Control Committee
Security & Export Management Headquarters

Instruments and Exchange Law.
In addition to having set up appropriate internal control
committees, we have established 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 proceduresfor information security practices to ensure the information
security of our company.
In recognition of the importance of internal control systems,
our Financial Reporting Control Committee and Internal Audit
Department
play a central role in various internal control matters.
p

ACTION

ACTI
AC
TION
ON

PLAN

Reviewing/
Correcting
Reviewing Work through Self-auditing
Correction through Internal Auditʼs Evaluation

Preparation of Checklist
Preparation of Workﬂows
Preparation of Task Statements

RC (Environment, Safety & QA) Promotion Meeting

PLAN*Reports on our corporate governance are available on the Tokyo Stock Exchangeʼs website
http://www.tse.or.jp/disc/44610/140120100621041711.pdf

Our company established a Compliance Control Committee
in 2004. This committee has been engaged in establishing
our own compliance system and performing multiple activities toinstill compliance practices within our company. In
addition, for the purpose of improving compliance-based
management, we have been devoted to further enhancing
compliance practices.

Basic Policy ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
“Corporate Ethics Charter” was set up in July 2004.
This clarified the ethical goal of our company.
“Code of Conduct for Board Members & Employees” wasset up in December 2005.
We specified the code of conduct for board members/
employees to substantiate our “Corporate Ethics Charter”
and to secure the effectiveness of the charter. This “Codeof Conduct for Board Members & Employees” is alsoavailable in card form. This card has been already handed
out to all of our board members and employees.

CHECK

Since 2004, we have been conducting a “Research
SQuestionnaire on Compliance Awareness” once a year,
in order to check to what extent the compliance-based
management philosophy is instilled in our employees.
The compliance database has been built using ourexisting in-house database. It provides knowledge on
compliance information and on the related laws. To
allow anyone to acquire such knowledge, we have alsoestablished an information service database that can offer
various kinds of information through quiz-type games.
We hold periodic in-house seminars and workshops oncompliance to improve our employees’ awareness.

Activities to Instill and Implement Compliance Practices ̶̶
Whistleblower Hotline was set up in 2006.
This hotline is a contact point for any employee who has
information about (alleged) violations of law and/or wants toreport an actual violation of law. Whatever access mode isused (phone, e-mail, postal mail), the Whistleblower
Hotline is directly connected to our Compliance Control
Committee.
In order to improve our compliance practices, complianceassessment has been undertaken on a sectoral basis.
09

Environmental and Social Report 2011

CHECK

(Japanese only)

ComplianceCorporate Ethics Charter

Code of Conduct for Board Members& Employees

For more information on the “Corporate Ethics Charter” and the “Codeof Conduct for Board Members & Employees,” you may visit our
website. (Japanese only)

Documentationof Work

Monitoring/
Evaluation

Evaluation through Self-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 the crosssectional risk management system throughout the company.
We also set up the Risk Management Control Committee
consisting of representatives in each branch and department. 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 FY2010, we extracted and evaluated risks associated with our

About Us

For these reasons, in our medium-term management plan, the“Change 100 Plan,” which was initiated in FY 2009, we declared
and adopted enhancing compliance management as one of ourmanagement policies and also place this as our top priority.
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 appropriatemanner.

Promoting Environmental& Social Activities

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 the 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.

Internal Control

Social Activities

Corporate Governance

Environmental and Safety
Activities (RC Activities)■ Compliancebusiness activities again, and created the “New Influenza
Pandemic Business Continuity Plan (BCP).” In FY 2011, we
have prepared to review our Risk Management Procedures,to develop the BCP concerning earthquake countermeasures, to review the manuals on earthquake countermeasures in each branch, and to develop the standards for therisks that were extracted and evaluated in FY 2010.

Environmental and Social Report 2011

On-Site Report■ Corporate Governance10Social Ac�vi�es■ Relations with Society & Local Communities

Brochures【WEB】http://www.dks-web.jp/english/index.html

Emergency Drills
Each of our branches has been periodically conducting
various disaster drills such as our private fire brigade (on theassumption that fire or a major earthquake has occurred) and acomprehensive disaster-preparedness drill.
Shiga Branch conducted group emergency rescue training
jointly with the Higashi Omi fire department and the medical
association. The training was aimed at focusing primarily on
emergency triage, and the fire department gave explanations
about the training performances, just like a real event.

Cooperation with Local Activities
In the Yokkaichi City Minato district where our Yokkaichi Branch
is located, the local community has always developed people’s
awareness of disaster prevention. The neighborhood communities established the association of independent disasterprevention organizations in the Yokkaichi City Minato district,and conduct disaster prevention training in cooperation withthe government and companies. Collaborating with thisassociation, we also conduct disaster prevention trainings andencourage opinion exchanges. Recently, we have concluded
a memorandum on mutual cooperation in case of disasters
such as earthquakes, tsunami, and wind and flood damage inorder to pursue activities required for disaster mitigationsmoothly and immediately at the time of disaster. We intend tocooperate more closely with the local areas and facilitate
disaster prevention measures.

FY 2010 Exhibition Presentations ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

October 2010

PAN-EXHIBITION FOR WASH AND CLEAN 2010 at Tokyo Big Sight Joint presentation
with BASF Japan Ltd. regarding environmentally responsive non-ionic surfactants

February 2011

Neo functional material 2011 at Tokyo Big Sight
Introduced ion liquid, nano dispersion technology, and nano-zirconia dispersion

March 2011

1st INT'L SMART GRID EXPO at Tokyo Big Sight
Offered exhibit items (ion liquid and battery cells) at the NEDO booth.

PAN-EXHIBITION FOR WASH AND CLEAN 2010
We made a joint presentation with BASF Japan Ltd. in
PAN-EXHIBITION FOR WASH AND CLEAN 2010 held at Tokyo
Big Sight. Our main product non-ionic surfactant helps reduce

Shiga Branch

Ohgata Branch

Neighborhood Cleanup Activities
Each branch regularly engages in cleaning activities in theneighborhood. Shiga Branch participates in cleaning the
nearby Uryu River and in mowing the grass in the local community as part of regional measures, and positively approaches
the community-based branch activities.

any comprehensive impacts on the environment. We promote
to offer products optimized for the quality and application
required to satisfy each customer's needs.

Shiga Branch: Cleanup Activity at Uryu River

PAN-EXHIBITION FOR WASH AND CLEAN 2010

Neo functional material 2011

Donations for Great East Japan Earthquake Victims ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
Our company and our related company Chin Yee Chemical Industries Co., Ltd. (Taipei, Taiwan) donated a total of 25.5 million
yen (breakdown: 24.5 million yen from our company, 1 million yen from Chin Yee Chemical Industries Co., Ltd.) for earthquake
victims through the Japanese Red Cross Society on March 25.
In addition, co-sponsored by the labor union, we collected donations from all executives and employees throughout the entire
company and donated approximately 2.15 million yen through the Japanese Red Cross Society on April 13.
11

Environmental and Social Report 2011

Visiting Lectures for Elementary School Students
With the increased interest in problems including global
environment and warming, and the trend of children moving
away from science, we give visiting lectures as part of ouractivities to bring up and support children, the leaders of tomorrow. We implement lectures by making use of our know-how
and experience obtained through business based on the
responsibility for influences our corporate activities have on thesociety. We conducted lectures at Mukaijima Fujinoki Elementary School (Kyoto City) in November 2010, and at Chubu Nishi
Elementary School (Yokkaichi City) in January 2011.

Conclusion of a Memorandum with the Association

Lecture on Our CSR Practices
Ryukoku University sets up a lecture course on the theory of
CSR practices in companies. In this course, students learn the
CSR’s basic concept and case studies of CSR practices ineach company in the lecture style, and propose measures andideas of regional contribution activities in CSR practices tocompanies. Since FY 2010, we have introduced our CSR
practices to them.

Lecture in Ryukoku University

On-Site Report

During FY 2010, we made presentations at the following exhibitions.

Promoting Environmental& Social Activities

Each of our branches has been devoted to various local activities including neighborhood cleanup activities and social activities such as participation in community events. Each branch has also held a consultative meeting with the autonomous bodyor other companies in order to promote local communications.

Social Activities

Communication with Local Communities ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

For the purpose of providing our stakeholders with accurate and useful
information on our company, we have been publishing brochures such as
our company’s prospectus, and our newsletter titled “Takuto.” Our
webpage also offers not only this information but also other informationsuch as our product information.
In addition, to record our environmental and Social activities, we have also
started publishing a series of our Social Activities Reports as “Environmental and Social Activities Report” (this document) since 2008.

Environmental and Safety
Activities (RC Activities)

Provision of Information ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

About Us

Relations with Society & Local Communities

Mukaijima Fujinoki Elementary School(Kyoto City)

Chubu Nishi Elementary School(Yokkaichi City)

Environmental and Social Report 201112

Social Ac�vi�es■ Relations with Our Customers & Business Partners

InternshipAcceptance of Technical College Students for Internship(Persons)

1009

10 (FY)

Occupational Interview at Joetsu City Ohgata-cho
Junior High School

Planning

Composition& Packaging

Safety evaluation
Environmental compliance
Regulatory compliance
Investigation of raw materials
Safety of the process

Response to
MSDS Indication

Selection of production facilities
Environmental compliance
Regulatory compliance

DesignDevelopment

Manufacturing

QA System ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Internship at Yokkaichi Branch

Our Activities in Industry Groups and Autonomous Communities ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
Our company has joined the following industry groups and has
been engaged in many kinds of activities with them.
- 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)- Japan Chemical Importers' Association (JCIA)- Japan Oil Chemists' Society (JOCS)- Oil & Fat Industry Kaikan- Kinki Chemical Society, Japan- Osaka Industrial Research Association- Kyoto Industrial Association- Advanced Materials Innovation Center (AMIC)

13

Environmental and Social Report 2011

After our interview with the Japan Chemical Industry Association, an
article related to our Responsible Care Activities was published in JRCC
NEWS (No.59) issued by the Japan Chemical Industry Association.

measures, as well as roll out the analyzed results with thecooperation of our Environment, Safety & Quality Affairs
Department and other relevant departments. In the QMS
Committee, we use our PDCA cycles in the management
system to promote improvement and/or advancement
measures, and to control management reviews in each department. In the QA (PL) conference, we review and deliberatecontinuing improvement and/or advancement measures ofquality management and QA activities.

We operate our quality management activities in accordancewith ISO9001. We accept all information related to the quality
from customers through sales representatives, or directly in the
QC section of each branch. Under this system, we unify
management and responses of quality-related information, andimplement the quality management in the product quality
review meeting with our production departments.
We share quality defect and complaint information on the
network, and analyze them to utilize for recurrence prevention
Business Administration
Division
Purchasing
Department(Material procurement)

Distribution
Department(Order receipt& shipping)

Production Control
Division

Business Divisions

Sales
Department

R&D

Production
Department

Functional Chemicals Business Division
Plastic Materials Business Division

Product Quality
Review Meeting

Workplace Experienceat Higashi-Omi City Gokasho
Junior High School(Head of) Branch
QC Section

QA (PL) Conference
QMS Committee

Environment,
Safety &Quality
Affairs Department

Electronic Materials Business Division
Each Branch【WEB】http://www.nikkakyo.org/organizations/jrcc/
news/no59/jrccnews59.pdf

About Us

- MSDS- Specification for Delivery- Other Written Certificates

Selection of containers

Improvement

08

Supplying products
Offering services

Property evaluation

R&D Prototype

07

Offer &
Assessment

Function & Performance Evaluation

persons

Design & Development0

persons6

persons

persons

Validity Check

2

5

7

Items to be Assessed

Needs

6
4

Customer

9

Production Processes& Facilities

8

from multiple viewpoints, so that regulatory requirements,
environmental and security requirements, and production anddistribution can be secured for all of the following processes:
planning, designing, developing, and manufacturing.

Promoting Environmental& Social Activities

Process for Quality Assurance ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
When trying to develop products, suppliers must take into
account a variety of aspects of customers’ needs in an
accurate manner.
Based on ISO 9001 standards, our company has been
performing QA activities by checking and assessing the progressSocial Activities

We believe that accepting students for internships will help
them not only to expand their occupational awareness andimprove their business ability, but also to promote theirunderstanding of workplace relationships and effective
information exchange while communicating with theirschools. As a part of our CSR activities, we will continue tooffer these internship programs.
In addition, we accept requests from junior high school
students on occupational interviews and experiencelearning at the workplace.

continue to improve the effectiveness of our Quality Manual inorder to maximize customer satisfaction.
We believe our QA system can clearly specify not only aneffective process for quality assurance, but also roles andresponsibilities imposed on and authority granted for each QA
department. Based on this QA system, we have been trying to
implement in-depth quality control (QC) and provide accurate
product information while responding to product complaints ina quick and faithful manner. We have always been devoted toproviding products that are safe for use.

Commercialization

We have been accepting technical college students forinternships for a long time; so far, many students haveparticipated in our internship programs. During theirsummer holidays, participants take their own time tocomplete our one- or two-week internship program, during
which they have a practical work experience in any of ourworkplaces (such as our laboratories, quality control department of each branch, etc.) so that they can understand ouractual business operations and services. We have been
devoted to reviewing and improving each of our programs
so that they can really feel “the meaning of work.”

Our quality assurance (QA) system has been established andoperated by putting into place a quality management system
based on ISO 9001. “Keeping up high enough quality to satisfy
customers”: With this slogan in mind, we have been promoting
our QA activities while pursuing the following two productquality policies:(1) Our company will strive to design a product with soundenough quality to meet customers’ expectations and to offer ahighly reliable, safe product before the due date requested by
the customer at a reasonable cost.
(2) Our company will pursue higher quality in our products andEnvironmental and Safety
Activities (RC Activities)

Internship & Learning through Work ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Relations with Our Customers & Business Partners

On-Site Report

Relations with Society & Local Communities

Response to
Production Request■ Relations with Society & Local Communities

Customer

Environmental and Social Report 201114

Social Ac�vi�es■ Relations with Our Customers & Business Partners■ Relations with Our Shareholders & Investors

Zenkoku Ichi-Ko Kai (DKS National Dealers Meeting) ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
In order to offer products that respond to the market’s trends
and needs and to promote the sale of such products, oursales department has been devoted to developing newmarketing practices in cooperation with our dealers.
The general assembly of Zenkoku Ichi-Ko Kai, members ofwhich are composed of our major dealers, has been held
annually, and FY 2010 was the 29th assembly.
In the meeting, we explained our business performancetrend and progress of our medium-term management plan
"Change 100 Plan", as well as introduced our focus
products. At the convivial party, we exchanged information
with our dealers while promoting mutual friendship.
General Assembly of Zenkoku Ichi-Ko Kai

Relations with Our Shareholders & Investors
̶
̶
̶
̶
̶
̶
̶
̶
̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
Shareholder Meeting ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Product BrochuresPres

Dai-ichi Kogyo Seiyaku views the shareholder meeting as animportant opportunity to foster communications between
shareholders and management.
96 shareholders attended the annual shareholder meetingon June 24, 2011. Our President, Dr. Oyanagi, chaired themeeting and presented an annual business report and an
explanation of each agenda item. We always try to provide aclear explanation for our report using narration and slidepresentations, so that all of our shareholders can well understand the points.

During a question and answer session, there were fourquestions and opinions coming from four participants, which
resulted in about 55 minutes of discussions. After the
meeting, we introduced our IR activities on the theme of“’Change 100 Plan’ and Corporate Situation” so that ourshareholders could understand us further. Following that, at
a shareholders get-together with top management, there
were meaningful exchanges of opinions between them in arelaxed and friendly atmosphere.

Promoting Environmental& Social Activities

We have been providing product information as an opportunity for (prospective) customers to better understand our
products. In addition, we always respond to requests andinquiries from our customers quickly and adequately in goodfaith.
For the purpose of providing product information, especiallyat the stage of introducing our existing products and/or
developing new products, we strive to be in close communication with customers and business partners, not only
through our everyday business negotiations, but also withour brochures and technical documents.
We have been providing material safety data sheets (MSDS)

for all our products as chemical substances and answeringinquiries about the latest information on environmental
burden substances or the relevant laws and regulations.
We have completed the procedures to update our MSDS
and label indications, and to prepare the GHS-compliant
MSDS according to the revision of the Industrial Safety and
Health Act and the Pollutant Release and Transfer Resister(PRTR) Law. In addition, according to the revision of theJapanese Industrial Standards (JIS) related to the GHS "Law
Concerning the Examination and Regulation of Manufacture,etc. of Chemical Substances", we are currently updating our
MSDS and label indications sequentially.

Social Activities

Provision of Product Information ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

About Us

Relations with Our Customers & Business Partners

What Does It Mean?

Our policies for handling product complaints focus on thefollowing practices: maintaining credibility responding
quickly and in good faith, thoroughly probing the cause of
the complaint, and taking preventive measures and recurrence prevention measures.
To achieve them in our policies, we make efforts to prevent
recurrence of complaints and to take preventive actions
through immediate handling and sharing of information
through online management. At each of our branches,
monthly product quality review meetings are held and a
product quality inspection patrol is performed on a monthly
basis.

GHS

GHS is an abbreviation for Globally Harmonized System of Classification and Labeling of Chemicals. This system isintended to address the hazard classification of chemicals in accordance with globally standardized rules and to reflect
the information on physical hazards and toxicity from chemicals on pictorial warning labels and material safety data
sheets (MSDS). The aim of GHS is to allow such chemical hazard information to help to prevent possible accidents andprotect human health and the natural environment. In 2003 GHS was announced as a recommendation of United Nation,and the GHS UN Document (referred to as the “Purple Book”) was published. Besides in Japan and EU, in Asian
countries including Taiwan, China, Korea, and Indonesia, the institutionalization of the GHS has been developed since
2010.

15

Environmental and Social Report 2011

Shareholders Get-Together
Shareholder Meeting

̶
̶
̶
̶
̶
̶
̶
̶
̶̶̶̶̶̶̶̶̶̶̶̶̶̶
Internship & Learning through Work ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

We provide up-to-date information,
including corporate information andfinancial information,on our website.
Timely disclosure materials, a reportto shareholders (To Our Shareholders), a summary of financial results,
the notice of the annual shareholder
meeting, news releases, and otherrelated documents are posted on our
website as soon as practicable after
they are publically disclosed.

On-Site Report

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.
Product quality complaint management is our top priority toassure stable product quality. Therefore, we have established and are following our internal Procedures for Handling
Product Complaints. The rules specify procedures on how todeliver correct information about customer complaints to all
related departments, including the QC Section, Environment, Safety & Quality Affairs Department, and Distribution
Department in our respective branches.

Environmental and Safety
Activities (RC Activities)

Response to PL/Complaints ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

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

Environmental and Social Report 201116

Social Ac�vi�es■ Relations with Our Employees

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 putting into practice our belief that the growth of each individual employee will
support the growth of our company will allow our employees to be active, to grow, and to realize their potential in each
workplace, thereby not only achieving their self-actualization but also serving as a driving force for further developing ourcompany and making the company’s presence permanent.

Human Resource Development Policies

Our employee development and education programs focus on three pillars—in-house education, external education, andselfdevelopment support. In addition, we have been dedicated to supporting the voluntary capacity building of our employees
by providing them with in-house lectures and briefing sessions. In FY 2010, we prepared to review human resource development and the evaluation system, and have completed our new education training system. We have also renovated our Kyoto
branch in Shichijo Sembon, Kyoto City, which was the place of our foundation, for it to become the in-house training institute.
In FY 2011, we intend to conduct our training course by position in a new environment.

In-house Education Programs▶

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
Professional Education- Engineer Training & Sales Rep
Training- ISO Quality Internal Auditor
Training Program- English Literature Reading Circle- New Technology Research
Debriefing

In order to foster people who can fully understand our company’s management philosophy and the management policiesbased thereon and can contribute to the realization of such philosophy and policies, we demand that our employees havethe following basic skills and attitudes:. Profound expertise and technique and broad vision . Energetic behavior . Flexibility in thinking . Fruitful creativity

General Business Owner Action Plans ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
Our company has established General Business Owner Action Plans, which are intended to help our employees balance theircareers and child raising. 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)

Self-Development Support Programs

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▶

Advanced Professional Training- Encouraging Employees to Sign
Up for Correspondence Courses- Qualification Acquisition Support
System- English Language Class Started- Chinese Language Class Started- English Literature Reading Circle- Supporting Employees toParticipate in External Seminars

English Language Class

Promoting Environmental& Social Activities

Our Companyʼs Human Resource Philosophy

Human Resource Development & Education ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Social Activities

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.

About Us

Relations with Our Employees

In-house Achievement Award System
Through our employee incentive programs, we have beenrunning not only a performance incentive system such as
patent award and personal achievement award (twice peryear) but also Division Manager’s award and length of service
award.

New Education Training System
We took the approach to create a new education training
system for improving our management ability and to enhance
human resource development. In creating a new system, we
have established new training courses , and reviewed the
Job title

Training course by position

contents and programs for the current established trainings.
Furthermore, we have improved not only training course byposition, but also department training.
Department training

Pre-recruitment
training

Research

Sales

Production

Management

Self-development
support program

CommonTraining on placement and rotation

17

Environmental and Social Report 2011

Follow-up training
New employee

Workshop practiceDomestic study program

Accounting training (advanced)

Book placement

Follow-up
training

Support system for obtaining qualifications

Third-year training

Second class staff

Experimentplanning method

Mental health care education

First class staff

Correspondence education courses/e-learning

(FY)

◯

Support for the TOEIC examination

10

Professional training

Foremantraining

English conversation class for beginner/advanced levels

09

Professional

Logical thinking
and presentation
training

Human rights education (including on sexual/power harassment)

08◯

Staff dispatching to outside conferences or seminars

07

Advanced professional training

Brother and sister system

06

Retiree Reemployment System
In 2006 we introduced a reemployment system for ourcompany’s retirees. By drawing on their many years of skills,
techniques, and experience, they still remain active as “seniorchallenge staff.”

Advanced professional

Accounting training (basics)

0

Reviewer training
New manager training

Skills improvement training

2

Efforts to Prevent Harassment
To prevent harassment (sexual, power, and moral harassment)that diminishes the dignity of an individual as a worker, we haveperiodically provided hierarchical training courses to alert theparticipants to potential harassment and have also establishedcontact points for (alleged) harassment, including Sexual
Harassment Hotline and Compliance Hotline, through which
the privacy of the caller is completely protected.
The purpose of these efforts is to spread the ideas of morality,
awareness that we should be loyal to each other as business
partners, and the importance of communication.

Coaching practice training“Ryozanpaku” lecture

4Manager

GO GO circle presentation2010 Second Half Achievement Award Winners

Sales development workshop

Assistant general manager

Fifth-year management post training

Third-year management post training

Practice and application of sales business8

Corporate manager development training

New sales staff training

General manager
Deputy general manager

6

OJT
Development training for research management post

■Nursing Care Leave
SystemResearch presentation■Childcare Part-time Work
SystemSafety and health education

10■Childcare Leave
SystemEngineer training

Systems During the Last Four Years

Persons

Management
workshop(executive officer)

On-Site Report

Employment System
In response to the declining birthrate and aging society and inorder to promote a healthy work/life balance, we havedeveloped the following personnel systems, each of whichtakes into account employees’ child-rearing and nursing care.
- Childcare Leave System - Childcare Part-time Work System- Nursing Care Leave System
Number of Employees Who Have Used the Personnel

Environmental and Safety
Activities (RC Activities)

Our Personnel System ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

New employee training
Training before entering the company
New training and interview

Training with enhanced contents

Environmental and Social Report 201118

Social Ac�vi�es■ Relations with Our Employees

会

Ohgata Branch

Mental Health Care
The training course by position annually held in June offers amental health-related program. Professionals and advanced
professionals learn with a focus on self care, and managers learn
with a focus on line care (defined below) through role-playing
methods and group workshops, the contents of which are very
useful in practice.
In addition, the results obtained in a job stress survey for our
employees are analyzed on a department-by-department basis.
Analysis results are shared with the head of the department, while
reviewing various aspects of the department in terms of work
volume, workload, current status of support from othersections/departments, characteristics of the department, andadvantages and disadvantages of the department. During theprocess of hearing about their goals and challenges toward
vitalization of the department, the head of the department cancreate a new improvement plan for their working environment. In
this way, we intend to use this activity as an effective tool topromote the line care enhancement.

About Us

Health Checkup
As a result of encouraging and motivating all our employees to get
regular medical checkups, their checkup-participation rate in FY2010 increased to 99.9%. We will make further efforts to achieve
100% participation in FY 2011. We also place importance on
follow-up measures after checkups, especially in regards to any
abnormal findings in the results. Also in FY 2010 we started torecommend reexamination and the second checkupparticipation for employees who received results with abnormal
findings to ensure that they do not fail to attend reexamination andto understand the clinical results. Consequently, the rate ofreexamination and the second checkup-participation was 75% inthis year. We will continue to promote this activity in order toprevent any current symptoms from leading to serious illness
and/or keep it from increasing in severity. To achieve the early
detection of cancer and ensure the promotion of good health forour employees, we, in FY 2010, conducted medical checkups
including a fecal occult blood test, X-ray examination of thestomach, abdominal echocardiography, breast ultra-sound, anddental checkup for our employees in all of our branches.

介

Healthcare & Occupational Safety ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Each of our three branches where our plants are located(Yokkaichi, Ohgata, and Shiga), as a part of their QC circle
activities, holds an annual presentation called the “GO GO
Group Presentation,” where the number of themes to beaddressed in the year is specified.
Each group has picked up a wide variety of subjects, suchas cost reduction, efficiency of business, and environment,
and presented their daily activity performance.

紹

GO GO Group Presentation ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Our workshops can serve as company-wide technical forums
for our researchers to present and discuss their latest findings in
R&D and production technology developments. Our workshop
series are held twice every year; each of which is composed ofthree sections: a special seminar presented by a visiting
lecturer, verbal presentations, and poster presentations. Afterthe workshop is completed, a convivial meeting is held whereparticipants vote for the best presentation award of theworkshop, which is awarded to the winner. In FY 2010, we had
the 72nd and 73rd workshops in the series.

社

Workshop ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Promoting Environmental& Social Activities

Relations with Our Employees

Briefings
Briefing on the Revised Law Concerning the Examination
and Regulation of Manufacture, etc. of Chemical Substances
Export Control System of Safety Assurance
Compliance

Activities to Protect Satoyama ̶̶̶̶̶̶̶̶̶̶̶̶̶

In-house Magazine ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Satoyama is the Japanese term for the border zone or area
between mountain foothills and arable flat land. Our Shiga
Branch has launched a group for the protection of Satoyama
in order to promote maintenance and conservation activities
of mountain forests around this branch, which is blessedwith nature. Every month they are working on weeding andcutting bamboo forests through the employee volunteer
activities. We expect not only to maintain the landscape ofSatoyama, but also to maintain and improve public
functions, such as ground water recharge controlled byforests and biodiversity conservatory. In addition, we are
currently considering effective utilization of forest thinningand bamboo using wood chippers we have alreadypurchased.

We publish the in-house magazine “DKSCOM” every othermonth to introduce various articles including messages fromtop management, regarding management policy, and on our
employees' performance.
Our editorial policy is as follows:(1) Convey the management policy and information to each
employee and share them.
(2) Promote communication between managers andemployees.
(3) Try to create the magazine so as to be easy read andunderstand.

Dental Checkup

Mental Health Care in the Training Course for Professionals

Blood Donation
Kyoto Branch annually conducts a blood donation campaign
upon the request of the Japanese Red Cross Society. With thecooperation of employees, they appeal to each person to
donate 400 milliliters of blood. The number of blood donors was
18 this year. 30 employees in Yokkaichi Branch and 14 employees in Ohgata Branch also cooperated with the campaign.

Kyoto Branch

What Does It Mean?

AED Workshop
Along with increased placement of AEDs and the increased
number of AED workshop participants across the nation, thenumber of people who are engaged in the knowledge of lifesaving activities is increasing. Responding to this movement,
through AED workshops we devote our efforts in cultivating
people who can provide emergency medical treatment. In Kyoto
Branch, total seven workshops have been held up to now, andtotal participants numbers have reached to 130.

Kyoto BranchLine Care/Self CareLine CareLine care or management line care is an activity a management supervisor (or superior) conducts for the purpose of promoting the mental
health of his or her subordinates.
Specifically, it includes counseling subordinates, operational coordination, and improvement of workplace environment.
Self Care
Self care is conducted by a worker himself or herself to understand his or her overall health condition and to prevent poor or worsening health.
Specifically, it includes recognizing poor health, counseling other people, and visiting health care facilities.

19

Environmental and Social Report 2011

Environmental and Social Report 2011

Environmental and Safety
Activities (RC Activities)

Seminars (by a visiting lecturer)
From Basics to Application on Living Radical Polymerization
Technology Management of Value Creating

On-Site Report

In-house Seminars and Briefings ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Social Activities

Shiga Branch

20Environmental and Safety Ac�vi�es (RC Ac�vi�es)■ Basic Philosophy, Basic Policies, and Corporate Principles for Environmental and Safety Practices■ RC Promotion System ■ Management System

President

Board of Directors

RC (Environment, Safety&QA) Promotion ConferenceManagement Conference

Environmental Conservation Conference

EMS*1 Committee

Safety and Health Conference

SHMS*2 Committee

Quality Assurance (PL) Conference

QMS*3 Committee

Operating Officers

Basic Policies

Corporate Principles

Our basic policies for environment and safety practices aredefined as follows:

Our corporate principles for environment and safety
practices are defined as follows:(1) Throughout the whole life of products, from development to disposal, we evaluate and reduce eachproduct’s load on the environment and do our bestfor environment protection.
(2) We sustain no-accident operations to ensure safety
for the employees and the residents of the surrounding areas.
(3) We ensure the safety of raw materials and interim
and final products, and prevent any health disordersof the people concerned, such as employees,
carriers, customers, and general consumers.
(4) We will not only obey relevant laws and regulations,but also actively and constantly examine andimprove the environment, safety, and quality under
the spirit of Responsible Care.

(1) We will evaluate the effects of our business activities on
the environment and human safety and, further, set andperiodically review our environmental targets/goals andsafety targets to ensure continuing improvement ofboth our environmental conservation activities andoccupational safety and health activities.
(2) We will obey any laws, regulations, or agreements
related to both the environment and occupationalsafety and health issues to ensure coexistence with our
local communities.
(3) To reduce environmental impacts, we will be devoted
to performing all of our business activities in such manneras to achieve resource and energy conservation, promotion of waste reduction and recycling, and improvementof occupational safety and health protection.
(4) When developing our products and technologies, wewill be devoted to providing safe products while paying
special attention to environmental and safety mattersand fully understanding extent to which the product will
impact the environment.
(5) We will make our best efforts to allow all of our employees to fully understand the environmental and safety
policies and to improve their environmental and safety
awareness by implementing environmental and safety
training and workplace communication activities. For
this purpose, we will ask our affiliate companies for theircontinued understanding and support.

Management Section

R&D Section

Branches

Safety and HealthCommittee

Safety and HealthCommittee

Safety and HealthCommittee

Responsible Care

Responsible Care (RC) refers to voluntary activities conducted by respective companies
handling chemical substances to secure environment, safety, and health improvements
and to promote dialogue and communication with the public by making the results of suchactivities available to the public throughout the entire process from the development of achemical substance to manufacturing, distribution, use, final consumption, and disposal.

21

Environmental and Social Report 2011

Safety and Health Committee

QA (PL) Committee

Management System
PDCA Cycle

Promotion and management of our company’s RC
activities, which are based on the Environmental
Conservation and Safety and Health Management
Regulations, have been implemented to achieve
continuing improvement of our RC practices byexecuting a PDCA cycle. In addition, as part oftheir RC activities, all plants of our company are
ISO 14001 and ISO 9001 accredited, both ofwhich are international environment and quality
management system standards. By utilizing ISO
standards as a tool, we are committed to not only
enhance environmental performance but also
improve the safety of our products.

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

PLAN

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

ISO 14001 & ISO 9001 Accreditation Status
Our Departments

ISO14001*1

DDO

ISO 14001 Certiﬁcates
ISO9001*2

Date of Accreditation Registration Number Date of Accreditation Registration Number
June 2002

JCQA-E-0391

Ohgata Branch

July 2002

JCQA-E-0397

Shiga Branch

March 2002

JCQA-E-0354

Production Control Div.

January 2000

JCQA-0619

Business Administration Div.
R & D Depts.

Responsible Care

About Us

Establishing Annual Policies & Goals
Establishing Implementation Plans
Deliberated on & decided at Environmental
Conservation/Safety and Health Conferences

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

Yokkaichi Branch

What Does It Mean?

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

Manufacturing Plants
Environmental Conservation
Committee

Promoting Environmental& Social Activities

We have adopted the following business philosophy for all our business activities: “By providing
quality products to ensure customer satisfaction, we will not only strive to be a prosperous company
while moving forward with our employees and serving local communities, but also contribute tocreating an affluent society.” Based on this philosophy, we adopt the following statement as ourbasic philosophy for environmental and safety practices: “Throughout the entire lifecycle of our
products, from development to disposal, we will pay special attention to both human safety andhealth and environmental preservation and also contribute to sustainable development and therealization of an affluent society.”

We have also established, as a suborganization of our conferences, three company-wide committees−the EMS Committee,
SHMS Committee, and QMS Committee−as well as three committees in each of our plants−the Environmental Conservation
Committee, Safety and Health Committee, and QA (PL) Committee. The conferences have been 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 of these plans, and to summarize obtained
results. In addition to establishing Safety and Health Committees
in our manufacturing plants, we have provided them in otherbranches and departments. These committees are chaired by theheads of the related departments and sections to promote
positive safety and health practices.

Social Activities

Basic Philosophy

We have established an RC (Environment, Safety & Quality
Assurance) Promotion Conference with our president as its
chairman, at which our Basic Philosophy, Basic Policies, andCorporate Principles for Environmental and Safety Practices are
determined, and agenda items are deliberated on and decided.
In order for our RC activities to be effectively promoted, we haveestablished three different conferences−the Environmental
Conservation Conference, Safety and Health Conference, and QA(PL) Conference−composed of branch managers and the headsof relevant departments and sections, and chaired by the person
in charge of Environment, Safety & QA. At these conferences, ourcompany-wide targets and implementation plans and their results
are deliberated on.

Environmental and Safety
Activities (RC Activities)

Basic Philosophy, Basic Policies, and Corporate
Principles for Environmental and Safety Practices

RC Promotion System

On-Site Report

We will Contribute to Conservation of the Global Environment
and Creation of Recycling Society through RC Activities.

*1 Our branches (Yokkaichi, Ohgata, and Shiga) completed the third renewal audit during theperiod from January 2011 to June 2011.
*2 After passing the third renewal audit in November 2011, our branches (Yokkaichi and Ohgata)
have completed the second maintenance audit.

Yokkaichi Branch

Ohgata Branch

Shiga Branch

Environmental and Social Report 201122

Environmental and Safety Ac�vi�es (RC Ac�vi�es)■ Targets & Performance in RC Activities ■ Environmental Accounting■ Funding for Security and Disaster Prevention Measures■ Environmental Impact Accompanied with Business Activities(in charge of Environment,
Safety & QA)

Targets & Performance in RC Activities

Reducing GHG emissions

Performance in FY 2010

Evaluation

2.3% improved compared to the previous year○

per unit (*1)

10% reduction of energy consumption per unit in FY 2010 compared to FY 1990

7.7% increased compared to FY 1990△

2% reduction compared to the previous year

9.1% increased compared to the previous year△

Reducing industrial waste

CO2(*2)

Targets in RC Activities

Lowering environmental impact in containers/packaging

Management activity cost

ISO acquisition/completing surveillance audit, greening each plant

48.9

283.0

15.1

154.0

4.2

268.3

0

8.1

0.8

38.1

R&D cost

Environmentally-conscious R&D

̶

460.3

Social activity cost

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

0.2

7.6

0

0

69.2

1219.4

Items

Economic Effects (million yen)

Remarks◎

Profit on sale of valuable resources

4.0

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

△

7.1

Amount of cost savings in electric power and fuels

Recycling rate

Promoting recycling

4.5% worse than the previous year in recycling rate△

Amount of cost savings through energy conservation

Final disposal amount

80% reduction of final disposal amount in FY 2010 compared to FY 1990

88% reduced compared to FY 1990◎

Amount of cost savings through resource saving

13.2

Amount of cost savings through reduction of water use /waste

37.1% reduced compared to the previous year

◎

Total

24.3

1.1% reduced compared to the previous year○

Dust emissions

8.5% reduced compared to the previous year◎

COD emissions

69% reduced compared to the previous year◎

14% reduced compared to the previous year◎

9.9% increased compared to the previous year△

Emission/discharge control of environmental pollutants in the air

Wastewater discharge

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――

Promoting green procurement

4% promoted compared to the previous year in purchased amount○――No occupational accidents (days away from work)

Three cases occurred△――

Eliminating severe accidents associated with production facilities

No accidents occurred○――

Promoting environmental management system

Maintained○

Evaluation *1: Energy consumption per unit: Reference product conversion method, *2: CO2: Derived from energy in production sectors.
Evaluation: ◎: Achieved more than planned, ◯: Achieved as planned, △: Achieved less than planned

Targets in FY 2011

Management Items
Energy consumption
per unit (*1)

About Us

Economic Eﬀects Generated by Environmental Conservation Measures

30.6% increased compared to the previous year

substances

Reducing industrial waste

Upstream/downstream cost

Costs

39.9% reduced compared to FY 1990

of environmental impact

Reducing GHG emissions

Costs within the plant premises

Pollution control
Air pollution control, water pollution control
Global environment conservation
Energy saving
Resource recycling
Resource saving, waste treatment/disposal

Investment

5% reduction of waste amount in annual rate

NOx emissions

Target Items

FY 2010Main Activity

10% reduction of final disposal amount in FY 2010 compared to FY 1990

SOx emissions

Promoting energy saving

Category

Waste

Reducing emissions

Proper management of chemical substances

Environmental Conservation Cost (million yen)

*CO2 generation amount: Derived from energy used in production sectors

1% improvement of energy consumption per unit annuallyManagement Items

Investment and Costs of Environmental Conservation Activities

Total

Energy consumption

Target Items

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

Environmental damage cost

Targets and Performance in FY 2010
Promoting energy saving

In FY 2010, investment for environmental-related systems wasspent mainly for pollution control, promotion of energy conservation, and recycling of wastes. Environmental-related costs
increased in the fields of energy efficiency an waste recycling.

FY 2011 (Target)
1% improvement in annual rate (Simple production method)

CO2(*2)23% reduction compared to FY 2005 on average from FY 2008 to FY 2012

Waste

1% improvement in annual rate (Simple production method)

Recycling rate

Promoting recycling

Final disposal amount

80% reduction in FY 2015 compared to FY 2000, and 1% or less of the final disposal amount to waste amountSocial Activities

SEKIGUCHI Wataru

Environmental Accounting

Scope of the aggregation: Only for Dai-ichi Kogyo Seiyaku Co., Ltd.

Funding for Security and Disaster Prevention Measures
The FY 2010 funding for our security and disaster prevention measures was 45 million yen. This funding was mainly
allocated to explosion, fire, and leak prevention measures; occupational safety and working environment improvement
measures; and mitigation measures for aging facilities.

Environmental Impact Accompanied with Business Activities

Environmental and Safety
Activities (RC Activities)

Executive Officer/Division
Manager of the Production
Control Division

2011, the reduction of carbon dioxide emissions isgreatly expected because of the energy conversion
to natural gas at our Yokkaichi Branch. As
approaches to occupational heath and safety, we
conduct safety patrols, risk assessment activities,
experience-based safety education, and the “5S”
activities to enhance continuous improvement.
Furthermore, as safety and health activities, wehave made efforts to realize the complete
implementation of regular health checks andreexamination, to continuously conduct job-stresssurveys as a mental health measure, and toprepare countermeasures against a new super-flu.
Related to security and accident prevention, wemanage our facilities and operations according to
the compliance of applicable laws and regulations,as well as organize emergency and evacuation
drills in collaboration with local fire departments to
prepare for unforeseeable circumstances. We
intend to improve our performance continuously
through these RC activities throughout the entire
corporation to achieve our corporate social responsibilities (CSR).

Promoting Environmental& Social Activities

As a business entity handling chemical substances,
our company needs to secure the work environment, safety, and health through the entire life cyclefrom design development to disposal of products,
as well as enhancing mutual trust in the society
while developing communication, and continuingsustainable development. We believe that the
Responsible Care (RC) activities are indispensable
to achieve those commitments.
We joined the Japan Responsible Care Committee(at the time) in 1998, and since then have actively
putting the RC activities into practice, as well as
being engaged in environmental conservation,
pollution prevention, occupational heath and safety
practices, security and accident prevention, andensuring the safety of our products. As major
approaches to environmental conservation in FY
2010, we overhauled compressors, installed
inverters, and improved heat exchangers. In
addition, we prevented heat loss to implement
energy efficiency and reduce the emission ofgreenhouse gases, and reduced the waste final
disposal amount through recycling promotion. In FY

Input
Energy18,900 kL oil equivalent

Raw Material

Water Resource

Water ... 2,349,000 m3NOx emissionsof environmental impact

Dust emissions

substances

COD emissions
Wastewater discharge

Proper management of chemical substances

Emission/discharge control of environmental pollutants in the air

Eliminating disasters/accidents
Environmental management system――

Promoting green procurement――

No occupational accidents (days away from work)――

Eliminating severe accidents associated with production facilities――

Promoting environmental management system*1 Energy consumption per unit: Simple production method *2 CO2: Derived from energy in production and management sectors.
*3 Waste generation per unit: Simple production method

23

Environmental and Social Report 2011

CO2 during transport
3,330 tProducts

Output to Environment

Emission/discharge control of environmental pollutants in water

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

Promoting green procurement

Business Activities

Air EnvironmentCO239,400 t
NOX
109 t
SOX
6.7 t
Dust
1.8 t
PRTR Law-designated Substances 33.0 t

Water Environment

Wastewater Discharge 2,330,000 m3
20.1 t
COD
PRTR Law-designated Substances 0.3 t

Soil Environment
No emission

Industrial Waste

12,949 t
Generated AmountExternal Waste Reductions 2,256 t
External Recycling Amount 10,489 tExternal Landfill Disposal Amount
204 t
PRTR Law-designated Substances 94.2 t

Environmental and Social Report 2011

On-Site Report

SOx emissions
Reducing emissions

24

Environmental and Safety Activities (RC Activities)■ Air Pollutants Emission Control■Management■Production
Departments＊1
Departments(1,000t)

70

GHG Emissions
Index＊2

65.6

1.20

60
50

1.00

1.3
49.0 49.6 50.9 50.0 1.2
49.9 50.3 1.3

0.75 0.76

30

1.00

45.4 1.3
41.8

40

0.78 0.76 0.76 0.77

0.69

1.0
1.2 39.6 0.80
36.3

0.64
0.55

20

0.60

0.20
90

01

02

03

04

05

06

07

08

09

Energy Consumption (Crude Oil Equivalent) & Energy
Energy Consumption■Energy
Consumption Index
Consumption
Index＊3(1,000kl)

30

1.30

0.00
10 (FY)＊1The values for the Management Dept. are those of FY 2006 or later.
＊2The value represents a ratio of Emissions Index of the year to that of FY 1990 (=1.00)

1.34 1.37

20

1.29
1.18 1.16

1.17
0.99

1.00

1.10 1.08

28.2 21.8 21.8 21.8 21.1 21.0 21.4 21.8 19.8 17.3 18.9

0.50
0.25

90

01

02

03

04

05

06

07

08

09

0.00
10 (FY)In FY 2010, we reduced one car in Tokyo Branch concerning①, and changed one normal car to a hybrid one concerning②. We have a policy to continuously implement these activities in the future.

Efforts to Reduce Environmental Impacts ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
Production branches have acquired ISO14001 certification,and continuously approached the reduction of environmental impacts and promotion of RC activities.
Furthermore, the Cost Reduction Promotion Department
implements a review of the production process and facilities
in cooperation with each branch.
The department is thoroughly devoted to energy efficiency
and the reduction of any environmental impacts, such as
CO2 and VOC emissions, by introducing a series ofapproaches from the extraction of problems to the implementation of preventive measures.
In FY 2010, we achieved the improvement of steam using
facilities, installation of inverters, and downsizing of nitrogengenerators.

25

Environmental and Social Report 2011

About Us

400

424

350
300

257

250

239

200

0

16
14

125

128

90

01

02

110

100

109

14

11

8

10

11

05

06

07

08

09

10 (FY)

2.0

1.8

09

10(FY)

7

15.0 15.0 14.7
12.7

12

133

04

50

Dust emissions

131

03

100

(t)

156

190

150

(t)

150

205

11.4

10
8
6

51

50

49

52

47

4

3.4

2
0

90

01

02

03

04

05

06

07

08

09

10 (FY)

0

90

01

02

03

04

05

2.5

06

2.0

07

2.7

08

＊3 A ratio of Energy Consumption Index of the year to that of FY 1990 (=1.00)

Eco Activities in Our Sales Promotions ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
We make efforts to use transportation with less CO2 emission
when we go out as a part of eco activities in our sales promotion. Practical measures under consideration are ① toreduce the number of cars used for sales promotion, and touse public transportation as much as possible, and ② tochange to hybrid cars for sales promotion.

(t)

450

NOx emissions
200

0.75

5
0

1.25
1.00

15
10

SOx emissions

1.50

25

0.60
0.40

10
0

1.40

*“Cost-Eco Activities” is our term coined by combining the “Cost” ofcost reduction with “Eco” of environmental ecology and economy(saving), which means activities concerning cost reduction andenvironmental conservation.

In FY 2010, our energy consumption was 18,900 kl, which
is a 9.5% increase compared to that of the previous year.
We tried to achieve energy efficient operations for air
pollutants emissions, which resulted in a 37.1% reduction
for SOx emissions, 1.1% reduction for NOx, and 8.5%
reduction for dust. We will continue to pursue more energy
efficient operations techniques.
NOx emissions: The increasing trend in the emissions(from FY 2004) resulted from the introduction ofcogeneration systems.
SOx emissions: The decreasing trend in the emissions(from FY 2005) resulted from fuel conversion activities.
Dust emissions: The decreasing trend in the emissions(from FY 2005) resulted from fuel conversion activities.

Water Pollutants Discharge Control
In FY 2010, the discharge amount of water pollutants
decreased mainly because facility wash water was
externally recycled, thereby resulting in a decrease in bothdrainage volume of discharge water and COD load. We will

Wastewater Discharge AmountCOD Discharge Amount
(t)

140

3,354

3,000

126.7
2,713

2,500

2,711

2,384 2,365

120
2,330

2,060 1,967 2,053 1,979 2,040

2,000

Shiga Branch Nitrogen Generator

continue to make efforts to reduce the COD discharge
amount by improving our production processes andimproving our effluent treatment facilities.

(1,000㎥)

3,500

100

60

1,000

40

500

20
90

01

02

03

04

05

06

07

08

89.6

80

1,500

0

Promoting Environmental& Social Activities

Changes in CO2 Emissions and Emission Index

to achieve them, we devote our efforts to increasing the energy
efficiency and reducing the CO2 emissions as a part of our“Cost-Eco Activities” to promote energy-saving measures andglobal warming prevention.

Social Activities

We are continuously implementing energy-saving measures,
however, the CO2 emissions in FY 2010 increased by 9.1%
compared to the previous year due to the increased energy
consumption accompanied by an increase in production
amounts. We have achieved a 39.9% reduction to our target of
10% reduction compared to FY 1990.
In regards to energy consumption per unit, we achieved a
2.3% reduction to our target of 1% reduction compared to theprevious year, but it resulted in a 7.7% increase to our target of
10% reduction compared to FY 1990.
We set out our new targets for FY 2011 and later, and in order

Air Pollutants Emission Control

Environmental and Safety
Activities (RC Activities)

Global Warming Prevention (Energy Conservation)

09

10(FY)

0

64.1
52.9

52.9
37.2 39.9

43.9 41.9
38.8
20.1

90

01

02

03

04

05

06

07

08

09

On-Site Report■ Global Warming Prevention (Energy Conservation)■ Water Pollutants Discharge Control

10(FY)

Environmental and Social Report 201126

Environmental and Safety Activities (RC Activities)■ Efforts to Reduce Waste

71.8

60
40

42.0
29.6

20
0

6.6

01

5.7

02

40.1
32.2

31.2

24.4
5.1

03

4.6

04

4.8

05

1.2

06

1.1

07

1.3

08

29.4
1.2

09

33.0

* The amount of emissions/dischargeof PRTR-designated substances
into the air from FY 2006 to FY 2009
was found to be wrong in its calcu0.3
lation method, and we have submit(FY)
ted a notification of change.
10

Internal Disposal

Emissions of PRTR Law-Designated Substances ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
We have a total of 31 notification substances in the first performance report in FY 2010 after the revised PRTR Law. The total
amount of emissions/discharge into the air, water, and soil was
33.02 tons, 0.26 tons, and 0 tons, respectively. We promoted toreduce emissions/discharge, however, the amount of emissions

into the air increased by 3.66 tons, and the amount of wastetransfer increased by 58.25 tons compared to FY 2009. Throughchanges in production techniques and improvement of ourfacilities, we will make continuous efforts to reduce theemissions/discharge of PRTR substances into the environment.

Discharge to
Water

Emissions to
Soil

Waste Transfer
Amount

0.00
0.03
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.01
0.39
0.06

n-Alkylbenzenesulfonic acid and its salts(alkyl C=10-14)

0.00

0.03

0.00

0.05

31
53
56
60
68
80
128
150
255
272
292
300
339
398

Antimony and its compounds

0.00
0.03
0.66
0.00
7.40
0.02
0.61
0.00
0.00
0.00
0.00
24.24
0.02
0.00

0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.14
0.34
0.00
0.03
0.00
0.23
0.00
0.39
0.49
2.20
0.45
87.00
0.00
0.34

407

Poly(oxyethylene) alkylphenyl ether(alkyl C=12-15)

0.00

0.21

0.00

1.48

408
410
415
298
448

Poly(oxyethylene) octylphenyl ether

0.00
0.00
0.00
0.00
0.00
0.01
33.02

0.00
0.00
0.00
0.00
0.00
0.00
0.26

0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.13
0.28
0.04
0.12
0.01
0.01
94.19

Acrylamide

30

Acrylic acid and its water soluble salts
2-aminoethanol

Ethylbenzene
Ethylene oxide
Ethylenediaminetetraacetate
1,2-epoxy propane (or “Propylene oxide”)
XyleneChloromethane (or “Methyl chloride”)
1,4-dioxane
Decabromodiphenyl ether
Copper salts (water-soluble, except complex salts)
Tributylamine
TolueneN-Vinyl-2-pyrrolidinone
Benzyl chloride

Poly(oxyethylene) nonylphenyl ether
Methacrylic acid
Tolylene diisocyanate
Methylenebis (4, 1-Phenylene) = Diisocyanate
Others (substances of which emissions/discharge or transferamount was less than 0.01t)
Total

PCB (Polychlorinated Biphenyl) ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
In accordance with the Law Concerning Special Measuresagainst PCB Waste, we are taking steps to ensure theproper storage and control of the PCB waste target items. In
FY 2010, our Ohgata and Shiga Branches disposed of mostof the high concentration PCB waste through the Japan
27

Environmental and Social Report 2011

Environmental Safety Corporation (JESCO).
We will promote the proper storage and control of the rest of
the high concentration PCB waste, as well as low concentration PCB waste.

(not included
in total amount)

２,２５６ｔ１７.４％
External Recycling Amount

１２,９４９ｔ
１００％

１０,４８９ｔ
８１.０％Internal Landfill
Disposal AmountExternal Final
Disposal Amount

２０４ｔ
１.６％

０ｔ
０％

Changes in Waste Amount & External Recycling Rate
100

25,00088.2

22,50020,000Waste Amount (t )Emissions to
Air

Name of Substance2
4
20

External Waste Reductions

Generated Waste AmountPerformance for FY 2009: PRTR Law Notification Data (among all notification substances, given below are those whose emissions/discharge or transfer(t/year)amount was 0.01t or more.)
Ordinance
Serial No.

External Disposal

Internal Waste Reductions

85.5

18,379

81.0

78.3

60

53.3

12,500

50.1

9,802

7,500

6,106

5,000

11,015

9,989

9,760

9,664

8,609

5,328

12,94912,80012,242

10,0008,409

10,757

9,159

8,579

50

10,489

9,912
8,479

1,696
362

90

1,081

01

804

02

40
30

6,718

6,128

20

2.0

2,500

80
70

62.3

15,000

0

90

84.0

83.2

87.0

17,500

811

03

825

04

About Us

■Water Area

63.5

Promoting Environmental& Social Activities

■Air

80

establish a further reduction target from FY 2011 and topromote it fully. On the other hand, the amount of waste
generation increased by 30.6% compared to the previous
year. Therefore we will continuously strive to decrease theamount of waste generation, as well as to achieve the targetof the final disposal rate of 1% to the amount of waste
generation by reviewing our waste disposal techniques.

Social Activities

Emissions /Discharges (t)PRTR-Designated Substances Emission into Environment

We set a target to reduce FY 2010’s final waste disposal
amount by 80% compared to that of FY 1990, and worked hard
towards this goal. In FY 2010, the final year of the goal, we
effectively promoted waste segregation and recycling bychanging disposal techniques, and the final disposal amountof FY 2010 became 204 tons. As a result, the FY 2010’s final
waste disposal amount was reduced by 88% compared to FY
1990, which enabled us to achieve our target. We intend to

789

05

908

06

10
893

07

■Generated Waste ■External Recycling ■External Final Disposal
AmountAmountAmount

498

08

498

09

204

10 (FY)

Environmental and Safety
Activities (RC Activities)

Efforts to Reduce Emissions of Chemical Substances (PRTR)

Efforts to Reduce Waste0

External Recycling
Rate

Environment-related Complaints ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

On-Site Report

We have been devoted to reducing the emissions of any PRTR
Law-designated substances through improvement of our production
processes, use of substitute substances, and reduction of their use.

External Recycling Rate (% )■ Efforts to Reduce Emissions of Chemical Substances (PRTR)

During FY 2010, we received two environment-related complaints-one for odor, and the other for noise problems.
We took emergency measures and recurrence-prevention measures in each case.

Environmental and Social Report 201128

Environmental and Safety Activities (RC Activities)■ Efforts in Occupational Safety

Environmental Impacts to be Reported as a Specified Shipper

Energy Consumption Per Unit

Industrial Accident Frequency Rate (AFR) & Industrial Accident Severity Rate (ASR) (From January 1 to December 31, 2010) ̶̶Comparison to the Previous Year33,180,000 ton-kilometers+ 6.8％

49,000 GJ+ 5.5％

383 liters/10 thousands ton-kilometers

−1.0％

4.0

3,334t − CO2+ 5.7％

3.5 3.20

Energy Consumption
CO2 Emissions* The graph results for 1997 and earlier years are based only on data for our plants, whereas the results for 1998 and later years are based on data for our entire company.

Industrial Accident Frequency Rate

2.5
2.0
1.5

We provide Yellow Cards for all relevant products. We
instruct the driver of a tanker truck always to keep the Yellow
Card(s) with him/her 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 a chemical substance by indicating the Emergency Response Guidebook (ERG) number and UN number
on the Container Yellow Card label.

1.0
0.5
0.0

year while implementing these activities by executing PDCA
cycle.
Further, we have been devoted to:1) Increasing employees’ awareness about the “stop idling”
campaign and facilitating their fleet maintenance to reduce
environmental impacts;
2) Promoting environment-friendly modes of transportation
by rail and by sea;
3) Maintaining our emergency network system duringtransportation; and4) Instilling a strong commitment to compliance in our
employees.

Calculation of Energy Consumption with the Improved Ton-Kilo Method

29

Environmental and Social Report 2011

[Ton-Kilometers]

Dai-ichi Kogyo Seiyaku
Chemical Industry

Severity Rate

0.25

2.24

2.25

2.08

2.23

0.10

1.14

0.45

0.15

0.79
0.00

0.71

0.72

0.75

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 年

0.16

About Us

0.14

0.09
0.06

0.05
0.00

0.04

0.02
0.02

0.01
0.00
0.00

0.05
0.00

0.02
0.00

0.04

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 年

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

“5S” Activities ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Improved Ton-Kilo Method
×
Fuel Consumption Rate
[1 liter/ton-kilometer]

1
1000

We put into practice the “5S” (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke) activities in order to ensure security, ensure product quality (prevention of complaints
or troubles), and improve our business operations. Although the records of theapproach to activities differ among the branches and the attitudes toward activities still vary, every branch provides a steady improvement in the contents ofactivities. Every month our employees conduct evaluations of both themselves
and the 5S committee, and construct the framework to continue and maintainthe activities. The head of each production branch and each department/section
conduct periodic assessments of their group’s progress. They represent specified activity contents and items that need to be improved, and make recognitionof the results. In addition, joint committee meetings are regularly held to provide
opportunities for information exchange and lateral integration. Now the 5S activities are conducted in production branches and laboratories, but we plan toexpand them on the basis of an entire company basis, including all headquarters and branch offices.

Shiga BranchExperience-based Safety Education ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

The Revised Law Concerning the Rational Use of Energy went into effect in April 2006, which led to the introduction ofenergy-saving measures in transport sectors.
Under the provisions of the Law, specified shippers (who contract to ship their freight in an amount equal to or exceeding
30 million ton-kilometers per year) must establish energy-saving plans and report their energy consumption. Energy
consumption is calculated using a fuel consumption method, a fuel cost method, or an improved ton-kilo method. In the
improved ton-kilo method, the following equation is used for calculation of energy consumption:[GJ]

Industrial Accident Severity Rate

0.20
2.30

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

Safety in Transport & Environmental Impact Reduction ̶̶̶

Energy Consumption Transportation Ton-kilometer ×

3.47

3.0

“Yellow Card” & “Container Yellow Card” Systems ̶̶̶̶What Does It Mean?

Dai-ichi Kogyo Seiyaku
Chemical Industry

Frequency Rate

Improved Ton-Kilometer method

Our company, aiming to practice environmentally friendly
transportation and eliminate transportation accidents including damage to or deformation of transport containers duringtransportation, periodically holds conferences with our
logistics partners. We use the following documents as usefultools to provide not only all available information but also
proper education and instruction for our logistics partners:“Safe Driving and Maintenance of Traffic Order,” “Revised
Laws and Regulations,” “Safety and Environmental
Standards for Delivery Services,” “For Professional Drivers,”and “Transport Specifications.” In addition, we have environmental impact activities in common with our logistics
partners and are continuing to pursue better results year byanalyzing the cause of the accident, we try to laterally disseminate the findings and solutions throughout all sectors anddepartments to prevent a similar case from occurring again. In
addition, we have been placing significant emphasis on
periodic implementation of preventive measures and safety
patrols by the managers concerned to find unsafe working
conditions and operations. Moreover, in FY 2010 we started
safety education using experience-based education devices.
We continue to utilize the above approaches, as well asactivities related to risk prediction, pointing and calling, risk
assessment, and the “5S”, and aim for the realization of zeroaccidents.

Changes in our AFR and ASR since 1995 are given in the tables below, relative to those in the chemical industry.

F Y 2010

I t em s

Freight Volume

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 occupational accidents. Further, in order to ensure asafe and comfortable working environment, we have beenpromoting the “5S” activities (Seiri, Seiton, Seiso, Seiketsu, andShitsuke in Japanese) (i.e., housekeeping, workplace organization, cleanup, maintaining cleanliness, and discipline inEnglish).
Regrettably, in FY 2010, we had three “days away from work”
case and, therefore, failed to continue our company No
Accident Record streak. For the case study of accidents, after

Promoting Environmental& Social Activities

consumption per unit was improved by 1.0% because of modal
shift promotion. Environmental impact reduction in logistic
sectors plays an important role not only in the aspect of global
warming countermeasures, but also in effects on air pollution
and/or waste generation.
In the current fiscal year, we are moving forward with ouractivities by promoting further modal shifting, and by making
efforts to achieve a 1% improvement in the energy consumption
per unit compared to the previous fiscal year, which is specified
in the guideline of the Energy Saving Act, through increase ofloading ratio for reserved services, and reduction of transporting of returned products.

Environmental and Safety
Activities (RC Activities)

In order to alleviate security and environmental risks in transportation as much as possible, our company has been implementing assessment of our transportation systems in cooperation
with transport carriers to ensure preventive measures against
the occurrence of accidents. For that purpose, we have been
trying to improve our emergency response and liaison system.
In the context of environmental aspects, we have been fulfilling
our role as a specified shipper under the Law Concerning the
Rational Use of Energy to tackle the challenges of reducing
impacts on the environment. We outsource our transportbusiness to distribution subcontracting companies. In FY 2010
the emission of greenhouse gases increased along with
the increased transportation amount. However, the energy

Efforts in Occupational Safety

Social Activities

Efforts in Transport Safety

× Unit Calorific Value[GJl/ Kiloliter]

On-Site Report■ Efforts in Transport Safety

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. We adopted thismethod and started in the fiscal year 2010. First we introduced pseudo experience devices to generate solvent and dust explosions, and conducted safety
education in each branch. In addition to a lateral integration of accident caseexamples, accident prevention procedures, risk assessment activities, and risk
prediction training, we promote safety education using devices for an
experience-based safety education.
Environmental and Social Report 201130

On-Site Report■ Shiga Branch

Area of the Site : 17,647m2
Main Products :Polyurethane polyol (HIFLEX), polyurethane copolymer(POLYGROUT & POLYFLEX), UV-curable monomers/oligomers(NEW FRONTIER), oiling/finishing agent (PANSOFTER), anionicsurfactant (MONOGEN), cationic surfactant (CATIOGEN)

Item/ Year

Panoramic View of Yokkaichi Branch

FY 2009

FY 2010

Actual Performance Actual PerformanceSOx emissions (t)

3.1

2.6

NOx emissions (t)

3.5

4.2

Dust emissions (t)

0.1

0.1

514.8

566.7

COD emissions (t)

3.9

2.5

CO2 emissions (1,000t)

5.4

5.9

Waste generation (t)

6,075

8,897

9.4

8.1

Wastewater discharged (1,000m3)

Amount for final disposal (t)Address : 230 Saigata, Ohgata-ku, Joetsu City, Niigata Pref.
Area of the Site : 87,116m2
Main Products :CMC (CELLOGEN, DKS FINE GUM), water-dispersed
polyurethane (SUPERFLEX, ELASTRON), polyvinyl pyrrolidone(PITZCOL), industrial detergents (GEMBU)

31

Environmental and Social Report 2011

Item/ Year

Main Products :Sucrose fatty acid esters (DK ESTER), food additives (MONOACE,DK FOAMER, DK CREAMER, and SUNNY SAFE), metal surface
treatment agents (PSA), acrylic polymer (SHALLOL), surfactants(NOIGEN, HITENOL, SORGEN, and NEOCOL), water-soluble
polyester polyol (PAOGEN), solvent-substitute waterborne/nonwaterborne washing agents (DK BE-CLEAR)

About Us
FY 2009

FY 2010

Actual Performance

Actual PerformanceSOx emissions (t)

0.8

0.9

NOx emissions (t)

9.1

12.4

Dust emissions (t)

0.5

0.3

Wastewater discharged (1,000m3)

1,783

1,324

COD emissions (t)

10.4

6.5

CO2 emissions (1,000t)

11.2

12.6

Waste generation (t)

2,164

2,864

Amount for final disposal (t)

10.4

12.1

Chin Yee Chemical Industries Co., Ltd.

Status of Our RC Activitie
We have acquired ISO9002 certification in 1995, ISO9001 in
2001, and ISO14001 in 2006. Based on the ISO management
system, we engage in promoting the RC activities. With the aim ofachieving more efficient control of impact on the environment,
they are devoted to improving production processes to reduce,reuse, and recycle wastes, as well as to creating various operating standards to promote pollution prevention measures andemergency countermeasures.

ISO Accreditation Status of Our Overseas Affiliates
Panoramic View of Ohgata Branch

FY 2009

Overseas Affliates

Establishment Year

Site Location

Chin Yee Chemical Industries Co., Ltd.

1978

Taipei, Taiwan

2001

2006

Tianjin Dai-ichi Fine Chemicals Co., Ltd.

1992

Tianjin, China

2001

2006

PT. Dai-ichi Kimia Raya

1996

Java, Indonesia

2003

−

First Year of ISO 9001 Accreditation First Year of ISO 14001 Accreditation

FY 2010

Actual Performance Actual Performance
6.7

3.2

NOx emissions (t)

97.9

92.6

Dust emissions (t)

1.5

1.4

Wastewater discharged (1,000m3)

413.2

439.4

COD emissions (t)

49.8

11.1

CO2 emissions (1,000t)

19.5

20.9

1,595.1

1,135.6

469.0

175.2

Waste generation (t)Area of the Site : 105,581m2

Chin Yee Chemical Industries Co., Ltd.
Our overseas affiliates have also acquired
ISO certification and are devoted to the
conduct of their RC activities. Established in
Taipei City in 1978, Chin Yee Chemical
Industries Co., Ltd. is one of our overseas
companies and mainly specializes inmanufacturing flame retardants, lubricants
for plastics, and textile auxiliaries.

SOx emissions (t)Amount for final disposal (t)Item/ Year

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

Panoramic View of Shiga Branch

Promotion of RC Activities by Overseas Affiliates

TSUJI Hironobu,

Branch Manager ofOhgata Branch

Branch Manager of
Shiga Branch

TOPICS

Ohgata Branch (Production site)
Endowed with lush green natural surroundings, our Ohgata
Branch is situated in Niigata Prefecture facing 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, waterdispersed polyurethanes, various surfactants, and inorganic
materials. We have been engaged in all of our activities with thefollowing philosophy in mind: “Throughout the entire lifecycle ofour products from development to disposal, we will pay special
attention to both human safety and health and environmental
preservation and also contribute to sustainable development andthe realization of an affluent society.” In recent years, we havemade efforts to promote greater use of energy conversion andimplement waste reduction practices. Ohgata Branch willcontinue to actively participate in environmental conservationenergy programs and energy-saving activities, while looking
forward to the realization of a more livable planet and a spirituallyaffluent society.

KAWAMOTO Wataru,

Promoting Environmental& Social Activities

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

TANAKA Hiroshi,

Branch Manager of
Yokkaichi Branch

Nestled beneath Kinugasa Mountain, 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 ourbusiness activities and implementing environmental conservation
practices through continual improvement of our business activities. Our
focus is placed on fostering communication with local communities sothat our plant can coexist with them in peace.
So far, we have put our efforts to promote environmental conservation
practices, such as the introduction of a cogeneration system, air pollution
reduction through fuel conversion, and renovation of our effluent
treatment facilities.
Since last year, we have promoted to maintain company owner forests aspart 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 final
disposal. We will be devoted to further improving the natural and social
environment while emphasizing compliance with stringent environmental
requirements.

Environmental and Safety
Activities (RC Activities)

Located in the coastal area of the northwestern Mie Prefecture, ourYokkaichi Branch is blessed with natural surroundings that include
the lush, green Suzuka Mountain Range, and the water-filled Kiso
Three Rivers and Ise Bay. In order to protect this nature-rich region
and its richly endowed environment, we will strive to integrate
environmental consciousness into all our business activities andcontinue to implement environmental conservation practices.
We switched the fuel for steam boilers from heavy oil to natural gas
in May 2011. This is expected to reduce CO2 emissions by approximately 16% compared to FY 2010.
We have concluded a memorandum on mutual cooperation in caseof disasters such as earthquakes, tsunami, and wind and flood
damages with the local government in order to enhance the relationship with the local communities.
We have adopted our annual slogan “Challenges to Gain
Confidence” at our Yokkaichi Branch in 2011. Concerning environmental conservation, we will strive to continue improvement activities
aiming for this branch to increasingly gain the trust of local communities and customers.

Shiga Branch (Production site)

Social Activities

Yokkaichi Branch (Production site)

We would like to express our heartfelt sympathy to the people who have suffered greatly due to damage through the Great East
Japan Earthquake. We are praying for the rapid recovery of the affected areas.
We tried to make our report clearer and easily readable as a tool for transmitting information about our environmental and social
responsibility activities.
As a B-to-B company, we have added new pages on “Our Useful Products in Daily Life” and “History of Environmental and Social
Activities” in this report, especially for general readers to understand our business more clearly.
Japanese companies are, now more than ever before, confronted with serious issues such as maintaining a sustainable society,risk management, and energy efficiency due to the Great Earthquake damages and the ongoing crises at the nuclear power
plant, and it has become more important to accomplish the responsibilities imposed on us. Now is the time to bring in mind again
our CSR spirit that has been preserved since our foundation, we hope to offer a fulfilling report to achieve sustainable development, and to promote communication within society.
We welcome any opinions and requests you may have.

Environmental and Social Report 2011

On-Site Report■ Ohgata Branch

Editor’s Postscript■ Yokkaichi Branch32