Responsible Care

Technologies to pass our global environment down to future generations.

Environmental and Social Report

2010

Our
Company
Motto

Message from the President

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

Quality First
Cost Reduction
R&D Efforts

Staying Ahead of Time as a Leading Specialty Chemicals Company
We will contribute to realizing a “sustainable society” through our business practices.
aggressively promoting RC activities. While engagedin activities to ensure best environmental, safety, andhealth practices regarding chemical substances, we havecontinued to offer customers environmentally friendly productlines and the benefits of its technologies. We always hope tocontribute more to realizing a “sustainable society” throughour business practices.

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 Business and Product Lines/Environmentally Friendly
Products & Technological Development
Promoting Environmental & Social Activities
7 ... Corporate Governance/Compliance/
Internal Control/Risk Management
Social Activities
9 ... Relations with Society & Local Communities
12... Relations with Our Customers & Business Partners
14... Relations with Our Shareholders & Investors
15... Relations with Our Employees
Environmental and Safety Activities (RC Activities)
19... Basic Philosophy, Basic Policies, and Corporate
Principles for Environmental and Safety Practices/RC
Promotion System/Management System
21... Targets & Performance in RC Activities/Environmental
Accounting/Funding for Security and Disaster
Prevention Measures
23... Global Warming Prevention (Energy Conservation)
Air Pollutants Emission Control/Water Pollutants
Discharge Control
25... Efforts to Reduce Emissions of Chemical
Substances (PRTR)/Efforts to Reduce Waste
27... Efforts in Occupational Safety/Efforts in Transport Safety
On-Site Report
29... Yokkaichi Branch/Ohgata Branch/Shiga Branch

1

Environmental and Social Report 2010

In fiscal year 2009, when our medium-term management
plan “Change 100 Plan” was launched, we were devoted toa series of activities, including ensuring profitability throughthe integrated business division approach, promoting
compliance, and promoting internal chemical substancecontrol systems such as preparing REACH registration andresponding to the PRTR law revision.
Although the economy appears to be in recovery, our nation
still has not found a solution to break the vicious circleof deflation and must address many concerns, such as
excessive spending on equipment and employment, soaring
prices of natural resources including oil and naphtha, andunstable currency movement.

Environmental and Social Report 2010: Editorial Policy
Since the first publication of our “Environment & Safety
Report” in 2003, we have issued an annual report on our RC(Responsible Care) activities; this is the eighth publication in
the series. In 2008, with the aim of improving the informationon our social involvement, we renamed the report to“Environmental and Social Report,” the content of which
covers not only our environmental, safety, and health efforts,
but also our social activities. We always try to prepare forand provide lucid and comprehensive reports so that allof 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 2009 (from April 1, 2009 to March 31, 2010).
The data on Industrial Accident Severity Rate (ASR) andIndustrial Accident Frequency Rate (AFR) were obtained
from January to December 2009.
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

Since its foundation, Dai-ichi Kogyo Seiyaku has consistently
upheld its mission statement—“contributing to the nationand the society through industry”—in which the spirit of thefounder remains alive. We believe that the realization of thismission statement will be not only the focus of corporatesocial responsibility (CSR) efforts across our corporategroup, but also the basis of our management principles.
Our corporate group, as a chemical manufacturer, hasbeen placing emphasis on five core business segments:
surfactants, amenity materials, polyurethane materials,
functional materials, and electronic device materials. To date,
we have continued to offer specialty chemicals meeting ourcustomers’ needs using our own technologies and productdevelopment capability.
Our company credo—“Quality First, Cost Reduction, andR&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 inception of thiscompany. With the credo in mind, we make every effort to be acompany with a strong presence, while putting the “technology
makes the company” concept into practice.
Now that climate change and risks arising from chemical
substances are both recognized as global environmental
issues, we see that current trends around the world call for
efforts to realize a sustainable society.
Since joining the Japan Responsible Care (RC) Council(J R C C) in 19 9 8, Dai - ichi Kogyo S eiyaku has been

In the year 2010, the second year of our “Change 100 Plan,”
we are 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 will move ahead
toward the next stage of becoming a revenue-generatingcompany.
We declare that each of our employees will not only observe alllegal regulations and international rules, but also obey the spirit
thereof and behave in a socially sensible manner. We, as acorporate member of society, will practice fair and transparent
corporate activities by enhancing our corporate governance,
implementing compliance programs, and developing ecofriendly, safe and health-friendly products. The hope of
our company is to promote open communication with all
stakeholders and to continuously work to become a company
that has not only the confidence of society, but also a strong
presence in specialty chemicals industry.
We encourage you to look over this summary of our activities
in 2009 titled “Environmental and Social Report 2010.” We
hope this report will help you to understand the perspectiveof 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, 2010

Environmental and Social Report 20102

Company Overview

About US

Financial Data
Medium-term Management Plan: “Change 100 Plan”

Medium-term Management Plan: “Change 100 Plan” (April 2009-March 2012)

Company Profile

Business Segments & Main ProductsCompany Name:
Head Office: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:
6.6 billion and 50 million yen*
Number of Employees: 910 persons (consolidated)*
582 persons (non-consolidated)*(*as of the end of March 2010)

Domestic Branches

Business Segment

Management Principles & Policies in the “Change 100 Plan”

Main Products(1) Management Principles

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, ionic conductive
polymer, functional inorganic materials

43(3) Our First Year PerformanceElectronic
DeviceMaterials
13.4%
Functional
Materials
21.3%

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

Surfactants
32.4%

FY 200944,352(million yen)

Polyurethane
Materials
16.2%

Amenity
Materials
16.7%

Financial DataManagement Index▼ Changes in Sales (million yen)
50,000▼ Changes in Current Profits (million yen)

48,87546,52846,031
41,862

1,239

1,200
44,35240,000

1,000

891

800
30,000600

20,000

400

792

351

200
10,000
0

0
05

06

07

08

09 (FY)

50,00040,00045,543

46,166

41,77041,749

-28
05

06

07

08

■Net Assets■R&D Expenses

3,000

44,2912,500
2,000

30,000

4.8%
2,002

4.5%
2,084

15,75815,95816,172

14,43815,316

0

05

06

07

08

09 (FY)

（%）

6

2,058

4.2%
1,936

4.2%
1,863

1,000

2

500

1

0

05

06

07

08

09 (FY)

0“Each of Us Holds the Key to Success”

reported. Here, we take a brief look at the results—as a resultof the slowdown in sales amid the economic recession, oursales decreased relative to the previous year. Meanwhile, ouroperating profits improved dramatically due to several factors,
including correction of price imbalance, cost containment
through the development of across-the-board activity called“Cost-Eco Activity,”*1 and containment of construction costs.
Although the sales figures dropped down compared to those of
the previous year, since October 2009, our sales have continued
to recover slowly but steadily. For the operating margin, cost of
sales ratio, and inventory turnover rate, we succeeded in boosting
the results to the target level defined in our “Change 100 Plan.”
Our business performance in the fiscal year (FY) ended March2010 improved dramatically, which surely allows us to movetoward the achievement of the goal of the “Change 100 Plan.”
Our Cost-Eco Activity enabled the first of our management
policies, securing a stable profit structure, to move forward tosome extent. The thorough instillation of a profitability mindset
has been promoting not only changes in the consciousness of
our employees, but also changes in the corporate culture.
The fiscal year ended March 2011 is very important for us
to assess whether the corporate culture of Dai-ichi Kogyo
Seiyaku can be completely converted or not. During Stage I,
we will make an effort to speed up the progress of the “Change
100 Plan” so that the plan can be completed within two
years of its initiation, and will continue to be devoted to moresales extension, creation of high-value-added products, costcurtailment, and containment of inventories.

Numerical Targets

Consolidated Net Sales
Consolidated Operating Margin

Fiscal Year Ended
March, 2012 (Targets)

44.3 billion yen

55 billion yen or more

3.6%

4% or higher

54 million yen

65 million yen or more

Cost of Sales Ratio

79.3%

80% or lower

SG&A Expense Ratio

17.1%

16% or lower

1.61 months

1.6 months or shorter

Per Capita Sales

Inventory Turnover Rate

Our financial results for the full year ended March 2010, whichis the first year of the “Change 100 Plan,” have already been

Fiscal Year Ended March,2010 (Actual Record)*1 This represents any activity that can achieve cost reduction and environmental
conservation goals and is coined from the word “cost” for “cost reduction” and the word
“eco,” which has a double meaning of both “ecology” and “economy.”▶

10,000

Ratio to Sales

5
4.2%

1,500
20,00009 (FY)▼ Changes in R&D Expenses (million yen)

▼ Changes in Total Assets & Net Assets (million yen)
■Total Assets-200

Our mission statement—“contributing to the nation and the society
through industry” and company credo “Quality First, Cost Reduction,
and R&D Efforts” are both rooted in the spirit of our founder. We, Dai-ichi
Kogyo Seiyaku, think it’s time to go back to the beginning of our history
as we move beyond the 100th anniversary of the company’s foundation.
We are now ready for change—ready to take a giant leap.

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” —that hasentered its second year this year. During Stage I of this plan, we
envision that, within the first three years, the business structureof our company can be completely changed to meet our needs
as a leading specialty chemicals company. We define thisstage 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

Sales by Business Segment (Consolidated)

Affiliates

Staying Ahead of the Curve as a Leading Specialty Chemicals Company(2) Management Policy and Prioritized Business Strategies

Dai-ichi Kogyo Seiyaku Co., Ltd.
Head Office, Laboratory (in Kyoto Branch)
Kyoto BranchTokyo Branch
Osaka Branch
Nagoya Branch Kyushu Branch Yokkaichi Branch
Ohgata Branch Shiga Branch

About Us

Company Overview

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

3

Environmental and Social Report 2010

Environmental and Social Report 20104

Our Business and Product Lines
Environmentally Friendly Products &Technological Development

Our Business and Product Lines

Environmentally Friendly Products & Technological Development

Our products, as specialty chemicals, are being supplied in many fields of industry through the following five core businesses.
Our product line will suit customer needs both in daily life and in industry.

Our Products & Technological Development

1. Surfactant Business
Surfactants, which have been playing a pivotal role from the starting pointof our company, are used in a wide variety of industrial fields, such as
rubbers, plastics, colorants, machines/metals, cosmetics/human-life relatedindustries, paper/pulp, fiber, agrochemicals/agricultural materials, civilengineering, and energy-related industries.
- Non-ionic surfactant- Anionic surfactant- Cationic surfactant- Amphoteric surfactant

Global warming prevention, energy and resource saving, and environmental impact reduction—with these environmental requirements in
mind, we have been devoted to supplying environmentally friendly and compliant products and developing related technologies.

Our Environmentally Friendly Products & Technological Development
Category of Environmental
Consciousness

Functions & Features

Our Product Line & Technology/Application

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

Lithium cell
DD-1200C series

Conductive paste for solar cells

DK BE-CLEAR Series

Water-borne washing agents

DK POLYOL 3000 Series

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

Halogen-free type

2. Amenity Material BusinessOur 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 the peripheral applied technologies. They are widely used in many
fields surrounding our daily life including the foods, pharmaceuticals andcosmetics, and fishery/livestock industries.
- Sucrose fatty acid ester- Cellulose type polymer- Vinyl type polymer- Acrylic acid type polymer

Energy Efficiency
Energy & Resource
SavingCOLOURSOL CT-171D

Accelerating/leveling agents for polyester

NEW FRONTIER Series

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

Non-CFC rigid urethane foam for insulators

Anti-solidification agents for slag

Effective Resource
Utilization
ELEXCEL IL Series
Extension of Life Span
EIMFLEX Series
Environmentally
Responsive

3. Polyurethane BusinessSUPERFLEX Series

Polyurethane water dispersions/paints, coating, binders

ELASTRON, ELASTRON BN Series

Thermal-reactive polyurethane water dispersions,binders, adhesives

COLORCOAT Series

Solvent-free urethane paints

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

4. Functional Material BusinessContributing to the Improvement of the Durability of Electronic
Substrates for Photovoltaic (PV) Power Generation and LED lighting

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 the performance and added value of synthetic resins and to
facilitate environmental improvement.
- Materials used for radcure resin - Water-borne urethane resin- Flame retardants- Amide-type lubricant, plastic additives

5. Electronic Device Material BusinessTechnological innovation in the IT-related field, as symbolized by the
popularization of computers and cellular phones, has been constantly
spurred by public demand. By drawing on our unique technologies, wehave been devoted to developing various types of electronic products,
including conductive pastes, ceramics materials, ionic liquids, and lithium
cells, and providing support for technological innovation in the field ofelectronic devices.
- Conductive paste for electronic components - Injection molding pellets- Ionic liquid- Ionic conductive polymer- Functional inorganic materials

5

Environmental and Social Report 2010

NEW FRONTIER Series
Reduction ofPolymerizable surfactants
Environmental Impacts
Removal ofContaminants

Polyurethane resins for electrical insulation

NOIGEN XL Series, NOIGEN TDS Series Nonionic surfactants/emulsifiers, cleaning agents

VOC* Reduction
Environmental
Conservation

Ionic liquids/energy device materials

Solvent-free UV/EB curable monomers/adhesives,
coating agents
Polymerizable surfactants/emulsifiers for emulsion
polymerization

SEACLE N-800

Spillage oil treatment agents

DEOPELLET Series

Foul odor gas absorbents for absorption towers

Electric Insulating Polyurethane/EIMFLEX EF-500 Series

The EIMFLEX EF-500 Series is a long-term reliable, electric-insulation purpose polyurethane resin,which has been used as a circuit board sealing material. Sealing materials, specifically those used
for application in photovoltaic (PV) power generation or LED lighting, have been required to havehigh heat and moisture resistance that can withstand the usage environment for a long period oftime as well as to have sustainable flame retardancy and high radiation performance.
Our company envisions developing products capable of maintaining the specified performancefor 20 years or longer. For that design purpose, we have been devoted to the development of new
products while adopting life expectancy tests.
The EIMFLEX EF-500 Series, having been adopted in sealing substrates used in LED light bulbs, contributes
not only to extending the life of end products but also to reducing the energy costs incurred in their use.

The Offensive Odor Gas Absorbent with Excellent
Performance Born from Soil (Humic Volcanic Ash Soil)

Foul Odor Gas Absorbent Used for Absorption Towers/ DEOPELLET Series

When plants grow and produce humus in soil, the soil is called humic volcanic ash soil (orAndisol), which contains not only inorganic matter but also organic matter such as humic acid.
Thanks to its porosity, this humic volcanic ash soil has excellent absorption abilities and is wellknown for a chemical reaction caused by humic acid (the chelating effect). The DEOPELLET is afoul odor gas absorbent produced by making full use of the natural benefits of the humic volcanic
ash soil. This product can exert its excellent performance on odor gas, whether the gas is acidic,
neutral, or alkaline, and has been used in applications in sewage treatment plants and humanand animal waste treatment plants. The DEOPELLET is a reusable, environmentally friendly
product made from natural materials.
Environmental and Social Report 2010

6

About Us

About USCorporate Governance

Promoting Environmental& Social Activities

ComplianceInternal Control
Risk Management

The purpose of our corporate governance is to establish amanagement base that invariably obtains the confidenceof society. 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
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.

Corporate Governance System (in force as of June 25, 2010)
Shareholder Meeting
Auditors Meeting

Board of Directors

Accounting Auditor

President

Compliance Control Committee
Internal
Audit Department

Security & Export Management Headquarters
RC (Environment, Safety & QA) Promotion Meeting▶
(Japanese only)

Compliance
Our company established a Compliance Control Committee in
2004. This committee has been engaged in establishing ourown compliance system and performing multiple activities toinstill compliance practices within our company. In addition, forthe purpose of improving compliance-based management, wehave 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.

- 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.

- Whistleblower Hotline was set up in 2006.

- In order to improve our compliance practices, complianceassessment has been undertaken on a sectoral basis.

Environmental and Social Report 2010

- Preparation of Checklist

PLAN

企業倫理憲章Corporate 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)DO- Implementing as Specified
in Task Statements- Preparation of Task Statements

CHECK●Reviewing/Correcting- Reviewing Work throughSelf-auditing- Correction throughInternal Auditʼs Evaluation

DO●Implementation- Implementing as Specified
in Workflows- Preparation of Workflows

ACTION- Since 2004, we have been conducting a “Research
Questionnaire on Compliance Awareness” once a year,
in order to check to what extent the compliance-based
management philosophy is instilled in our employees.

Activities to Instill and Implement Compliance Practices
This hotline is a contact point for any employee who has
information about (alleged) violations of law and/or wants
to report an actual violation of law. Whatever access modeis used (phone, e-mail, postal mail), the Whistleblower
Hotline is directly connected to our Compliance Control
Committee.

PLAN●Documentation of Work

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

7

PDCA Cycle of Internal Control Processes for Financial Reporting

Financial Reporting Control Committee

Operating Officers
Each Business Division & Group Company

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.

Risk Management Control Committee
IT System Control Committee

Management
Conference

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

ACTIONCHECK●Monitoring/Evaluation- Evaluation through Self-auditing- Evaluation by the Internal
Audit Department

Risk Management
The risks companies face have become diversified andcomplicated, which may result in increased adverse impacts
on customers, shareholders, local communities, andemployees.
Our company views and treats risk management as animportant business challenge. To cope with potential or explicit
risks, in our company, risk management practices have been
undertaken by the responsible departments in accordancewith our risk response procedures and our company’s internal
rules, including our Risk Management Procedures, Internal
Audit Rules, Product Liability (PL) Prevention & Management
Procedures, and Information Security Rules. The Risk
Management Control Committee has been committed toassessing and addressing all risks to our business activities,

in particular, those posed by natural and anthropogenic
disasters. During FY 2009, we allowed all of our plants toreview the “Manual on Earthquake Countermeasures & Crisis
Management” and established a “New Influenza Preparedness
Manual” and “Network Fault Management Manual.” Further,
we have introduced not only our Earthquake Emergency Alert
System but also a Safety Confirmation System, and have held
disaster prevention drills using these systems. In FY 2010, we
extracted and evaluated risks associated with our businessand have undertaken our “New Influenza Pandemic BusinessContinuity Plan (BCP).” To raise the disaster awareness of ouremployee, we will continue to provide all of our employees withappropriate instructions and training using our disaster casestudies.

Environmental and Social Report 20108

Promoting Environmental & Social Activities

Corporate GovernanceSocial Activities

Relations with Society & Local
Communities

Relations with Society & Local Communities
Provision of Information

Communication with Local Communities

For the purpose of providing our stakeholders with accurate and useful
information on our company, we have been publishing brochures suchas 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 havealso started publishing a series of our Social Activities Reports as“Environmental and Social Activities Report” (this document) since 2008.

Each of our plants has been devoted to various local activities including neighborhood cleanup activities and social activities such as
participation in community events. Each plant has also held a consultative meeting with the autonomous body or other companies inorder to promote local communications.

Brochures【WEB】http:/www.dks-web.co.jp●Emergency Drills●Participation in Community Events

Each of our plants has been periodically conducting various
disaster drills such as our private fire brigade (on theassumption that fire or a major earthquake has occurred) anda comprehensive disaster-preparedness drill. At Yokkaichi
Branch, in accordance with the High Pressure Gas Safety
Act, a Water Curtain System has been installed with the aimof preventing the spread of fire in the hazardous facilities. Thissystem will play a great role in preventing the spread of damage
after any disaster has occurred. In order for this system to work
properly when disaster strikes, operation testing has been
periodically performed.

Almost 40 companies located in Minami-ku, Kyoto, took partin the Minami-ku Fire Brigade Operations held at the groundsof the Firefighter Training School. In the “No.2 Hydrant Box”
category, three participants from our company demonstrated
their skills obtained through the training course of the Minamiku Fire Department.

FY 2009 Exhibition Presentations
During FY 2009, we made presentations at the following exhibitions.

Yokkaichi Branch: Water Curtain System

November 2009

Leading Industry Exhibition MIE 2009 Yokkaichi Dome in Mie- Panel Presentation

November 2009

CLEAN LIFE VISION 21
International Laundry & Drycleaning Show 2009, Index Osaka- Our affiliate GENBU made a presentation on the theme of health and cleanliness.

March 2010

The 4th Biomaterials Project Symposium Uji Obaku Plaza, Uji Campus of Kyoto University- We made a presentation on a fermentation-derived cellulose, RHEOAQUA CM-100.

Shiga Branch has annually participated in this road relay raceorganized by the community. The number of participants has
increased year-by-year; this year, five teams from our company
participated in the race. Team A finished second, threeseconds behind the winner.

●Neighborhood Cleanup Activities
Our Shiga Branch, as a part of its regional measures,
performed cleanup of the neighboring Uryu River. Seventeen
members of staff from Shiga Branch participated in this activity.
This is a new effort for the community-based plant.

●Leading Industry Exhibition MIE 2009
The Leading Industry Exhibition MIE 2009 was held at Yokkaichi
Dome in Mie prefecture. The purpose of this exhibition was
to introduce the latest information on various efforts made by
local industries in Mie or joint efforts made by a local industry

Gokashocho Ekiden (Road Relay) Race (Higashi Ohmi City)

and an educational institution. Our company made a panelpresentation at the booth of the Advanced Materials Innovation
Center (AMIC).

Two teams from our Yokkaichi Branch participated in the 22nd
Yokkaichi Port Festival Cutter Race (84 teams participated). Our
teams did not reach the final, but they fought well.
Shiga Branch: Cleanup Activity at Uryu River

Leading Industry Exhibition MIE 20099

Environmental and Social Report 20102009 CLEAN LIFE VISION 21

The 4th Biomaterials Project Symposium held in
Kansai Region

Yokkaichi Branch: Cleanup Activity around the Front Gate

Yokkaichi Port Festival Cutter Race (Yokkaichi City)

Environmental and Social Report 201010

Social Activities

Minami-ku Fire Brigade Operations (Kyoto City)

Relations with Our Customers& Business Partners

Relations with Society & Local Communities
Internship & Learning through Work

●Nursing Student Practices

We have been accepting technical college students for internships
for a long time; so far, many students have participated in ourinternship programs. During their summer holidays, participants
take their own time to complete our one- or two-week internshipprogram, during which they have a practical work experience inany of our workplaces (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 canreally feel “the meaning of work.”
We believe that accepting students for internships will help themnot only to expand their occupational awareness and improvetheir business ability, but also to promote their understandingof workplace relationships and effective information exchange
while communicating with their schools. As a part of our CSR
activities, we will continue to offer these internship programs.
In addition, we have been accepting nursing students’participation in our internship program and interview offers fromjunior high school students about our business.

We hosted 14 nursing students from Kyoto Tachibana
University (Kyoto City) for six days. This program offered themthe opportunity to learn essential roles and practical skills thatprofessional occupational nurses and medical nurses need towork in business companies and support “good health” among
workers.

Relations with Our Customers & Business Partners

Process for Quality Assurance

Customer
Items to be Assessed

06

07

08

Ohgata Branch

09 (FY)At the request of the Japan Oil Chemists’ Society (JOCS),
as a part of the weekend seminar presented by the Oleo
Material division of JOCS, a student excursion was held at
our Kyoto Branch. The excursion, which included 15 students,
included a tour of our laboratory and an introduction to an R&D
organization and our research topics.

Safety of the process

Response to
MSDS Indication

Selection of production facilities
Environmental compliance

Social Activities

Composition& Packaging

Investigation of raw materials

Improvement

Needs

Planning

Environmental compliance

Commercialization- 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)

Safety evaluation

Response to
Production Request

persons- MSDS- Specification for Delivery- Other Written Certificates

Selection of containers

R&D Prototype

6
persons

persons2
05

Supplying products
Offering services

Property evaluation

Regulatory compliance
Production Processes& Facilities

6
persons

7

Validity Check

6
4

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.

8

Offer &
Assessment

Function & Performance Evaluation●Internship(Persons)

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

When trying to develop products, suppliers must take into account avariety 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 progress from multiple

Shiga Branch

Acceptance of Technical College Students for Internship(2) Our company will pursue higher quality in our products andcontinue to improve the effectiveness of our Quality Manual inorder to maximize customer satisfaction.
We believe our QA system can clearly specify not only an effective
process for quality assurance, but also roles and responsibilities
imposed on and authority granted for each QA department. Basedon this QA system, we have been trying to implement in-depth
quality control (QC) and provide accurate product information while
responding to product complaints in a quick and faithful manner. We
have always been devoted to providing products that are safe for use.

Our quality assurance (QA) system has been establishedand operated 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 beenpromoting our QA activities while pursuing the following two
product quality 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.

Design & Development

Social Activities

Relations with Society & Local
Communities

Regulatory compliance

DesignDevelopment

Manufacturing

QA System
The management of any information related to product quality is all
taken care of by the QC section of each production site. The QC
section will hold periodic product quality review meetings to review
the quality status of our products, respond to/analyze our customer
complaints, and develop recurrence prevention measures.
Our Environment, Safety & Quality Affairs Department is
responsible for the overall quality management of our company
and has been maintaining close liaison with other related
departments to promote the lateral dissemination of useful
information and solutions to problems.

We have been performing our QA activities using ISO 9001 as atool. At QA (PL) conferences, based on our QA Management Rules,
we consider and review effective measures that could continue toenhance our quality management and improve QA activities. The
QMS Committee plays a key role in promoting “improvement andenhancement” measures and controlling management reviews fromeach department. As a result of our reorganization in October 2008,
any product is managed integrally from R&D through production &sales within a single business division, thereby clearly specifying eachbusiness division’s responsibility for quality management practices.

QA (PL) Conference
Business Administration
Division

Sales
Department

R&D

Production
Department(Material procurement)

Functional Chemicals Business Division
Distribution
Department

Plastic Materials Business Division

Product Quality
Review Meeting

Purchasing
Department

Production Control
Division

Business Divisions(Head of) Branch

QC Section

QMS Committee

Environment,
Safety &Quality
Affairs Department(Order receipt& shipping)Electronic Materials Business Division
Each Branch

Kyoto Branch

Kyoto Branch
Customer

11

Environmental and Social Report 2010

Environmental and Social Report 201012

Relations with Our Customers& Business Partners

Social Activities

Relations with Our Shareholders& Investors

Relations with Our Customers & Business Partners
Provision of Product Information

Zenkoku Ichi-Ko Kai (DKS National Dealers Meeting)

We have been providing product information as an opportunityfor (prospective) customers to better understand our products.
In addition, we always respond to requests and inquiries fromour customers quickly and adequately in good faith.
For the purpose of providing product information, especially at
the stage of introducing our existing products and/or developing
new products, we strive to be in close communication withcustomers and business partners, not only through our
everyday business negotiations, but also with our brochures
and technical documents. We have been providing material
safety data sheets (MSDS) for all our products as chemical

substances and answering inquiries about the latest information
on environmental burden substances or the relevant laws
and regulations. During FY 2009, we completed the revisionof our MSDS in response to the amendment of the Pollutant
Release and Transfer Resister (PRTR) Law, the Regulations
for the Carriage and Storage of Dangerous Goods in Ships,
and the Law Concerning the Examination and Regulation of
Manufacture, etc. of Chemical Substances (CSCL). Also, in
response to the revision of the Japanese Industrial Standards(JIS) related to the GHS, the revision of our MSDS and labels iscurrently underway.

In order to offer products that respond to the market’s trends
and needs and to promote the sale of such products, our sales
department has been devoted to developing new marketing
practices in cooperation with our dealers.
The general assembly of Zenkoku Ichi-Ko Kai, whose members
are composed of our major dealers, has been held annually.
The FY 2009 assembly was the 28th in the series.
The general assembly provided not only actual trends in ourbusiness performance but also a strategic direction for ourbusiness activities.
At the convivial meeting, attendees watched “Hyaku-Nenno
Ayumi,” a commemorative slideshow to celebrate our 100th
anniversary, and had a pleasant talk with each other. This year’s
assembly ended on a high note.

General Assembly of Zenkoku Ichi-Ko Kai

Relations with Our Shareholders & Investors

Product Brochures

Dai-ichi Kogyo Seiyaku views the shareholder meeting as
an important opportunity to foster communications between
shareholders and management.
Ninety-two shareholders attended the annual shareholder
meeting on June 24, 2009, and 83 shareholders attended thisannual shareholder meeting on June 25, 2010. Our President,
Dr. Oyanagi, chaired the meeting and presented an annual
business report and an explanation of each agenda item. We

always try to provide a lucid explanation for our report using anarration and slide presentation, so that all of our shareholders
can well understand the point.
During a question and answer session at the 2010 annual
shareholder meeting, there were eight questions/opinions
coming from six participants, which resulted in about one hourand 40 minutes of discussions. At a shareholders get-together
held after this year’s shareholder meeting, shareholders
exchanged candid opinions.

Response to PL
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. Fortunately, during
FY 2009, there was no occurrence of accidents associatedwith PL.

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

Our policies for handling product complaints focus on thefollowing practices: maintaining credibility responding quickly
and in good faith, thoroughly probing the cause of thecomplaint, and taking preventive measures and recurrence
prevention measures. At our each branch, monthly productquality review meetings are held and a product quality
inspection patrol has been performed on a monthly basis.

What Does It Mean??
● GHS

GHS is an abbreviation for Globally Harmonized System of Classification and Labeling of Chemicals. This system
is intended to address the hazard classification of chemicals in accordance with globally standardized rules andto 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 and protect human health and the natural environment.

13

Environmental and Social Report 2010

Shareholder Meeting

Shareholders Get-Together

Disclosure of Information
We provide up-to-date information, including corporate
information and financial information, on our website. Timely
disclosure materials, a reportto s ha re h o ld e r s ( To O u r
Shareholders), a summaryof financial results, the noticeof the annual shareholder
meeting, news releases, andother related documents areposted on our website as soon
as practicable after they are
publically disclosed.

http://www.dks-web.jp/j/dks̲ir/index00.html

Environmental and Social Report 201014

Social Activities

Shareholder MeetingSocial Activities
Relations with Our Employees

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

Human Resource Development & Education
Our employee development and education programs focus on
three pillars—in-house education, external education, and selfdevelopment support. In addition, we have been dedicated tosupporting the voluntary capacity building of our employees by
providing them with in-house lectures and briefing sessions.

Our Companyʼs Human Resource Philosophy
Our fundamental human resource philosophy is rooted in the idea that our people are our greatest asset and must be nurtured
and treasured. We believe that putting into practice our belief that the growth of each individual employee will support thegrowth 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 our company and making
the company’s presence permanent.

In-house Education Programs

External Education Programs

Self-Development Support Programs

Brother/Sister System

Hierarchical Training(Newbie Training Sheet, Safety
and Health Training Sheet)- Newbie Education/Follow-up Training- Mid-carrier Staff Training- Rookie Manager 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

Human Resource Development Policies

Professional Education

In order to foster people who can fully understand our company’s management philosophy and the management policies
based thereon and can contribute to the realization of such philosophy and policies, we demand that our employees have thefollowing basic skills and attitudes:
1. Profound expertise and technique and broad vision 2. Energetic behavior 3. Flexibility in thinking 4. Fruitful creativity- Engineer Training & Sales Rep
Training- ISO Quality Internal Auditor
Training Program- English Literature Reading Circle- New Technology Research
Debriefing

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)Social Activities(From April 2010 to March 2015)

Target 1: Familiarizing our employees with our child-rearing support system and enlightening them
Target 2: Implementing measures to reduce overtime work
Target 3: Implementing measures to promote taking annual paid leave
Target 4: Performing community contribution activities related to children and child-rearing practices
Target 5: Expanding opportunities to obtain working experience including internship

Our Personnel System●Employment System●In-house Achievement Award System

In response to the declining birthrate and aging society andin order 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
Systems During the Last Four Years

Through our employee incentive programs, we have beenrunning not only a performance incentive system such as
patent award and personal achievement award (twice per year)
but also Division Manager’s award and length of service award.

Persons■Childcare Leave
System■Childcare Part-time Work
System■Nursing Care Leave
SystemFollow-up Training

Chinese Language Class (Dai-ichi Ceramo)

Conversational English Class (Tokyo Branch)

English Literature Reading Circle

102009 First Half Achievement Award Winners 2010 Length of Service Award Ceremony

8●Special Course for Engineer Training●Efforts to Prevent Harassment

6
4
2
0

06

07

08

09

(FY)

●Retiree Reemployment System
In 2006 we introduced a reemployment system for our company’s
retirees. By drawing on their many years of skills, techniques, andexperience, they still remain active as “senior challenge staff.”

15

Environmental and Social Report 2010

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.

We provided a special training course for our engineers toenhance their creativity. The special course was composed oftwo sections: listening to a lecture titled “Thrilling Developmentin Value Creation,” and a group discussion in which our
researchers exchanged their ideas and useful information
about their actions for uncovering a prospective topic in theirdevelopment projects.

Kyoto Branch

Environmental and Social Report 201016

Social Activities
Relations with Our Employees

Relations with Our Employees●Workshop●GO GO Circle Presentation

Healthcare & Occupational Safety

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 iscomposed of three sections: a special seminar presented by avisiting lecturer, verbal presentations, and poster presentations.
After the workshop is completed, a convivial meeting is held
where participants vote for the best presentation award of theworkshop, which is awarded to the winner. In FY 2009, we had
the 70th and 71th workshops in the series.

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
Circle Presentation,” where the number of themes to beaddressed in the year is specified. Every year’s presentationis energetic and always sees a meaningful exchange of views
and questions, which can help to improve our product quality
and reduce workloads in the plant.

●Health Checkup●Physical Fitness Measurement

As a result of encouraging and motivating all our employees to
get regular medical checkups, their checkup-participation rate
in FY 2009 increased to 99.6%. We will make another effort toachieve 100% participation in FY 2010. We also place emphasison the medical follow-up of our employees, in particular, those
who have some abnormal clinical findings, to ensure that they
do not fail to attend reexamination and understand the clinicalresults. For that purpose, in our company, industrial physicians,
occupational health nurses, and health supervisors work inconcert with one another to streamline the follow-up process fromconsultation with the employee to the reporting of the results.
To achieve the early detection of cancer and ensure promotionof good health for our employees, in FY 2009, at all of ourbranches, employees were offered medical checkups
including a fecal occult blood test, X-ray examination of thestomach, abdominal echocardiography, and dental checkup.

Physical fitness measurement tests were performed in our Kyoto
and Shiga Branches.
The physical fitness tests were composed of three to fivemeasurement items per participant, including instantaneous force,muscle endurance, balance ability, etc. Immediately after all of thetests were completed, participants were given their “body age”
score compared to others in the same age group; some soon
realized they were not getting enough exercise in their daily routine.
A physical trainer gave the participants some fitness advice bydemonstrating and offering instructions on exercises, such as easyto-do stretching and gymnastic exercises and muscle training (anyof which can be conducted on a daily basis). Thanks to this solid
approach, these tests were very popular among our employees.

Kyoto Branch●In-house Seminars & Briefings
Seminars
R&D and Intellectual Property Activities (by a visiting
lecturer)
Briefings
Briefing on the Revision of Our Insider Trading Prevention
SystemRisk Assessment
Labor Accident Prevention Measures

Dental Checkups●Mental Health Care
Shiga Branch●In-house Magazine
In order to facilitate the integration of employees and management and to maximize interaction among the employees, sinceApril 2008, we have been publishing our in-house magazine “DKSCOM.”

In-house Magazine “DKSCOM”

During FY 2009, face-to-face interviews with the head of eachsector and department were conducted at all our branches;
there were more than 70 interviews.
Prior to each interview, results obtained in a job stress survey forour employees were analyzed on a department-by-department
basis. Analysis results were shared with the head of thedepartment concerned, while reviewing various aspects of thedepartment in terms of work volumes, workload, current statusof support from other sections/departments, and advantages
and disadvantages of the department.
During the series of interviews, we not only asked about theirobjectives and challenges required to stimulate the vitality of thedepartment, but also heard various comments and feedback
from the managerial personnel, such as fresh suggestions toimprove their working environment.
Accordingly, these interviews served as a catalyst to improve
our mental health care system, resulting in a good relationshipbetween superiors and subordinates.

Briefing Session (Targeting the Head of Each
Department & Section)

17

Environmental and Social Report 2010

Social Activities

Ohgata Branch

Shiga BranchLabor-Management Joint Declaration
As Dai-ichi Kogyo Seiyaku celebrates its 100 years of history,
we have adopted the following “Labor-Management Joint
Declaration” to enhance our company’s value and fulfill oursocial mission through the joint cooperation of our employees
and management.
1. We acknowledge that our mutual understanding
and relations of trust are indispensable for a healthylabor-management relationship to be built. With thisacknowledgement in mind, we will conduct ourselveswith the aim of contributing to the further developmentof our company.
2. We value the personality and uniqueness of each of
our employees. In respect of each other’s differences,
we will conduct ourselves with the aim of establishinga working environment that not only is attractive to ouremployees but also fits our company’s model andculture properly.
3. We will all make constructive suggestions to help
increase the value of our company. Further, we willconduct ourselves with the aim of ensuring a morestable revenue base.
4. We will place huge emphasis on proper compliancepractices and will conduct ourselves with the aim ofobtaining and maintaining a high degree of confidence
in society.

Environmental and Social Report 201018

RC Promotion System
Management System

We will Contribute to Conservation of the Global Environment
and Creation of Recycling Society through RC Activities.
Basic Philosophy, Basic Policies, and Corporate
Principles for Environmental and Safety Practices

Basic
Philosophy

We have adopted the following business philosophy for all our business activities: “By providing quality
products to ensure customer satisfaction, we will not only strive to be a prosperous company whilemoving forward with our employees and serving local communities, but also contribute to creating anaffluent society.”
Based on this philosophy, we adopt the following statement as our basic 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 and health and environmental preservation and also
contribute to sustainable development and the realization of an affluent society.”

RC Promotion System

Board of Directors

President
Management Conference

Basic
Policies

Corporate
Principles

Our basic policies for environment and safety practices are defined as follows:
1 Throughout the whole life of products, from development to disposal, we evaluate andreduce each product’s load on the environment and do our best for environment protection.
2 We sustain no-accident operations to ensure safety for the employees and the residents ofthe surrounding areas.
3 We ensure the safety of raw materials and interim and final products, and prevent any healthdisorders of 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
and improve the environment, safety, and quality under the spirit of Responsible Care.

Our corporate principles for environment and safety practices are defined as follows:
1 We will evaluate the effects of our business activities on the environment and human safety
and, further, set and periodically review our environmental targets/goals and safety targets
to ensure continuing improvement of both our environmental conservation activities andoccupational safety and health activities.
2 We will obey any laws, regulations, or agreements related to both the environment andoccupational safety and health issues to ensure coexistence with our local communities.
3 To reduce environmental impacts, we will be devoted to performing all of our businessactivities in such manner as to achieve resource and energy conservation, promotionof waste reduction and recycling, and improvement of occupational safety and healthprotection.
4 When developing our products and technologies, we will be devoted to providing safe
products while paying special attention to environmental and safety matters and 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, wewill ask our affiliate companies for their continued understanding and support.

● Responsible Care

Responsible Care (RC) refers to voluntary activities conducted by respective companies handlingchemical substances to secure environment, safety, and health improvements and to promotedialogue and communication with the public by making the results of such activities available
to the public throughout the entire process from the development of a chemical substance tomanufacturing, distribution, use, final consumption, and disposal.

19

Environmental and Social Report 2010

Responsible CareRC
（Environment,Safety&QA）Promotion Conference
Environmental Conservation Conference

EMS＊1 Committee

Safety and Health Conference

SHMS＊2 Committee

Quality Assurance (PL) Conference

QMS＊3 Committee

Operating Officers

Management Section

R&D Section

Branches

Safety and HealthCommittee

Safety and HealthCommittee

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

Manufacturing Plants
Environmental Conservation
Committee

Safety and Health Committee

QA (PL) Committee

Management System
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.

PDCA Cycle●Reviewing Policies
Review of annual policies●Proposals for Improvement
and Corrective and Preventive Actions

ACTION●Audit & Assessment
Auditing performed by RC promotion departments
Assessment at Environmental Conservation/
Safety and Health Conferences●Understanding current status &finding latent problems●Establishing Annual Policies & Goals●Establishing Implementation Plans
Deliberated on & decided at
Environmental Conservation/
Safety and Health Conferences

PLAN

CHECK

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

DO

ISO 14001 & ISO 9001 Accreditation Status
Our Departments
Yokkaichi Branch
Ohgata Branch
Shiga Branch
Production Technology Dept.
Cost Reduction Promotion Dept.
Environment, Safety
and Quality Aﬀairs Dept.
Planning Depts.
Business Administration Div.
R&D Depts.

What Does It Mean??

conferences, three company-wide committees—the EMS
Committee, SHMS Committee, and QMS Committee—
as well as three committees in each of our plants—theEnvironmental Conservation Committee, Safety and HealthCommittee, and QA (PL) Committee. The conferences havebeen held periodically to formulate implementation plansfor RC targets (related to energy saving, waste reduction,and proper control of chemical substances), to manage theprogress of these plans, and to summarize obtained results.
In addition to establishing Safety and Health Committees inour manufacturing plants, we have provided them in otherbranches and departments. These committees are chaired by
the heads of the related departments and sections to promote
positive safety and health practices.

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 andthe heads of relevant departments and sections, and chairedby the person in charge of Environment, Safety & QA. At these
conferences, our company-wide targets and implementationplans and their results are deliberated on.
We have also established, as a suborganization of ourEnvironmental and Safety Activities (RC Activities)

Environmental and Safety
Activities (RC Activities)

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

ISO１４００１＊1
ISO９００１＊2
Date of Accreditation Registration Number Date of Accreditation Registration Number
June 2002
JCQA-E-0391
July 2002
JCQA-E-0397
March 2002
JCQA-E-0354

ISO 14001 Certificates

January 2000 JCQA−0619*1 Our plants (Yokkaichi, Ohgata, and Shiga) completed the surveillance audit during the period
from February to July 2010.
*2 After having passed the third renewal audit, our Shiga Branch, Business Administration Division, and Kyoto
Branch (R&D Depts and Production Control Division) have already completed the surveillance audit.

Yokkaichi Branch

Ohgata Branch

Shiga Branch

Environmental and Social Report 201020

Targets & Performance in RC Activities

Environmental and Safety
Activities (RC Activities)

SEKIGUCHI Wataru(in charge of Environment,
Safety & QA)

Funding for Security andDisaster Prevention Measures

Our company, as a business entity handlingchemical substances, has been devoted toenvironment, safety, and health practices throughthe entire lifecycle of our products, from design anddevelopment to disposal, and to promoting waste
reduction and recycling while making the reductionof environmental impacts our top priority. In order tocontinuously improve the level of safety and healthin our workplaces, we have been implementing
RC activities. Regrettably, however, we had one“days away from work” case in FY 2009. In our RC
activities, we are always ready to take preventive
measures for every occupational accident scenario
and will spread the best practices through lateral
integration, on a department-by-department basis.
Also, we have allowed our managers to be engaged
in periodic safety patrols to highlight and correct
unsafe areas and operations. In addition, throughrisk-assessment activities, we have been continuing
to promote the implementation of safety measures toprevent possible occupational accidents.
Our efforts in FY 2009 were directed at addressing
environmental impacts, including energy-saving
measures such as overhauling compressors or thereview of conventional water heating methods, which
resulted in the reduction of CO2 generation by 13.4%
relative to that of the previous year. Although we weredevoted to recycling while taking waste reduction
measures, the amount of waste transported to thefinal disposal site did not meet our proposed targets
due to the increase in total waste generation.
We will continuously improve our workplaceenvironment through our in-house meetings
on environmental conservation and safety andhealth issues, and hope to always demonstrate
our corporate social responsibility (CSR).

Environmental Accounting

Investment and Costs of Environmental Conservation Activities
Environmental Conservation Cost (million yen)
FY 2009
Category

Costs within theplant premises

Targets & Performance in RC Activities
Promoting energy saving
Reducing GHG emissions
Reducing industrial waste
Reducing emissions of environmental impact substances
Proper management of chemical substances
Promoting green procurement
Eliminating disasters/accidents
Environmental management system

Targets in RC Activities

Performance in FY 2009

Evaluation

Annual improvement of specific energy consumption by 1% relative to the previous year
FY 2010’s specific energy consumption to be reduced by 10% compared to FY 1990
2% reduction compared to that of the previous year
FY 2010’s specific CO2 emissions to be reduced by 10% compared to FY 1990
1% reduction of waste generation compared to that of the previous year
Promoting recycling processes
FY 2010’s final disposal amount to be reduced by 80% compared to FY 1990
Control of emissions/discharge of environmental pollutants
Reducing emissions of PRTR Law-designated substances
Promoting green procurement
No occupational accidents
Eliminating severe accidents associated with production facilities
Promoting environmental management systems

Previous year-compared target achieved
FY 1990-compared target not achieved
Previous year-compared target achieved
FY 1990-compared target achieved
Increased compared to the previous year
Recycling rate increased
FY 1990-compared target not achieved
Increased compared to the previous year
Increased compared to the previous year
Promoted in stationery procurement
One case experienced
No accident occurred
Maintained◎△

Evaluation: ◎ Achieved more than planned〇 Achieved as planned

◎
◎
△
◎
△
△
△
○
△
○

Upstream/
downstream cost
Management
activity cost
R&D cost
Social activity cost

Items

Energyconsumption*1(1,000 kl)
GlobalSpecific energy
Environment consumption
Conservation
CO2*2 (1,000t)

FY 1990
FY 2008
FY 2009
Ratio to the
Performance Performance Performance Previous Year Value

28.2

19.8

17.3

0.933

1.091

1.034

65.6

41.7

36.1

Waste (1,000t)

18.4

8.6

9.9

Waste
Reduction

Recycling amount (1,000t)

0.4

6.7

8.5

Pollution
Control

Final disposal amount (1,000t)
SOx
NOx
Dust

1.7
424
51
15

0.5
9.7
133.0
2.7

0.5
10.6
110.4
2.0

COD

127

39.0

64.1

-12.6%FY 2010 (Target)

Review of pressurized air supplying
Introduced energy-saving belts
Controlling the number ofcompressor units
Review of hot-water tankheating method

What Does It Mean??
●Thermal Recycling

Recycling is roughly classified into two categories: material recycling (items are recycled as material) and thermal recycling (items
are recycled as heat). In thermal recycling, not only will waste undergo incineration disposal; the thermal energy generated during
the incineration will be recovered and reused. Thermal recycling applications include oilification and gasificaton, use of waste
incineration heat, waste power generation, converting cement kiln into raw fuels, and reusing derived fuel (RDF).

21

Environmental and Social Report 2010

77.9

305.6

Global environment conservation
Energy saving

11.3

83.6

Lowering environmental impact incontainers/packaging
ISO acquisition/completing surveillance
audit, greening each plant
Environmentally-conscious R&D
Providing support grants forenvironmental protection to environmental
conservation groups or local communities

0.2

190.0

0

10.0

0.8

29.1

—

411.3

0

3.6

Total

0

0

90.2

1033.2

Environmental Conservation Effects
FY 2009Fluctuations
Compared to the
Items
Results
Previous YearSOx emissions (t)NOx emissions (t)Dust emissions (t)COD (t)PRTR notification substances (t)CO2 generation amount* (1,000t)

10.6
110.4
2.0
64.1
14.7
36.1

+0.9
-22.6
-0.7
+25.1
+1.6
-5.6

Water discharge amount (1,000m3)

2,711

+671

Waste generation amount (t)9,912+1,333

Amount of final disposal waste (t)

498

±0

Some drums and containers are being reused.

*CO2 generation amount: Derived from energy used in production sectors○△ Achieved less than planned

1% reduction compared
to previous year
2% reduction compared-13.4%
to previous year
5% reduction compared
Promoting waste solvent+15.1%
to previous year
recycling
Promoting waste
Thermalrecycling+26.9%
recycling
Recycling by waste
segregation±0%80% reduction compared to FY 1990
+9.3%—
Converting fuels for boilers-17.3%—
Cogeneration operations-25.9%—
Stable operation by retrofitting/ Elimination of+64.1%
improving effluent treatment facilities environmental complaints*1 Energy consumption: Production sectors*2 CO2: Derived from energy used in production sectors
-5.2%

Costs

Pollution control
Air pollution control, water pollution
controlEconomic Effects Generated by Environmental Conservation Measures
Economic Effects(million yen)

Remarks

Profit on sale of valuable resources
Amount of cost savings through energy conservation
Amount of cost savings through resource saving

48.3
88.5
1.8

Profit on sale of metal scrap, waste oil, waste alkali, etc.
Amount of cost savings in electric power and fuels
Amount of cost savings through reduction of water use /waste

Total

138.6

Items
Main Efforts in FY 2009

Investment

Environmental damage cost

Performance of Environmental Impact Reduction Activities in FY 2009
Category

Main Activity

Resource recycling
Resource saving, waste treatment/disposal

Targets and Performance in FY 2009
Target Items

efforts in waste separation, the waste disposal cost only slightly
increased compared to that of the previous year. The economic
benefits herein include profits on the actual sale of valuable
resources and the amount of cost savings and are not basedon estimated economic benefits.

In FY 2009, investment for environmental-related systems
was spent on atmosphere treatment and effluent treatment
efforts, mainly for pollution control programs. Not only werecosts for waste treatment and disposal increased, so were
the waste generation amounts; however, thanks to successful

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

Funding for Security and Disaster Prevention Measures
The FY 2009 funding for our security and disaster prevention
measures was 53 million yen. This funding was mainly allocatedto explosion, fire, and leak prevention measures; occupationalsafety and working environment improvement measures; andmitigation measures for aging facilities.

What Does It Mean??
● Environmental Accounting

These accounting procedures allow a company to identify the cost of environmental conservation during thenormal course of business, identify benefits gained from such activities, provide the best possible means ofquantitative measurement (in monetary value or physical units) and support the communication of its results.

Environmental and Social Report 201022

Environmental and Safety Activities (RC Activities)

Operating Officer/Division
Manager of the Production
Control Division

Environmental AccountingGlobal Warming Prevention(Energy Conservation)

Environmental and Safety
Activities (RC Activities)

Air Pollutants Emission Control
Water Pollutants Discharge Control

Global Warming Prevention (Energy Conservation)
number of compressor units, etc.
For energy consumption per unit, we set our target at a
1% reduction compared to the previous year; our actual
achievement was a 5.2% reduction relative to the previous
year.
In order to accomplish our target, as a part of our “CostEco Activities,” we will put more emphasis on more energyefficient production practices.

In FY 2009, our energy consumption was 17,300 kl, which isa 12.6% reduction compared to that of the previous year. For
air pollutants emission results, we tried to achieve energyefficient operations; thanks to these efforts, NOx emissions anddust emissions were able to be reduced by 17.3% and 25.9%,
respectively, but regrettably, SOx emissions ended up higher
than the previous year. We will continue to pursue more energyefficient operations techniques.

NOx emissions: The increasing trend in the emissions (from FY
Changes in CO2 Emissions and Emission Index■Management■Production
Departments＊1
Departments(1,000t)

Energy Consumption (Crude Oil Equivalent) & Energy
Consumption Index

GHG Emissions
Index＊2

70

1.40

60

1.20

50

1.00

(1,000kl)

Energy Consumption
Index＊3

30

1.50

25

1.25

20

1.00

15

0.75

30

10

0.50

20

0.20

5

0.25

0.00
09 (FY)

0

0.40

10

90

00

01

02

03

04

05

06

07

08

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

00

01

02

03

04

05

06

07

08

0.00
09 (FY)＊3 A ratio of Energy Consumption Index of the year to that of FY 1990 (=1.00)●Efforts to Reduce Environmental Impacts
Each of our plants has received environmental ISO
accreditation. They have been making efforts to reduce
environmental impacts while setting their environmental targets
and are devoted to promoting their RC activities.
The Cost Reduction Promotion Department has been engaged
in rechecking and reviewing all production processes andsystems in cooperation with the members of each plant. The
department is devoted to reducing CO 2 emissions, VOC
emissions, and other environmental impacts created by ourbusiness activities through a series of approaches (finding aproblem, developing preventive measures, and implementing
the measures to solve the problem).

350
300
250
200
150
100
50
0

90

00

01

（t）

（t）

200

16

02

03

04

05

06

07

08

09 (FY)

02

03

04

05

06

07

08

09 (FY)

14
12
10
100

90

400

Dust emissions

150

0.60

（t）

450

NOx emissions

0.80

40

0

■Energy
Consumption2004) resulted from the introduction of cogeneration 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.

SOx emissions

8
6

50

4
2

0

90

00

01

02

03

04

05

06

07

08

09 (FY)

0

90

00

01

Water Pollutants Discharge Control

Members of the Cost Reduction Promotion Dept & Ohgata Branch

In FY 2009, the discharge amount of water pollutants increased
due to the increase in production of specific products that
require a washing process, thereby resulting in an increase inboth drainage volume of discharge water and COD load.

We will continue to make efforts to reduce the discharge
amount and COD load by improving our production processes
and improving/retrofitting our effluent treatment facilities.

Discharge Water AmountCOD Discharge Amount(1,000m3)

（t）

3,500

140

3,000

120

2,500

100

2,000

80

1,500

60

1,000

40

500

20

What Does It Mean??
● IPCCIPCC is an abbreviation for Intergovernmental Panel on Climate Change as defined by the UN. IPCC is an expert bodythat was established by the World Meteorological Organization (WMO) and the United Nations Environment Programme(UNEP) in 1988, with the main objective of providing scientific assessment criteria in relation to human-induced climatechange. This panel is mainly working on the summarization and assessment of scientific findings on global warming andhas been releasing an Assessment Report every few years. The report is being used as the basis for each country toproceed with their measures to control global warming.

23

Environmental and Social Report 2010

0

0
90

00

01

02

03

04

05

06

07

08

09 (FY)

90

00

01

02

03

04

05

06

07

08

Environmental and Social Report 2010

09 (FY)

24

Environmental and Safety Activities (RC Activities)

In FY 2009, CO 2 emissions decreased by 13.4% relative
to the previous year, which may have resulted from theeffect of our energy-saving measures and a decrease inproduction amounts due to the depressed economy at thetime. This value corresponds to a 55% reduction comparedto that of FY 1990. For the purpose of reducing our energy
consumption, we took various energy-saving measures
including conversion to energy-saving belts, controlling the

Air Pollutants Emission Control

Environmental and Safety
Activities (RC Activities)

Eﬀorts to Reduce Emissions ofChemical Substances (PRTR)
Eﬀorts to Reduce Waste

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.
■Air

■Water Area40

the final disposal amount of FY 2009 was 498 tons, which
remains on the same level as in the previous year, FY 2008.
However, this amount corresponds to a 71% reduction relative
to FY 1990.
FY 2009’s results in final disposal rate ended up with 5%.
We will strive to achieve our FY 2010 target through continual
efforts to reduce waste generation as well as decrease the final
disposal rate by reviewing our waste disposal techniques.

Our FY 2010 target in our waste reduction activities is to reduce
FY 2010’s final disposal amount of wastes by 80% comparedto that of FY 1990. In FY 2009, we struggled to achieve a
5% reduction of the final disposal amount of wastes relative
to the previous year. Although we tried to reduce the final
disposal amount through the promotion of waste segregation,or recycling by changing disposal techniques, the waste
generation amount was 15.1% higher than in the previous year;30
20Internal Disposal

External Disposal

10

02

03

04

05

06

07

08

Internal Waste Reductions

External Waste Reductions(not included in total amount)

935 t
9.4%

09 (FY)

Emissions of PRTR Law-Designated Substances
substances. As a result of this year’s revision of the PRTR Law, thenumber of notification substances has increased. Through changes
in production techniques and improvement of our facilities, we will
make continuous efforts to reduce emissions/discharge of PRTR
substances into the environment.

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

Emissions to
Air

Name of Substance

Discharge to
Water

Emissions to
Soil

Waste Transfer
Amount2

Acrylamide

0.00

0.00

0.00

0.02

3

Acrylic acid

0.03

0.00

0.00

0.29

16

2-aminoethanol

0.00

0.00

0.00

0.05

24

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

0.00

0.06

0.00

0.26

25

Antimony and its compounds

0.00

0.00

0.00

0.04

40

Ethylbenzene

0.05

0.00

0.00

0.79

42

Ethylene oxide

0.46

0.00

0.00

0.00

43

Ethylene glycol

0.00

0.77

0.00

0.07

56

1,2-epoxy propane (or “Propylene oxide”)

5.10

0.00

0.00

0.00

63

Xylene

0.03

0.00

0.00

0.53

96

Chloromethane (or “Methyl chloride”)

0.77

0.00

0.00

0.00

113

1,4-dioxane

0.00

0.02

0.00

0.34

181

Thiourea

0.00

0.00

0.00

0.04

197

Decabromodiphenyl ether

0.00

0.00

0.00

0.15

207

Copper salts (water-soluble, except complex salts)

0.00

0.00

0.00

1.90

227

Toluene

7.30

0.00

0.00

28.00

270

Di-n-butyl phthalate

0.00

0.00

0.00

0.03

297

Benzyl chloride

0.02

0.00

0.00

1.70

307

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

0.00

0.08

0.00

1.12

308

Poly(oxyethylene) octylphenyl ether

0.00

0.00

0.00

0.11

309

Poly(oxyethylene) nonylphenyl ether

0.00

0.00

0.00

0.32

314

Methacrylic acid

0.00

0.00

0.00

0.02

338

Tolylene diisocyanate

0.00

0.00

0.00

0.12

Others (substances of which emissions/discharge or transfer
amount was less than 0.01t)

0.00

0.00

0.00

0.02

Total

13.76

0.93

0.00

35.92

25

Environmental and Social Report 2010

External Recycling Amount

9.912 t100%

8.479 t85.6%
Internal Landfill
Disposal AmountExternal Final
Disposal Amount

0t
0%

498 t
5.0%

Changes in Waste Amount & External Recycling Rate
25,000100

22,50090

20,00080

17,50070

15,00060

12,50050

10,000

40

7,500

30

5,000

20

2,500

10

0
90

■Generated Waste
Amount

00

01

02

03

■External Recycling
Amount04

05

06■External Final Disposal
Amount07

08

09 (FY)

0

External Recycling
Rate

Environment-related Complaints

PCB (Polychlorinated Biphenyl)
In our company, in accordance with the Law Concerning Special
Measures against PCB Waste, the designated capacitors and/ortransformers are properly stored and controlled.
We have already applied for JESCO’s early registration

Generated Waste Amount(t/year)Waste Amount (t )In FY 2009, there were 40 notification substances in total. The total
amount of emissions/discharge into the air, water, and soil was
13.76 tons, 0.93 tons, and 0 tons, respectively. The waste transfer
amount was 35.92 tons, which decreased by 58.5% compared tothe previous year due to the use of substitutes for the notification

system; our high voltage transformers and capacitors havebeen gradually disposed of since FY 2010. We will promote
the proper storage and control of “low concentration PCBs”
contained in small capacitors, ballasts, etc.

During FY 2009, we received four environment-related complaints-one for odor, one for water quality, and the other two for noiseproblems. We took emergency measures and recurrence-prevention measures in each case.

Environmental and Social Report 2010

26

Environmental and Safety Activities (RC Activities)

0

External Recycling Rate (% )PRTR-Designated Substances Emission
into Environment

Emissions /Discharges (t)Eﬀorts to Reduce Emissions of Chemical Substances (PRTR)

Eﬀorts to Reduce Waste

Environmental and Safety
Activities (RC Activities)

Eﬀorts in Occupational Safety
Eﬀorts in Transport Safety

Eﬀorts in Occupational Safety
We recognize that ensuring security is the foundation for effective
management and plays a fundamental role in any businessactivity. Taking safety first and the respect of human life anddignity as our basis, we have been making efforts to eradicate
occupational accidents. Further, in order to ensure a safe andcomfortable working environment, we have been promoting“5S” activities (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke inJapanese) (i.e., housekeeping, workplace organization, cleanup,
maintaining cleanliness, and discipline in English).
Regrettably, in FY 2009, we had one “days away from work”
case and, therefore, failed to continue our company No
Accident Record streak.

Eﬀorts in Transport Safety

For the case study of accidents, after analyzing the cause of
the accident, we try to laterally disseminate the findings andsolutions throughout all sectors and departments to prevent asimilar 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. Because of our aim of achieving a
No Accident Record, we have been continuously conducting
various activities such as hazard anticipation, “SHISA KOSHO”(making large gestures and shouting out the status), riskassessment activities, and 5S activities.

Industrial Accident Frequency Rate (AFR) & Industrial Accident Severity Rate (ASR) (From January 1 to December 31, 2009)
Changes in our AFR and ASR since 1995 are given in the tables below, relative to those in the chemical industry.
* 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
Frequency Rate

4.0

Dai-ichi Kogyo Seiyaku
Chemical Industry

3.5

Industrial Accident Severity Rate
Severity Rate

0.25

Dai-ichi Kogyo Seiyaku
Chemical Industry

2.5

Items

Freight Volume

FY 2009

31,080,000 ton-kilometers- 5.1％

Energy Consumption
Energy Consumption Per Unit

Comparison to the Previous Year

47,000 GJ- 6.4％

387 liters/10 thousands ton-kilometers- 1.3％

3,153t − CO2- 6.4％

Improved Ton-Kilometer method

0.15“Yellow Card” & “Container Yellow Card” Systems
0.10

1.5
1.0

0.05

0.5
0.0

0.00
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 (FY)

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.

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 (FY)
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
We have been putting into practice “5S” (Seiri, Seiton, Seiso,
Seiketsu, and Shitsuke) activities, the purpose of whichis to ensure security, ensure product quality (preventionof complaints or troubles), and to improve our business
operations. In these activities, our employees make a selfevaluation of how well their activities are going while the 5Scommittee provides its own assessment of the same aspect.
We have been making efforts to ensure that implementation of
the “5S” activities can be continuously maintained.
Although the starting point of the “5S” activities differs for each of
our plants, participation in these activities is currently compulsory
for all plant members. A small group is organized at each
workplace where the group members will set their objectives tobe achieved in relation to these “5S” activities.
In order for the “5S” activities not to be slowed down, the head ofeach production branch andeach department/section willconduct periodic assessmentof their group’s progress. In
addition to such assessment,
committee meetings are held
to provide opportunities forsharing useful informationand experiences and for thehorizontal spread of the “5S” Yokkaichi Branch
activities. At the heads meetings, each group will present their
specific practices and items to be improved within the frameworkof the “5S” activities and the head of each department/plant
will examine each group’s objectives in relation to these “5S”
activities.

What Does It Mean??
● Risk Assessment Activities

Risk assessment activities are activities that use a method to detect latent risks or hazards in the workplace. The“Guidelines on Occupational Safety and Health Management System (Japan’s MHLW Notification)” stipulate safety
management mechanisms to improve occupational safety and health levels by reducing potential hazards that could
cause occupational accidents in the workplace and promoting not only the good health of workers but also the creationof a comfortable working environment. As of and after April 1, 2006, under Article 28-2 of the Industrial Safety and
Health Law, practicing such mechanisms is specified as a duty of best efforts.

Environmental and Social Report 2010

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 beenworking on developing a label-type Container Yellow Cardsystem, which facilitates the sharing of safety information of achemical substance by indicating the Emergency Response
Guidebook (ERG) number and UN number on the Container
Yellow Card label.

Safety in Transport & Environmental Impact Reduction
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 useful tools to provide
not only all available information but also proper education andinstruction for our logistics partners: “Safe Driving and Maintenanceof Traffic Order,” “Revised Laws and Regulations,” “Safety andEnvironmental Standards for Delivery Services,” “For Professional
Drivers,” and “Transport Specifications.” In addition, we haveenvironmental impact activities in common with our logistics partners

and are continuing to pursue better results year by 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 byrail and by sea;
3) Maintaining our emergency network system duringtransportation; and4) Instilling a strong commitment to compliance in our employees.

What Does It Mean??
● Calculation of Energy Consumption with the Improved Ton-Kilo Method

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:
Energy Consumption =[GJ]Transportation Ton-kilometer ×[Ton-Kilometers]

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

×

1
1000

× Unit Calorific Value[GJl/ Kiloliter]

Environmental and Social Report 201028

Environmental and Safety Activities (RC Activities)

2.0

27

in modal shift, our energy consumption per unit figures in FY
2009 were improved by 1.3%, whereas our GHG emissions
in FY 2009 were 3,153 tons-CO2, which is a 6.4% reduction
compared to the previous year.
Environmental impact reduction in logistic sectors plays animportant role not only in the aspect of global warming, but alsoin effects on air pollution and/or waste generation. In this fiscal
year, we have been devoted to further acceleration in modal shift,
to improvement of carrying capacity for reserved vehicles, andto reduction of return shipping events. Through these activities,
we have been making efforts to achieve a 1% improvement in ourenergy consumption per unit compared to the previous year.

Environmental Impacts to be Reported as a Specified Shipper

CO2 Emissions

0.20

3.0

In order to alleviate security and environmental risks intransportation 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 challenges of reducing
environmental impacts. Although our logistics operations arecontracted out to logistics partners, due to the acceleration

On-Site Report

Yokkaichi Branch
Ohgata Branch
Shiga Branch

Yokkaichi Branch (Production site)

Shiga Branch (Production site)

Located in the coastal area of the northwestern Mie Prefecture, ourYokkaichi Branch is blessed with natural surroundings that include thelush, green Suzuka Mountain Range, and the water-filled Kiso ThreeRivers 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 and continue to
implement environmental conservation practices.
In FY 2009, we were engaged in various energy efficiency activities,
which resulted in at least a 1% reduction in specific energy consumption(for steam and power production) compared to that of the previous year.
Yokkaichi Branch has adopted as its FY 2010 motto, “Ubiquity of CostEco Activities.” In order to promote further reduction of environmental
impacts, we will continue to implement energy-efficient practices andpollution preventing measures, including waste reduction and recycling
promotion. Yokkaichi Branch will be devoted to improving the natural andsocial environment while fostering communication with local communities.

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
our business 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 made various environmental conservation efforts. Examples
of such efforts include the introduction of a cogeneration system, air pollution
reduction through fuel conversion in boilers, installation of deodorizing
systems, and renovation of our effluent treatment facilities.
In addition, our zero emission approach allowed for recycling ofspecific wastes, thereby resulting in significant reduction in final
disposal. Shiga Branch will be devoted to further improving the naturaland social environment while emphasizing compliance with stringent
environmental requirements.

SHIMIZU Koji,
Branch Manager of
Yokkaichi Branch

Item/ YearSOx emissions (t)Panoramic View of Yokkaichi Branch

FY 2008

FY 2009

Actual Performance

Actual Performance

2.4

3.1

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

NOx emissions (t)

4.4

3.5

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

Area of the Site: 17,647m

Dust emissions (t)

0.1

0.1

Area of the Site: 105,581m2

536.6

514.8

COD emissions (t)

4.6

3.9

CO2 emissions (1,000t)

5.6

5.4

5,510.3

6,075.0

48.3

9.4

Discharge of drainage water (1,000m3)

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

Waste generation (t)Amount for final disposal (t)On March 22, 2010, we again signed a pollution preventive agreementwith Yokkaichi City.

Panoramic View of Shiga Branch

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)FY 2008

FY 2009

Actual Performance

Actual PerformanceSOx emissions (t)0.9NOx emissions (t)

9.1

9.1

Dust emissions (t)

0.6

0.5

0.8

1,029.0

1,783.0

COD emissions (t)

5.3

10.4

CO2 emissions (1,000t)

12.5

11.2

2,269.7

2,164.0

47.1

10.4

Discharge of drainage water (1,000m3)

Waste generation (t)Amount for final disposal (t)TOPICS

Ohgata Branch (Production site)
Endowed with lush green natural surroundings, our Ohgata Branch issituated 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, water-dispersed polyurethanes,
various surfactants, and inorganic materials. We have been engaged
in all of our activities with the following philosophy in mind: “Throughout
the entire lifecycle of our products from development to disposal,
we will pay special attention to both human safety and health andenvironmental preservation and also contribute to sustainable
development and the realization of an affluent society.”
In recent years, we have made efforts to promote greater use ofenergy conversion and implement waste reduction practices.
Ohgata Branch will continue to actively participate in environmental
conservation energy programs and energy-saving activities, whilelooking forward to the realization of a more livable planet and aspiritually affluent society.

Branch Manager of
Shiga Branch

Promotion of RC Activities by Overseas Affiliates
Tianjin Dai-ichi Fine Chemicals Co., Ltd.
Our overseas affiliates have also acquired ISO certifications
and are devoted to the conduct of their RC activities.
Established in Tianjin
City in 1992, Tianjin Daiichi Fine Chemicals
Co., Ltd. is one of ouroverseas companies,
which mainly specializes
in manufacturing textile
Tianjin Dai-ichi Fine Chemicals Co., Ltd.
chemicals.

●

YAMADA Megumi,
Branch Manager ofOhgata Branch

Panoramic View of Ohgata Branch

Status of Our RC Activities
During the period from September 2006 to December 2009, we published our “Environmentrelated Management Suggestions,” a document composed of 15 categories including recyclable
use of cooling water and introduction of solar water heaters. Thanks
to putting these suggestions into practice, we have achieved ourtarget values in energy saving and emission reduction. In May
2010, we also published our “Environmental Information Report,”
which provides information about the progress and status of ourRC activities. We are a member of TEDA* Environmental Protection(TEDA EP); in April 2010, we were commended by the TEDA EP as
an “Environment and CSR Committed Company.”
Environmental●*TEDA: Tianjin Economic Development Area

Information Report

ISO Accreditation Status of Our Overseas Affiliates

Item/ Year

FY 2008
Actual Performance

Overseas Affiliates

Establishment Year

Site Location

FY 2009

Chin Yee Chemical Industries Co., Ltd.

1978

Taipei, Taiwan

First Year of ISO 9001 Accreditation First Year of ISO 14001 Accreditation
2002

2006

Actual Performance

Tianjin Dai-ichi Fine Chemicals Co., Ltd.

1992

Tianjin, China

2001

2006

PT. Dai-ichi Kimia Raya

1996

Java, Indonesia

2003

−

Address: 230 Saigata, Ohgata-ku, Joetsu City, Niigata Pref.

SOx emissions (t)

6.5

6.7

Area of the Site: 87,116m2

NOx emissions (t)

119.7

97.9

Dust emissions (t)

2.0

1.5

Discharge of drainage water (1,000m3)

474.4

413.2

Editor’s Postscript

COD emissions (t)

28.9

49.8

CO2 emissions (1,000t)

23.7

19.5

Waste generation (t)718.2

1,595.1

Amount for final disposal (t)

399.0

469.0

With our company’s CSR view in mind, we have prepared this report as a tool for transmitting information about our environmental
and social responsibility activities. Based on our triple bottom line, we tried to make our report clearer and easily readable. By further
deepening CSR initiatives, we will keep trying our best to offer you, our stakeholders, more substantial reports that can serve as a useful
tool for promoting communication. We welcome any opinions and requests you may have.
Our Shiga Branch location is blessed with a stunning view of Lake Biwa, which has abundant water and outstanding richness inbiodiversity. For that reason, we decided to use a picture of the lake as the front cover of this report.

Main Products:
CMC (CELLOGEN, DKS FINE GUM), water- dispersed
polyurethane (SUPERFLEX, ELASTRON), polyvinyl pyrrolidone(PITZCOL), industrial detergents (GEMBU)MAYUZUMI Tominobu General Manager of the Environment, Safety & Quality Affairs Department

29

Environmental and Social Report 2010

Environmental and Social Report 201030

On-Site Report

2

KAWAMOTO Wataru,

For inquiries about this document, please contact:

Environment, Safety & Quality Aﬀairs Department

Dai-ichi Kogyo Seiyaku Co., Ltd.
5 Ogawara-cho, Kisshoin, Minami-ku, Kyoto 601-8391 Japan
TEL: +81-75-326-7553 FAX: +81-75-326-7552

www.dks-web.co.jp
Published in September 2010.
The next issue will be published in September 2011.

This publication is eco-friendly, printed with soy ink
and waterless offset, and bound with no staples.