Environmental and Social Report

2013

Technologies to pass our global environment down to future generations.

Our "chemistry to respond to people's needs"●Surfactant Business

Surfactants, which have played a pivotal
role from the starting point of our company,
are used in a wide variety of industrial
fields, such as rubbers, plastics, colorants,
machines/metals, cosmetics/human-life
related industries, paper/pulp, fiber,
agrochemicals/agricultural materials, civilengineering, and energy-related industries.

●Amenity Material BusinessOur amenity material business has been
supplying not only various materials used
to improve the amenities within our living
environment, such as sucrose fatty acid
esters, sodium carboxymethyl cellulose,
and polyvinylpyrrolidone, but also theperipheral applied technologies. They
are widely used in many fields
surrounding our daily life including foods,
pharmaceuticals and cosmetics, andfishery/livestock industries.

To soundly
preserve the global
environment●Polyurethane BusinessTo securesecurity andreassurance
in life

Functional Chemicals Business Division
Plastic Materials Business Division
Electronic Materials Business Division

Because they change themselves from aliquid to a solid state via an appropriate
reaction process or process technique,polyurethane resins are used in manyindustrial materials, such as urethanefoam, elastomer, paints, adhesives,
artificial leather, civil engineering andbuilding materials, and electricalinsulating materials. Our company’s
polyurethane resins can serve as the raw
material for many urethane products.

●Functional Material Business

To realize
convenience andaffluencein society

1

Environmental and Social Report 2013

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

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

Our
company
motto

Contributing to the nation and society through industry.

Our
company
credo

Quality First / Cost Reduction / R&D Efforts

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

Environmental and Social Report 2013: Editorial Policy

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

3

About US
Company Overview …………………………………… 4
Medium-term management plan "Change 100 Plan"…… 5
Our Products Useful in Daily Life ……………………… 7
Environmentally Friendly Products & Technological Development … 9
Selected Products ……………………………………… 10
Promoting Environmental & Social Activities
For CSR promotion / Corporate Governance…………… 11
Compliance / Internal Control / Risk Management …… 12
Environmental and Safety Activities (RC Activities)
Basic Philosophy, Basic Policies, and Corporate Principles for Environmental and Safety Practices … 13
RC Promotion System/Management System ………… 14
Targets and Performance ……………………………… 15
Environmental Accounting ……………………………… 16
Global Warming Prevention (Energy Conservation) …… 17
Efforts to Reduce Emissions of Chemical Substances … 18
Efforts to Reduce Waste ………………………………… 19
Chemical Substance Management ..…………………… 20
Efforts to Occupational Safety ………………………… 21
Efforts to Process Safety and Disaster Prevention ..…… 22
Social Activities
Information Transmission Tools ……………………… 23
Relations with Society & Local Communities ………… 24
Relations with Our Customers & Business Partners…… 26
Relations with Our Shareholders & Investors ………… 28
Relations with Our Employees ………………………… 29
On-Site Report
Yokkaichi Branch / Ohgata Branch ………………… 33/34
Shiga Branch / Yokkaichi Chemical Company Limited … 35/36
KYOTO ELEX CO., LTD./DAI-ICHI CERAMO Co., Ltd./Elexcel Corporation … 37
P.T. DAI-ICHI KIMIA RAYA/Chin Yee Chemical Industries, Co., Ltd./Shuang Yi Li (Tianjin) New Energy Co., Ltd. … 38
Posted on the website The emission amount of notification substances under the PRTR Law in FY2012 … 39

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

A Summary of Dai-ichi Kogyo Seiyaku’s Environmental and Social Report
Organizations Covered by this Report
Dai-ichi Kogyo Seiyaku
Head Office, Laboratory, Tokyo Head office, Osaka
Branch, Nagoya Branch, Kyushu Branch, Yokkaichi
Branch, Ohgata Branch, and Shiga Branch
National Affiliates (*: located within the premises of Dai-ichi Kogyo Seiyaku)
Yokkaichi Chemical Company Limited
Gembu Co., Ltd.*DAI-ICHI KENKOU CO., Ltd.*DAI-ICHI CLEAN CHEMICAL, INC.*
DAI-ICHI CERAMO Co., Ltd.*KYOTO ELEX CO., LTD.
Elexcel Corporation
SUZAKU MICHI Co., Ltd．
In the description related to our performance, we use thefollowing definition and distinguish between "Dai-ichi Kogyo
Seiyaku" and "Dai-ichi Kogyo Seiyaku Group."Dai-ichi Kogyo Seiyaku: Dai-ichi Kogyo Seiyaku and national
affiliates located within the premises of Dai-ichi Kogyo
Seiyaku
Dai-ichi Kogyo Seiyaku Group: Dai-ichi Kogyo Seiyaku and allnational affiliates
Period Covered by this Report
Essentially, this report contains our activities and data forfiscal year 2012 (from April 1, 2012 to March 31, 2013).
The data on Industrial Accident Severity Rate (ASR) andIndustrial Accident Frequency Rate (AFR) were obtained fromJanuary to December 2012. Note that this report in partcontains descriptions after April 2013.
Reference Guidelines"Environmental Reporting Guideline 2012"/"Environmental
Accounting Guideline 2005" from the Ministry of the Environment"Environmental Accounting Guideline for Chemical Industries(November 2003)" from the Japan Chemical Industry
Association (JCIA)

Environmental and Social Report 20132

Message from the President

Implement the approach to "chemistry to respond to people's needs,"
and contribute to the realization of a sustainable society through our business practices.
In FY2012, the first year of the medium-term management
plan: "Change 100 Plan" stage II, we faced a lot of difficult
problems to be solved as a company under severe
economy conditions, such as the debt problem in Europe,
decelerated business conditions in China, prolonged
stagnation of demands, and deflation. Especially, we werein a tough situation in terms of sales expansion, however,
we attempted to expand sales of the core product businessin our group, and have been devoted to development of a
new market and new materials, securing of appropriate
profit margins, and reduction of total expenses, mainly in
the growing fields, such as "environment," "energy,""electronic materials," and "life materials."Though the economy in Japan shows bright signs on the
background of the economic policy effects, domestic large
expansion of demands is hardly expected, and the price ofraw materials and fuels still remains at high levels while
showing wild ups and downs. Under such circumstances,
our management environment is still in a tough situation.
On the understanding of such a situation, we think we haveto continue our motivation to reform, improve, and makeefforts precisely in the second year of stage II based on"change" of consciousness to assign the highest priority tocosts, which was established in stage I.

"Change 100 Plan" Stage II -- Based on achievements,
stepping into the future and beyond
Our corporate group started stage II of the three-year"Change 100 Plan" in April, 2012 on the axis of "Expansion
Accompanied by Earnings." "Getting ahead of the times as
a leading chemical manufacturer that offers industrial
chemicals," through accomplishment of this management
vision, we intend to walk the paths of continuation andprogress, which is regarded as our mission, and aim atattaining our goal while interpreting global trends. We
regard this management plan as the milestone on the roadto company image in 2025, and reveal plans based on along-range perspective. According to one of the plans, wechanged the Tokyo Branch to Tokyo Head Office in
October, 2012. This is meant to improve the base status
while enhancing it as the sales base and unifying thepurchasing practice, fully develop the selling policy by top
management, and produce a group synergy driven on thetwo wheels of our Tokyo and Kyoto Head O ff i c e s .
Furthermore, our especially important agenda to be
implemented is the Yokkaichi district production baserealignment plan. In March, 2013, we launched the
Yokkaichi district base realignment plan which aims at
acquiring new land in the Yokkaichi City Kasumi district andconstructing a new plant in the next five years. When we
set the year of 2025 to one mark, we think the first step is toenhance our domestic bases, and the next is to leap

overseas. Our current conclusion is to first build up thestrong foundation in "Yokkaichi" as the cornerstone of our
growth, and secure practical accomplishments in Japan inorder to create a determined pace.

■Introduction of a system to strategically control all operations
In addition to maintenance and restructuring of ourdomestic bases, in order to enhance overseas operation in
our next step, we set up a department to control marketing
mainly based overseas in April, 2013. Furthermore, we
integrated production technology and sales sectors that
pursue optimization of our group, and also changed theorganization with federated functions activated by crossing
through various businesses promoted by each department.
We think it difficult to achieve the goals we have set in the
management plan if we proceed with traditional andconventional ways of thinking. We will reverse our way of
thinking and actions, and make our efforts to completely
accomplish our plan with the key phrase, "breaking theshell."

Management to Enhance Further Thoroughness ofCompliance
We established our Code of Corporate Ethics in 2004. In
this code, we declare that each of our employees willobserve all legal regulations and international rules andobey the spirit thereof, respect cultures and customs ineach country and region where we conduct businessactivities, and behave in a socially sensible manner. We
also established a Compliance Control Committee. This
committee has been engaged in establishing our own
compliance system and performing multiple activities,
including employee education and preparation of relevant
regulations, in order to instill compliance practices within
our company. We will continue transparent and healthy
management in order for the company to continue being
trusted by our stakeholders and with a high entity, as wellas in order to continue as a company where all employees
conduct fair and healthy business activities as members ofsociety.

■Continuous Efforts on RC (Responsible Care) activities
We joined the Japan Responsible Care (RC) Committee in
1998, and since then have strongly promoted independent
RC activities in order to gain a reputation for higher
reliability within society through approaches to global
environmental problems, chemical substance control, anddialogue. In FY2012 we promoted energy conservation
especially on a company-wide basis, and provided aproper response to the revised Water Pollution Control Law.
We will make continuous efforts not only to achieve ourenvironmental goals, but also to utilize renewable energy
by introducing electric power facilities that use methanegas obtained as a by-product of wastewater anaerobic
disposal, as well as security and accident prevention
measures.
We encourage you to look over this summary of ouractivities in FY2012 titled "Environmental and Social Report2013." We hope this report will help you to deepen yourunderstanding of our company. We would appreciate andwelcome any and all straightforward opinions and reviews.
Sincerely yours,

August, 2013
OYANAGI Masatoshi, Ph.D.
President

3

Environmental and Social Report 2013

About US

About US

Getting Ahead of the Times of Chemistry
Get
7KHPHGLXPWHUPPDQDJHPHQWSODQ&KDQJH3ODQVWDUWHGLQWKH\HDURIWKHWKDQQLYHUVDU\RIWKHFRPSDQ\·VIRXQGDWLRQWe devote our efforts to converting the corporate culture, and proceeding towards expansion of our business while maintaining our
EXVLQHVVTXDOLW\Medium-term management plan "Change 100 Plan"
Stage Ⅱ –Expansion Accompanied by Earnings–(from April 2012 to March 2015)

Management Vision

We "get ahead of the times as a leading chemical manufacturer that offers industrial chemicals," and realize the company motto"Contributing to the nation and society through industry." We take responsibility in product innovation and progress through theage of globalization.
We interpret global trends, and walk the way of continuation and progress according to our company credo of "Quality First,
Cost Reduction, R&D Efforts."
In the mature society of advanced countries, we set our sights on purification maintenance of global environment, andconversion fields to recyclable or natural energy.
Looking over the developing society of emerging countries, we pursue our business opportunities under similar geographicalconditions as those in China, India, and ASEAN countries that represent the said countries.
Based on the solutions of our own development ability and technology, we implement the approach to "chemistry to respondto people's needs," and realize a company image generating from Kyoto, to the world, and to the future.

Management Policies

Numerical Targets

We maintain the quality of business contents we have secured inStage Ⅰ, and move forward on expansion of our business.
(1) Expanding into the peripheral fields
We enhance increase of sales by horizontal development anddeep digging to expand the peripheral fields of "current
products, technology, and customers."(2) Replenishing and revitalizing the production bases inJapan
We devote our efforts on the securing of and the replenishingof new production bases and build the foundation of
expansion and growth.
(3) Speeding up creation of new businesses
We create new business and invest facilities for our futurebusiness portfolio.
(4) Pursuing cost minimization
We promote activities on improvement of thoroughproductivity and new cost minimization.
(5) Enhancing management and fostering human resources
We foster human resources through the DKS Productive
Maintenance, and put our efforts on enhancement ofmanagement ability in Japan and overseas.
(6) Strengthening overseas operations
We strengthen development and management in China andAsian regions, and have started to new expansion ofbusiness.

Performance in
FY2012

Target in
FY2014

Consolidated Net
SalesELOOLRQ\HQ

75 billion yen

Consolidated
Operating Margin
on Sales





Per Capita SalesPLOOLRQ\HQ

70 million yen

Cost of Sales Ratio



SG&A Expense Ratio



PRQWKVPRQWKVInventory
Turnover Period

Expansion Accompanied by Earnings
2025
Medium-termManagement
Plan

Mega Trend
$VLDUHJLRQJURZWKRI
population, increase of income
$GYDQFHGFRXQWULHVUHF\FOHG
natural energy

DKS's Business Chance)RXUVWUDWHJ\ILHOGV"Environment" "Energy" "Electronic
Materials""Life Materials"
)XOILOOPHQWDQGUHJHQHUDWLRQRIGRPHVWLF
and overseas production bases
$VLDUHJLRQ&KLQD,QGRQHVLD

Recognition of
Our Possible Risk
'LVUXSWLRQRIVXSSO\FKDLQE\natural disasters)LQDQFHPRQH\DQGEDQNLQJ
exchange-rate fluctuations

We approach the company's progression with the viewpoints of "5W1H plus 1." We execute the points of Why (management
vision), What (management policies), When (periodical index), Where (each department), Who (a person in charge), How, andHow Much, and make efforts to accomplish our targets.
▼
For the overview of the "Change 100 Plan," please see our company's website (http://www.dks-web.co.jp).
Environmental and Social Report 20134

About US

Making Efforts on Environmental and Social Activities
2XUFRPSDQ\KDVEHHQDFWLYHO\PDNLQJHIIRUWVRQHQYLURQPHQWDODQGVRFLDODFWLYLWLHVVLQFHWKHFRPSDQ\·VHVWDEOLVKPHQW:HUHFHLYHGDFRPPHQGDWLRQIURPRXWVLGHRUJDQL]DWLRQVDQGRXUDFWLYLWLHVKDYHDWWDLQHGKLJKUHSXWDWLRQ

Company Overview
Overview

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

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

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

7.1 billion and 41.7 million yen*

Number of Employees: 979 persons (consolidated)*
526 persons (non-consolidated)*

Main Products

Surfactants

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

Amenity Materials

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

Polyurethane
Materials

Polyether polyol,
urethane prepolymer, urethane system

Functional
Materials

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

Electronic Device
Materials

Conductive paste for electronic components,
injection molding pellets,
functional inorganic materials(*as of the end of March 2013)

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

Head Office, Laboratory (in Kyoto Central Branch)z

Main BranchzzOsaka Officez

Nagoya Officez

Kyushu Officez

Yokkaichi Branchz

Ohgata BranchzShiga Branch

Sales by Business Segment (Consolidated)Tokyo Head OfficeElectronic
DeviceMaterials
14.3 %
Functional
Materials
18.6 %

Affiliatesz

Domestic: 9 companieszOverseas: 8 companies

37.6 %

51,843(Unit: million yen)

Polyurethane
Materials

Total: 17 companies

Surfactants

FY2012

16.3 %

Amenity
Materials
13.2 %

Management Index
Changes in Sales (million yen)
50,00046,52856,24951,84351,245

Changes in Current Profits (million yen)

44,35240,0002,000

30,0001,500

20,0001,000

10,000

500

0

08

09

11

10

Changes in Total Assets & Net Assets (million yen)
Total Assets

50,00040,00041,749

2,439

2,500

44,29147,741Net Assets

12 (FY)55,416

0

1,742
1,544
1,239

-28
08









1,936

1,863

2,010

2,273

1,500
14,438

16,94918,20010,000
0

5

08

09

Environmental and Social Report 201310

11

Ratio to Sales

12 (FY)

(%)

6

2,000

16,49812 (FY)

11

R&D Expense

2,500

15,31610

3,000

51,35730,00020,00009

Changes in R&D Expenses (million yen)



5

2,340

4
3

1,000

2

500

1

0

08

09

10

11

12 (FY)0About US

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

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

Environmental and Social Activities

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

'53 Published "MONOGEN Story"'54 Joined the 1st world surfactant
congress and business conventionon'66 Household synthetic detergents wererecompletely converted to LAS (soft type)ype)'68 Published "CELLOGEN Story"'72 Established "Pollution Prevention Rules"s"'51 The Japan Oil Chemists' Society (JOCS) is established'55 The Japan Oil & Fat Industry'59 The Ise Bay Typhoon'64 The Tokyo Olympic, The Tokaido Shinkansen(bullet train) goes into operation''70 14 bills related to the pollution prevention are passed''73 The first oil shock'75 Launched the industrial refresher "AIR CHEM"'75 Introduced a five-day-week systemm'78 Acquired capital in CHIN YEE CHEMICAL INDUSTRIES, CO., LTD. '83 Introduced chemical fire truckss'80 Launched the water-reducing agent for concrete "SELFLOW"in our Ohgata Plant
ory"y'84 Published "SUGAR ESTER Story"'82 Established DAI-ICHI CLEAN CHEMICAL, INC.

''78 The New Tokyo International Airport opens''79 The "Ordinance relating to the Prevention of Eutrophication in
Lake Biwa" is passed in the Shiga prefectural assembly,
The United States and China renew diplomatic relations''82 The Tohoku Shinkansen and Joetsu Shinkansen go into operation'86 Established KYOTO ELEX CO., LTD.
'87 Established K&D Fine Chemical Corporation'88 Established DAI-ICHI CERAMO Co., Ltd.
'89 Established DAI-ICHI KENKOU CO., Ltd.
'92 Established TIANJIN DAI-ICHI
FINE CHEMICALS CO., LTD.

'85 The world science exposition opens'86 The Equal Employment Opportunity Law is enacted'89 The consumption tax (3 %) is introduced
The Tokyo stock exchange price reaches
the highest (38,915 yen 87 sen)

Ohno Kungyokudo (at the time of establishment)

1925

1950

1975

1985

1995

'96 Established P.T. Dai-ichi
Kimia Raya

'96 Awarded the Ozone Protection
Award by the U.S. Environmental
Protection Agency'98 Joined the Japan
Responsible Care (RC)Council (JRCC)'95 The Great Hanshin-Awaji Earthquake (M7.3) occurs
The Product Liability Act (PL Act) is enacted'97 The Kyoto Protocol is adopted in COP3
'98 The Financial Services Agency is launched'99 The Europe's unified currency "Euro" is introduced(among 11 countries)'01 Merged Dai-ichi Kagaku Kogyo Co., Ltd.
and renamed Shiga Plant'02 Established Elexcel Corporation Ltd.
and CHIN YEE CHEMICAL TECHNOLOGIES (WUXI) CO., LTD.
'04 Established DKS (Shanghai) International Trading Co., Ltd.

'01 Established "Environmental Protection and Occupational Safety Rules"'02 Acquired ISO14001 authentication in all plants'03 Acquired ISO9001 authentication in all plants'03 Published the 1st Environment & Safety Report'04 Established Code of Corporate Ethics'04 Introduced the cogeneration and solar power
generation systems in the Ohgata Branch'01 Government ministries and agencies is reorganized
into one office and twelve ministries and agencies
The 9.11 terrorist attacks occur in the United States'03 The Tokyo stock exchange price reaches its
previous post-bubble low (7,606 yen 88 sen)
'04 The Niigata Chuetsu earthquake occurs (M6.8)'05 Established SHUANG YI LI (TIANJIN) NEW ENERGY CO., LTD.
'06 Constructed
a new laboratory inKisshoin and moved'09 Commemorated
the 100th anniversary ofLaboratory (at present)
the foundation'05 Established "Declaration of Action for Executives
and Employees"'06 Set up the internal audit department'07 Introduced the cogeneration systemin the Shiga Branch'08 Achieved no accident record for 3000 daysin the Ohgata Branch'05 The full deposit guarantee is removed, the Private
Information Protection Law is enacted'06 The Companies Act and amended Industrial
Safety and Health Act are enacted'07 The Niigata Chuetsu earthquake occurs (M6.8)'09 Influenza A (H1N1) breaks out and spreads
The Minister of Consumer Affairs is launched'11 Acquired the ownership of Yokkaichi Chemical Company
Issue of 100 year anniversary Company History Book

'10 Started approach of lecture delivery'11 Established the Senbon Training Institute'12 Achieved no accident record for 2000 days in the Yokkaichi Chemical Co., Ltd.

'10 The Shanghai International Expo opens'11 The Great East Japan Earthquake occurs (M9.0)
The U.S. dollar currency exchange rate reaches its highest value (75.54 yen)

Tianjin Dai-ichi (at present)

2000

2005

'89 Introduced the special
incentive leave systemy)'94 Established "PL (Product Liability)
Prevention Management Rules"

2010

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

06.02
07.05
07.05
07.06
07.12
08.02
09.03
11.03
11.08
13.03

Wins the "Safety Efforts Award" by the Japan Responsible Care (RC) Council (JRCC)
Wins the "Highest Award" for the 37th oil and fat industry article–The bio-plant concept towards the resource competition period–
Wins the industrial technology award for the 57th Osaka Industrial Research Association–Establishment and Industrialization of Compound Technology for Powder Injection Molding–Wins the "Award of the Association for Safety of Hazardous Materials
in Kanto Koshinetsu District" in 2007
Wins the "Commendation by the Commissioner of the Fire and Disaster Management Agency for a Company with Excellence Related to Hazardous Materials" in 2007
Wins the "Highest Award" for the article competition commemorating the 50th anniversary of establishment of Kyoto Industrial Association (2 articles)
Wins the "Special Award by the Review Board" for the 39th oil and fat industry article–The Green Tourism Business Proposed by the Oil and Fat Industry–
Wins the "Article Special Awards" as group for the 26th Beacon Users' Symposium research presentation
Receives a certificate of appreciation for participation in the "Environmental Study Business for Elementary School Students"
Receives a certificate of appreciation for contribution to development of the Red Cross business
Wins the "Article Awards" as group in 2013

Awardees

Organizers

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

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

Dai-ichi Ceramo Co., Ltd.*

Osaka Industrial Research Association

Ohgata Branch
Ohgata Branch
SYOUSU Takeshi NODA Toshiki
KITAGAWA Takashi
ARAI Takamitsu
YAMAMOTO Daigo
Dai-ichi Kogyo Seiyaku
Yokkaichi Branch
SUGIMOTO Toshinori, KIKUTA Manabu,
HIGASHIZAKI Tetsuya, KONO Michiyuki

Oil & Fat Industry Kaikan

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

Environmental and Social Report 20136

About US

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

Our Products Useful in Daily Life
Silicon wafer detergent●DK BE-CLEAR CW

1 Surfactant Business

2 Amenity Material Business■Non-ionic surfactant ■Anionic surfactant■Cationic surfactant■Amphoteric surfactant■Sucrose fatty acid ester ■Cellulose type polymer■Vinyl type polymer ■Acrylic acid type polymer

Conductive paste for solar cells●DD-1200C
Rigid polyurethane foam
for insulator material●DK POLYOL
Bed, cushion(Soft or semi-rigid polyurethane foam)●HIFLEX●DK FLEX
Optical sheets, Hard coating agent(Radocure resins)●NEW FRONTIER
Waterborne polyurethanes●ELASTRON
Flame retardants for plastics●PYROGUARD
Semiconductor sealant materials●Allyl glycidyl ethers
Sealing material for electric insulation(Gas water heater control units)●EIMFLEX
Polymerizable emulsifier(Paint)●HITENOL
Materials for cosmetics(Shampoo, rinse, hair gel)●NEO-HITENOL●CATIOGEN ●CREEJUS●Phenoxyethanol

Car seatbelts●ELASTRON
Epidermis material
for car interior●SUPERFLEX
Hybrid vehicle electric components(Resistant polyurethane resins)●EIMFLEX
Paint resin for cars
●SUPERFLEX
Tire rubber(Emulsion
polymerization emulsifier)●LAVELIN
7

Environmental and Social Report 2013

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

Food additives●DK ESTER●DK FOAMER ●CELLOGEN
Flame retardants for textile●PYROGUARDAbout US

3 Polyurethane Business

4 Functional Material Business 5 Electronic Device Material Business■Polyether polyol■Urethane system■Materials used for radcure resin■Water-borne urethane resin■Flame retardants■Amide-type lubricant, plastic additives■Urethane prepolymer

Detergent for linen
supply●LINEN FINE
Detergent for cleaning●FINE SHOT

Waterproof roofing material●POLYFLEX

Binder for
agrochemicals●CELLOGEN

Binders for rockconsolidation●GANBAN
Injection water-stop
material●POLYGROUT

Water reducing agent andfluidizer for concretes●SELFLOW■Conductive paste for electronic components■Injection molding pellets

Elastic pavement material●RUBBER STYTER

Spillage oil treatment agent●SEACLE

Heavy corrosionpreventing agent●PERMAGUARD

Feed additives for cultivation●CELLOGEN

Optical fiber connector●Zirconia compound
for ferrule

Buildings strengthening agent(Epoxy diluent)●EPOGOSEY
Environmental and Social Report 20138

About US

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

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

Our Product Line & Technology/Application

Functions & Features

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

Clean Energy

Lithium-ion battery
CELLBINDER Series

Binder for lithium-ion battery

DD-1200C Series

Conductive paste for solar cells (lead-free)

DK BE-CLEAR Series

Water-borne detergents

DK POLYOL 3000 Series

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

COLOURSOL CT-171D

Accelerating/leveling agents for polyester

NEW FRONTIER Series

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

Energy &DK SYSTEM NF Series

System for non-CFC rigid polyurethane form･insulator

Resource Saving

Anti-solidification agents for slag

Prevention
Halogen-free type

Energy Efficiency

Effective Resource Utilization
Extension of Life Span
Environmentally Responsive
Environmental
Protection and

VOC* Reduction

Prevention ofEnvironmental
Pollution
Reduction of Environmental Impacts
Removal of Contaminants

ELEXCEL IL Series

Ionic liquids/energy device materials

EIMFLEX Series

Polyurethane resins for electrical insulation･sealing material

NOIGEN TDS Series, NOIGEN XL Series

Nonionic surfactants/emulsifiers, cleaning agents

SUPERFLEX Series

Polyurethane water dispersions/paints, coating, binders

EIMFLEX WF Series

Waterborne polyurethanes for electric insulating･sealing material

ELASTRON/ELASTRON BN Series

Thermal-reactive polyurethane water dispersions, binders, adhesives

COLORCOAT Series

Solvent-free urethane paints･waterproof material

NEW FRONTIER Series

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

HITENOL KH Series

Polymerizable surfactants/emulsifiers for emulsion polymerization

SEACLE N-800

Spillage oil treatment agents for marine

DEOPELLET Series

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

Products Meeting Environmental Requirements

Superior Paste Coating and Stable Quality as Lithium-ion Battery Binder
Binder for lithium-ion battery/CELLBINDER series
Lithium-ion batteries (LiB) have advantages of high voltage and high energy density,and have become a popular power source for many electric and electronic devices
including cellular phones, laptop computers, digital cameras and video camcorders.
The applications of these batteries have also expanded to include electric vehicle
batteries. During the manufacturing of electrodes, which are components of LiB,CELLBINDER is used as waterborne binders to bind active materials on electrodesubstrates. Functioning as carbon paste thickener and dispersion stabilizer,
CELLBINDER is efficient in filtration processes, superior in binding properties andforming even coated layers on collectors, and contribute to stable quality.

Long-cultivated Surfactant Technologies Contribute to the Prevention of Marine Pollution
Spillage oil treatment agent for marine/SEACLE N-800
There has been a number of unexpected oil spills caused by ships at sea. SEACLE
N-800 is a spillage oil treatment agent that has been type approved (type approval
number P-282) based on the stipulations of the ｢Act on Prevention of Marine
Pollution and Maritime Disaster｣. The treatment agent is sprayed and stirred using
high-pressure water to emulsify and disperse spillage oil to promote naturalcleansing of oils without any adhesion to quay or rock surfaces, and without any
sedimentation on the ocean floor. Low in toxicity, the agent quickly and effectively
treats spillage oils for the preservation of the marine environment.
9

Environmental and Social Report 2013

The coating example ofpaste using CELLBINDERAbout US

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

Polymerizable emulsifier that contribute to lowering the burden on the environment
HITENOL KH series
Emulsion polymerization method and emulsifierEmulsion polymerization is a method to create synthetic resin emulsion frompolymer particles with emulsifier being a necessary ingredient. Monomers prior
to polymerization are emulsified and solubilized to prepare for polymerization andto stabilize polymer particles after polymerization. The biggest advantage ofsynthetic resin emulsion is that it is waterborne. Since no organic solvents areused, benefits include prevention of atmospheric pollution, low impact on theenvironment (resource saving) and improvement of work environment, and isused in wide variety of fields including coating agents, adhesives, civilengineering, paper manufacturing, fibers, etc.

Emulsion

Polymerizable emulsifier
Although emulsifier is necessary for emulsion polymerization, there are negative
effects caused by it following polymerization. These include foaming of theemulsion, drop in water resistance due to the emulsifier shifting to the coating film
surface, and poor strength and appearance. To resolve these issues, thetechnology of applying reactive emulsifiers (surfactants) is becoming the mostpractical technology. Because a reactive emulsifier copolymerizes with monomers
during emulsion polymerization, such issues can be resolved as there is very little
presence of the reactive emulsifier within the emulsion. The HITENOL KH series
is a reactive emulsifier developed using long-cultivated knowledge of surface
chemistry and synthesis technologies. Our reactive emulsifier reacts well withvarious monomers for emulsion superior in mechanical stability and physical film
properties. Since is reacts with monomers, it can also be used as resin modifiers.

Effect of HITENOL KH-10 on film's water resistancepolymerizable emulsifier
conventional emulsifier
HITENOL KH-10

monomer: styrene/butyl acrylate=50/50
Compare the transparency of coating film after
soaking 48 hours (at 25 °C) inidistilled water

Applications of emulsion using polymerizable emulsifier (examples)Foradhesives

For paint

For paper

For coating

Environmental and Social Report 201310

Promoting Environmental & Social Activities

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

For CSR promotion
We believe that it is important to gain a high degree ofconfidence from all stakeholders including the society,customers and business partners, stock holders andi n v e s t o r s , a s w e l l a s e m p l o y e e s t h ro u g h f a i r a n dtransparent corporate activities based on corporate social
responsibility (CSR). Our company group aims to become
an important existence in the world by promoting CSR fromviews of economy, society and environment. In order torealize our company motto and credo and to promote our
CSR, we have established the "Code of Corporate Ethics"
and "Declaration of Action for Executives and Employees"
to practice and improve corporate gover nance,compliance, internal control, risk management, responsible
care activities, human rights, labor, etc.

Our company motto Contributing to the nation and society through industry.
Our Company credo Quality First / Cost Reduction / R&D Efforts

Corporate GovernanceTo establish a management base that gains the trust ofsociety, our basic belief is to conduct corporate activities
that are fair and transparent. In order to support these
activities, we have established and will continue tostrengthen our corporate management system and othercorporate governance systems. All management decisions
are made by the Board of Directors that includes outside
directors. All matters that are brought up to the Board of
Directors are first discussed at management committee sothat decisions are rational and conform to the laws andarticles of incorporation.
We have also established the executive officers system forexecutive officers to determine matters in need of decisionby the Board of Directors as well as perform other businessexecutions. Executive officers include the President,
Managing Executive Officers, Senior Executive Officers andExecutive Officers and are composed of Division Managers
that are appointed and supervised by the Board of
Directors. Executive officers bear the direct responsibility
for the business results of the departments in charge andeffor ts are being made for the smooth and unified
execution of business by reporting business results andimportant matters at the Executive Officer Committee.
Our auditors including outside auditors form the Audit &Supervisory Board. The Board demands from the Directors
and employees reporting of necessary for auditing thee x e c u t i o n o f b u s i n e s s i n c l u d i n g t h e p r o g re s s o fmanagement plans, decisions made by the Representative
Director, status concerning risk management of losses andchanges in important accounting policies. In addition, theAudit & Supervisory Board Member conducts auditing on adaily basis by attending such meetings as management
committee, Risk Management Control Committee meetings,
Compliance Control Committee meetings, etc. Concerning
impor tant auditing issues, opinions are exchanged
regularly between the Audit & Supervisory Board andRepresentative Director for mutual awareness and stronger
relationship of trust. Auditing of accounts is conducted by
KPMG AZSA LLC jointly attended by the Audit &Supervisory Board as needed.
We have also established the Internal Audit Department asa system to verify the internal control system concerning
financial reports.

Corporate Governance System (in force as of June 25, 2013)
Shareholder Meeting
Election

Election

ReportAudit

Board of Directors

Audit & Supervisory Board

Appointment/SuoervisionInternal Audit Department

Election

President

Accounting Auditor
Consent to appointment or dismissal
Judgment of appropriateness ofaccouting audit

Audit

ReportManagement Committee
Instruction/
Supervision

Discussion/
ReportExecutive Officers

Review to
proposal/deliberration

Legal Department（

Control Committee
Compliance・Risk Management
IT System・Financial Reporting
Report）Policy/Plan/
Submittion

Reports on our corporate governance are available on the Tokyo Stock Exchange’s website:
http://www.tse.or.jp/disc/44610/140120130604058172.pdf
Environmental and Social Report 2013

ReportReportRC (Environment, Safety&QA) Promotion Meeting

Each Business Division & Group Company

11Election

Coordination

Security & Export Management Headquarters
ReportPolicy/Plan/
Submittion

Promoting Environmental & Social Activities

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

Basic Policy
Our "Code of Corporate Ethics" was set up in July 2004.
This clarified the ethical goal of our company. Our"Declaration of Action for Executives and Employees" wasset up in December 2005. We specified the code of
conduct for executives and employees to substantiate our"Code of Corporate Ethics" and to secure the effectivenessof the code. This "Declaration of Action for Executives andEmployees" is also available in card form. The card has
been already handed out to all of our board members andemployees.
The Whistleblower Hotline was set up in 2006. This hotline isa 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 mode is used (phone,e-mail, postal mail), the Whistleblower Hotline is directly
connected to our Compliance Control Committee.

For more information on the "Code ofCorporate Ethics" and the "Declaration of Action for Executives andEmployees," please visit our company's website.

Activities to Instill and Implement Compliance Practices
We have been conducting a "Research Questionnaire on
Compliance Awareness" once a year, in order to check towhat extent the compliance-based management philosophy
is instilled in our employees. Compliance assessment has
been undertaken on a sectoral basis. To allow anyone toacquire such knowledge, we have also established an
information service database that can offer various kinds ofinformation through quiz-type games. We hold periodic
in-house seminars and workshops on compliance toimprove our employees’ awareness. In 2010 we designatedevery October as the corporate ethics campaign month, andsince then have conducted various events and educational
activities with the aim of improving our awareness ofcompliance.

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

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

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

their corresponding criteria and manuals, which support
supervisory departments to promote risk management.
In FY2012 we conducted continuous risk measurements ineach sector and their progress management. In addition,
we prepared concrete action guidance in an emergency
according to the risk management procedures. Following
the Business Continuity Plan (BCP) concerning earthquake
countermeasures in production branches, we prepared
the BCP in the Head Office. In the future, we intend toreview the BCP preparation in each branch. We conductedcompany-wide safety confirmation training as an earthquake
countermeasure and raised our risk consciousness on aregular basis for preparation in an emergency.
Environmental and Social Report 201312

Environmental and Safety Activities
ivitieses (RC Activities))

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

Executive Officer/Division
Manager of the Production
Control Division (In charge ofenvironment Safety & QA)

MURAKAMI Osamu

The Responsible Care (RC) activities are promoted by the chemical industry under self-management.
Responsible Care commits companies to conduct environmental and safety measurements over theentire life cycle, from the development of chemical substances to their disposal, through processes ofmanufacture, distribution, usage, and final consumption, as well as to improve their performance. We
joined the Japan Responsible Care Committee (Responsible Care Committee of the current Japan
Chemical Industry Association (JCIA)) in 1998, and since then have strongly promoted RC activities
that focus on environmental conservation, security and accident prevention, occupational health andsafety, transport safety, chemicals and product safety, and communication with society for improving
our activities. In addition, our plants are ISO14001 certificated, and put continuously make further
efforts to improve our performance using the environment management system. In terms of ourenvironmental conservation activities, we continually promoted to switch the fuel from heavy oil tonatural gas, and completed this in all branches in FY2011. Furthermore, we continue to devote ourefforts to reducing CO2 emissions through energy saving activities by reviewing manufacturing facilities
and production processes.
In terms of our security and accident prevention activities, we organize periodical emergency andevacuation drills to prepare for the event of an accident. In FY2012, we focused on the safety
confirmation training for natural disasters, such as earthquakes and tsunami. In terms of ouroccupational health and safety activities, we focused on various safety activities with the goal of zeroaccidents resulting in absence from work, regular medical checkups, and mental health care. We put
more efforts into improving our performance continuously through the RC activities and achieve ourcorporate social responsibilities (CSR) to gain confidence in society.

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

We have adopted the following business philosophy for all our business activities: "Byproviding quality products to ensure customer satisfaction, we not only strive to be aprosperous company while moving forward with our employees and serving local communities,
but also contribute to creating an affluent society." Based on this philosophy, we adopt thefollowing statement as our basic philosophy for environmental and safety practices:"Throughout the entire life cycle of our products, from development to disposal, we pay special
attention to both human safety and health and environmental preservation, as well as
contributing to sustainable development and the realization of our goal for an affluent society."

Basic
Policies❶ Throughout the entire life of our products, from development to disposal, we evaluate and reduceeach product’s load on the environment and do our best to ensure the protection of the environment.
❷ We maintain no-accident and no-disastar operations to ensure safety for the employees andthe residents of the surrounding areas.
❸ We ensure the safety of raw materials and interim and final products, and prevent anyhealthdisorders of everyone concerned, such as employees, carriers, customers, and general consumers.
❹ We not only obey relevant laws and regulations, but also actively and constantly examine
and improve the environment and safety through self-management.

Corporate
Principles❶ We 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 toensure continuing improvement of both our environmental protection activities andoccupational safety and health activities.
❷ We obey any laws, regulations, and agreements related to both the environment andoccupational safety and health issues to ensure coexistence with our local communities.
❸ To reduce environmental impacts, we are devoted to performing all of our business activities
in such a manner as to achieve resource and energy conservation, promotion of waste
reduction and recycling, and improvement of occupational safety and protection of health.
❹ When developing our products and technologies, we are devoted to providing safe
products while paying special attention to environmental and safety matters, and fully
understanding the extent to which the product will impact the environment.
❺ We make our best efforts to help all of our employees to fully understand the environmental
and safety policies and to improve their environmental and safety awareness byimplementing environmental and safety training and workplace communication activities. For
this purpose, we ask our affiliate companies for their continued understanding and support.

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

13

Environmental and Social Report 2013

Environmental and Safety Activities (RC Activities)

RC Promotion System
We have established an RC (Environment, Safety & Quality
Assurance) Promotion Conference with our president as its
chairman. At the conference, we deliberate on and decide
agenda items based on our Basic Philosophy, Basic
Policies, and Corporate Principles for Environmental and
Safety Practices. In order to effectively promote our RC
activities, we have established three different conferences the Environmental Protection Conference, Safety and
Health Conference, and QA (PL) Conference - composedof branch managers and the heads of relevant departments
and sections, and chaired by the person in charge ofEnvironment, Safety & QA. At these conferences, ourcompany-wide targets and implementation plans and theirresults are deliberated on.
We have also established, as a sub-organization of ourconferences, three company-wide committees - the EMS
Committee, SHMS Committee, and QMS Committee - aswell as three committees in each of our manufacturing
branches - the Environmental Protection Committee, Safety
and Health Committee, and QA (PL) Committee.
The conferences have been held periodically to formulate
implementation plans for RC targets to manage theprogress of these plans, and to summarize obtained
results.
■Environmental Protection Committee■Safety and Health Committee

Management Committee

Environmental Protection Conference

EMS*1 Committee

RC (Environment, Safety&QA) Promotion Conference

Safety and Health Conference

SHMS*2 Committee

Quality Assurance (PL) Conference

QMS*3 Committee●●

Kyoto Central Branch Production Branches
Tokyo Head Office
Offices●●■Quality Assurance (PL) Committee●

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

Management System
We define our RC activities based on the RC
Promotion and Management Regulations,
Environmental Conservation and Safety and
Health Management Regulations, and Quality
Assurance Management Regulations toaddress and implement them. In eachproduction base in Japan and overseas, wehave acquired the ISO14001 and ISO9001
certifications for the environmental and quality
management system international standards.
We enhance environmental conservation andimprovement of quality by utilizing thosecertifications as a tool for executing a PDCA
cycle, and continue to improve our
performance. Our ISO accreditation sector
performs an internal audit once a year, andmanagement review twice a year with the aimof system improvement.

PDCA Cycle■Reviewing Policies
Review of annual policies■Proposals for Improvement
and Corrective and Preventative
Actions■Audit & Assessment
Auditing performed by
our RC promotion departments
Assessment at Environmental
Protection/Safety and
Health Conferences■Understanding the
CHECK
current status &finding latent problems

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

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

ISO Certification Status in DKS group
Business offices and affiliated companies

Certification body

June 2002

JCQA

Ohgata Branch

July 2002

JCQA

Shiga Branch

March 2002

JCQA

Production Control Headquarters−−

Business Administration Div.

−−R&D Departments−−

DAI-ICHI CERAMO Co., Ltd.

−−

February 2011

JQA

Yokkaichi Chemical Company Limited

March 1999

JCQA

August 1998

JCQA

Affiliates

Domestic production branches

Our Departments

Yokkaichi BranchOverseas affiliates

ISO9001

ISO14001
Acquisition of certification

Acquisition of certification

Certification bodyJanuary 2000

JCQA

KYOTO ELEX CO., LTD.

December 2001

JQA

June 2000

JQA

TIANJIN DAI-ICHI FINE CHEMICALS CO., LTD.

December 2006

ZDHY

August 2001

ZDHY

CHIN YEE CHEMICAL INDUSTRIES, CO., LTD.

December 2006

BSMI

April 1995

BSMI

P.T. DAI-ICHI KIMIA RAYA−−

September 2009

BVI

SHUANG YI LI (TIANJIN) NEW ENERGY CO., LTD.

−−

March 2007

CQC
Environmental and Social Report 201314

Environmental and Safety Activities (RC Activities)

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

Targets and Performance (Dai-ichi Kogyo Seiyaku Group)
Targets and Performance in FY2012
Target Items

Management Items

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

Targets in RC Activities

Promoting energy saving

Energy consumption per unit 1 % reduction compared to FY2011

Reducing GHG emissions

CO2(*1)

Performance in FY2012
4.0 % worse compared to FY2011

Evaluation△

23 % reduction compared to FY2005

23.5 % reduction compared to FY2005

on average from FY2008 to FY2012

on average from FY2008 to FY2012

Waste generation per unit 1 % reduction compared to FY2011

10.6 % worse compared to FY2011△

Recycling rate

Promoting recycling

89.9 % , 11.5 % improved compared to FY2011○

Final disposal amount

80 % reduction of final disposal amount in FY2015 compared to FY2000

75.4 % reduced compared to FY2000△

Final disposal rate(*2)

1 % or less in FY2015

1.9 %

△

SOx emissions

14 % reduced compared to FY2011◎

Reducing emissions ofNOx emissions

Emission/discharge control of environmental pollutants in the air 5 % reduced compared to FY2011○

environmental impact

Dust

19 % reduced compared to FY2011◎

substances

COD

12 % reduced compared to FY2011◎

6.3 % increased compared to FY2011△

Proper management of chemical substances PRTR Law-designated substances Emission reduction of PRTR Law-designated substances

5.4 % increased compared to FY2011△

Promoting green procurement

Promoting green procurement rate of office supplies

9.5 % increased compared to FY2011 in the green procurementl rate○

No occupational accidents (days away from work)

One case occurred△

Eliminating severe accidents associated with production facilities

No accidents occurred○

Promoting environmental management system

Maintained○○

Reducing industrial waste

Emission/discharge control of environmental pollutants in water
Water discharge

Eliminating disasters/accidents
Environmental management system*1 Derived from energy in production and management sectors. *2 The rate of Final disposal amount to waste amount.

Targets and Performance in FY2013
Target Items

Management Items

Targets and Performance in FY2013

Promoting energy saving

Energy consumption per unit 1 % reduction compared to FY2012

Reducing GHG emissions

CO2(*1)28 % reduction compared to FY2005 on average from FY2013 to FY2015

Waste generation per unit 1 % reduction compared to FY2012
Recycling rate

Promoting recycling

Final disposal amount

80 % reduction compared to FY2000 in FY2015

Final disposal rate(*2)

1 % or less in FY2015

Reducing industrial waste

SOx emissions
Reducing emissions ofNOx emissions

environmental impact

Dust

substances

COD

Emission/discharge control of environmental pollutants in the air

Emission/discharge control of environmental pollutants in water
Water discharge
Proper management of chemical substances PRTR Law-designated substances Emission reduction of PRTR Law-designated substances
Promoting green procurement
Eliminating disasters/accidents

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

Environmental management system

Promoting environmental management system*1 Derived from energy in production and management sectors. *2 The rate of Final disposal amount to a waste amount.

15

Environmental and Social Report 2013

Environmental and Safety Activities (RC Activities)

Environmental Impact Accompanied with Business Activities

Input
EnergyRaw Material

Water Resource
Water ... 3,272,000 m3

24,400 kℓ oil equivalentBusiness
Activities

CO2 duringtransport
3,069 tProducts

Output to Environment
Air Environment

Water EnvironmentCO251,900 t

Water dischargeNOx

114.8 t

COD

SOx

2.9 t

Dust

2.0 t

Soil Environment

3,045,000 m3

No emission

Industrial Waste
Generated amount

14,421 t

19.3 tExternal waste reductions

1,174 tPRTR Law-designated Substances 0.4 t

External recycling amount

12,969 tExternal landfill disposal amount

PRTR Law-designated Substances 35.3 t

278 t

PRTR Law-designated Substances 310.0 t

Environmental Accounting (Dai-ichi Kogyo Seiyaku Group)
In FY2011, investment for environmental-related systems wasspent mainly for pollution control, promotion of energy
conservation, and recycling of wastes. Environmental-related
costs increased in the fields of energy efficiency and waste

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

Investment and Costs of Environmental Protection Activities
Category

Upstream/downstream cost

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

Management activity cost

Costs within the plant premises

Investment (yen in millions) Costs (yen in millions)
42.7

329.7

21.5

122.1

7.8

260.6

3.7

0.8

ISO acquisition/completing surveillance audit, greening each plant

0.3

50.1

R&D cost

Environmentally-conscious R&D

0.0

438.4

Social activity cost

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

0.2

2.6

Environmental damage cost
Total

0.0

0.0

76.2

1,204.3

Economic Effects Generated by Environmental Protection Measures
Items

Activity

Economic Effects (yen in millions)

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

4.5

Amount of cost savings through energy conservation

Amount of cost savings in electric power and fuels

4.7

Amount of cost savings through resource saving

Amount of cost savings through reduction of water use /waste

0.1

Profit on sale of valuable resources

Total

9.3

Environmental and Social Report 201316

Environmental and Safety Activities (RC Activities)

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

Global Warming Prevention (Energy Conservation)
Environmental performance data is described based on the calculation with the Dai-ichi Kogyo Seiyaku Group (total values inall domestic affiliates, including Dai-ichi Kogyo Seiyaku Co., Ltd., and Yokkaichi Chemical Company Limited) because we
acquired 100 % of Yokkaichi Chemical Company Limited in April, 2011.

Changes in Energy Consumption and CO2 Emissions
In FY2012, the Dai-ichi Kogyo Seiyaku Group recorded
24,400 kℓ of energy consumption, which resulted in a 1.2 %increase compared to the previous year. The energy
consumption per unit, however, resulted in a 4.0 % increase
to our target of 1 % reduction compared to the previous year
due to a decrease in production amounts. CO2 emissions
were 51,900 tons, which increased 4.1 % compared to theprevious year because the actual emission coefficient wasincreased per electric power supplier due to the operation

stoppage of the nuclear power plants. However, CO2
emissions were reduced by an average of 23.5 % to our
medium-term goal of an average of 23 % reduction
compared to FY2005, from FY2008 to FY2012, whichenabled us to achieve our goal. We continue to devote ourefforts to reducing CO2 emissions towards our medium-termgoal of FY2013 to FY2015 through activities to improveenergy efficiency.

Changes in Energy Consumption (Crude oil equivalent)

Changes in CO2 Emissions
200

27.2
24.1

25
22.1

24.4

175

22.5
20.5

20

150

18.0

15
122

125

130

10

125
100

100

5
0

75

05

(1,000 t)

06

07

08

09

10

11 FY201250*1: Index of enegy consumption per unit [2005=100].
*2: Domestic affiliates, including Yokkaichi Chemical Company Limited
KYOTO ELEX CO., LTD. and DAI-ICHI CERAMO Co., Ltd.

70

Changes in CO2 Emissions

Changes in Energy Consumption

30

30.2

Index of energy consumption per unit

(1,000 kℓ)■Yokkaichi■Ohgata■Shiga■Management sectors■Domestic affiliates
Index of energy consumption per unit

■Yokkaichi ■Ohgata ■Shiga ■Management sectors■Domestic affiliates■Derived from non-energy
71.3
57.5

59.3

60

55.0
51.6

50

49.8

46.6

51.9

40
30
20
10
0

05

06

07

08

09

10

11

FY2012*1: Carbon dioxide emissions derived from non-energy are described from FY2006.
*2: Carbon dioxide emissions in management sectors include fuels for company cars.

Efforts in Logistic Sectors
We outsource our logistic business for our products toexternal freight companies. We transport products by truck,
rail, and ship, but the truck transport is most frequently usedbecause it can instantly respond to the customers' desireddelivery date.
Related to environmental impact activities, we have been
fulfilling our role as a specified consigner under the Energy
Conservation Law to tackle the challenges of reducing
impacts on the environment. The freight volume decreased
by 0.9 % in FY2012, but we achieved a 1.5 % reduction ofenergy consumption and a 1.6 % reduction of GHG
emissions by promoting modal shifting. Furthermore, we
achieved a 1.0 % improvement in energy consumption perunit. Environmental impact reduction in logistic sectors
plays an important role not only in the aspect of global
warming countermeasures, but also in effects on air
pollution and/or waste generation. In the future, we willcontinue to move forward with our activities by promoting
further modal shifting, and by making efforts to achieve a 1% improvement in the energy consumption per unit

compared to the previous fiscal year, which is specified in
the goals of the Energy Conservation Law, through increaseof loading rate for reserved services, and reduction oftransporting of returned products.
In addition, we share environmental impact activities with
our logistics partners and continue to pursue better results
year by year while implementing these activities byexecuting the PDCA cycle.

Environmental Impact to be Reported as a Specified Consigner
Items

FY2012Comparison to
the Previous Year

31,232,000 ton･km− 0.5 %

Energy Consumption Amount

45,358 GJ− 1.5 %

Energy Consumption per Unit

1,452,000 GJ/ton･km− 1.0 %

3,069 t−CO2− 1.6 %

Freight Volume

CO2 Emissions

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

Efforts to Power Saving
We continued to make efforts on power saving in FY2012, inorder to take measures against power shortages due to the
influences of the Great East Japan Earthquake and thesubsequent operation stoppage of the nuclear power
plants. As for approaches for the entire company ingeneral, during the "Cool Biz" campaign period (May to
O c t o b e r ) , w e s u p p re s s e d t h e s e t t e m p e r a t u re o f
air-conditioning equipment, reduced elevator service, andcarried out thorough energy saving modes in officeautomation equipment, as well as improved operating hours
17

Environmental and Social Report 2013of production and research devices with the aim of reducing
peak-hour electricity consumption. In our Yokkaichi Branch,
we partially switched the heating system in winter from air
conditioners to gas fan heaters. In our Shiga Branch, we
made efforts to introduce high-efficiency equipment
according to updates of the facilities. In our Osaka Branch,
we reduced electricity consumption by 25 % compared tothe previous year as a result of our efforts, for example, byscaling down the office space to decrease the amount oflighting. We continue to address power saving in FY2013.

Environmental and Safety Activities (RC Activities)

Efforts to Reduce Emissions of Chemical Substances
Air Pollution Control

Changes in SOx Emissions

Related to reduction of air-pollutant emissions in FY2012, we(t)achieved a 13.6 % reduction of SOx emissions, a 5.4 % of

16.0

NOx emissions, and a 19.1 % of dust emissions compared to

14.0

the previous year through operation adjustment of the

12.0

continue to pursue more energy efficient operation
techniques.

Note that the Yokkaichi Chemical Company

14.5

SOx emissions

facilities based on the efficient production plan. We will

■Yokkaichi ■Ohgata ■Shiga

11.5
9.7

10.0

10.6

8.3

8.0

6.7

6.0

Limited does not have any facilities related to SOx, NOx, and4.0

dust generation.

2.0

3.3
2.9

0
05

Changes in NOx Emissions

124.8

09

10

11

FY2012

3.5■Yokkaichi ■Ohgata ■Shiga

3.4

128.3
121.3

120.0

110.4

114.8

3.0

109.2

Dust emissions

NOx emissions

08

(t)

■Yokkaichi ■Ohgata ■Shiga

133.2
131.1

07

Changes in Dust Emissions

(t)

140.0

06

100.0
80.0
60.0
40.0
20.0

2.7

2.5

2.5

2.5
2.0

2.0

2.0

1.8
1.6

1.5
1.0
0.5

0

0
05

06

07

08

09

10

11

FY2012

05

06

07

08

09

10

11

FY2012

Water Pollution Control
In FY2012, the Dai-ichi Kogyo Seiyaku Group recorded
3

continue to make efforts to reduce the water and COD

3,045,000 m in the amount of water discharge, which

discharge amount by improving our production processes

resulted in a 6.3 % increase compared to the previous year.

and effluent treatment facilities, as well as reviewing the

The COD discharge amount was 19.3 tons, which was ancleaning methods of production facilities.

11.5 % reduction compared to the previous year. We will

Changes in Water Discharge Amount

Changes in COD Discharge Amount■Yokkaichi ■Ohgata ■Shiga ■Yokkaichi Chemical Company Limited■Yokkaichi ■Ohgata ■Shiga ■Yokkaichi Chemical Company Limited
(t)

3,131

3,000

3,045

2,500
2,000

1,967

2,053

1,979

70

2,865

2,711

COD Discharge Amount

Water Discharge Amount(1,000 m3)

2,040

1,500
1,000
500

64.1

60
52.9

50
43.9

40

41.9

38.8

30
21.9

21.8

10

11

20

19.3

10
0

0
05

06

07

08

09

10

11

FY2012

05

06

07

08

09

FY2012

Environmental and Social Report 201318

Environmental and Safety Activities (RC Activities)

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

Efforts to Reduce Emissions of Chemical Substances
Emissions of PRTR Law-designated Substances
The Dai-ichi Kogyo Seiyaku Group had a total of 65
notification substances under the PRTR Law in FY2012. The
total amount of emissions was 35.6 tons, which resulted in a
1.8 ton increase compared to FY2011. The breakdown was
35.3 tons to air, 0.35 tons to water, and none to land. The
amount of waste transfer recorded was 310.0 tons, a 24.0
ton reduction compared to the previous year (7 % less)

Changes in Emissions

owing to the use of recycled Toluene, as well as otherfactors.
Through changes in production techniques,
improvement of production processes and the introductionof recovery equipment, we will continue making efforts to
reduce the emissions/discharge of PRTR substances into
the environment.

Emissions to Air: ■Dai-ichi Kogyo Seiyaku ■Yokkaichi Chemical Company Limited
Emissions to Water: ■Dai-ichi Kogyo Seiyaku ■Yokkaichi Chemical Company Limited

(t )
80

(t )
16

71.8

14

70
60

12

50

10

40

40.1
34.6

32.2

8

35.3

33.5

29.4

30

6

4.75

Emissions to Water

Emissions to Air

63.5

4

20
10

1.23

1.09

2

1.04

0.93
0.26

0

05

06

07

08

09

10

0.34

11

0.35

FY20120

The results between FY2010 and 2012 show the total amount for the Dai-ichi Kogyo Seiyaku Group and the Yokkaichi Chemical Company Limited.
For the emission amount of notification substances under the PRTR Law in FY2012 (among all notification coverage substances, those of which
the emission or transfer amount was 0.01 tons or more), please visit our webpage.
http://www.dks-web.jp/english/download/rc.html

Efforts to Reduce Waste
The amount of waste generation in FY2012 recorded was
14,421 tons for the Group, which was a 1,027 ton increase
compared to FY2011 (7.7 % more). The waste generation
per unit in production amounts (target: 1% improvementcompared to the previous year) was increased by 10.6 %compared to the previous year by fall-off in production. The
external recycling rate was 89.9 %, an improvement of 11.5
% compared to FY2011. The final disposal amountrecorded was 278 tons (target: 80 % reduction compared to
FY2000 in FY2015), equivalent to a 75.4 % reduction
Internal Disposal

19

compared to FY2000. In addition, the final disposal rate to
the amount of waste generation was 1.9 %. To achieve thetarget of the final disposal rate of 1 % or less as in FY2015,
not only the Ohgata Branch, with a large amount of disposal,
but each branch is examining measures to reduce the final
disposal amount. Furthermore, we continue to push forwardthe 3R (Reduce, Recycle, Reuse) activities by improving our
production processes and reviewing our treatment
measures to use resources effectively.

External Disposal

Internal Waste Reductions

External Waste Reductions(not included
in total amount)

1,174 t8.1 %Generated Waste AmountExternal Recycling Amount

14,421 t
100 %12,969 t
89.9 %

Environmental and Social Report 2013

Internal Landfill Disposal AmountExternal Final Disposal Amount

0t
0%

278 t
1.9 %

Environmental and Safety Activities (RC Activities)

Changes in External Recycling Amount & External Recycling Rate
■Yokkaichi ■Ohgata ■Shiga ■Kyoto ■Yokkaichi Chemical Company Limited
External Recycling Rate ■ Dai-ichi Kogyo Seiyaku Group ■ Dai-ichi Kogyo Seiyaku
(%)
(t)
96.1
100
20,000■Yokkaichi ■Ohgata ■Shiga ■Kyoto ■Yokkaichi Chemical Company Limited(t)
15,77416,00014,421

14,000External Recycling Amount

12,800Waste Amount

12,00011,015

10,674

9,912

9,664

10,000

8,579

8,000
6,000
4,000

00

05

06

07

08

09

10

11

789

700
600
498

498
399

400

8,409

70

10,602 10,500

50

9,159
8,479

8,000

40

6,718

40.1

30

6,000
4,284

4,000

20

2,000

10

0

00

05

06

07

08

09

10

11 FY2012

0

(%)
3.0

2.8
2.5

2.5
2.0
1.9

1.5
1.0
1.0

0.5
0.0

369

10
278

300

11

12

in FY2015*The rate of Final disposal amount to waste amount(Targets)

Environment-related Complaints

200
100
0

12,96960

10,757

10,000

Final disposal rate*

Final Disposal Amount

893

500

80
78.4

Changes in final disposal rate*

1,000

800

81.0

67.2

12,000

90
89.9

85.5
78.3

■Yokkaichi ■Ohgata ■Shiga ■Kyoto ■Yokkaichi Chemical Company Limited(t) 1,131
1,100

908

84.0

14,000FY2012

Changes in Final Disposal Amount

900

83.2

16,000

2,000
0

95.8

80.7

18,00013,395External Recycling Rate

Changes in Waste Amount

00

05

06

07

08

09

10

11 FY2012

During FY2012, we received four environment-related
complaints: three for odor, and the other for noise problems.
We took emergency measures and recurrence-prevention
measures in each case.

Chemical Substance Management
We set forth the "Chemical Substance Management
Regulation" with the aim of global environment protection,
accident prevention, occupational safety, health assurance,
as well as product safety. Based on this regulation, we
promote "proper management of chemical substances overthe product life cycle." We have been making management
regulations related to the understanding of chemical
substances in use as well as their amount,substitute/reduction of harmful chemical substances,improvement of ambient environments, and management ofchemical substances contained in products (Greenprocurement). We categorize our chemical substances into
three classes based on domestic and international laws,
global agreements, and requests from customers, and we
define the control descriptions for each class.

Class and Description Related to Chemical Substances Management
Class
Class A Substances to be prohibited

Chemical substances prohibited to use on products

Description

Class B Substances to be reduced

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

Class C Substances to be controlled

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

Environmental and Social Report 201320

Environmental and Safety Activities (RC Activities)

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

Efforts to Occupational Safety
We recognize that ensuring security is the foundation for
effective management and plays a fundamental role in any
business activity. Taking safety first and the respect of humanlife and dignity as our basis, we have been making efforts toeradicate the potential for and occurrence of occupational
accidents. Furthermore, in order to ensure a safe andcomfortable working environment, we have been promoting the"5S" activities (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke inJapanese). Regrettably, in FY2012, we had one "days awayfrom work" cases and, therefore, failed to continue ourcompany No Accident Record streak. For the case studies ofaccidents, after analyzing the cause of the accident, we try tolaterally disseminate the findings and solutions throughout all
sectors and departments to prevent a similar case fromoccurring again. In addition, we have been placing significant
emphasis on periodic implementation of preventative measuresand safety patrols by the managers concerned in order tolocate unsafe working conditions and operations that may
exist. Moreover, we continue to conduct activities related torisk prediction, pointing and calling, risk assessment, andexperience-based safety education, and we aim for theactualization of zero accidents.

Industrial Accident Frequency Rate (AFR) & Industrial Accident Severity Rate (ASR) (From January 1 to December 31, 2012)
Compared to FY2011, the Dai-ichi Kogyo Seiyaku Group was able to improve the industrial accident frequency rate(days away from work) in FY2012. However, we had one "days away from work" cases in FY2012 and could notachieve our target of making the industrial accident frequency rate to zero. We continue to further enhance ourconventional safety activities in order to achieve the industrial accident frequency rate of zero in 2013.

Changes in Industrial Accident Severity Rate

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

Dai-ichi Kogyo Seiyaku Group

Dai-ichi Kogyo Seiyaku
Chemical Industry

3.0
2.30

2.5

2.08

2.0
1.83

1.5
0.79

1.0
0.71

0.71

1.55

1.23
0.82
0.64

0.75

0.72

Severity Rate

Frequency Rate

3.47

3.5

0.5

Dai-ichi Kogyo Seiyaku
Chemical Industry

0.25

4.0

0.20
0.15
0.10

03

04

05

06

07

08

09

10

11

12 yr.

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

0.05

03

0.04
0.02

0.01

0.00 0.00

0.00

0.0

0.07

0.06
0.05

04

05

06

0.00 0.03

07

08

09

10

0.05

11

0.00

12 yr.

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

Experience-based Safety Education
To prevent occupational accidents, there is an education
method to develop workers’ sensitivity and consciousness
through an experience-based safety education that allows
people to experience pseudo risk. According to the above
method, we introduced pseudo experience devices togenerate solvent and dust explosions in FY2010, and started toadopt the experience-based safety education. In FY2012, we

Voice from the Person
in Charge

Yokkaichi Branch

NISHITANI Mitsutomo

21

Environmental and Social Report 2013

added pseudo experience devices to generate incidents ofgetting caught in rollers and piping pressure, and conductedsafety education in each branch. We intend to introduce morepseudo experience devices, and continuously conduct theexperience-based safety education to secure safe and stable
operation in production and research sectors.

Approaches to occupational safety in our Yokkaichi Branch
As our Yokkaichi Branch located in the industrial complex deals with manyhazardous chemicals, we promote various occupational safety activities. We not
only organize periodical overall emergency and evacuation drills, and the safety
confirmation training, but also introduce their original activities. For example, theproduction and indirect sectors evaluate each other's risk in the monthly risk
assessment committee, and related to the common operation, employees whoplay the role of a lecturer conduct the experience-based education in an original
way. In addition, we join the local associations, such as the disaster prevention
committee of Yokkaichi industrial complex subcontractors, and make efforts toshare information with our subcontractors based on the knowledge of actual
disaster events, and occupational safety activities in the complex.

Environmental and Safety Activities (RC Activities)

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

Kyoto Branchdrills, such as with local fire departments. In order to prevent
accidents and disasters inherent in chemical manufacturers fromoccurring, we intend to take measures based on the risk assessmentof hazardous properties, such as the potential hazard, and makeefforts to prevent disasters, such as fire and/or explosions.

Yokkaichi Branch

Yokkaichi Branch

Ohgata Branch

Shiga Branch

Head Office/Laboratory
Osaka Office
Tokyo Head Office
Yokkaichi Chemical
Company Limited

Shiga Branch

Comprehensive emergency drill

November 2012 / February 2013

Safety confirmation drill

January, March 2013

Earthquake evacuation drill

April, May 2012

Comprehensive emergency drill

October 2012

Safety confirmation drill

January, February, March 2013

Earthquake evacuation drill

May, Octorber 2012

Comprehensive emergency drill

April, August 2012

Safety confirmation drill

May, December 2012 / January, February, March 2013

Earthquake evacuation drill

April, August, December 2012

Comprehensive emergency drill

December 2012

Safety confirmation drill

January, February, March 2013

Earthquake evacuation drill

December 2012

Comprehensive emergency drill

December 2012

Safety confirmation drill

January, February, March 2013

Comprehensive emergency drill

November 2012

Safety confirmation drill

January, March 2013

Comprehensive emergency drill

April 2013

Earthquake evacuation drill

September 2012

Funding for Process Safety and Disaster Prevention Measures
The FY2012 funding for our process safety and disaster prevention measures
was 96.7 million yen. This funding was mainly allocated to explosion, fire, andleak prevention measures; mitigation measures for aging facilities; andoccupational safety and working environment improvement measures.

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

Yellow Card
Environmental and Social Report 201322

Social Activities

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

Information Transmission Tools
Transmission Information
For the purpose of providing our stakeholders with accurate and useful
information on our company, we publish brochures such as our company’s
prospectus our Magazine for Public Relations titled "TACT", and our Social
Activities Reports as "Environmental and Social Activities Report" (this document),
for instance. Our web page also offers not only this information but informationsuch as that of our technologies, products, and employment. In addition, we
have offered a series of our Social Activities Reports as "Environmental and Social
Activities Report" (this document) since FY2006 on our web page.
[Brochures]

Corporate Profile

Environmentall andannd Social Report

Magazine for Public Relations "TACT"FY2012 Exhibition Presentations
During FY2012, we made presentations at the following exhibitions.
June 2012

JPCA Show 2012 (The 42th International Electronic Circuits Exhibition) at Tokyo Big Sight
Introduced products in the electronic/electric fields, and the EIMFLEX/DK BE-CLEAR Series

June 2012

The 18th research convention concerning groundwater/soil pollution and its prevention measures at
Saitama Hall
Introduced RENESAS COAT/AIR CHEM jointly by DAI-ICHI KENKOU CO., Ltd. and DAI-ICHI CLEAN CHEMICAL, INC.

October 2012

Nanocellulose Summit 2012 at Kyoto Terrsa
Introduced cellulose single nano-fiber (CSNF)

February 2013

Leading Industry Exhibition Mie 2013 at Yokkaichi DomeIntroduced cellulose single nano-fiber (CSNF)

JPCA Show 2012
We introduced numerous product lines of industrial
chemicals in the electronics/electrical fields, which weredeveloped based on our technology and knowledge
accumulated over many years. Many people visited ourbooth, and gave us their opinions and requests.

23

Environmental and Social Report 2013

The 18th research convention concerning
groundwater/soil pollution and its prevention measures
This is the largest scale research convention in Japan on
various issues concerning groundwater/soil pollution. We
introduced two deodorizer-related products (deodorizer
based on plant essential oils, dust-proof deodorizer) from
our affiliates.

Social Activities

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

Activities in Industry Groups
We mainly join the following industry groups and engage in various
activities.
・Japan Chemical Industry Association (JCIA)・Japan Soap and Detergent Association (JSDA)
・Japan Surfactant Industry Association (JSIA)・Japan Food Additives Association (JFAA)・International Pharmaceutical Excipients Council Japan (IPEC JAPAN)
・Oil & Fat Industry Kaikan
・Japan Oil Chemists' Society (JOCS)
・Osaka Industrial Research Association
・Kinki Chemical Society, Japan・Japan Urethane Raw Materials Association
・The Electrochemical Society of Japan・Kyoto Industrial Association
・Japanese Society of Cutaneous Health・Advanced Materials Innovation Center (AMIC)Award (March 2013)
We received the electrochemistry paper award for2013 from the public interest incorporated association,(OHFWURFKHPLFDO 6RFLHW\ RI -DSDQ  'DLɅLFKL .RJ\R
Seiyaku Co., Ltd. Elexcel Corporation)

Communication with local communities
As part of information disclosure and communication withlocal people in the neighborhood, we create opportunities to
explain our approaches and business activities concerning
environmental conservation and safety measures in ourbranch, to local people in the neighborhood community

Shiga Branch:
Plant visit by people from Higashi-omi city
Life Environment div. and the local
community association

association. We also make use of this opportunity to listen to
their opinions and proposals about risks associated with thechemical plant, as well as information exchange. In addition,
we explain our approaches to the administration, as well as
implementing joint activities with local committees.

Yokkaichi Branch:
Local disaster prevention committee of theindustrial complex

Ohgata Branch:
Takada labor standard cooperation board
meeting

Neighborhood Cleanup Activities and Participation in Community Events
We actively participate in local eventsas activities that are close to the local
areas. Our Yokkaichi Branch joins the
Yokkaichi Minato Festival every year,
and Shiga Branch joins the local
marathon relay race tournament.
In addition, we regularly engage incleaning activities in the neighborhood
as volunteers.

Kyoto Central Branch

Yokkaichi Branch:
Yokkaichi Minato Festival

Shiga Branch:
Gokasho Ekiden Relay Race Tournament

Ohgata Branch

Shiga Branch
Environmental and Social Report 201324

Social Activities

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

Relations with Society & Local Communities
Lecture Delivery for Local School Students
For the purpose of offering opportunities to gain interest in
the fun of chemistry and/or global environment problems,
we give lecture delivery on the theme of "Experiments ofFamiliar Chemical Products in Daily Life" as part of ourregional contribution activities. We encourage each
student to make an interesting experiment using detergent
and experience the fundamental effects of surfactants. We
hope that they would understand why detergent canremove dirt and consider the importance of water throughour lecture. In cooperation with the business promoted by
the Kyoto City and Yokkaichi City Education Boards, we
conducted lectures to the sixth grade students at

Yokkaichi child scientific workshops

Mukaijimafujinoki Elementary School (Kyoto City) in
November 2012, and fifth grade students at Tokiwa
Elementary School (Yokkaichi City) in January 2013. We
joined some events, such as the Yokkaichi child scientificworkshops (organized by the city education committee),and the Kyoto industry festival (organized by the Kyoto
Chamber of Commerce and Industry) and helped people
experience science through experiments. We practice theclass in an easy to understand way for people to enjoy
studying their familiar chemical products, using our
know-how and experience accumulated through ourbusiness.

Lecture Delivery in Kyoto city

Lecture Delivery in Yokkaichi city

Internship & Learning through Work
We h a v e a c c e p t e d t e c h n i c a l c o l l e g e s t u d e n t s f o rinternships for a long time. So far, many students haveparticipated in our internship programs. During theirsummer holidays, participants take their own time tocomplete one or two-week internship program, during
which they have a practical work experience in any of ourworkplaces (such as our laboratories, quality control
section of each branch, etc.) so that they can understandour actual business operations and services. We are
devoted to reviewing and improving each of our programs
so that they can really feel "the meaning of work." We

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

Experience learning at the workplace(persons)

10
8

9
7

6

5

5

11

FY2012

4
2
0
09

10

Ohgata Branch: Workplace Experience

Internship in Kyoto Central Branch
25

Environmental and Social Report 2013

Yokkaichi Branch

Shiga BranchSocial Activities

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

the customer, and at a reasonable cost.
(2) We will pursue higher quality in our products andcontinue to improve the effectiveness of our Quality Manualin order to maximize customer satisfaction.
We constantly strive to clarify the quality assurance
process, as well as assigned roles, duty and authority ineach QA department under our QA system in order toimplement in-depth quality control (QC) and provide
accurate product information while responding to productcomplaints in a quick and faithful manner. We have always
been devoted to providing products that are safe for use.

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

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

Customer

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

DesignDevelopment

Improvement

Response to(M)SDS
Indication

Commercialization

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

Supplying productOffering services

Response to Production Request

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

Offer &
Assessment

R&D Prototype

Production Processes Composition & Packaging& Facilities

Design & Development

Validity Check

Needs

Items to be Assessed

Manufacturing

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

Product Brochures
hures
Environmental and Social Report 201326

Social Activities

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

Relations with Our Customers & Business Partners
Quality Management System
We o p e r a t e o u r q u a l i t y m a n a g e m e n t a c t i v i t i e s i naccordance with ISO9001. We accept all information
re l a t e d t o q u a l i t y, f ro m c u s t o m e r s t h ro u g h s a l e s
representatives, and/or directly in the QC section of eachbranch. Under this system, we unify management andpromptly respond to quality-related information. Everymonth we implement quality control in the product quality

Business
Administration
Division

Production Control
Division

Business Headquarters

Sales
Department

R&D

Production
Department

Functional Chemicals Business Division
Logistics Department

Plastic Materials Business Division

Order receipt & shipping

QA (PL) Conference

QMS Committee

Business Divisions

Electronic Materials Business Division

Product Quality
Review Meeting

Purchasing Department
Material procurement

review meeting with our production departments. We use
our PDCA cycles in the quality assurance management
system to promote improvement and/or advancement
measures. In the Quality Assurance (PL) conference, wedeliberate the issues brought up from the QMS Committee,
and review how the quality management system isappropriate, applicable, and/or effective.

(Head of) Branch
QC Section

Environment,
Safety & Quality
Affairs Department

Each Branch

Customer

Response to Complaints and Quality Defects
Product quality complaint management is our top priority toassure stable product quality.
Therefore, we haveestablished our internal Procedures for Handling ProductComplaints. We specify procedures to deliver informationfrom the sales department which receives information from
customers to the QC section and relative departments ineach branch, and deal with quality-related complaints
according to these procedures. Our policies for handling
product complaints focus on the following practices:maintaining credibility by responding quickly and in goodfaith, thoroughly probing the cause of the complaint, andtaking preventive measures and recurrence prevention
measures.
We share quality defect and complaint
information through the network, and conduct progress
management while setting the goals to reduce the number ofcomplaints and quality defects. When an abnormal event
occurs, we clarify the root cause using our analyzing method("Naze-naze analysis") and implement recurrence
prevention measures. In addition, each branch conducts a
product quality inspection patrol on a monthly basis andreminds employees to promote awareness concerning thefield validation and quality.

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

Partnership with Our Sales Agents and Distributors
In order to offer products that respond to market trends andneeds and to promote the sale of such products, our sales
department has been devoted to developing new marketing
practices in cooperation with our sales agents anddistributors.
Our company has a group of sales agents and distributors
known as "Zenkoku Ichi-Ko Kai," composed of our major
sales agents and distributors. The Zenkoku Ichi-Ko Kai(DKS National Dealers Meeting) annually holds a general
assembly. At the assembly, we explained our company
performance, as well as the medium-term management
plan: "Change 100 Plan" stage II. Besides, as our "newchallenge", we introduced the cosmetics online sales
company, SUZAKU MICHI Co., Ltd. as well as the portablebattery. We promote communication activity with our dealers,such as information exchange, in order to realize mutual
prosperity based on our trusting relationship.
27

Environmental and Social Report 2013

Zenkoku Ichi-Ko Kai (DKS National Sales Agents and Distributors
Meeting) in Osaka

Social Activities

Relations with Our Shareholders & Investors
Shareholder Meeting
We regard the shareholder meeting as an important
opportunity to foster communications between shareholders
and management. 90 shareholders attended the annual
shareholder meeting on June 25, 2013. 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 clear explanation of our reportusing narration and slide presentations, so that all of ourshareholders can understand the points well. It ended inabout 36 minutes after five resolution matters weredeliberated and approved. After the meeting, Chairman, Mr.
Sakamoto, had the briefing session titled "To ourshareholders of chemistry to respond to people's needs",
followed by a shareholders get-together with top
management. We had meaningful exchanges of opinionswith our shareholders in a relaxed and friendly atmosphere.

Shareholder Meeting

Shareholders Get-Together

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

Shareholder letters in FY2012

Our company's website
http://www.dks-web.jp/ir/index.html

Environmental and Social Report 201328

Social Activities

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

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

2XU&RPSDQ\·V+XPDQ5HVRXUFH3KLORVRSK\Our fundamental human resource philosophy is rooted in the idea that our people are our greatest asset and must be
nurtured and treasured. We believe that by putting our belief into practice the growth of each individual employee will
support the growth of our company and will allow our employees to be active, to grow, and to realize their potential in each
workplace. This will help them in not only achieving their self-actualization but also serving as a driving force for further
developing of our company, as well as making the company’s presence permanent.

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

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

General Business Owner Action Plans (summary) (From April 2010 to March 2015)
Target 1: Familiarizing our employees with our child-rearing support system and enlightening them
Target 2: Implementing measures to reduce overtime work
Target 3: Implementing measures to promote taking annual paid leave
Target 4: Performing community contribution activities related to children and child-rearing practices
Target 5: Expanding opportunities to obtain working experience including internship
Our Personnel System■ Employment System
In response to the declining birthrate and aging society, and inorder to promote a healthy work/life balance, we havedeveloped the following personnel systems, each of whichtakes into account employees’ child-rearing and nursing care.
In FY2012, we discussed the period extension of child-rearing
short-time work in the union-management consultation, anddecided to implement it in FY2013.
- Childcare Leave System - Childcare Part-time Work System- Nursing Care Leave System■ In-house Achievement Award System
Through our employee incentive programs, we have beenrunning not only a performance incentive system such as
patent and personal achievement awards, (twice per year)
but also Division Manager’s and length of service awards.

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

12
10
8
6

FY2012 First Half Achievement Award Winners

4
2
0

08

09

10

11

12

(FY)

■ Retiree Reemployment System
We have introduced a reemployment system for our company’ sretirees since FY2006. By drawing on their many years of skills,
techniques, and experience, they still remain active as "seniorchallenge staff." In FY2012, we considered our approachaccording to the law revision in the union-management
consultation, and changed our system at the beginning of FY2013.
29

Environmental and Social Report 2013

■ Efforts to Prevent Harassment
As for activities to prevent (sexual, power, and moral)
harassment, we provide related education programs inhierarchical training courses, and take care of any (alleged)harassment incidents by established contact points.

Social Activities

Human Resource Development & Education
We recognize that the growth of employees lead to theadvancement of our company. To realize this humanresource philosophy, we are promoting human resource
development and education programs. In programs for our
employees, we focus on three pillars of in-house education(OJT) through work, external education (OFF-JT) of skills andabilities necessary for performing tasks and self-enlightenment

support. In addition, we are dedicated to supporting voluntary
capacity building of our employees by providing them within-house lectures and briefing sessions. In FY2011, werenovated the former Head Office in Shichijo Sembon, where
the company was founded, as a training facility to provide
education.

Education training system
Since FY2011, we have reviewed our past training programs
and contents to improve managerial skills and humanresource development. Then we established the new

education training system. In order to enrich our programs,
we have especially added programs for our hierarchicaltraining and department training for external education.

Off the Job Training (OFF-JT)
Department training

Workshop practiceCorrespondence education courses/e-learning

Support for the TOEIC examination

Support system for obtaining qualifications

Domestic study program

Staff dispatching to outside conferences or seminars

Mental health care education

Accounting training (advanced)

Experience-based safety training

Foremantraining

Follow-up
training

Skills improvement
training

Sales development workshop

New sales staff training

Practice and application of sales business

Brother andsister system

Follow-up training

Self-development
support program

CommonEnglish conversation class for beginner/advanced levels

Management

Compliance Education

Production

Accounting training (basics)

New employee

Third-year training

Presentation training

Professional training

Experiment planning method

Advanced professional training

Logical thinking training

Coaching practice training

Development training for research management post

Accounting training

Engineer training

Third-year management post training

Safety and health education

The management

Fifth-year management post training

New manager training

General staff

Sales

Management workshop

Corporate manager development training

On the Job Training (OJT)

Research

Human rights education (including on sexual/power harassment)

Director

Training course by position※1

New employee training※1 Brother and sister system: The system which a young senior colleague and a new employee make a pair, and a young senior colleague undertakes the guidanceof the way of advancement of the work one-to-one.

Corporate manager development training

Voice from the Person
in Charge

Plastic Materials Sales Department

Third-year management post training

Experiment planning method

Utilizing the childcare leave system.
I used the childcare leave system when giving birth to my second child. I felt atease as I was notified of company situations even during the leave. My
workplace is especially busy with many male employees but everyone wasthoughtful even after my return, allowing me to comfortably work and raise mychildren. Full use of the childcare leave system is impossible without theunderstanding and cooperation of the workplace. In that sense, I am grateful forthe favorable environment of our company. For those thinking about requestinga childcare leave, I would like to say, "There is no need to worry."KIRYU Yamao
Environmental and Social Report 201330

Social Activities

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

Relations with Our Employees
DKPM Activities
DKPM (Dai-ichi Kogyo Productive Maintenance) activities
based on the 5S (Seiri, Seiton, Seiketsu, Seisou andShitsuke) are activities for improving productivity, businessefficiency, quality control and safety awareness that are thekey elements of a manufacturer. These activities are also
the base that supports the strategies of new medium-term
management plan stage II and the purpose of these
activities is to strengthen the corporate culture and build afoundation for control and improvement. Targeting themanagement, these activities originally started in FY2011
under the guidance of consultants. Following thedeclaration by the President in April 2012, all employees
including top management were asked to participate.
Quarterly execution plans, quarterly performance reports
and on-site diagnosis by the top management became
mandatory with the best teams being rewarded. The
activities are also being held at affiliates. Especially
Yokkaichi Chemical Company Limited has been conducting
the activities for more than 20 years starting in 1990.

DKPM Diagnosis by Top Management (Yokkaichi Branch)

In-house Seminars and Briefings
In FY2012, the following in-house seminars and briefings
were held:■Seminars (by a visiting lecturer)"Fostering Technology Human Resources that Achieve
Results: Mental Attitude of Those Providing Education
and Receiving Education""Research and Development for Surviving Global
Competition"■Briefings"About the Operation of the Security Export Control
Business Acknowledge System""Assessments Concerning the Sales Department:
Anti-Monopoly Act and Information Control System"

In-house seminar in January 2013

Meeting for Research Presentation
We hold meeting for research presentation twice every
year, which provides company-wide technical forums forour researchers to present and discuss their latest findings
in R&D and production technology developments. Meetingfor Research Presentation are composed of three sections:a special seminar presented by a visiting lecturer, verbal
presentations, and poster presentations. In FY2012, we
held the 76th and 77th meeting for research presentations
in July and January, respectively. At a convivial meetingf o l l o w i n g t h e m e e t i n g f o r re s e a rc h p re s e n t a t i o n ,par ticipants vote on the best meeting for researchpresentation and a winner is awarded.

In-house Magazine

The 77th Meeting for Research Presentation

We publish the in-house magazine "DKSCOM" every othermonth to introduce various articles including messages
from top management, regarding management policy, andcovering our employees' performance.
Our editorial policy is as follows:(1) Convey management policies and information to each
employee and share them.
(2) Promote communication between managers andemployees.
Every year, each employee creates a challenge card andposted in the in-house magazine. Each card represents
the challenge of each employee for the year and is posted
at the workplace.
31

Environmental and Social Report 2013

C
Challenge Card

The FebFeb. - Mar
Mar. 2013 issue

Social Activities

Healthcare & Occupational Safety and Health■Blood Donation
Our company annually conducts a blood donation
campaign upon the request of the Japanese Red Cross
Society. With the cooperation of employees, the branchappeals to each person to donate 400 ml of blood. The
number of blood donors was 50 this year. In the Kyoto
Central Branch 12 employees, the Yokkaichi Branch 25
employees, and the Ohgata Branch 13 employees became
donors.

■Health Checkup
A s a re s u l t o f e n c o u r a g i n g a n d m o t i v a t i n g a l l o u r
employees to get regular medical checkups, their
checkup-participation rate in FY2012 increased to 100 % of
our goal. To achieve early detection of cancer and ensure
the promotion of good health for our employees, we
conducted medical checkups including X-ray examinationof the stomach, abdominal chocardiography, dental
checkup, fundus examination and echo mammography inall our branches. We also place importance on follow-up
measures after checkups, especially in regards to any
abnormal findings in the results. Since FY2010 we haverecommended reexamination and second checkup
participation for employees who received results withabnormal findings in order to ensure that they do not fail toattend reexamination, and help them understand theclinical results. Consequently, the rate of reexaminationand second checkup-participation was 85 % in FY2011,
and 62 % in FY2012. We will also make further efforts toachieve 100 % participation in FY2013. We will continue topromote this activity in order to prevent any current
symptoms from leading to serious illness and/or keep any
illness or other problems from increasing in severity.

Yokkaichi Branch

Kyoto Central Branch

Kyoto Central Branch■Mental Health CareAs for approaches to medical health care in FY2012, we
conducted occupational and stress coping tests. As
follow-up instruction, we explained to each manager how toreview personal interviews and group analyses after tests.
We continue to promote our activities in order to improve
occupational environments, and secure strong mental
health to cope with stress.

■Lower back pain prevention
Lower back pain is one of the injuries many workers arevulnerable to in workplaces. As for a new approach to thisissue, we held a workshop for lower back pain prevention
in our Kyoto Branch. The workshop included a lecture,
followed by actual practices based on working actions forclerical and research jobs. We hope our employees willlearn the causes of lower back pain and prevention
measures and be able to prevent the pain on an individual
basis. In order to put it into practice, we intend to hold theworkshop in other branches, too.

Mental health seminars (Kyoto Central Branch)
Environmental and Social Report 2013

32

On-Site Report
On-SitYokkaichi Branch
Located in the coastal area of northern Mie Prefecture, our Yokkaichi Branchis blessed with natural surroundings that include the lush, green Suzuka
Mountain Range, the water-filled Kiso Three Rivers, and Ise Bay. In order toprotect this nature-rich region and its richly endowed environment, we strive
to integrate environmental consciousness into all our business activities andcontinue to implement environmental protection practices.
Following air pollution reduction through fuel conversion two years ago, in
December 2012, we introduced electric vehicle as part of company activities
with a focus on environmental consciousness and energy conservation. We
organize periodical emergency and fire drills to prepare for the event ofearthquakes and/or plant accidents that have recently increased. In addition,
we actively carry out local emergency drills, and promote our activities withthe goal of being the branch coexistent with the local community. We
adopted our annual slogan “Yokkaichi - Power” at this branch in 2013. We
strive to conduct activities in a positive manner and with the aim of the
reduction of environmental impact while raising the level of power in the field,
and continue to work on improvement with relation to the environment.

Branch Manager of
Yokkaichi Branch

TANAKA Hiroshi
Panoramic View of Yokkaichi Branch

Environmental Impacts in FY2012

Address: 7 Chitose-cho, Yokkaichi City, Mie Pref.
Area of the Site: 17,647 m2
ISO Certification Status:
14001: Certified in June 2002 (Certification body/ JCQA)
9001: Certified in January 2000 (Certification body/ JCQA)

Energy Consumption (Crude oil equivalent)

Changes in CO2 Emissions and Energy Consumption per unit
(1,000t)

25.0
22.5
20.0
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0.0

CO2 Emissions

Index of Energy Consumption per unit [FY2005=100]

117.6
102.0

5.6

08

103.5

5.4

09

105.3

5.9

10

104.3

4.2

11

4.3

120
110
100
90
80
70
60
50
40
30
20

FY2012

2,114( t-CO2 )4,295

Generated Waste Amount

(t)

7,775

Final Disposal Amount

(t)

5.1

PRTR Emissions

(t)

34.08

( 1,000 m3 )

543.1

(t)

1.1

CO2 Emissions

Main Products:
Polyether polyol, urethane prepolymer, UV-curable monomers/oligomers,
anionic surfactant, oiling/finishing agent, cationic surfactant( kℓ )

Water Discharge Amount
COD Emissions

Changes in waste amount and the final disposal rate(t)

10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

Waste amountFinal disposal rate (%)

8,897
7,175
5,510

6,075

0.88
08

7,775

0.15

0.09

0.36

0.07

09

10

11

FY2012

Efforts in Environmental and Social Activities
This branch located in the industrial complex has promoted communication
with local communities through activities concerning environmental
conservation and security and accident prevention, as well as active
participation in local events. As for activities concerning environmental
conservation, we joined a cleanup work for driftage on the coast at the Toshi
Island in Mie Prefecture, which was organized by the Mie Prefecture industrial
waste disposal promotion association. As for activities concerning security
and accident prevention, we participated in meetings with the local
association of independent disaster prevention organizations, and took part indisaster drills. We also cooperated with the public fire department andconducted joint drills in preparation for a contingency. Through those
activities, we promoted collaboration with local residents. In addition, we havedevoted ourselves to helping bring up children by joining the "Yokkaichi scienceseminar for children", giving delivery lectures, and donating newspapers forelementary students. The "Yokkaichi children science seminar" is organized by
the Yokkaichi city education committee based on the idea of making full useof the characteristics of the city's industrial location, which helps children
develop their intellectual curiosity and inquiring minds for science.

33

Environmental and Social Report 2013

Cleanup activities in TOUSHIJIMA

10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

On-Site Report

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

Branch Manager ofOhgata Branch

TSUJI Hironobu
Panoramic View of Ohgata Branch

Environmental Impacts in FY2012

Address: 230 Saigata, Ohgata-ku, Joetsu City, Niigata Pref.
Area of the Site: 86.963 m2
ISO Certification Status:
14001: Certified in July 2002 (Certification body/ JCQA)
9001: Certified in January 2000 (Certification body/ JCQA)

CO2 Emissions

CO2 Emissions

(t)

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

23.5

08

19.5

09

97.9

99.1

20.9

18.1

10

11

18.3

961

Final Disposal Amount

(t)

93.4

(t)

0.47

( 1,000 m3 )

443.1

(t)

10.0

Changes in waste amount and the final disposal rate

120
110
100
90
80
70
60
50
40
30
20

110.6
100.7

18,322(t)

COD Emissions

Index of Energy Consumption per unit [FY2005=100]

112.6( t-CO2 )Generated Waste Amount

Water Discharge Amount

Changes in CO2 Emissions and Energy Consumption per unit
25.0
22.5
20.0
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0.0

8,339

PRTR Emissions

Main Products:
CMC, waterborne polyurethanes, polyvinyl pyrrolidone,
industrial detergents(1,000t)( kℓ )

Energy Consumption (Crude oil equivalent)

FY2012

Waste amountFinal disposal rate (%)

55.56

1,595
718

08

29.40

09

1,136

956

15.43

14.86

10

11

961
9.72
FY2012

100
90
80
70
60
50
40
30
20
10
0

Efforts in Environmental and Social Activities
The Ohgata Branch sets the environmental goals in the environment
management system and continue to make efforts to reduce environmental
impact, etc. We aim to promote 3R (Reduce, Reuse and Recycle) ofindustrial wastes and converting some of the wastes to valuables
through segregation. Concerning wastewater treatment, we aim tosave resources by preserving and improving the water quality andusing activated sludge as fuel. We also have a plan to utilize renewableenergy of methane gas emitted during anaerobic treatment as heat.
We will also improve the relationship with the local community throughcommunication. In order to conduct corporate activities that are appreciated,
we will further deepen our communication with the local community byparticipating in local events and waste collection, emergency drills withthe fire department and association of disaster prevention, andmeetings with local residents.

Plant visit

Environmental and Social Report 201334

On-Site Report
On-SitShiga Branch
Nestled to the west of Mt. Kinugasa, our Shiga Branch lies in the green
Higashi-Ohmi area known to be one of the birthplaces of Oumi merchants, andlooks out over Japan’s mother lake, Lake Biwa. We have been paying close
attention to the environmental aspects of all our business activities andimplementing environmental protection practices through continual improvementof our business activities.
Up to now, we have made efforts to practice environmental preservation such as
reducing carbon dioxide emissions through fuel conversion and by introducing acogeneration system, and improving wastewater treatment to reduce impact of
COD. In recent years, we have engaged in promotions to maintain company
owned forests as part of in-house volunteer activities by our employees. In
addition, we succeeded in changing a part of the overall waste to valuables
through complete segregation, thereby resulting in significant reduction in termsof final disposal. We will continue to emphasize compliance to gain further trustfrom the local community.

Branch Manager of
Shiga Branch

KAWAMOTO Wataru
Panoramic View of Shiga Branch

Address: 427 Gokasho Hiyoshi-cho, Higashi Ohmi City, Shiga Pref.
Area of the Site: 105,753 m2
ISO Certification Status:
14001: Certified in March 2002 (Certification body/ JCQA)
9001: Certified in January 2000 (Certification body/ JCQA)

Environmental Impacts in FY2012
Energy Consumption (Crude oil equivalent)

6,429( t-CO2 )12,374Generated Waste Amount

(t)

2,980

Final Disposal Amount

(t)

5.0

PRTR Emissions

(t)

0.35

( 1,000 m3 )1,336.0(t)

6.5

CO2 Emissions

Main Products:
Sucrose fatty acid esters, food additives, metal surface
treatment agents, surfactants, water-soluble polyester polyol,solvent-substitute waterborne/non-waterborne detergents( kℓ )

Water Discharge Amount
COD Emissions

Changes in CO2 Emissions and Energy Consumption per unit
(1,000t)

25.0
22.5
20.0
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0.0

CO2 Emissions

Index of Energy Consumption per unit [FY2005=100]

(t)

170
160
150
140
130
120
110
100
90
80
70

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

162.2

157.3
152.7

12.5

08

146.5

11.2

09

Changes in waste amount and the final disposal rate

147.4

12.6

10

12.3

11

12.4

FY2012

Waste amount

2,864
2,270

Final disposal rate (%)

2,980
2,581

2,164

2.08

08

0.48

0.42

0.41

0.17

09

10

11

FY2012

Efforts in Environmental and Social Activities
Due to the shortage of electric power in FY2012, we were asked by theelectric company to conserve on electricity during summer and winter. For
this year, our branch focused on measures to save electricity. In detail, we
increased the operation rate of our non-utility generator (cogeneration
system) during electricity saving hours and installed energy-saving air
conditioners. As a result, we were able to cut down 15 % of the maximum
electric power consumption compared to the summer of FY2011. We
also made efforts to save energy by cutting back the load of air
conditioners as well as lowering the sensible temperature by using heatinsulation paint on the roof of the cafeteria as well as using circulationfans. As a measure in the case planned blackouts would take place,
we made modifications so that the cogeneration system would operate
independently so that the main facilities would continue to operate.

35

Environmental and Social Report 2013

Cafeteria building coated with heat insulation paint

10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

On-Site Report

Yokkaichi Chemical Company Limited
Yokkaichi Chemical Company Limited was established in 1959 in Yokkaichi City,
as a manufacturer of ethylene oxide derivatives centered on non-ionicsurfactants. The company has acquired certification for the environmental
management system international standards in 1999. In 2002 we announced our
implementation of the RC (Responsible Care) activities, and continue to develop
activities based on our corporate philosophy and safety, environmental, andquality policies, as well as the cultivation policy of human resources. We strive to
integrate environmental consciousness into all our business activities andcontinue to implement environmental conservation practices through R&D thatcovers product life from design to disposal, thorough waste management, waste
reduction, and more effective energy and resource utilization in production
processes. We are devoted to further conducting fair and transparent businessactivities and fulfilling social responsibilities while emphasizing compliance withstringent attention to environmental requirements, and enhancing thoroughsafety and coexistence with the global environment.

Yokkaichi Chemical
Company Limited
President

HONJO Shuichi

Address: Headquarters/Yokkaichi Plant:
2-1, Miyahigashi-cho, Yokkaichi City, Mie Pref.
Rokuromi Plant:
710, Rokuromi, Oaza, Yokkaichi City, Mie Pref.
URL: http://www.yg-chem.co.jp/
Area of the Site: approx. 30,000 m2 (Headquarters/Yokkaichi Plant),
approx. 26,000 m2 (Rokuromi Plant)
ISO Certification Status:
14001: Certified in March 1999 (Certification body/ JCQA)
9001: Certified in August 1998 (Certification body/ JCQA)
Operations: Manufacturing, processing and sales of various chemical products madefrom Ethylene oxide and other petrochemical industry products

Changes in CO2 Emissions and Energy Consumption per unit
(1,000t)

25.0
22.5
20.0
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0.0

CO2 Emissions

Environmental Impacts in FY2012
Energy Consumption (Crude oil equivalent)

100.1

15.6

17.1

16.4

13.4

14.7

08

09

10

11

FY2012

2,624

Final Disposal Amount

(t)

168.0

PRTR Emissions

(t)

0.73

( 1,000 m3 )

722.6

(t)

1.7

Changes in waste amount and the final disposal rate
（t）

112.5

14,700(t)

COD Emissions

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

123.7

6,486

( t-CO2 )Water Discharge Amount

130
120
110
100
90
80
70
60
50
40
30

123.8

( kℓ )

Generated Waste Amount

CO2 Emissions

Index of Energy Consumption per unit [FY2005=100]

121.1

Headquarters of
Yokkaichi Chemical Company Limited

Waste amount

6.90
2,826

10

Final disposal rate (%)

7,07

6.40

2,615

2,624

11

FY2012

10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

Efforts in Environmental and Social Activities
In FY2012, we implemented measures focusing on hazardous substances
during the event of a major earthquake. In detail, these include reviewingof preventive regulations that incorporated measures for tsunami based on
the Act on Special Measures concerning Advancement of Countermeasuresagainst Disasters of Tonankai and Nankai Earthquakes and DIG (Disaster
Imagination Game) concerning large-scale earthquakes and tsunami thatis predicted to follow. During DIG, group discussions were held on what
may happen in the event of an earthquake and the actions we must take. In
March, we held comprehensive disaster prevention training under theguidance of the fire department and in September, the training was held
again by adding evacuation training to secure the safety of employees sothat they can evacuate to the appropriate evacuation site. We will continue
to improve the awareness concerning earthquakes and tsunami for all
employees and create more effective measures that incorporate social
responsibility.

Disaster Imagination Game of Tsunami

Environmental and Social Report 201336

Domestic and overseas affiliates involved in manufacturing

KYOTO ELEX CO., LTD.
Company Overview
Our company was established in July 1986 for the development,
manufacturing and sales of conductive pastes mainly using
precious metals (silver, white gold and copper) as raw materials byapplying the dispersion technologies of Dai-ichi Kogyo Seiyaku
and metal powder technologies of DOWA Electronics. By
providing various pastes, we contribute to the improvement ofquality and functionality of electronic devices and components
used in solar batteries, smart phones, LED and medical devices.
Environmental and Social Activities
While environmental and safety concerns continue to rise,environmental regulations such as REACH of Europe are
becoming stricter each year in the field of electronic materials.
Our company focuses especially on the development of productsthat contribute to the field of environmental protection. We havesucceeded to commercialize the world’s first silver paste for solar
batteries that do not contain lead which is considered toenvironmentally hazardous. Not only is the paste used in Japan, it
is used all over the world. As the demand for natural energy
increases, we will continue our development to improve thep e r f o r m a n c e o f l e a d - f re e s o l a r b a t t e r i e s t h a t a re m o reenvironment-friendly.

President

SHIBA Yasukiyo
Address:

1 Ogawara-cho, Kisshoin, Minami-ku, Kyoto 601-8391, Japan

URL:

http://www.kyoto-elex.co.jp/

Operations: Production & sales of electronic materials
ISO Certification Status:
14001: Certified in December 2001 (Certification body/ JQA)
9001: Certified in June 2000 (Certification body/ JQA)

DAI-ICHI CERAMO Co., Ltd.
Company Overview
Our company started as Dai-ichi Ceramo in 1988 when Ceramics
Research Group separated from Dai-ichi Kogyo Seiyaku. We
mainly develop, manufacture and sell PIM (power injection
molding) compounds. Currently, we also sell our products tooverseas. We supply optimized compounds by working closelywith customers and conducting injection molding assessments.
We are working hard on a daily basis to contribute to the growth ofc u s t o m e r s a n d t h e i n d u s t r i a l w o r l d b y c a r r y i n g f o r w a rdtechnological reform based on our accumulated knowledge.
Environmental and Social Activities
Since we are located within the premises of our Shiga Branch, weare also conducting environmental preservation activities byworking with the Branch. We are also working to reduce wastes
through complete segregation and converting some of the wastes
to valuables. We are devoted to further improving the natural andsocial environments while emphasizing compliance with stringent
environmental requirements.

President

URAOKA Hidetaka
Address:

432 Gokasho Hiyoshi-cho, Higashiomi, Shiga 529-1403, Japan

URL:

http://www.dai-ichi-ceramo.co.jp/

Operations: Production & sales of materials for ceramics and injection molding
ISO Certification Status:
9001: Certified in February 2011 (Certification body/ JQA)

Elexcel Corporation
Company Overview
We have been refining our lithium battery technologies in order toanswer to the current demands for the development of lithium-ion
batteries of high safety and technologies for lithium polymer
batteries. Other than independent research, we use ouraccumulated battery technologies and battery production
technologies to manufacture prototype batteries and evaluate
materials and components of lithium-ion batteries for othercompanies.
Environmental and Social Activities
As part of our business, we are contributing to the electricalstorage of green energy such as PV generation as well as energy
saving and resource saving technologies by developing lithium
batteries that use safer and cheaper iron phosphate as electrodematerial. Located at the Keihanna Plaza of the Kansai Science
City, we aim to contribute to the society by interacting with venturefirms and participating in Keihanna EV conferences.

37

Environmental and Social Report 2013

President

OHMIYA Masato
Address:

13th Floor, Laboratory, Keihanna Plaza, 1-7 Hikaridai,
Soraku-gun Seikacho, Kyoto 619-0237, Japan

URL:

http://www.elexcel.co.jp/

Operations: Development of Lithium-ion power batteries/Solar cells

Domestic and overseas affiliates involved in manufacturing

P.T. DAI-ICHI KIMIA RAYA
Company Overview
Our company was established in 1996 as a fiber processing agent
manufacturer. Overcoming many obstacles including themonetary crisis and riot in Jakarta, we are also carrying forwardbusiness that fits the diversifying needs of the Indonesia market
through manufacturing and sales of resin additives, synthetic water
retention agents for paper making and food additives besides fiber
processing agents.
Environmental and Social Activities
Through the neighborhood council of the KIIC industrial district
where we are located, we are conducting volunteer activities forthe location community. We provide baby foods every month tobabies living nearby and donate goats and cows to five of the
nearby villages during Muslim festivals.

President

KITANI Fumihiko
Address:Jl. Maligi ll LotG-2 Kawasan Industri KllC, Karawang Barat,
Jawa Barat, Indonesia
Operations: Production & sales of textile agents, plastic additives,
paper processing agents, and food additives

ISO Certification Status:
9001: Certified in September 2009 (Certification body/ BVI)
22000: Certified in May 2011 (Certification body/BVI)

CHIN YEE CHEMICAL INDUSTRIES, CO., LTD.
Company Overview
Our company was established in 1975, mainly manufacturing andselling fiber and chemical surfactants for the market of Taiwan.
Since then, we have been contributing to the field of theelectronics industry through manufacturing and sales of lubricantsf o r p l a s t i c s , p r i n t e d c i rc u i t b o a rd f l a m e re t a rd a n t s a n dheat-resistant hardeners. Recently, we have also been providing
h i g h - f re q u e n c y m a t e r i a l s f o r p r i n t e d w i r i n g b o a rd s a n dheat-resistant resin that demand high transmission performance.
Environmental and Social Activities
At our company, we are appropriate carrying out safety andsanitation risk measures according to ISO-9001 and ISO-14000.
As environmental measures, we have been reducing and reusing
wastes by improving manufacturing processes.

Vice-President

AOYAMA Tatsuo
Address:

11F Lidye Commercial Building, 22 Nanking West Road, Taipei,
TaiwanOperations: Production & sales of surfactants & plastic additives
ISO Certification Status:
14001: Certified in December 2006 (Certification body/BSMI)
9001: Certified in April 1995 (Certification body/ BSMI)SHUANG YI LI (TIANJIN) NEW ENERGY CO., LTD.
Company Overview
Our company was established in the 2005 as a manufacturer
manufacturing and selling lithium-ion batteries in the Tianjin
Economic-Technological Development Area of Tianjin City, China.
We have been selected as a high-tech company in the Tianjin
Economic-Technological Development Area as well as recognizedfor our social contributions.
Environmental and Social Activities
We are making efforts to save energy by conserving electricity
used for air conditions, plant lighting, dry room and warehouse as
well economize the use of heater steam. We have also reduced
the amount of paper used to conserve paper. We are also making
efforts to segregate and reuse industrial wastes.

President General Manager

Liu Xiaoyan
Address:

No.11 Building, Fenghua Industrial Park, Phase 2,
No.80 the Ninth Street, TEDA, Tianjin, P. R. China
Operations: Production & sales of Lithium-ion power batteries

ISO Certification Status:
9001: Certified in March 2007 (Certification body/ CQC)

Environmental and Social Report 201338

Cover: Yunoyama Aodaki Falls
Yokkaichi City, where the second production site following Kyoto was established in 1938, faces the Ise Baywith smooth plains expanding from the Suzuka Mountain Range all the way to the Ise Bay. From the rich
mountain range blessed with nature to the east of the Ise Bay, a number of rivers pass providing water tofields. The water from Aodaki, the source of one of the Mitakigawa River located at the depths ofGozaishodake cascades down 50 m along the rock surfaces with tremendous force shattering the silencewith the sound of falling water.

Published in September 2013.
The next issue will be published in July 2014.