CSR REPORT 2023
Corporate Social Responsibility
April 2022-March 2023

Shaping a Sustainable Society
with Engineering Plastics< Trademark Attribution >DURACON® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
DURANEX® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
RENATUS® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
DURAFIDE® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
LAPEROS® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
TOPAS® is a registered trademark of TOPAS Advanced Polymers GmbH in Germany, the United States and other countries.
AKI-Lock® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
PLASTRON® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
DURAST™ is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
SARPEK® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.
DURACIRCLE™ is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.

About environmentally-friendly “T&K TOKA Best One KIRÉINA RIC-E100” next-generation ink
Rice ink derived from Japanese rice bran was used to print this document. This ink is characterized by a lack ofvolatile organic compounds (VOC). In addition, by using domestically produced raw materials instead ofimported raw materials, we significantly reduce the amount of CO2 emissions produced during shipping.
Compared with conventional VOC-free ink, this ink offers better offset resistance, setting, and drying as well as
resistance to blocking, which means less spray powder is needed during printing.
This document uses FSC®-certified paper.

Contact

Polyplastics Co.,Ltd.
CSR Group
General Administration Department
Corporate Support Division
JR Shinagawa East Bldg., 18-1, Konan 2-chome, Minato-ku, Tokyo 108-8280, Japan
Phone : +81-3-6711-8600
https://www.polyplastics-global.com

2023.08.1.5M.1st(1-01)CSR23-E

At a Glance
Supporting global manufacturing with engineering plastics

Corporate Outline
Company Name
Polyplastics Co., Ltd.
EstablishedMay 1964 (Founded: June 1962)
Capital3 billion yen
Shareholders
Daicel Corporation
Representative	Takashi Miyamoto,
Representative Director and President
Number of Employees	2,286(Polyplastics Group, as of March 31,
2023)
Business Operations	Manufacturing and sales of various
types of engineering plastics andpolymers

Polyplastics is Japan’s first specialized manufacturer of engineering plastics. Engineering plastics are made from functional
resins with such properties as superior mechanical strength and heat resistance. It is used in a variety of products, including
aircraft, automobiles, home appliances, and food packaging, and is indispensable to modern manufacturing. Through its networkof 32 bases spread across 13 countries and regions, the Polyplastics Group provides engineering plastics and technical support
to customers worldwide.

Editorial Policy
This report contains information about the activities the
Polyplastics Group conducted during the 2022 fiscal year. The
term “employees” as used in this report refers to all those whowork in the Polyplastics Group.

Number of Employees

2,286

R&D/Technical Solution Center

6

Production

7

sites

Sales

19

plants

China

Korea

ShanghaiSeoul

Applicable Period
April 1, 2022 to March 31, 2023

Organization Covered

officesUSA

Guangzhou
Shenzhen

Raunheim*Hong Kong

Nantong*

Oberhausen

Farmington Hills

Japan

Germany

The Polyplastics Group03

Our CSR

Mexico05

Top Message

Querétaro

HIGHLIGHT 202207 	
CO2 as a Resource for

Tokyo
Fuji

Leuna

Taipei
Kaohsiung

NagoyaOsaka

Contents

Engineering Plastics

09 	
Major Progress in Decarbonization
India

ASEAN

Delhi

Singapore

Pathum Tani

Mumbai

Kuala Lumpur

Jakarta

Chennai

Kuantan

Ho Chi Minh

Bangkok

Hanoi

Consolidated Net Sales

192.6
01

Advanced Control Technology
to TOX Process

billion yen

Engineering Plastics Business

13

Harmony with Environment

17 	Developing Talented and Engaging
Human Resources

Consolidated Operating Income

26.2

11

19

Social Contribution Activities

22

Compliance* There are 2 sales offices in Raunheim
and 2 plants in Nantong.
Created from data current as of the end of March 2023.

billion yen

AcetalCopolymer

Polybutylene
Terephthalate

Polyphenylene
SulfideLiquid Crystal
Polymer

Cyclic Olefin
Copolymer

Polyethylene
TerephthalateLong Fiber Reinforced
Thermoplastics

Engineering plastics fine
powderPolyetherketone

DURACON® POM

DURANEX® PBT

DURAFIDE® PPSLAPEROS® LCP

TOPAS® COC

RENATUS® PET

PLASTRON® LFT

DURAST™ Powder

SARPEK® PEK

Well-balanced mechanicalproperties and outstanding
sliding properties

Superior electrical properties
and reliability for electronic
devices and components

A linear polymer that isextremely tough and shock
resistant“Super Engineering Plastics”
with thin-wall flowability thatchallenges assumptions
about ­engineering plastics

Superior transparency andsafety suited to healthcare
and food packaging
applications

High heat resistance andsuperior electrical properties
rivaling those of thermosetting
resinsCombining rigidity and highimpact strength to expand thescope of resinification

Enabling improved properties,
streamlined manufacturing
process, and reduced material
loss

High strength and rigidity withhigher heat resistance anddurability to replace metals inharsh environments

02

Our CSR

Toward a Sustainable andAbundant Future for Society

Shaping a Sustainable Society
with Engineering Plastics
Shaping an abundant future for society through our engineering plastics business, mentioned in
our Corporate Philosophy, is our Corporate Social Responsibility (CSR).
We focus on CSR both in terms of business activities and social contribution activities, while

Circular
Economyactively working to meet the expectations of the global community in SDGs, Carbon Neutrality
and other areas.

CarbonNeutrality

Accelerating Polyplastics’ CSR with SDGs
As part of our efforts to facilitate and strengthen CSR activities
within the Polyplastics Group, we use the perspectives of theSDGs as important indicators when putting our approach to
CSR into action.

Business Activities
Contributing to Society throughOur Business Activities

Engineering Plastics BusinessContributing to the shaping of an abundantsociety through engineering plastics solutions

Harmony with Environment
Reducing environmental impact andcarrying out business operations inharmony with environment

CSR Policy
With the aim of shaping a sustainable andabundant future for society, we pursue

Corporate Philosophy

CSR in our business activities and social

Developing Talented andEngaging Human Resources
Utilizing and contributing to the d­ evelopmentof talented and engaging human resources

contribution activities as follows.

MISSION
We contribute to building an abundant future society
by innovation and developing talented andresponsible people, through pursuing the unlimited
potential of engineering plastics

VISIONThe excellent solution provider forengineering plastics
We will continue to provide the excellent solutions forengineering plastics to our customers, in technology,
quality, services, supply, and all other aspects

03

VALUE
1. The “Polyplastics-Way”: We create value together withour customers•W e always stand closest to our customers.
•W e understand customers’ needs by knowing our customers from the inside out.
•W
 e continue to provide higher-than-expected value based on brilliant technology
and services.
•F ollowing the above, we build strong relationships of trust with our customers andgrow and develop together with them.
• We call these activities the “Polyplastics-Way,” which is our most important basic value.

2.The “Polyplastics-Family”: Our teamwork•W e consider each other important. We respect individuality and diversity.
• We emphasize teamwork based on mutual trust and cooperation among all employees.
• At the same time, as a team, we embrace the challenge of seeking to constantly evolve.
• We call this team the “Polyplastics-Family,” which is our most important basic value.

Compliance

Social Contribution
Activities
Providing Opportunities forSocial Improvement

Prioritizing compliance and ­carryingout business in a socially fair andappropriate manner

Contributing to Society• Contributing to local prosperity• Cultivating the next generation• Supporting employee-led social­contribution activities

04Top Message

An Accelerating Shift toward a
Sustainable Society
In FY2022, there was a lockdown in China due to COVID-19
and a significant reduction in automobile production due
to semiconductor shortages.
The situation in Ukraine remained tense, raw material
and fuel prices rose, inflation increased worldwide,
logistics were disrupted, and exchange rates fluctuatedsignificantly.
Even in such a global situation, the market environment
around Polyplastics showed a steady shift toward nextgeneration technologies, including those using
networking facilitated by the introduction of 5G, alongside
an increase in the electrification of automobiles andrising competition in the development of products fornext-generation vehicles (CASE*). At the same time,
many countries continued to advance their environmental
policies and regulations, and corporate efforts towards
environmental load reduction accelerated.
For example, the EU has proposed rules requiring allcommercial packaging to be fully recyclable by 2030 andannounced the decision to implement the Carbon Border
Adjustment Mechanism (CBAM). The environment was
the major theme of the K 2022 international trade fair forplastics and rubber. Given this rapid paradigm shift
toward addressing environmental concerns, we havealso added an environmental element to quality, cost,delivery, and technology (QCDT). Furthermore, today, it is
becoming more and more important for companies totake sustainability into account, including human rights,
labor, safety, and compliance.

Meeting Requirements of the Future with
Innovative Engineering Plastics Solutions

05

Aiming for a Balance between
Economic and Environmental Issues
By offering an alternative to metals, our engineering
plastics have enriched the quality of our customers’ lives
by enabling miniaturization, lighter vehicles, and longer
product service lives. This shift from metals toengineering plastics will continue into the future, withproducts becoming smaller, vehicles becoming lighter,and more advanced functions being added to products.
As more automobiles become electric, demand forelectrical insulation for automotive parts will increase,and the use of engineering plastics with excellent
insulation properties, including PBT and PPS, will
increase. Heavier automotive batteries will force overall
weight reduction to save electricity. As a result, metals
will be replaced by engineering plastics more than everbefore. In the connected world of vehicle-to-everything,
the demand for LCP with a low dielectric constant will
increase as telecommunications become moreadvanced. Engineering plastics are thus essential to therealization of an abundant society in the future.
On the other hand, the production of engineering plastics
currently consumes a large amount of energy. Society has
relied heavily on CO2-emitting fossil fuels as its mainenergy resource since the Industrial Revolution and is now
at a major turning point. Most plastics are dependent on

fossil fuels for their raw materials, which causes resource
depletion. Furthermore, if disposed of improperly, they
become a source of environmental pollution and pose amajor challenge to sustainable society.
However, actions that address economic andenvironmental issues are not incompatible—they cancoexist. As part of the Daicel Group, we have set the highgoals of realizing Carbon Neutrality by 2050 andreducing GHG emissions by 50% by 2030 compared to2018 (Polyplastics’ target is to achieve a 46% reduction
per product unit compared to 2013). We consider it
essential for engineering plastics to be able to contributeto a recycling-oriented society with a Circular Economy
that treats waste as a resource. To overcome theindustry's highest degree of difficulty, we are also
committed to providing innovative solutions, including in
new businesses.
In FY2023, we are launching a new Re-compounding
Service that will provide customers with materials of thesame quality as virgin materials by strictly managing thequality of collected raw materials. In addition, the entire
Daicel Group will make the raw materials of engineering
plastics sustainable (biomass, etc.) and combine
chemical recycling, energy recovery, and using carbon asa raw material to build a recycling scheme for all
engineering plastics. In providing such innovative
solutions, we believe it is essential to utilize thetechnologies and products of the Daicel Group and othercompanies in the same industry.

Striving to Remain Our Stakeholders’First Choice
We will continue to be a “good company” so that we
remain our stakeholders’ first choice. Each of us has adifferent idea of what makes a company good. To holdon to our position as a leading company in this industry,
the following two things are essential. One is we shouldbe the first company that comes to mind when ourcustomers and business partners are thinking ofengineering plastics. The other one is to have our
employees work with pride here. We are committed tomeeting our stakeholders’ expectations for quality,
safety, environment, compliance, and a comfortable
work environment as well as to continuously offeringvalue that exceeds expectations. These expectations
may present a difficult challenges for realizing asustainable society, but there is no question thatengineering plastics will be indispensable materials wellinto the future. Therefore, we will overcome eachchallenge and continue to evolve going forward as aleading engineering plastics company.

Takashi Miyamoto
Representative Director and President*Vehicles with Connected, Autonomous/Automated, Shared, and Electric/
Electrified technologies

06

HIGHLIGHT 2022

CO2 as a Resource for Engineering Plastics
Innovative Solution making “Carbon Negative” possible
Until recently, the raw materials for engineering plastics have been derived mainly fromfossil fuels. Shifting to sustainable raw materials is the new solution for achieving Carbon

01
HIGHLIGHT

Neutrality by 2050, ultimately Carbon Negative.
We will introduce one of the innovative solutions Polyplastics is developing.

POM Suitable for Sustainability
POM, one of our leading products, is a resin that is extremely suitable for being made fromsustainable raw materials.
Methanol can easily be produced by fermenting biomass materials, therefore, the biomass
methanol is relatively popular in the market. Given this background, we have begun manufacturingand marketing DURACON® bG-POM utilizing biomass methanol. The chemical formula formethanol is CH3OH, which means that it is made from carbon dioxide (CO2) or monoxide (CO) andhydrogen (H2). Taking advantage of this feature, we are starting to develop innovative POM.

H
O

C
H

H
H

Chemical formula of methanol

Challenge for Carbon Recycling to Produce POM with CO2 as its Resource

Realizing Carbon Negative Products

Our newest product under development is POM called “POM contributing to carbon recycling,” made from CO2 and H2 captured
from manufacturing processes of the Daicel Group.
This POM is a low PCF product because the amount of CO2 used as raw material can be subtracted from the CO2 emissions
generated by the manufacturing process. This manufacturing process also reduces the amount of CO2 emitted into theatmosphere, making it an effective measure against climate change. “POM contributing to carbon recycling” is scheduled to be
manufactured and sold by FY2027.

Until now, we have emitted CO2 into the atmosphere as waste, but now we have developed a carbon recycling technology thatuses CO2 as a resource. As a result, in the future, we can see the realization of methanol that uses CO2 as a raw material not only
from the manufacturing process but also from the atmosphere. Using this methanol, we will work to realize Carbon Negative
products with a carbon footprint of zero or less.
We will simultaneously work to reduce CO2 emissions by conserving energy during the manufacturing process and using
renewable energy, aiming to further reduce our products’ carbon footprints.

Promoting the switch to sustainable raw materials in all engineering plastics
C
O

O
CO2

Group manufacturing
processes

H

H
H2

CaptureReduction

Capture

CH3OH(Methanol)

C
CO

O

DURACON® POM

H
CO+2H2

H• Preparations for expanding the Re-compounding businessOC

The Daicel Group has defined four types of sustainable raw materials: “biomass raw materials,” “recycled materials,”“atmospheric CO2 utilization,” and “reusing waste products.” The carbon-recycling raw materials introduced here contributesignificantly to the categories of “recycled materials,” “atmospheric CO2 utilization,” and “reusing waste products,” but we arealso making progress in the following initiatives to convert them into sustainable raw materials.

• Development of DURANEX® rG-PBT, made with 30% recycled PET

H• Development for environmental grades of PLASTRON® LFT (grades with long cellulose fiber or recycled PP)

H

We are shifting from raw materials derived from fossil fuels to sustainable raw materials, both for the POM
introduced here and for all Polyplastics products. We will continue to strongly implement Group-wide
efforts to provide innovative solutions to realize Carbon Neutrality, ultimately Carbon Negative.

07

08

HIGHLIGHT 2022

02

Major Progress in Decarbonization
Advanced Control Technology to TOX Process
Advanced energy conservation in processes that account for about 70% of CO2

HIGHLIGHT

Toward decarbonization , we have succeeded in introducing Advanced Control Technology (referred to as
ACT) into the TOX process (part of POM manufacturing) at the Fuji Plant, which was considered difficult in thepast. This technology can significantly reduce CO2 emissions and contribute greatly to the realization of adecarbonized society. Going forward, we plan to introduce this technology to our overseas plants.

Focusing on TOX Process

H

Successful quantitative modeling of conventional operations
Manufacturing processes at chemical plants consume considerable quantities of energy.
To achieve significant reductions in CO2 emissions, it is vital to cut back on this energy­consumption. In particular, the POM TOX process accounts for about 70% of the total CO2
emissions from the Fuji Plant, therefore, there was a need for technological innovation inthis process.

H

O

O

C

H
H

Methanol
MethanolH

Formaldehyde
Formaldehyde

C

O

C

O
C

C
H

C

O

C

Successfully
Successfully
introduced
introduced ACT
ACT

O

O
C

Polymerization
Polymerization

POM
POM

Challenges for TOX Process

CO2 Emissions Reduced Approximately 4,500 Tons per YearA TOX processing plant is a complex structure with multiple distillation columns,
which makes overall optimization extremely challenging. To introduce ACT into the
TOX process, we needed to quantitatively model the relationship between productquality and a huge volume of numerical data on such factors as pressure and flow
rate, data that was previously qualitatively managed by operators based on theirexperience and expertise.
To realize more advanced production, we launched the Fuji Plant Restructuring
Project in 2018 and incorporated “Production Innovations by the Daicel Way” in 2021.
In this approach, we improved and stabilized the plant infrastructure by visualizing
plant issues. As a result, the foundation for introducing ACT was prepared, making it
possible to ensure product quality above a certain level. This approach enabled us to
introduce ACT even under a complex structure. Reducing variations in quality alsoenabled us to achieve more optimal operation than ever before, contributing to significant energy savings.
Soft sensors that predict material composition after TOX distillation are also required in ACT. By quantitatively modeling therelationship between process data, such as pressure, and product quality, we were able to build a new soft sensor and make itpossible to predict composition with a high degree of accuracy.

By introducing ACT at the Fuji Plant, we successfully cut overall CO2 emissions by 4,500 tons annually and steam emissions by
34,000 tons annually. This was not only due to the reduction in energy usage in the TOX process.
ACT has also stabilized quality and reduced off-spec products, resulting in a significant reduction in the energy required torestart machines. As a side effect, the burden on operators has been greatly reduced by automating the operation control thatwas previously manual.

What Is Advanced Control Technology?
It is a technology that models and predicts the relationship between each process variable such as temperature and pressure
and product quality using simple formulas and that simultaneously controls and optimizes process variables to prevent quality
fluctuations. In a complex process spanning multiple distillation columns, it is difficult for operators to simultaneously track
and control every aspect, so optimization through ACT is very effective.

09

TOX
Process

Further Evolution in ACT and Expansion to Overseas Plants
Along with the shift to green energy, demand is constantly
growing for ever more advanced energy conservation.
Going forward, based on the technological knowledge
cultivated at the Fuji Plant, we will continuously expand ACT
to our overseas TOX processing plants and swiftly
introduce decarbonization technology at Group companies.
We will expand our Group-wide environmental load
reduction efforts to achieve decarbonization through our
products and services.

Our vision for innovative energy-saving
Introduction of ACT overseas

Introduction of ACT (current)“Production Innovations by the Daicel Way”
Fuji Plant
Restructuring Project

2018

2021

2022

2023 and beyond

10Engineering Plastics
Business

Subject

02

Contributing to shaping ofan abundant society throughthe provision of engineering
plastics solutions

A Full Range of Approaches to Development of
Customers’ Products for Environmental Load Reduction

We are a highly specialized engineering plastics manufacturer, and we provide technical support throughout every phase of ourcustomers’ products from conception to mass production, including in material development, processing, and performance
evaluations. Using this knowledge, we provide a variety of environmental technical support to our customers to reduce CO2 andwaste generated at every stage of product development.
Our Environmental Technical Support
Customerproduct
development

Subject

01

Planning

TrialsSimple examination
technology without
molding by 3D printerUsing PLASTRON® LFT

Void and sink markprediction technology

Environmental
technical support

AKI-Lock®*1 technology
for bonding different
resin materials
Metal-resin bonding
technology*2

Innovate Engineering Plastics Recycling Business
DURACIRCLETM Re-compounding Service

As many manufacturing companies are working toward Circular Economy to realize Carbon Neutrality,
we need to start actively using recycled materials in our products.
In recent years, Polyplastics has received feedback from our customers asking us todevelop products using recycled materials and to provide technical know-how. These
include the issues, anxieties, and requests of customers such as "We have to use
recycled materials, but we are concerned about the quality," "We want to usematerials with a low carbon footprint," and "We want to reduce the waste generated
in the manufacturing process," etc.
In order to solve such customer problems, we have started a new Re-compounding
Service. This service is an effort to give new life to molding scraps (sprues, runners,
and crushed pieces) generated in the customers’ manufacturing process as a new
Molding scraps
product without discarding them.
Different from the conventional simple process cycle (regrinding), we work with ourcustomers to manage the quality of the molding scraps, and use the manufacturing
technology we have cultivated over many years to manufacture recycled materials through process control and strict inspections.
The quality of this recycled material dispels any concerns customers may have. By partially using recycled materials, customers can
reduce the amount of virgin materials while maintaining product quality and functionality. Therefore, this is a great business
opportunity for us.
In addition, the use of these recycled materials leads to a reduction in the carbon footprint of the product, and also reduces theamount of molding scraps that customers have trouble disposing of.

Mass-based
trialsConception

Lightening of productswith advanced bonding
technology
Energy-saving during moldcreation and trial process

Gas generation analysis

Massproduction
Regrinding technology

Phase optimization*3
Foam molding*4
Lifetime prediction
technology using
CAE*5

Reducing waste byincreasing product life

Reducing number of trials
and saving energy

Reducing off-spec products

Enabling recycling ofengineering plastics

Enabling lighter product design

Added environmental Time-saving of feasible study
value for customers

Energy-saving
GHG emissions reduction
Waste reduction
This figure shows examples of our technology.

*1 Our original technology for bonding different materials*2 Adhesive-free metal and resin bonding technology through insert molding of
surface-treated metal*3 Technology to extract rough shapes that maximize strength and rigidity within
given design parameters*4 Technology to reduce the weight of products by molding resins using foaming
agents to create porous products*5 Computer Aided Engineering

Subject

03

3D Printing as a New Option for Engineering Plastics
New Solutions That Balance Economy and Environment

By establishing 3D printing technology to produce POM, we have been able to shorten our customers’ product development
processes, reduce energy consumption, and dramatically reduce the amount of materials and the amount of engineering plastics
waste generated during the product manufacturing process.
Shorter development process and less energy consumption without molds

Our Re-compounding Service

Point 03
Point 01
Collecting customers’
crushed pieces andreducing their waste

Virginmaterials
Sprue andrunners

Molded products

Molding products
at customers’ plants

Recycled materials
are used for 40% of
the total materials

Crushed pieces

Point 02
Re-compounding andadvanced quality
assurance with strict
process management*1

Molding scraps

PCF Reduction

CO2 Reduction

by

40%

Besides this, we are also conducting R&D related to the recycling of used engineering
plastics, which are difficult to collect as a
Ourmono material when they are mixed with other materials. Specifically, we are working on chemical recycling, energy recovery,*2 andReductiontechnologies to reuse the CO2 generated during combustion. Through these efforts, we are striving to offer recycling solutions forall of our engineering plastics in the future.
*2 Incineration of combustible waste, alone or with other wastes, with heat recovery.

This
less

Mold
creation

SavingMold
modification

Mold completion

Modeling andmass production

New products*1 Recycled materials are made by adding an appropriate amount of virgin material to the crushed pieces.

11

Conception and design

Confirmation ofmolded products

Shortening the process and reducing resource and energy consumption

Recycled materials

Re-molding
at customers’ plants

EnergyEnergySavingUntil now, the development of trial products by making molds multiple times generated many labor and other costs for
manufacturing and storing molds and also consumed a large amount of energy during machine operation. However, theintroduction of 3D printers without molding has significantly reduced costs and energy requirements. Furthermore, waste is also
reduced and products can be manufactured using a minimal amount of materials. The amount of materials needed can be
reduced by as much as half that used when die molding or cutting, depending on the situation. It has been difficult to control
warpage and shrinkage during 3D-printed POM modeling, but we have succeeded in creating optimal conditions.
We will continue to pursue research and development to increase the types of resins that can be used for 3D printing.

12Harmony with Environment
Reducing environmental impact and carrying out
business operations in harmony with environment

Subject

02

FY2022 Performance and Mid-Term Targets

CO2 Emissions Reduction
In FY2022, Polyplastics actively promoted
energy-saving activities at every plant, forexample, changing the ejector of the vacuum
unit to a motor at the Kuantan Plant in Malaysia.
On the other hand, emissions intensity slightly
increased because the Daicel Group’s selfconsignment of electric power was suspended
for about four months due to trouble.
We are planning large-scale growth investment
toward 2030, and CO2 emissions are expected toincrease accordingly, but we will realize thoroughenergy-saving through production andtechnological innovation as well as energy
conversion. We will reduce emissions to the levelin 2018 and aim to significantly reduce emission
intensity.

Subject

01

Environmental Promotion System

Daicel Group total CO2 emissions (Scopes 1, 2)
Daicel Group total CO2 emissions
Polyplastics Group total CO2 emissions
Polyplastics Group CO2 emissions intensity(k tons)(intensity)

2,500

1.60

2,000

GHG Reduction Targets for 2030
Daicel Group
Total GHG emissions(Scopes 1, 2)

50%

reduction(vs. 2018)

PCF-focused GHG
emissions intensity(including CO2 derived from raw materials)

46%

reduction(vs. 2013)

Under Corporate Philosophy, Group Code of
Conduct, and Polyplastics’ CSR Policy, we actively
work on reducing the environmental burden in all
business activities of product development,
production, and sales, aiming to achieve both
economic development and global environmental
conservation. We will contribute to the realizationof possible social development.

2. Contribution to environment throughour products	We improve the convenience of society through our
products and contribute to the development of arecycling-oriented economy by reducing the size,

reduction(vs. 2018)

1.00

1,000
0.84

500

0.80
686

Dust from the dust collector of thecompounding machine at the Kuantan Plant
that had formerly been disposed of in landfills,
has been used as a raw material for cement
since FY2022. This resulted in a 6.5 point
decrease compared with the previous year of
the landfill and incineration without heatrecovery rate to 10.8%.
We will continue to actively work towards theachievement of zero-emissions for the group.
Until now, the landfill and incineration ­without
heat recovery rate has been set asa management indicator, but starting in 2023,
the Daicel Group set the recycling rate* as the
new indicator.
* Recycling rate = Amount recycled (including salable
resources) / Total by-products and waste generated

Target

648

640

651

647

2018 2019 2020 2021 2022

600

0.60

2030 (year)

14.9%

under

ResultMid-Term Target

10.8%

By 2030

Achievezero-emissions
for the group

Landfill and incineration without heat recovery rate
Group target
Group performance(%)(landfill and incineration without
heat recovery rate under 1%)

40

By 2025
Group recycling rate30

20

At least

14.9
10.8

10

0

social issues such as environmental problems

97%

Corporate Management
Meeting

conservation.

3. Reducing the environmental burden in all
business activities
	In all business activities such as product development,
production and sales, we actively work on protecting
the global environment, including the following

load• Reduction of CO2 emissions to mitigate climatechangeCommittees
etc.

Administrative Office• Promotion of energy saving activities• Reduction / Reuse / Recycling of waste• Reduction of emissions of chemical substances andwaste to air, water and soil
• Utilization of renewable energy

NEW

Carbon Neutral
Business
Strategy Office(year)and solutions that contribute to global environmental• Regular and quantitative grasping of environmental

Collaboration

2016 2017 2018 2019 2020 2021 2022

through the development and provision of products

initiatives.

Environmental Strategy
Promotion
Subcommittee

50%

1.40

1.21

1.20

Industrial Waste Reduction	In addition, we continue to actively address to solve

From the perspective of CSR and strengthening businesscompetitiveness, in April, we newly established the Carbon Neutral
Business Strategy Office in addition to the existing Environmental
Strategy Promotion Subcommittee.
To meet our customers’ growing environmental needs, we will
provide comprehensive environmental solutions, including market
development that positions Circular Economy as a business
opportunity and activities that address demand for GHG reduction
while continuing to supply green products.

Sustainable
Management
Committee

1.36

1.34

(Scopes 1, 2)

weight and life of our customers' products.

CSR Promotion System

CSR Committee

1.35

By 2030
Daicel Group
Total GHG emissions

Polyplastics Group Environmental Basic Policy

1. Compliance with environment-related
regulations

Polyplastics Group

1.33

1,500

0

Newly established the Carbon Neutral Business
Strategy Office
Meeting customers’ strong environmental needs

13

Mid-Term Target• Effective use of water resources

Reducing Emissions of Chemical
Substances (PRTR Substances*1)
In FY2022, we completed repairs to theexhaust gas combustion facility, which had
been shut down due to trouble that occurred in
the previous year, and emissions of PRTR
substances into the atmosphere were reduced
by approximately 67% from the ­previous year.
In 2023, we will install “PRTR substanceemission control combustion equipment”*2 inour major emission sources, and work toward
our 2024 target of a 75% reduction in total
emissions (Fuji Plant) compared to 2019 levels.
*1 Pollutant Release and Transfer Register*2 Capable of reducing PRTR substance emissions by up
to 95%.

Mid-Term Target
PRTR emissions
PRTR substance emissions

By 2023, reduction of
PRTR substance emissions (left axis)
Fuji Plant production volume (right axis)(kg)
30,000(t)160,000
140,000

25,000139,246

20,000120,000

15,000100,000

50%
75%
reduction reduction
8,315 compared compared
to 2019
to 2019

10,00080,00060,000

5,000
0

2019
(BM)

2020

2021

2022

2023 2024(Target) (Target)(Year)

050%(Fuji Plant vs. 2019)

By 2024, reduction of75%(Fuji Plant vs. 2019)

VOC
Establish VOC
Measurement Methods
and Benchmarksby 2022

4. Fostering an environmental mindset

14

Subject04
Subject

03

Challenge to Reduce Product Carbon Footprint by 46%
Realizing Optimized Visualization for Customers

In recent years, customers have started putting more importance on environmental
added value when choosing a product or service in addition to the usual
considerations of quality and price. Under these circumstances, there is growinginterest in systems that convert GHG emissions throughout the product life cycle into
CO2 and display them in an easy-to-understand manner (product carbon footprint,
hereinafter PCF). Polyplastics also receives the requests from our customers todisclose and reduce PCF.
To meet these needs, we have set ourselves the challenge of reducing our PCF by
46% (cradle-to-gate basis) by 2030, compared to 2013 levels. As the first step towardachieving this target, we completed the calculation and the preparation fordisclosure about PCF for more than 90% of our product grades in 2022 (grades soldin FY2021).

2022

PCF calculation

2023 andbeyondPCF reductions by grade2030

PCF reduction by46%

Beyond Visualization

In FY2022, for the first time in about 30 years,* we built
a new compound plant at the Fuji Plant.
Since the location for the new facility is neara r­ esidential area, this building was constructed withmaterials with high thermal and acoustic insulation tominimize noise leakage and odor. There were also­concerns that the building would be too hot inside
during summer. To prevent heatstroke, we introduced anenergy-saving air conditioning system that makes effective
use of well water.
This system uses less energy than normal air
conditioning to cool the air by exchanging heat between
the cold temperature of the well water and the hot­temperature of the intake air from indoors. In thissystem, impurities are not mixed in the well water,
therefore it can be still utilized as industrial water after
New compound plant
being used for air conditioning.
The amount of well water used at the Fuji Plant willremain the same, and we have already confirmed in advance that there will be no adverse effects on land subsidence, water
sources, or wastewater.
The air conditioning system will start operation in the summer of 2023.
* First expansion construction with new building in 14 years, and first expansion of a line for compounding in 31 years.

PCF is calculated in line with the ISO 14067, and it is very important to consider the type of input data, the accuracy of emission
factors, and how to calculate the PCF of biomass raw materials or waste materials. For example, if general-purpose inventory data
is used instead of the latest primary data representing the actual state of raw materials and fuels, it will be impossible toaccurately measure the effect of PCF reduction. Therefore, it is important to use as much of the latest data as possible to ensure
accuracy. Also, for internal emissions (Scope 1 and 2), it is necessary to establish a system for PCF calculation with rationalboundary setting and accurate data aggregation as the foundation for steadily promoting PCF reduction activities.
In FY2022, we began working towards these challenges, and now we are able to accurately calculate PCF, provide information tocustomers, and conduct reduction activities going forward. Furthermore, we have also established a system that provides PCF
calculation results using customer relationship management (CRM) for prompt disclosure to our customers.

PCF Calculation Method

Suppliers

Polyplastics

Scope 3

Scope 1・2

CO2 fromraw materials

CO2 during
production

Customers

Scope 3

PCF Calculation Method and Reduction Targets

CO2 emitted during
manufacturing

Subject

05

Award for Excellence in Odor Control

In FY2022, the Nantong Plant (China) received an award for excellence in odor
control from the government of the Nantong Economic and Technological
Development Area (NETDA). We were selected as one of the first 10 out of the
70 companies within the NETDA to receive the award.
The Polyplastics Nantong Plant has been recognized for its employees’
active participation in proposing improvements to odor prevention in the
manufacturing process, and for the teamwork among departments in
implementing such improvements. The plant manager committed human,material, and financial resources to these activities, and this was praised
highly and was a main factor in receiving the award. Going forward, we willcontinue optimizing our manufacturing processes to reduce odors, andregularly communicate the importance of such activities.

Examples of Odor Prevention

Cradle to Gate

CO2 derived fromraw materials

Air Conditioning System Utilizing Well Water

÷

Production
volume=This calculation is applied to the top 90% of grades produced

By 2030

PCF

Covered the wastewater treatment tank tocollect and process odors

ReducedbyInstalled 52 closed samplers to reduce theexhaust gas generated during thesampling process

Odor leakage prevention measures havebeen implemented at approximately
500 discharge points in total to prevent
odor leakage

46%

Entire Supply Chain Working Together as One Team
Now that our PCF calculation is completed, the next step toward 2030 is to reduce PCF. For the processes in which we
manufacture our own monomers and polymers, we will actively promote energy conservation and energy conversion to reduce
PCF. On the other hand, achieving our PCF reduction targets will also require enormous support from all of our business partners,
including raw material and other material suppliers, transportation company, and subcontractors. We will share our ambitious goal
throughout our supply chain and will work together as one team to implement visualization and reduction activities.

15

BeforeAfter
Blind plates and plugs are installed at discharge points thatare operated less frequently (left), Double valves are installedat discharge points that are frequently operated (right)16

Developing Talented
and Engaging Human
Resources
Utilizing and contributing
to development of talented
and engaging humanresources

Subject

01

Developing Engaging Work Environment

To create a work environment where everyone can play an active role with satisfaction, the Polyplastics Group has set “enhancing
employee engagement” as one of the CSR priority areas and the measures in the Mid-Term Business Plan. Based on the results ofour regular engagement surveys, we grasped the organization culture of local Group companies in each country and region as wellas the opinions of employees and are developing measures at each company accordingly.

“Supply Chain Channel” for Positive In-Division Communication
The Group’s supply chain consists of more than 200 employees across all its plants and sales companies around the world.
Overall regular communication (e.g. monthly meetings) and individual communication between the persons in charge havebeen taken. However, there was not much communication between employees with different responsibilities.
In FY2022, Polyplastics started publishing its in-division newsletter, “Supply Chain Channel,” to improve employee
engagement by creating more opportunities for positive communication with everyone working together as one team.
Three employees in the division are in charge of editing. They publish contents that focuses on specialized businessknowledge and the feelings of members in the division that cannot be found in Group company magazines.
In addition, in order to provide variation in the information provided in “Supply Chain Channel,” they interview and write articles
on the corporate philosophy and activities of business partners such as warehouse companies, resulting in deeper
communication with them. This has also served as an opportunity to explore how we can reduce the PCF together as well as
promote responsible mineral procurement, which requires everyone in our supply chain to work together going forward.

Subject

02

New Challenges for the Job Support TeamIn the Job Support Team, which is made up of our employees withdisabilities, a diverse range of duties are assigned based on each
employee’s aptitude.
In FY2022, the team started a new initiative in which they make recycled
candles from discarded candles from local temples and transform theminto new scented candles. The candles are donated by temples throughout
Shizuoka Prefecture, where the Polyplastics Fuji Plant is located. They
crush the candle, melt it, color it, flavor it and harden it to make a newscented candle. This entire process is done by five members of the Job
Support Team.
In the first year of the project, 20 prototypes were created from approximately
10 kilograms of candles, and samples were given to employees to help themrelax the bodies and minds. Going forward, after getting feedback from
employees who have used prototypes, they are planning to expand the
project by donating the candles to local ceremony halls and handing themout as souvenirs to participants in corporate briefings and plant tours. In the
future, they are also planning to sell the candles at bazaars and flea markets,and then donate the proceeds to charity.

Subject

03“White 500” for the First TimeWe believe that employees who are healthy and energetic are more likely to
be fulfilled in their personal lives and contribute to the continuous
development of the company. Thus, we have been working on healthmanagement by implementing various measures promoting health. Basedon the Daicel Declaration on Health Management, the healthcare team at
Polyplastics, consisting of our HR department, public health nurses, andoccupational physicians, centrally supports employee health management
through medical checkups and guidance, as well as through stress checks that help us understand and reduce employee stresslevels. Furthermore, we have established a collaborative system between Polyplastics’ public health nurses and Daicel’s team of
public health nurses to share information and solve issues, as well as to provide ongoing awareness such as “Public Health Nurse
News,” published regularly.
In March 2023, these efforts were recognized and Daicel Corporation and Polyplastics were certified as a “Health and Productivity
Management Organization 2023 (White 500)” by the Ministry of Economy, Trade and Industry and Japan Health Council. This was
the first time that we were certified as a “White 500” company.

In the future, they will aim to make the in-division newsletter even easier to read and worth reading while meeting readers’needs. They are also considering holding events such as town-hall meetings as a derivative project from this newsletter.
Through these efforts, they are aiming to further strengthen communication throughout the division and increase engagement.

Vol.001

D ATA
Childcare Leave Usage Rate

Rate of Employees with Disabilities

The childcare leave usage rate for employees with children born in
FY2021 was 100% for women and 70.4% for men. Although thechildcare leave usage rate for male employees decreased by 12.5
points compared to the previous year, going forward we will actively
encourage male employees to use childcare leave.

In FY2022, the rate of employees with disabilities was 2.10%, lower
than the previous fiscal year. We will exchange information withlocal special needs schools and also with organizations that
support people with disabilities to expand our recruitment activities
more widely and actively recruit people with both physical andintellectual disabilities.
(%)
2.5

BM* 85.1%

Women

2.3

BM* 14.0%“Supply Chain Channel”

17

20

40

60

80

2.39

2.26

Statutory employment
rate 2.3%*2

2.2

70.4
0

2.43

2.4

100

Men

Statutory employment
rate 2.2%*1

2.10

2.1
100

*Bench Mark (Source: Ministry of Health, Labor and Welfare Basic Survey ofGender Equality in Employment Management in FY2021)

0

(%)

2019

* from April FY2018
1

2020

2021

2022

(FY)

* from March 2021
2

18

Social Contribution
Activities
Providing opportunities tomake society better as acorporate citizen

Raunheim

Fuji

Supporting local beekeepers“Autumn Clean Operation”

In Raunheim (Germany), employees sponsor a local beekeeper
group that protects the bees in the area near the office,­supporting its activities. In thanks, beekeepers give freshly
harvested honey to the Raunheim employees and their families.

In the Fuji area (Japan), employees participate in the “Autumn
Clean Operation” every year, which includes cleanup activities
on river embankments, beaches, etc., organized by locals­living near the plant.
In FY2022, in addition to 40 employees and their families, themembers of the SHIZUOKA BlueRevs rugby team, our partner,
volunteered to pick up empty cans, bottles, PET bottles, scrap
iron, plastic trash, etc., on embankments and beaches.

Subject

01“Working Together Worldwide as a Group for a Better Society”

At Polyplastics, we carry out various social contribution activities as a group every year.

Cultivating the next generation

Three Pillars of Social Contribution Activities

Cultivating
the next generation

Contributing tolocal prosperity

Supporting employee-ledsocial contribution activities

Contributing to local prosperity

19

Nantong, Shanghai

Kaohsiung

Participated in volunteer activities
related to COVID-19

Participated in the Kaohsiung
Charity Marathon

Amid the COVID-19 situation,
employees from our companies in
Nantong (China) and Shanghai(China) participated as volunteer
PCR testing staff in nearby areas.
Some employees in Shanghaidelivered daily necessities to local­residents during the lockdowns
while others volunteered withelderly people living alone, helping them purchase necessities
through their smartphones.

21 employees participated in
the Kaohsiung charity
marathon, completing therunning courses to promotehealth and the Company’s
relationship with thecommunity. Participation
fees are donated to a welfareorganization through thecharity marathon’s organizer.

Bangkok

MumbaiDonated handmade flashcards

Lecture on engineering plastics for
EV applications to university students

In Bangkok (Thailand), employees handmade 960 flash cards(educational materials for young children) with colorful­illustrations. The completed flashcards were delivered tochildren attending nursery school in Nong Khai province innortheastern Thailand.

In Mumbai (India), an employee gave a lecture to a group of
30 students in the engineering department on the newest
applications for electric vehicles, introducing industry-wide
trends and their relevance to engineering plastics.
The students were enthusiastic and had many questions andcomments about the future prospects of our products.

Kaohsiung

KuantanHosted an art competition withan environmental theme

Donated hydroponics equipment toa children’s home

In Kaohsiung, employees held an art contest themed on the
global environment for students at an elementary school aswell as children of employees living near the plant. A total of
37 entries were received and the winners were awarded
scholarships.

In Kuantan (Malaysia), employees donated hydroponics
equipment made from recycled materials to 20 children living
in a children’s home. Also, employees explained how to use
the equipment to the children and helped them succeed inhydroponic cultivation.

20

Supporting employee-led social contribution activities
Singapore

Querétaro

Working with a National Charity for
Food Donations

Donated Approximately 5,400 PET
Bottle Caps

Employees collaborated with the Food Bank Singapore, acharity organization that provides food assistance to nursing
homes and children’s homes, and they personally delivered 50
bags of assorted groceries to local families in need.
Approximately 80% of our Singapore employees p­ articipatedin these activities.

In Querétaro (Mexico), every employee participated in the­collection of approximately 5,400 PET bottle caps for six
months. These caps will be donated to a charitableorganization, which will then recycle the caps into ­furnitureand home goods. The proceeds were donated to support
children fighting cancer.

Compliance
Prioritizing compliance and carry out
business in a socially fair andappropriate manner

Subject

01

Compliance Operational Structure

Polyplastics implements compliance measures from the two perspectives of “Prevention” and “Response” and strives to ensure aneffective compliance operation system.

Prevention
Seoul

Hong Kong

Taking on the Challenge ofMaking Vegan Soap

Participated in Social Contribution
Event to Learn about Fair Trade

In Seoul (South Korea), employees participated in a vegansoap making workshop, using only environmentally friendly,
plant-based ingredients. Through this experience, employees
deepened their understanding of the negative impacts thatchemicals found in typical soaps on the market have on theenvironment. They also used the vegan soap they made.

In Hong Kong, 12 employees participated in the Fair Trade
Coffee Game, a social contribution event held by a non-profit
organization. Through lectures and group work, using theexample of how coffee progresses from production to sale,they ­deepened their understanding and knowledge of fair trade.

Careerstage-specificeducation and training

Response

Individual legal
training

Compliance
Awareness MonthE-learning education

All employees raise
their complianceknowledge and awarenessKnowledge

Whistle-Blowing
SystemCompliance Report

Knowledge

Knowledge

Awareness

Awareness

Cultivate their knowledge and awarenessthat leads to putting action into practice

Early detection
and quick response

Subject

02
Tokyo, Fuji, Nagoya, Osaka“Mottainai* Initiatives” in 2022
We have carried out “Mottainai
Initiatives” for five consecutive
years, collecting items that are nolonger being used at home anddonating them to non-profit
organizations. Until now,
Polyplastics offices and plants inTokyo, Fuji, Nagoya, and Osakahandled these initiatives, but
starting FY2022, employees from Daicel also joined in, and wewere able to collect 2.5 times more items for donation that in
the previous fiscal year.

21* Mottainai means “What a waste!” in Japanese.

Unique and Original Initiatives by Each Group Company

Every August is Compliance Awareness Month and eachGroup company undertakes unique activities aimed atenhancing the effectiveness of the entire Group’s compliancesystem. At the Polyplastics Group company in Malaysia,
employees put up original posters in such high-traffic spots
as the main entrance and those to various departments,
looking to ­communicate the importance of compliance toemployees in a more accessible way. At the Group company
in Taiwan, the managing director issued a message toemployees on the importance of compliance and thecompany also conducted a compliance slogan contest andpublicly awarded the top three entries.
In addition to these, very unique efforts are being made byeach company, such as compliance crosswords andcompliance four-panel comic contests.

SloganOriginal poster

Four-panel comic contest

22