ZeonGroup
ゼオングループ
Sustainability Report 2023
サステナビリティレポート
2023

SUSTAINABILITY REPORT 2023

2

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Contents
Editorial Policy

P. 3

Messages from Management

P. 4

Human Resources

P. 29

Overview of the Human Resources
Message from the President

P. 4

	Message from the Corporate
P. 5

Sustainability Division Manager

Strategy

P. 29

	Initiatives to AchieveGroup-Wide Strategies

P. 31

Diverse Human Resources

P. 33

Promotion of Health and Productivity
Zeon’s Sustainability

P. 6

Management and Freedom/Well-BeingP. 36

Basic ApproachP. 6

Reformation of the Personnel System

P. 41

Sustainability Management

P. 7

Organizational and Human

Sustainability Promotion Plan

P. 10

Resources Development

P. 42

Occupational Health and Safety

P. 44

Timeline of CSR/Sustainability Initiatives P. 11
Environment

P. 12

Environmental Philosophy
and Safety Philosophy

P. 12

Environmental and Safety Management P. 14
Overview of Environmental Impacts

Occupational Safety

P. 44

Safety and Accident Prevention

P. 45

Environmental and Safety Education

P. 47

Topics

P. 49

P. 15

Economic Indicators of Environmental

Quality Assurance

P. 51

Performance (Environmental Accounting) P. 16

Basic Approach and SystemP. 51

Climate Change

P. 17

Quality Assurance Initiatives

P. 51

Chemical Substances Management

P. 20

Air, Water, and Waste Materials

P. 22

Chemical Product Safety Information

P. 24

Basic ApproachP. 54

Environment and Safety in Logistics

P. 25

Social Contribution Activities

P. 54

Information Disclosure

P. 59

Human Rights

Community

P. 54

P. 26

Upholding Positive Working Environments
by Protecting Human Rights andCorporate Governance

P. 60

Corporate Governance

P. 60

Risk Management

P. 62

Becoming a Signatory to the United Nations

Compliance

P. 63

Global Compact and Participating in

IR CommunicationsP. 64

Prohibiting Discrimination

Subcommittee Activities

P. 26

P. 28
ESG Data

P. 65

Environment

P. 65

SocialP. 66

Governance

P. 68

GRI Content Index

P. 69

United Nations Global Compact Index

P. 73

SUSTAINABILITY REPORT 2023

3

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Editorial Policy
Zeon Corporation and Zeon Group (“Zeon”) publish
an Integrated Report, which provides stakeholders withan overview of Zeon’s business activities. Zeon also
publishes a Sustainability Report, which is intended
to help stakeholders understand Zeon’s approach tosustainability and its environmental activities.
Besides bringing together information about Zeon’s
sustainability approach and measures, this Sustainability
Report is also intended to function as a communication
tool, with the aim of fostering dialog with Zeon’s
stakeholders, so that Zeon can play an even more usefulrole in the world. We look forward to hearing your frankcomments and suggestions regarding the Sustainability
Report, which can provide a useful reference for us in our
future activities.

Reporting Period
April 2022 to March 2023 (includes some information
relating to the period in and after April 2023)

Reporting Scope
Zeon Corporation and Zeon Group companies insideand outside Japan.
Some data covers only Zeon Corporation.

Reporting Scope for Environmental Data
Takaoka Plant, Kawasaki Plant, Mizushima Plant,
Tokuyama Plant, Himi Futagami Plant, Tsuruga Plant,
Zeon Kasei Co., Ltd., Zeon Polymix Inc., Zeon Medical
Inc., Zeon North Co., Ltd., Tokyo Zairyo Co., Ltd., RIMTEC
Corporation, Zeon Yamaguchi Co., Ltd., Zeon Chemicals
Yonezawa Co., Ltd., Tohpe Corporation, Zeon Opto Bio
Lab Co., Ltd.

Reference Guidelines
Determined with reference to the 2018 Environmental
Reporting Guidelines promulgated by Japan’s Ministryof the Environment (MOE), and with reference to GRIStandards.
Direct inquiries to: Corporate Sustainability Department(publishing department), Zeon Corporation
Shin Marunouchi Center Building, 1-6-2 Marunouchi,
Chiyoda-ku, Tokyo 100-8246, Japan
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604
https://www.zeon.co.jp/index_e.html

Date of Publication
March 2024 (previously published in April 2023)
Revised June 2024 (P.56)

SUSTAINABILITY REPORT 2023

4

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Messages from Management
Message from the President
At the Zeon Group, our mission has been embodied in our corporate philosophy of “contributing to
the preservation of the Earth and the prosperity of the human race.” We conduct our business aspiring torealize a “Sustainable Earth” and a “Safe and Comfortable Life” by providing products and services
created using our original technology. Our corporate philosophy also ties into our company name, derived
from the Greek words “geo” (Earth) and “eon” (eternity), encompassing the very concept of sustainability.
Achieving sustainability is therefore synonymous with putting this corporate philosophy into practice.
However, against the backdrop of various increasingly grave challenges such as the pressing need tocombat climate change and growing instability in world affairs, concerns over our collective ability toachieve sustainability in society are rising. We at the Zeon Group need to reaffirm our principles and put
our mission into practice with even greater conviction and commitment.
In STAGE30, the Zeon Group’s Medium-Term Business Plan with a target year of FY 2030, we set our
Vision for 2030 as to be “A company that lives up to societal expectations and the aspirations of
employees” and established our group-wide strategy accordingly. We aim to realize our vision throughour initiatives to contribute to the SDGs, in other words, through realizing sustainability management.
Innovation is key to our Group fulfilling the expectations of society. We believe that the innovative
materials and services created by the power of chemistry have the ability to resolve social challenges andfundamentally change the future of the planet and the human race. It is most definitely people that will
create this innovation. As long as you have ideas and are willing to act on them, anyone can makeinnovation happen. Innovation is not sparked by only select geniuses. Our human resource strategy is
about creating systems and a company culture to spark innovation and developing people who will spark
innovation. Put another way, our human resource strategy is to have all employees create “stages” thatallow every employee to demonstrate their talents. By giving employees stages for their motivation, we
will generate innovation that lives up to societal expectations and contribute to sustainability in society.

Tetsuya Toyoshima
President and CEO

SUSTAINABILITY REPORT 2023

5

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Message from the Corporate Sustainability Division Manager“Based on our corporate philosophy of ‘contributing to the preservation of the Earth and the prosperityof the human race,’ sustainability at Zeon means achieving sustainable growth together with society. To
achieve this, we will provide products and services that are valuable for solving global and social issues,build trust with our stakeholders through fairness and integrity and have each one of us act proactively
thinking how to create a better future for the society and ourselves.”
This is how the Zeon Group defined sustainability in its Sustainability Policy established in July 2022.
It is both the Zeon Group’s basic approach to advancing its business, and at the same time a promise to
our stakeholders of the attitude we most value in our relationships with them.
We have set the goal of contributing to the SDGs in our Medium-Term Business Plan: STAGE30 andaim to deliver both solutions to social issues and sustained growth for the Zeon Group through ourbusiness activities. We are implementing a variety of initiatives to improve sustainability, including
providing original technologies, products, and services to help solve social issues, achieving our 2050
target of carbon neutrality, increasing employee engagement, and conducting human rights due diligenceand sustainable procurement. We established the Sustainability Conference and the Sustainability
Committee in December 2022, thereby building a framework to respond cross-functionally anddynamically to sustainability-related issues.
To achieve sustainable growth for our Group and society, we are defining the materiality (priority
issues) that underpins our sustainability management. Going forward, we will organically link the
initiatives and indicators in STAGE30 based on this materiality and aim to make it a driver for achieving
our Vision for 2030 of being “A company that lives up to societal expectations and the aspirations of
employees” as well as further sustainability.
We will continue aiming for sustained growth in our Group and society. Employees will conduct
activities with a focus on sustainability, and through dialogue and collaboration with stakeholders, we will
work to realize a brighter future for all.

Erisa Watanabe

Director & Corporate Officer
Corporate Sustainability Division Manager

SUSTAINABILITY REPORT 2023

6

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Zeon’s Sustainability
Basic Approach
Sustainability ManagementSustainability Promotion Plan
Timeline of CSR/Sustainability Initiatives

P. 6
P. 7
P. 10
P. 11

Basic Approach
Corporate Philosophy
Contributing to the preservation of the Earthand the prosperity of the human race
In keeping with its name, derived from the Greek words “geo”(Earth) and “eon” (eternity),
Zeon will contribute to a “Sustainable Earth” and “Safe andComfortable Life for People”
by providing original technologies, products, and services.

Sustainability Policy
On July 1, 2022, we adopted a new Sustainability Policy to replace our existing CSR Policy.

Sustainability of Society

Sustainability Policy (Adopted on July 1, 2022)

ocial issues = Sustainabl
e des to s
n
o
i
vel
t
op
olu
s
o
s
t
o
s
c
r
n
i
a
o
i
l
t
i
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sues
Solu
①

③

Fur
th

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me

• We aspire to realize a “Sustainable Earth” and “Safe andComfortable Life”.
• We will firmly maintain fairness and integrity in our activities
to be a trustworthy company.
• Each of us will think and act proactively for a better future.

Based on our corporate philosophy of “contributing to
the preservation of the Earth and the prosperity of thehuman race”, sustainability at Zeon means achieving
sustainable growth together with society. To achievethis, we will provide products and services that are
valuable for solving global and social issues, build trustwith our stakeholders through fairness and integrity andhave each one of us act proactively thinking how tocreate a better future for the society and ourselves.

SocietyZeon④② Pr o ﬁ t

F urt

h er proeﬁt = S u stain a bl

gro w

th

Sustainability of Zeon

Explanation of the schematic diagram
Zeon’s Sustainability Policy can be explained with reference to the schematic diagram shown above. Firstly, the inner arrows(① and ②) represent how, by helping to solve social issues and providing new value for society, Zeon itself can also obtainprofits in return for providing this value. Arrows ③ and ④ show how continuing to implement a “virtuous circle” can lead tosustainable development for society and continued growth for Zeon. The image in the middle representing two people shaking hands denotes how, by realizing this kind of virtuous circle, the relationship of trust between society and Zeon can befurther strengthened.

SUSTAINABILITY REPORT 2023

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

CSR Code of Conduct
Based on the Zeon Corporate Philosophy andSustainability Policy, we have established the CSR
Code of Conduct, to serve as a guideline for each andevery employee to earn the trust of society and act inaccordance with its expectations.

CSR Code of Conduct
https://www.zeon.co.jp/en/csr/concept/
pdf/000257956.pdf

Sustainability Management
Organizational Bodies and Committees
In December 2022, we newly established theSustainability Conference and Sustainability Committee
as organizational bodies tasked with reviewing andpromoting group-wide sustainability initiatives. Boththe Sustainability Conference and the CSR Conference
are chaired and overseen by the President, with reports

delivered to the Board of Directors on an as-neededbasis. Risk management and compliance are handled
by the CSR Conference, while general sustainability
issues besides these are handled by the Sustainability
Conference.

Conferences and Committees Promoting Sustainability

Board of Directors
Representative Director
Executive Committee
Department ofInternal Auditing

Sustainability Conference

Sustainability Committee
Risk Management Committee
Compliance Committee
Information Management Committee

CSR Conference

Environmental and Safety Affairs Committee
Quality Assurance Committee
PL Committee

Business divisions, indirect departments,
laboratories, and plants/
Subsidiaries and affiliates
Sustainability Conference

Purpose of establishment: Established as the highest
decision-making body to address sustainability andrelated issues
Function: Deliberates on and finalizes decisions related
to the various activities and policies of the
Sustainability Committee. In addition, fields
progress reports and issues instructions asneeded.

Public Relations Committee
CSR Conference

Purpose of establishment: Established as the highest
decision-making body for CSR activities, with a focus onrisk management and compliance, which comprise thefoundation for achieving sustainability
Function: D eliberates on and finalizes decisions related to thevarious activities and measures of the Compliance
Committee, Risk Management Committee,
Public Relations Committee, Quality AssuranceCommittee, PL Committee, Environmental and
Safety Affairs Committee, and the Information
Management Committee. In addition, fields
progress reports and issues instructions as needed.

SUSTAINABILITY REPORT 2023

8

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Sustainability Committee

Purpose of establishment: Promotion of initiatives toengage with various sustainability issues
Function: Formulates policies for medium- to long-term
activities relating to sustainability; develops
annual plans and targets/indicators; considers
important promotional measures; and performs
checks on implementation status. These
activities are also discussed with and reported
to the Sustainability Conference. Thematic
subcommittees under the jurisdiction of
the Sustainability Committee will also beestablished as needed.

Risk Management Committee

Purpose of establishment: Manage business continuity
risks
Function: The committee is responsible forsystematically preventing potential risks andmanaging risks that emerge. It also aims toprovide disciplined response to minimize
loss in the event that a crisis does occur. For
details on its activities, see Risk Management.
(→P. 62)

Compliance Committee

Purpose of establishment: Prevent violations of laws
and regulations
Function: The Compliance Committee is responsible forcreating compliance education and training
programs to be implemented by managing
business divisions. The Compliance Committee
has the following three subcommittees: theAnti-trust Law Regulatory Subcommittee, theExport Security Control Subcommittee, andthe Corporate Governance Subcommittee.
For more information about its activities, seeCompliance. (→P. 63)

Information Management Committee

Purpose of establishment: Appropriate management of
information
Function: Planning, implementation status management,
and formulation of proposals for improvement,in regard to the appropriate management of
information.

Environmental and Safety Affairs Committee
Purpose of establishment: Reduce environmental
impacts, establish and maintain safe working
environments
Function: The Environmental and Safety Affairs
Committee plans and proposes specificenvironmental and safety initiatives andmonitors the progress of addressing
environmental and safety issues. For
more information about its activities, see
Environment (→P. 12) and Occupational
Health and Safety. (→P. 44)

Quality Assurance Committee

Purpose of establishment: Implement and improve
quality assurance
Function: The Quality Assurance Committee reviews
quality assurance activities and theirimplementation, and examines and takes
action to improve issues related to quality
assurance. For more information about its
activities, see Quality Assurance. (→P. 51)

PL Committee

Purpose of establishment: Implement fulfillment
activities related to product liability
Function: Formulates plans for product liability related
prevention activities and training, and monitors
the implementation of emergency response
measures. For more information about its
activities, see Quality Assurance. (→P. 51)

Public Relations Committee

Purpose of establishment: Effectively communicate
information about Zeon
Function: The Public Relations Committee aims toenhance Zeon’s profile and image throughaccurate communication of our corporate
philosophy, approaches, and activities.
The Committee also ensures timely andappropriate disclosure of information by
Zeon Group. For more information about its
activities, see Information Disclosure (→P. 59)
and IR Communications. (→P. 64)

SUSTAINABILITY REPORT 2023

9

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Sustainability Promotion StructureWith the aim of realizing carbon neutrality by 2050,
in April 2022 the Carbon Neutral Endeavor Department
which previously reported directly to the President wasplaced under the Corporate Sustainability Division.
In July 2022, we established a new Carbon Neutral
Division to strengthen organizational functions such as
strategy formulation, and the Carbon Neutral Endeavor
Department was placed under it. In addition, a new
Carbon Neutral Laboratory has been established under
the Research and Development Center, and we have put
in place a system for promoting R&D that is oriented
toward monozukuri manufacturing that helps to realize
carbon neutrality and the circular economy.
In May 2022, we implemented an organizational

reform, with the existing Raw Material Division andLogistics Division that had been under the Elastomers
and Chemicals Business Headquarters being brought
together to form the new Supply Chain Division, whichis under the Administrative Headquarters. The Supply
Chain Division undertakes the comprehensive collection
and analysis of all supply chain related information,and implements measures intended to reduce Scope 3
CO2 emissions in the supply chain. It also puts in place
the systems needed for the formulation, proposal,
adjustment and implementation of supply chain related
policies to help ensure the building of the foundations
needed for business growth, and accelerating initiatives
aimed at realizing carbon neutrality.

Sustainability Promotion Structure
Legal & Compliance DivisionCorporate Planning Division

Legal Affairs Department
Quality Assurance Department

Human Resources Division
Administrative
Headquarters

Corporate Administration Division

Raw Material Procurement Department

Supply Chain Division
Supply Chain Planning & Administration Department
IR & SR Office
Risk Management Department

Department ofInternal Auditing

Corporate Sustainability DivisionCorporate Sustainability Department

Corporate Sustainability Headquarters
Carbon Neutral Division

President

Sustainability
Conference

CSR Conference

Research &Development
Headquarters

Research &Development
CenterCarbon Neutral Endeavor Department

Laboratories
Carbon Neutral Laboratory
Intellectual Property Department

Production and Engineering Technology Headquarters
Elastomers and Chemicals Business Headquarters

Specialty Business Headquarters

Corporate Communications

Production Innovation Department
Environmental & Safety Affairs Department

SUSTAINABILITY REPORT 2023

10

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Sustainability Promotion Plan
Since 2011, we have instituted our “Vision for 2020” inrespective fields based on our CSR Matrix, and have been
engaged with CSR issues at the Zeon Group level.
In 2021, we presented our “Vision for 2030,”
formulating the Three Group-wide Strategies to help us
achieve our goals for the year 2030, and which represent
the embodiment of that vision. We then established
our “Targets for 2030,” corresponding to these ThreeGroup-wide Strategies. These include those relating tosustainability objectives, such as: “a 50% reduction in
CO2 emissions”; “50% of turnover from products which
contribute to the SDGs”; “75% employee engagement”;
and “a 30% ratio of foreign-national and female directors
and officers.”

In FY 2023, we started Phase 2 (FY 2023–26) of
STAGE30, our Medium-Term Business Plan. These four
years are designated as the time to shift to implementing
the specific activities that we devised in Phase 1 toachieve our Vision for 2030, to be “A company thatlives up to societal expectations and the aspirationsof employees.” We are promoting Four Group-wide
Strategies in Phase 2, adding the new fourth strategy of“‘Polish up’ the management base” to our original ThreeGroup-wide Strategies. Target values for FY 2026 havebeen set for each of these Group-wide Strategies, andwe are broadly sharing our progress toward them withstakeholders. Through this, we will make steady progress
toward realizing our Vision for 2030.

Medium-Term Business Plan: STAGE30 Targets Related to Sustainability in Phase 2
Strategies

Targets for FY 2026 Related to Sustainability

1. Promote a transformation of monozukuri to realize
carbon neutrality and a circular economy

Ratio of reduction in CO2 emissions: 29%(non-consolidated, compared to FY 2019 levels)

2. Contribute to solving social issues by both “polishing up”
existing businesses and “exploring” new businesses

Sales ratio of products that contribute to the SDGs: 40%

3. Work together to create “stages” to be active on

Employee engagement: 56%
Zeon Healthy Behavior Indicator: 65%
Paid leave utilization rate: 70%

4. “Polish up” the management base

Ratio of foreign-national and female directors and officers: 25%
Ratio of outside directors and officers: Majority
Ratio of female managers: 12%

SUSTAINABILITY REPORT 2023

11

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Timeline of CSR/Sustainability Initiatives
1995: Joined the Japan Responsible Care Council and declared our commitment to Responsible Care
Established Zeon’s Responsible Care Policy
1996: Revised the group-wide safety management system and established the Plant Technology Audit System
1997: Established the Safety Philosophy
Held the first Zeon Safety Month and the All-Zeon Safety Conference (subsequently held each year in April)
1998:
1999:
2000:
2001:
2003:

Established the Code of Conduct (Zeon’s Seven Articles)
Established the Responsible Care Policy
Established the Risk Management Rules
Published the first Responsible Care Activity Report (1999 edition)
Established the Environmental Philosophy
Amended the Risk Management Rules and renamed them as the Risk Management and Compliance Rules
Established Zeon’s Seven Articles Code of Conduct

2004: Implemented the Internal Reporting System
Published the Compliance Textbook I
2005: Published an English version of the Responsible Care Activity Report
Conducted third-party verification for the Responsible Care Activity Report
Published the Compliance Textbook II (Q&A Edition)
2006: Switched from publishing the Responsible Care Activity Report to publishing the CSR Report
2008: Published the Compliance Textbook I (Revised Edition)
2009: Signed the Responsible Care Global Charter
2010: Established the CSR Policy and CSR Code of Conduct
Published the Compliance Textbook (Q&A Edition)
Revised the CSR Implementation System and established a new System
Published the CSR Textbook
2011: Began using the CSR Matrix
2012: Started the CSR Core Projects (comprehensive Zeon social contributions package)
2013: Switched from publishing the CSR Report to publishing the Corporate Report
2017: Revised the CSR Matrix based on ISO 26000
	‌Along with publishing the Corporate Report, also published a PDF version of the CSR Report on the corporatewebsite2018: Revised the CSR Code of Conduct
2019: Became a signatory to the United Nations Global Compact
Established the Zeon Group Human Rights Policy
2020: Expressed its support for the TCFD
2021: Established the Declaration for Health and Productivity Management
2022: Established the Sustainability Policy	Switched from the Corporate Report to the Integrated Report; and from the CSR Report to the Sustainability
ReportNewly established the Sustainability Conference and Sustainability Committee
2023: Revised the Zeon Group Human Rights Policy

SUSTAINABILITY REPORT 2023

12

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Environment
Environmental Philosophy and Safety Philosophy
Environmental and Safety Management
Overview of Environmental Impacts
Economic Indicators of Environmental
Performance (Environmental Accounting)
Climate Change
Chemical Substances Management
Air, Water, and Waste Materials
Chemical Product Safety Information
Environment and Safety in Logistics

P. 12
P. 14
P. 15
P. 16
P. 17
P. 20
P. 22
P. 24
P. 25

Environmental Philosophy and Safety Philosophy
Philosophy and Policy for Safety and Environmental Activities
Responsible Care: A voluntary initiative by businesses that manufacture or handle chemical substances to achieve
continuous improvement in health, safety, and environmental (HSE) performance across the entire lifecycle of such
substances—from development and manufacture, through distribution and use, and ending in final consumption or
disposal—based on the principles of independent decision-making and personal responsibility. These businesses
publicly commit to Responsible Care in their business policies, implement HSE-related actions, and strive to improvetheir HSE performance.
At Zeon, we have practiced the Responsible Care philosophy as a member of the Japan Responsible Care Council(now the Japan Chemical Industry Association Responsible Care Committee) since its inception in 1995. In 1998, weestablished our own Responsible Care Policy to define our conduct guidelines based on the Responsible Care.
Our Responsible Care Policy is included in our Environmental and Safety Regulations. We regularly examine the needfor revisions to our regulations every three years and as needed.

Environmental Philosophy
Established in 2001, our Environmental Philosophy
guides our efforts to deliver products with consistentquality through safe and reliable production while
reducing our environmental impacts.

Safety Philosophy
A consistently safe work environment is the foundationof all production activities. We formulated our Safety
Philosophy in 1997 to guide our safety activities.
Safety Philosophy (Established March 1997)

Environmental Philosophy (Established August 2001)
1. ‌Environmental protection is a mission of a socially
responsible organization
2. Our basic belief is that environmental protection canbe achieved with innovative technology
3. Environmental protection will be achieved when all
employees work together with a sense of mission to
overcome challenges

1. Safety is the foundation of all business activities andthe greatest priority
2. Our basic belief regarding safety is that we canprevent all accidents
3. Safety will be achieved by performing the 5Ss* andwhen everyone takes responsibility for their own
actions*5Ss:
Seiri (sort), Seiton (straighten), Seisou (scrub), Seiketsu (systematize), andShitsuke (sustain)

SUSTAINABILITY REPORT 2023

13

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Responsible Care Policy

Responsible Care Policy (Established June 1998)
1. Prioritize the environment and safety
Protecting the environment and ensuring safety are preconditions for all business activities and are the most importantpriorities. We will work continuously to enact full accident prevention countermeasures, and provide education andtraining for all employees to prevent safety and environmental accidents.
2. Collect and distribute the latest information on chemical products
We will collect, store and manage the latest information required for the appropriate handling, use and disposal ofchemical products, and distribute this information to employees and users.
3. Minimize the discharge of toxic chemicals and waste
We will work to reduce the discharge of hazardous chemical substances, minimize waste, and develop technology forrecycling and reusing materials.
4. Promote activities for conserving resources and energy
We will aim to dramatically reduce the amount of energy we use and help alleviate global warming by developing
innovative technology and actively promoting resource and energy conservation activities that involve all employees.
5. ‌Take the environment and safety into account when developing new processes and products and performing
quality assurance
We will perform thorough environmental and safety evaluations from the initial stages of research, develop technology
and products that take the environment and safety into account, and work to maintain and improve the quality oftechnology and products.
6. Live together with society
We will strictly observe regulations related to the environment and safety, whether the regulations come from thelocal community, the national government, overseas, or organizations to which we belong. While cooperating in these
activities, we will work to enhance our communication with the local community and society in order to convey a better
understanding of Zeon’s activities and further strengthen the trust that society has in our company.
7. Perform continuous improvements
We will continuously improve our environment safety management and technology by operating a Responsible
Care Audit, the Safety Management System, an Environment Management System based on ISO 14001, and an
Occupational Health and Safety Management System.

SUSTAINABILITY REPORT 2023

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Environmental and Safety Management
We have built Environmental and Safety Management Systems based on the Responsible Care philosophy, and areworking toward the goal of ensuring the safety of all persons at our worksites and plants. We have also obtained ISO
14001 external certification related to the environment.

Overview of Environmental and Safety
Management Systems
President’s Annual Policy and Safety Management
Improvement Master Plan
These documents are created by top management.
Annual Environment and Safety Policy
The Environmental and Safety Affairs Department
General Manager creates this policy after the President’s
Annual Policy and the Safety Management Improvement
Master Plan are released. The Annual Environment and
Safety Policy is reviewed by the CSR Conference andfinalized by the President.
Annual Worksite Manager’s Policy and Annual Worksite
Safety Management Improvement Master Plan
Worksite managers create these documents after the
President’s Annual Policy and the Safety Management
Improvement Master Plan are released.
Annual Worksite Environmental and Safety(Responsible Care) Activities Plans
Worksite managers create the Activities Plans after thegroup-wide Annual Environment and Safety Policy isreleased.

•Progress Management• ‌Safety Management Improvement Master Plan:
Progress verified by the CSR Conference• ‌Annual Worksite Safety Management Improvement
Master Plan: Progress verified by the worksite manager
during worksite inspections• ‌Annual Worksite Environmental and Safety Activities
Plans: Progress verified by the worksite manager
during worksite inspections

Environmental and Safety Management Systems
Top management●President’s
Annual Policy●Safety Management
Improvement
Master Plan
●Annual Environment
and Safety Policy●President’s Annual
Policy●Safety Management
Improvement
Master Plan

●AnnualEnvironment
and Safety Policy(draft)Environmental and Safety Affairs Department●Deliberation●Decision-making●Confirmation

CSR
Conference●Progress
management in
implementing the
Safety Management
Improvement
Master Plan

Worksites●Draft the Annual Worksite Manager’s Policy●Draft the Annual Worksite Safety Management Improvement Master Plan and progress management●Draft the Annual Worksite Environmental and Safety (Responsible Care) Activities Plans andprogress management

AuditsAudits assess whether our management systems arefunctioning normally.
Worksite Responsible Care audits cover environmental
and safety matters and are headed by the Environmental
and Safety Affairs Department General Manager. These
audits have two parts: the Responsible Care Audit andthe Responsible Care Dialogue.
Responsible Care Audits• ‌Audits using specialized indicators to monitor the
progress of Responsible Care activities.
• ‌These audits also include auditing conducted forworksites that have Certified Completion and Process
Safety Inspectors for High-Pressure gas.
• ‌The progress of improvements in areas where audits
uncovered such needs is verified using the Audit
Findings Improvement Plan and Progress Report.
Responsible Care Dialogues• ‌A venue for worksite members and management toconsider, discuss, and resolve worksite environmental
and safety issues that are difficult to identify throughaudits.
Responsible Care Audits at Group Companies
Group Company Responsible Care Audits cover Group
company Responsible Care activities and are headedby the Environmental and Safety Affairs Department
General Manager. The progress of improvements in areas
where audits uncovered such needs is verified using the
Audit Findings Improvement Plan and Progress Report.
Internal Plant Audits
Internal plant audits are conducts at plants.
• ‌Plant manager inspections: Inspections of the progressof Responsible Care implementation conducted by theplant manager (at least once/year)• Environmental Management System (EMS) internal
audits, Safety Management System internal audits

SUSTAINABILITY REPORT 2023

15

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Overview of Environmental Impacts
We procure raw materials for chemical substances, and consume energy and water resources in the production andsales of our materials and chemical substance products. When manufacturing products, in terms of inputs, we evaluate
our reduced use of resources and energy while maintaining quality. In terms of outputs, while emitting substances that
impact water and atmospheric environments is unavoidable, we are implementing an ongoing cycle of improvements tominimize these emissions.
Overview of Environmental Impacts (FY 2022)

INPUT

OUTPUT

Energy consumption(crude oil equivalent)

Head Office

Products

275 thousand kL

Takaoka Plant

1,768 thousand tons

Handled amount of substances
subject to the PRTR Act

Kawasaki Plant

Atmospheric emissions

791 thousand tons

Tokuyama Plant

Water resources

Mizushima Plant

17,961 thousand m

3

Himi Futagami Plant

Substances subject
to the PRTR Act
18.5 tons
CO2
735 thousand tons
SOx
514 tons
NOx
225 tons
Water discharges

Tsuruga Plant

Total wastewater
discharge 15,917 thousand m3

R&D Center

COD
Total nitrogen
Total phosphorus

110 tons
120 tons
2.0 tons

Industrial waste
Final landfill disposal
1.7 tons
Recycled materials 19,691 tons

SUSTAINABILITY REPORT 2023

16

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Economic Indicators of Environmental Performance(Environmental Accounting)
We began introducing environmental accounting into our operations in FY 2000 in accordance with the Guidelines for
Introducing an Environmental Accounting System (Ver. 2000) published by Japan's Ministry of the Environment (MOE),
and have released environmental accounting statements since the 2001 edition of the Responsible Care Activity Report.
This CSR report presents key data from our environmental accounting statements in FY 2018 as recommended in theEnvironmental Accounting Guidelines 2005 (MOE), Environmental Accounting Guidelines for Chemical Companies(JCIA, 2003), and Environmental Conservation Cost Categories 2003 (MOE).
Scope: Zeon Corporation in Japan (Head Office, Takaoka Plant, Kawasaki Plant, Tokuyama Plant, Mizushima Plant, Himi Futagami Plant,
Tsuruga Plant, R&D Center)
Period: April 1, 2022 to March 31, 2023

Environmental Conservation Costs
Environmental Conservation Expenses
We are developing technologies to minimize theenvironmental impact of our wastewater and reduce theamount of residual volatile substances in our products. We arefocused in particular on developing technologies, designingequipment, and standardizing operating procedures to reduce
emissions of butadiene and acrylonitrile, both hazardous air
pollutants, and to reduce the environmental impact of ourwastewater based on such parameters as total nitrogen (TN)and chemical oxygen demand (COD).
We are also working to develop eco-friendly products
and innovative, energy-efficient processes.
Environmental conservation costs
Category(1) Costs within the business area

FY 2022 (million JPY)
Investment
amountExpense

455

3,122

Breakdown• Pollution prevention costs

18

2,045

• Global environmental protection costs

437

380

• Resource recycling costs

0697(2) Upstream and downstream costs00(3) Management costs

23

144

(4) R&D costs

165

3,220

(5) Social activities costs

053(6) ‌Environmental damage
response costs

0

81

644

6,620

Total

Environmental Conservation Outcomes
Environmental Conservation Outcomes (Physical Outcomes)
Environmental impact indicators

FY 2022
results

Compared
to FY 2021

CO2 emissions (tons)

462,156-61,384

SOx emissions (tons)

514

-283

NOx emissions (tons)

225

-56

COD emissions (tons)

110

-31

Industrial waste sent to landfills (tons)

1.7

-2.1

Total emissions of substances
subject to the PRTR Act (tons)

18.5

-4.9

Economic Effects
We strive to use oils and other byproducts fromour production and manufacturing processes in
economically effective ways such as converting them tofuel and recycling them, or by other means. We are also
working to recycle the metal resources in empty drums
and containers. To conserve energy, we recover heatgenerated in heat-intensive distillation processes.
Economic Effects Resulting from Environmental
Conservation Measures
Effects

Unit: million JPY

Effects obtained from recycling ofresources, fuel conversion, etc.

45.0

Cost reductions from energy savings

0.5

Cost reductions from reducing emissions,recovery, and reuse of solvents andcatalysts

5,863

Total

5,908

Environmental and Safety Investment
In addition to environmental investment related tofacilities to prevent pollution and conserve energy andresources, we strive to improve safety through ongoingsafety investment aimed at improving safety andeliminating hazards.
Unit: million JPY
Environmental conservation

1,224

Safety related

5,725

Total

6,948

SUSTAINABILITY REPORT 2023

17

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Climate Change
Expressing Support for the TCFD Recommendations
and CO2 Emission Reduction Initiatives
In August 2020, Zeon Corporation expressed its
support for the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD).
Based on the TCFD recommendations, we are
analyzing the risks and opportunities that climate change
poses to our business and reflecting them in our businessstrategies to strengthen our business foundation, aiming
to realize a sustainable society and improve Zeon’s
corporate value.
These initiatives are reflected in the group-wide
strategy of “Promote a transformation of monozukuri
to realize carbon neutrality and a circular economy”
that is outlined in our Medium- Term Business Plan. In
the medium- to long-term, we will formulate a Carbon
Neutrality Master Plan with 2050 as the target year, anddisclose the measures that will be adopted to realize thisplan and the progress made in reducing CO2 emissions.

Disclosure of Zeon’s Activities in Response
to TCFD Recommendations
Governancea) Board’s oversight of climate related risks andopportunities
In July 2021, we established the Corporate
Sustainability Headquarters to promote our sustainability
efforts and disclose progress and results. In July 2022,
we established a new Carbon Neutral Division under
the headquarters, and are promoting a transformationin monozukuri to realize carbon neutrality and a circular
economy as a Group strategy under our Medium-TermBusiness Plan. These systems have been established withthe approval of the Board of Directors.
Our Sustainability Conference and Sustainability
Committee have a system to hold discussions on“response to climate change” as one of the importantsustainability issues, and to report on the contents to theBoard of Directors as necessary.
We recently revised our executive compensation
system to provide greater incentives for creating andimproving medium- to long-term corporate value. Forinternal directors and executive officers, we expanded
the performance-linked share of total compensationand introduced the Board Benefit Trust-Restricted Stock(BBT-RS), a performance-linked stock compensation
plan, to more clearly define the linkage between
compensation and Zeon’s sales performance and stock
value. These steps are intended to raise awareness of theneed to contribute to the enhancement of medium- tolong-term performance and corporate value.
Though directors remain accountable for short-term
performance, the indicators are closely tied to MediumTerm Business Plan targets. This evaluation system

will increase the likelihood of creating and enhancing
corporate value over the medium to long term.
b) Management’s role in assessing and managing
climate-related risks and opportunities
The head of the Corporate Sustainability Headquarters,
a company director, oversees the organizational structure
described above to address sustainability issues that
including climate change to live up to our corporate
philosophy of “contributing to the preservation of
the Earth and the prosperity of the human race.” Thereporting and deliberation on the Group’s actions being
taken on the issues are conducted by the Sustainability
Conference, and ultimate responsibility for the realizationof sustainability is assumed by the representative director,
who chairs the body.

Strategya) Climate-related risks and opportunities theorganization has identified over the short, medium,and long term
To understand risks and opportunities related toclimate change, in FY 2020 we analyzed the impact on
Zeon’s rubber business of the 2°C and 4°C scenarios.
Further, in FY 2021 we conducted the same scenario
analyses group-wide.
b) Impact of climate-related risks and opportunities on
the organization’s businesses, strategy, and financial
planning
Business impact evaluation (impact on financial
planning)
The anticipated financial impact on Zeon’s business wasanalyzed for the 2°C and 4°C scenarios. It was found that,for the 4°C scenario, earnings would fall due to the impactof physical risks and because of rising procurement costs,
while for the 2°C scenario, earnings would fall becauseof the adoption of carbon taxes and the widespread
adoption of EVs, but there would also be a positive
contribution to earnings from new business opportunities.
c) Resilience of the organization’s strategy, taking into
consideration different climate-related scenarios,
including a 2°C or lower scenario
We are currently analyzing the 1.5°C scenario, andbased on the results, we will be implementing response
strategies in coordination with the group-wide strategy
outlined in the Medium-Term Business Plan. Regarding
the decarbonization strategy, we will be undertaking
group-wide examination of policies aimed at making Zeon
carbon neutral. With regard to the resource strategy, we
will be promoting the circular economy and proceedingwith development of products that make use of biomass
as raw material. We will also be aiming to expand ourbusinesses by undertaking product development andproduct portfolio management based on assumptions
regarding changes in customers’ behavior.

SUSTAINABILITY REPORT 2023

18

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Zeon Group’s Climate-Related Risks and Opportunities
Type

Evaluation item

Observations: Opportunities

Importance	Adoption of carbon taxes (resulting inincreased operating costs)

	Increased opportunities for sale of productsthat contribute toward reducing CO2 emissions(resulting in increased sales)

Major

Individual countries’
carbon emissions
targets/policies

	Increased emissions controls compliancecosts (resulting in increased operating costs)

As above

Key products/Increase or
decrease in product prices> Changes in raw materials procurement
costs	Rising raw material prices (resulting inincreased operating costs)

	Falling raw material prices (resulting in
reduced operating costs)

Changes in energy
demand> Changes in utility
costs (fuel andelectric power)

Rising energy prices (resulting in increased
operating costs)

	Increased demand for energy (resulting inincreased sales)

Evolution of
next-generation
technologies—

Enhanced competitiveness due to technologicaladvances (resulting in increased sales)	Increased competitiveness in the event of
successful future development of efficientmanufacturing technologies or manufacturingmethods that do not use fossil fuels	Securing an advantageous position in
the market through the development ofbiomass-based raw materials, etc.
	Development of technologies and products(such as chemical recycling) oriented toward the
low-carbon society and the circular economy

Major

Changes in customer
behavior

Deteriorating reputation of the company’s
products and of the company itself (resulting
in reduced sales)	Increased opportunities for sale of productsthat contribute toward reducing CO2 emissions(resulting in increased sales)

Major

Rising sea levels

Negative impacts on operations from rising
sea levels (reduced sales due to production
stoppages and delays and/or increased
maintenance and repair costs)

—

Major

Rising averagetemperatures

Increased burden of responding to rising temperatures (resulting in increased operating costs)
	Reduced capacity utilization rate due toan increase in the incidence of operatives
suffering heatstroke	Increased plant restoration costs and safetymeasures costs	Reduced productivity (due to reduced
cooling capability, or reduced GPB and GPI
extraction capability)	Higher storage and transportation costs
due to increased need for low-temperaturestorage and transportation of raw materials
and products (affecting business divisions)

Increased sales accompanying risingtemperatures	Increased demand for medical products due tothe spread of certain diseases, heatstroke, etc.
	Increased demand for Zeon products due toreduced supply of natural products	Increased demand for plant growth regulatorsand fragrances	Increased demand for thermal interface materials (TIM) to solve problems with excessive
heat generation

Disruption caused to operations by severe
natural disasters (resulting in reduced sales
and increased operating costs)

Increased sales opportunities resulting fromlarge-scale natural disasters
	Increased demand for gloves resulting from aworsening hygiene environment	Emergence of concerns regarding the existing
electric power network as a result of disasters
Diversification of the electric power grid, increased
demand for storage batteries, and increased salesof battery materials, due to concerns regarding
industrial operations and lifestyles

Category

Carbon pricing andcarbon tax

Policy/Legal

Transition

Industry/
MarketReputation

Chronic

Physical

AcuteObservations: Risks

Sub-category

Increasing seriousnessof abnormal weather
conditions (trend
toward larger typhoons
and hurricanes, etc.)

Major

Major

Major

Major

Major

Group-Wide Impact Assessment
Under the 4°C scenario

OperatingincomeCarbontax

Response toRawabnormal materials
weatherprocureconditions
ment

Under the 2°C scenario

Adjusted
earnings

Business Adjusted
Operating Carbon Widespread Raw
incometax
adoption of materials opportuni- earnings
ties
EVs
procurement

SUSTAINABILITY REPORT 2023

19

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Risk managementa) Processes for identifying and assessing climaterelated risks
Based on the 4°C and 2°C scenario analyses,
transitional and physical risks associated with climatechange for 2030 and beyond have been identified andclassified according to importance.
b) Processes for managing climate-related risks
With regard to climate-related risk, we haveestablished a Risk Management office, and climaterelated risk is recognized in the group-wide risk
management table. As regards the response to risk, theRisk Management office performs risk management,
including risk assessment and clarification of appropriate
response strategies.
c) How processes for identifying, assessing, andmanaging climate-related risks are integrated into
the organization’s overall risk management
We have a system in place that takes the identified
climate change risks and links them to impact
assessment results and R&D policies. These influence
management policies and the business plans we set up
to achieve our vision for the future, taking the form ofspecific numerical targets incorporated into our threeyear plans and annual budgets.

Metrics and targetsa) Metrics used by the organization to assess climaterelated risks and opportunities in line with its
strategy and risk management process
Metrics and targets
In 2021, we formulated our initial Carbon Neutral
Master Plan, which set reduction targets for FY 2030
to achieve carbon neutrality by 2050. These targets
call for a 50% reduction by FY 2030 in the Scope 1+2CO2 emissions of Zeon Corporation (unconsolidated) as
compared to FY 2019. As an intermediate target, we aim
to achieve a 29% reduction in FY 2026 compared to FY
2019. We will update the plan as required in the future.
Intermediate target

implementing CDP disclosure and aiming to secure SBT
certification.
In addition, we are focusing in particular on setting
metrics and targets for Goal 13 of the SDGs (Take urgent
action to combat climate changes and its impacts).
c) Targets used by the organization to manage climaterelated risks and opportunities and performanceagainst targets
Initiatives to achieve targets
We are promoting various initiatives to achieve ourgoal of reducing CO2 emissions by 50% in FY 2030 fromFY 2019 levels.
Our strategy for reducing Scope 1+2 emissions
combines three approaches: (1) Energy saving, (2)Process innovation, and (3) Energy shift.
The anticipated reduction rates are 10% for energy
saving, 10% for process innovation, and 80% for energy
shift, so the greatest benefits are expected to beachieved through the shift to new energy sources. Energy
shift involves switching over to renewable energy or tofuels that has a non-fossil certificate* for the fuel used inboilers, etc.
* Non-fossil certificate: With a non-fossil certificate, the greenhouse gases
generated in all processes from extraction through to fuel usage are offset
by carbon credits, so on a global scale, use of the fuel in question can bedeemed to not generate CO2 emissions.

FY 2022 initiatives(1) Energy conversion in plants in Japan
We have switched to 100% renewable energy sources
for the electric power purchased for all four production
facilities in Japan (Takaoka, Himi Futagami, Tsuruga andTokuyama plants). The Takaoka Plant has contracted topurchase carbon-neutral LNG, which produces virtuallyzero CO2 emissions. The Tokuyama Plant has contracted
to purchase Renewable Energy Certificates to reduce
CO2 emissions from steam.
The Kawasaki Plant began using carbon-neutral city
gas supplied by Tokyo Gas and joined the Carbon Neutral
LNG Buyers Alliance.

Neutrality
29% reduction MasterPlancompared to
FY 2019 levels
50% reduction

77.8

81.4

77.9

69.0*

55.2

2019

2020

2021

2022

2026

1st Carbon

compared to
FY 2019 levels

Himi Futagami Plant

38.9

Purchased electric power:
100% renewable energy

2030

Tsuruga Plant*Calculation based on greenhouse gas protocol: 735,000 tonsb) Scope 1, Scope 2, and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the relatedrisks
In order to be able to disclose Scope 1, 2 and 3
emissions data for the Zeon Group as a whole, we haveestablished a system for determining Scope 1, 2 and3 data, including that of group companies, and we are

Takaoka Plant

Purchased electric power:
100% renewable energy
Purchasing of carbon
neutral LNG

Purchased electric
power: 100%
renewable energy

Kawasaki Plant

Introduction of carbon
neutral LNG

Tokuyama Plant

Purchased electric power:
100% renewable energy
Steam: Purchase of Renewable Energy
Certificates

SUSTAINABILITY REPORT 2023

20

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index(2) Adoption of internal carbon pricing (ICP) program• Internal carbon price: 10,000 yen/t-CO2• Scope of application: Capital investment that will leadto an increase or decrease in CO2 emissions• Method of application: The increase or decrease in CO₂emissions accompanying the capital investment projectin question will be converted into a monetary amountusing the internal carbon price, and this will be taken
into account when making the decision as to whether or
not to invest in the project.
(3) Selected for NEDO* Green Innovation Fund Projects• Development of manufacturing technology using
carbon recycling for commodity chemicals used insynthetic rubberThis demonstration project aims to establish two
advanced technologies to produce butadiene andisoprene, which are key synthetic rubber chemicals,
based on the recycling of carbon resources such as
used tires and biomass at high yield rates, and to
implement those technologies in society in the 2030s.
(From a press release dated Feb. 21, 2022)• Development of photonic chips for higher performance,energy-saving non-volatile memories
Zeon Corporation will utilize its carbon nanotube(CNT) technologies to establish CNT-based nonvolatile memory (NRAM) that can replace volatilememory (DRAM). The advantages are lower power
consumption and lower cost with higher capacity. The
goal is to commercialize NRAM in the 2030s. (From apress release dated Feb. 25, 2022)• MATSURI Project
The MATSURI Project is an initiative led by the ChitoseGroup, which specializes in the large-scale cultivationand commercialization of algae, that aims to build a newalgae-based industry through partnerships with numerous

companies. The project aims to facilitate zero carbon
emissions by 2050, and Zeon is working as a participatingcompany using microalgae as an energy source fromsunlight and CO2 as a direct raw material for chemical
products such as bioplastics and functional materials,
and for the commercial production of fuel, food, and feed.
(From a press release dated Mar. 27, 2023)*NEDO: New Energy and Industrial Technology Development Organization(4) Selected for the subsidy program for “measures topromote the introduction of non-fossil energy” by
the Agency for Natural Resources and Energy, METIThe four companies of Idemitsu Kosan Co., Ltd.,
Tosoh Corporation, Tokuyama Corporation, and Zeon
Corporation jointly proposed the “Basic Study on the
Establishment of Ammonia Supply Center at the Shunan
Industrial Complex” (“Project”) in a subsidy programfor “measures to promote the introduction of non-fossil
energy,” (Support Project for Establishment of Hydrogenand Fuel Ammonia Supply Center at Industrial Complex),
for which the Agency for Natural Resources and Energy,
Ministry of Economy, Trade and Industry (METI) called for
proposals, and has been adopted for the subsidy.
The Project aims to establish a carbon-free ammonia
supply system in the Shunan Industrial Complex withan annual capacity of over 1 million tons by 2030. The
companies will study the infrastructure improvement forammonia supply to customers in the Shunan Industrial
Complex, including the use of the storage facilities in
the Tokuyama complex of Idemitsu Kosan as a common
ammonia supply base. Based on the Project, thecompanies will promote the construction of Japan's
first ammonia supply chain in the Shunan complex
through various initiatives such as ammonia co-firingdemonstration tests in actual equipment. (From a press
release dated Aug. 30, 2022)

Chemical Substances Management
PRTR* Initiatives Chemical Substances
We are implementing group-wide initiatives to reducerelease and transfer of substances subject to Japan’s
PRTR Act.
Release and Transfer Volumes of Substances Subject to
the PRTR Act (FY 2022)
Total release
volume(18.5 tons)

Release andtransfer volumes
total(438.8 tons)

Total transfer
volume(420.3 tons)

Release of Substances Subject to the PRTR Act
Amount of release(tons)

40
30

23.7

Amount released
into atmosphere:(18.5 tons)

20

Amount released
into water:(0)

10

Amount released
into soil:(0)Transfer volume:(420.3 tons)
Amount to landfill:
(0)

0

23.3

23.4

23.4

18.5

2018

2019

2020

*PRTR: Pollutant Release and Transfer Register

2021

2022

FY

SUSTAINABILITY REPORT 2023

21

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Detailed Release and Transfer Volumes of Substances Subject to the PRTR Act (FY 2022, 6 plants + R&D Center)
Government
designatedno.

Substance

2
3
4
6
7
8
9
13
20
28
29
30
36
53
56
59
60
65
68
80
102
125
134
151
154
190
202
203
207
218
220
230
232
240
243
259
274
277
296
297
300
302
308
309
333
338
349
351
355
392
395
400
407
408
409
410
411
414
415
417
420
436
438

Acrylamide
Ethyl acrylate
Acrylic acid and its water-soluble salts
2-Hydroxyethyl acrylate
n-Butyl acrylate
Methyl acrylate
Acrylonitrile
Acetonitrile
2-Aminoethanol (monoethanolamine)
Allyl alcohol
1-Allyloxy-2,3-epoxypropane
n-Alkylbenzenesulfonic acid and its salts (alkyl C=10-14)
Isoprene
Ethylbenzene
Ethylene oxide
Ethylenediamine
Ethylenediamine tetraacetic acid
Epichlorohydrin
1,2-Epoxypropane
Xylene1-Chloro-2,4-dinitrobenzene
Chloroform
Vinyl acetate
1,3-Dioxolane
Cyclohexylamine
Dicyclopentadiene
Divinylbenzene
Diphenylamine
2,6-Di-tert-butyl-4-cresol
Dimethylamine
Water-soluble salts of dimethyldithiocarbamic acidN-(1,3-Dimethylbutyl)-N’-phenyl-p–phenylenediamine
N,N-dimethylformamide
StyreneDioxins
Tetraethylthiuram disulfide
Tert-dodecanethiol
Triethylamine
1,2,4-Trimethylbenzene
1,3,5-Trimethylbenzene
TolueneNaphthalene
NickelNickel compounds
Hydrazine
2-Vinylpyridine
Phenol
1,3-Butadiene
Bis (2-ethylhexyl) phthalaten-Hexane
Water-soluble salts of peroxodisulfuric acid
BenzenePolyoxyethylene alkyl ether
Polyoxyethylene octylphenyl ether
Sodium polyoxyethylene dodecyl ether sulfonate
Polyoxyethylene nonylphenyl ether
Formaldehyde
Maleic anhydride
Methacrylic acid
2,3-Epoxypropyl methacrylate
Methyl methacrylate
α-Methylstyrene
Methylnaphthalene

Handledamount(tons)
26.4
1,318.1
25.1
13.9
2,740.9
11.9
21,171.9
0.1
10.0
0.0
16.9
850.4
160,238.3
94.7
900.0
0.0
13.0
0.0
34.9
3,050.8
0.0
0.3
160.1
1.1
0.0
189,794.9
5.1
5.1
358.4
0.0
10.7
38.5
234.9
34,149.4
0.0
13.9
658.5
48.3
302.7
302.7
3,624.2
380.6
92.9
129.9
0.5
54.8
81.9
364,954.0
0.0
589.1
85.9
2,607.4
92.8
2.5
0.0
0.0
0.0
69.7
1,196.0
7.2
144.2
263.8
1.7

Released into Released into
Total
atmospherewater
release volume(tons)(tons)(tons)
0.0
3.8
0.0
0.0
1.5
0.3
2.9
0.0
0.0
0.0
0.0
0.0
1.9
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.0
0.1
0.0
0.0
0.1
0.0
0.0
1.6
0.0
0.0
0.0
0.0
0.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
2.6
0.0
2.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.0
0.0
0.0
0.0
0.0

The PRTR Act specifies amounts in kilograms to two significant figures; however, this report specifies amounts in tons.
0.0 indicates less than 0.005 tons.

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

3.8

1.5
0.3
2.9
0.0

1.9
0.0

0.2
0.0
0.1

0.1

1.6

0.0
0.6

0.0

0.0
0.1

0.0
0.0
2.6
2.1
0.0

0.4
0.0
0.0
0.0

Transfer
volume(tons)
0.0
0.0
0.0
0.0
18.2
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.7
0.0
0.3
0.0
1.1
0.0
3.9
0.0
0.0
0.0
0.0
1.2
0.0
1.2
38.6
0.0
0.0
0.0
0.0
0.0
0.0
138.8
0.0
82.3
129.9
0.0
0.0
0.0
0.0
0.0
2.1
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
0.0
0.0

SUSTAINABILITY REPORT 2023

22

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Air, Water, and Waste Materials
Atmospheric Emission Reductions of Hazardous
We are installing collection facilities, implementing measures including improving facilities to prevent evaporationfrom openings in manufacturing facilities, and systematically reducing emissions of butadiene and acrylonitrile, which
are among the substances requiring priority action under the Japan’s Air Pollution Control Act.

Butadiene Emissions

Acrylonitrile Emissions

Atmospheric emissions(tons)

Atmospheric emissions(tons)

4.0

4.0

5.0

5.0

3.4

3.0

3.0

2.7

2.8

3.0

2.6

2.0

2.0

1.0

1.0

0

2018

2019

2020

2021

2022

4.0

FY

0

2018

3.0

3.1

2019

2020

3.3

2021

2.9

2022

FY

Initiatives to Prevent Air and Water Pollution
We are working to reduce emissions of air pollutants through the adoption of heavy oil with low sulfur (S) content andconversion to liquid natural gas (LNG).
The quality of our plant wastewater complies with the standards of the Water Pollution Prevention Act andagreements with local authorities (voluntary management standards).

SOx Emissions

NOx Emissions

Amount of release(tons)

Amount of release(tons)

400

1,000
800

689

797

774

300
579

600

514

270

258

2019

2020

281

225

200

400

100

200
0

298

2018

2019

2020

2021

2022

FY

0

2018

2021

2022

FY

SUSTAINABILITY REPORT 2023

23

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Total Wastewater Discharge

COD Discharge

Amount of release（million m3）

Amount of release(tons)

20
15

15

150

15

15

15

16

141

141

124

121

110

100

10
50

5
0

2018

2019

2020

2021

2022

FY

Total Phosphorus Discharge

2020

2021

133

131

2020

2021

2022

FY

200

2.3

2.5
2.1

1.8

150

2.0

1.5

160

157

120

100

1.0

50

0.5
0

2019

Amount of release(tons)

3.0

2.0

2018

Total Nitrogen Discharge

Amount of release(tons)

2.5

0

2018

2019

2020

2021

2022

FY

0

2018

2019

2022

FY

Waste Reductions
In terms of reducing the amount of industrial waste
destined for final landfill disposal, our worksites aremaintaining a record of zero emissions (less than 0.1%of the industrial waste generated in FY 2007) sinceachieving this target in FY 2011.
Zeon Group companies had a final landfill volume ofmore than 600 tons in FY 2007, but since FY 2012 thishas been reduced to around 10 tons, or roughly 0.4%of the industrial waste generated in FY 2007. This isconsidered zero emissions.
We aim to maintain a final landfill volume of 5 tons or
less, the same as at our worksites.

Final Industrial Waste Disposal at External Landfills
Landfill disposal volume(tons)

8
6
4

3.6

3.2

1.7

2
0

0.1

0.0

2018

2019

2020

2021

2022

FY

SUSTAINABILITY REPORT 2023

24

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Initiatives to Reduce Industrial Waste from Plastic Products
Article three in our Responsible Care Policy is“Minimize the discharge of toxic chemicals and waste.”
Under the Act on Promotion of Resource Circulation for
Plastics, which came into force in April 2022, Zeon isclassified as a business that generates a large amountof industrial waste from plastic products (250 tons ormore). We are working to reduce the amount of waste
we generate and set up medium- to long term targets
and plans to manage waste.

Amount of industrial waste from plastic products(tons)

2,000

1,500
Targets
and reductionplans areunder review

1,000

500

0

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 FY

Chemical Product Safety Information
We collect and provide safety information on our chemical products. We also conduct hazard assessments. For quality
assurance, see Quality Assurance (→P. 51).

Information for the Proper Handling of Chemical Products
We produce Safety Data Sheets (SDS) for all Zeon
products. SDS provide information including GHS*1
classification results, product hazards, and cautions forhandling, etc.
For some of our products, we disclose safety-related
information in the form of safety abstracts, which are
made available on the GPS/JIPS*2 platform.
*1 GHS
Globally Harmonized System of Classification and Labelling of Chemicals*2 GPS/JIPS
Global Product Strategy / Japan Initiative of Product Stewardship. GPS is a
new voluntary initiative related to the management of chemicals, promotedby the International Council of Chemical Associations (ICCA). In Japan, theJapan Chemical Industry Association (JCIA) promotes GPS under the JIPS
and encourages member companies to participate.

Participation in Voluntary Chemical Industry Initiatives
Zeon provides financial support for research activities
by the LRI*3 involving chemical substance hazard
reviews, safety evaluations, and environmental impact
surveys. Zeon also participates in the Technology
Subcommittee and the Environment Subcommittee ofthe Asia Pacific Section of the IISRP*4 (regular meetings
four times a year, international meetings twice a year, 1
member on each subcommittee, total of 2 members). In
international meetings, Zeon proactively participates in
activities to improve the overall level of technology in the
global rubber industry and to promote sustainability.
*3 LRI
Long-range Research Initiative: Activities to provide long-term support
for research on the impact of chemical substances on health and theenvironment. A program under the auspices of the International Councilof Chemical Associations (ICCA) that is carried out with funding from LRI
member companies and in cooperation with the chemical industries ofJapan, the United States and Europe (specifically, the Japan Chemical
Industry Association, American Chemistry Council and European Chemical
Industry Council).
*4 IISRP
International Institute of Synthetic Rubber Producers

SUSTAINABILITY REPORT 2023

25

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Environment and Safety in Logistics
To more effectively use and recycle resources, we arepromoting recovery and recycling of wood, resin, andmetal pallets and containers used to transport various
goods. We also use a large number of recycled resintransportation pallets.
Zeon has for some time now been working to promote
the effective utilization of resources and implementing
measures to reduce the environmental footprint oflogistics operations, for example by reducing theweight of metal box pallets (by approximately 7%)
and promoting the recovery of metal box pallets fromoverseas, as well as implementing flexible bag recovery
and reuse.

Compliance with the Revised Energy Conservation
Act and Efforts to Reduce CO2 Emissions
As a specified consigner under the revised Energy
Conservation Act, we are working to rationalize the useof energy together with partner companies involved in
product and raw materials transportation. To date, wehave studied and implemented improvements in loading
efficiency, modal shift to rail and ship transportation, andtruck and ship fuel efficiency.
The so-called “2024 problem” will also affect truck
transportation, and we will shift from using domestic
long-haul truck transportation to rail and coastal shiptransportation, aiming to contain future transportation
costs and reduce CO2 emissions. An example of this isswitching truck transportation to rail transportation while
containing cost increases for a portion of raw materials
transportation in Japan. At present, as a result of modal
shift for half of the shipped volume, we have reduced
CO2 emissions by approximately 38%, according to Zeon
estimates. We will continue to take steps to shift the total
shipping volume.
Annual CO2 emissions from logistics after modal shift(Zeon estimate)
Business
as usualLightweight metal box pallet
50% shift

Approx. 38%
reduction in
CO2 emissions

100% shift
0

50

100

150

200(tons)

Safety Initiatives in Logistics

Folded pallets after use

At Zeon, we established Yellow Card* Management
Rules for transporting hazardous products. These rules
require drivers to carry a Yellow Card when transporting
such products.
We also conduct reporting and communication
training for drivers, and each plant offers training on
product handling to prevent accidents in logistics.
*Yellow Card
Document describing what to do if an accident occurs during transportation,
as established by the Logistics Safety Management Policy of the Japan
Chemical Industry Association. The document is called a Yellow Card
because it is printed on yellow paper.

SUSTAINABILITY REPORT 2023

26

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Human Rights
Upholding Positive Working Environments by Protecting Human Rights
and Prohibiting Discrimination
Becoming a Signatory to the United Nations Global Compact andParticipating in Subcommittee Activities

P. 26
P. 28

Upholding Positive Working Environments by Protecting
Human Rights and Prohibiting Discrimination
In August 2019, we established the Zeon Group Human Rights Policy, which sets forth respect for human rights andprohibits discrimination, and are striving to create a mutually accepting company that does not tolerate discrimination
based on gender, age, nationality, or other attribute and understands diverse values.
Zeon Group Human Rights Policy (Established in 2019, revised in 2023)
We, the Zeon Group, are committed to fulfilling our corporate social responsibilities in respect of human rights andcontributing to realizing a sustainable society, based on international codes of conduct on human rights, such as
the Universal Declaration of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental
Principles and Rights in Labor, and the UN Global Compact.
Respect for Human Rights
We will not tolerate acts of discrimination orharassment based on age, gender, place of origin,ancestry, nationality, disability, religion, creed, marital
status, employment status, union participation, politicalviews and other differences. We also will not toleratechild labor, forced labor or/nor unjustly low wage labor.
Collaboration with Stakeholders
We will encourage our customers and business
partners to support this policy with us to pursue
business activities sharing respect for human rights.
Prevention and Mitigation of Human Rights Violations
We will strive to perceive, avoid and reduce any
negative impact on human rights that might result fromour business activities.

Response to Human Rights Violations
We will work on the relief through appropriate
procedures when it is found that we have caused or
furthered a negative impact on human rights.
Efforts on Human Rights Issues
We will provide appropriate education and training toour executives and employees, so that this policy isunderstood and implemented.
Disclosure of Information
We will publicly disclose information on ourhuman rights initiatives under this policy throughcommunication channels such as our website andintegrated report.

SUSTAINABILITY REPORT 2023

27

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Initiatives for FY 2022 and Beyond
Starting from FY 2022, we have begun to implement
full-scale human rights due diligence initiatives. In
implementing human rights due diligence, Zeon
Corporation, group companies, and the supply chain
have been carrying out relevant measures while receiving
advice from external experts.

Zeon Corporation
Zeon Corporation has added “human rights issues inadvertising” to the 25 risk categories for human rights
listed in “Company Obligations to Respond to Businessand Human Rights” (published by the Ministry of Justice’s
Human Rights Bureau). This issue has become a problem
downstream in the supply chain in recent years. We havedesignated a department to address this and other risks;
it is now working to reduce human rights risks groupwide.

Human Rights Issues We Focus On (Partial List) and Our Responses
Risk categories

General risk description/examples

Status of our initiatives

Occupational healthand safety

Workers’ health is not protected

Continuation of regular health checkups andmeasures against infectious diseases such as
COVID-19

Excessive and unreasonable working
hours

Long working hours due to labor shortages andincidents

Continuation of proper understanding of working
hours, and making employees aware of working
hour consultation services and maximum working
hours

Harassment in different forms

Various acts of harassment such as power, sexualand care harassment, and pregnancy
discrimination (maternity harassment)

Ongoing implementation of anti-harassment
training

Rights of foreign
workers

Discriminatory treatment on the basis of being aforeigner

Increased Japanese language learning support forand dialogue with foreign employees

Rights of local
residents

Negative impact on local residents due to noise
and waste in production activities

Confirmation of the status of initiatives at plants
and production sites

Human rights issues inadvertising

Advertisements produced promote
discrimination

Attendance at human rights seminars for relevant
personnel and confirmation with advertising
agencies concerning human rights policies

Right to accessremedies

Even if a consultation service exists, it is notmade widely known

Revision and dissemination of employee concern
system rules

Group Companies in JapanFor our group companies in Japan, we have provided
education to the management and staff involved withhuman rights at each company regarding the backgroundof our initiatives and the importance of efforts topromote respect for human rights.
Starting in FY 2023, we will begin full-fledged efforts
to identify human rights risks at each group company
and formulate and implement measures to reduce suchrisks.
Supply Chain(1) Identification of risks at suppliers
We surveyed a total of 262 of our suppliers by having
our procurement departments identify those with
operations that are likely to involve high risks for humanrights, etc., in addition to those in the top 80% or higher
by trading amount. We used Global Compact Network
Japan’s standard Self-Assessment Questionnaire (SAQ)
to ascertain the status of initiatives being taken by
suppliers and to identify risks.

(2) Feedback
We sent a feedback sheet to all suppliers who
answered the standard SAQ survey, revealing their scorein each category (human rights, labor, environment,etc.), along with the average score for all suppliers, theirprevious scores, and general comments, to encourage
those suppliers to improve their CSR initiatives.
(3) Supplier engagement
From the suppliers to whom we sent the standard
SAQ feedback sheet, we selected 16 for scores that were
especially high or low or for their handling of high-riskmaterials in terms of CSR. We subsequently visited orinterviewed those selected to explain the importanceof CSR procurement and confirm the status of theirinitiatives.
As necessary, we ask them to make improvements orrequest other things through discussions as part of CSR
risk reduction activities in the supply chain.

SUSTAINABILITY REPORT 2023

28

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Supplier Engagement and Feedback
Number ofcompanies

Feedback interview content

Low-scoring
companies

5

Explanations of CSR and sustainable procurement initiatives are provided, as well
as a detailed review of low-scoring items to identify risks and encourage
improvement actions

High-scoring
companies

3

Interviews are conducted with high-scoring companies to learn from them and get
examples of best practices to apply to sustainable procurement at our company
and other suppliersCompanies
handling high-risk
raw materials

8Companies that handle raw materials considered to be high-risk from a CSR
perspective (such as conflict minerals, palm oil, and silicon) are asked to checktheir upstream approach and the management status of the target raw materials;
and if inappropriate, encouraged to make improvements

Item(4) Establishing sustainable procurement guidelines
We have conducted procurement activities compliant
with our corporate social responsibility based on theZeon CSR Procurement Guidelines. As an extension of
those guidelines, we established the new Sustainable
Procurement Policy in October 2023 as guidelines forpromoting sustainable procurement activities together
with our suppliers. We also established the Sustainable
Procurement Guidelines, which include related Zeon
policies built around the Sustainable Procurement
Policy. Going forward, we will extend the Sustainable
Procurement Guidelines to our suppliers, broadly
establish understanding for our procurement approach,and promote sustainable procurement.

(5) Establishing supply chain reporting hub
To prevent incidents from occurring in our supply chainthat infringe upon laws or regulations or violate corporate
ethics, we will establish a supply chain reporting hub in
the near future and publicly announce it on our website.

The Sustainable Procurement Policy and theSustainable Procurement Guidelines are released on our
website.

Becoming a Signatory to the United Nations Global Compact
and Participating in Subcommittee Activities
The Zeon Group endorses the UN Global Compact.
We also participate actively in subcommittees of Global
Compact Network Japan. We participate in workshops
and working groups of the human-rights-related supply
chain subcommittee and human rights due diligence
subcommittee, and apply the information and knowledge
gained through the Group’s efforts to actions that ensure
respect for human rights.

SUSTAINABILITY REPORT 2023

29

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Human Resources
Overview of the Human Resources Strategy
Initiatives to Achieve Group-Wide Strategies
Diverse Human Resources
Promotion of Health and Productivity Management
and Freedom/Well-Being
Reformation of the Personnel System
Organizational and Human Resources Development

P. 29
P. 31
P. 33
P. 36
P. 41
P. 42

Overview of the Human Resources Strategy
Work Together to Create “Stages” to Be Active On
Creating platforms for employee excellence together
with employees is one of our Group-wide strategies.
When all employees have a sense of freedom (having
more choices in life) and achieve well-being (having afulfilling life with both good mental and physical health),
they will feel empowered to demonstrate their diverse
talents at Zeon. We are taking a two-pronged approachto create these platforms: 1) deepening diversity,
inclusion, and belonging (DI&B) and 2) increasing
employee engagement.
In the first phase of our Medium-Term Business Plan
(FY 2021–2022), we focused on developing favorable
conditions and creating programs to offer employees
a greater variety of options. Our actions included
remodeling our head office, expanding remote work, andintroducing a cafeteria plan.

Group-wide strategy and targets for 2030
Group-wide strategy

Provide agreater varietyof life choices

Targets for 2030
Employeeengagement

75%

Ratio of foreign-national andfemale directors and officers
Work together tocreate “stages” tobe active on

Phase 1 initiatives
Phase 1 initiatives

Details

Visualize internal issues, set KPIs
Implement employee
Expand survey scope to Group comengagement surveys
paniesRemodel Head Office

Create conditions that prompt employees to offer creative ideas

Increase remote
workSupport work styles that work withvarious lifestyles
Reduce commute times and supportbalancing employees’ work andprivate life

Introduce cafeteria
plan

Offer optional benefits for health,self-development, leisure, and morethat fit employees’ individual needs

Introduce and revise
various programs

Senior employee personnel system,side-work program, expanded support
for child and family caregiving, etc.

Freedom and well-being
Support for medical check-ups
and vaccinations

Support for childcare andnursing care

Cafeteria plan
Working styles unconstrainedby time or location
Open recruitment projects

Well-being

Career design
Recurrent education

Support for workplace dialogue
and associations
Side job
Volunteering

30%

FreedomStrengthening DI&B

Strengthen engagement

A circumstance providing
a greater variety of life choices

Health and Productivity Management
Employees= Foundation for “Stages”

CompanySUSTAINABILITY REPORT 2023

30

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Key Theme for Phase 2: Transforming Human Resources Management to Mobilize Individuals’
Strengths and Promote Growth
The second phase of our Medium-Term Business
Plan (FY 2023–2026) focuses on enhancing corporate
governance and developing conditions that promote
employee health and motivation. Through this, we willrealize our Group-wide strategies of co-creating platforms
for employee excellence and enhancing our managementfoundation. Key areas in our HR strategy include
Health and Productivity Management, operating a new
personnel system with greater employee empowerment,
establishing DI&B principles, and developing diverse
human resources to lead business in the future. We willcontinue taking results-focused actions to achieve our FY
2026 targets for the related KPIs.
The new managerial personnel system that welaunched in July 2023 began from a system thatassigned grades based on roles. Strategy-basedrole design makes clear to employees what the HR
requirements and necessary career background are,which supports their reskilling and career development.
In terms of management and business strategy, thesystem provides visibility into where we have too manyor too few of the needed resources. We can also gaina better understanding of the best people to achieve
the Medium-Term Business Plan and tools to build
an HR portfolio. This will enable us to implement HR
management linked to management strategy that clearly
defines what types of human resources we need torecruit, develop, and reassign. This, in turn, contributes
to business management and achieving the goals of ourGroup-wide business strategy.

Targets (KPI) for FY 2026 and Measures to Achieve Group-Wide Strategies
Strategies

3 Work together tocreate “stages” to be
active on

4 “Polish up” themanagement baseTargets for FY 2026

Measures
Key policyEngagement
survey item
Employee engagement56%

 ngagement survey itemE
Environment maximizing
employee potential55% eon Healthy Behavior
Z
Indicator

65%

Paid leave utilization rate70%

Instill DI&B thinking

 atio of foreign-national &R
female directors & officers

25%

Ratio of female managers

12%“Polish up” corporate governance

Create a healthy and motivating work
environment
Advance health and productivity

management initiatives

Operate a personnel system that allows

employees to be themselves

Key policy

Training diverse human resources for

future management positions

Vision for “Stages”

out individuals’
Employees Draw
strengths and growth

Increase human capital disclosure

Freedom,well-being/
various measures
Support for careerdevelopment
Support for reskilling(reeducation)
No time or placeconstraints
Work style reforms

Increase linkage withManagement and management andbusiness strategy business strategy

Management HR development/HR management
measures including recruitment, development,
transfers, and organizational development linked
with the management and business strategy

Managerial personnel system
Roles

Competency evaluations

Non-managerial
personnel system

Senior employee
personnel system

Staff
optimization

HR portfolio
creationFoundation
Strengthened harassment prevention

Strengthened engagement

New graduate hire and mid-career onboarding
Health and productivity management

Deepened DI&B

Achieve
Group-wide
strategy
1 Promote atransformation ofmonozukuri to realize
carbon neutrality anda circular economy

2 “Polish up” existing
businesses“Explore” newbusinesses

SUSTAINABILITY REPORT 2023

31

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Initiatives to Achieve Group-Wide Strategies
Enhancing Engagement through Employee
Engagement Surveys

Women’s Participation and Advancement in
the Workplace

At Zeon, we conduct employee engagement
surveys as a means of gauging the results achieved
for the “stages” and their current statuses. Employee
engagement is an indicator of employees’ motivation,
meaning their commitment to the company andautonomous effort identified from the surveys that
we give. Another indicator identified from the surveys
is “environments that leverage employees,” which
expresses employee-friendly workplace environmentsthat leverage employees’ skills and talents.
We began giving the employee engagement survey
in FY 2021. Employee engagement in FY 2022 received
a score of 48%, while environments that leverage
employees received a score of 46%. To support creating,
implementing, and establishing improvement plansfor organizational issues identified from the surveys,
we implement improvements at workplaces throughdivision-based workshops and are endeavoring to
improve employee engagement through our humanresource strategy.
We have set the 2026 targets of 56% for employee
engagement and 55% for environments that leverage
employees. Our employee engagement target for 2030 is
set at 75%, the average value for global high-performing
companies, and we will aim to create better “stages” toreach this target.

In the context of an ongoing decline in the working
population due to low birth rates and an aging
population, the promotion of participation andadvancement by women in the workplace is essential to
Zeon’s continued achievement of sustainable growth.
There has been an increase in the number of female
employees either holding or capable of holding thepositions of department manager or section manager,
and we are striving to expand the opportunities forfemale employees to be increasingly active in suchroles. As of March 31, 2023, 13.4% of our company’s
employees, and 5.7% of managers, were female. We aim
to increase the percentage of female managers to 12%
by 2026.
When we assessed gender equality at Zeon using
WEPs (seven international principles promoting women’s
economic empowerment) in March 2022, we founda need to offer greater support for women’s careerdevelopment due to a lack of women role models inmanagement positions. We are therefore planning toestablish a mentor program and a sponsor program in
the near future to support women employees. We plan
to build a framework from these programs for discussing
HR requirements and enabling objective evaluations,as well as have this process repeated regularly, with thegoal of creating successor development plans for diverse
employees who will lead future management.

Processes for the enhancement of employee
engagement

Female manager ratio and number of female managers(non-consolidated)(No.)

Conduct
surveys

(%)

32

30

30

26
25

25

20

Conduct
follow-up

Enhanceemployeeengagement

18

20

Share
key issues

20

15

Target for 2026

15

12%

10

5

Draft and
implement
action plans

0

15

10

3.6%

4.3%

4.5%

5.3%
5.7%

March 2019 March 2020 March 2021 March 2022 March 2023 March 2026
Total no. of female managers

Female manager ratio

50SUSTAINABILITY REPORT 2023

32

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Zeon Corporation’s General Employer Action Plan(based on the Act on Promotion of Women’s Participation and Advancement in the Workplace)
We have established the following action plan to create employment conditions that allow women to continue
working and be promoted to managerial positions.
1. Plan implementation period
2. Zeon Corporation’s issue

April 1, 2021 to March 31, 2026

We want to increase the number of female employees.

3. Goals and initiatives, and implementation time-frame
Target 1:	Increasing the percentage of new recruits (specifically, new employees who have just finisheduniversity or graduate school) who are women to at least 50% for administrative positions andat least 30% for technical positions
Starting in FY 2021, we will be implementing manager cultivation training for employees who are
candidates for management positions, and we will be expanding and continuing the support that
we provide for self-development, including career development awareness raising.
Target 2:

Raising the percentage of female managers to at least 6%
Starting in FY 2021, we will be implementing manager cultivation training for employees who are
candidates for management positions, and we will be expanding and continuing the support that
we provide for self-development, including career development awareness raising.

SUSTAINABILITY REPORT 2023

33

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Diverse Human Resources
Instilling DI&B Thinking
We are promoting DI&B, with Belonging added to theprinciples of Diversity and Inclusion. We are conducting
both top-down and bottom-up activities with the goalof mobilizing employees while respecting their diversity(D&I) and making everyone at Zeon have a sense of
security and trust that they are accepted (Belonging).
Creating a culture of DI&B, where everyone is glad theywork at Zeon and feels like they have a place to belong,is at its core the process of “creating ‘stages’ in which all

employees can demonstrate their individual strengths”
set forth in our Medium-Term Business Plan.
Zeon have established a dedicated department, theDI&B Promotion Office within the Human Resources
Division, while also launching promotional projects withproposals solicited internally to help entrench DI&B in
our organizational culture. Members of various ages,
genders, and nationalities recruited by means of wideranging calls are distributed across various teams, where
they are working to put into action “What we want to do
to establish a culture of DI&B at Zeon.”

DI&B Initiatives
Initiative

Details

DI&B-related education

Unconscious bias training, self-leadership training, etc.

DI&B promotion project(launched in Dec. 2020)36 employees Group-wide participated in the FY 2023 (6th) session, with various
projects conductedUtilizing senior employees

Lifetime career review training and external intern trial

Connection support/framework for
employees to help each other

Career and organization consultation office, mentoring support connecting younger
employees with more experienced employees

Support for employees with children

Posting stories on the internal company website about employees’ experiencetaking parental leave, holding parent discussion sessions, and creating a community
for employees with children

Support for mid-career hires

Holding networking events and activities to deepen company understanding, suchas tours of business locations

DI&B Week

Holding a week-long campaign for all employees, jointly holding the campaign withlocal companies outside Japan

Dialogue sessions with management

Dialogue sessions between management and DI&B project members (total of 6
sessions held since FY 2021)

Intranet webpage for DI&B Week

Records of dialogue sessions with management

SUSTAINABILITY REPORT 2023

34

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Promoting Employment of People with
Disabilities

Hiring of Recent Graduates and Career/
Mid-career Candidates
In FY 2022, we hired 232 mid-career employees
to work in many areas of Zeon, including Research &Development, Elastomers and Chemicals Business,
Specialty Business, and Digital. In FY 2023, we hired 107
new graduates. As a means of advancing gender equality
and steadily increasing the ratio of women employeesthat play a central role in future management decisionmaking, we aim to continue hiring women each year tofill at least 30% of the roles for new graduate hires at the
Head Office.
Our workforce is growing from robust hiring levels
over the last several years, and we are focusing on
onboarding and creating frameworks to retain these new
employees and have them demonstrate their individual
skills. This includes providing support in their personal
life, in-house self-study opportunities, and support forbuilding interpersonal networks, based on two-way
communication.
In FY 2023, we began an educational activity for newly
hired mid-career hires to hold frank discussions with
Human Resources soon after they start working at Zeonand gain understanding of Zeon’s production activities,
so that mid-career hires are able to perform their workwith a high-level understanding of our Group.

We are promoting the employment of people withdisabilities while exercising the utmost care regarding
safety, at our laboratories and plants which handle
hazardous materials and use rotating and other industrial
equipment to manufacture chemicals.
We are also actively providing Decent Work (rewarding
and humane work) opportunities, including the openingof three facilities, namely Zeon Farm, a facility for theemployment of people with disabilities, in Kashiwa City,
Chiba Prefecture in October 2020, Zeon Farm Tokuyama,in Shunan City, Yamaguchi Prefecture in September
2022, and a farm in Hirakata City, Osaka Prefecture.
Vegetables harvested from the farms are transported
to the Head Office and plants or donated to “kodomoshokudo” cafeterias for children, thus contributing
to health and productivity management as well as
community outreach activities. People with disabilities
are at the center of cooperative activities to cultivate
vegetables.

Number of new hires (non-consolidated)
(No.)
250

232

200

150

95

100

56

50

41

0

2019

100

107

67

At Zeon Farm Tokuyama

47

27

Percentage of Employees with Disabilities
2020

2021

Recent graduates2022
Mid-career hires

2023

(FY)

(%)

2.72

2.5

2.29

2.0

2.41

2.58

2.01
Legal requirement: 2.3%

1.5
1.0
0.5
0.0

June
2019

June
2020

June
2021

June
2022

June
2023

SUSTAINABILITY REPORT 2023

35

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Contributions by Senior Employees

Participation and Advancement of
Foreign-national Employees
As we expand our business globally, it is of the utmost
importance that an active role is played not just by
Japanese employees but also by employees of othernationalities.
Working in various departments serves to help not
only non-Japanese employees but also the Japanesecolleagues working alongside them to grow, while also
promoting respect for diverse values and invigorating ourorganization as a whole.
Zeon has continuously pursued the recruitment of amultinational workforce, including hires from overseas,
irrespective of nationality, for some time and, as of March
2023, has 32 foreign-national employees, an increase on
past numbers. Of these 32 employees, six are active inmanagerial roles.
We will continue to pursue a policy of increasing thenumber of foreign-national employees capable of playing
a central role in managerial decision-making into the
future.
Number of foreign-national employees (non-consolidated)
(No.)

35

32

30

28
24

25
20

23

19

15

On April 1, 2022, we launched a personnel system forsenior employees. As of April 1, 2023, 153 employees(including those on temporary assignments at Group
companies) had been signed up to the personnel
system for senior employees, and are currently active
on several stages, including overseas assignments. The
concept behind the revised system is to “create a stage(workplace) where employees who have entered or areabout to enter their senior years can build their own
stages to be active on for longer than had previously
been possible, as we enter the era of lifespans of 100
years and over.”The adoption of this system will provide a framework
for rehiring up to the age of 70, as well as increasing
the variety of life options and providing environments
in which employees can work in peace of mind. It willachieve this through the provision of attractive benefits
and flexible workstyles, including part-time work andside work, as a response to the desire of seniors toremain active and take on challenges even after the
mandatory retirement age.
Overview of the personnel system for senior employees
Rehire period

Extended to 70 years old

Coursecategories

Reorganized course categories to betterreflect roles and demonstrated andrefined abilities

Rewards andbenefits• Attractive rewards and benefits aligned
to roles and abilities• “Meister” title newly establishedWorkstyles/
health andwelfare• Possible to choose between full-time orpart-time work
• Permission to work side jobs undercertain conditions• Adoption of support leave

10
5
0

March
2019

March
2020

March
2021

March
2022

March
2023

Globally Active Employees
At Zeon, employees stationed overseas are active
in regions throughout the globe. As of March 2023,
52 employees were stationed outside Japan, and arepromoting our overseas business, with an emphasison those in Asian countries, but also in North America,
Europe, and other regions.
In addition to offering our support to employees
stationed outside Japan to ensure that they can live andwork in safety, we aim to clarify the roles and duties
required of each of these employees, as well as providing
visions for their careers with an eye to their growth. We
will also actively undertake the creation of environments
which allow employees to rise to challenges withconfidence. This will include canvassing and providingthem with opportunities to volunteer their opinions andwishes.

SUSTAINABILITY REPORT 2023

36

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Promotion of Health and Productivity Management and Freedom/Well-Being
Vision for Health and Productivity Management
In October 2021, Zeon enacted the Declarationfor Health and Productivity Management and Codeof Conduct for Well-Being. Based on our belief that
“employees and their family members are our company’s
most indispensable asset,” the ultimate goal of healthand productivity management at Zeon is to create“stages” together with employees where they candemonstrate their individual strengths.

We will continue to promote health and productivity
management initiatives with the aim of realizing freedom
and well-being for all employees.

Declaration for Health and Productivity Management(October 2021)

Code of Conduct for Well-Being:“What I need to do to be happy”

Our corporate philosophy is “Contributing to thepreservation of the Earth and the prosperity of thehuman race”. This mission will be accomplished byeach and every employee of Zeon Group fulfilling his
or her potential and playing an active and vibrant rolein the company and in the society.
In order for us to continue contributing to a
“Sustainable Earth” and a “Safe and Comfortable Livesfor People”, we will create a work environment where
employees can work cheerfully and vigorously andlead healthy lives, both physically and mentally, with
their families and colleagues.

• I will be conscious of and proactively work to ensurethat I am healthy, happy and empowered in my work

Freedom: Having more choices in life
Well-being: Having a fulfilling life with both goodmental and physical health• I will establish the status of my health by means ofregular checkups and avail of appropriate feedback
and guidance• I will ask myself if I am sleeping and eating well andmaintain awareness of my daily routines, noticing
any changes in my condition as soon as possible, andengaging in self-care routines• I will give due attention to the environment whichsurrounds me, and make daily improvements tomake it safer and more comfortable• I will understand the resources available around me
that will support me in times of emergency

Health and productivity management targets and key issues/policies

Company initiatives

Priority challenges

Improve health literacy

Reduced risk of employees
developing lifestyle diseases

Health events
Health monitoring and measurement,
regular health checkups, etc.
Improvements to working
environments (workstyle reform)
Support for fulfilling work and lifestyles
Operate systems/health and welfare

Reduction in presenteeism*
and absenteeism*
Enhanced engagement metrics

Achievement of work-life balance*Presenteeism: Productivity lost due to employees coming to work despite being unwell
Absenteeism: Productivity lost due to employees being absent for reasons of illness

Goal

Each and every
employee ofZeon Group fulfilling
his or her potential
and playing an active
and vibrant rolein the company andin the society

SUSTAINABILITY REPORT 2023

37

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Introducing Zeon Healthy Behavior Indicator
In Phase 2 of STAGE30, our Medium-Term Business
Plan that we launched in FY 2023, we created the Zeon
Healthy Behavior Indicator to set forth our goals forphysical health. This original index consists of the threehealth indicators of a BMI within the standard range,
engaging in routine exercise, and not smoking. Key pointsof this index were making the self-assessment easy tocomplete and including healthy activities that anyone cando. We have set the target of increasing the percentageof employees that satisfy two or three of the three healthindicators from 60% (2022) to 65% or more (2026) andare taking steps to achieve this target.

Zeon Healthy Behavior Indicator
Have a BMI within
the standard range

Maintain goodnumbers

Engage in routine
exercise

Blood pressure
Blood glucose
LipidsReduce risk oflifestyle diseases**Cancer, heart disease,stroke, diabetes, andother diseases whose
onset is related tolifestyle habits

Do not smoke

Company vision

Target for 2026

Leading a healthy
and active life

65%+ of employees
achieve 2 or moreindicators(FY 2022: 60%)

Health and Productivity Management Promotion Framework
We established the Health and Productivity
Management Conference as a subsidiary organization
in FY 2023. It conducts activities to establish health andproductivity management initiatives among employees,
including sharing worksites’ independent initiatives andbuilding a cooperative structure between the Head Office
and worksites.

The President and CEO is positioned as the person in
charge of health and productivity management.
The Health and Productivity Management Promotional
Committee is chaired by the director in charge of humanresources. The Committee both deliberates on measuresand makes decisions on health and productivity
management.

Person in charge ofhealth and productivity
management: President
Person in charge of promoting health andproductivity management: Director in charge of HR
Host

Health and Productivity
Management Promotional
Committee
Zeon Corporationlabor union

Deploy measures

Labor union branch
executives

Report/feedback

Health and Productivity
Management Conference
Health and safetycommittees

DeploymeasuresReport/feedback

Workplaces
Respective worksites

Share and provide information

Zeon Corporation healthinsurance association
Cooperation

Health management
offices

Group company meetingsof persons in charge of HR

Respective Group
company worksites

SUSTAINABILITY REPORT 2023

38

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Specific Initiatives to Realize Freedom and Well-Being
Physical and mental health initiatives●Mental health training
We provide Self-Care Training for all employees anddistribute video content, and afterward confirm participants’ comprehension and satisfaction. The Line Care
Training for existing posts and line positions has been
modified to provide more practical exercises while promoting communication with instructors. We plan to haveall employees in managerial positions complete the training during a three-year period.
●Seminars on women’s health issues
Toward our goal of creating more inclusive and supportive workplaces for women and deepening understanding
for women’s health, we conduct seminars focused on
women’s health issues. With a practicing OB-GYN as
the instructor, the seminars are a rare opportunity to get
answers to questions that normally do not get asked.
●Use of health support app
We introduced a health support app, with a lineup of 16
menus for health support to aid employees in maintaining
healthy routines. We held an event incorporating the app,which is helping employees to establish exercise routines.
●Health checkups and follow-up care
For regular health checkups, industrial physicians andnurses provide follow-up consultations and health guidance for persons who require guidance.
We have also launched a system that allows employees
to view their health checkup results online 24 hours aday, with the intent to provide a state of health awarenesswhenever it is convenient. Awareness of health is the firststep to creating good health. We will cultivate awarenessfor health through the launch of this system.
●Stress checks
We conduct annual stress checks every July. Feedback isprovided to worksites and activities to improve workplaceenvironments are conducted.
●Launch of support for external counseling
We have launched support for external counseling withthe aim of promoting better mental health and well-being.
Professional counselors provide support for resolving
work-related problems, health worries, and other issues.
●Independent worksite initiatives
We implement measures to promote health tailored tothe specific issues and needs of respective worksites,
including walking events, physical fitness measurements,
and the adoption of menus with healthy food options at
cafeterias, as well as the holding of seminars to improvehealth literacy.

Flexible workstyles initiatives
We are promoting the maintenance of “environments
to facilitate flexible workstyles unconstrained by timeand place,” which includes the extension of teleworking
and the introduction of a flex-time system, as well as bymaking it possible to take annual paid leave in hourly
increments, as means to encourage the realization ofwell-being for each and every employee.
●Office overhaul
Prompted by the increased permeation of teleworking,we reviewed the role of the office, defining it as “a confluence point for communication to collaborate and cocreate as well as for education.” By employing a unilateral
open-plan layout encompassing all organizational units
and departments, as well as by introducing state-ofthe-art ICT infrastructure to facilitate flexible workstyles,
Head Office has transformed itself into a stage on which
all employees can be active.
●Deregulation of dress codes
At Head Office, we have deregulated dress codes withthe aim of creating a workplace environment where eachand every employee can freely express their own ideas
and conduct themselves with autonomy.

Office scene showing the office overhaul andderegulated dress codes●Eliminate postings of employees at locations remotefrom their families
Head Office is working to eliminate postings of employees at locations remote from their families through the
deployment of teleworking.
●Launch of side work system
A side work system was launched in April 2023. This system is being used to support employees to realize theircareer aspirations, by allowing them to build their careers
by gaining skills and experience through side work andpursue self-realization by taking on challenges they seekout themselves.
●Initiative to promote taking of annual paid leave
As a measure to promote freedom and well-being, weare working to raise the rate of employees taking annual paid leave to 70% by FY 2026. As part of this, we aremaking it easier to take leave, such as by setting up days
and periods of time where taking annual paid leave is encouraged and creating programs to enable taking leave insingle-hour and half-day increments.

SUSTAINABILITY REPORT 2023

39

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index● Initiative to expand application of the teleworking system
To realize work styles not tied to a particular place, weare conducting a trial expansion of the teleworking system at some worksites to allow employees to work at
places apart from the standard telework locations (employees’ homes and shared offices). While the majorityof participants in the trial have given positive feedback,including the ability to have flexibility in how they workand more fulfillment in private life, employees providing
nursing care support have also requested an increase in
the maximum number of days they can use the program.
In response to this feedback, in FY 2023 we increased
the number of days the program can be used, from 20
work days to 40 work days. Aiming to create a teleworking system that supports employees in balancing theirwork and private life, we will continue to conduct measures while listening to employee feedback.
Initiatives for comfortable and fulfilling lifestyles●Adoption of a new health and welfare service:
Zeon Cafeteria Plan
We have introduced the Zeon Cafeteria Plan, a system
which allows employees to make their own choices from amenu of options to support the “peace of mind” and “careerdevelopment,” as well as options to help them “connect/
co-create.” It can be used for various purposes, including
health promotion, encompassing comprehensive physicalexaminations and fitness clubs; support for childcare andnursing care, including babysitting and daycare services;
self-development activities, for example correspondence
courses and language study; and to avail of facilities forovernight stays.
We expanded the menu of options in FY 2023, adding
travel expenses for employees on assignment without theirfamily to return to their family home as well as travel expenses for those using nursing care to return to their family
home to the expenses that are eligible for reimbursement.
●GLTD Program (Zeon Corporation Long-Term Rehabilitation Support Program)We established this program with the aim of supporting creation of conditions that allow employees and theirfamilies to live with peace of mind. In the event of an illness
or injury that prevents someone from working for a long
period, this program compensates the employee at thecompany’s expense for a portion of the employee’s income
for as long as up to their 65th birthday. Employees can also
enroll in an optional plan for themselves that increases thiscompensation.
●Establishment of Childcare Leave Consultation Service
We have established the Childcare Leave Consultation
Service as part of our efforts to improve understanding of
the systems for childcare leave and to create an environment conducive to availing of this leave, while supporting
the taking of childcare leave as well as offering support tothose returning to work.

●Expansion of nursing care support
With the aim of helping employees to balance the obligations of their job and nursing care, we have established an
external nursing care consultation service. Employees canconsult nursing care specialists about issues or concerns
they have by email or over the phone, with the service
acting as a safety net for nursing care consultations. In
addition, we are planning trainings and the publication ofa nursing care support handbook to give employees basic
information on nursing care.
●Expansion of support leave
Toward the consolidation of an environment in which
they can work in peace of mind, we have made it
possible for employees to avail of paid support leave inthe event that they are unable to work due to personal
injury or illness, or other unforeseen situations such as
closure of schools of their children after they have taken
all of their allocated annual paid leave for the year.

SUSTAINABILITY REPORT 2023

40

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

List of Freedom and Well-Being Initiatives and Systems
We are implementing ongoing initiatives to build more
inclusive and supportive working environments. These
include reducing overtime work and developing systems

to support childbirth, childcare, and family care needs tooffer more flexible workstyle options.

List of Freedom and Well-Being initiatives and systems
Workstyles
unconstrained bytime and place★Flex-time system, ★teleworking system, ★overhaul of Head Office, ★deregulation of Head Office dress code,
encouraging the taking of special leave, half-day holidays, ★taking of annual paid leave in hourly increments (someworksites), instituted days with no overtime, ★elimination of postings of employees at locations remote from theirfamilies (some worksites), ★launch of side work system

Maternity/childcare support
systems

Maternity leave before and after birth, ★childcare leave and childcare leave at birth (up to five days paid leave) system,★childbirth leave for spouses (for male employees), leave to care for sick children, half-day leave, shortened working
hours system, limits on overtime work, exemptions from late night work, child nursing time, childcare/caregiver leave
financial support system, childbirth cash payments, dependents allowance, tuition allowance, ★support leave, flextime system with no defined core times, ★cafeteria plan, drafting of guidelines for taking childcare leave

Nursing care
support systems

Nursing care leave, caregiving leave system, consultation service for nursing care, ★cafeteria plan

Support for healthimprovement

Regular health checkups, ★launch of health checkup results viewing system, stress checks, ★employee engagement
surveys, physical fitness measurements, mental health training, ★seminars on women’s health issues, issuance of
health news, ★use of health support app, ★holding of events to support health, ★cafeteria plan, ★COVID-19 (someworksites)/influenza workplace vaccination program

Asset
accumulation

Employee savings scheme, employee stock ownership scheme (with financial
incentives), defined-contribution (DC) corporate pensions, matching contributions system

Housing assistance

Housing assistance system (dormitory accommodation and company housing, rent subsidy system, home ownershipallowance, home rental for transferred employees)

Systems forholidays andabsences

Annual paid leave (up to 22 days granted/10 days granted on joining company), ★support leave system (up to 40 days
granted/16 days granted on joining company), menstrual leave, childbirth leave, job transfer leave, relocation leave,
public-service leave (for jury duty), disaster leave, quarantine and infectious disease leave, paid leave for family births,
marriages or bereavement, ★childbirth leave for spouses, “My Life” leave (on reaching the age of 50), leave to care forsick children, nursing care leave, volunteering leave, leave for hospital visits by expectant mothers, “Refresh” leave (forsenior employees)

Self-help

Disaster assistance, group medical insurance, compensation for absences from work (Zeon health insurancecooperative association), optional group insurance, group medical insurance, ★GLTD system★ : Initiatives expanded during the period of the Medium-Term Business Plan (FY 2021–FY 2023)

Labor Agreements and Communication between Labor and Management
Joint Declaration by Labor and Management Aimed at
the Growth of the Company
1. W e will make mutual understanding and trust thecornerstone of all management-labor relations
2. We will perform our respective roles to strengthen
company infrastructure and build a company of which
we can be proud
3. We will mutually strive to improve and promote ourcorporate culture as good partners

Zeon Corporation and its labor union have concluded alabor agreement for the purposes of maintaining peacefulrelations between the two parties and cooperating forthe healthy growth of the company and to maintain andimprove working conditions for union members. Thisagreement stipulates rules for union activities, labormanagement negotiations, and complaint processing, as
well as working conditions such as wages and job hours.
We have also issued the Joint Declaration by Laborand Management Aimed at the Growth of the Company,
based on the common understanding that both thecompany and the labor union must cooperate andactively strive to mobilize the abilities of everyone in Zeon
Group to achieve initiatives for company growth.

Numerous opportunities for exchanging opinions havebeen set up, including consultations between labor andmanagement, RC dialog, and joint labor-management
patrols, as well as round-table meetings, which are now
a permanent part of the labor-management dialog.
Consultations between labor and management provide
ample opportunity for forthright discussion. Both sides
participate with a forward-looking attitude and a spirit offriendly rivalry based on mutual trust.
Going forward, we intend to actively provide
opportunities for dialog with the labor union and to
implement various policies to make Zeon a “companyof which each of its employees can be proud” through abeneficial partnership between labor and management
based on mutual respect for each other’s positions.

SUSTAINABILITY REPORT 2023

41

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Reformation of the Personnel System
Reformation of the Personnel System
We updated our personnel system in July 2023 tocreate a job-specific evaluation system for managerial
staff. In the former system, grades and compensation
were used as stepping stones to managerial roles, basedon the person’s ability to perform their duties. Morerecently, however, the roles (i.e., duties) employees are
expected to perform have been diversifying.
To foster employees’ motivation and create “stages”
that allow employees to demonstrate their individual
strengths, we decided that we needed to transition toa personnel system that draws out employees’ diverse
strengths and prompts their growth. This led to therevision of our managerial personnel system.
We revised the system with the following threeobjectives. The first is to reward employees according to
the demands of the role they are expected to performby creating a multitrack personnel system. In addition
to the management roles created based on our existingroles, we introduced specialist roles with grades set
by evaluating job performance on an individual basis.
We also clearly defined the career paths and set
compensation according to the demands of the role.
The second objective is to encourage growth after
promotion to a managerial role. We introduced conduct(competency) evaluations that include specific items
set for individual roles and are based on demonstrated
conduct. This is designed to increase the transparency of
performance evaluations, drive creation of results, andserve as a guide for long-term professional development.
The third objective is to increase career track visibility
for employees. By clarifying the requirements of eachrole, employees have a clearer picture of their career
paths and the company can see where there are too
many or too few of the resources needed to achieve themanagement strategy. This information will be used inpersonnel management to encourage employee growthand determine what types of resources are most need tobe recruited, developed, and assigned to roles.
As part of implementing the new managerial personnel
system, we will also build an HR portfolio to support
getting the right people in the right positions to achieve
our management and business strategy. Clarifying the
HR requirements tied to each managerial role is designed
to encourage the professional development of young
and mid-level employees who want to advance to a
managerial position as well as present a clearer picture ofavailable career paths.
We are planning to revise the personnel system for
non-executive employees in FY 2024 and beyond. In thisrevision, we will identify issues in work styles and careerdevelopment through two-way dialogue and review
how to support opportunities for young employees toindependently develop their careers. We plan to revise
the system in FY 2024 to reflect our approach to a jobbased personnel system for senior employees, based on
the new personnel system for managerial employees.

Flow of reformation of the personnel system
FY 2022

Introduction of the new personnel system
for senior employees

FY 2023

Reformation of thepersonnel system for
managerial employees(managers and specialists)

FY 2024 onwards

Reformation of the personnel system fornon-managerial employees
Reformation of the new personnel system
for senior employees

Implementation of a framework for “providing a clear picture of the future in the case of personnel transfers”(identify individual strengths through career-focused meetings, etc.)
Implementation of a framework for promoting employee growth and career development(use in-house job posting system to expand opportunities for growth, etc.)

SUSTAINABILITY REPORT 2023

42

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Organizational and Human Resources Development
HR development at Zeon

Human Resources Development

Performancebased reward

Basic Philosophy on Human Resources

The worker
I want to be

Tap into, develop, and fully use the competencies ofeach employee.

Education &training

Evaluation

Education & Training System

Rank

We implement basic education to nurture humanresources at Zeon with a focus on building a cooperationoriented attitude and acquiring standard knowledge.
We also provide specialized rank-specific education
including that intended to develop and improve thework competencies needed in specific occupations andevaluation training, and on-the-job training (OJT) conducted
at worksites aimed at enhancing the skills of evaluators.
Educational grants for correspondence courses areoffered as part of support for self-development. These
grants cover 100% of tuition fees provided students satisfy
the completion requirements for each subject.

Positionbased
education

Rank-based
education

Strategicplanning
ability

Organizationaltransformation

Goal setting
ability

Supporting
team member
growthGoalachievement
ability

Problem
identification
ability

Education for generalprofessional abilities,
professional abilities, andtransferring technical knowledge

Selfimprovement
support
Online educationalcourses
Support for
obtaining
qualifications
TOEIC

DI&B promotion
1 on 1 career
training
Harassment
prevention
training, etc.

Other
Z
basicsMonozukuri

Problemsolving ability

Selected
dispatcheducation

Enhancement of professional
skillsEnvironmental and safety affairs / Quality /Intellectual property / Manufacturing
R&D / Sales / Administration, etc.

Newlyrecruitedemployees

Framework for Nurturing Human Resources

MBA Dispatch / Language study /Overseas study
Business school dispatch

Leaders

Actions &results

Improvement of management skills

Personnel evaluation ability

Deputymanagers

Sustainability / Compliance / Information management

Managers

Basiceducation

Education &trainingΣ

Our concept of “being the worker I want to be”
embodies “people who continually evolve by pursuinghigh goals based on independent thinking.” Personnel
are encouraged to set goals to become the worker
they want to be, and we are modifying our educationand training systems to allow them to bridge the gap
between the current reality and their goals and facilitate
goal-driven actions on a daily basis. By fairly evaluating
what employees have accomplished and rewarding
them accordingly, we aim for them to set even higher
goals. With every personnel continuing to improve anddemonstrating this in actions, we can create an evenmore capable workforce across Zeon.

Enforcement ofZeon Sustainability
PolicyThe worker
I want to be(higher goals)

DX education, etc.

SUSTAINABILITY REPORT 2023

43

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Award System (Zeon Challenge Award)
The Zeon Challenge Awards are presented annually toindividuals or groups who have engaged with a challenge
and produced results. The prizes given for the President’sAward and other rewards are commensurate with thelevels of these achievements. Alongside the Employeeof the Month award, which is presented on a monthly
basis to individual employees by division managers, theZeon Challenge Award is intended to provide a stage tobe active on, and caters to challenges undertaken at theinitiative of employees themselves.

Number of Annual Awards(Awards)

20
16

11

12
8
4
0

1

15
2
1

9
2018
President’s

15
1

1

17
1
1

1

19
1

1

2

15

16

2020

2021

2022

Outstanding

Special

12

12

2019

FY

Division

SUSTAINABILITY REPORT 2023

44

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Occupational Health and Safety
Occupational Safety
Safety and Accident Prevention
Environmental and Safety Education
Topics

P. 44
P. 45
P. 47
P. 49

Occupational Safety
Initiatives to Prevent Occupational Accidents andProtect the Safety and Health of All Plant Workers

Change in severity rate of lost worktime accidents*(Zeon Corporation, non-consolidated)
Severity rate

We emphasize communication between worksite
managers and workers to enhance worksite capabilities
while implementing measures to prevent infections
with COVID-19, with the goal of creating safe, stableproduction systems. We focus on 5S safety inspections*1,
hazard detection*2 activities, and identifying near-missincidents*3, as well as hands-on safety training.

0.12*1 5S safety inspections
Inspections that evaluate operations where safety is an integral part ofmaintaining the 5Ss (Sort, Straighten, Scrub, Systematize, Sustain), and thatare designed to enhance visualization of safety-related issues at worksites
and address hazards.
*2 Hazard detection (“Kiken Yochi” [KY] activities)
Actions taken by workers to analyze and understand unsafe conditions withthe aim of recognizing activities that would place them in danger.
*3 Near-miss incidents
Events or phenomena that have the potential to result in an accident.

0.06

0.10

1.50
1.25
1.00

×
1.20
0.90

×
1.20
0.94

×
1.21
0.93

1.25

×

1.07

1.16

0.75
0.50

0.50

0.47

0.36* 2

0.25
0
×

0.00

2018

Manufacturing

2019

0.00

2020

Specialty Chemicals

2021

2022

×

×
0.07

0.06

0.06

×
0.06

0.03

0.02

0.02

0.02

0.01

0.00

0.00

0.00

0.00

2018

2019

2020

2021

2022

Manufacturing

Specialty Chemicals

FY

Zeon Corporation*Severity rate of lost worktime accidents = Total number of lost work days ÷Total actual worked hours × 1,000 hours

Frequency rate

1.31
×

0.08

0.04

×

Lost Work Time Accident Rate*1 (Zeon Corporation)

×
0.10

0.08

0

Record of Occupational Accidents

×
0.10

FY

Zeon Corporation*1. Lost work time accident rate
A safety indicator of the frequency of occupational accidents, calculatedusing the following formula.
Frequency of lost work time accidents = Number of workers who
experienced a lost work time accident / Total working hours × 1,000,000
hours*2 From FY 2022, the total value for Zeon Corporation increased to 6
factories from 4 due to an absorption-type merger.

5S Safety Inspections
5S safety inspections assess operations where safety
is critical to maintaining the 5Ss (Sort, Straighten, Scrub,
Systematize, Sustain).
The Environmental and Safety Affairs Department
General Manager at the Head Office and Managers at
Environmental and Safety Affairs Offices at each worksite
conduct patrols of worksites where the Environmental
and Safety Affairs Committee is held, to identify areas of
excellence and areas where improvements are required(put on hold in FY 2022 due to the COVID-19 pandemic).

Hazard Detection (Kiken Yochi) Activities
4R-KY (four-round kiken yochi) activities
4R-KY is a hazard detection method where employees
analyze and understand their work tasks before starting
them, to avoid placing themselves in danger. The process
is carried out in four separate rounds.
KY trainers assigned to each workplace lead these
activities.

SUSTAINABILITY REPORT 2023

45

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Identifying Near-miss Incidents
Near-miss incidents are events that have the potential
to result in a major accident, injury or loss. The conceptof near-miss incidents comes from Heinrich’s Law: In a
workplace, for every accident that causes a major injury,
there are 29 accidents that cause minor injuries and

300 accidents that cause no injuries (near misses). By
collecting and sharing data on potentially serious nearmiss incidents, we will strive to prevent the occurrence ofmajor accidents.

Safety and Accident Prevention
Safety Management Efforts Led by Top
Management
Each year, top management develops the Annual
Safety Management Improvement Master Plan and leads
initiatives to improve our Safety Management System
based on the belief that ensuring safety is the highest
priority.
Specifically, we are continuing to conduct priority
measures to ensure safety, based on the following
straightforward phrases.
1. ‌Reliable operation of equipment and systems toprevent errors (“Never rely on ‘maybe’ or ‘should’”)
2. ‌Plant degradation countermeasures and fail-safe
measures* (“Good judgement saves money”)
3. ‌Review of past accidents and recurrence prevention(“Never rely on ‘maybe’ or ‘should’”)
4. ‌Review of standards (“Always follow the rules. Change
rules that cannot be followed.”)*Fail-safe measures
Modifications to equipment or processes and other measures to prevent
accidents that would otherwise result from human error, such as mistakes
made by new employees and others lacking in knowledge or experience, orcareless mistakes made by experienced employees.

Dialog between Management and Plants
To monitor progress on priority issues, senior
managers at Zeon visit plants on a regular basis toconduct inspections, hold informational meetings withworkers, and brief workers on annual policies. Visits arealso made to plants on other occasions to communicate
directly with plant workers, who are on the front-line of
the company’s operations. Along with these visits, wehave concurrently held online meetings since FY 2020to prevent the spread of COVID-19. In FY 2022, senior
managers engaged with plant workers on 38 days,of which 35 days involved in-person visits, marking a
resumption in holding proactive dialogue with worksites.

Safety Inspector Certification at All Sites
Certified Safety Inspector*1
Obtained by Takaoka Plant, Kawasaki Plant, Tokuyama
Plant, and Mizushima Plant
Certified Completion and Process Safety Inspector*2
Obtained by Kawasaki Plant, Mizushima Plant, andTokuyama Plant
The certification renewal process includes reviews ofsafety inspection and completion inspection methods
as well as inspection management, and verification that
our Safety Management System meets the regulatory
requirements defined in Japan’s High Pressure Gas Safety
Act and that these systems are operating properly.
To more reliably ensure safety at all plants, we employ
our Safety Management System, identify the sources ofhazards, and implement measures to mitigate risks at
all of our plants. We are also formulating our vision for
Smart Industrial Safety*3 and promoting the realizationof this vision.
*1 Certified Safety Inspector
Certification granted by Japan’s Minister of Economy, Trade and Industry
based on the High Pressure Gas Safety Act to allow qualified individuals toperform safety inspections to determine whether specified facilities comply
with technical standards, either while the equipment is running or while it isstopped.
*2 Certified Completion and Process Safety Inspector
Certification granted by Japan’s Minister of Economy, Trade and Industry
based on the High Pressure Gas Safety Act to allow qualified individuals
to perform completion inspections to determine whether manufacturing
facilities or Class 1 storage facilities that have undergone specificmodifications comply with technical standards.
*3 Smart Industrial Safety
Smart Industrial Safety is:
1. An autonomous and independent effort regarding industrial safety by the
public and private sectors,
2. From the perspective of appropriate implementation of industrial
safety regulations, promotion of industries, and strengthening ofcompetitiveness,
3. In order to deal with economic and social structural changes, including
rapid technological innovation, digitalization, low birthrate and aging
population, and population decline,
4. Considering the safety of the citizenry and industry as a priority.

Certification Status
Plant

Obtained Certified
Obtained Certified
Safety Inspector status Completion andProcess Safety
Inspector status

Takaoka Plant 2000 (renewed in 2020)—

Kawasaki Plant 1998 (renewed in 2022) 2008 (renewed in 2022)
Tokuyama Plant 2007 (renewed in 2021) 2012 (renewed in 2021)
Mizushima Plant 2006 (renewed in 2021) 2006 (renewed in 2021)

SUSTAINABILITY REPORT 2023

46

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Improving Plant Safety
We conduct Plant Safety Evaluations and Plant
Safety Inspections to further raise the level of safety atplants and prevent serious accidents and injuries fromoccurring.
Plant Safety Evaluations
We verify plant safety at the design stage whencommissioning a new plant or upgrading an existing one.
Plant Safety Inspections
For existing plants, while inspecting work areas, weensure that all sources of danger have been identified
and review past decisions regarding the need for safetymeasures.

Disaster Preparedness Training
Worksites conduct disaster-response drills eachyear based on various hypothetical scenarios. The drills
include reporting and contracting simulations, first-aid
treatment, and rescue and firefighting activities. We
conduct full-scale disaster-response drills jointly withlocal firefighting agencies when possible.
These drills allow us to verify that our standards areadequate, and to verify the operability of emergency
equipment (e.g. fire trucks, fire hydrants, broadcasting
equipment, etc.). When we encounter problems, wetake steps to quickly resolve them, so as to maintain thehighest level of disaster-response preparedness.

Third-party Evaluations
Occurrences of Accidents and Injuries
FY 2022: Safety incidents* 6(High-pressure gas leaks: 5 [including 4
fluorocarbon leaks]; Other: 1)
Although these incidents did not result in injury tohumans or major impacts on the environment, we set up
an accident investigation board for each incident. The
boards have investigated the direct and indirect causesof the incidents, and are developing countermeasures toprevent recurrence.
*Safety incidents
Defined in company regulations as the occurrence of a fire, explosion, leak,damage, failure, runaway reaction, or similar event. Even if there has beenno actual occurrence, the possibility of such an event if actions had been
delayed and the observation of signs that could be deemed to indicate thepotential for such an event are also defined as safety incidents.

Zeon Corporation has participated as a supporting
company (full member) since the initial establishmentof the Japan Safety Competency Center (a specified
nonprofit corporation), and has made efforts to evaluate
and improve its safety competency in terms of its safety
foundation and safety culture. In third-party evaluations,
the Japan Safety Competency Center evaluates Zeon’ssafety foundation. The Keio University format is also
incorporated into the evaluation of the safety culture.
The strengths and weaknesses of each worksite anddepartment are objectively measured, and Zeon
Corporation continues to conduct improvement activities
aimed at improving its safety competency.

SUSTAINABILITY REPORT 2023

47

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Environmental and Safety Education
Systematic Safety Education
Environmental and safety education programs are
implemented in accordance with the annual plan set byeach worksite.
Group-wide environmental and safety education
supervised by the Environmental and Safety Affairs
Department is combined with worksite-specificenvironmental and safety education tailored to thespecific needs of each individual worksite. Shared groupwide educational content includes content provided
through e-learning as well as education on legal
amendments of environmental and safety-related laws.
Through these educational activities, we strive toeliminate safety incidents and occupational accidents,
minimize damage should an incident or accident occur,and maintain Zeon’s status as an enterprise trusted by
local communities.
Manager and supervisor education
Training for newly-appointed section managers
This is implemented for newly-appointed
manufacturing section managers, facilities management
section managers, and environmental and safety section
managers.
The content of the training includes safety activities
based on Zeon’s safety system, safety concerns andresponsibilities that safety managers should be familiar
with, environmental and safety related laws andenvironmental and safety related company regulations,and the Safety Management System, etc.
Safety education provided by former plant managers
Education using accident case studies
Held since FY 2003, this education program aims toprevent the lessons of past accidents from fading frommemory, to apply these lessons in work operations, toraise workers’ awareness of safety, and to increase their
sensitivity to potential risks.
Former plant managers give presentations to all plant
employees. They cover specific examples of accidents at
Zeon and other companies to communicate the grimconsequences of such accidents, and provide instruction
on how to analyze risk factors as well as countermeasures
to prevent recurrences.

Education using accident case studies

Environmental and safety education for new
employees
Newly-recruited employees at Zeon Head Office
Presentation of case studies of occupational accidents
that have occurred while newly-recruited employees
were undertaking factory placements, emphasizing theimportance of abiding strictly by the rules that have been
established in each workplace.
Newly-recruited employees at individual worksites
Education in basic matters relating to environmental
and safety issues.

SUSTAINABILITY REPORT 2023

48

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Environmental and Safety Education and Training
Activities Organized by Individual Worksites
Safety and environmental legislation education
Each individual worksite implements environmental
and safety education in accordance with the annual plan
(Environmental and Safety Education and Training Plan).
Training activities
Training is implemented in accordance with theannual plan. We strive to improve emergency response
capabilities by identifying issues that arise following
training implementation and using these to makesystematic improvements.
• ‌Comprehensive disaster response drills: These are held
once or twice a year, and involve the implementationof disaster response training and evacuation training
based on earthquake or tsunami scenarios• ‌Individual training: Trainings for the individual selfdirected disaster response organization disaster
response teams and reporting trainings are held
Establishment of the “Safety Workshop”
A “Safety Workshop” has been established at theMizushima Plant, at which employees can acquire
practical experience in the various types of safety
rules. Using the “Factory Safety Rules Understanding
Verification Sheet” drawn up in accordance with the“Standards Governing Usage of the Mizushima Plant
Safety Workshop,” activities are conducted to check
employees’ level of understanding of safety rules; inaddition, activities are held that make use of education
based on the exhibits in the Safety Workshop to deepen
understanding of factory rules among factory personnel(including the personnel of partner companies).

Display in the Safety Workshop showing how to use scaffolding

Adoption of hands-on safety education
Safety sensory education is conducted at plants,
research facilities, partner companies that perform
work inside Zeon facilities on a long-term basis, andneighboring Zeon Group companies. Specifically, every
year sensory education is provided on accidents inwhich employees are caught or trapped by machinery,electrostatic explosions and burns, shocks from residualpressure in couplers, accidents involving objects falling,
and accidents involving cutting.
In the future, we will continue to implement this typeof education systematically, including repeat education.

The hands-on safety education covering the dangers of getting caught in arollerSUSTAINABILITY REPORT 2023

49

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Topics: Initiatives to Create “Smart Factories” to Simultaneously Improve Plant Efficiency
and Realize Workstyle Reforms
At Zeon, we have been working to make our plants “smarter”
since 2020. We have already carried out various activities tofacilitate production innovation (visualization and utilizationof intangible assets, including know-how and expertise ofskilled and experienced workers) to date. The creation ofsmart factories will enable further production innovations
and transformations in work tasks by increasing the range ofthings that can be accomplished by machines through theleveraging of digital technologies. For plants, this will have theeffect of streamlining production and continually ensuring
product quality. For employees, it will lead to the realization of
comfortable and rewarding workplace environments.
As part of the “Smart Factory Realization Project”
undertaken throughout the Zeon Group, we initiallydiscussed the “Vision of an Ideal Plant” in six areas (workoperations, safety, quality assurance, facilities, personnel,
and logistics and warehousing), establishing the specifics ofwhat we hoped to achieve via the creation of smart factories,
as well as the steps needed to achieve this. Meanwhile, it isimportant to organize these various ideas and initiatives tofacilitate optimization of the whole, rather than groupings ofdigitization initiatives partially optimized for individual fields.
Initiatives undertaken over a two-year period as partof this project involved pilot tests ranging from studies onways to achieve the transition to smart factories to thoseon optimizing the whole, thereby identifying the topics
to be addressed. We also worked out the organizational
structures and a visualization of the digital human resources
which would be required to achieve these goals. Since April
2022, initiatives to facilitate the creation of smart factories
are being continued by the Production Innovation Center
based on the Medium-Term Business Plan.

Example 1: Reduction of essential tasks throughtransition to the use of robotics
Activities for production innovation have to date reduced
on-site troubleshooting operations by around 90%. We
have now reached a juncture of considering whether
to further reduce essential tasks (tasks required for
production) to reduce workloads even more. In this context,
we conducted deliberations on the potential of adopting
digital technologies intended to reduce essential tasks.
If plant patrols can be replaced with cameras androbots, this would allow the time thus saved by increases
in efficiency to be used for other improvement activities(workstyle reforms), while also improving operator
safety. In addition, standardization of work tasks and thedevelopment of facilities for the transition to the use ofrobotics would further facilitate improvements in thebasic infrastructure of plants.
By conducting reviews inside actual plants, we learned
that commercially available functions would not meet our
implementation needs and identified the technical issues
that need to be resolved to have robots move aroundautomatically. We are working quickly to resolve the issues
by developing technology together with other companies
as well as by utilizing opportunities to study the issues inindustry-government-academia joint settings.

What We Hope to Realize through Smart Factories

Smart Factories(Streamlining and optimizing efficiency of production;
what machines can do being done by machines)

•
•
•
•

Optimal automatedplant operations
Elimination of shift work
(workstyle reform)
Guaranteeing
production volumes
without trials
Vertical start-up
without prototyping•••

Detection and eliminationof dangerous situations
Automation of work tasks
Elimination of suddenequipment failures/
optimization of repair
costs
Remote assistance•

Surplus time

Actual plant inspection tour

Further
improvements

Nurturing high quality personnel•••(meeting the aspirations of employees)

Enhancing capacities forautonomous
improvements
Enhancing logicalthinking capacities
through improvements
Enhancingunderstanding of basic
rules and principles•••

Enhancing facility
maintenance capacities
Enhancing response
capacities (safety) in theevent of abnormalities
Enhancing response
capacities in the event of
non-steady operations
Plant point group data for robot control

SUSTAINABILITY REPORT 2023

50

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Example 2: Interactive training using VR technology
To operate a plant, it is important acquire the ability torespond in the event of abnormal conditions, in addition
to having an understanding of basic rules and principles.
The introduction of VR technology during training drills
is expected to facilitate improvements in the efficiency
of both instructors and those under their instruction
by allowing them to repeatedly be exposed to various
situations and facilitate autonomous learning.
The use of 360-degree imaging and VR to enhance
efficiency in the training of new employees has been pilottested and formally adopted at the Takaoka Plant, andwe are currently preparing to expand this system to otherplants. Training for more advanced troubleshooting drills,
and launching new plants is under ongoing consideration as
the burden involved in creating training materials is high.

Q. What are the precautions to be taken
when ascending or descending stairs?

Inputting a question, etc.
allows you to see the answer.
Image from a 360-degree camera

Advanced drills on responding to problems and new plant launch drills

New plant

3D-CAD data
conversion

Dynamic simulator

Existing plant

Point group data
filming, 3D modeling

General OBS[Field operator][Board operator]

SUSTAINABILITY REPORT 2023

51

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Quality Assurance
Basic Approach and System
Quality Assurance Initiatives

P. 51
P. 51

*For chemical product safety, see Environment (→P. 24)

Basic Approach and System
Quality Assurance Policies

Quality Assurance System

In accordance with our basic philosophy andSustainability Policy, we define our basic policy for quality
assurance as follows.
Basic Policy for Quality Assurance
1. ‌We contribute to society by providing high-quality
products, goods and services with excellent reliability
and safety to the market.
2. ‌We fully understand and predict user demands andprovide products, goods and services that users canuse with satisfaction.
3. ‌In each quality assurance step, we establish aninternal system that can assuredly evaluate highquality products, goods and services with excellent
reliability and safety.
4. ‌We establish technologies that can produce products,
goods and services with the target quality in terms of
reliability and safety.

To consistently manufacture products that reflect theneeds and wants of customers and to ensure productquality, Zeon is advancing integrated quality assurance
activities group-wide, across manufacturing, sales, andengineering functions, by strengthening cooperation
between plants, departments and research units (R&D
Center).
Quality Assurance System
Customers
Customerrequests &requirements

Products &services

Sales(Businessdivisions)
Stableproduction

Product safety
reviews
Product standard
approvals
Product
judgments

Manufacturing(Plants)

Product
planning

Quality
Assurance
Department
Design reviewof planning anddevelopment

Technology
development(Research
center)Production
preparations

Product
designQuality Assurance Initiatives
Targets and Results of Major Quality Assurance Initiatives
Results

Assessment

Timely responses to comComplete responses within aplaints, opinions from custom- single year
ers, etc.

Initiative (topic)

TargetWhile some cases temporarily exceeded a single year, nolong-term delays occurred

Partially Achieved – Achieved

Enhance customer satisfaction Analysis on customer satisfaction and initiatives for improvements

All business divisions conducted analyses on customer
satisfaction through management reviews to determineand engage with topics that
required a response

Achieved

SUSTAINABILITY REPORT 2023

52

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Framework Supporting Quality Assurance
To ensure a consistent supply of high-quality
products to our customers, we have put in place various
quality assurance systems in accordance with internal
regulations on quality assurance and conforming to
the ISO 9001:2015 international standard for quality
management systems. In 2010, we consolidated ourISO 9001 certification across the Group, and havemaintained this since then. Zeon Group companies havealso obtained global standard certifications related toquality.
In addition, to prevent quality issues from occurring,
we offer commentaries on actual case studies for issues
that could potentially arise as part of annual e-learningcompliance checks to confirm levels of understanding
for all employees. We are working to ensure that every
employee performs their duties based on an accurate
understanding of quality assurance.
‌Statusof Zeon Group Certifications for International
Quality Standards
Site

ISO
9001
:2015*1

ISO
13485:2016*2

IATF
16949:2016*3

FSSC
22000
v5*4

Japan
Zeon Corporation〇

Zeon Kasei Co., Ltd.

〇*5

Zeon Polymix Inc.

〇

Zeon Opto Bio Lab Co., Ltd.

〇Tokyo Zairyo Co., Ltd.

〇

Tohpe Corporation〇

Zeon North Co., Ltd.

〇

Zeon Chemicals Yonezawa Co., Ltd.

〇〇

Zeon Chemicals (Thailand) Co., Ltd.

〇

Zeon Advanced Polymix Co., Ltd.

〇

Zeon Chemicals Singapore Pte. Ltd.

〇

Zeon Europe GmbH〇

Zeon Chemicals Asia Co., Ltd.

〇

〇

〇

〇

Zeon Kasei (Changshu) Co., Ltd.
Zeon Kasei Mexico S.A. de C.V.

2. Chemical substance regulatory compliance
The regulatory environment for chemical substancesmanagement is undergoing major change globally, withlaws and regulations on chemical substances being
enacted and amended not just in the United States andEurope but also in Japan and Southeast Asia. As seen
with PFAS regulations, there are now more cases wheretrace impurities and molded products are also subject
to regulations. As a result, the number of regulations
to comply with is rising sharply. To comply with theseregulations at Zeon, we are creating a database of thesubstances in our raw materials and products, even thosepresent in minute quantities, and building a chemical
substances management system capable of continuously
tracking the most up-to-date regulatory information,
safety information, and other relevant information.

Audits

Outside Japan
Zeon Chemicals L.P.

1. Product safety reviews
We strive to ensure product safety in every possible
aspect by conducting product safety reviews (PSRs)
using our own checklists that consider product safety at
every stage of the product lifecycle, from initial productdevelopment through planning, design, manufacturing,sales, use, and disposal.

〇*6〇

Zeon Medical Inc.

Framework to Achieve Product Safety〇*1 ISO 9001 is the international standard for achieving ongoing
improvements in enhancing customer satisfaction and quality
management systems through product and services quality assurance.
*2 ISO 13485 is the global standard for quality management systems in thefield of medical devices for the purpose of continued manufacture andprovision of safe and useful medical devices. The standard has added
requirements specific to medical devices while omitting some of the ISO
9001 requirements.
*3 IATF 16949 is a standard issued by the International Automotive Task
Force (IATF) for the automobile industry sector, and which is intended
as a supplement to the requirements of ISO 9001 for automobile
manufacturers.
*4 FSSC 22000 (Food Safety System Certification 22000) is a standard
developed by the Foundation of Food Safety Certification to certify
management systems for the production of safe food.
*5 The logistical materials division has acquired certification limited to STEC®.
*6 Mizushima Plant acquired FSSC 22000 certification for the manufactureof food-grade synthetic aroma chemicals.

PL Audits
PL audits are audits performed by an auditing teamled by the director in charge of CSR and covering productliability (PL) and product safety. PL audits are conducted
for product liability activities for products of Zeonbusiness divisions spanning all stages of development,
manufacture, use, final consumption, and disposal.
Quality Audits
Quality audits are audits performed by an auditing
team led by the head of the Quality Assurance
Department that focus on checking the progress of
implementing quality improvement activities. They
are conducted at Zeon’s business divisions, plants,
laboratories, and affiliated companies.
Internal Quality Audits
Internal quality audits are conducted for the purposesof evaluating whether Zeon’s quality assurance
management system is operating effectively andefficiently based on ISO 9001:2015 and promoting
ongoing improvements. The audits are based on ISO
9001, and are structured so that the requirements of ISO
9001 are satisfied as long as Zeon’s internal regulations
are being complied with. The audits also focus on
customer satisfaction and overall optimization. The
audits are conducted for the whole of Zeon Group; as far
as possible, audits are conducted by an auditing teamcomprised of auditors from other divisions. We identify
issues through internal quality audits and connect these
activities to improvements in our systems and processes.

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Quality Data Management
At Zeon, we define all customer comments or
expressions of dissatisfaction with our products orservices as “complaints,” and utilize a complaint response
system to report, review, approve, and manage delivery.
We have also implemented a standards management
system configured to ensure that delivery standards,
product standards, and product inspection standards
remain consistent, and allow us to remain in compliancewith the delivery specifications concluded with ourcustomers. Inspection data is further checked against
product inspection standards in the product testing
system, with a decision of pass/fail assigned, and results
automatically forwarded to the ERP system. Changes toor abnormalities in processes are also reliably managed
through the deployment of a system that reports,
reviews, and sends out effectiveness evaluations,emergency actions, and remedial measures, to facilitate
implementation of assured change control and deviation
management. We plan to construct an even more reliable
and efficient system for quality assurance by means oflinking these systems going forward.

Risk Reduction for New Products
At Zeon, we conduct a comprehensive review (PSTR)*1
from quality assurance perspectives in addition to a
design review (DR) when transitioning from the productdesign to the production preparations stages, as well
as from the production preparations stage to actual
production.
This review confirms items related to productquality to ensure that new products satisfy the quality
requirements of our customers, and to allow us to
fulfill supply obligations. Items subject to review
include data on the chemical substances making up
the product; 3D-QFD (quality function deployment),for data-based clarification of cause-and-effectrelationships of information related to manufacturing;
FMEA*2, which attempts to prevent potential postproduction abnormalities; and testing methodologies
and testing facilities to measure product standards andcharacteristics of critical processes.
*1 PSTR (Product Stage-gate Transfer Review)*2 FMEA (Failure Mode and Effects Analysis)

Communicating Safety Information
For more information about safety information forchemical products handled by Zeon, see Chemical
Product Safety Information (→P. 24).

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Community
Basic ApproachSocial Contribution Activities
Information Disclosure

P. 54
P. 54
P. 59

Basic Approach
We believe that contributing to the development of local communities and building strong relationships of trust are
crucial to conducting stable business activities and creating improved products and services.

Zeon’s Approach to Social Contributions
We believe that social contributions are essentially
carried out through our core businesses. As a corporate
citizen, however, the complex set of issues faced bysociety and company activities are not independentof one another. We are therefore undertaking social
contribution activities outside of our core businesses toengage with society from a broader perspective.

In addition to planning activities related to supporting
reconstruction from the Great East Japan Earthquake
and common initiatives across Zeon plants and Group
companies, CSR activities have consistently been
undertaken independently by Zeon plants and Group
companies, with all such activities developed with afocus on their synergistic benefits.

Social Contribution Activities
Great East Japan Earthquake Reconstruction Support
Volunteering to support Great East Japan Earthquake
reconstruction
We invite employees to sign up for restoration
volunteer tours open to the public and send employeeson the tours on an ongoing basis. We cover the fullcost of the tours to encourage employee participation(canceled in FY 2022 due to the COVID-19 pandemic).
Zeon Charity Bazaar
In the context of restrictions on movement andbehavior associated with the COVID-19 pandemic,a bazaar was held in an online format at Zeon Group
companies in Japan. At the bazaar, employees supplied
items to be sold within the Group, with all the proceedsfrom the sale of these items, together with an additional
donation from the company, presented to Japan Platform(specified non-profit corporation) in FY 2022.

Eat and Root for Restoration
We are supporting the recovery of industries byactively using food grown in disaster-affected areas(provision of menus featuring food from the Tohoku
region at the employee cafeteria in the Takaoka Plant on
the 11th of every month).

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Common Group Initiatives
Holding of Chemistry Experiment Classrooms
Based on the motto of “nurturing future Nobel Prizewinners in chemistry,” we hold chemistry classrooms in various
areas to communicate the appeal of chemistry to children.
In FY 2022, in addition to continuing to hold chemistryclassrooms at events such as the Youngsters’ Science
Festival in Yamagata, we also conducted lessons during
school visits, which had been put on hold during the
COVID-19 pandemic, to Sakaigawa Elementary School in
Beppu City, Oita Prefecture.

At lessons given during school visits, after providing classroom instruction onenergy harvesting and CNT, students engaged in hands-on learning, making
water batteries and conducting experiments on electricity generation andcommunications during earthquakes.

Zeon Chemicals Yonezawa participated in the 2022 Youngsters’ Science
Festival in Yamagata. Together with children, employees added diluted
aroma chemicals to alcohol-based sanitizer to make a hand spray.

Internships at the Mizushima Plant

Internships (on-site training) at the Tsuruga Plant

Internships at the Kawasaki Plant (Facilities Tour)

Green Purchasing of Office Supplies
As part of our green procurement initiatives, we are
pursuing efforts for green purchasing of office supplies
at Zeon Group companies in Japan. In FY 2022, green
purchasing accounted for 33% of total purchases for all
Group companies.

Independent Projects
Support for Education
Zeon’s plants and Group companies offer assistanceto educational institutions with internships for highschool, technical college, and university students, bywelcoming plant tours by school groups, and by sending
special instructors to give lessons at schools. In FY 2022,
internships and plant tours were gradually reinstatedeven in the midst of the COVID-19 pandemic, with27 plant tours held, and 174 interns hosted by Group
companies in Japan.

Upon request from schools and the Japan Fire Engineering Qualification
Center, Zeon Chemicals Yonezawa gives lectures to school instructors oncompany needs regarding the qualification exam for hazardous material
engineers (advantages of acquiring the hazardous material engineer
qualification while in school and how the qualification is useful in safety
management at companies).

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Dialog with Communities
Plants participate in community dialog as part of the
Responsible Care Council activities and communicate
information on environment-related improvements,
safety, and disaster preparedness during plant tours forrepresentatives of local government authorities and forcommunity residents. In addition, since FY 2023 we havereleased videos on our website introducing each worksite
to facilitate dialogue with communities.

Responsible Care community dialog at the Kawasaki Plant

Zeon Advanced Polymix Co., Ltd. was recipient of the CSR-DIW 2023 Award,
from the Department of Industrial Works (DIW) for the seventh consecutive
year since 2017, in recognition of it being a company with outstanding CSR
activities. (Photos: Trophy and award ceremony)

Holding and Participating in Community Events
Zeon attaches great importance to our ties with local
communities. Zeon’s plants and Group companies holdvarious events, including summer festivals, and welcome
opportunities to participate in community events.

Video introducing worksites (YouTube)

Autumn festival at the Mizushima Plant

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Community Cleanup Activities
With the goal of being useful to and benefitting local
communities, Zeon’s plants and Group companies
conduct community cleanup campaigns around theirsites and beyond. In FY 2022, there were a total of 1,209
participants in 45 cleanup campaigns held in Japan,
despite restrictions associated with the COVID-19
pandemic.

Maintaining a Harmonious Relationship with the Local
Community
We engage in collaborative activities with local
communities in each region.

Zeon Advanced Polymix Co., Ltd. in Thailand has conducted volunteer
cleanup and donation activities over the course of many years. (Photo:
Repairing floor coating at a neighborhood school and donation of coating
supplies)

Himi coastal cleanup event by the Himi Futagami Plant

Participation in community cleanup event by Zeon Polymix

Zeon Chemicals Thailand Co., Ltd. in Thailand has participated in volunteer
activities to improve the community environment and donation drives forelementary schools for many years. (The photo shows its participation in acommunity tree-planting activity. Managing Director Horibata is in the center)

Participation in winter group cleanup project in Shunan City by Tokuyama
Plant and Zeon Yamaguchi
The Tokuyama Plant conducts activities to maintain forests with water
sources, with participation from a wide range of partners including
companies that use the water, in order to deepen understanding of forests’role in water source cultivation and global warming prevention as well as
to promote independent activities to improve and appropriately manage
forests.

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

In recent years, blue carbon has attracted attention as a source of CO2
absorption, and activities to conserve and restore blue carbon ecosystems
are underway in various regions. The Oshima tidal flats in Shunan City is
one such region. Here, an artificial tidal flat made using sediment generated
in a dredging project at the Port of Tokuyama Kudamatsu has created a
new habitat for eelgrass and Japanese eelgrass. The continuation of these
conservation activities has led to the creation of a diverse ecosystem today.
Zeon is participating in conservation activities at the Oshima tidal flats, andthrough the Japan Blue Economy Association, is purchasing and utilizing J
Blue Credits® created in a Shunan City blue carbon project to connect theOshima tidal flats to the Port of Tokuyama Kudamatsu. This not only helps
offset the CO2 emissions we produce, but also contributes to conserving thenatural environment in the surrounding area, promoting marine industry, andpromoting community vitalization.

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Information Disclosure
Communications Approach and Framework
We conduct public relations activities to promoteaccurate understanding of our philosophies, approaches,and various undertakings by stakeholders and the public,
and thereby increase recognition of Zeon and become
more known and trusted in the world.

Newspaper ads
Newspaper ads were rolled out in conjunction with TVcommercials.

Public Relations Committee
The Public Relations Committee discusses and sets
policy related to internal and external information
disclosure based on sustainability management.

Information Disclosure
Website• ‌Communicates information relating to the company, IR,products, and employment, etc.

Advertising and PR
We conduct advertising and PR activities aimed atenhancing the Zeon brand.
TV commercials• ‌Currently on air on terrestrial TV broadcasting (Regions:
Kanto region and Yamagata, Toyama, Fukui, Okayama,
Yamaguchi, and Kagawa Prefectures) and BS TV
broadcasting (Regions: National)• ‌TV commercials for Asia are broadcast throughout
Southeast Asia via satellite TV programs

Movie (available only online) connected to the new TV commercial releasedin October 2023

Radio commercials• Regions currently airing: Kanto area, Toyama
Prefecture, Fukui Prefecture, Okayama Prefecture, andYamaguchi PrefectureInternet Ads
To increase recognition and deepen understanding
for Zeon, we are also placing online ads, primarily
on YouTube. In FY 2023, we produced and released
videos featuring employees who are continuing to takeon challenges in new priority areas identified in our
Medium-Term Business Plan.

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Corporate GovernanceCorporate Governance
Risk ManagementCompliance
IR Communications

P. 60
P. 62
P. 63
P. 64

Corporate Governance
Basic Policy on Corporate GovernanceZeon Corporation aims to increase profits and enhance
corporate value on an ongoing basis while respecting andbalancing the various interests of its shareholders andother diverse stakeholders. To this end, we are continuing
efforts to establish a system that enables efficientand sound corporate management through corporate
governance.
Putting in place a corporate governance systemallows us to clarify the functions and roles of eachorganizational entity within the company and to carryout rapid decision-making and execution. We are also
improving corporate transparency through appropriatemonitoring and disclosure of business activities and theireffects.
Basic Policy on Corporate Governance (Japanese version only)
https://www.zeon.co.jp/csr/concept/pdf/200281514.pdf
Corporate Governance Report (Japanese version only)
https://www.zeon.co.jp/news/assets/pdf/230707.pdf

The main components of our Corporate Governance
System are summarized below.

1. Board of Directors
The Board of Directors meets, in principle, every
month with Audit & Supervisory members in attendance
to ensure compliance with applicable laws and the
Articles of Incorporation in the execution of business.
In addition to its statutory duties, the role of the Boardof Directors is to make important decisions aboutbasic management policy, strategy, and other aspectsof business execution. As of July 2023, the Board of
Directors consists of 11 directors, including 5 outside
directors.

2. Executive Committee
The Executive Committee, in accordance with the
Executive Committee Rules, comprises the President andexecutive officers ranked senior corporate officer andabove, meets twice a month in principle to examine andmake decisions on important business matters after due
deliberation involving consultation with attending fulltime Audit & Supervisory Board members. Importantbusiness matters stipulated in the Board of Director Rules
are examined and decided by the Board of Directors.
3. Audit & Supervisory Board
The Audit & Supervisory Board comprises fivemembers, including three external members. The Board
reports, discusses, and adopts resolutions on importantbusiness matters. In accordance with the auditing
guidelines established by the Audit & Supervisory Board,
each member audits directors’ execution of their duties
through various means, such as attending Board of
Directors meetings and monitoring business operations,
including at subsidiaries’ operations.
4. Director and Officer Nomination andCompensation Committee
The Director and Officer Nomination andCompensation Committee is positioned as an advisoryorgan to the Board of Directors for the purpose ofstrengthening the objectivity and transparency of theBoard of Directors functions related to nominating
directors and officers and deciding their compensation.
The committee is composed of seven members, of which
five are independent outside directors.
5. Corporate Value Creation Conference
The Corporate Value Creation Conference wasestablished as an advisory body to the Board of Directors,
to strengthen the decision-making and oversightfunctions of the Board with respect to the creation of
the Zeon Group’s corporate value, and activities aimed
at reflecting that value in our market capitalization.
The Conference has seven members, two of whom
are independent outside directors, two of whom are
independent outside auditors, and one of whom is an
outside expert (a lawyer who is not an advisor to Zeon).

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Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Corporate Governance System (As of September 2023)
General Meeting of Shareholders
Director andOfficer Nomination
4 and Compensation
Committee

Suggestions

Corporate Value
Creation
Conference

Collaboration

RequireadviceAuditing

Board of1 Directors

Audit &
Board

Decisions/Supervision(selections/dismissals)

Collaboration(assistance)

Auditing
Personnel

Financial
Auditors

Collaboration

Financial
AuditsAuditing

Representative Director

Department ofInternal Auditing(Appointments/
dismissals)(Dismissals)

3 Supervisory

2 Executive Committee

ReportingBusiness Execution&
Internal Controls
SystemCSR Conference
Risk Management Committee

Reporting(internal)

Compliance Committee

External
lawyers

Information Management Committee
Environmental and Safety Affairs Committee

Internal audits

Internal audits

5

Requireadvice(Appointments/dismissals)

Decisions/Supervision(appointments/dismissals)

Quality Assurance Committee
PL Committee

Reporting(internal)

Public Relations Committee
Sustainability
Conference

Reporting(external)

Sustainability Committee
Cyber Security Committee
Health and Productivity Management
Promotion Committee

Business divisions, indirect departments, laboratories, and plants
Control/monitoring

Subsidiaries and affiliates

Reporting(internal)
Reporting(external)

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Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Risk Management
Risk Management Framework
The Risk Management Committee leads Zeon’s risk
management. Activities to prevent law violations and tocomply with laws and regulations are conducted under
the Compliance Committee (For more information
about the framework, see Compliance [→P.63]). The
Information Management Committee implements
appropriate management of information, from the time
when information is obtained until the time when it isdeleted.
Risk Management and Compliance System

CSR Conference
Risk Management Committee
Prevention and control of risks
Crisis management

Internal Reporting System
We established its Internal Reporting System toquickly collect information on potential risks andfacilitate their appropriate resolution. Per the rules onreporting risk-related information, reports can be madenot only to one’s supervisor or the Risk Management
Committee directly, but also by calling the Compliance
Hotline (❶ to ❸ below), which connects the caller to an
external lawyer.
The Risk Management Committee conducts aninvestigation into the reported details and facilitates
appropriate resolutions, including instructing internalorganizations to institute measures based on theoutcomes of their investigations.
Internal reports in FY 2022: 4
Internal reporting flowchart

Compliance Committee

Prevention of law violations
Education and training in compliance with laws

Export Security Control Subcommittee
Corporate Governance Subcommittee

Information Management Committee
Appropriate management of information

Superior

1

Anti-trust Law Regulatory Subcommittee

Whistle-blower• Discovery of risks• Discovery ofcomplianceviolations

2

1

Risk Management Committee • Review of facts and33

External lawyer reporting line

Compliance Hotline

Risk Management Committee FY 2022 Results• ‌Handle incidents as they occur and take steps toprevent their recurrence• ‌Enhance risk and crisis control measures
Example: Revising the content of Business Continuity
Plans (BCPs) based around the scenario of a major
earthquake

BCP Formulation and implementation ofRelated Training
Recognizing the need on business continuity to
mitigate the impact of damage from disasters suchas earthquakes and severe storm and flood damage,
we have formulated a Business Continuity Plan (BCP),
and we implement training in order to enhance its
effectiveness. During FY 2022, emergency drills
conducted included one whole-company emergency
headquarters drill, one whole-company emergency
headquarters secretariat (CMT) drill, and two
manufacturing plant drills.
In addition, individual business divisions and plants
have drafted their own BCPs, conducting reviews (BCM)
and implementing their own training on an ongoingbasis, while putting in place systems to facilitate rapid
responses in the event of emergencies.

Notification and reporting
Feedback on investigation results

implementation ofcountermeasures• Receive report,
record facts,
notify of result

Compliance Hotline
Reporting contact: Hiroshi Yoshimura, lawyer‌ oshimura Horitsu Jimusho, Iketani Bldg. 3F, 1-9-7
Office: Y
Iidabashi, Chiyoda-ku, Tokyo, 102-0072
Tel: +81-3-3264-1805
Fax: +81-3-3264-1806
Email: yosimura@tkh.att.ne.jp

Structuring Our Cybersecurity System
The Cyber Security Committee reports directly
to the President. The Committee oversees planned
cybersecurity enhancements and provides prompt
emergency response. It is also responsible for managing
electronic information security (for structure diagram,see P. 61).
In addition, a Computer Security Incident Response
Team (CSIRT) within the Committee ensures prompt
response in the event of security incidents.

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Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Compliance
Compliance Initiatives
Based on the Sustainability Policy, Zeon Corporation
strives to prevent corruption through implementation of the
Sustainability and CSR Basic Policy as well as the CSR Codeof Conduct, Policy on Prevention of Bribery, Guidelines for
the Prevention of Bribery of Foreign Public Officials andOthers, and the Anti-trust Law Compliance Guidelines
among others. The various rules under the Sustainability
and CSR Basic Policy are regularly revised every three years,
based on group-wide rule management regulations.
The CSR Conference, whose chair is theRepresentative Director, is the highest decision-making
body for CSR-related issues. At its meetings, held twicea year in principle, activities and measures overseen byseven standing committees established under the CSR
Conference, including the Compliance Committee andthe Risk Management Committee, are deliberated anddecided. The CSR Conference receives progress reports
from the committees and issues directives as necessary.
The CSR Code of Conduct applies to the entire Zeon
Group both in Japan and globally and shares Zeon’s
compliance approach and initiatives.
To help ensure that compliance activities are
conducted, the “Compliance Text Q&A” has been
compiled and released on the intranet system. This
information is organized and shared so that employees
can confirm how to respond to specific incidents.
To increase compliance understanding andincorporation of this understanding into businessprocesses, employees in senior management roles andabove are requested to submit a CSR pledge every year.
Meanwhile, persons who engage in fraudulent actsare subject to discipline based on various Zeon rules
including the Employment Rules.

Compliance System
The Compliance Committee advances Zeon’s
compliance efforts. The Compliance Committee has threesubcommittees, namely the Anti-trust Law Regulatory
Subcommittee, the Export Security Control Subcommittee,
and the Corporate Governance Subcommittee.
Zeon’s Compliance System

Compliance Committee
Prevention of law violations Educationand training in compliance with laws
Anti-trust Law
Regulatory Subcommittee
Prevention of violations of
the Anti-trust Law
Export Security
Control Subcommittee
Proper security export control
Corporate Governance
Subcommittee
Reliability in financial reporting

Compliance Committee
FY 2022 Results• ‌Continued activities to establish and instill complianceawareness• ‌Redeveloped the management system for legal risks for
Zeon Group companies outside Japan
Anti-trust Law Regulatory Subcommittee• ‌Conducted reviews prior to the revision of product prices
in business divisions, carried out preliminary screenings
when meeting with executives of competitors, andreviewed the status of participation in industry bodies
Export Security Control Subcommittee• ‌Conducted seminars for ordinary employees and for
department personnel in charge• ‌Implemented numerous final assessments of control list
applicability and trade investigations
Corporate Governance Subcommittee•E‌ stablished controls for identifying the risk of andpreventing errors in consolidated financial statements.
Evaluated whether the controls were functioning correctly• ‌Convened five times in FY 2022, and no ineffective
controls were foundInternal Reporting System
We established the Internal Reporting System torapidly collect information on potential risks and facilitate
their resolution. (For more information about the Internal
Reporting System, see Risk Management.)

Internal Audits
Internal audits are performed for the purpose of
preventing improprieties and errors in business operations.
The Department of Internal Auditing inspects andassesses whether business operations in all departments
are being carried out appropriately and effectively
in accordance with laws and internal regulations,and orders improvements when there are incidents
of violations or non-compliance. In addition, theDepartment of Internal Auditing carries out periodic
follow-up audits on the progress of measures taken bydepartments.
FY 2022 results: 36 departments (16 departments at
Zeon Corporation, 10 Zeon Group companies inside
Japan, 10 Zeon Group companies outside Japan)
FY 2023 plan: 32 departments (15 departments at Zeon
Corporation, 7 Zeon Group companies inside Japan, 10
Zeon Group companies outside Japan)
Information Security Audits
Information security audits are internal audits on the handlingof information assets. They are conducted for all divisions anddepartments at Zeon using a self-inspection format.

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Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

IR Communications
Communication with Shareholders
Policies related to constructive dialogue with shareholders
Dialogue with shareholders is led by the department
responsible for IR and SR, and overseen by the relevant
director. The department responsible for IR and SR
exchanges information with other relevant departments
within the company as appropriate to provide accurate
and unbiased information to shareholders.
We will continue to expand the avenues of dialogue
apart from individual meetings. These include holding
quarterly briefings for investors, making financial
statements available on the Zeon Corporation website,and participating in company seminars for individual
investors. The IR & SR office collects and analyzes
feedback received in dialogue with shareholders andmakes reports to the President as appropriate. Basedon management regulations including those on insider
trading and appropriate information disclosure, we
strictly control unreleased important information while
engaging in dialogue with shareholders to prevent
information leaks.
General Meeting of Shareholders
On June 29, 2022 (Wednesday), we held our 97th
Annual General Meeting of Shareholders at an external
conference room (Station Conference Tokyo). We also
livestreamed the meeting for shareholders who were notable to come to the meeting in person. We mailed out
notices approximately three weeks prior to the meetingto allow investors to exercise their voting rights by postor online based on a full review of the proposals. The
week before mailing the notices, we publicly released
its content on our website and the website of the Tokyo
Stock Exchange.
We held the 98th General Meeting of Shareholders
on June 29, 2023 (Thursday) at the same venue andcontinue to livestream it as well.
In addition, we release audio files of quarterly financial
results briefings and videos of presentations by top
management on the current status of management at
Zeon.
For more information about the General Meeting of
Shareholders, see
https://www.zeon.co.jp/en/ir/stock/meeting/
For more information about Medium-Term Business Plan
presentation materials, see
https://www.zeon.co.jp/en/ir/library/midtermplan/Communicating Information to Shareholders
We periodically send a booklet to our shareholders
featuring updated business information and recent topics
of interest, etc.
The 98th Midyear Report, issued in December
2022, included a special feature on efforts to have all
employees create “stages” where individual employees
can demonstrate their strengths. The 98th Annual
Report, issued in June 2023, features information on
the positioning and aims of Phase 2 of STAGE30, our
Medium-Term Business Plan, as well as specific related
measures and target values.
We will continue to improve the Midyear Report tomake it more accessible and better meet shareholders’needs.
証券コード 4205

株主のみなさまへ
企業理念＝使命

特 集

第大地の永遠と人類の繁栄に貢献する実現に向けて第1フェーズで練り上げた具体策を実行に移す4年間の計画であり、「 経営基盤を『磨き上げる』」を新たに加えた

2022年4月1日～2023年3月31日

第2フェーズ（2023～2026年度）が始動

1

全社戦略

要となる方策

カーボンニュートラルとサーキュラーエコノミーを「ものづくり」
実現するへの転換を推進する

2050年を見据えて
Scope3の削減とその貢献を目指す

4つの全社戦略を推進します。各全社戦略についてはそれぞれ2026年度の目標値を掲げ、広くステークホルダーのみなさまとも進捗を共有することで、2030年ビジョン実現への歩みを着実に進めてまいります。

2026年度の目標値

2030年を見据えて
Scope1＋2を減らす

全社戦略

単体

（仮称）SDGs貢献製品
売上比率

56％

3

40%

個々の強みを

「舞台」
発揮できる
を
全員で創る

健康で意欲的に働ける環境を整える

COP

65％
70％

外国人/女性役員＊比率25％210 電池材料 590
2019年度を100

既存事業 ROIC
新規事業 売上高

新規事業を「探索する」

9%

160億円

社外連携 顧客テーマ

55％

年次有給休暇取得率

売上高指数

既存事業を「磨き上げる」

社員を活かす環境

日本ゼオン健康行動指標＊

11百万円「既存事業の磨き上げ」と社会課題解決に貢献する

社員エンゲージメント

エンゲージメント調査項目

労働生産性指標
一人当たり連結営業利益「新規事業の探索」の2026年度の目標値
エンゲージメント調査項目

29%

2019年度比

安定安全な生産を実現し、持続可能な「ものづくり」を推進する

両立によって要となる方策Scope1+2

CO2排出量 削減率

休業災害件数 ゼロ

298期 年度報告書

中期経営計画『STAGE30』の第2フェーズがスタートしました。2030年のビジョン「社会の期待と社員の意欲に応える会社」の中期経営計画＊取締役と監査役で社内外問わない

4

新設

経営基盤を

「磨き上げる」

コーポレートガバナンスを「磨き上げる」

社外役員*比率 過半数＊取締役と監査役問わない

女性管理職比率15％未満＊日本ゼオン健康行動指標：当社独自の指標

日本ゼオン IR12％

政策保有株式 対純資産比率

10件

2023-26年度累計

3

生活習慣病リスク低減に繋がる3つの行動（①BMI基準値維持、②有運動習慣、③非喫煙）のうち、2項目以上の達成者率

www.zeon.co.jp/ir/index.html

498th Annual Report

For the Annual Report and other Midyear Reports, see
https://www.zeon.co.jp/ir/library/businessreport/(Japanese version only)

Distributions
While maintaining our basic policy of paying out
steady dividends of excess earnings to shareholders, we
also aim to maintain a dividend payout ratio of 30% ormore and expand returns to shareholders.
In principle, Zeon Corporation distributes excess
earnings twice annually, through interim and yearend dividends. The General Meeting of Shareholders
decides the year-end dividend amount, and the Board of
Directors decides the interim dividend amount. Retained
earnings are leveraged for proactive capital investments,
development of innovative technologies, and production
innovations.
For more information about Zeon’s share price anddividends, see
https://www.zeon.co.jp/en/ir/stock/dividends/

SUSTAINABILITY REPORT 2023

65

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

ESG Data
Environment
SocialGovernance

P. 65
P. 66
P. 68

Environment
Zeon Corporation only

Toxic substances

Butadiene consumption (tons)
Butadiene emissions (tons)
Acrylonitrile consumption (tons)*The Himi Futagami Plant and the Tsuruga Plant were added in FY 2021.

FY 2018
289,912
3.4
29,205FY 2019284,390
3.0
28,775FY 2020
266,518
2.7
24,319FY 2021
246,958
2.8
27,629FY 2022229,642
2.6
21,219

4.0

3.0

3.1

3.3

2.9

Substances subject Consumption (tons)
to the PRTR Act
Emissions (tons)
Amount generated before compacting (tons)
Amount generated after compacting (tons)
Industrial waste
Amount sent to landfills (tons)
Industrial waste from plastic products (tons)
CO2 emissions (tons)

878,072
23.7
143,129
15,9320.0-

827,13423.3
130,153
15,115
3.2-

817,455
23.4
140,226
16,362
0.1-

782,41523.4
140,146
18,8493.8
1,614

790,98118.5
131,606
16,5151.7
1,488

545,024499,222453,980

526,727

462,156

CO2 emissions (tons) Scope 1CO2 emissions (tons) Scope 2
AtmosphericCO
2 emissions (tons) Scope 1+2
emissions
SOx emissions (tons)
NOx emissions (tons)
Soot emissions (tons)
Fluorocarbon leaks (tons-CO2)
Total water resource consumption (1,000 m3)
Water used from water systems (1,000 m3)
Water resources
Groundwater used (1,000 m3)
Industrial water used (1,000 m3)
Total wastewater discharge (1,000 m3)
COD emissions (tons)
Wastewater
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total consumption (crude oil equivalent, kL)
EnergyPer-unit energy consumption (kL/t-PDR)
Production equivalent (tons)

724,12250,954775,076
689
298
4
73
18,098237
017,861
15,399124
2
160
211,1280.12
1,723,677

682,175
95,366
777,540
774
270
7
107
17,741251
017,49015,1071412
157
226,1220.14
1,602,286

715,338
98,871
814,209
579
258
4
304
17,905259
017,646
15,433121
2133
215,980
0.13
1,655,367

690,544
88,448
778,992
797
281
7
446
17,811412
017,39915,2581412
131244,6120.13
1,876,274

701,923
32,791
734,714
514
225
4
311
17,961438
017,523
15,917110
2120
249,0160.14
1,767,586

Acrylonitrile emissions (tons)

Standards on the promotion of energy-saving/global warming countermeasures

Zeon Group companies in Japan(“0” indicates less than 0.5, and “0.0” indicates less than 0.05)
Substances subject
No. of substances (total)
to the PRTR Act
Amount generated before compacting (tons)
Amount sent to landfills (tons)
Industrial waste
Industrial waste from plastic products (tons)
CO2 emissions (tons)
Atmosphericemissions
Water resources
Energy*Optes Inc. was merged into Zeon Corporation in FY 2021.

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

3.5

3.6

4.2

2.2

2.8

2,746
1.3
-

2,323
2.8
-

2,247
14.3
-

859
7.6
142

957
2.1
150

Standards on the promotion of energy-saving/global warming countermeasures

52,34350,31853,681

8,370

7,109

CO2 emissions (tons) Scope 1CO2 emissions (tons) Scope 2CO2 emissions (tons) Scope 1+2
Total water resource consumption (1,000 m3)
Energy consumption (crude oil equivalent, kL)
Electricity consumption (1,000 kWh)

328
22,94982,861327
23,88486,744

4,479
9,138
13,617334
26,074
95,648

2,147
6,179
8,326
215
4,162
11,4793,821
6,904
10,725135
3,920
10,929

SUSTAINABILITY REPORT 2023

66

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Status of Certifications for International Environmental Standards
Organization scope (manufacturing divisions, manufacturing companies)
Takaoka Plant
Kawasaki Plant
Tokuyama Plant
Mizushima Plant
Himi Futagami Plant
Tsuruga Plant
Zeon Kasei Co., Ltd. (Head Office divisions including research laboratories)
Zeon Polymix Inc.
RIMTEC Corporation
Zeon Opto Bio Lab Co., Ltd.
Tokyo Zairyo Co., Ltd.
Zeon Chemicals Yonezawa Co., Ltd.
Zeon North Co., Ltd.
Zeon Advanced Polymix Co., Ltd.
Zeon Chemicals (Thailand) Co., Ltd
Zeon Chemicals L.P.
Zeon Chemicals Singapore Pte. Ltd.
Zeon Polymix (Guangzhou) Co., Ltd.
Zeon Kasei (Changshu) Co., Ltd.

ISO 14001
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○
○

SocialStatus of Certifications for International Quality Standards
Site
Japan
Zeon Corporation
Zeon Kasei Co., Ltd.
Zeon Polymix Inc.
Zeon Opto Bio Lab Co., Ltd.
Tokyo Zairyo Co., Ltd.
Tohpe Corporation
Zeon Medical Inc.
Zeon North Co., Ltd.
Zeon Chemicals Yonezawa Co., Ltd.
Outside Japan
Zeon Chemicals L.P.
Zeon Chemicals (Thailand) Co., Ltd.
Zeon Advanced Polymix Co., Ltd.
Zeon Chemicals Singapore Pte. Ltd.
Zeon Europe GmbH
Zeon Chemicals Asia Co., Ltd.
Zeon Kasei (Changshu) Co., Ltd.
Zeon Kasei Mexico S.A. de C.V.

ISO 9001:2015*1
○
○*5
○
○
○
○
○
○
○
○
○
○
○
○
○

ISO 13485:2016*2 IATF 16949:2016*3

FSSC 22000 v5*4
○*6

○

○
○

○

*1 ISO 9001 is the international standard for achieving ongoing improvements in enhancing customer satisfaction and quality management systems throughproduct and services quality assurance.
*2 ISO 13485 is the global standard for quality management systems in the field of medical devices for the purpose of continued manufacture and provision ofsafe and useful medical devices. The standard has added requirements specific to medical devices while omitting some of the ISO 9001 requirements.
*3 IATF 16949 is a standard issued by the International Automotive Task Force (IATF) for the automobile industry sector, and which is intended as a supplement
to the requirements of ISO 9001 for automobile manufacturers.
*4 FSSC 22000 (Food Safety System Certification 22000) is a standard developed by the Foundation of Food Safety Certification to certify management
systems for the production of safe food.
*5 The logistical materials division has acquired certification limited to STEC®.
*6 Mizushima Plant acquired FSSC 22000 certification for the manufacture of food-grade synthetic aroma chemicals.

SafetyRate of conducting plant safety evaluations (%)
No. of RC audits conducted (times/year)
No. of safety incidents
No. of lost worktime accidents
No. of serious accidents without lost work time
Lost work time accident rate
Severity rate of lost worktime accidents
No. of accidents in logistics

100
1
6
4
0
0.36
0.00
0

SUSTAINABILITY REPORT 2023

67

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Basic Information on Zeon Corporation Employees (non-consolidated; does not include non-permanent employees)

No. of employees
Ratio of female employees (%)
No. of new hires

FY 2021
Men Women
1,843
274

New graduates

78

20

Mid-year

79

Total
2,117
12.9

FY 2022
Men Women
2,062
318

Employees that joined the company inApril 2023
Employees that joined the company
232
between April 2022 and March 2023

98

86

21

16

95

195

37

13.6
16
40.1

9.5
16
36.6

70.0
13.1
32
39.7

39

8

47

Ratio of mid-career hires (%)
Average years of employment (yrs.)
No. of non-Japanese employees
Average age (years)

16.2
13
40.2

13.1
15
37.1

59.0
15.8
28
39.8

Number of employees leaving jobs

23

10

33

Notes (FY 2022)

Total
2,380
13.4

107

Number of employees requesting
voluntary retirement

As of March 31, 2023 (excluding those who resigned as of the end of March)

Results of Initiatives
Female manager ratio (%)
Paternity leave acquisition ratio (%)
Gender disparity in wages (all workers) (%)
For full-time regular workers (%)
For part-time and contract workers (%)
Ratio of employees with disabilities (%)*1 (Legally required ratio of 2.3%)

FY 2021 FY 2022
Notes (FY 2022)
5.2
5.7
14
51 April 2022 to March 2023
—
74.2
—
78.2
—
64.6
2.41
2.58 As of June 2023

Ratio of absences due to injury or illness (absenteeism) (%)

0.56

Productivity loss ratio (presenteeism) (%)

40.6

Ratio of total persons absent long term

0.70 for more than 1 month and persons onleave in the total number of employees
Calculated the average loss ratio for40.3 all employees using the WHO-HPQ
measure of absolute presenteeism

Ratio of those taking stress checks (%)

96

Number of employees taking annual leave/acquisition ratio (%)

54

Ratio of employees undergoing routine medical checkups (%)
Average designated overtime worked (hours)
Overtime exceeding statutory monthly amount of 45 hours (total
number: persons)

100
24.2

100
21.4 April 2022 to March 2023

449

467 April 2022 to March 2023

Zeon Healthy Behavior Indicator (%)—• Have a BMI within the standard range• Engage in routine exercise• Do not smoke
Usage ratio for health support app (%)
Participation ratio for practical health routines events (Challenge 60) (%)
Rate of providing specified health guidance (%)
Ratio of participation by eligible for mental health seminars (Line Care
Training) (%)

—
—
—

93

January 2022 to December 2022 (due61 to annual paid leave being granted asof January 1)

Results of regular health checkups

60 conducted between January and June
2022

36
100
44.3

66 Same as above
26 Same as above
76 Same as above
52
100
23.4

76

88

FY 2021

FY 2022

3,981

4,293

120

124

As of March 31, 2023

Basic Information on Zeon Group Employees
No. of employees
No. of new graduate hires

Notes (FY 2022)
Employees that joined the company inApril 2023

As of March 31, 2023 (excluding those who resigned as of the end of March), scope is applicable consolidated Group companies in Japan

SUSTAINABILITY REPORT 2023

68

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

GovernanceManagement Organization
No. of members of the Board of Directors

11

Of which, are outside directors

5

Of which, are women directors

3

No. of members of the Audit & Supervisory Board5

Of which, are outside auditors

3*As of July 2023

Risk Management
No. of reports received via the Internal Reporting
System4*FY 2022

Internal Audits
No. of departments/companies audited

36*Zeon Corporation: 16 departments, 10 Zeon Group companies inside Japan, 10 Zeon Group companies outside Japan

Education
Rate of participation in information security education (%)
E-learning
Rate of participation in sustainability/CSR education (%)
Rate of participation in checks of compliance comprehension (%)
Lectures on laws and regulations* (number of sessions)Internal lectures
Total number of participants (number)

FY 2021

92.3
96.7
97.9
27
More than 6,000

FY 2022*Lectures on the Antimonopoly Act, trade secrets, personal information protection, contract precautions, and other legal and regulatory topics

For more detailed information, see the Corporate Governance Report
Corporate Governance Report (Japanese version only)
https://www.zeon.co.jp/news/assets/pdf/230707.pdf

96.4
97.3
99.8
34
6,999

SUSTAINABILITY REPORT 2023

69

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

GRI Content Index
This report uses GRI Standards as reference.
The following reports also include disclosures.

● Integrated Report/IR Libraryhttps://www.zeon.co.jp/en/ir/library/● Corporate Governance Report (Japanese version only)
https://www.zeon.co.jp/news/assets/pdf/230707.pdf

Statement ofuse
GRI 1 used

Zeon Corporation has reported the information cited in this GRI content index for the period [April 1, 2022–March 31,2023] with reference to the GRI Standards.
GRI 1: Foundation 2021

GRI
DisclosureStandard

Published format or item and page number (Integrated
Report items are in blue, Sustainability Report items are in red)General Disclosures

GRI 2: General Disclosures 2021
1. The organization and its reporting practices
2‑1
Organizational details
Entities included in the organization’s sustainability reporting
2‑2
2‑3
Reporting period, frequency and contact point
2‑4
Restatements of information
2‑5
External assurance
2. Activities and workers
2‑6
Activities, value chain and other business relationships
2‑7
Employees
2‑8Workers who are not employees
3. Governance
2‑9Governance structure and composition
2‑10
Nomination and selection of the highest governance body
2‑11
Chair of the highest governance body
2‑12Role of the highest governance body in overseeing the management of impacts
2‑13Delegation of responsibility for managing impacts
2‑14Role of the highest governance body in sustainability reporting
2‑15
Conflicts of interest
2‑16Communication of critical concerns
2‑17Collective knowledge of the highest governance body
2‑18
Evaluation of the performance of the highest governance body
2‑19
Remuneration policies
2‑20
Process to determine remuneration
2‑21
Annual total compensation ratio
4. Strategy, policies and practices
2‑22Statement on sustainable development strategy
2‑23
Policy commitments
2‑24
Embedding policy commitments
2‑25
Processes to remediate negative impacts
2‑26
Mechanisms for seeking advice and raising concerns
2‑27Compliance with laws and regulations
2‑28

Membership associations

5. Stakeholder engagement
2‑29
Approach to stakeholder engagement
2‑30

Collective bargaining agreements

Company Profile (15)
Editorial Policy (3)Editorial Policy (3)———ESG Data (67)—Corporate Governance Report, Corporate Governance (60)Corporate Governance Report, Corporate Governance (71)Corporate Governance Report
Sustainability Management (7), Risk Management (62)Sustainability Management (7), Risk Management (62)Sustainability Management (7)Corporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Report
Corporate Governance Report, Corporate Governance (71)Corporate Governance Report, Corporate Governance (71)Corporate Governance Report, Corporate Governance (71)Zeon’s Sustainability (6)Zeon’s Sustainability (6)Zeon’s Sustainability (6)——Compliance (63)Becoming a Signatory to the United Nations Global Compact
and Participating in Subcommittee Activities (28)
Stakeholder Engagement (61)Labor Agreements and Communication between Labor andManagement (40)

GRI
DisclosureStandard

Material Topics
GRI 3: Material Topics 2021
3-1
Process to determine material topics
3-2
List of material topics
3-3Management of material topics

Activities to Define Materiality (58)——SUSTAINABILITY REPORT 2023

70

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

GRI
DisclosureStandard

GRI 200 Economic Standard Series
Economic PerformanceGRI 201: Economic Performance 2016
201-1

201-3

Direct economic value generated and distributed
Financial and Non-financial Highlights (13), Data (77)
Financial implications and other risks and opportunities due to
Risk and Opportunity (26), TCFD (66)climate change
Defined benefit plan obligations and other retirement plans
—

201-4

Financial assistance received from government

201-2

—

Market PresenceGRI 202: Market Presence 2016
Ratios of standard entry level wage by gender compared to202-1
local minimum wage
Proportion of senior management hired from the local
202-2
community
Indirect Economic Impacts——

GRI 203: Indirect Economic Impacts 2016
203-1

Infrastructure investments and services supported

—

203-2

Significant indirect economic impacts—

Procurement Practices
GRI 204: Procurement Practices 2016
204-1

Proportion of spending on local suppliers—

Anti-corruption
GRI 205: Anti-corruption 2016
205-1
205-2
205-3

Operations assessed for risks related to corruption—
Communication and training about anti-corruption policies andCompliance (63)procedures
Confirmed incidents of corruption and actions taken—

Anti-competitive Behavior
GRI 206: Anti-competitive Behavior 2016
Legal actions for anti-competitive behavior, anti-trust, and206-1
monopoly practices
Tax

Compliance (63)

GRI 207: Tax 2019
207-1

Approach to tax

—

207-2

Tax governance, control, and risk management

—

207-3

Stakeholder engagement and management of concerns

—

207-4

Country-by-country reporting—

GRI
DisclosureStandard

GRI 300 Environmental Standards Series
Materials
GRI 301: Materials 2016
301-1

Materials used by weight or volume

—

301-2

Recycled input materials used

—

301-3

Reclaimed products and their packaging materials—

EnergyGRI 302: Energy 2016
302-1

Energy consumption within the organization

Overview of Environmental Impacts (15), ESG Data (65)302-2Energy consumption outside of the organization

—

302-3

Energy intensity

ESG Data (65)302-4Reduction of energy consumption

Climate Change (17)302-5Reductions in energy requirements of products and services

Climate Change (17)Water and EffluentsGRI 303: Water and Effluents 2018
303-1

Interactions with water as a shared resource

Air, Water, and Waste Materials (22)303-2Management of water discharge-related impacts

Air, Water, and Waste Materials (22)303-3Water withdrawal

Overview of Environmental Impacts (15), ESG Data (65)
Overview of Environmental Impacts (15), Air, Water, andWaste Materials (22), ESG Data (65)
Overview of Environmental Impacts (15), ESG Data (65)303-4 Water discharge
303-5

Water consumption

SUSTAINABILITY REPORT 2023

71

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Biodiversity
GRI 304: Biodiversity 2016
Operational sites owned, leased, managed in, or adjacent to, protect304-1—
ed areas and areas of high biodiversity value outside protected areas
304-2 Significant impacts of activities, products, and services on biodiversity —304-3 Habitats protected or restored
IUCN Red List species and national conservation list species
304-4
with habitats in areas affected by operations
Emissions
GRI 305: Emissions 2016
305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

Community (58)—

Overview of Environmental Impacts (15), Climate Change (17),
ESG Data (65)
Overview of Environmental Impacts (15), Climate Change (17),
ESG Data (65)—305-4 GHG emissions intensity—

305-5 Reduction of GHG emissions

Climate Change (17)305-6 Emissions of ozone-depleting substances (ODS)
Nitrogen oxides (NOx), sulfur oxides (SOx), and other305-7
significant air emissions
Waste
GRI 306: Waste 2020—
Air, Water, and Waste Materials (22)306-2 Management of significant waste-related impacts

Overview of Environmental Impacts (15), Air, Water, andWaste Materials (22), ESG Data (65)Air, Water, and Waste Materials (22)306-3 Waste generated

Air, Water, and Waste Materials (22), ESG Data (65)306-4 Waste diverted from disposal

Air, Water, and Waste Materials (22), ESG Data (65)306-5 Waste directed to disposal

Air, Water, and Waste Materials (22), ESG Data (65)306-1

Waste generation and significant waste-related impacts

Supplier Environmental Assessment
GRI 308: Supplier Environmental Assessment 2016
308-1
308-2

New suppliers that were screened using environmental criteria Supply Chain (27, 28)
Negative environmental impacts in the supply chain and
Supply Chain (27, 28)
actions taken

GRI
DisclosureStandard

GRI 400 Social Standards Series
Employment
GRI 401: Employment 2016
401-1

New employee hires and employee turnover
Diverse Human Resources (33), ESG Data (67)
Benefits provided to full-time employees that are not provided
401-2—
to temporary or part-time employees
Specific Initiatives to Realize Freedom and Well-Being (39),401-3 Parental leave
ESG Data (67)
Labor/Management Relations
GRI 402: Labor/Management Relations 2016
402-1

Minimum notice periods regarding operational changes

Occupational Health and Safety

Labor Agreements and Communication between Labor andManagement (40)

GRI 403: Occupational Health and Safety 2018403-1

Occupational health and safety management system403-2

Hazard identification, risk assessment, and incident investigation Occupational Health and Safety (44)403-3

Occupational health services
Worker participation, consultation, and communication on
403-4
occupational health and safety403-5 Worker training on occupational health and safety403-6 Promotion of worker healthPrevention and mitigation of occupational health and safety
impacts directly linked by business relationships
Workers covered by an occupational health and safety
403-8
management system403-9 Work-related injuries
403-7

403-10 Work-related ill healthOccupational Health and Safety (44)
Health and Productivity Management Promotion (36)
Health and Productivity Management Promotion (36)
Health and Productivity Management Promotion (38),
Occupational Health and Safety (44)
Health and Productivity Management Promotion (38),
Occupational Health and Safety (44)
Occupational Health and Safety (44)
Occupational Health and Safety (44)
Occupational Health and Safety (44), ESG Data (66, 67)
Occupational Health and Safety (44), ESG Data (66, 67)

Training and Education
GRI 404: Training and Education 2016
404-1

Average hours of training per year per employee
Programs for upgrading employee skills and transition
404-2
assistance programs
Percentage of employees receiving regular performance and404-3
career development reviews

ESG Data (68)
Reformation of the Personnel System (41), Organizational and
Human Resources Development (42)—SUSTAINABILITY REPORT 2023

72

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

Diversity and Equal Opportunity
GRI 405: Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

Human Resources (29, 33), ESG Data (67, 68)405-2

Ratio of basic salary and remuneration of women to men

Financial and Non-financial Highlights (14)Non-discrimination
GRI 406: Non-discrimination 2016406-1

Incidents of discrimination and corrective actions taken

Freedom of Association and Collective Bargaining
GRI 407: Freedom of Association and Collective Bargaining 2016
407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at riskChild Labor

Upholding Positive Working Environments by Protecting
Human Rights and Prohibiting Discrimination (26)Upholding Positive Working Environments by Protecting
Human Rights and Prohibiting Discrimination (26), Labor
Agreements and Communication between Labor andManagement (40)

GRI 408: Child Labor 2016
Operations and suppliers at significant risk for incidents of child Upholding Positive Working Environments by Protecting
408-1
labor
Human Rights and Prohibiting Discrimination (26)Forced or Compulsory LaborGRI 409: Forced or Compulsory Labor 2016
Operations and suppliers at significant risk for incidents of
409-1
forced or compulsory labor
Security Practices

Upholding Positive Working Environments by Protecting
Human Rights and Prohibiting Discrimination (26)

GRI 410: Security Practices 2016
Security personnel trained in human rights policies or
410-1
procedures
Rights of Indigenous Peoples—

GRI 411: Rights of Indigenous Peoples 2016
411-1

Incidents of violations involving rights of indigenous peoples

Human Rights Assessment

Upholding Positive Working Environments by Protecting
Human Rights and Prohibiting Discrimination (26)

Local Communities
GRI 413: Local Communities 2016
Operations with local community engagement, impact
413-1
assessments, and development programs
Operations with significant actual and potential negative
413-2
impacts on local communities
Supplier Social Assessment

Community (54)Community (54)

GRI 414: Supplier Social Assessment 2016414-1

New suppliers that were screened using social criteria

Supply Chain (27, 28)

414-2

Negative social impacts in the supply chain and actions taken

Supply Chain (27, 28)

Public Policy
GRI 415: Public Policy 2016
415-1

Political contributions—

Customer Health and Safety
GRI 416: Customer Health and Safety 2016
Assessment of the health and safety impacts of product and
416-1
service categories
Incidents of non-compliance concerning the health and safety
416-2
impacts of products and services
Marketing and Labeling

Chemical Product Safety Information (24)—

GRI 417: Marketing and Labeling 2016
417-1
417-2
417-3

Requirements for product and service information and labeling Chemical Product Safety Information (24)
Incidents of non-compliance concerning product and service—
information and labeling
Incidents of non-compliance concerning marketing communications —Customer Privacy
GRI 418: Customer Privacy 2016
Substantiated complaints concerning breaches of customer
418-1
privacy and losses of customer data
Socioeconomic Compliance
GRI 419: Socioeconomic Compliance 2016
Non-compliance with laws and regulations in the social and419-1
economic area

Compliance (63)Compliance (63)SUSTAINABILITY REPORT 2023

73

Contents

Zeon’s Sustainability

Environment

Human Rights

Human Resources

GRI Content Index

Occupational Health and Safety

Quality Assurance

Community

Corporate Governance

ESG Data

United Nations Global Compact Index

United Nations Global Compact Index
This table shows the measures taken by, and reporting made by, the Zeon Group in relation to the Ten Principles of the
UN Global Compact promoted by the United Nations.
The UN Global Compact

Corresponding page

Human Rights
Principle 1:
Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2:
make sure that they are not complicit in human rights abuses.

Human Rights (26)

Human Rights (26)LabourPrinciple 3:
Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;

Human Rights (26), Human Resources (40)

Principle 4:
the elimination of all forms of forced and compulsory labour;

Human Rights (26)

Principle 5:
the effective abolition of child labour; andHuman Rights (26)

Principle 6:
the elimination of discrimination in respect of employment andoccupation.

Human Rights (26)

Environment
Principle 7:
Businesses should support a precautionary approach toenvironmental challenges;

Environment (12, 13)

Principle 8:
undertake initiatives to promote greater environmental
responsibility; andEnvironment (12, 13)

Principle 9:
encourage the development and diffusion of environmentallyfriendly technologies.

Environment (12, 13)

Anti-Corruption
Principle 10:
Businesses should work against corruption in all its forms,
including extortion and bribery.

Human Rights (26), Compliance (63)CSR REPORT 2021

Inquiries: Corporate Sustainability Department, Zeon Corporation
Shin Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604 https://www.zeon.co.jp/en/

Published: March 2024
Revised: June 2024