1-1, Mikage-cho, Shunan-shi, Yamaguchi 745-8648, Japan
Tel: +81-834-34-2000 Fax: +81-834-33-3790
https://www.tokuyama.co.jp/eng/
Corporate Social Responsibility Division
Tel: +81-834-34-2008 Fax: +81-834-34-2061

CSR Report 2019Cover
The cover shows materials made by the TokuyamaGroup as well as products and services that aredelivered to society using those materials. The
illustrated lines connecting animals, nature, people andsociety represent Tokuyamaʼ s eﬀorts to create newvalue for the future.

Published in September 2019

CONTENTST O K U Y A M A
V I S I O NHarnessing the Potential ofChemistry to Shape the Next
Century
Since its founding in 1918, the Tokuyama Group has overcome many obstacles
on its quest to deliver products and services that truly benefit people’s lives.
From the production of soda ash in Japan to cement and diverse chemicals,

M ission
Centered on the field of chemistry,

the Tokuyama Group will continue tocreate value that enhances people’s lives

Aspirations

energy. As it embarks on another 100 years in business, Tokuyama will keep
striving to create innovative products and services to deliver on its mission:“Centered on the field of chemistry, the Tokuyama Group will continue tocreate value that enhances people’s lives.”

Message from the President

6

The Value Creation Process at Tokuyama

8Tokuyama and CSR

10Materiality Determination

12

Close-up 1

		Tackling the Challenge of Significantly
Reducing CO2 Emissions
13

Close-up 2

		Tokuyama's Workforce Worldwide
14

Tokuyama’s Responsible Care

Shift from a focus on quantity to quality

16

Tokuyama’s Environmental Management〈FY2025〉

18

Helping to Fight Global Warming

Leader in its traditional businesses in Japan

21

Strengthening Chemical Management

Global leader in advanced materials

Tokuyama makes the most of its technology and experience to serve a wide
range of sectors including electronics, ICT, healthcare, environment, and4

Va lue s
Customer satisfaction is the source of profits

22	Reducing Substances with Environmental

Impact and Waste
26	Accident Prevention and Occupational

Health and Safety

A higher and broader perspective
Personnel who consistently surpass their

28	Spotlight

Innovative Dental Materials andDevices for Health and Longevity

predecessors

Integrity, perseverance, and a sense of fun
32

Developing Talent and Promoting Diversity

36

Corporate Governance39

Communication with Stakeholders

42	History of the Tokuyama Group's Businesses

and Value Creation
45

Third-Party Review

46

Site Reports50

		

Business Activities and Biodiversity /Detailed Data

52

Corporate Data

53

Editorial Policy

Message from the President

Creating Value That Benefits People’s Lives
through Chemistry
undertook comprehensive inspections of all process-materials are essential to improving the performance

immediately addressed any issues identified. In cases

demand with the growing popularity of electric vehi-

es, including checking for compliance violations, andwhen processes were undergoing change, we reviewed
legal issues and conducted relevant risk assessments.

In terms of environmental management, we re-checked the processes at all of the Group’s produc-

The Tokuyama Group has established a target ofachieving a 15% reduction in CO₂ emissions of busi-

ness as usual (BAU) by fiscal 2030, compared withfiscal 2013 levels, and is striving to surpass these

The Tokuyama Group is earnestly striving to fulfill its
corporate social responsibility (CSR). We have con-ducted a materiality assessment to identify priority

issues for our CSR initiatives. This is to ensure that

We are working hard to transform our corporate cul-

Japan is studying the possible adoption of carbon

and promoting a fresh mindset among employees.

pricing, which could change our investment criteria.

As a thermal power plant operator, we recognize
our responsibility to shift to renewable energy anddevelop technologies to reduce our CO₂ emissions asa requirement for our future.

ture by increasing communication in the workplace

The most important element in the value creation
process is time. This is why we are focusing in chang-

ing how employees approach time, while working toeliminate gaps in internal communication that slow
down our business execution.

The percentage of women in our workforce isunrealistic. The change has given us greater flexibility

impact of our waste gypsum board recycling busi-

turn is strengthening our corporate governance.

Responsible Care

Strengthening Corporate
Governance

Safety continued to be our highest priority in fiscal

Two years ago, we shifted our governance structureGroup’s production facilities, following up on a fireTOKUYAMA CSR REPORT 2019

Transforming Our Corporate
Culture and Encouraging Womenin the Workplace

attitudes. We will deploy more women on the produc-

address social issues.

4ucts such as for pets and livestock.

We received an award from Japan’s Minister of theto broadly appoint capable outside directors, which into that of a company with an Audit & Supervisory

drugs. We will also seek to develop consumer prod-

In April 2019, we revised our independence criteria

also strengthened the monitoring functions.

addressing the material issues that we identified andperior technologies as a chemicals company to help

to manufacturing bulk pharmaceuticals for genericstill low, despite our efforts to promote diversity. To

understand the business details before voting. It hasfor outside directors, which were overly restrictive andimplementing solutions, seeking to leverage our su-

that broadly contribute to people’s health, in addition

Developing Products That AddressSocial Issues

responsibilities and encouraging them to better

Tokuyama will supply value to society while con-ducting a sustainable business. We are now directly

materials and devices, and eyeglass materials. In thetargets. While doing our utmost to achieve this target, we aim to narrow the gap to even higher targets.

Committee, effectively increasing their supervisory

In the healthcare field, we are accelerating devel-

pharmaceutical business, we will develop products

Establishing CO2 Emission
Reduction Targets

directors who comprise the Audit & Supervisory

mal management.

duct accident prevention and initial response drills todents and local governments.

Committee. This structure gives voting rights to thebeyond heat dissipation, contributing to overall ther-

opment of innovative new products such as dental

maintain the trust that we have built with local resi-

Defining Materiality to Accelerate
Corporate Social Responsibility

cles. In the future, we will develop materials that gotion facilities, accompanying the safety and accident
prevention inspections. We will also continue to con-

Hiroshi Yokota
Presidentof power semiconductors which are in increasing

2019. Pursuing safety and accident prevention,
we conducted emergency inspections at all of theat the Kashima Factory in 2018. As part of these, we

Environment in recognition of the beneficial social
ness. Our expertise in chemicals allows us to offer

solutions to environmental issues. We will leverage
our technologies to create businesses that help
address environmental issues, such as deploying ourion exchange membrane technology for waste water

achieve more progress, much change is needed—
for instance to personnel regulations and employeetion floor so that they can leverage their skills, while
making other improvements to develop the skills andadvance the careers of women. We will also establish

flexible work provisions so that women who wish to

return to work soon after having children are not restricted in their opportunities.

treatment, and using renewable energy to manufacture hydrogen with a zero carbon footprint.

Among information and communications technol-ogy (ICT) applications, one of our major products isheat dissipation materials for semiconductors. TheseTOKUYAMA CSR REPORT 20195

The Value Creation Process
at Tokuyama

How Tokuyama’s Business Addresses the SDGs
The Tokuyama Group is committed to contributing to the achievement

In pursuing the Tokuyama Group’s mission of creating value that benefits
people’s lives through chemistry, we practice CSR in management, based on
management resources amassed over a century in business, and conduct
our business activities with consideration for environmental, social, andgovernance performance. You can count on the Tokuyama Group to do its
part in building a sustainable world by leveraging its core technologies tosupply products that help solve social issues.

Social issues▶Climate change andglobal warming mitigation▶Biodiversity conservation▶Stable procurement ofenergy, resources, andfood supplies

Specialty Products

Polycrystalline silicon, silica,
and ceramic materials
Life & Amenity

Organic functional materials,
pharmaceutical APIs

Chemicals▶Natural disaster mitigation▶Improved labor conditions▶Cybersecurity measures

CementSintering technology, resource
reprocessing technology

Manufacturing Capital
Natural harbor and competitive
industrial complex▶Contribute to healthy
longevity

Highly integrated andhigh-eﬃciency Tokuyama Factory▶Sustainable infrastructurebuilding

Eighth largest private power plant
capacity in Japan▶Increased regional vitality

6

Electrolysis technology,
reﬁning technology

Low birth rates,
aging demographics▶Improved industrial
competitivenessTOKUYAMA CSR REPORT 2019its products and business activities are in alignment with the SDGs in
the conduct of its business. The Tokuyama Group will continue to pur-sue R&D with a view to contributing to the SDGs, seeking to be of value
to society and remain the choice of customers.

SDG-Oriented Products

Tokuyama s Unique
Technologies

Human Capital

Financial Capital

Honest andcommitted
human resourcesSound
management

Customer-oriented R&D andbusiness activities

High puriﬁcation
Powder technology
Reduction nitridization
SinteringSol-gelTraditional Business

Safety and security

Nations General Assembly in September 2015. The Group verifies that

Tokuyama
Specialty Chemicals

Global issuesof the Sustainable Development Goals (SDGs) adopted by the United

Photopolymerization

Electrode and membrane
Organic synthesis anddirect hydration

・ Environmental management
・ Energy conservation
・ CO₂ reduction
・ Waste management
・ Management of chemical substances
・ Resource recycling

Socially Responsible
Management
・ Process safetyand disaster prevention
・ Governancestructure
・ Occupational healthand safety
・ Compliance・ Risk management ・ Product quality and safety
・ Diversity
・ Work-life balance
・ Respect for human rights

facing all of humanity. Meeting these goals by the target
year of 2030 will require global-scale cooperation.

Creating Value That Beneﬁts
Peopleʼs Lives through Chemistry

Creating a low-carbon,
recycling oriented society
Tokuyama helps to build a more

Environment & Energy▶Liquid hydrogen▶Recycling of industrial waste▶Utilization of waste plastic
for fuel

sustainable society by recycling
waste plastics, sludge, and otherrefuse, and by reusing
co-products generated bymanufacturing processes.

▶PVC window

Crystallization, deposition
Molecular design

Adopted by the United Nations, the SDGs address issues

Supporting innovation
ICT▶Semiconductor materials▶Thermal management
materials▶High-purity chemicals
for electronics manufacturing

Healthcare▶Bulk pharmaceuticalingredients▶Microporous film
▶Dental materials▶Medical diagnosis systems

By enabling higher performanceand eﬃciency in consumer
electronic and energy products,
Tokuyama helps to make society
more convenient andprosperous.

Contributing to healthand longevity
Tokuyama provides products forpleasant and healthy living.
Especially notable are bulk
pharmaceuticals for genericdrugs, and plastic lens materials
produced with its unique organic
synthesis technology.

TOKUYAMA CSR REPORT 20197

Tokuyama and CSR

Tokuyama has createdthis symbol for CSR
promotion. Depicting a
sunflower, the symbol
is intended to convey

The Tokuyama Group practices corporate social responsibility (CSR) by realizing its vision of leveraging chemistry to create value that benefits people’s
lives. The Group will leverage its chemical technologies and implement CSRoriented management to continue creating and supplying new value thatbrings contentment to people and contributes to social progress.

the Company’s active,
healthy and honest stance toward
CSR. Under this symbol, the TokuyamaGroup will not only pursue complianceand efficiency in its business operations, but will also work to develop into

a vibrant, sound corporate entity that issocially and environmentally beneficial
and is trusted by all stakeholders.

Board of Directors

CSR Framework

President

CSR Promotion Council

Risk Management andCompliance Committee

Tokuyama operates a CSR Promotion Council that ischaired by the president and comprises all executive

Seven Committees

officers in Japan. The Council decides on the policies

Financial Reporting Committee

and goals related to CSR, and facilitates Tokuyama’s

Fair Trade and Competition Committee

CSR initiatives. CSR initiatives are anchored in the suit-

Security Trade Committee

able execution of corporate governance and internal

Information Security Committee

controls, so the CSR Promotion Council also discusses

Environment Committee

important matters relating to internal controls.

Tokuyama Vision and CSR
In May 2016, Tokuyama adopted a corporate visionof “Creating value that benefits people’s lives throughchemistry.” This vision guides Tokuyama’s efforts tofulfill its social responsibilities.

In the vision, Tokuyama articulates an aspiration

to “Shift from a focus on quantity to quality.” The
Tokuyama Group recognizes that it must practiceCSR-oriented management if it is to shift to quali-

tative growth in addition to quantitative growth. In
March 2018, Tokuyama revised its basic philosophy

for CSR-oriented management to state that theGroup will “continuously work with society to build asustainable future by contributing to the resolution

Tokuyama is working on two fronts to realize its

tee operates under the CSR Promotion Council, andFirstly, it is conducting R&D to create products thatporate Social Responsibility Division. The Committee

mission of creating value that benefits people’s lives.
address social issues. Secondly, it is implementing
internal controls to anchor its CSR initiatives, andpracticing risk management and compliance in orderpromotes risk management and compliance, which
are central to internal controls.

also recognizes that practicing Responsible Care rep-

ment and Compliance Committee. The committees

porate framework in place for Responsible Care. This
framework ensures the operating and continuous

improvement of management systems for safety, theenvironment, and quality.

Each committee formulates a planand gains approval from the CSR
Promotion Council

Tokuyama operates committees focused on risk

management and compliance in seven critical andresents a major social responsibility, and it has a cor-

Product Safety and Quality Assurance Committee

is chaired by the director responsible for the Cor-

to meet social responsibilities across all businessprocesses. As a chemical manufacturer, Tokuyama

Safety Committee

The Risk Management and Compliance Commit-

specialized areas, separately from the Risk Manageoperate under the CSR Promotion Council, oversee-

ing the following areas: financial reporting, fair tradeand competition, international security trade, infor-

Each committee discusses
the implementation statusof the strategies andformulates the next plan

PDCA*
Cycle of CSROriented
Management

Committees verify the
implementation status of thestrategies at the end of the
fiscal year

mation security, environment, safety, and productsafety and quality assurance.

Departments that areunder the supervisionof each committee
proactively implement thestrategies in their work*T
 he plan-do-check-act (PDCA) cycle is a four-stage
approach for continually improving processes,
products or services, and for resolving problems.

of social issues.”

Voice ) ) )Tokuyama Group’s CSR Framework

Basic Philosophy of Tokuyama’s
CSR-Oriented Management

CSR

Resolving Social Issues
Internal Control
Risk Management
Compliance
Responsible CareFair Trade /Security Trade

Tokuyama approaches its CSR
activities in accordance with abasic philosophy of continuously
working with society to build asustainable future by contributing
to the resolution of social issues
and earning greater trust fromvarious stakeholders with the aimof improving corporate value.

Director, Managing Executive Officer
in charge of Corporate Social Responsibility“Creating value that benefits people’s lives

In the process of incor-

through chemistry” is the keystone to Tokuyama’s

porating the SDGs into our

century in business. Our approach of resolving

adopted an outside-in ap-

existence and has been our core heritage for asocial issues through corporate activities is precisely how we practice corporate social responsibility in management.

In order to remain worthy of the public’s

trust, Tokuyama gives utmost priority to disasterprevention and safety, while strengthening internal controls to enhance stakeholder confidence.

TOKUYAMA CSR REPORT 2019

management priorities, we

proach to ensure we saw theperspective of society, adding to the inside-out

approach of our company’s perspective. We reviewed the Group’s CSR issues from both per-spectives and identified nine SDGs that are ofmaterial importance to the Group.

Moving forward, we will seek to achieve our

We also have a duty as a chemicals manufacturer

material goals as management priorities andand reduce environmental impact, and we do thisbusiness activities, as we work to build ato ensure the safety and quality of our products
by practicing Responsible Care.

8

Hideo Sugimura

Pursuing CSR Initiatives as an Integral
Part of Our Business Activities

pursue CSR initiatives as an integral part of oursustainable future.

TOKUYAMA CSR REPORT 20199Materiality Determination

Materiality

FY2020 Targets / Key Performance Indicators (KPIs)

Helping to fight global
warming
Environment

Tokuyama has been pursuing a variety of initiatives in an effort to create
value that benefits people’s lives. In order to pursue its CSR initiatives,
Tokuyama conducted a materiality assessment to identify its priority issues
encompassing the perspective of environmental, social, and governance(ESG) issues. Tokuyama has made it a management priority to strategicallytackle these material issues, and will disclose the details of its initiatives andthe outcomes so that they can be readily understood.

▶ p.12, 18

Conserving the environment

indicators (KPIs) were designated for each issue, andIn March 2019, Tokuyama conducted a materiality

the priority and quantification of the material issues

fied issues that are of particular material importanceto Tokuyama, so that it can concentrate its manage-

the issues were ranked in terms of importance. Afterwas reviewed based on third party feedback, the CSR
Promotion Council made the decision to designatenine material issues and four CSR issues.

Starting in fiscal 2019, Tokuyama will implement

ment resources on resolving these issues.

PDCA management by verifying the action taken on

outlined in the ISO 26000 standards and Global Re-

making necessary improvements. The material issues

The assessment used the important social issues

The stakeholder issues, issues from the medium-term

management plan, and CSR goals were then reviewed
to extract the CSR issues. The importance of theissues was rated from both a stakeholder and corporate perspective, and assessed for materiality as per

the GRI Standard. Through this process, 13 issues ofPreventing accidents andpreparing for disasters

Reduce CO₂ emissions from energy consumption
15% reduction in BAU CO₂ emissions by FY2030,
compared with FY2013 levels

Disclose non-consolidated Scope 3 emissions
and c-LCA* qualitative assessments

Expand Scope 3 emissions and c-LCA disclosure
data

Disclose GHG emissions including for Group
manufacturing subsidiaries outside Japan
Waste effective utilization rate

Maintain at 92%

Zero emissions to landfills

Maintain 99.9% reuse/recycling rate

Promote recycling and maintain zero landfill
waste

will be reviewed by assessing the progress of theinitiatives as of fiscal 2020, at which time the orderof priority and scope of impact (boundaries) will be

reviewed. Additionally, Tokuyama will engage stakeholders and external authorities in dialogue to verify
the suitability of the material issues.

▶ p.26Developing products andtechnologies that addresssocial issues

Comply with legal requirements and otherregulations, achieve zero environmental
accidents

Zero accidents

Comply with legal requirements and otherregulations, achieve zero environmental accidents

Accidents and disasters (requiring workabsence/no absence)

Zero accidents and disasters

Maintain zero accidents and disasters

Expand process safety training and drills

Improve process safety management level

Expand risk assessments, change
management, and hazard prediction(kiken yochi ) activities

Foster and improve the safety culture

Provide amenable working conditions
Develop products and technologies that help
to resolve social issues, focusing on the SDGs

Assess safety through product assessments

Managing chemical
substances

Engaging with local
communities

Provide amenable working conditions
 xpand the development of products andEtechnologies that help to resolve social issues,
focusing on the SDGs

Expand product lines relating
to IoT and heat dissipation,and create new businesses for
related materials
Expand and globalize productlines related to healthcare, andcreate new materials▶ p.28▶ p.21material importance were selected. Key performance

Maintain low emissions of substances withenvironmental impact

Utilize IoT and transfer skills

material issues and achievement of KPIs, as well asTechnical Quality

porting Initiative (GRI) guidelines as a starting point.

Safety and Accident Prevention
Occupational Health and Safety

Identifying Materiality

ment priorities. This assessment extracted and identi-

Aspirations (FY2025)

3% reduction (compared with
FY2005 levels)

Maintain low emissions of environmental
impact substances▶ p.16, 22

assessment to align its CSR initiatives and manage-

Manage energy conservation and per-unit
energy consumption

Zero infractions ofchemical-related regulations

Continue to strengthen chemicals management

Harmoniously co-exist and cooperate with
communities

Community dialogue

Harmoniously co-exist and cooperate with
communities

Contribute to communities

Hire in the community

Follow regulatory trends in and outside ofJapan and practice complianceContinue to manage risk using Group-wideexport control system

Actively engage in community
eventsContribute to communities

Social initiatives
Contribute to communities
through the business▶ p.39Process for Identifying Material Issues

Develop CSR procurement guidelines

Very
Important

1

STEP

2

STEP

3

STEP

4

Extract and organize the issues
Extract the social issues from the social
requirements and Tokuyama s businessactivities

Order of priority

Decide the order of priority based on theimportance to stakeholders and Tokuyama

Review by experts

Review the order of priority and quantiﬁcation
based on feedback from outside experts

Commitment from management

Importance to Society and Stakeholders

STEP

Engaging with local
communitiesTOKUYAMA CSR REPORT 2019

Developing products andtechnologies that addresssocial issues

Promoting CSR procurement
Increasing customer
satisfaction

Emphasizing diversity

Promoting mental andphysical healthStrengthening corporate
governance

Developing human resources

Developing humanresources

Emphasizing diversity▶ p.13, 32

Implementing risk
management and practicing
compliance

Importance to Tokuyama

Promoting CSR
procurement▶ p.32

Managing chemical
substances

CSR Promotion Council discusses thesuitability of the material issues and approves
them
Important

10

Preventing accidents andpreparing for disasters

Helping to fight global
warming

Society

Conserving the environment

Adopt CSR procurement
guidelines that take into accountnot only the environment but
also human rights, compliance,and other key issues

Survey and manage supply chains based on CSR
procurement guidelines

Develop the next generation of managers

Develop the next generation of managers

Put the right people in the right positions according to their career plan and job
skills, and increase the job rotations

Put the right people in the right positions
according to their career plan and job skills, andincrease the job rotations

Establish human resources development practice that links goals and feedback

Develop global human resources

Promote diversity and inclusion

KPIs for women in the workplace

Promote diversity and inclusion

Employ persons with disabilities

Employment rate: 2.2%

Employ persons with disabilities

Promote work-life balance

Gender-freeparenting/nursing care leaves

Promote work-life balance

Respect for human rights

Respect for human rights

CSR issues

Very
Important

Increasing customer
satisfaction

Promoting mental andphysical healthStrengthening corporate
governance

Implementing risk management
and practicing compliance* Consequential life-cycle assessment (c-LCA) is a method for assessing emissions throughout the life cycle, by adding up CO₂ emissions at each stage, from resource
extraction, manufacturing, distribution, and use, to disposal.

TOKUYAMA CSR REPORT 201911

Close-up 1

Close-up 2

Tackling the Challenge of Significantly Reducing CO2 Emissions

Tokuyama’s Workforce Worldwide

The Tokuyama Group treats CO2 emissions as a management risk. Pursuing a low-emission business model,
the Group has now set CO2 emissions reduction targets to achieve by fiscal 2030 and is working hard toachieve them.

With global operations in eight countries and regions, Tokuyama employs diverse human resources reflecting
differences in race, gender, nationality, and religion. Tokuyama is harnessing this diversity and the individuality
and skills of each employee to increase corporate value.

Material issue: Helping to fight global warming

The Tokuyama Group treats global warming as a priority
issue, managing its per-unit energy consumption and perunit GHG emissions to reduce CO2 emissions. As of fiscal
2018, the Group had achieved a reduction of approximately 9% from fiscal 2005 levels. In fiscal 2018, the Groupgenerated 4.4 million metric tons of CO2 emissions fromenergy consumption.

Targeting a 15% Reduction ofBusiness-as-Usual CO2 Emissions
Under the Paris Agreement of the Conference of theParties (COP) in 2015, Japan committed to a target ofachieving a 26.0% reduction of CO2 emissions by fiscal
2030, from fiscal 2013 levels. Of this, Japanese industry
is expected to achieve a 6.5% reduction. In conducting
its materiality assessment, the Tokuyama Group identified
global warming as an issue of the highest priority. Whilecontinuing with its existing energy conservation initiatives,
the Group is now also working to reduce CO2 emissions
from energy consumption in accordance with the Paris
Agreement. Its new target is to achieve a 15% reductionof business-as-usual (BAU) CO2 emissions by fiscal 2030,
from fiscal 2013 levels.

Improving efficiency at
the Tokuyama Factory
Reducing CO2 emissions
by switching fuel sources

Raising the added
value of products

Expanding the portfolio ofenvironmental products

Pursuing a low-emission business model
Reduce BAU CO2 emissions
from energy consumption by 15% by fiscal 2030,
from fiscal 2013 levels

12

TOKUYAMA CSR REPORT 2019

Action Strategies for Achieving FY2030 Targets• Conduct multi-vector Group-wide initiatives to reduce CO2

emissions• W hile maintaining business composition, eliminate loss ofavailable energy• Actively study new technologies and business opportunities

that arise in CO2 emissions reduction initiatives• Identify the strengths of the Tokuyama Group’s products

relative to rising energy costs, and increase the added
value of products

Initiatives to Achieve CO2 Emissions
Reduction Target
The entire Tokuyama Group is striving to achieve theFY2030 emissions reduction target. The Tokuyama
Factory comprehensively implements energy conservation initiatives to eliminate loss of available energy, andis also looking into CO2 and heat recovery and utilization. R&D departments are studying the developmentof innovative technologies and business creation forenvironmental and energy applications, and developing
environmentally friendly products. Business departments are shifting the composition of their businesses
away from dependency on low-cost electricity to minimize CO2 emissions risk.

Reduction of BAU CO2 Emissions（1,000 metric tons/year）

CO₂ emissions

5,000

BAU emissions

Reduction of BAU emissions

CO₂ emissions

Group-Wide Initiatives for Energy
Conservation

Material issue: Emphasizing diversity

4,500

4,000

0

05

13

14

15

16

17

18 （FY）

Appreciating Efforts to Build a Positive
Workplace Environment
As China moves to tighten its laws and regulations,the cost of safety and environmental measures is increasing. Each of our employees must try to gain new
knowledge and enhance their skills.
Having worked for Japanese companies ever since
graduating from university, I am familiar with Japaneseculture and customs. The Japanese staff of Tokuyama
Chemicals (Zhejiang) have made an effort to create an
atmosphere that is easy to work in, which has established very positive relations. I look forward to continuing to work with everyone to secure further growth forthe company.

Ma JunPlant Manager
Tokuyama Chemicals(Zhejiang) Co., Ltd.
Joined the company in 2006
Plant Manager overseeing manufacturing
and environmental safety

Open Culture Breeding Success
There are many differences in culture and working
methods between Japan and France; for instance,
the Japanese think prudently before making a choice.
This is probably why Japanese products have a reputation for reliability, which is a result of long reflection.
Our managers have always placed great trust in our
working methods and have never sought to impose
the Japanese method. In working together, it is under
our own initiative that we apply the foundations of the“KAIZEN” with the 5S method and the “Kikenyochi,”aware of the interest of these precepts. There are especially things that unite us between Japanese andFrench and it is first of all an attraction and know-how
for beautiful and good things. Each person is different intheir functioning, qualities, skills and emotion, and has adifferent cultural, religious and educational background.
This is what creates diversity and there are always
benefits to take from others. Even if it is human nature
to be resistant to change, we must be open to diversity in order to exchange our experiences and thus to
improve by taking the best of everyone. I think that ourFranco-Japanese collaboration in the management ofTokuyama Nouvelle Calédonie is a good example ofsuccess thanks to our diversity.

Loïc LE PEN
Sales Manager
Tokuyama Nouvelle Calédonie S.A.
Joined the company in 2001
Responsible for a wide range of tasks
from cement marketing, advertising,and sales through to delivery andfollow-up

Promoting Respect for Religious Diversity
In Singapore, the normal culture is work and familybalance, but I realized that Japanese culture prioritizes work and to always work hard. The thing that
impressed me is the challenge of solving equipment
breakdown, figuring out how to solve a problem that
we face unexpectedly and make the work of other departments easier.
In Singapore, I suggest that Tokuyama be more attentive to differences in religious beliefs and practices,
including those of the Muslim workers.

Jamali Bin Othman
Assistant Manager
Tokuyama Electronic Chemicals
Pte. Ltd.
Joined the company in 2000
Responsible for facilities equipment,
maintenance work,
and its documentation

TOKUYAMA CSR REPORT 201913

Tokuyama’s Responsible Care

Basic Philosophy of Responsible Care●

Basic Policy

Tokuyama has put in place a corporate framework for promoting
Responsible Care,* and is incorporating this initiative in each of its management systems as it strives to continuously improve its environmental, safety,
and quality systems.

As a member of the Japan Responsible Care Committee, Tokuyama
Corporation carries out Responsible Care activities that protect theenvironment and preserve safety and health throughout the entire
chemical substance life cycle, from development and manufacturing
to distribution, use, final consumption and disposal.
Our social mission is to aggressively tackle and systematically solve environmental issues in particular, which, in turn, will leadto sustainable corporate and social development. Based on thisrecognition, we promote Environmental Management, a management policy that emphasizes the environment, in all of our business activities, including development, manufacturing and sales.

Practicing Responsible Care

Action Objectives

Responsible Care Initiatives
CSR 推進会議

CSR Promotion Council

Tokuyama actively practices Responsible Care* as oneof the original members of the Japan Responsible Care
審査機関
Committee
established in 1995 under審議決定機関
the Japan Chemical Industry
Association (JCIA).
製品審査部会
環境対策委員会（表示等審査部会）

1. Promote environmental protection

Responsible Care Promotion Structure• Implement an ISO 14001-based Environmental Management System and reduce environmental impact
2. Observe the laws and regulations

Framework for Promoting
安全・環境審査部会 Care
Responsible
製品安全・品質委員会
保安対策委員会

Assessment Function

Decision-Making Function

Product Assessment
Subcommittee

Environmental Committee(Labeling Assessment Subcommittee)

Safety Committee

Safety and Environmental
Assessment Subcommittee

The CSR Promotion Council is chaired by the President
and Executive （支援機関）
Officer and oversees
the implementation
分析・解析センター
RC 推進グループ（事務局）
of Responsible Care. The Council operates an Envi環 境 測 定、作 業 環 境 測 定 法、社内およびグループ各社に対
ronmental Committee, Safety Committee, and Product
法規制物質や環境汚染などでして環境、安全、品質を含め
Safety and Quality Assuranceたレスポンシブル・ケア活動を
Committee, which discuss
課題となっている化学物質の極
andmake
decisionsin
theirrespective
areas of respon微量分析に取り組んでいる推進する
sibility. The Council also operates subcommittees thatserve as assessment bodies. Responsible Care practices
are improved by implementing plan-do-check-act (PDCA)
cycles focusing on environmental conservation, process
safety and disaster prevention, occupational health andsafety, and chemicals and product safety.

• Observe international rules, domestic laws and regulations and industrial standards• Thoroughly implement export management rules on materials under control
3. Promote energy conservation and curb global warming

環境負荷低減目標
Publicationof performance data and次年度の目標・計画への反映

social dialogue

中期環境計画
Responsible Care Community Dialogue
環境管理計画

Analytical Science Dept.
(Support organization)

Responsible CareManagement Dept. (Secretariat)

This laboratory carries out environmental
measurements, working environment
measurements and ultra-trace analysis ofsubstances under regulation and chemical
pollutants.

This department promotes RC activities
throughout the Group, covering the areasof the environment, safety and quality.

Category

manufacturers to implement measures that conserve the environment and securesafety and health in all processes from the development of chemical substances totheir manufacturing, distribution, use, final consumption, and disposal. Companies
publish their outcomes and engage in public dialogue.

Environmental
Conservation

安全・環境審査制度
Assessment and audit system

C

環境パフォーマンスTOKUYAMA CSR REPORT 2019

6. Ensure strict product safety standards• Offer environmentally friendly products that can be used with safety• Provide proper information on how to use products and what precautions to take
7. Deepen the relationship of trust with society• Publicly disclose information on the Company’s activities concerning
environmental protection, process safety and disaster prevention,
occupational health and safety, and chemical product safety• Actively engage in dialogue with the local communities

Environmental Conservation

Safety and Accident Prevention
Occupational Health and Safety

Formulate fiscal year plan andtargets for Responsible Careinitiatives⃝ Comply with legal requirements andother regulations⃝ Achieve zero environmental accidents⃝ Achieve targets for reducing environmental impact⃝ Achieve zero legal violations

Results⃝ Strictly complied with legal requirements

1 incident exceeding limits set by the local government⃝ No environmental accidents⃝ Reduced or maintained levels of emissions of substances of concern⃝ Reduced per-unit energy consumption⃝ Zero emissions to landfills Maintain 99.9% reuse/recycling rate
⃝ 2 recommendations for rectification measures⃝ Reduce rate of work absences

under Japan’s Industrial Safety and Health Act⃝ 2 accidents (fires)⃝ Employees: 3 injuries requiring work absence,
1 injury not requiring work absence⃝ Contractors: 1 injury requiring work absence,
1 injury not requiring work absence⃝ Improved safety management level⃝ Identified and reduced/eliminated risks⃝ Promoted risk and hazard management⃝ Promoted physical and mental health⃝ Ensure product safety⃝ Conducted inspections of products and labeling⃝ Ensure no accidents ordisasters occur

Chemical Product Safety

Degree of target achievement: Achieved (A) Not achieved (B)⃝ Upgraded safety data sheet (SDS) management⃝ Addressed regulations on chemicals in countries

outside Japan

Build Relations of Trust with
Local Communities and Society

Process Safety,
Disaster Prevention

Implement activities
through operationof management systems

Occupational
Health and Safety

External
and internal audits
活動の評価
レスポンシブル・ケア監査制度
Safety and environmental assessments
Product assessments
環境会計
HECK

14

P

Initiatives for next fiscal year plan

環境管理活動• Aim for zero accidents and disasters based on the principles ofself-responsibility and the self-management of safety• Achieve a comfortable working environment and protect people’ssafety and healthPriority tasks* Responsible Care is a voluntary management initiative undertaken by chemical

LAN

Chemicals andISO14001
Product Safety
環境マネジメントシステム

5. Promote process safety, disaster prevention and occupational
health and safety

Priority Tasks and Results of Responsible Care Activities in Fiscal 2018

CT

Preparation of CSR Report•P romote the material recycling and thermal recycling of resources• Work toward achieving a paperless office

Product Safety andQuality Assurance Committee

Fiscal year targets and planA

4. P
 romote resource recycling and work toward reduction and theproper management of waste materials• Achieve top-class unit energy consumption in the industry for each

RC 行動目標
Evaluation and improvement

product

D

Address priority issues

Promote Responsible Careat Group Companies⃝ Participate in community events⃝ Establish a good reputation in society⃝ E xpand

the scope of Responsible
Care activities⃝ Participated in community volunteer activities

Degree of target
achievement
B
A
A
A
A
B
B
B
B
A
A
A
A
A
A
A

⃝ Held dialogues with the community on Responsi-

AA⃝ Held factory toursA⃝ Conducted safety, environment, and quality audits⃝ Shared Responsible Care information via an online

AA⃝ Addressed regulations on chemicals in countriesA

ble Carenewsletter, etc.
outside JapanOTOKUYAMA CSR REPORT 201915

Tokuyama’s Environmental
Management

Company-Wide Environmental Management Policy
Medium-Term Basic Policy

Focus Items in Fiscal 2019
・Strictly comply with legal requirements, etc.

Tokuyama actively undertakes environmental preservation and strives to help build a

For Tokuyama, the pursuit of proactive initiatives to protect the earth’s
environment is an important part of its corporate social responsibilities.
Accordingly, the Company practices environmental management that takes
into account the natural environment in all business activities.

・Continue zero environmental accidents

sustainable society, based on its Basic Philosophy of Responsible Care and the following
2017

In December 2017,conserving the environment

Maintain or reduce emission levels of environmentallyhazardous substances• Thorough compliance with laws and regulations• Zero environmental accidents

Tokuyama received theDevelopment Bank ofMaterial issue: H elping to fight global warming;

・Reduce environmental impact

policies.

Promote zero waste emissions
・Combat climate change

Japan (DBJ) Environmentally Rated Loan,• Reduction of environmental impact• Combating climate change

rated as having “ad-vanced environmental• Continuous improvements to environmental management systems• Improved relationship of trust with stakeholders

initiatives.”

Promote energy-saving and conservation of electricity
Conduct actions for GHG medium-term reduction goals
・Expand communication with stakeholders and improve information disclosure

Degree of target achievement:

Results of Environmental Protection Initiatives by the Tokuyama Factory in Fiscal 2018

Performance in Fiscal 2018

determine and analyze the investment amounts and■Flow of Materials in Business Activities

activities, thereby providing a sound basis for making

Category

costs associated with its environmental conservation

Tokuyama works to accurately determine the input
and output of materials for production, and regularly■Environmental Costs

energy consumption, waste recycling and zero emis-

2018 included comprehensive drainage measuressions targets. Regarding other performance data,
Tokuyama has set a separate numerical managementtarget for each department to maintain the current
low-impact situation.

FY2018 Result

Rating

Soot

︲27%

–

COD

+7%

–

︲8%

–

Phosphorus

+10%

–

PRTR

PRTR

+16%

–

Energy Conservation

Energy consumption
on a per-unit basis

3% reduction of per-unit energy
consumption by fiscal 2020
compared to fiscal 2005

︲8.8%

A

Improved per-unit energy consumption

Recycling

Effective utilization rate

Maintain at 92%

93.1%

A

Maintain at 92%

Zero emissions

Zero emissions to landfills

Maintain 99.9%
reuse/recycling rate

99.9%

A

Maintain 99.9% reuse/recycling rate

Atmosphereenvironmental investments.

sets new targets aimed at reducing environmental

impact. In fiscal 2018, Tokuyama achieved its per-unit

Items

Major environmental investment projects in fiscal

Environmental Impact
Water Quality
Reduction

FY2018 Target

Maintain the current low impact
situation*

Nitrogen

FY2019 Target

Maintain the current low-impact situation*and establishment of waste storehouses.

■Economic Benefits of Environmental Management

In fiscal 2018, the economic benefits remained flat

Global Environment
Conservation

year on year, at approximately 1.4 billion yen.

Environmental Accounting

Achieved (A) Not achieved (B)Waste Reduction

Tokuyama has been carrying out environmental
accounting since fiscal 2000 in order to accurately* Regarding performance data, Tokuyama has set a separate numerical management target for each department to maintain the current low-impact situation. The table above does
not include specific numerical targets on atmosphere, water quality and PRTR for Tokuyama as a whole. Instead, the year-on-year difference from FY2017 results is shown.

Fiscal 2018 Environmental Preservation Costs
Flow of Materials in Business Activities

6,500

1,870

Production

Fuel

Waste (incinerated and landﬁll)

2,150(49,100,000 gigajoules)

Raw materials

6,670

INPUT

OUTPUTTOKUYAMA

11.4

24,50044,700

Coolant water and other types of eﬄuent

Products

6,400

TOKUYAMA CSR REPORT 2019

Substances withenvironmental impact

Process eﬄuent

Industrial water

16

23.3

Note: All amounts are for Tokuyama Corp. on a non-consolidated
basis in ﬁsical 2018
(Unit: 1,000 metric tons)

Costs in Business Areas

Carbon dioxide (CO2)

Waste and by-products

AmountInvested(million yen)Costs
(million yen)

Implementation of comprehensive
drainage measures, update of sootand smoke removal equipment, etc.

293

4,539

Global Environmen- Adoption of a fuel reduction
system, installation and upgrade oftal Conservationequipment for reducing CO2, etc.

155

356

Installation of waste storehouses,
Resource Recycling partial upgrade of incinerationequipment, PCB waste disposal
costs, etc.

266

1,244

0

2

12

266

4

0

0

68

0.3

103

731

6,578

Category

Major Activities

Pollution Control

Upstream and Downstream Costs
Management Activity
Costs

Installation and upgrade ofequipment for environmental
monitoring and analysis

Research and Development Costs
Social Activity Costs

Greenification and beautification
measures
Production of CSR report

Costs for Environmental
DamageImposition, management of a former
mining site

Total

Economic Benefits in Fiscal 2018Material Benefit(1,000 metric tons)

Economic Benefit(million yen)

Gains on Reduction in Energy Consumption–

191

Gains on Sale of Valuable Waste

91

270

Gains on Reduction in Waste Disposal Costs
through Waste Recycling

212

555

Gains on Reduction in Raw Material and FuelCosts through Waste Recycling

213

385

–

1,401

CategoryTotal

 earn about Tokuyama’s business activities and their impact onLbiodiversity at:https://www.tokuyama.co.jp/eng/csr/

TOKUYAMA CSR REPORT 201917

Helping to Fight Global Warming

3％

Category 2

Calculating and Managing Supply
Chain Emissions

Global warming is a critical issue and Tokuyama is helping to mitigate
it by conserving energy used in its business activities, developing andmanufacturing products that help to reduce GHG emissions and managing
Scope 3 emissions.

36％ CO₂Emissions

1.47

million metric tons

Companies today are increasingly required to trackations but also at each stage of their supply chainsIn fiscal 2018, the energy consumption rate de-manufacture its core products such as caustic soda,
cement, and polycrystalline silicon. It also emits

carbon dioxide (CO₂), one of the greenhouse gases,

creased by 8.8% compared with fiscal 2005 levels,

Guidelines: Basic Guidelines on Accounting for Greenhousefrom the distribution, use, and disposal of products

ber 2017, Ministry of the Environment and Ministry of Economy,

sumption, and it has a target of reducing its per-unit

energy consumption by 3.0% by fiscal 2020, from2005 levels. The factory has also launched a projectto improve per-unit energy consumption, in order toreduce CO₂ emissions even further.

sold by Tokuyama.

Based on the Scope 3 standard of the GHG Pro-

Gas Emissions Throughout the Supply Chain (Ver. 2.3), DecemTrade and Industry, Government of Japan
CO₂ Emissions Unit Database: Emissions Unit Value Database for Calculating Greenhouse Gas Emissions, etc., by Orga-

Database of CO2 Equivalent Emission Factors (Ver. 2.01)

approximately 90% of which belonged to category one

Note: Emissions were calculated for the top 10 raw materials bypurchase amount.

60,00050,000categories were calculated at 1.47 million metric tons,

Tokuyama Corporation

3,500
53,70040,000

2,800

2,700

44,40045,3002,500
47,300

2,700

2,600

49,60049,100

Other indirect GHG emissions

10,000
15

16

Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), and the Scope 3 Standard was issued in November 2011 as a standard for
calculating CO2 emissions throughout supply chains.

17

18

(FY)

Company

Downstream

Scope1

Scope320,00014

Carbon Footprint System Pilot Project: Provisional Common

Supply Chain and Scope 3 Categories

Upstream05

nizations Throughout the Supply Chain (Ver. 2.6), March 2019;* The Greenhouse Gas Protocol (GHG Protocol) was jointly formulated by the WorldGroup companies

30,0000

for category one through seven and category nine(53%) and category four (36%) emissions.

(Thousands of gigajoules/year)

more than 99% of the Company’s total energy con-

Scope3

6.46 million metric tons
Direct GHG emissions

Category 1

Downstream Transportation
and Distribution

Category 2

Capital Goods

Unit Energy Consumption Index*

CO₂ Emissions

Per-unit energy consumption(1,000 metric tons/year)

100

100

9,000

97.0
(Target)

95

94.6

90

05

15

16

17

■ Attributable to fuel■ Attributable to raw materials■ Attributable to waste ■ Group companies

250
210

6,000
4,820

190
250

190
250

200
230

200
230

2,110

93.6
90.5

Category 3

1,630

1,590

1,720

4,040

4,120

4,300

1,820
4,510

180
280
1,800
4,440

3,000

91.2

Fuel- and Energy-Related
Activities Not Includedin Scope 1 or Scope 2

Category 10

Scope2

Processing of Sold
Products: Not calculated

70,000 metric tons

Energy indirect GHG emissions

Products: Not calculated

Upstream Transportation
and Distribution

Waste Generated in
Operations
Category 8

Category 13

Scope3

Downstream Leased
Assets: Not applicable
Category 6

Business Travel

Upstream Leased Assets
Category 7

1820（FY）

0

05

14

15

16

17

18

(FY)

Category 11

Products: Not calculated
Category 12

Category 4

Category 5

Category 4

Upstream Transportation
and Distribution
Category 9

Purchased Goods
and Services（％）

Note: Figures do not add precisely
to total due to rounding.

emissions under Scope 3. The emissions from these

The Company is working to reduce CO₂ emis-

equipment. The Tokuyama Factory accounts for

Other

operating rates at some plants.

energy conservation measures in addition to lower

Energy Consumptionsures, including upgrading to more energy-efficient

Category 4

tocol,* Tokuyama is calculating supply chain emissions

ation of limestone, which is used as a raw material forsions by implementing energy conservation mea-

53％

due to utilization of non-coal energy sources andprimarily in its burning of fossil fuels and decarboxylcement production.

Category 3

from the manufacturing and transport of raw materials and products, through downstream emissions

Tokuyama consumes a vast amount of energy to2％

in order to reduce emissions throughout the supply
chain. These efforts encompass upstream emissions

Promoting Energy Conservation

7％

and manage emissions not only at their own oper-

Material issue: Helping to fight global warming

Category 1

Employee Commuting

Category 14

Franchises:
Not applicable
Category 15

Investments:
Not applicable* The unit energy consumption index is calculated using a method recommended by theJapan Chemical Industry Association (JCIA).

18

TOKUYAMA CSR REPORT 2019

TOKUYAMA CSR REPORT 201919

Reducing Environmental Impact
with Life-Cycle Assessment
Tokuyama conducts life-cycle assessments (LCAs)

and reflects the insights gained in its product devel-

opment and manufacturing to reduce CO₂ emissions
and other environmental impacts.

■Shanon Window High-Performance PVC
Windows

Glass Cross-Section Diagram

University and Taiheiyo Cement Corporation on theenvironmental impacts of a bridge structure whenconstructed with different materials, using a newwaste index. After calculating the contribution to andimpact on the environment, the overall assessment

revealed that common Portland cement provided alarger net contribution to the environment than did

Lowemissivity
glass

Argon gas or
krypton gas

Tokuyama continues to strengthen its chemical management by assessing
each process for the hazard level and toxicity of chemical substances in
products, ensuring compliance with the laws and regulations in and outsideof Japan, and conducting risk assessments.

other cements. The joint research was published un-

Material issue: Managing chemical substances

der the title “Life Cycle Assessment of Cement in Various Environmental Aspects” and received an award
from the 15th LCA Japan Forum Commendation.

Tokuyama will continue to actively develop and

39mm

Strengthening Chemical
Management

manufacture products that contribute to the envi-■Product Assessments■Labelling Assessments

throughout the life cycle of its products, from manu-

operations, from the initial research and development

deficiencies or improper wording in instructions orronment, while striving to reduce GHG emissions
facturing to use and disposal.

Tokuyama confirms product safety at each stage ofstage through to market release. The assessments
confirm compliance with legal requirements and eval-uate the level of various risks, including the safety
Warm edge
spacersof chemical substances used in the product, their

Life Cycle Assessment of Cement in
Various Environmental Aspects

potential impact on the environment, and their effect
Waste processing(US $)
4,000

High-performance polyvinyl chloride (PVC) windows

outperform traditional aluminum windows for airtight-

ness and thermal insulating performance, enabling
significant reductions in CO₂ emissions by reducing
electricity consumption from A/C units. It has been

calculated that 2.18 million metric tons of CO₂ emissions* could be saved every year if all existing aluminum double-paned windows in Japanese single-unit

dwellings were to be replaced with Shanon Window
triple-paned vinyl windows.

* Calculated by Excel Shanon Corporation using the housing model from the

Design Guideline for Low Energy Houses with Validated Effectiveness 6.1.3 (issued
by the Building Research Institute, Japan) and AE-Sim/Heat thermal environment
simulation software (developed by Architecture Environment Solutions K.K.).

Overall assessment
RC:	Steel bar-reinforced
concrete construction

2,000

PC:	Portland cement
construction

1,000

FB:	Portland fly-ash cement
construction (15.5% fly
ash content)

0

RC
（PC）

RC
（FB）

RC
（BB）

S

First Assessment
Designate
R&D Theme

Second Assessment

Conduct
R&D

of difficult-to-recycle waste and byproducts such as

excavated soil from construction projects, ash fromincinerating urban waste, and sewer sludge.

Environmental impact assessments of the cementbusiness have typically been skewed toward global

warming impacts, without properly taking into accountthe environmental contribution of co-processing.
Tokuyama conducted joint research with Hiroshima

20

TOKUYAMA CSR REPORT 2019sheets (SDS).** A safety data sheet is a document for recording information related to the risks

and toxicity of chemical substances. It is prepared to facilitate the safe handlingof such substances, and includes the names of the substances, safety measures,and procedures for responding to emergencies.

PurposeS:

First
Assessment

Employee
Safety○SecondAssessment

Operator Safety

○

Third
Assessment

Product Safety○

Integrated evaluations are a method for comprehensively assessing
various environmental impacts and converting them to economic value asa common indicator.
Life cycle assessments (LCAs) are a method for quantifying environmental
impacts throughout the life cycle of products and services (from resource
extraction through raw materials production, product manufacturing,
distribution/consumption, and disposal/recycling) or at specific stages ofthe life cycle.

Award from 15th LCA Japan Forum Commendation

Launch
Product

Toxicity

Risk*

revised in accordance with the global trend toward

stricter regulation of chemicals and higher fines
for non-compliance. Tokuyama operates a chemical

Assessment Items

Product
Assessments

Steel frame construction

Chemical-related regulations are being frequently

Third Assessment

ProvideSamples

Regulatory
Requirements

export control scheme encompassing Group com-panies, to stay current on the chemical-related regulations in each country, and to avoid oversights and○○errors when exporting chemicals.

○*Risk=Toxicity × Exposure

Chemical Export Control Scheme at
Tokuyama

Although cement manufacturing generates signifimental conservation by co-processing large volumes

such as catalogs, instruction sheets, and safety data

■Chemical Export Control

Overview of Product Assessment System

BB:	Portland blast-furnace
slag cement (42.5% blast
furnace slag content)■Life-Cycle Assessment of Portland Cement

cant CO₂ emissions, it also contributes to environ-

warnings contained in labelling and documentation

Warming

3,000-1,000on human health.

Labelling assessments are conducted to eliminate

Regulatory compliancechecking tools(set of three tools)
・Regulatory database
・Regulatory complianceflowchart
・Educational materials

Product Safety andQuality Assurance Committee

Responsible CareManagement Department

Exporting Departments

Regulatory compliancechecking (supplementary)

Regulatory complianceself-check

Verification of legal
requirements

Business decision

Consultation and assistance

Draft compliance plan

Chemical export manager

Implement

Chemical Export
Manager Council

Importer

Person in charge at local importer

Meet legal requirements

ReportTOKUYAMA CSR REPORT 201921

Reducing Substances withEnvironmental Impact and Waste
Tokuyama is continually working to reduce its emissions of air and waterpollutants and implementing environmental conservation initiatives such aswaste recycling.
Material issue: Conserving the environment

Emissions of SOx, NOx, and SootSOx emissions(Metric tons)

15,000the local government, as well as the Company’s own■Amounts of Atmospheric Emissions

employs activated sludge treatment facilities for

In order to reduce atmospheric pollution from sul-

fur oxides (SOx), nitrogen oxides (NOx), and soot,Tokuyama equips boilers, cement kilns, and otherpollutant-generating facilities with flue gas desulfur-

izers, denitration equipment, low-NOx burners, andhigh-performance dust collectors. In fiscal 2018,
SOx and NOx emissions remained the same as theprevious year, and soot emissions decreased due tofacilities and operational management improvements.
■Emissions of Pollutant Release and Transfer
Register (PRTR*) Substances

12,000lations for overall water quality. In fiscal 2018, COD

and phosphorus emissions remained flat year on
year, while nitrogen emissions slightly decreased.

* Chemical oxygen demand is an indicator used to measure water quality, andharmful chemical substances and the amounts of these substances discharged
in the environment or transported from production sites as part of waste matter.

■Amounts of Hazardous Air Pollutant Emissions

Tokuyama generates chloroethylene and three othersubstances that are subject to voluntary controls under Japan’s Air Pollution Control Act. The Company

has formulated a voluntary action plan and is working
to reduce emissions of these substances.

■Amounts of Industrial Effluent and Wastewater

The Tokuyama Factory follows a stringent system

0

TOKUYAMA CSR REPORT 2019

24.1

24.2

24.2

24.0

14

15

16

17

24.5

20

135

138

550

680

14

15

168

138

160

122

10

80

750

780

800

16

17

18 (FY)00

18 (FY)

50
40

37

37

34
30

27

34

(Metric tons)

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

COD Emissions

112

126

116

121

129

Nitrogen

89

92

145

173

159

Phosphorus

2.6

2.2

2.1

2.1

2.3

■ Tokuyama Corporation ■ Group companies(Metric tons)

36

Reducing Waste and Managing
Waste Recycling

Water Pollutant Emissions

Emissions of PRTR Substances

34

30

25

Landfilled and Recycled Waste

emissions” rate remained high in fiscal 2018, due to(Metric tons)

hensive recycling efforts.

50,000

0

16

15

14

■Waste Management

17

18

(FY)

Tokuyama generated a total of 339,000 metric tonsof waste in fiscal 2018. It actively worked to recycle

this waste both in and outside the Company, mainly
by re-using waste matter as raw materials and fuelfor cement at the Tokuyama Factory. Through its
diligent efforts to recycle waste as raw material for

cement, Tokuyama achieved an effective utilization

rate of 93.1%. The Company also made progress withreusing waste and reducing the amount generated,

and achieved its landfill waste “zero emissions” targetof 99.9% for the sixth consecutive year.

Emissions of Hazardous Air Pollutants

99.9

99.9

99.9

93.9

94.3

94.2

99.9

93.8

76.9

30,000

99.9

93.1
80

60

36,26020,000(Metric tons)

30
（トン）

■ Dichloromethane (methylene chloride) ■ Chloroform■ 1,2-Dichloroethane ■ Chloroethylene (vinyl chloride)

237

250

22

150

10100

0

0

14

11

2
2

98

1

40 41

15 12

6

2

35 39

16
13

2

6

2

36

37 40
2

14 17

15

2 27

90

320

400

380

390

400

14

15

16

17

18 (FY)

Landﬁll amount (metric tons)

Eﬀective utilization rate

20
0

“Zero emissions” rate

7

8

5

5

14

19

18
15

50

10,00008540■単体 ■グループ会社

200
20

（％）

100

82.4

40,000wastewater using treatment equipment in order to

22

320

10,100240

3,000

for monitoring industrial effluent and purifying
comply with regulatory standards and limits set by

30

Eﬀective utilization rate / “zero emissions” rate

* The PRTR system collects and publishes data on the sources of designated

9,470(Millions of metric tons)

Landﬁll amountdue to reduced production at some companies.

10,1009,000

refers to the am‑ount of oxygen required to oxidize organic compounds in water.

efforts to reduce the volume of waste and compre-

creases. Emissions by Group subsidiaries decreased(Metric tons)

and meeting chemical oxygen demand (COD)* regu-

Pollutant Release and Transfer Register (PRTR) law.

increased slightly in fiscal 2018 due to production in-

Soot emissions

reducing the discharge of nitrogen and phosphorous

The effective utilization rate for waste and the “zeroNon-consolidated emissions of PRTR substances

8,900

8,850

standards, which are even stricter. The factory also

The substances handled in fiscal 2018 included 25

substances that must be registered under Japan’sNOx emissions

400

6,000

Reducing Water and Air Pollutants

Discharge of Industrial Effluent

10

1

30 34
1

Effective utilization rate (%) =Amount of waste recycled (in-house and externally)
×100
Total waste generated“Zero emissions” rate (%) =1-

Amount of landfilled waste (onsite and offsite)
Total waste generated

×100

18 (FY)16 （年度）TOKUYAMA CSR REPORT 201923

Local governments
Yamaguchi Eco-TechCorp.

The Nanyo Plant’s Cement Production Recycling System

Incinerated ash

Raw material crusher
Preheater
Raw material powder silo

Raw material dryer

Local governments

Outside corporations
Natural resources

Outside corporations
Waste plastics

Sewage sludge

SidingIn-house

Limestone
Outside corporations

Silica stone

In-house

Slag

Clinker silo

Morizukuri
Corp.

Coal ash
Outside corporations

Waste plastics

Preincineration

Outside corporations

Coal ashFinishing crusher

Organic sludge

SludgeRotary kiln

Waste liquid

Construction waste soil

In-house

In-house

Organic sludge

Natural resources

Incombustible lime

クーラー

Coal crusher

Cement silo

Coal

SludgeOutside corporations

Construction waste soil

Outside corporations
GypsumWaste carbon

In-house
GypsumMain raw materials

Main energy source

Alternative raw materials

Alternative energy sources

Cement shipment

Clinker shipment

Clinker: A compound mass made by firing raw materials at high temperatures. This is mixed with gypsum and crushed to make cement.

Flow of Industrial Waste Treatment

unit: 1,000 metric tons

(kg/ｔ-cement)

500

Total waste generated

339.2

Incinerated in-house
Recycled in-house

285.6

22.4

Landﬁlled onsite

0In-house

400
300

448

459

441

430

Tokuyama and its group company Tokuyama

425

Chiyoda Gypsum Co., Ltd. have developed a

227

200

recrystallization technology that enables 100% re-cycling of waste gypsum board. This achievement

100

0

91

14

15

16

17

(1,000 metric tons)

Waste disposed oﬀsite

31.2

Recycled externally

30.2

Incinerated externally

0.6

Landﬁlled oﬀsite

0.4

2,000
1,500

1,550

1,702
86

74

1,746
84

500

Award under the 46th environment awards of the
Gypsum board is used in the interior walls

and ceilings of buildings and generates waste
1,800
79

1,786 100
82

75
50
25

4

91

14
Material recycling

15

16

Product: Gypsum board

Ministry of the Environment.

1,000

0

TOKUYAMA CSR REPORT 2019

1,711

Separation andbreakdown

Use as raw material

earned the companies a Minister of Environment

18 (FY)

Utilization of Waste Matter at Cement Plants(Material Recycling/Thermal Recycling)

Outsidethe Company

24

Technology for 100% Recycling of Waste Gypsum Board Cited for Minister of Environment Award

Shifts in Units of Waste Matter/
By-Products Used Per Metric Ton of Cement1718 (FY)0during construction, renovation, and demolishing.

Recycled gypsum

Waste Gypsum Board
Recycling

Waste gypsum board

Only around 10% of this waste gypsum board istypically processed into recycled content for new
gypsum boards, with the majority ending up in

landfills. The new technology achieves the world’s

first 100% board-to-board recycling of waste

Crystallization toincrease the sizeof gypsum crystals

Transport
Gypsum processing plantgypsum board.

Thermal recycling

TOKUYAMA CSR REPORT 201925

Accident Prevention andOccupational Health and Safety
Recognizing that safety is the basis for its business activities, Tokuyama
practices safety as the first step to maintaining good relations with thecommunities in which it operates. Based on this approach, the Company
carries out stringent accident prevention measures and occupational
health and safety initiatives in its efforts to create a positive and safe work
environment that is free of accidents.

the Tokyo Head Office as the disaster response
headquarters and the Tokuyama Factory as the crisis
response headquarters.

Helping Contractors Promote
Health and Safety
Tokuyama and its contractors carry out the following

initiatives to promote health and safety: (1) joint
safety meetings for safety education and information

sharing on situations on the production floor; (2)Material issue: P reventing accidents andpreparing for disasters

safety patrols to ensure safe construction work andto improve unsafe situations; (3) supervisory skills
training, and hazard simulation training to improve

Comprehensive Safety and
Accident-Prevention Measures
Tokuyama has adopted three principles for ensuring

worksites carry out basic safety activities, including

safety patrol, kiken yochi hazard prediction, and nearmiss activities.

safety: fulfill the obligations of a good corporate

Disaster Preparedness Drills

and ensure that everyone is aware of their respon-Tokuyama has carried out various training activities.

management system of the Tokuyama Factory, thecaused by an earthquake, emergency drills at individ-

citizen, give safety priority over all business activities,

sibilities and acts accordingly. Based on the safety
Company works to identify and eliminate hazards
by assessing risks in work, facilities and processes.
Tokuyama also strives to stop unsafe behavior by

conducting studies into behavioral characteristics.
As part of occupational health and safety activities,

These include disaster drills for pipe leaks and fires

ual company divisions, joint drills involving affiliatedcompanies and contractors, and workplace safetycompetitions. The Company has also conducted drills
for initiating its business continuity plan (BCP) in the

scenario of a Tokyo inland earthquake by designatingrisk handling techniques; and (4) checking and improving operating procedure documentation.

General disaster preparedness drill

Promoting Sound Physical and
Mental Health
To raise health awareness among employees,
Tokuyama encourages its employees to take part inExpenditures for Accident Prevention andOccupational Health and Safety

the Smart Life Program, where they set, manage, andFacilities aging,otherassess progress on their own monthly weight goals,

15（5％）

etc. Tokuyama is also working to reduce the rate of⿠⿠Implement safety initiatives involving all employees, under theleadership of upper management.
⿠⿠Comply with laws, regulations, and internal rules.
⿠⿠Foster and enhance a culture of safety, for the safety of people,
facilities, and the public.
⿠⿠Create comfortable workplaces to ensure the mental and physical health of the people who work there.

26

TOKUYAMA CSR REPORT 201991（31％）

Total amount in
FY2018seling based on medical checkups. As for mental

health, the Company is practicing early intervention,

292(Millions of yen)Occupational healthand safety measures

including carrying out diagnostic surveys of work-

187（64％）

related stress for all employees and offering internal

Fiscal 2019 Tokuyama Safety Management Objectives
and Key Action Items

Comparison of Accident Frequency Rates*1

Policy Objectives

Tokuyama operates a safety management policy and actively implements safety initiatives as a good corporate citizen.

Accident prevention
measureswork absences by offering health improvement coun-or third-party consultation services.

Fiscal 2019 Company-Wide Safety
Management Policy

Note: Figures do not add
precisely to total due
to rounding.

■ No compliance violations ■ No accidents or disasters■ Reduce the rate of work absences

Improve process safety management
Improve hazard awareness, expand and comprehensively implement change management, expand and comprehensively implement hazard prediction activities, utilize IoT and big data
Identify sources of risks and resolve
Conduct risk assessments for irregular operations, respond to risk
assessments for chemical substances
Make progress in risk management and hazard management
Prepare for response to a potential major earthquake
Promote facilities management
Enhance management of older facilities, expand efforts to identify
facilities risks
Promote physical and mental health

2.0

1.83

1.5

0.5

0.15

0.90

0.09

0.85

0.06
0.03

10

11

12

All industries in Japan
Tokuyama Corporation

13

14

15

16

17

18

(FY)

Chemical industry in Japan*1 As an indicator of the frequency of industrial accidents, the accident

frequency rate is calculated as the number of workers forced to miss work
due to an industrial accident per one million cumulative working hours.

0.17

0.18

0.12

1.0

0.0

2.144

Comparison of Accident
Severity Rates*2

0.00

0.09

0.04
0.000
10

0.11

0.04
0.015
11

0.12

0.12

0.10

0.10

0.000

0.000

12

13

All industries in Japan
Tokuyama Corporation

0.09

0.006
14

0.10
0.07

0.04
15

0.09

0.09

0.09

0.06

0.03
0.001
16

0.000
17

0.022
18

(FY)

Chemical industry in Japan*2 As an indicator of the magnitude of industrial accidents that have occurred,

the accident severity rate is calculated as the number of lost work days due
to industrial accidents per 1,000 cumulative working hours.

TOKUYAMA CSR REPORT 201927

Spotlight
Voice ) ) )Innovative Dental Materials andDevices for Health andLongevity

Extending the Healthy life spanby Contributing to Dental HealthPresident
Tokuyama Dental Corporation

Our business got its start 40 years ago in a singleof chemistry to create original

new businesses for Tokuyama. Using the powerover the world smile, we aim tolaboratory entrusted with the dream of developing

The Tokuyama Group provides productsthat help solve social issues. In the field ofdental materials and devices, Tokuyama Dental
Corporation, a group company, produces innovative products that contribute to prolonging ahealthy life span.

Makoto Sakamoto

Estelite Sigma Quick

Sofreliner Tough S

products that make people all

be a company that provides dental systems thatare truly appreciated by customers.

Moving forward, we will supply productsthat support the growth of preventive dentistry

to extend healthy life span, and address needs

for cosmetic dentistry and digitization in thedental field. Our dental materials and devices
are currently sold in about 70 countries andregions, and we have received two Top ProductMaterial issue: D eveloping products and technologies

that help solve social issues

Estelite Sigma Quick—Selected

Sofreliner Tough S—Selected

10 years in a row by The Dental

six years in a row by The Dental

Top Universal Composite for

Advisor Top Product Awards

Top Denture Reline Material for
Advisor Top Product Awards

Awards for consecutive years from a U.S. dental
advisory body. We will enhance our presence inthe U.S., Europe and around the world, thereby
contributing to dental health and helping people
live healthier, longer.

40 Years in the Dental Materials
and Devices Businessand cooperation with R&D in different fields such

Tokuyama entered the dental market in 1978 in ajoint venture established by Tokuyama Soda Co., Ltd.
and Wada Precision Dental Laboratories Co., Ltd. inorder to expand beyond the material industry andMeeting the Needs of Dentists with
Detailed Sales Activities

key technology of photo polymerization was devel-

Kashima Factory—Production
Technology Designed to Deliver
Original Products

oped and improved based on the catalyst technology
developed at Tokuyama.

The majority of Tokuyama Dental products are

R&D requires expensive analytical equipment

manufactured at the Kashima Factory in Ibaraki

through dealers. By providing feedback to the R&D

Prefecture. These include supra-nano spherical fillers,as the environment, energy and ICT has become aspringboard for new technologies. For example, thecreate new businesses. The new company focused

and advanced technology. Tokuyama Dental has a

can utilize inorganic chemical technology and moved

and talented employees of Tokuyama’s Analyticalon dental ceramics such as implant materials that
into dental product areas. The joint venture wasmerged into Tokuyama Dental in 2001 and, in Marchmajor advantage in having access to the equipment
Science Department.

Combining Diverse Technologies toCreate World Firsts
Tokuyama Dental’s Tsukuba Research Laboratory isdeveloping unique, world-leading products by com-bining technologies it has fostered, such as function-

cation and control technology, and biochemistry. In
research and development, the ability to utilize theGroup’s wide variety of technologies is a strength,

gloss retention and strength, sustaining the glossof the applied area while being resistant to external

advanced synthesis technology to manufacture

uniform sized spherical fillers that are comprised

Key Technologies in Tokuyama Dental
Functional powder technology
Functional molecular
design technology

・Spherical filler (sol-gel process)・Powder technology

・Adhesive monomers
・Adhesive polymers
・Irritation-free monomers

al powder technology, molecular design technology,
polymerization catalyst technology, surface modifi-

for treating dental cavities. This material offers bothcoloring and wear. The Kashima Factory employs

2018, Tokuyama celebrated its 40th anniversary inthe market for dental materials and devices.

a fundamental material used in resin composite (CR)

Surface modification andcontrol technology

Composite
technologies ・Surface treatment

Polymerization catalyst
technology
・Photo polymerization
catalysts
・Chemical polymerization
catalysts

・Self-organizing technology

Biochemistry technology
・Antibody puriﬁcation
・Immunoassay

Tokuyama Dental sells its products to dentists
department on the needs in dental clinical practicefrom dentist, dental technicians, and so on collectedby the sales staff, the company has been able todevelop products that meet the needs of its cus-

tomers. The sales department is also building up thecompany’s reputation in the dental care market by
establishing relationships with leading doctors andfollowing up with study groups.

Dental disease such as cavities and periodontalof microscopic particles with an average size of 0.2

disease can affect a person’s diet and social life,

In order to ensure patient safety, the factoryand oral health is essential to living life to the fullest.

micrometers.

conducts manufacturing and quality control basedon the ISO13485 quality management system. This

includes implementing raw material acceptance andproduct specification tests, assuring that products

and impact their overall health. Maintaining dental
Tokuyama Dental brings together the strengths of
its R&D, manufacturing, and sales departments toprovide innovative dental materials and devices.

are safe and secure. Since 1999, the Kashima
Factory has also employed ISO14001-certified
environmental management systems to reduce its

environmental impact, including waste reduction andenergy conservation.

・Solvents

28

TOKUYAMA CSR REPORT 2019

TOKUYAMA CSR REPORT 201929

Spotlight
BeforeVoice ) ) )A1

Dr. Peter Auster
and finished. Since teeth come in many shades,
dentists must stock various colors of composites tomatch surrounding tooth colors. Tokuyama Dental

OMUNICHROMA is groundbreaking

technology with the development of OMUNICHROMA,

to stock 30 composite shades thathas achieved a major advancement in composite

the world’s first dental restorative material thatmatches every tooth shade with a single composite

shade. Released in the U.S. in February 2019 and in

After

Dentist in Pomona,
New York―a win-win for all offices. No needexpire and take up space. So economical and it works great!

Tooth decay is normally removed by drilling, and thecavity is then filled with CR, which is in turn light-cured

World’s First Smart ChromaticTechnology

A Breakthrough Product Bornof Serendipity

In order to color match the unique shade of a pa-

The secret to Smart Chromatic Technology lies inmaintain an inventory of shades, and in the casedevelops according to the structure of an object.

of cosmetic dentistry, they must stock dozens.

Tokuyama Dental’s CR product realizes a chameleon(shade-matching) effect by employing proprietarysupra-nano spherical fillers, enabling a broad rangeof tooth colors to be matched with fewer shades.
OMUNICHROMA with Smart Chromatic Technology
takes this a step further by using a single composite
shade to match almost any tooth.

Improving Development by Encouraging Young
Researchers to Lead Research Themes

Kouichiro Hirata
General Manager
Tsukuba Research Laboratory
Tokuyama Dental Corporation

Voice ) ) )sales is our company’s strength and enables us

where they get feedback from dentists, and this,in turn, fosters their marketing skills.

Aging demographics and digitization are twothat help extend the healthy life span of elderly

researchers to devote roughly 10% of their time

to non-primary development themes without set
goals. This encourages spontaneous ideas and30

TOKUYAMA CSR REPORT 2019by the effects of structural color, leading them tostudy the mechanism as an adjunct to their primaryresearch. After overcoming a number of obstacles tocommercialization, OMUNICHROMA was born.

dental care. There is a need to develop products
persons, and a need to leverage digital technologies to develop products that lead to innovations
in dental techniques. We promise to continue
working to develop one-of-a-kind products that
customers find truly satisfying.

B2

B3

B4

C1

C2

C3

C4

D2

D3

D4

Light-curing and finishing

Proprietary Supra-Nano
Spherical Filler
The filler material used as CR’s main component is
crucial to the realization of OMUNICHROMA. Whileconventional fillers are made from rough, unevenly

ground particles, OMUNICHROMA’s supra-nanospherical fillers are manufactured using a sol-gel
method that produces microscopic, uniformly sized
spherical particles from molecules. CR made fromthis filler is already highly regarded for its superior
polishability, wear resistance, mechanical strength,and esthetic properties. Tokuyama Dental applied

this technology to structural color and advanced it tocreate a new color-adaptation technology, resulting

in OMUNICHROMA, a CR superior to other brands
using ground particle fillers.

Development of New Shade-Matching Technology
for Composite Resins

a CR for cosmetic restoration. During this devel-of our strong emphasis on patent filings.

ucts, the Tsukuba Research Laboratory allows

shades. Researchers realized the failure was caused

to display their abilities as theme leaders and gain

The environment empowers young researchers

issues that need to be addressed in the field of

To encourage the development of new prod-

new CR filler, when a prototype displayed undesired

My co-researcher and I began developing

to develop innovative, world-leading products. In

2018, Tokuyama Dental filed 45 patents, evidence

The breakthrough came during the development of aenables teams to incorporate new insights freely.

experience by pursuing development to the stage
Integration of development, manufacturing, andthe physical phenomenon of structural color, which

Voice ) ) )B1

Fill a cavity with OMUNICHROMA and once it is light-cured and finished, thefilled area becomes the color of the surrounding tooth. OMUNICHROMA is theworld’s first CR that matches the shade of the surrounding dentition. The redto-yellow color generated by the spherical fillers combines with the reflectedcolor of the patient’s surrounding dentition, creating the perfect match.

as a groundbreaking solution for dentists.

tient’s teeth, dentists using conventional CR must

A3 A3.5 A4

Benefits of OMUNICHROMA’s Smart Chromatic Technology

Europe in March, OMUNICHROMA has created a stir

One Shade to Match All Patients—A Groundbreaking Solution

A2

OMUNICHROMA in 2009 while working to develop

Hironobu Akizumi
Manager
Tsukuba Research Laboratory
Tokuyama Dental Corporation

opment process we discovered that the particle
size of the spherical filler gave color to the CR. We

studied this phenomenon as a development sub-removed. Both the color of the tooth and cavity

for the ability to take on various colors. Eventually,

demonstrated that our CR could match differ-

theme, thinking that there must be an application
we developed a CR that generates red-to-yellow
structural color and verified its broad shade-matching performance by filling artificial teeth of differ-ent colors. That was the moment that led to ourbreakthrough.

Dental restoration using CR is performed

on a cavity that is formed after tooth decay isshape can vary widely. Using artificial teeth, we
ent shades and cavity shapes. We then initiatedfull-scale R&D in late 2014 as a main development
theme. As in this case, many of our company’s break-through products have come from development subthemes, which are fun to work on, pressure-free, andsatisfy our curiosity. We will keep working to develop
products that are embraced by dentists and patients.

TOKUYAMA CSR REPORT 201931

Developing Talent and Promoting
Diversity

Tokuyama Corporation Action Plan to Promote Opportunities for Women

Duration: April 1, 2016–March 31, 2020

Target and Strategies

Performance (March 2016)

Performance (April 2019)2013–2015: 25%

2017–2019: 20%

4.7%

6.1%

1.1%

1.6%

Sales positions*²:
4 employees
All production divisions:
13 employees

Sales positions:
9 employees
All production divisions:
15 employees

Ensure that women account for no less than 20% of all persons with at least a university
undergraduate degree who are hired for career-track positions. (3-year moving average)■ Strengthen recruitment of women among university graduates

While pursuing the four values stated in the Tokuyama Vision, the Company
is working hard to develop talent and promoting diversity. Tokuyama wants
every employee to make the most of their unique gifts and abilities.

Ensure that women account by 2020 for no less than 6% of all assistant managers■ Encourage and support employees to move to management track positions

Ensure that women account by 2020 for no less than 2% of all managers.*¹■ Introduce a mentor system for NBL training and promote mid-career recruitment

Ensure that women by 2020 hold at least 10 sales positions and 20 positions in manufacturing departments.

Material issue: D eveloping human resources;

emphasizing diversity■ Improve hiring in line with assignment*1 Including positions equivalent to managerial positions*2 Sales positions include persons externally engaged in direct client services, such as technical sales, quality assurance, etc.

Tokuyama Human Resource
Development

develop prospective managerial talent from early in

Promoting Diversity

four goals in its action plan. The percentage of womenTokuyama’s human resource development systemtraining aims to equip future leaders with a detailed
understanding of the Company and business struc-Tokuyama is promoting diversity to ensure that all

target of 6%, as of April 2019. This was achieved bytures. It fosters inspiration and insight, and promotes

Company respects the diversity of its human re-their careers to lead the Company in the future. The

focuses on helping employees improve their abilities

and interpersonal skills as free-thinking individuals.
The goal is to develop high-quality human resources
capable of taking the initiative and exercising creativity.

the mindset and skills it takes to envision future busi-

nesses, make decisions and courageously executenew business models.

Personnel System Reform

to develop the human resources needed to drive

Tokuyama is reforming its personnel system to in-

Chinese business communication programs thatis to change the organizational culture by encourag-its global business activities. It provides English andinclude training in language and intercultural commu-

nication skills. Experts from outside of the Company
are also invited to provide lectures.

■Next-Generation Business Leader Training

Next-Generation Business Leader (NBL) training
started in fiscal 2018. The goal of the training is to

Tokuyama Human Resources Development Program
Entry-level
employees

Mid-career
employees

Senior-level
employees

New employee
training

Elective training

Level-based training (before and after promotions)Role-based training

・Cross-industrial
interaction
・Chief training
・Overseas posting training

32

Application-based
training

・English business program
・Chinese business program
Etc.

TOKUYAMA CSR REPORT 2019

crease the work satisfaction of employees. The aim

Selection-based
training

・Next-Generation
Business Leader
training

to improvement in corporate value.

Voice ) ) )while ensuring that all employees receive impartial

Putting More Women in Management
Roles Will Transform the Company

tion system. The personnel system for managers

Way back when I joined Tokuyama, women were

employees in fiscal 2018. The Company is currently

serving tea. So I decided to draw up my own job de-ing adoption of the Tokuyama Vision (see page 3),treatment under a thoroughly applied, fair evaluawas changed in fiscal 2017, and for senior contract
reviewing the system for other employees and is

working to develop a foundation on which diverse
human resources can be successful.

(Tokuyama Corporation only)

FY2017FY2018

Men

1,716

1,700

1,750

Women

172

169

170

Total

1,888

1,869

1,920

Men

17

18

48

Women

1

4

7

Total

18

22

55

Single year

92

34

26

Cumulative

192

233

216

Average years of service

20.8

21.1

21.2

Number of
new hires
Numberof rehired
individuals

scription, and asked my boss to assign the work to

me. One of the jobs I proposed for myself was thetransitioning women from non-management track positions to management track positions. The Company’s

first female manager was hired through mid-career
recruitment.

Tokuyama is also working to improve workplaceenvironments for people with disabilities, aiming forthe legally required employment rate of 2.2%.

Misae Aimoto
President
Shunan Swimming Club & ACS
1979: J oined Tokuyama (assigned to
Human Resources department)
2006: A ssigned to Budget
Management Department
2018: N amed President,
Shunan Swimming Club & ACS

introduction of a web conferencing system. Since

their responsibility would increase. However, being

norm at that time, many people in the company had

are in that position, you can make changes. Withbusiness trips and face-to-face meetings were the

FY2016
Number of
employees

limited to tasks such as preparing documents andnegative opinions about web conferencing. Today

Tokuyama Employees

・Leadership training
・Business coaching training
・Problem solving skills training

employee awareness, understanding that this leads

force, Tokuyama has taken various steps to achieve theManagers

Job interviews / self-reporting

sources and aims to improve productivity by raising

To promote advancement of women in the work-■Global Training

The Company carries out various types of training

employees can work with energy and succeed. The

in senior and management positions now exceeds the

however, it has become an indispensable tool for
in-house communication, allowing us to speak withpeople easily around the world.

W ith innovation critical today, we musta manager allows you to do more things. Once you
more variety in your duties, your work becomeseven more enjoyable. Developing women for man-agement is one of my roles, so I am providing support for women at Tokuyama.

The ratio of men to women in Tokuyama’s

bring together people of different genders withworkforce is nine to one, and almost all of the man-ideas. That is why women need to play active

children to work in the office. But once the children

diverse experiences in order to generate newroles in the company.

It is also critical that we increase the number ofwomen in management positions, but some womenare reluctant to take on these roles, fearing thatagers are men. It is difficult for women with young

are grown, they have more time to devote to work.

If we can support more women to keep working un-

til their children are older, Tokuyama will change andbecome a more interesting company.

TOKUYAMA CSR REPORT 201933

Voice ) ) )Promoting Work-Life Balance

Annual Paid Leave Usage and Non-scheduled Working Hours

Helping Men to Take
Advantage of WorkLife Balance Support
Programs

At Tokuyama, employees in workplaces eligible for
flextime can choose their workday schedules with nocore work-period requirement. The Company is also
striving to optimize working hours by tracking and

FY 2014Annual paid leave,
average days used

FY 2016

conditions to be managed.

Non-scheduled working
hours average (permonth)

Under a program to help employees balance

Work-life balance is an important initiative foring hours can be received from 10 weeks before

are already many working people with respon-

Diversity and Inclusion Management. While there

work and childcare responsibilities, shortened work-

sibilities such as child and family care, they willchildbirth until the child starts elementary school. El-

76.6%

73.6%

73.2%

75.6%

5.7 hours

6.3 hours

7.7 hours

8.3 hours

9.8 hours

Work-Life Balance Support Programs
Category

diversity expands. This is why the organizationalthat pregnancy is determined, until the child reaches

culture needs to encourage men also to use thesixth grade. Starting April 2019, the period during

work-life balance support programs. Increasing

which paid parental leave can be obtained was ex-

productivity in the workplace, promoting an un-tended to within one year after child birth. Childcare

derstanding of diverse work styles, and dispelling

leave can be obtained until the child reaches age two.

notions about gender-based roles are the keys to

The rate of women returning to work after prenatal/achieving better work-life balance for employees.

postnatal leave and childcare leave in fiscal 2018

remained at 100% from the previous year. In 2019,
male employees will be reminded of their eligibility to

ProgramFlextime system

become increasingly prevalent as workplace

igible employees can also use flextime from the timeChildbirthandchildcare

FY 2018

74.3%

Manager
Budget Management Department

log details of employees, enabling actual working

FY 201715.3 days 15.9 days 15.2 days 15.2 days 15.7 days

Annual paid leave,
average usage rate

Koji Ozawa

presenting aggregate data based on the computer

FY 2015

Usage of Childcare and Family Care Leave, Etc.
Number of employees taking
childcare leave
Return to work rate

*Only for men

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
9

10

13

11

12

88.9%

90.0%

84.6%

100.0%

100.0%

Number of employees taking
parental leave*

13

18

13

25

33

Family care leave-taker

2

1

1

2

2

1

1

1

0

1

43

52

55

54

50

Number of employees taking
family care time off
Number of Expanded
application of

Details
Employees eligible for flextime can freely select work schedule (no core work period)

Flextime eligibility

An employee raising a child in sixth grade or younger, but who is not eligible for flextime, can apply fortransfer to a workplace where flextime is available, making the employee eligible for flextime.

Expanded applicationof flextime

Employees who are pregnant or raising a child in sixth grade or younger can work shortened hours below the prescribed monthly work hours, and can work intermittently with interruptions and resumptionof work.

Examination leave

A pregnant employee can receive one day paid leave per month as part of leave taken to receive healthguidance or medical exams.

Prenatal andpostnatal leave

Paid leave can be taken for up to six weeks before childbirth (14 weeks for a multiple-child pregnancy),
and up to eight weeks after childbirth (law only requires unpaid leave).

Childcare time

A female employee raising a child younger than one year old can take 30 minutes of childcare time twice
a day (paid).

Shortened working hours

An employee expecting a child within 10 weeks or raising a preschool child can shorten the work day by
one to two hours per day.

Parental leave

An employee with a newborn can take three days of paid leave within 14 days of the birth, and five days
within one year of the birth, in principle.

take childcare leave.

work, internal information is shared with them on theup to two years (legal requirement: 93 days in total)

hiring) system has been established to allow employ-Childcare leave

An employee can take up to two years of leave after the birth of a child.

to be rehired. After the mandatory retirement age

Limits on overtime andlate-night work

An employee raising a preschooler can apply to limit after-hours and late-night work.

Exemption from
non-scheduled work

An employee raising a child younger than three can apply for exemption from non-scheduled work.

Reinstatement registration
systemAn employee who resigns for the reason of pregnancy, childbirth, or childcare can register for this rehiring program upon resignation.

Regular health exams

An employee can receive paid leave to receive regular medical checkups after taking prenatal/postnatal
leave, or childcare leave.

Child nursing leave

An employee raising a child in third grade or younger can take unpaid leave for up to five days a year per
child (half-day leaves are also permitted) for the purpose of caring for a child who is sick or injured, or
who requires vaccination or a health exam.

Flextime eligibility

An employee not eligible for flextime but who has a family member needing care can apply for transfer
to a workplace where flextime is permitted, and receive flextime.

Expanded application of
flextime

Upon application, an employee with a family member needing care can work shortened hours below theprescribed monthly work hours, and can work intermittently with interruptions and resumption of work.

Family care leave

Can be taken for up to two years for each care recipient.

Family care time off

Regardless of the number of family members in need of care, upon application, two unpaid days off aweek can be taken (half-day increments allowed). If two days a week are taken, one of those days can betaken from the employee’s yearly paid vacation days.

Reinstatement registration
systemAn employee who resigns in order to care for a family member can register for this program at the timeof resignation.

Limits on non-scheduled
work, overtime work,and late-night work

An employee with a family member needing care can refuse non-scheduled and after-hours work (latenight work limit is available to an employee with a family member requiring care, and who lives in ahousehold without someone else, 16 or older, to provide the needed care).

intranet. In addition, an employee reinstatement (re-Employees can also take family care leave for

ees who resigned for childcare or family care reasonsfor each family member requiring care. With familycare time off (unpaid), regardless of the number ofof 60, employees can choose to be rehired up to thecare recipients, it is possible to take off two days aage of 65 through a senior contract employee sys-

week (legal requirement: five days a year). To support

tem. The current number of senior contract employ-

those on childcare and family care leave and help

ees is about 170, approximately 7% of all employees.

them eventually make a smooth transition back to

Support Programs for Childbirth, Childcare and Family Care

Childbirth and Childcare Programs
Pregnancy
determined 10 weeks(after application) before birth

6 weeks
before birthBirth(due date)

Family Care Programs
8 weeks
after delivery

Age 1

Age 2

Age 3

Expanded application of flextime (no core work period)

Examination leave

Prenatal Postnatal
leave
leave

Childcare time

Shortened working hours
Parental leave

Starting
schoolGrade 4

Grade 7

Application

93 days

2 years

Expanded application of flextime (no core work period)

Family care

Family care leave
Family care time off
Limits on non-scheduled work, overtime work, and late-night work

Childcare leave
Limits on overtime hours and late-night work
Exemption from non-scheduled work

Legalrequirement
Program available to women
Program available to men

Child nursing leave

34

TOKUYAMA CSR REPORT 2019

Program available to both men
and women

Unique toTokuyama

Working from home

An employee who has a family member needing care, who is pregnant, or who has a preschool child canwork from home if there is an issue that cannot be solved using the shortened working hours or flextime
programs.

Examination leave, prenatal and postnatal leave, and childcare time are programs exclusively for women. For information on mental and physical healthpromotion, see page 27.

TOKUYAMA CSR REPORT 201935

Corporate GovernanceTokuyama Group’s Five
Conscience Clauses

strengthen its supervisory function.

■Promoting Information Security(1) C omply with laws, regulations andinternal rules

prised of four directors, including three outside

assets, such as client information, Tokuyama has(2) C onform to the Tokuyama Group
Code of Conduct

meetings and other important meetings to monitor

Our behavior shall:

Tokuyama sees internal control as the basis for CSR and works tostrengthen corporate governance in order to further increase theconfidence of stakeholders and enhance corporate value. In addition,
the Company is thoroughly implementing risk management andcompliance group-wide, as the core elements of internal control.

(3) J ustify the trust of customers andtrading partners

CSR issues: S trengthening corporate governance;

implementing risk management and compliance

The Audit and Supervisory Committee is com-

committee members. They attend Board of Directors
the business execution by executive officers.

Comprised of representative directors and out-

holders and is strengthening the supervisory func-

Compliancedirectors and executive officers and the selection of

Tokuyama understands “compliance” to have a broad

The Executive Committee, comprised of execu-

internal rules but also behaving sensibly in a mannerdiscussions on such matters as remuneration forcandidates for director and executive officer positions.

be executed, to assist the president in determining

makes decisions on important matters concerning

constructive dialogue with shareholders.

The Strategy Committee discusses important

independence and supervisory function of the Board.

the governance of the Company, and enhances theand clarifying the responsibilities for business execution disclosure, achieve transparency, and engage inby the Board of Directors.

matters such as the pros and cons of pursuing cer-

■Corporate Governance Structuretion, while endeavoring to practice suitable informa-month to discuss and finalize key strategies adopted

dent outside director candidates suitable for improving

tions and independence of the Board of Directors.

Tokuyama is also encouraging faster decision-making

Tokuyama’s Board of Directors deliberates andthe execution of the Company’s business while

supervising business operations. The Company has
appointed three outside directors to the Board totain businesses and the manner in which they should
the direction of business objectives.

The Helpline Committee was set up as a whis-tleblowing channel to enable internal reporting of legally questionable actions and behavior.

Tokuyama has established the Auditing Department

and the Responsible Care Management Department
and tasked them with responsibility for internal auditing.

Risk Management
Tokuyama manages risk through the Risk Management

Corporate Governance Structure

and Compliance Committee, which operates under

Shareholders’ Meeting
Appoint/dismiss

ReportAccounting Auditors

Board of Directors
Audit and Supervisory
Committee

Audit/
supervise

Human Resources Committee

AssistDecide/supervise

Audit

Collaborate

Whistle-blowing
SystemAudit

Helpline

Audit and Supervisory
Committee OfficeBusiness Operations

Executive Committee

Appoint/dismiss

President

Strategy Committee

Departments Responsible
for Internal Auditing

CSR Promotion Council
Risk Management and Compliance Committee

Auditing Dept.
RC Management Dept.
Internal audit

Seven Committees

that conforms with corporate ethics and meets social
expectations. To communicate and spread awarenessof compliance throughout the Group, the Company

has put together a handbook presenting the TokuyamaGroup Code of Conduct, the responsibilities of Senior

Management under the Tokuyama Group Code of
Conduct, and the Tokuyama Group’s Five Conscience
Clauses. It is distributed to all Group employees.
■Compliance Education & Training

To reduce compliance risk, Tokuyama provides
training on legal obligations for new directors and auditors and a variety of compliance training programsfor employees. In 2018, these training programs were
held on 40 occasions. Tokuyama also implements
e-learning programs for managers on compliance,

workplace harassment prevention, security export
control, and information security.
■Whistle-Blowing System

critical and specialized areas to ensure management

safe, anonymous reporting and consultation regard-

through the deliberation of key issues. The Company

has designated a unit responsible for regulations
concerning management of the risk of loss and conducts
activities based on the management regulations.

It also works to mitigate compliance risk by estab-

Helpline Committee

meaning, including not only compliance with laws andthe CSR Promotion Council. It also has expert committees

focused on risk management and compliance in seven

Appoint/dismiss

incidents in fiscal 2018.

side directors, the Human Resources Committee holds

tors were revised. This enables freer choice of indepen-

Tokuyama respects the rights and equality of stake-measures. There were no major information security(5) M aintain standards that can be
spoken of with pride in front offamily members and coworkers

In April 2019, the criteria for selecting outside direc-

In keeping with Japan’s Corporate Governance Code,formulated a security policy and implemented various(4) E arn the respect of society andgeneral consumers

tive officers selected by the president, meets twice a

Corporate Governance at
Tokuyama

In order to reinforce the security of information

An internal helpline has been established to enable

ing compliance violations involving the TokuyamaGroup (including potential violations) without fear ofunfavorable treatment. Reporting and consultation
can be carried out by post, email, or phone.

The helpline is operated with due consideration

lishing management systems for understanding import-

for the protection of whistleblowers. Employees can

execution and keeping track of trends in amendments

partment to the Company, and women are able toant laws and regulations that are relevant to businessto these laws and regulations. The Company also has
established a business continuity plan (BCP) and otheruse the helpline without disclosing their name or deconsult with a female attorney.

measures in order to ensure an appropriate response
for the type and severity of any crisis.

Instruct/support/request

Business Divisions, Back-Office Divisions, Research Laboratories, Factories and Group Companies

36

TOKUYAMA CSR REPORT 2019

TOKUYAMA CSR REPORT 201937

Communication with Stakeholders
Tokuyama Group Code of Conduct
All Tokuyama Group members commit to the following essential principles
to ensure the Group operates in a way that meets social expectations anddelivers sustained growth by earning the continued support of customers andthe trust of society.
(Established: May 12, 2009)

1. Compliance
We act with good corporate ethics and common sense, based on
the understanding that compliance with laws and corporate rules is
the most important requirement in all business activities.

2. Fair Business Activities•We aim to be moderate and reasonable in our business andpractice fair, free, and transparent competition.
•We maintain fair and reasonable relationships with political andgovernmental organizations.

3. Responsible Care•We develop, manufacture and supply products and services thathave value to society, with a constant focus on safety requirements,
to ensure that we can satisfy our customers and consumers andearn their trust.
•We voluntarily and proactively address environmental issues basedon an understanding of their significance to all people and theirimportance to the continuation of business activities.

4. Respect for Human Rights and Individuality•W e respect the basic rights of people in our business and do notdiscriminate on the basis of race, sexuality, creed, nationality or
religion.
•W e value diversity in the workplace and provide a safe andcomfortable work environment to ensure satisfaction andopportunity for each employee.

Tokuyama values communication with diverse stakeholders as the key toworking with the broader society to build a sustainable future.

Material issue: E ngaging with local communities

5. Communications
We make fair and positive public disclosure of information about
our Group including its business activities and financial reports tomaintain good communication with society.

6. Social Contributions•W e actively seek to contribute to society as a good corporate

citizen.
contribute to the development of local regions in ourinternational business activities, respecting not only internationalrules, local laws, and regulations, but also local cultures andcustoms.

•W e

7. Exclusion of Antisocial Forces
We do not enter into any business arrangement with antisocial
forces that threaten public order and safety.

https://www.tokuyama.co.jp/feature/video_library.html(Japanese site)
Technology for
100% recycling ofwaste gypsum board
cited for Minister ofEnvironment Award

TV commercial “Fly off, far away”

Tokuyama Group Guidelines for Business Activities(Preface)
These Guidelines set out the essential principles that govern the ongoing
business activities of the Tokuyama Group (hereinafter referred to as the“Group”), which aims to realize a sustainable future in tandem with society andto gain the trust and appreciation of individual stakeholders.

I. Basic Principle
The Group will not only comply with laws, regulations and its
corporate rules, but also adhere to strict corporate ethics andconduct its business activities with decency.

II. Relationship with Society
1. Contribution to Society
2. Environmental Conservation and Protection
3. Establishment of Systems for Ensuring Safety
In the course of the research, development and manufacture of its
products as well as in the storage and transportation of its products
and goods, including those manufactured by other companies, andin the provision of its services, the Group will comply with safetyrelated laws and regulations. At the same time, the Group willcontinually strive to increase the sophistication of its systems for
ensuring safety.
4. Security and Export Control
To fulfill its responsibility to help maintain international peace andsafety, the Group will comply with laws and regulations that control
the export of cargo and technologies.
5. Nurturing Sound Relationships with Political and Governmental
Organizations
The Group will nurture highly transparent relationships with politicaland governmental organizations, avoid behavior that can be alleged
to constitute misconduct, and cultivate fair and sound relationships
with such organizations.
6. Severing Ties with Antisocial Forces
The Group will take a firm stand against antisocial forces that posea threat to public order and safety, and will thoroughly separate itself
from any relationship with such forces.

III. Relationships with Customers and Trading Partners
1. Reliability of Products and Services
With a constant focus on safety requirements, the Group willdevelop and manufacture products and services that have value tosociety. In doing so, the Group will strive to implement a higher levelof quality assurance in order to meet the quality requirements of its
customers and consumers and earn their trust.

38

TOKUYAMA CSR REPORT 2019

TV commercial“No such things as ‘I can't’ ”

2. Fair, Free and Transparent Competition and Reasonable Trade
3. Entertainment and Gift Giving
4. Other Companies’ Trade Secrets

ISO9001
TVCM
Factory tours

IV. Relationship with Shareholders and Investors
1. Timely, Appropriate and Easy-to-Understand Information
Disclosure
The Group will endeavor to disclose not only information on its
business management and financial status, but non-financial
information, including data on the products and services that itprovides to society as well as on the environmental and social
aspects of its business operations. In addition to its shareholders
and investors, the Group will publicly disclose such information forthe benefit of society and strive to make such disclosure timely,
appropriate and easy-to-understand.
2. Prevention of Insider Trading
The Group will strive to prevent any person in its employ from
exploiting non-public information pertaining to matters inside oroutside the Group that he/she has come to know of in the courseof his/her duties for the purpose of selling or buying securities,
including stocks, for his/her own gain and, further, to prevent such
persons from exploiting non-public information to provide benefits orfavors to a third party.

Customers
Workplace patrols
In-house newsletters,
education and training
Health and
Safety Committee

V. Relationship with Executives and Employees
1. Respect for Human Rights and Prohibition of Discrimination
2. Respect for Privacy
The Group will respect the privacy of the persons in its employ andproperly manage their personal information.
3. Compliance with Labor-Related Laws and Regulations
The Group will comply with labor-related laws and regulations andstrive to maintain a comfortable working atmosphere.
4. Workplace Safety and the Promotion of HealthVI. Our Handling of Group Assets and Financial Reporting
1. Appropriate Use of Group Assets
The Group will efficiently utilize its tangible and intangible assets,
protect such assets against impairment and theft, prohibit any
personal use of such assets and ensure that such assets areappropriately administered.
2. Reliable Financial Reporting
3. Management of Confidential Information
4. Appropriate Use of Information Systems
The Group will appropriately use and administer its in-house
information systems in accordance with its corporate rules.
5. Protection and Use of Intellectual Property Rights

Employees

Business
Partners

Responsible Care, environmental management, ISO 14001
Reduction of CO₂ emissions, energy conservation, waste disposal,
biodiversity initiatives, and development and provision of environmentally friendly products

GlobalEnvironment

Local
Communities
and Society

Accident prevention, Responsible Care
Community Dialogue program, community
volunteers, sponsorship of and participation in summer festivals, grants to promotescience and technology, grants for raising
the next generation, and safety and disasterprevention activities

Disaster
preparedness
drill

Shareholders
andInvestors

In-house newsletters

Purchasing management
CSR purchasing
Joint Occupational Health and Safety
Conference

Joint Occupational Health and Safety
Conference

Briefing session for individual investors
Briefing session on financial results, brief statement of accounts
Annual Securities Report, General Meeting of Shareholders

Ordinary General Meeting of
Shareholders

https://www.tokuyama.co.jp/
eng/ir/report/annual_rep.html

Annual ReportTOKUYAMA CSR REPORT 201939

Community Cooperation and Social
Contribution Activities

up exhibits with hands-on experiments. At the May

As a company with an essential social role, Tokuyama

saw how the thermal decomposition of baking soda

2018 Fair, five employees presented an exhibit entitled, “Let’s Make Honeycomb Toffee.” The children
caused the heated toffee to expand.

also carries out various activities to maintain good relations with its neighbors. Interaction with local com-

■Supporting the Development of Children with anmunities is being promoted not just by the Company,

After-School Care Program

but also by employees, on their own initiative.
■Supporting Recovery after Heavy Rains

Heavy rains in early July 2018 caused major disas-

ters in various parts of western Japan including
Yamaguchi Prefecture. In Shunan, there was a lotof damage caused by landslides and ground-floor■Funding Original Research in the New Materials

its union jointly sent volunteers to the local disaster

The Tokuyama Science Foundation, established inover five days from July 23 to 27, 2018.

grants for original theoretical and applied researchflooding, leaving one person dead. The Company andrecovery center. A total of 28 volunteers participated■Participating in Volunteer Forestry Activities

On November 10, 2018, an event hosted by the

Shunan Agriculture, Forestry and Fishery Office washeld at a municipal conservation forest. About 130
Tokuyama employees and their families removed
bamboo grass and weeds and thinned the forest.

Field

1988 to mark Tokuyama’s 70th anniversary, provides
for new materials development. It also helps fundinternational exchanges and symposia, and raises

public awareness of science and technology. Total
support provided over 30 years is about 1.025 billion

yen. In fiscal 2017, 12 out of 138 applicants received grants totaling 24 million yen. They presented
findings at the Foundation’s 21st Research Results

Reporting Meeting at the Tokuyama Factory on
November 29 and 30, 2018.

■Participating in the 2018 Shimane Chemistry Fair

■Tokuyama Factory Responsible Careof Shikoku and Chugoku, aims to show children

The Tokuyama Factory has conducted the annual

Foundation helps fund the Fair, and Tokuyama sets

help nearby residents better understand its efforts to

Community Dialogue Program

The Chemistry Fair, held since 1993 in the regions
the wonders of chemistry. The Tokuyama Science

Responsible Care Community Dialogue since 2004 toprevent accidents and protect the environment.

The 15th annual dialogue, held on September

The Tokuyama Group’s Shunan Swimming Club oper-

ates a swimming and fitness facility that makes useof exhaust heat from the Tokuyama Factory. It is also
home to ACS Kids, a private after-school care facility
that gives first- to third-graders a place to play andlearn until 7:30 p.m. on weekdays. It offers a variety

of programs such as swimming, tennis, dance, andphysical exercise, as well as homework and tutoring,
English conversation, and abacus classes.

21, 2018, was conducted with the participation of 28
local residents, one official from Shunan City, and 19

Tokuyama Factory employees, including the generalmanager. A briefing on environmental protection efforts in cement manufacturing was followed by a tourof the Tokuyama and Nanyo Factories, with a visit
to the cement central control room. One participant

said the tour led to the realization that cement pro-duction can actually help reduce CO₂ emissions. Withthe understanding and support of local residents, theTokuyama Factory will keep working hard on environmental preservation, disaster prevention and safety.

40

TOKUYAMA CSR REPORT 2019

TOKUYAMA CSR REPORT 201941

History of the Tokuyama Group’s Tokuyama provides products and services that help society andBusiness and Value Creationenrich people’s lives in four businesses: Chemicals, Specialty
Products, Cement, and Life & Amenity.

Chemicals Business
Division

Specialty Products Business
Division

Soda Ash and Calcium Chloride BusinessElectronic Materials Business▶ Soda ash▶ High-purity polycrystalline silicon▶ Sodium bicarbonate▶ Calcium Chloride▶ Sodium silicate cullet

Chlor-Alkali and Vinyl Chloride Business▶ Caustic soda

▶ Hydrochloric acid▶ Sodium hypochlorite▶ Methylene chloride▶ Propylene oxide (PO)▶ Polyvinyl chloride (PVC)

Established to manufacture soda ash

1930

Cement Business

MA Business▶ Fumed silica

1940

1950

▶ Microporous film

Recycling and Environment BusinessGroup Companies▶ Utilization of waste plastic for fuel

IC Chemicals Business▶ Utilization of incinerated ash as a raw

Expanded specialty and processing
businesses
1975 - 1989

1970

1980

▶ Polyolefin film

▶ Medical diagnosis systems▶ Ion exchange membranes and systems

Strengthened and restructured core businesses

Focused on raising corporate value

Building a new foundation

1990 - 2004

2005 - 20152016 -

1990

2000

2010

Established domestic production of
soda ash to resolve difficulty in securing
imports during WWI

Met increased demand for
cement during period of strong
economicgrowth

Launched petrochemical businessto help develop infrastructure andimprove people’s lives

Promoted Company-wide energy
conservation in response to global
energy crisis

Provided cutting-edge materials andcontributed to IT innovation

Pursued zero emissions and resource recycling with increasing demand for building a
recycling-oriented society

Used by-products from production of
soda ash as raw materials for cement

Produced ammonium chloride as
agricultural fertilizer to help increase
postwar food production

Strengthened environmental
measures as society moved toaddress intensifying pollution

Entered value-added sectors suchas electronic materials and finechemicalsStrengthened competitiveness by
integrating and spinning off businesses

Took on challenges of global businessdevelopment and new environmental
businesses

Commenced electrolytic chloralkali business

1 9 6 4 Commenced petrochemical

1 9 7 6 Commenced polyolefin film business

1 9 9 2 Established Sun · Tox Co., Ltd. as a joint venture of

2 0 0 5 Established Tokuyama Chemicals

Commenced production of
precipitated silica

1 9 6 6 Commenced polyvinyl chloride

1918

Established Nihon Soda Kogyo Co.,
Ltd. (currently Tokuyama Corp.) to
produce soda ash in Tokuyama,
Yamaguchi Prefecture (currently
Shunan City)

1952
1960

businessbusiness

Completed construction of
Nanyo cement plant to expand
cement businessFirst shipment of caustic soda

1927

First shipment of soda ash

1938

Completed construction of captive
central power station

Completed constructionof Higashi plant to expand
petrochemical business

1 9 8 2 Commenced consumer products

1 9 9 6 Established Taiwan Tokuyama Corp. andequipment business

1983

Commenced high-purity chemicals
business for electronics industry
Commenced medical diagnosis
systems business

1961

Commenced production of
calcium chloride

Commenced ready-mixed
concrete business

1 9 7 1 Commenced construction
materials businessventure of PVC businessTokuyama Electronic Chemicals Pte. Ltd. in
Singapore for high-purity chemicals business

1 9 9 9 Established Sun Arrow Kasei Co., Ltd. for PVC(Zhejiang) Co., Ltd. in China for fumed
silica business

2 0 0 9 Established Tokuyama Malaysia Sdn.
Bhd. for PV polycrystalline siliconbusiness (sold off in 2017)2020
Strengthening initiatives in the fields of theenvironment, energy, ICT, and healthcare to help
solve social issues through chemistry

2 0 1 8 100th anniversary of foundation
Creating a low-carbon, recyclingoriented society

Environment

2 0 1 3 Established Yamaguchi Liquid Hydrogen
Corp. for liquid-hydrogen businesscompound business

2 0 0 0 Established Yamaguchi Eco-Tech Co., Ltd. as a joint
venture in recycling waste incinerator ash

Established Excel Shanon Corp. as a company of
PVC window business

1 9 7 0 Commenced production ofpolypropylene (PP)Commenced production of cement

1940

1 9 9 5 Established Shin Dai-ichi Vinyl Corp. as a joint

Commenced fine chemicals businessmembrane businesspolyolefin film business

1 9 7 8 Commenced dental materials andbusiness

1 9 6 7 Commenced ion exchange

1924

Commenced PVC window business▶ PVC window▶ Dental materials

material for cement▶
 Recycling of waste gypsum boards▶ High-purity chemicals for electronics manufacturing

1960

NF Business▶ Construction and civil engineering materials

and Granules

Entered petrochemical business▶ Plastic lens-related materials▶ Ready-mixed concrete

Thermal Management Material Business

1961-1974

TS Business▶ Cement-based soil stabilizer▶ High-purity fused spherical silica▶ Positive-type photoresist developer

Expanded inorganic chemicals andcement businesses
1945 -1960▶ Bulk pharmaceutical ingredients/intermediates▶ Blast furnace slag cement▶ Moderate-heat Portland Cement

Fumed Silica Business▶ Isopropyl alcohol (IPA)

1918 -1944

Life & Amenity Business
Division▶ Portland cement▶H igh-purity Aluminum Nitride (AlN) Powder

New Organic Chemicals Business

1920▶ Metallic boron

Cement Business
Division

Established Tokuyama Nouvelle Calédonie
S.A. in New Caledonia, for cement business

1 9 8 4 Commenced polycrystalline silicon

Supporting innovation

ICT

business

Established Tokuyama Fiberglass
Corp. (currently Tokuyama Mtech
Corp.)

1 9 7 2 Commenced production of
isopropyl alcohol (IPA)

1 9 8 5 Commenced aluminum nitride business

2 0 0 1 Established Tokuyama Polypropylene Co., Ltd.

Commenced gas sensor business bymeans of equity participation in
Figaro Engineering Inc.

Established Tokuyama Dental Corp. for dental
materials and equipment business

Completed construction of Kashima
Factory

1 9 7 5 Commenced chlor-alkali production
using diaphragm cell process

2 0 0 2 Established Shanghai Tokuyama Plastics Co., Ltd.

in Shanghai, China for polyolefin microporous film
business

2 0 0 4 Established ASTOM Corp. for ion exchange

1 9 7 3 Closed chlor-alkali plant using
mercury cells process

as a joint venture in polypropylene business

1 9 8 8 Established A&T Corp. andmembranes and systems

Established Tokuyama Chiyoda Gypsum
Co., Ltd. for recycling of waste gypsum
boards

2 0 1 4 Established TOKUYAMA & CENTRALSODA Inc. ( currently Tokuyama Soda
Trading Co., Ltd.) for soda ash andcalcium chloride businessContributing to health and longevity

Healthcare

2 0 1 5 Established Tokuyama M E T E L Corp. asa joint venture for industrial detergent
businesscommenced medical diagnosis
system and equipment business

1 9 8 9 Completed construction of the42

TOKUYAMA CSR REPORT 2019

Tsukuba Research Laboratory

TOKUYAMA CSR REPORT 201943

Third-Party Review
Financial

Implementing the Medium-Term Management Plan (April 2016–March 2021)

Highlights

Under its corporate vision to build a new foundation, established in May 2016, Tokuyama
drew up a five-year medium-term management plan starting from fiscal 2016 that seeks to:(1) change the organizational culture; (2) rebuild business strategies; (3) strengthen Groupmanagement; and (4) improve the Company’s financial position. Now, a fifth point has been

A Review ofTokuyama’s CSR
Report 2019

added to the medium-term management plan: (5) pursue initiatives to address the UN
Sustainable Development Goals (SDGs). The aim is to help solve social issues.

Eriko Nashioka
Representative Director, Institute for Environmental Management
Accounting, Certified Public Accountant and Certified Tax Accountant,

Net Sales and Operating Income

and part-time lecturer in environmental accounting and environmental

Fiscal 2018 Sales by Business Segment(Unit: billion yen)

Net Sales

Operating Income(Billion Yen)

350
300

302

307.1

250

308

299.1
397

324.6

412

200
150

195

100

335
(Billion Yen)

352

400

360

300

231

2015

2016

2017

2018

2020 (FY)324.6 *
Cement92.3 (25.2%)

100

2014

Chemicals
98.3 (26.8%)
Total

Life & Amenity

54.3 (14.8%)

200

50
0

Others62.3(16.9%)0Tokuyama Value Creation
The CSR Report 2019 presents a clear picture ofSpecialty Products
59.6 (16.3%)

Tokuyama began materiality analysis last year, andpublished the results in this report. The Company

listed its CSR activities, organized and matchedthem to social issues that need to be addressed, andprioritized them to identify nine material issues andset KPIs for each one. The social issues to which theactivities contribute were linked with the SDGs anddescribed accessibly.

I was able to see at a glance the CSR manage-of CO₂ emissions is a global concern. Targets should

is also investigating the kind of value needed tobenefit people’s lives, while fulfilling its social re-sponsibilities with business processes and productcreation that improve society. The model calls for

issues to be addressed going forward, the reduction
be set for total CO₂ emissions reduction, and the approach to coal-fired thermal power generation ought
to be clarified.

Communication with Stakeholders

this technology is achieved by providing ideas and

The report presents examples of Tokuyama’s closeto spontaneously cooperate. A good example ofTokuyama Factory, where the company began.

this is the innovative dental material featured in the

Spotlight section. The material arose from a programthat allows researchers to spend 10% of their work

time on a non-primary theme that interests them.

countries and regions around the world, primarily in Asia.

Identifying Materiality

benefits people’s lives through chemistry.” Tokuyama

opportunities for people in and outside the company

Global Networkin the future.

ment approach that Tokuyama is taking. Regarding

Tokuyama’s technology to solve social issues—and

Tokuyama has expanded globally, with factories and sales branches now established in eightcontinue to provide new value to society and to growTokuyama’s value creation process, which is key toachieving the company’s mission: “Creating value that ote: Segment sales resultsN
include inter-segment sales(Target)auditing for the Faculty of Commerce, Doshisha University

important for a fulfilling life. I expect Tokuyama will

The program has resulted in the treatment of dental
cavities, offering many people the value of being
able to smile and speak without hesitation. This isrelationship with the neighborhoods around theReaders would also like to know how Tokuyama is
working to build relationships with investors, custom-ers, employees and other stakeholders outside of
local communities. I would suggest holding dialogues

with a broader range of stakeholders to further enhance information disclosure.

Tokuyama Europe GmbH
Tokuyama Dental
Deutschland GmbH

Shanghai Tokuyama Plastics Co., Ltd.
Tokuyama (Shanghai) Co., Ltd.
Tokuyama Trading (Shanghai) Co., Ltd.

Tokuyama Dental Italy Srl
Tokuyama Chemicals(Zhejiang) Co., Ltd.

Tokuyama Korea Co., Ltd.

Hantok Chemicals Co., Ltd.

Tokuyama America Inc.

Kazuo Matsuya
Tokuyama Dental America Inc.

Taiwan Tokuyama Corporation
Tokuyama Asia Paciﬁc Pte. Ltd.
Tokuyama Electronic Chemicals Pte. Ltd.

Tokuyama Nouvelle Calédonie S.A.

Manufacturing

Sales

Response toThird-Party Review

Executive Officer
General Manager, Corporate Social
Responsibility Division

Tokuyama marked its 100th anniversary in February
2018, embarking on a second century in business.

We recognize that it is important to solidify our ESG
foundation in order to achieve sustainable growth,and to help solve social issues, including SDG initia-

tives, through our main business activities. Everyone

at the Tokuyama Group is focusing their efforts on
this shared objective.

44

TOKUYAMA CSR REPORT 2019

The CSR Report 2019 disclosed material issues

that we identified over the last year. Tokuyama’s ma-

terial issues are closely related to our overall CSR
activities and in support of the SDGs. We will apply
PDCA cycles, and disclose the progress in future

CSR reports and via other channels. CO₂ emissions
reduction is the most important issue for us as acompany that gets most of its electricity from coalfired power generation. Our CO₂ initiative policy andreduction targets were highlighted in “Close-up 1.” To
help in the fight against global warming, Tokuyama

will pursue all possible measures, without exceptions.

In addition, we will actively engage in dialogue with awide range of stakeholders and apply their feedbackin future activities.

TOKUYAMA CSR REPORT 201945

Site Reports

Site Reports
Tokuyama
Factory

Location:
1-1, Mikage-cho, Shunan-shi, Yamaguchi 745-8648, Japan
Number of employees: 1,577
Total site area:
1.91 million ㎡
Main products:
Cement, inorganic chemical products, organic chemical products,
polycrystalline silicon, fumed silica, polyvinyl chloride, and other products

Kashima
Factory

Still situated at the Company’s first business site, the Tokuyama Factory is the Group’s main
manufacturing facility, and its products account for about 90% of non-consolidated sales.

Location:
26 Sunayama, Kamisu-shi, Ibaraki 314-0255, Japan
Number of employees: 78
Total site area:
101,000㎡
Main products:
Produced by Tokuyama Corporation
Bulk pharmaceuticals for diabetes drugs, anti-hypertensive agents, eyedrops, allergy medicines; optical materials (plastic lens monomer, light
modulating materials, and hard coating solutions)
Produced by Tokuyama Dental Corporation
Dental materials (composite resins, orthodontic materials, rebasing andrelining materials, impression materials, and investment materials)

The factory operates with the motto,“Go to work healthy and return home happy.”In fiscal

2019, the Tokuyama Factory is placing top priority on measures to comprehensively remove

The Kashima Factory designates policies for process safety management and ensures thatrisks and increase safety awareness and risk sensitivity, in an effort to ensure no accidents or

all workers follow them to create a safe workplace. In fiscal 2019, the factory is focusing on

disasters occur. Specifically, the plant is: (1) identifying and eliminating risks from contact withidentifying and eliminating risks using change management to eliminate accidents and prevent

harmful substances, being caught in or between equipment, contact with high temperatures,

disasters. It is also securing compliance with environmental regulations and prioritizing theand falling from height or to the same level; (2) pursuing dialogue on safety to eliminate

reduction of environmental impacts through waste recycling. In fiscal 2018, the factory

the root causes of continuing risks on the production floor; (3) verifying that actual work
Hideki Adachi
Tokuyama Factory General Manager

Yoshiyuki Kitajima
Kashima Factory General Manager

SOx emissions
NOx emissions

Unit
Metric tons
Metric tons

FY2014550
8,850

FY2015680
8,900

FY2016750
9,500

FY2017780
10,100FY2018800
10,100

Soot emissions

Metric tons

135

138

138

168

122

Industrial water consumption

Million metric tons

41.7

42.1

44.1

44.5

44.7

Effluent discharged

Million metric tons

23.9

24.2

24.2

24

24

COD level

Metric tons

110

124

114

119

127

Total nitrogen discharged

Metric tons

89

92

145

173

159

Total phosphorous discharged

Metric tons

2.6

2.2

2.1

2.1

2.3

PRTR-designated substance emissions

Metric tons

25

36

29

29

33
339

Thousand metric tons

354

389

376

366

Waste sent to landfills

Metric tons

313

383

368

382

397

Energy consumption

Thousand gigajoules

44,20045,10047,10049,50049,000CO2 emissions (originating from fossil fuel)Thousand metric tons

4,040

4,110

4,290

4,500

4,430

0

1

0

0

3

Complaints

Cases

Unit: metric tons
Emissions and Transfer of Specific PRTR-Designated Substances in Fiscal 2018 (mg-TEQ equivalency
for dioxins)

Substance nameRegulatory
numberAmount of emissions
Atmospheric

Water

Soil

Subtotal

Amounttransferred

1,2-Dichloroethane

157

10.0

0.0

0.0

10.0

1.8

Chloroethylene (vinyl chloride)

94

6.8

0.0

0.0

6.8

0.0

Chloromethane (methyl chloride)

128

3.8

0.0

0.0

3.8

0.0

Chlorodifluoromethane

104

3.0

0.0

0.0

3.0

0.0

Cresol

86

0.0

2.6

0.0

2.6

0.0

Toluene

300

2.4

0.0

0.0

2.4

6.7

Dichloromethane (methylene chloride)

186

1.3

0.0

0.0

1.3

0.0

Chloroform

127

0.8

0.0

0.0

0.8

0.0

1,2-Epoxypropane (propylene oxide)

68

0.6

0.0

0.0

0.6

1.8

Hydrazine

333

0.0

0.6

0.0

0.6

0.0

1

0.0

0.5

0.0

0.5

0.0

1-Bromopropane

384

0.5

0.0

0.0

0.5

0.8

1,2-Dichloropropane

178

0.4

0.0

0.0

0.4

146.1

Water refers to public waters

Carbon tetrachloride

149

0.1

0.0

0.0

0.1

0.0

2,2-Azobisisobutyronitrile

16

0.0

0.0

0.0

0.0

0.0

Amount transferred indicates thesum of the quantity transferred to
sewage systems and the quantity
subject to intermediate treatment

Water-soluble copper salt

272

0.0

0.0

0.0

0.0

0.0

Hydrogen fluoride and its water-soluble form

374

0.0

0.0

0.0

0.0

0.0

Benzene

400

0.0

0.0

0.0

0.0

0.0

Boron compounds

405

0.0

0.0

0.0

0.0

1.1

Dioxins

243

35.6

2.4

0.0

38.0

0.0

29.6

3.8

0.0

33.4

158.3

46

for all waste by studying the feasibility of implementing materials recycling and thermal recycling.

verifying, executing, and reviewing the goals of safety activities on a daily basis.

Waste generated

Total figures have been rounded to
the first decimal place

and achieving a 99% recycling/reuse rate. The factory will increase the effective utilization rateeliminating risks; (4) implementing pointing and calling at crosswalks within the plant; and (5)Performance Data

Substances are listed in descendingorder of emissions levels; substanceswith no emissions are listed in orderof the regulatory number

achieved an 86% waste effective utilization rate, generating eight metric tons of landfill wasteconditions are consistent with work standards for subcontracted work, and identifying andWater-soluble compounds of zinc

Total (excluding dioxins)TOKUYAMA CSR REPORT 2019

Performance Data
Unit

FY2014FY2015FY2016FY2017FY2018Industrial water consumption

Thousand metric tons

48

43

36

39

25

Effluent discharged

Thousand metric tons

63

54

50

54

39

COD level

Metric tons

3

2

2

2

2

PRTR-designated substance emissions

Metric tons

2

2

2

2

1

Waste generated

Metric tons

1,020

735

775

761

831

Waste sent to landfills

Metric tons

11

20

9

9

8

Energy consumption

Thousand gigajoules

36

33

37

39

36

Metric tons

2,465

2,246

2,670

2,697

2,594

0

0

0

0

0

CO2 emissions (originating from fossil fuel)Complaints

Cases

Emissions and Transfer of Specific PRTR-Designated Substances in Fiscal 2018
Substance nameRegulatory
number

Unit: metric tons

Amount of emissions
Atmospheric

Water

Soil

Subtotal

Amounttransferred

Dichloromethane

186

0.5

0.0

0.0

0.5

2.4

Chloroform

127

0.4

0.0

0.0

0.4

30.5

Toluene

300

0.1

0.0

0.0

0.1

4.0

Acetonitrile

13

0.0

0.0

0.0

0.0

0.8

N,N-Dimethylacetamide

213

0.0

0.0

0.0

0.0

2.0

N,N-Dimethylformamide

232

0.0

0.0

0.0

0.0

5.7

2-Vinylpyridine

338

0.0

0.0

0.0

0.0

0.2

Methyl methacrylate

420

0.0

0.0

0.0

0.0

0.0

Total

1.0

0.0

0.0

1.0

45.6

All figures are numerical sums for Tokuyama Corporation
and Tokuyama Dental Corporation

Water refers to public waters

Substances are listed in descending order of emissions
level; substances with no emissions are listed in order ofthe regulatory number

Amount transferred indicates the sum of the quantity
transferred to sewage systems and the quantity subject tointermediate treatment
Total figures have been rounded to the first decimal place

TOKUYAMA CSR REPORT 201947

Site Reports

Sun • Tox
Co., Ltd.

Established:
Shareholders:
Head office:Business activities:

February 14, 1992
Tokuyama Corporation (80%), Rengo Co., Ltd. (20%)
ORIX Ueno1chome Building, 1-1-10 Ueno, Taito-ku, Tokyo, Japan
Manufacture and sale of biaxial-oriented polypropylene films and castpolypropylene films

Sun Arrow
Kasei Co., Ltd.

Sun Arrow Kase’s Tokuyama Plant manufactures and sells polyvinyl chloride compounds

Sun·Tox's Kanto Plant manufactures biaxial-oriented polypropylene films and castused for pipes, joints, and other items essential for upgrading infrastructure, as well as PVC

2017, the plant received the Cogeneration Grand Prize for upgrading its gas cogeneration

management and having all employees take part in safety and accident prevention efforts has

facility. These high efficiency facilities will help the Kanto Plant to further reduce energy

years it has been operating. Since acquiring ISO 9001 certification in fiscal 2017, the plant has

polypropylene films, which are used for food packaging and other applications. In fiscal

windows, which are highly effective for saving energy. Practicing ISO 14001 environmental

facilities and added another line to its biaxial-oriented polypropylene film manufacturing

helped the plant to maintain a record of zero accidents requiring work absences for all 20

consumption and environmental impacts. The plant also takes part in clean-up activities

Plant Manager

inside and around the industrial complex to promote harmony with the local community. As it
continues to implement three management systems, namely Japan’s Occupational Safety and

Yasuto Yasuzawa
Plant Manager

Health Management System (OSHMS), ISO 14001, and ISO 9001, the plant is building on its

Performance Data
Waste generated

Unit
Metric tons

FY201420

FY201515FY201623

FY201738

FY201844

Waste sent to landfills

Metric tons

10

5

10

17

44

Energy consumption

Thousand gigajoules

351

356

403

467

514

CO2 emissions

Thousand metric tons

20

21

23

23

25

SOx emissions

Metric tons

0.3

0.3

0.1

―
1.3
0.04

NOx emissions

Metric tons

0.6

0.7

0.4

―
1.0

Soot emissions

Metric tons

0.05

0.04

0.02

0.01

■ Tokuyama Plant
Sun·Tox's Tokuyama Plant manufactures biaxial-oriented polypropylene films, which arefurther improved customer satisfaction with a focus on the environment, safety and quality
control, while strictly enforcing internal controls and carrying out Responsible Care activities.

Performance Dataachievements with the aim to be a community-based factory.

Location: 3075-18 Shimasu,
Itako-shi, Ibaraki, Japan
Number of employees: 205
Total site area: 89,800㎡

February 1, 1999
Tokuyama Corporation (100%)
1-2 Harumi-cho, Shunan-shi, Yamaguchi, Japan
Manufacture and sale of polyvinyl chloride compounds■ Tokuyama Plant■ Kanto Plant

Kazunori Shimada

Established:
Shareholder:
Head office:Business activities:

Power consumption

Unit
Thousand kilowatt hours

FY20142,473

FY20152,659

FY20162,490

FY20172,533

FY20182,631

Waste plastic produced

Metric tons

108

141

135

128

171

Waste plastic effectively used

Metric tons

105

141

135

128

171

Waste sent to landfills offsite for disposal

Metric tons

8

6

0

0

0

Steam usage

Metric tons

240

240

240

240

240

Thousand metric tons

65

65

65

65

65

Industrial water consumption
Location: 1-2 Harumi-cho, Shunan-shi,
Yamaguchi, Japan
Number of employees: 29
Total site area: 3,280㎡

Tokuyama
Polypropylene
Co., Ltd.

Established:
Shareholders:
Location:
Business activities:

mainly used for food and beverage packaging, amounting to about 23,000 metric tons

April 2, 2001
Tokuyama (50%), Prime Polymer Co., Ltd. (50%)
1-1 Harumi-cho, Shunan-shi, Yamaguchi, Japan
Manufacture and sale of polypropylene resin and flexible polypropylene
resinannually. As part of its environmental initiatives, the plant is actively working to reduce perunit energy consumption and increase recycling rates. With respect to safety, it acquired
OSHMS certification in 2013 for all of its departments including R&D departments. Under■ Tokuyama Plant

the slogan,“Strictly following safety procedures, making manufacturing enjoyable, and neverNobuhiko Nakayama

Tokuyama Polypropylene's Tokuyama Plant conducts risk assessments of processes, facilities,

compromising quality,”the plant aims to keep its facilities operating safely so it can be

and operations, and takes measures to identify near-miss situations and points of concern, in

depended upon by the community, customers and employees.

order to enhance the plant's safety culture. The result has been a perfect accident- and disaster-

Plant Manager

Performance Data

free record since the time it was first established as Tokuyama's polypropylene film business

Waste generated

Unit
Metric tons

FY201476

FY201574

FY201684

FY201768

FY201886

Waste sent to landfills

Metric tons

1

1

1

1

1

Energy consumption

Thousand gigajoules

458

471

463

422

368

CO2 emissions

Thousand metric tons

27

27

28

25

20

Metric tons

0.0

0.0

0.0

0.0

0.0

Cases

0

0

0

0

0

PRTR-designated substance emissions
Complaints

43 years ago. The plant is scheduled to obtain recertification in 2019 under the High Pressure

Gas Safety Act and the Ordinance on Safety of Boilers and Pressure Vessels, and is pursuing

Yuichi Taguchi
Plant Manager

Responsible Care activities with the goals of extending its accident- and disaster-free record,
reducing its environmental impact, and eliminating customer complaints related to quality.

Performance Data
Industrial water consumption

Location: 7-7, Harumi-cho,Shunan-shi, Yamaguchi, Japan
Number of employees: 144
Total site area: 24,100㎡

Unit
Thousand metric tons

FY2014308

FY2015370

FY2016333

FY2017378

FY2018343

Waste generated

Metric tons

89

35

77

35

66

Waste sent to landfills

Metric tons

2.4*

0

1.8*

0

1.6*

%

76

71

73

69

70

Unit energy consumption index (fiscal 2002=100)＊ Year with periodic maintenance

Location: 1-1 Harumi-cho, Shunan-shi,
Yamaguchi, Japan
Number of employees: 63
Total site area: 70,997㎡

48

TOKUYAMA CSR REPORT 2019

TOKUYAMA CSR REPORT 201949

Business Activities and Biodiversity
Other inputs
Ballast water measures

Relocation of species and introduction of non-native
species through transport

Promotion of modal shift

Acceleration of crisis caused by global warming due toCO2 emissions from transport of raw materials

Use of energy

Acceleration of crisis caused by global warming due
to CO2 emissions from transport of raw materials

Relocation of species and introduction of non-native
species through transport

Ballast water measures

Acceleration of crisis caused by global warming due toCO2 emissions from transport of raw materials

Promotion of modal shift

Distribution (introduction of transport vehicles, etc.)
Introduction of facilities
Management of per unit energy consumption

Supply chain

Supply chain

Input

Manufacture of products atbusiness sites

OutputRaw materials
Impact from use of biologicalmaterials, such as biomass(excess consumption, changes
in habitats)

Design, development,
manufacturing and processing

Fuel

Impact on downstream industry(pollution, changes in habitats, climatechange)Products: inorganic/organic
chemicals, cement,

Appropriate disclosure ofelectronic materials,

Waste and by-products
Water use

information through SDS, etc.

functional materials, etc.

Land use

Impact from use (pollution, changes inhabitats)

Impact from raw material
production in manufacturingindustry (pollution, climatechange, changes in habitats)

Improvement in effective

Disposal of waste (pollution, changes
in habitats, climate change)

Acceptance of industrial waste

utilization rate for waste
and promotion of zero

Impact on ecosystems andhabitats from extraction of coal,salt and mineral resources

Impact from emissions of chemical substances into water, air and soil (pollution)
Impact from industrial waste, etc. (pollution, changes in habitats)Appropriate management of businesssites and areas of greenery

Impact from use of water resources(excessive consumption, changes inhabitats)

Changes in habitats due to land use (work and construction on business sites, etc.)
Sowing of seeds and afforestation,etc. on mine and former mine lands

Appropriate management of emissions: NOx,
SOx, soot, volatile organic compounds,
PRTR substances, fluorocarbons, chemical
oxygen demand (COD), suspended solids(SS), nitrogen, phosphorus

waste emissions
Social contribution activities

Participation in volunteer forestry activities
Improvement in effective utilization rate forwaste and promotion of zero waste
emissionsInfluence on ecosystem

Participation in community clean-up activities

Initiatives to reduce influence on ecosystem*Prepared referencing Guidelines for Private Sector Engagement in Biodiversity, Second Edition (Ministry of the Environment, Japan)

Environmental Data for Tokuyama
Input (Unit: 1,000 metric tons)
Waste and by-products
Fuel
Raw materials
Industrial water
Output (Unit: 1,000 metric tons)
Carbon dioxide
Waste (incinerated and landfill)
Substances with environmental impact
Process effluent

FY2014
1,790
1,820
5,900
41,700FY20145,930
21
10
22,100FY2015
1,780
1,810
5,990
42,100FY20155,910
22
9.7
24,000

Energy Consumed on a Per-Unit Basis at the Tokuyama Factory
Unit: %
Per-unit energy consumption

Energy Consumption
Unit: 1,000 gigajoules
Tokuyama Corporation
Group companies

Emissions of CO2

Unit: 1,000 metric tons
Originating from fuelOriginating from raw materials
Originating from waste matter
Group companies

Base year (FY2005)

FY2017FY2018
1,870
2,150
6,670
44,700FY2018
6,500
23
11.4
24,500FY2018Comparison withprevious fiscal year

Comparison withprevious fiscal year

Base year (FY2005)

FY2014
44,4002,800

FY201545,3002,700

FY201647,3002,500

FY201749,6002,700

FY201849,1002,600

FY2014
4,040
1,630
230
200

FY2015
4,120
1,590
230
200

FY2016
4,300
1,720
250
190

FY2017
4,510
1,820
250
190

FY2018
4,440
1,800
280
180

FY2017780
10,100168

FY2018800
10,100122Comparison withprevious fiscal year

FY2018Comparison withprevious fiscal year

4,820
2,110
210
250

FY2014
550
8,850
135

Emissions of PRTR Substances

FY2014FY2015
680
8,900
138

FY201527
36

TOKUYAMA CSR REPORT 2019

FY2016
750
9,470
138

FY201637
40

FY2017

30
34

30
37

91.2

Discharge of Industrial Effluent

FY2014
1.5
2.1
4.9
5

FY2015
1.7
1.1
10.6
7.7

FY2016
2.3
1.7
6.4
5.4

FY2017
1.8
1.6
6.3
7.6

FY2018
1.4
1.2
10
6.8

Comparison withprevious fiscal year

FY2014FY2015FY2016FY2017FY2018Comparison withprevious fiscal year

24.1

Unit: Metric tons
COD
NitrogenPhosphorous

FY2014

Base year (FY1990)

Landfilled waste (metric tons)
Effective utilization rate (%)“Zero emissions” rate (%)

36,26076.9
82.4

Breakdown of Waste Treatment Methods
Unit: 1,000 metric tons
Waste recycled in-house
Waste recycled externally
Incinerated waste
Waste sent to landfills
Total waste generated(%)

FY2014
312
21.9
21.3
0.3
355

24.2

FY2015FY201612692
2.2

FY2014FY20151,550
4FY2018

121
173
2.1

FY2016FY2017

380
94.2
99.9

390
93.8
99.9

FY2015
346
21.4
21.9
0.4
389

FY2016
332
23.1
21.5
0.4
377

FY2017
317
26.7
22.5
0.4
367

FY2018
286
30.2
23
0.4
339

FY2014448

FY2015459

FY20141,702
86FY20151,711
74

FY2016441

FY20161,746
84FY2017430

FY2017(%)

2.1

Comparison withprevious fiscal year

129
159
2.3

400
94.3
99.9

Base year (FY1991)
227

Base year (FY1991)

FY2017

(%)

-22.2
-25.0
58.7
-10.5

24.5

320
93.9
99.9

Material and Thermal Recycling Amounts in Cement Production
Unit: 1,000 metric tons
Material recycling
Thermal recycling

24

116
145
2.1

Amount of Waste Matter and By-Products Used to Produce Cement
Unit: Kg per metric ton of cement
Amount used

(%)

24.2

112
89
2.6

Landfilled and Recycled Waste

2.6
0.0
-27.4

13.3%
-8.1%

Unit: Metric tons
Dichloromethane (methylene chloride)
Chloroform
1,2-Dichloroethane
Chloroethylene (vinyl chloride)

Water Pollutant Emissions

97.0

34
34

Emissions of Hazardous Air Pollutants

Industrial effluent (million metric tons)

Target (FY2020)

90.5

Base year (FY2005)

(%)

3.2
9.5
7.5
1.2

93.6

53,700
3,500

(%)

-0.5
4.4
1.3
1.8

94.6

Unit: Metric tons
SOx
NOx
Soot

50

FY2016FY2017
1,880
2,250
6,760
45,500FY2017
6,300
21
10.6
24,200100

Emissions of SOx, NOx, and Soot

Unit: Metric tons
Tokuyama Corporation
Group companies

FY2015FY2016
1,830
2,050
6,020
44,100FY20166,000
22
9.9
24,200

(%)

6.6
-8.1
9.5

FY2018
400
93.1
99.9

Comparison withprevious fiscal year

(%)

-9.8
13.1
2.2
0.0
7.6

FY2018425

FY2018

1,800
79

TOKUYAMA CSR REPORT 2019

1,786
82

51

Corporate Data
Company name: Tokuyama Corporation
Location: Tokyo Head Office
FRONT PLACE AKIHABARA, 7-5, Sotokanda 1-chome,
Chiyoda-ku, Tokyo 101-8618, Japan
Tel: +81-3-5207-2500 Fax: +81-3-5207-2580
Tokuyama Factory
1-1, Mikage-cho, Shunan-shi, Yamaguchi 745-8648,
Japan (Registered address)
Tel: +81-834-34-2000 Fax: +81-834-33-3790
Other facilities in Japan
Kashima Factory, Tsukuba Research Laboratory, Osaka Office,Takamatsu Branch, Hiroshima Branch, Fukuoka Branch,
Sendai Branch, Shunan Sales BranchPresident: Hiroshi Yokota

Editorial Policy
Established:

February 16, 1918

● The CSR Report 2019 has been compiled for the purpose of provid-

Scope of the Report

Capital:10 billion yen

ing stakeholders with clearly presented information on the Tokuyama

Period covered: Performance data is from fiscal 2018 (April 1, 2018

Number of
employees:

5,471 (consolidated basis; including 522 working overseas);

Group’s CSR initiatives and overall business activities. The PDF edition,

to March 31, 2019); certain activities carried out in fiscal 2019 are also

1,924 (non-consolidated basis)

available at the website below, includes Site Reports which could not becovered.

Number ofgroup companies: 82

included in the print edition due to space limitations.

Companies covered: Tokuyama Group; environment-related data is

Main businesses: Manufacture and sale of the following chemicals and products

https://www.tokuyama.co.jp/eng/csr/

TOKUYAMA CSR REPORT 2019

performance data includes the sum of the data from 22 manufacturingsubsidiaries of the Tokuyama Group in Japan.

	Chemicals: Soda ash, chlor-alkali, vinyl chloride andAreas covered: Activities reported on were mainly carried out in Japan;

new organic chemicals

Specialty Products: Polycrystalline silicon, fumed silica, high-purity 		● Eriko Nashioka of the Institute for Environmental Management

however, some activities include group subsidiaries outside Japan.

chemicals for electronics manufacturing and aluminum nitride

Accounting was invited to offer a third-party opinion on this report.

Date of issue: September 30, 2019

Cement: Cement, recycling and environment-related business● The CSR Report 2019 has been produced based on the Environmental

Next issue (tentative): September 2020 (previous issue was inReporting Guidelines (fiscal 2018 edition) published by the Ministry

September 2018)

materials, dental materials, medical diagnosis systems,of the Environment of Japan and GRI standard published by Stichting

Photo: The Tokuyama Factory overlooks the rich waters of the Seto Inland

ion exchange membranes, microporous films, polyolefin films, PVC windows

Grobal Reporting Initiative.

Sea. This location was established 100 years ago in the city of Shunan in	Life & Amenity: Bulk pharmaceutical ingredients, plastic lens-related

Securities code: 4043 (First Section of the Tokyo Stock Exchange)

52

for the Company’s Tokuyama Factory and Kashima Factory; someYamaguchi Prefecture and has grown together with the residents of thelocal community.

TOKUYAMA CSR REPORT 201953