Zeon Group CSR Report 2021

CSR REPORT 2021

2

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Contents
Editorial Policy

P. 3

Fair Operating PracticesP. 41

Compliance

P. 41

P. 4

CSR Procurement

P. 42

Zeon CSR Policy

P. 4

Fair and Appropriate Information Disclosure P. 44

CSR Management

P. 5

Timeline of CSR Initiatives

P. 6

Progress Made in the CSR
Implementation Plan as of FY 2020

P. 7

Zeon’s CSRCorporate Governance

P. 12

Corporate Governance

P. 12

Risk Management

P. 14

Environment
Environmental Philosophy
and Safety Philosophy

P. 15
P. 15

Environmental and Safety Management P. 17
Environmental and Safety Education

P. 18

Overview of Environmental Impacts

P. 20

	‌Economic Indicators of Environmental
Performance (Environmental Accounting) P. 21
	‌Climate Change

P. 22

Chemical Substances Management

P. 23

Air, Water, and Waste Materials

P. 25

Chemical Product Safety Information

P. 26

	‌Environmental Protection in Logistics

P. 27

Labor PracticesP. 28

Basic Approach and Initiatives

P. 28

Employment and Diversity

P. 29

HR Development

P. 31

	‌Human Resources System

P. 33

	‌Creating Working Environments
That Protect HealthP. 35

Occupational Safety

P. 38

Safety and Accident Prevention

P. 39

Consumer Issues
Quality Assurance
Human Rights

P. 46
P. 46
P. 48

	‌Upholding Positive Working Environments
by Protecting Human Rights andP. 48
Prohibiting Discrimination
Protecting Human Rights in the Supply Chain P. 49
Becoming a Signatory to the United
Nations Global Compact and Participatingin Subcommittee Activities
Community

P. 49
P. 50

Basic Approach and Initiatives

P. 50

CSR Core Projects

P. 51

ESG Data

P. 55

Environment

P. 55

SocialP. 56

Governance

P. 57

GRI Content Index

P. 58

United Nations Global Compact Index

P. 63

CSR REPORT 2021

3

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Editorial Policy
Zeon Corporation and Zeon Group (“Zeon”) publish a
Corporate Report, which provides stakeholders with an
overview of Zeon’s business activities. In addition to the
Corporate Report, which functions as an annual reportand company profile, Zeon also publishes a CSR Report,
which is intended to help stakeholders understandZeon’s approach to CSR and its environmental activities.
This is the only report that publishes the CSR Matrix in
its entirety. Besides bringing together information about
Zeon’s CSR approach and CSR measures, this CSR Reportis also intended to function as a communication tool,with the aim of fostering dialog with Zeon’s stakeholders,so that Zeon can play an even more useful role in theworld. We look forward to hearing your frank comments
and suggestions regarding the CSR Report, which canprovide a useful reference for us in our future activities.

Reporting Period
April 2020 to March 2021 (includes some information
relating to the period in and after April 2021)

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

Reporting Scope for Environmental Data
Japan: Takaoka Plant, Kawasaki Plant, Mizushima Plant,
Tokuyama Plant, Zeon Kasei Co., Ltd., Zeon Polymix Inc.,
Zeon Medical Inc., Zeon North Co., Ltd., Tokyo ZairyoCo., Ltd., RIMTEC Corporation, Zeon Yamaguchi Co., Ltd.,
Zeon Chemicals Yonezawa Co., Ltd., Optes Inc., Tohpe
Corporation, Zeon Opto Bio Lab Co., Ltd.
Outside Japan: Zeon Chemicals L.P. (ZCLP), Zeon
Chemicals (Thailand) Co., Ltd. (ZCT), Zeon Advanced
Polymix Co., Ltd. (ZAP), Zeon Chemicals Singapore Pte.
Ltd. (ZCS)

Reference Guidelines
Determined with reference to the 2018 Environmental
Reporting Guidelines promulgated by Japan’s Ministryof the Environment (MOE), and with reference to ISO
26000.
Direct inquiries to: CSR Promotion Department(publishing department), Zeon Corporation
Shin Marunouchi Center Building, 1-6-2 Marunouchi,
Chiyoda-ku, Tokyo 100-8246, Japan
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604
http://www.zeon.co.jp/index_e.html

Date of Publication
March 2022 (previously published in November 2020)

CSR Communication Tools
CSR Report 2021
(PDF)
Zeon Group CSR Report 2021

Vision for 2030

Corporate Report 2021
(Printed booklet, PDF)

A company that lives up to societal expectations
and the aspirations of employees

Zeon Group

Corporate Report 2021

CSR Activities website(HTML, limited reporting)Site Reports(PDF)

CSR REPORT 2021

4

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Zeon’s CSR
Zeon CSR Policy
CSR ManagementTimeline of CSR Initiatives
Progress Made in the CSR
Implementation Plan as of FY 2020

P. 4
P. 5
P. 6
P. 7

Zeon CSR Policy
At Zeon, we regard CSR activity as all activities undertaken in order to continue being “a company trusted and valued
by society.” With each employee acting in awareness of CSR, we will thoroughly enact compliance and contribute to theglobal environment and sustainable development through corporate activities.

Corporate Philosophy
Corporate Philosophy (established April 1997)“Zeon is contributing to the preservation of the Earthand the prosperity of the human race.”
In keeping with its name, which derives from the Greek
words “geo” (the Earth) and “eon” (eternity), Zeon willcontribute to the sustainable development of people,
society and the global environment through innovative
world-class technologies.

CSR Policy
CSR Policy (established April 2010)
1. ‌We will ensure compliance and meet society’s needs
for safety and security
2. ‌We will contribute to sustainably developing society
and protecting the global environment through our
corporate activities
3. ‌We will ensure that each and every Zeon person isaware of CSR and acts accordingly

Each principle is further defined as follows.
First Principle• ‌We will comply with laws and regulations, firmly upholdthe values and ethics required of a corporate memberof society, and cause no distress to society• ‌We will undertake enterprise-wide environment andsafety initiatives to prevent accidents and provide asense of security to our employees as well as our local
communities• ‌We will thoroughly address quality and product liability
issues to avoid impairing the safety and security ofsociety

Second Principle• ‌We will contribute to the realization of sustainable
development and protect the global environment
through our core business• ‌We will encourage proactive action across the world,
refine innovative technology, and continually create new
products.
• ‌As an indispensable and valuable corporate citizen,
we will enhance our corporate value and meet the
expectations of society.
Third Principle• ‌We will establish Corporate Governance with CSR
management as a pillar• ‌All employees will act with thorough awareness of CSR
and meet the public’s expectations• ‌All employees will fulfill Zeon’s CSR with enthusiasm• ‌We will pursue environmental preservation as well as
safety and quality assurance through the participationof every individual and in every corporate activity.

CSR Code of Conduct
The CSR Code of Conduct specifies what kind ofactions we should be working actively to implement,from the perspective of meeting society’s expectations(the CSR Code of Conduct was revised in January 2018).
CSR Code of Conduct
https://www.zeon.co.jp/en/csr/concept/pdf/000257956.pdf

CSR REPORT 2021

5

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

CSR Management
Moving beyond ISO 26000 to promote SDGs-based sustainability
Up until FY 2020, the Zeon Group implemented CSR
initiatives in accordance with a CSR Implementation Plan
that was based on ISO 26000, the international CSR
standard. Starting from FY 2021, we are aiming to realize

ISO 26000 based
CSR Implementation Plan

our Vision for 2030 through SDGs-oriented initiatives
that are outlined in our new Medium-Term Business
Plan, and we will be formulating and implementing a new
Sustainability Promotion Plan.

Objectives outlined by
the new Medium-TermBusiness Plan＋

SDGs-based
Sustainability Promotion Plan

Setting the main SDGs-related targets
Zeon’s new Medium-Term Business Plan has identified
nine SDGs that are closely related to our businessactivities as SDGs that our company will focus on. We
aim to realize our Vision for 2030 through SDGs-oriented
initiatives.

Sustainability Management
In order to transform our business activities in such a
way that they are oriented toward achieving the targets
set in the new Medium-Term Business Plan and towardsustainability promotion, we undertook a large-scaleorganizational restructuring in April and July of 2021. For
example, we established the Carbon Neutral Endeavor
office, reporting directly to the President, to promote
the formulation and implementation of strategies
and concrete plans for realizing our goal of becoming
carbon neutral by 2050. We have also established a new
Incubation Center under the Research & Development
Center, as a dedicated organization for new productdevelopment and the incubation of new businesses.
In addition, our existing CSR Headquarters has
been repositioned as the Corporate Sustainability
Headquarters, to play a central role in sustainability
promotion and management, and the Legal Affairs andQuality Assurance departments, which were formerly
under the CSR Headquarters, have been moved to a
new Legal & Compliance division, thereby enhancing theobjectivity of each function. We have also set up a new
IR & SR office, with the aim of further expanding dialog
and communication with investors and shareholders.
As before, the CSR Conference, which is chaired by the
President, exercises general oversight over sustainability
promotion, and reports to the Board of Directors asnecessary.
Going forward, we will continue to explore ways
to make our organization and management systems
more effective, to live up to the expectations of today’s
constantly changing society.
Corporate Profile: Organizational Chart
https://www.zeon.co.jp/en/company/profile/CSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

The relationship between the new Medium-Term Business Plan and the SDGs that Zeon is focusing on
Vision for 2030
Living up tosocietal
expectations

Directions for 2030
(what we want to be)

Strategies

Key Policies (2021–22) and Related SDGs

Continuing to contributeto a sustainable society

1 Promote a transformation ofmonozukuri to realize a carbon
neutrality and circular economy

Formulate a master plan forachieving carbon neutrality
looking toward the year 2050

Providing products andservices indispensable
to society

2-1 “Polish up” existing
businesses

Strengthen COP

2-2 “Explore” new businesses7

9 12 13 1738

9 12 13Strengthen battery
materials

789Ensure the survivalof existing SBUs

3

8

9 12

Focus resourceson key areas

3

7

9 13

Net sales of new businesses:+60.0 billion yen(compared to FY 2019)5

8 10 12 17

I. Build a digital infrastructure
II. Reform corporate management
and business management
III. Create customer value

3

5

Employee engagement:
Ratio of foreign-nationaland female directors:

Build a digital
infrastructure to create
value for customers
Living up to
Take vigorous action with thethe aspirations of steps “Let’s try first,” “Let’s
employees
connect,” and “Let’s polish up”

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

Targets for 2030
To be set based on publishedguidelines including those of theJapan Chemical Industry Association

Provide a greater
variety of life choices8

9 10 17

Sales ratio of products that
contribute to the SDGs:

ROIC for existing businesses:

50%

9.0%

75%
30%

Timeline of CSR Initiatives
CSR Activities
1995: Joined the Japan Responsible Care Council and declared our commitment to Responsible Care
Established Zeon’s Responsible Care Policy
1996: Revised the group-wide safety management system and established the Plant Technology Audit System
1997: Established the Safety Philosophy
Held the first Zeon Safety Month and the All-Zeon Safety Conference (subsequently held each year in April)
Established the Code of Conduct (Zeon’s Seven Articles)
1998: Established the Responsible Care Policy
1999: Established the Risk Management Rules
2000: Published the first Responsible Care Activity Report (1999 edition)
2001: Established the Environmental Philosophy
2003: Amended the Risk Management Rules and renamed them as the Risk Management and Compliance Rules
Established Zeon’s Seven Articles Code of Conduct
2004: Established the Internal Reporting System
Published the Compliance Textbook I
2005: Published an English version of the Responsible Care Activity Report
Conducted third-party verification for the Responsible Care Activity Report
Published the Compliance Textbook II (Q&A Edition)
2006: Switched from publishing the Responsible Care Activity Report to publishing the CSR Report
2008: Published the Compliance Textbook I (Revised Edition)
2009: Signed the Responsible Care Global Charter
2010: Established the CSR Policy and CSR Code of Conduct
Published the Compliance Textbook (Q&A Edition)
Revised the CSR Implementation System and established a new System
Published the CSR Textbook
2011: Began using the CSR Matrix
2012: Started the CSR Core Projects (comprehensive Zeon social contributions package)
2013: Switched from publishing the CSR Report to publishing the Corporate Report
2017: Revised the CSR Matrix based on ISO 26000
	‌Along with publishing the Corporate Report, also published a PDF version of the CSR Report on the corporatewebsite2018: Revised the CSR Code of Conduct
2019: Became a signatory to the United Nations Global Compact
Established the Human Rights Policy
2020: Expressed its support for the TCFDCSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Progress Made in the CSR Implementation Plan as of FY 2020
CSR Matrix
Based on the CSR Matrix used since 2011, we have established our goals for 2020 in each area and have worked toaddress CSR issues as a group.
In 2017, we revised the CSR Matrix based on ISO 26000. We have defined our areas of activity in light of social
circumstances, and have incorporated related initiatives into our Medium-Term Business Plan. The progress made in
related measures as of FY 2020 is outlined below.
Starting from FY 2021, based on the new Medium-Term Business Plan, we have been looking at how we cancontribute to the United Nations’ Sustainable Development Goals (SDGs), evaluating new measures and KPIs, andincorporating CSR into our business activities.

1. Corporate Governance: Decision-making as an organization
Correlation with SDGs: Goal 16 (Peace, Justice and Strong Institutions) and Goal 17 (Partnerships for the Goals)

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets for theperiod from 2021 onwards

Decision-making with accountability and △1. ‌Continue implementing our CSR‌ Operations address corporate
framework, and periodically revise
transparency
governanceits operations based on society’s• Organizational decision-making is(details of results below)
expectations
conducted appropriately based on• ‌Zeon Corporation’s Basic Policy on Corporate
internal regulations
Governance (Japanese version only)• Business divisions carry out theirhttps://www.zeon.co.jp/csr/concept/
operations using the PDCA cycle based
pdf/200281514.pdf
on policies• ‌Corporate Governance Report (Japanese• The process of decision-making
version only)
takes into consideration social andhttps://www.zeon.co.jp/csr/concept/
environmental impacts
pdf/200325073.pdf
Ensuring corporate governance・Corporate governanceCorporate governance functions
effectively and reasonably
・Risk management
Established a global crisis management
structure・Business continuity
Independent business continuity
management (BCM) activities(establishing a BCM system, periodicallyrevising BCM through drills and othermeans, etc.) are conducted throughout
the Zeon Group, and have become
established and reinforced‌ Report corporate governance reports△(status of system for ensuring
appropriateness of business affairs)‌△ Regularly revise risks using the risk
table and evaluate risks across theZeon Group (Japan/global)‌△ Operate an internal reporting system■ Establish business continuity
management (BCM)‌△ Create and periodically revise various
business continuity plans (group-wide
BCP, division BCP, raw materials
procurement BCP, etc.)

1. ‌Improve internal control level at Zeon Group
companies

2. Evaluate the risk table and give
guidance for improvements at divisionsand Group companies, and horizontally
implement successful cases
3. Consider business risks broadly andmanage them in view of demands andsociety’s expectations. Promote actions
in consideration of the TCFD’s longterm view of climate change risks
4. Update the BCP together with revisingrisks

CSR REPORT 2021

8

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

2. Human Rights: Protect basic rights granted to all people
Correlation with SDGs: ‌Goal 1 (No Poverty), Goal 2 (Zero Hunger), Goal 3 (Good Health and Well-being), Goal 5(Gender Equality), and Goal 10 (Reduced Inequalities)

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets for theperiod from 2021 onwards

Sharing respect for human rights within ■ ‌Become signatory to the United
1. ‌Promote activities aligned with the Ten
Zeon Group and in the supply chain
Nations Global Compact
Principles of the UN Global Compact• ‌The section on respect for the Zeon
■ ‌Establish the Zeon Group Humanand the Zeon Group Human Rights
Group Human Rights Policy has been
Rights Policy
Policy throughout Zeon Group
shared with all Zeon Group companies‌△ Continue conducting CSR education
and Zeon Group business partners, andincluding holding CSR informational
compliance with the prohibitions on childsessions and confirming understanding
labor and forced labor are confirmed
through e-learning

3. Labor Practices
Based on Japanese law and international standards, fulfill not only our minimum obligations but also establish
better work environments and systems for organizations and employees
Correlation with SDGs: ‌Goal 3 (Good Health and Well-being), Goal 4 (Quality Education), Goal 5 (Gender Equality),
and Goal 8 (Decent Work and Economic Growth)Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Balancing individuals’ work and privatelife■ ‌Introduce flex-time systems■ ‌Advancement of measures to support
raising the next generation• ‌Balance is achieved between individuals’■ ‌Childcare support systems (shortened
work and personal life.
working hours, overtime restrictions• ‌Create workplace environments inand exemptions, sick care leave,
which people are motivated to performworking daycare hours, etc.)
by promoting diversity, implementing■ ‌Introducing a teleworking systemfair hiring and personnel systems, and‌Return-to-work program for employees△
encouraging dialogue
taking childcare and caregiving leave‌ P romoting women’s participation (including△
active hiring and promotion of women), active recruitment of mid-career hires, and active recruitment of non-Japanese employees‌Implementation of employment for△people with disabilities‌Support for employee skills and career△development‌△ Initiatives for harassment prevention‌MD Committee activities△

Future initiatives and targets for theperiod from 2021 onwards
1. ‌Further pursue dynamic work styles
2. ‌Create an environment that encourages
taking of child and family care leave
3. ‌Further expand the teleworking system
4. Promote diversity-oriented management•F‌ urther expand employment not tied togender, nationality, race, age, disability, orother attribute• ‌Appoint more women employees to higher
positions• ‌Initiatives to prevent harassment andimprove communication competence• ‌Advance employment of older persons

5. ‌Develop an educational system andexpanded curriculum

Results as of June 1, 2021
Percentage of employees with disabilities: 2.72%
Promise of feelings of reward, safety,
・Health management
and security at work
△ Promotion of health management• ‌Ensure labor hours management to• ‌Health management
prevent excessive work
Place priority on individuals’ physical• ‌Provide guidance on preventive measuresand mental well-being, and supportand stress checks for employees who are
improved healthat high risk of developing lifestyle diseases• ‌Disaster prevention• ‌Endeavor to protect employees fromAll worksites have earned public trust byinfection (with COVID-19 or influenza)
maintaining a safety record of zero incidents and accidents• ‌Safety education
・Disaster prevention
Every employee is aware of the‌△ Conduct emergency drills and otherimportance of following basic rules andinitiatives such as concluding disasterputting safety firstcooperation agreements‌△ Implement the Safety Management
Improvement Master Plan・Health management
1. ‌Further promotion of health andproductivity management (Enhancemental health education, implement
further health promotion initiatives)
・Disaster prevention
1. ‌Continue to implement four safety
activities conducted throughout Zeon
Group in the supply chain

CSR REPORT 2021

9

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets for theperiod from 2021 onwards‌ ully implement deterioration△F・Safety education
countermeasures and identify foolproof 1. ‌Continue to implement the safetymeasures, and horizontally implement
education and 3S’s conductedmeasures arising from cases of accidents
throughout Zeon Group in the supply
at other companies and plantschain‌ liminate safety incidents: Regularly△E
conduct plant safety evaluations and audits
・Safety education△ ‌Provide education to enhance accident
prevention awareness, including
education using accident case studies△ ‌Promote the 5S’s→3S’s
FY 2020 results‌ lant safety evaluations conducted 100%
●P
● ‌Implement RC audits conducted (once/
year or more for all 4 plants)‌ liminate safety incidents: 6 safety incidents●E● ‌Eliminate occupational accidents: 3
occupational accidents resulting in lostwork time● ‌Zero serious accidents without lostwork time● ‌Improve safety in logistics: 0 accidents
in logistics

4. Environment: The organization takes responsibility for the environment, and promotes preventive measures
Correlation with SDGs: ‌Goal 6 (Clean Water and Sanitation), Goal 7 (Affordable and Clean Energy), Goal 9 (Industry,Innovation and Infrastructure), Goal 12 (Responsible Consumption and Production), Goal 13(Climate Action), Goal 14 (Life Below Water), and Goal 15 (Life on Land)Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets for theperiod from 2021 onwards

Further improving how society sees us
by reducing our environmental impact
and promoting energy conservation‌ educe emissions of hazardous substances,△R
reduce impacts on atmospheric and water
environments, and conduct PRTR activities△ I‌ mprove energy conservation in Responsible
Care audits, the Safety Management
System, the Environment Management
System based on ISO 14001, and the Energy
Conservation Implementation Committee‌ evelop and launch products that contribute△D
to reducing environmental impacts andconserving energy (including S-SBR for fuelefficient tires, low-temperature fixing toners,
cleaning solvents and etching gases withzero ozone depletion potential, and binders
for lithium-ion rechargeable batteries)‌ reen procurement activities (check whether△G
substances contain banned substances andsubstances that are regulated by laws andregulations and the RoHS Directive, etc.)

1. ‌Implement activities group-wide to
reduce environmental load
2. ‌Conduct environmental management
using the multiple systems noted on
the left
3. ‌Research and development that
address environmental issues faced bysociety
4. ‌Examine the sustainability of resource
procurement including oil and water

FY 2020 results● ‌Zero environmental incidents● ‌Reducing environmental impacts• ‌Per-unit energy consumption: -8%
over the previous fiscal year
-37% compared with FY 1990
(annual average of -1.2%)• ‌Per-unit CO2 emissions: -12% overthe previous fiscal year
-49% compared with FY 1990 (annual
average of -1.6%)

CSR REPORT 2021

10

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Enterprise Blueprint for 2020
To meet the expectations of society
Climate change mitigation andadaptation

Details of current activities(■: Completed, △: Ongoing)‌Respond to the CDP and improve△
response to raise CDP evaluation

Future initiatives and targets for theperiod from 2021 onwards
1. Set environmental impact reduction
targets based on scenario analysis in
the TCFD response, and take actions torealize the targets

5. Fair Operating Practices: Ethical organizational conduct in interactions with other organizations
Correlation with SDGs: ‌Goal 10 (Reduced Inequalities), and Goal 16 (Peace, Justice and Strong Institutions)Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)△ ‌Enact and implement the Management
Rule of Insider Trading and Timely
Disclosure•‌Compliance awareness is established, omply with internal regulations including△Cvarious laws, regulations, agreements,
the Export Security Control Rules
and company rules are complied with,‌ ppropriately implement regulations to△Aand Zeon acts ethically and within thecomply with the Act on Prohibition ofbounds of social norms
Private Monopolization and Maintenance•‌Information is disclosed quickly andof Fair Trade (Antimonopoly Act)appropriately, and market value‌ ompliance with the Subcontract Act and△C
has increased (Including negative
the Act for Securing the Proper Operation
information regarding businessof Worker Dispatching Undertakings
conditions, CSR, risks, etc.)(prevention of falsified contracts)• ‌Appropriately manage confidential‌Build a system that prohibits bribes
information including trade secrets and △△C‌ onduct CSR education including holding
personal information
CSR informational sessions and legal•‌Select business partners based oncompliance inspections
the CSR Procurement Guidelines and△H‌ old lectures on legal and regulatory complianceperiodically confirm the Guidelines’
and conduct legal compliance inspections
status of implementation△ P‌ romptly disclose information (websites, briefings)• ‌Promoting understanding on the△O‌ peration of information management systems
handling of intellectual property rights‌Purchasing following the CSR△(including trade secrets)
Procurement Guidelines• ‌The system of monitoring othercompanies’ intellectual property rights to ■ ‌Institute regulations on intellectual
property rights and intellectual
prevent violations is functioning properly
property management‌Hold meetings on countermeasures for△other companies’ patents and patentrisk audits as appropriate
Ensuring compliance and ethicalcorporate activities

Future initiatives and targets for theperiod from 2021 onwards
compliance education
1. Ongoing
2. Support the establishment ofcompliance systems at Zeon Group
companies outside Japan (develop in
the supply chain)
3. Shift from compliance to sustainability
with focus on the SDGs
(promote understanding among
management and establish among
employees)
4. To enhance the corporate brand andvalue• ‌Improve the website (IR, CSR
information)• ‌Strengthen the information
communications structure (PR)• ‌Communicate information responsive
to ESG investing (including CDP)
5. Raise compliance awareness in the
supply chain by continuing to conduct
the CSR procurement questionnaire

6. Consumer Issues: Not causing harm to consumers, and not causing consumers to have harmful effects on society
Correlation with SDGs: ‌Goal 9 (Industry, Innovation and Infrastructure), and Goal 12 (Responsible Consumption and
Production)

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

First-rate global quality and cost
‌ Have a quality management system△competitivenessbased on ISO 9001
‌ Manage quality assurance risks
Protecting consumer’s health and safety △(product liability lawsuits, supply
obligations, product recalls, andcredibility loss due to rumors)△ Measure customer satisfaction (CS)to understand the current satisfactionlevel, set targets, and promote
improvements

Future initiatives and targets for theperiod from 2021 onwards
1. ‌To maintain and expand conditions
where Zeon products are chosen・‌Build systems to prevent defective
products from leaving Zeon, create
corporate quality trusted by customers,
and improve customer satisfaction・‌Develop initiatives for chemical
substance regulations‌ evelop Zeon’s quality management
・Dsystem at Zeon Group companies outside
Japan and at outsourcing partners

CSR REPORT 2021

11

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

7. Community Involvement and Community Development
Involvement in and contribution to the community in various forms, from dialogue with local residents toimprovement of education and culture in the community and local employment creation
Correlation with SDGs: ‌Goal 4 (Quality Education), Goal 9 (Industry, Innovation and Infrastructure), Goal 11(Sustainable Cities and Communities), and Goal 17 (Partnerships for the Goals)

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets for theperiod from 2021 onwards

Active promotion of volunteer activities‌ Volunteer tour supporting△
reconstruction of the Tohoku region‌ Upgrade and enhance the system△for promoting volunteer activities(Volunteer leave system)‌Introduce volunteer activities and△promote and support participationin them (volunteering to support
reconstruction from earthquakes, etc.)‌Donations and charity activities (Japan△
Platform, Red Cross, etc.)>Temporarily suspended in FY 2020 due
to the impact of the COVID-19 pandemic

1. ‌Raise employee awareness for social
contributions• ‌Conduct CSR education including CSR
informational sessions• ‌Establish a social contribution policy forthe entire Zeon Group (e.g., on water)
2. ‌Create a system to support volunteering(volunteer registration system, etc.)
3. ‌Find opportunities for social
contributions from exchanges withlocal councils of social welfare,nongovernmental organizations, andnonprofit organizations

Building positive relations through‌Develop CSR Core Projects (social△
activities to foster coexistence with local
contribution activities by Group ascommunities
a whole, among locations, and at
individual worksites)‌ Maintain good community relations△
and have community exchanges• ‌Sponsor and participate in community
festivals and events including summer
festivals at plants• ‌Community cleanup activities• ‌Plant tours (receive plant visitors,
internships)

1. Develop the CSR Core Projects basedon a defined Zeon Group activity policy
Review social contribution activities(Whether to revise the recipients or thetargets, and in the case of the targets,revise from the viewpoint of contributing
to the 17 SDGs)
2. Maintain and expand exchanges withlocal communities
3. Through dialogue with stakeholders
including local communities, identify
expectations from society, the current
level of meeting those expectations,and set targets

Technological development and accessto technologies• ‌Explore the needs of society andcultivate the seeds to meet these needs
based on unique technologies andunparalleled products to create new
business and make contributions tosociety

1. Continue reinforcing and exploration
efforts in the Research andDevelopment Division and businessdivisions

CSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Corporate GovernanceCorporate Governance
Risk Management

P. 12
P. 14

Corporate Governance
Basic Policy on Corporate GovernanceZeon Corporation aims to increase profits and enhance
corporate value on an ongoing basis while respecting andbalancing the various interests of its shareholders andother diverse stakeholders. To this end, we are continuing
efforts to establish a system that enables efficientand sound corporate management through corporate
governance.
Putting in place a corporate governance systemallows us to clarify the functions and roles of eachorganizational entity within the company and to carryout rapid decision-making and execution. We are also
improving corporate transparency through appropriatemonitoring and disclosure of business activities and theireffects.
Basic Policy on Corporate Governance (Japanese version only)
https://www.zeon.co.jp/csr/concept/pdf/200281514.pdf
Corporate Governance Report (Japanese version only)
https://www.zeon.co.jp/csr/concept/pdf/200325073.pdf

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

Board of Directors
The Board of Directors meets, in principle, every
month with Audit & Supervisory members in attendance
to ensure compliance with applicable laws and the
Articles of Incorporation in the execution of business.
In addition to its statutory duties, the role of the Boardof Directors is to make important decisions about basic
management policy, strategy, and other aspects ofbusiness execution. Currently, the Board of Directors
consists of six directors, including three outside directors.

Executive Committee
The Executive Committee, in accordance with the
Executive Committee Rules, comprises the President andexecutive officers ranked senior corporate officer andabove, meets twice a month in principle to examine andmake decisions on important business matters after due
deliberation involving consultation with attending fulltime Audit & Supervisory Board members. Importantbusiness matters stipulated in the Board of Director
Rules are examined and decided by the Board of
Directors.
Audit & Supervisory Board
The Audit & Supervisory Board comprises fivemembers, including three external members. The Board
reports, discusses, and adopts resolutions on importantbusiness matters. In accordance with the auditing
guidelines established by the Audit & Supervisory Board,
each member audits directors’ execution of their duties
through various means, such as attending Board of
Directors meetings and monitoring business operations,
including at subsidiaries’ operations.
Director and Officer Nomination and Compensation
Committee
The Director and Officer Nomination andCompensation Committee is placed under the Boardof Directors as an advisory organ for the purpose ofstrengthening the objectivity and transparency of theBoard of Directors functions related to nominating
directors and officers and deciding their compensation.
The committee is composed of three to five members, ofwhich more than half are independent outside directors.

CSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Corporate Governance System

General Meeting of Shareholders(Appointments/(Appointments/
Collaboration dismissals)dismissals)(assistance)

Decisions/Supervision(appointments/dismissals)
Auditing

Audit & Supervisory Board

Decisions/Supervision(selections/dismissals)

Collaboration

Executive Committee
Department ofInternal Auditing

Auditing(Dismissals)
Collaboration

Financial Auditors

Auditing Personnel

Financial
AuditsBusiness Execution &Internal Controls System

Representative Director

Reporting

CSR Conference

Internal audits

CSR
Basic Policy
Committee

Risk Management Committee

Reporting(external)

Compliance Committee

External
lawyers

Information Management Committee
Environmental & Safety Affairs Committee
Quality Assurance Committee
PL Committee

Reporting (internal)

RequireDirector andadviceOfficer Nomination and
Board of Directors
Compensation Committee Suggestions

Public Relations Committee
Business divisions, indirect departments, laboratories, and plants
Control/monitoring

Subsidiaries and affiliates

Reporting(internal)

Reporting(external)

Reporting(external)

CSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Risk Management
Risk Management Framework

Internal Reporting System

The Risk Management Committee leads Zeon’s risk
management. Activities to prevent law violations and tocomply with laws and regulations are conducted under
the Compliance Committee (For more information
about the framework, see Compliance. [→P. 41]) The
Information Management Committee implements
appropriate management of information, from the time
when information is obtained until the time when it isdeleted.

Zeon established its internal reporting system toquickly collect information on potential risks andfacilitate their resolution. Per the rules on reporting riskrelated information, reports can be made not only to
one’s supervisor or the Risk Management Committee
directly, but also by calling the Compliance Hotline, whichconnects the caller to an external lawyer. No person
who reports* a matter of concern will suffer any adverse
consequences as a result of making a report.

Risk Management and Compliance System

Internal reports: ‌Cumulative total of 18 incidents overthe past 10 years (FY 2011–FY 2020)

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

Compliance Committee

Prevention of legal violations
Education and training in compliance with laws
Antitrust Law Regulatory Subcommittee

The Risk Management Committee has appropriately
dealt with each of these incidents by conducting an
investigation into the reported details and instructing
internal organizations to institute measures accordingly.
*Zeon employees (including seconded employees), temporary employees,
and executives of contractors that work at our worksites have the right toreport matters of concern.

Export Security Control Subcommittee
Corporate Governance Subcommittee

Information Management Committee

Appropriate management of information

Risk Management Committee FY 2020 Results• ‌Handle incidents as they occur and take steps toprevent their recurrence• ‌Enhance risk and crisis control measures
Example: Revising the content of business continuity
plans (BCPs) based around the scenario of a major
earthquake

Internal Reporting Flowchart
Internal
Supervisor

External
Risk Management
Committee
Investigating the facts andtaking countermeasures

ReportingpersonDiscovering risks/
Discovering complianceviolations

Outside lawyer
contact
Receiving internal reports/
Recording facts/
Communicating the results

Compliance Hotline

Report or notification
Feedback

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

CSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

P. 15
P. 17
P. 18
P. 20
P. 21
P. 22
P. 23
P. 25
P. 26
P. 27

Environmental Data for Zeon Worksites and Group Companies ▶▶▶ http://www.zeon.co.jp/csr_e/report.html

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

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

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

Safety Philosophy (Established March 1997)
Environmental Philosophy (Established August 2001)
1. ‌Environmental protection is a mission of a socially
responsible organization
2. Our basic belief is that environmental protection canbe achieved with innovative technology
3. Environmental protection will be achieved when all
employees work together with a sense of mission to
overcome challenges

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

CSR REPORT 2021

16

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Responsible Care Policy

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

CSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Environmental and Safety Management
We have built Environmental and Safety Management Systems based on the Responsible Care philosophy, and our plants
have obtained ISO 14001 certification. Our four main plants completed the transition to the 2015 version of ISO 14001 after the
standard was revised in September 2015. Our goal is to ensure the safety of all persons at our worksites and plants.

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

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

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

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

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

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

AuditsAudits assess whether our management systems arefunctioning normally.
Worksite Responsible Care audits cover environmental
and safety matters and are headed by the Environmental
and Safety Affairs Department General Manager. These
audits have two parts: the Responsible Care Audit andthe Responsible Care Dialogue.
Responsible Care Audits• ‌Audits using specialized indicators to monitor the
progress of Responsible Care activities.
• ‌These audits also include auditing conducted forworksites that have Certified Completion and Process
Safety Inspectors for High-Pressure gas.
• ‌The progress of improvements in areas where audits
uncovered such needs is verified using the Audit
Findings Improvement Plan and Progress Report.
Responsible Care Dialogues• ‌A venue for worksite members and management toconsider, discuss, and resolve worksite environmental
and safety issues that are difficult to identify throughaudits.
Responsible Care Audits at Group Companies
Group Company Responsible Care Audits cover Group
company Responsible Care activities and are headedby the Environmental and Safety Affairs Department
General Manager. The progress of improvements in areas
where audits uncovered such needs is verified using the
Audit Findings Improvement Plan and Progress Report.
Internal Plant Audits
Internal plant audits are conducts at plants.
• ‌Plant manager inspections: Inspections of the progressof Responsible Care implementation conducted by theplant manager (at least once/year)• ‌Environmental Management System (EMS) internal
auditsCSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Environmental and Safety Education
Systematic safety education
Environmental and safety education programs are
implemented in accordance with the annual plan set byeach worksite.
Group-wide environmental and safety education
supervised by the Environmental & Safety Affairs
Department is combined with worksite-specificenvironmental and safety education tailored to thespecific needs of each individual worksite.
Through these educational activities, we strive toeliminate safety incidents and occupational accidents,
minimize damage should an incident or accident occur,and maintain Zeon’s status as an enterprise trusted by
local communities.

Education using accident case studies

Manager and supervisor education
Training for newly-appointed section managers
This is implemented for newly-appointed
manufacturing section managers, facilities management
section managers, and environmental and safety section
managers.
The content of the training includes safety activities
based on Zeon’s safety system, safety concerns andresponsibilities that safety managers should be familiar
with, environmental and safety related laws andenvironmental and safety related company regulations,an overview of the fundamental four laws , and the Safety
Management System, etc.
Safety education provided by former plant managers
Education using accident case studies
Held since FY 2003, this education program aims toprevent the lessons of past accidents from fading frommemory, to apply these lessons in work operations, toraise workers’ awareness of safety, and to increase their
sensitivity to potential risks.
Former plant managers give presentations to all plant
employees. They cover specific examples of accidents at
Zeon and other companies to communicate the grimconsequences of such accidents, and provide instruction
on how to analyze risk factors as well as countermeasures
to prevent recurrences.
In FY 2020, instructors provided education byintroducing accident case studies from other companies
and directly communicating their own views toparticipants, such as the lessons to be drawn from each
incident, while applying the cases to work processes at
Zeon.

Education using accident case studies

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

CSR REPORT 2021

19

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

Display in the Safety Workshop showing how to use scaffolding

Adoption of hands-on safety education
The hands-on safety education program thatwas launched in FY 2014 at the Kawasaki Plant was
expanded in FY 2015 to include the Tokuyama Plant,
the Mizushima Plant and the Takaoka Plant, providing
education for research facility staff, the staff of partnercompanies that perform work inside Zeon facilities on along-term basis, and the employees of neighboring Zeon
Group companies.
The hands-on safety education provided in FY 2020
covered accidents in which employees are caught ortrapped by machinery, electrostatic explosions andburns, shocks from residual pressure in couplers,
accidents involving objects falling, and accidents
involving cutting.
In the future, we will continue to implement this typeof education systematically, including repeat education.

The hands-on safety education covering the dangers of getting caught in arollerCSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Overview of Environmental Impacts
We procure raw materials for chemical substances, and consume energy and water resources in the production andsales of our materials and chemical substance products. While emitting substances that impact water and atmosphericenvironments is unavoidable in product manufacturing, we are implementing an ongoing cycle of improvements tominimize these emissions.
Overview of Environmental Impacts (FY 2020)

INPUT
Energy220,000 kL (crude oil equivalent)
Handled amount of substances
subject to the PRTR Act
817,000 tons
Water resources
17,905,000 m3

OUTPUT
Head Office
Takaoka Plant
Kawasaki Plant
Tokuyama Plant
Mizushima Plant
R&D Center

Products
1,655,000 tons
Atmospheric emissions
Substances subject
to the PRTR Act
23 tonsCO2454,000 tons
SOx
579 tons
NOx
258 tons
Water discharges
Total wastewater
discharge
15,433,000 m3
COD
Total nitrogen
Total phosphorus

121 tons
133 tons
2.5 tons

Industrial waste
Final landfill disposal
0.1 tons
Recycled materials 16,362 tons

CSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Economic Indicators of Environmental Performance(Environmental Accounting)
We began introducing environmental accounting into our operations in FY 2000 in accordance with the Guidelines for
Introducing an Environmental Accounting System (Ver. 2000) published by Japan's Ministry of the Environment (MOE),
and have released environmental accounting statements since the 2001 edition of the Responsible Care Activity Report.
This CSR report presents key data from our environmental accounting statements in FY 2018 as recommended in theEnvironmental Accounting Guidelines 2005 (MOE), Environmental Accounting Guidelines for Chemical Companies(JCIA, 2003), and Environmental Conservation Cost Categories 2003 (MOE).
Scope: Zeon Corporation in Japan (Zeon Head Office, Takaoka Plant, Kawasaki Plant, Tokuyama Plant, Mizushima Plant, R&D Center);
Period: April 1, 2020 to March 31, 2021

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

FY 2020 (million JPY)
Investment
amountExpense

463

2,531

• Pollution prevention costs

113

1,676

• Global environmental protection costs

350

341

• Resource recycling costs

0514(2) Upstream and downstream costs00(3) Management costs

38

151

(4) R&D costs

38

1,913

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

Economic Effects Resulting from Environmental
Conservation Measures
Effects

Unit: million JPY

Cost reductions from energy savings

836

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

2,873

Total

3,709

Breakdown(5) Social activities costs

049(6) ‌Environmental damage
response costs

0

73

539

4,717

Total

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

FY 2020
results

Compared
to FY 2019

SOx emissions (tons)

579

NOx emissions (tons)

258

-195
-12

COD emissions (tons)

121

-20

CO2 emissions (tons)

454,023-45,199

Industrial waste sent to landfills (tons)

0.1

-3.1

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

23.4

0.1

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

136

Safety related

3,821

Total

3,957

CSR REPORT 2021

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Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Climate Change
Initiatives to Reduce Greenhouse Gas (CO2) Emissions
By FY 2020, we aim to reduce CO2 emissions fromfuels defined in Japan’s Act on the Rational Use ofEnergy (“Energy Conservation Act”) to 80% of FY
1990 CO2 emissions levels. We added CO2 emissions
reduction outcomes to the evaluation parameters of ZΣ*in FY 2010, and are working to reduce CO2 emissions
group-wide.
In FY 2020, annual CO2 emissions totaled
approximately 454,000 tons, which achieved our target.
*ZΣ:
Initiatives to improve our corporate soundness that require the full
mobilization of Zeon Group capabilities. These initiatives used to be called“ZΣ Activities,” but after evolving and becoming established, they are now
simply referred to as “ZΣ.”

Initiatives to Conserve Energy
In FY 2020, we consumed energy equivalent toburning approximately 220,000 kiloliters of crude oil, or
66% of our FY 1990 baseline. We plan to improve our
per-unit energy consumptions indicator* by an averageof 1% per year going forward.
In FY 2009, we achieved the JCIA target (for FY
2008–2012) of per-unit energy consumptions indicatorof 80% of the FY 1990 baseline, and have maintained
this level. Since FY 2010, we have been implementing
a plan to improve our average annual per-unit energy
consumptions by 1% per year.
‌Per-unit energy consumptions indicator:*
Guideline for making energy-efficiency comparisons. Here, energyefficiency comparisons use FY 1990 as the baseline. (FY 1990=100)

Change in CO2 Emissions

Energy Consumption and Per-unit Consumptions Indicator

Emissions(1,000 tons)

Usage(1,000 kL)

700

300

637
577

600

545

500
400

499

250
454

110
248
228

Target line (80% of the FY 1990 value = 509,000 tons)

2019

2020

FY

0

68

64

50

100
2018

100

220

Target (80% of FY 1990)

100

2017

226

90

150

200

1990

211

200

300

0

Per-unit

80
70

63

60

59

1990

2017

2018

Energy consumption(crude oil equivalent, 1,000 kL)

2019

2020

FY

50

Per-unit energy consumptions
indicator (FY 1990=100)

CSR REPORT 2021

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Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Chemical Substances Management
PRTR Initiatives Chemical Substances

Atmospheric Emission Reductions of Hazardous

We are implementing group-wide initiatives to reducerelease and transfer of substances subject to Japan’s
PRTR Act.

We are systematically reducing emissions of butadiene
and acrylonitrile, which are among the substances
requiring priority action under the Japan’s Air Pollution
Control Act.

Release and Transfer Volumes of Substances Subject to
the PRTR Act (FY 2020)

Butadiene Emissions

Total release
volume(23.4 tons)

Amount released
into atmosphere:(23.4tons)
Amount released
into water:(0)

Release andTransfer Volumes
Total(467.6 tons)

Amount released
into soil:(0)

Total transfer
volume(444.2 tons)

Atmospheric emissions(tons)

5.0
4.0

3.2

1.0

Amount to landfill:
(0)

0

2016

2017

40

15

25.2

23.7

23.3

2.7

2018

2019

2020

3.0

3.1

2019

2020

FY

Acrylonitrile Emissions
Atmospheric emissions(tons)

27.4

3.0

2.0

Amount of release(tons)

30

3.4

3.0

Transfer volume:(444.2 tons)

Release of Substances Subject to the PRTR Act

3.6

10

23.4

20
5

10
0

2016

2017

2018

2019

2020

FY

0

4.1

4.0

4.0

2016

2017

2018

FY

CSR REPORT 2021

24

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Detailed Release and Transfer Volumes of Substances Subject to the PRTR Act (FY 2020, 4 plants + R&D Center)
Government
designatedno.

Substance2

Acrylamide

3Ethyl acrylate

4Handledamount(tons)

Released into Released into
Total
atmospherewater
release volume(tons)(tons)(tons)

Transfer
volume(tons)

29.9

0.0

0.0

0.0

0.0

1,686.9

5.4

0.0

5.4

0.0

Acrylic acid and its water-soluble salts

34.7

0.0

0.0

0.0

0.0

6

2-Hydroxyethyl acrylate

20.3

0.0

0.0

0.0

0.0

7

n-Butyl acrylate

3,372.5

1.7

0.0

1.7

14.1

8

Methyl acrylate

10.6

0.3

0.0

0.3

0.0

9

Acrylonitrile

24,319.2

3.1

0.0

3.1

0.1

13

Acetonitrile

3.3

0.0

0.0

0.0

1.5

20

2-Aminoethanol (monoethanolamine)

7.6

1.4

0.0

1.4

0.0

29

1-Allyloxy-2,3-epoxypropane

25.3

0.0

0.0

0.0

3.1

30

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

1,256.5

0.0

0.0

0.0

0.0

36

Isoprene

176,196.2

1.4

0.0

1.4

0.1

53

Ethylbenzene

88.8

0.0

0.0

0.0

0.0

56

Ethylene oxide

1,092.5

0.0

0.0

0.0

0.0

60

Ethylenediamine tetraacetic acid

14.7

0.0

0.0

0.0

0.0

68

1,2-Epoxypropane

41.9

0.0

0.0

0.0

0.0

80

Xylene2,890.2

0.2

0.0

0.2

1.6

125

Chloroform

0.1

0.0

0.0

0.0

0.1

134

Vinyl acetate190

Dicyclopentadiene

202

201.9

0.1

0.0

0.1

0.0

156,005.0

0.2

0.0

0.2

0.0

Divinylbenzene

5.2

0.0

0.0

0.0

0.0

203

Diphenylamine

3.8

0.0

0.0

0.0

0.0

207

2,6-Di-tert-butyl-4-cresol

346.4

3.1

0.0

3.1

0.0

220

Water-soluble salts of dimethyldithiocarbamic acid

20.3

0.0

0.0

0.0

1.2

230

N-(1,3-Dimethylbutyl)-N’-phenyl-p–phenylenediamine

44.3

0.0

0.0

0.0

0.0

232

N,N-dimethylformamide

257.5

0.0

0.0

0.0

1.2

240

Styrene39,103.1

0.7

0.0

0.7

20.4

259

Tetraethylthiuram disulfide

13.0

0.0

0.0

0.0

0.0

274

Tert-dodecanethiol

720.2

0.0

0.0

0.0

0.1

277

Triethylamine

32.5

0.0

0.0

0.0

0.0

296

1,2,4-Trimethylbenzene

234.8

0.0

0.0

0.0

0.0

297

1,3,5-Trimethylbenzene

234.8

0.0

0.0

0.0

0.0

300

Toluene4,404.2

0.0

0.0

0.0

178.5

302

Naphthalene

295.2

0.0

0.0

0.0

0.0

308

Nickel

95.4

0.1

0.0

0.1

85.9

309

Nickel compounds

131.0

0.0

0.0

0.0

131.0

333

Hydrazine

0.3

0.0

0.0

0.0

0.0

338

2-Vinylpyridine

59.4

0.0

0.0

0.0

1.1

349

Phenol

64.9

0.0

0.0

0.0

0.0

351

1,3-Butadiene396,972.5

2.7

0.0

2.7

0.0

392

n-Hexane

582.4

2.1

0.0

2.1

3.1

395

Water-soluble salts of peroxodisulfuric acid

130.3

0.0

0.0

0.0

0.0

400

Benzene3,556.2

0.0

0.0

0.0

0.0

407

Polyoxyethylene alkyl ether

102.2

0.0

0.0

0.0

0.0

408

Polyoxyethylene octylphenyl ether

2.1

0.0

0.0

0.0

0.0

410

Polyoxyethylene nonylphenyl ether

24.1

0.0

0.0

0.0

0.0

414

Maleic anhydride

123.7

0.8

0.0

0.8

0.0

415

Methacrylic acid

2,065.6

0.0

0.0

0.0

0.0

417

2,3-Epoxypropyl methacrylate

9.2

0.0

0.0

0.0

0.0

420

Methyl methacrylate

277.6

0.0

0.0

0.0

1.0

436

α-Methylstyrene

204.6

0.0

0.0

0.0

0.0

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

CSR REPORT 2021

25

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

SOx Emissions

NOx Emissions

Amount of release(tons)

Amount of release(tons)

1,000

400
796

800
600

324

774

300

689

579

605

274

298

270

258

2019

2020

200
400
100

200
0

2016

2017

2018

2019

2020

FY

Total Wastewater Discharge

0

2016

Amount of release(tons)

20

150
16

16

2018

FY

COD Discharge

Amount of release(million m3)

15

2017

15

15

137
119

15

141
124

121

100

10
50

5
0

2016

2017

2018

2019

2020

FY

Total Phosphorus Discharge

2017

2018

2019

160

157

2020

FY

Amount of release(tons)

3.0

200

2.5

2.3
1.7

1.7

2.5
150

1.8

1.5

153

133

124

100

1.0

50

0.5
0

2016

Total Nitrogen Discharge

Amount of release(tons)

2.0

0

2016

2017

2018

2019

2020

FY

0

2016

2017

2018

2019

2020

FY

CSR REPORT 2021

26

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

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

8
6
4
2
0

3.2
1.7

1.9

0.1

0.0

2016

2017

2018

2019

2020

FY

Chemical Product Safety Information
We collect and provide safety information on our chemical products. We also conduct hazard assessments. For quality
assurance, see Consumer Issues (→P. 46).

Information for the Proper Handling of Chemical Products

Participation in Voluntary Chemical Industry Initiatives

We produce Safety Data Sheets (SDS) for all Zeon
products. SDS provide information including GHS*1
classification results, product hazards, and cautions forhandling, etc.
For some of our products, we disclose safety-related
information in the form of safety abstracts, which are
made available on the GPS/JIPS*2 platform.

Zeon provides financial support for research activities
by the LRI*3 involving chemical substance hazard
reviews, safety evaluations, and environmental impact
surveys. As a member of the Far East Section of the
IISRP*4, Zeon also participates in investigations ofenvironmental issues, reviews of countermeasures, andactivities to implement them.

*1 GHS
Globally Harmonized System of Classification and Labelling of Chemicals*3 LRI
Long-range Research Initiative: Activities to provide long-term support
for research on the impact of chemical substances on health and theenvironment. A program under the auspices of the International Councilof Chemical Associations (ICCA) that is carried out with funding from LRI
member companies and in cooperation with the chemical industries ofJapan, the United States and Europe (specifically, the Japan Chemical
Industry Association, American Chemistry Council and European Chemical
Industry Council).

*2 GPS/JIPS
Global Product Strategy / Japan Initiative of Product Stewardship. GPS is a
new voluntary initiative related to the management of chemicals, promotedby the International Council of Chemical Associations (ICCA). In Japan, theJapan Chemical Industry Association (JCIA) promotes GPS under the IPS andencourages member companies to participate.

*4 IISRP
International Institute of Synthetic Rubber Producers

CSR REPORT 2021

27

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

Compliance with the revised Energy Conservation Act
As a specified consigner under the revised Energy
Conservation Act, we are working to rationalize the useof energy together with partner companies involved in
product and raw materials transportation. To date, wehave studied and implemented improvements in loading
efficiency, modal shift to rail and ship transportation, andtruck and ship fuel efficiency.

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

Lightweight metal box pallet

Folded pallets after use

CSR REPORT 2021

28

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Labor Practices
Basic Approach and Initiatives
Employment and Diversity
HR Development
Human Resources System
Creating Working Environments
That Protect Health
Occupational Safety
Safety and Accident Prevention

P. 28
P. 29
P. 31
P. 33
P. 35
P. 38
P. 39

Basic Approach and Initiatives
Aiming to ensure that Zeon is “A company of which each and every one of its employees can be proud”
In our CSR Code of Conduct, we stipulate respect for human rights and prohibit discrimination. We strive to be acompany that understands and accepts diverse values, and where no person is discriminated against based on gender,
age, nationality, or other attribute.
Based on this policy, we aim to enable every employee* to work with pride by cultivating employees able tocontinually evolve by pursuing high goals based on independent thinking, building a human resource system in which
employees take on challenges without fear of failure and gain a sense of accomplishment, and creating a comfortableworkplace environment that values dialogue.
*At Zeon, “employees” refers to all workers including full-time and part-time workers.

Zeon—A company of which each andevery one of its employees can be proud
Encourage employees tocontinually evolve by
pursuing high goals
based on independent
thinking

Human resource system inwhich employees take onchallenges without fear of
failure and gain a sense ofaccomplishment

A comfortableworking environmentthat values dialogue

Promoting diversity
Respect for human rights, prohibition of discrimination

CSR REPORT 2021

29

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Employment and Diversity
Zeon Group respects diversity, and strives to be a company in which everyone in our diverse team of employees isable to fully demonstrate their capacities. Our employees today have a wide range of backgrounds and play an activerole regardless of gender, age or nationality.

Basic Information

Re-employment of employees who havereached mandatory retirement age

Basic Information on Zeon Corporation Employees(non-consolidated, does not include non-permanent
employees)
Men
No. of employees

Women

Total

1,429

213

1,642

52

14

66

1
No. of new Recent graduates*
hires
Mid-career hires*2

Average years of service

42

4

46

17.2

13.6

16.7

As of March 31, 2021 (excluding those who left the company as of the end of
March)
Includes 23 non-Japanese employees*1 Employees that joined the company in April 2020*2 ‌Mid-career hires that joined the company between April 2020 and March
2021

Hiring
The Zeon Group hired 88 recent graduates of highschools, technical colleges and universities in FY 2021.

Employment of people with disabilities
We will continue to expand employment for people
with disabilities while exercising the utmost care forsafety, particularly at our laboratories and plants, whichhandle hazardous materials and use rotating and otherindustrial equipment to manufacture chemicals.
Zeon Farm, a facility for the employment of people
with disabilities, opened in December 2020 as a new
initiative for creating employment for the disabled.
Percentage of Employees with Disabilities
（%）

3

2.5
2

2.72
2.20

2.07

2.29
2.01
(Legal requirement: 2.2%)

1.5
1
0.5
0

June 2016 June 2017 June 2018 June 2019 June 2020

We have adopted a re-employment system, called
the Master Employee System, in which we confirm
with employees their desire to continue working before
reaching mandatory retirement age, and allow all
employees who wish to continue working to do so, basedon the Act on Stabilization of Employment of Elderly
Persons.

Strengthening Engagement
With the aim of realizing respect for diversity andbecoming a company in which diverse human talent
can fully exercise their individual capabilities, startingfrom FY 2021 we are using engagement surveys tocompile quantitative data and visualize key issues,
with departmental managers playing a central role inenhancing efforts in this area.
One of the bottom-up activities that we are
implementing is the MD Committee. Launched in
January 2009 with an all-female membership, for
its 13th year the MD Committee has overhauled its
activity objectives. In addition to the long-standing
committee slogan, “Two Cs (CSR and Cost reduction)
and Two MDs (muda dori and mudo dukuri),” which has
been maintained since the committee’s first year ofexistence, the MD Committee has now adopted a new
slogan: “Working to address the SDGs through our own
work, and strengthening engagement.” In FY 2021 (thecommittee’s 13th year), the 17 committee members—
chosen from among employees who responded to acall for candidates, and embodying diversity in termsof gender, age, the enterprise to which they belong,and the location where they work—are putting forward
recommendations with regard to operational efficiency,
health, organizational culture, and contributing to society,while maintaining an awareness of the importance ofrealizing workstyles that benefit both employees and thecompany, and of taking into account both the optimalsituation for the Zeon Group and the impact on society.

CSR REPORT 2021

30

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Advancement of women
We have established targets to increase the numberof female employees and female managers as part ofour General Employer Action Plan based on the Act on
Promotion of Women’s Participation and Advancement in
the Workplace.
We position the advancement of women in theworkplace as the first step in promoting diversity at
Zeon. As such, we are developing a range of measures
to enable women to continue working and advance theircareers, including holding workshops and expanding the
adoption of systems that offer flexible working styles.

Zeon Corporation’s General Employer Action Plan (based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace)
We have established the following action plan to create employment conditions that allow women to continue working
and be promoted to managerial positions.
1. Plan implementation period April 1, 2021 to March 31, 2026
2. Zeon Corporation’s issue We want to increase the number of female employees.
3. Goals and initiatives, and implementation time-frame
Target 1:	Increasing the percentage of new recruits (specifically, new employees who have just finisheduniversity or graduate school) who are women to at least 50% for administrative positions and at
least 30% for technical positions
		Starting in FY 2021, we will be expanding the content presented on the recruitment section of ourcorporate website that relates to women’s workstyles and women’s participation, and we will be holding
related corporate presentations.
Target 2: Raising the percentage of female managers to at least 6%
		Starting in FY 2021, we will be implementing manager cultivation training for employees who are
candidates for management positions, and we will be expanding and continuing the support that we
provide for self-development, including career development awareness raising.

CSR REPORT 2021

31

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

HR Development
Encourage employees to continually evolve by
pursuing high goals based on independent thinking

HR development at Zeon
Performancebased reward

Basic Philosophy on Human Resources

The worker
I want to be(higher goals)

The worker
I want to be

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

Education &training

Evaluation

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

Education &training

Actions &results

Education and Training Framework
Education and training at Zeon is broadly divided
into core and specialized programs. The core program isfor all employees, and focuses primarily on developing
awareness of Zeon’s management philosophy, building
a cooperation-oriented attitude, and acquiring sharedknowledge. We also provide specialized education
to develop the work competencies needed in specificoccupations company ranks, as well as on-the-job
training conducted at worksites.

Education & Training System
Enforcement ofZeon CSR Policy
Rank

Strategyplanning ability

Organizationaltransformation

Goal setting
ability

Supporting teammember growth

Goal achieving
ability

Problem
identification
ability

Education for general
Selectedprofessional abilities,
dispatchprofessional abilities, andeducation transferring technical knowledge

Selfimprovement
support
Online educationalcourses
Support for obtaining
qualifications
TOEIC

D&I promotion
1 on 1
Career training
Harassment
prevention training,
etc.

Other

ZΣ basics

Monozukuri

Problemsolving ability

Enhancement ofprofessional skills

R&D / Sales / Administration, etc.
Environmental and safety affairs / Quality /Intellectual property / Manufacturing

Newlyrecruitedemployees

Rank-based
education

Business school dispatch
MBA Dispatch / Language study /Overseas study

Leaders

Positionbased
education

Personnel evaluation ability

Deputymanagers

CSR / Compliance / Information management

Managers

Basiceducation

Improvement of management skills

DX education, etc.

CSR REPORT 2021

32

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Zeon’s Ippeki Training Facility
We opened the Ippeki Training Facility in 1981 tocreate a venue that allows employees to concentrateon their education and training, so as to improvetheir qualifications and skills. Employees come to thetraining site from our worksites throughout Japanfor intensive education and training, and also form
personal relationships over the course of staying at thesite together with the instructors and other training
participants.

Occupation-based Specialized EducationManufacturing Duties (Production Operators)
We established the Monozukuri (Product
Manufacturing) Training Center in 2009 as an
educational facility for all manufacturing operatives;its goal is to develop human resources to support
production innovations in pursuit of ensuring safe andreliable production activities. To cultivate operatives who
understand and follow the rules and make improvementson their own, the Center has a simulated plant wheretrainees practice basic operations and basic processes in
addition to acquiring foundational knowledge.
New employees take the beginner-level training
program during their first to third years of employment.
During the program, they stay in the company dormitory
to foster friendships and build solidarity with theircoworkers while keeping a regular schedule. The
curriculum at the Monozukuri Training Center includes
both a basic program, consisting of classroom lectures

and tests, and a training program at our training plant.
The training at the simulated plant teaches trainees
how to operate, monitor, and stop machinery. The
training sessions are repeated until trainees become
well acquainted with basic operations (identifying andpointing out items to be checked, reporting, maintaining
open communication, consulting supervisors, anddetecting hazards) and basic processes (such as worksafety procedures common to all worksites). Trainees also
have opportunities to learn the reasons why operations
are done the way they are. Tests are given the day afterclassroom lectures so that trainees can review what theylearned the previous day. One trainee is selected to help
administer the curriculum in a leadership position. This
training system aims to accomplish several objectives
at the same time, namely skills acquisition, developing
independent thinking, and building leadership skills anda spirit of cooperation. Various means are employed toensure that trainees take the training program seriously,
such as issuing yellow cards to trainees who do not follow
company rules.
We have also introduced the “Foster” system, in which
trainers (“Fosters”) separated from the new employee
instructors engage in training individual new employees
for the purpose of making product manufacturing
training a routine aspect of worksites. While we expect
manufacturing operatives to work on their own personal
development, we have introduced the “Foster” system
to create an HR development framework in which all
worksite employees, including senior staff members andsupervisors, participate in HR development. Anotherpurpose of the program is for “Fosters” to achieve
personal growth through instructing junior employees.

Manufacturing Section Foster System Framework and Definitions of Roles

Manufacturing Section
managers
Manufacturing FM

Manufacturing Section
education supervisor

Integrated CF or CF= Foster Leader
Grade 2
Operative

Grade 3
Grade 4

Foster*Multiple personnels may be placed as fosters on
a new employee group or team

Grade 5New
employee

FosterNew employee
instructor

What is a “Foster”?
We foster talent that can do work.
We foster talent that can do work.
➡ Performing the role of training group members.
■Foster Leader (Integrated CF or CF)
Person responsible for integrated management ofdeveloping the proficiency of group members■Foster
Person providing and tailoring on-the-job and offthe-job instruction according to the proficiency level
management documentation■New employee instructor
Person responsible for developing and instructing
new employees in their first year of employment
until they can perform their duties independently

CSR REPORT 2021

33

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Human Resources System
A Human Resources System in Which Employees Takeon Challenges and Gain a Sense of Accomplishment
At Zeon Corporation, we believe that ourcompetitiveness derives from the sum total of thecapabilities of our individual employees. We strive
to create a human resources system that provides
employees with a sense of accomplishment by giving
them opportunities to challenge themselves toachieve ambitious goals within the shared goals of theorganization and to have their performance reflected
fairly in their pay and employment conditions.

Performance Evaluation System
Recognizing that a perfect score is impossible in apersonal performance evaluation system where people
rate each other, we are providing training to all evaluatorsand evaluated personnel to maintain and improve theirevaluation competency.
At Zeon Corporation, we have placed priority on
gaining understanding and acceptance for evaluation
results. Expectations, required work and performancetargets are made clear to all employees at the beginningof the evaluation term, and are shared among superiors
and subordinates. At the end of the evaluation term, we
perform fair evaluations of work and performance (i.e.
contribution to the organization) with the aim of shaping
a corporate culture filled with a sense of accomplishment
and aspiration (i.e. a spirit of challenge and creative
motivation).
We will continue our efforts to create an open andfair performance evaluation system that encourages
employees to realize more creative work with added
value and that distributes opportunities and rewards in afair manner.

Performance Evaluation Flowchart
Present theorganization’s goals
Primary evaluator

Set targets

Interim period(observe the degreeof growth)

Performance
evaluation

Record targets

Confirm targets

Review targets

EvaluateePrimary evaluator

Evaluation meeting

Share targets

Decide on targets

Supervisor→Employee

Primary evaluator

Milestones

Milestone management

Supervisor↔Employee

Primary evaluator

Record performance

Primary evaluation

Secondary evaluation

Group-widelevel adjustment

EvaluateePrimary evaluator

Evaluation meeting

Human Resources

Feedback

Feedback

Feedback

Supervisor→Employee

Primary evaluator

Secondary evaluator

CSR REPORT 2021

34

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Performance-linked Bonus System

Retirement Package System

Since 2000, Zeon Corporation has adopted a bonus
system that is linked to performance. The bonus isdetermined based on three types of performance:group-wide, division, and individual performance.
As with the performance evaluation system, we view
bonuses as a means of giving employees a sense ofaccomplishment by reflecting their performance fairly intheir compensation when they challenge themselves toachieve ambitious goals individually, as a team, and as anorganization.

Zeon Corporation provides retirement packages anddefined-contribution (DC) pensions. The retirement
package takes into account the last 10 years of
performance evaluations before mandatory retirement
and reflects the results in a lump-sum payment uponretirement, with the expectation that employees willremain motivated and feel a sense of accomplishment
right up until mandatory retirement. The definedcontribution (DC) pension system includes contributions
from the company that can be matched by employee
contributions, and is one means of accumulating assets
for after retirement.

Award System (Zeon Challenge Award)
Our awards programs include the Employee ofthe Month award, the winners of which are selectedby division managers each month, and the annual
Zeon Challenge Award (President’s Award), for which
individual employees and groups define a specificchallenge at the start of the year and are judged on
their progress toward meeting that challenge. The Zeon
Challenge Award presentation ceremony is broadcast
to all sites via an online meeting system to allow as
many people as possible to participate each year.
High-performing individuals and groups that narrowly
miss receiving the Zeon Challenge Award are eligible,
based on their accomplishments, for the Outstanding
Achievement Award from the President and Division
Manager’s Award from the division manager.
Number of Annual Awards
20
16
13

12

4

2
6
2

15
2

1
1

11

1

1

15

1
1

1

10

9

2017

2018

12

12

2019

2020

4

0

We are continuously working to create newtechnologies based on our Basic R&D Philosophy:
Contribute to society by creating world-leadingbusinesses through developing unique technologies inthe specific fields in which Zeon excels.
We strive to expand our intellectual property rights
using the patent first* principle, not only to protect(based on full respect for others’ rights) the technologies
we have created ourselves, but also to contribute toindustry growth.
In addition to the incentives awarded to the inventor of
an invention made in the course of work when the patentapplication is filed and when the patent is registered,
we have also adopted a system to award outstanding
invention incentives and performance incentives.
*Patent first
At Zeon, we define this as filing patent applications before developing andannouncing products and providing samples. In other words, we conduct
product development after first considering possibilities for filing patents.

(Awards)

8Compensation System for Invention Patents

2016

President’s
Award

Outstanding
Achievement
Award

SpecialAward

FY

DivisionManager’sAward

CSR REPORT 2021

35

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Creating Working Environments That Protect Health
A Comfortable Working Environment That
Values Dialogue
Approach to Building Working Environments
Guided by the principles of motivation, reliability,
achievement, stability and safety, and security, we are
pursuing flexible work options premised on regulatorycompliance and giving special importance to CSR. We
continue to work to build more inclusive and supportive
working environments from five perspectives: supporting
flexible work styles for work-life balance, enhancing
working environments, encouraging dialog, improving
health, and supporting self-reliance.

Motivation Reliability Achievement
Stability & Safety Security

Creating More Inclusive andSupportive Working Environments
Supporting flexible work styles
Enhancing working environments
Encouraging dialog Improving healthSupporting self-reliance

Systems and Initiatives to Realize More Inclusive andSupportive Working Environments
We are implementing ongoing initiatives to build more
inclusive and supportive working environments. These
include reducing overtime work and developing systems
for flexible work options and to support childbirth,childcare, and family care needs.
Systems and Initiatives
Flexiblework
stylesFlex-time system, teleworking system,encouraging the taking of special leave, half-day
holidays, instituted days with no overtime, selfimprovement activities, training for managerialand supervisory staff, surveys of actual
conditions, labor-management committee
operations, labor-management patrols

Supportforcombining
work andchildcare

Maternity leave before and after birth, childcare/ caregiver leave system, leave to attend
childbirth (for expecting fathers), leave to carefor sick children, half-day leave, shortened
working hours system, limits on overtime work,
exemption from late-night work, breastfeeding
time, childcare / caregiver leave financial support
system, childbirth cash payments

HealthandwelfareEmployee savings scheme,
employee stock ownership
Asset
scheme (with financial
accumulation incentives), defined-contribution(DC) pensions, matching
contributions system

Housing
assistance

Housing assistance system(dormitory accommodationand company housing, rent
subsidy system, home ownershipallowance, home rental fortransferred employees)

Marriage

Marriage cash payments,
honeymoon leave, spousal allowanceChildbirthChildbirth cash payments,
maternity leave, dependents andtuition allowances

Carryover of accrued vacation
Holidays and time, “My Life” holidays (onbusiness
reaching the age of 50), “Refresh”
shutdowns
holidays (Master employees),
public-service leave (for jury duty)
Recreationand training
facilities

Loans andself-help

Hakone Gora Facility, Izu Ippeki
Training Facility
Bereavement condolence payments,
bereavement leave, study loans,disaster assistance, group medical
insurance, compensation forabsences from work (Zeon healthinsurance cooperative association),
optional group insurance, group life
insurance, etc.

CSR REPORT 2021

36

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Support for Combining Work and Childcare
At present, 100% of female employees who givebirth take childcare leave. Among male employees, 13
employees took childcare leave in FY 2020. In addition,
many employees have used our system of shortened
working hours to allow them to combine working andraising children.
General Employer Action Plan based on the Act on Advancementof Measures to Support Raising Next-Generation Children
Based on Japan’s Act on Advancement of Measures
to Support Raising Next-Generation Children, we havedrawn up a General Employer Action Plan, and we report
our activities to the relevant authorities.
The current Action Plan is as follows.

Zeon Corporation’s General Employer Action Plan
(Act on Advancement of Measures to Support Raising
Next-Generation Children)
In order to more fully promote the establishment ofan environment where each and every employee candisplay their abilities to the fullest, we have formulated
the following Action Plan, as we believe that it isimportant to create an atmosphere and a workplaceenvironment that facilitates the combining of work andchildcare.
1. Plan implementation period:
The five-year period from April 1, 2021 to March 31,
2026
2. Details
Objective 1: ‌We will promote the creation of anenvironment that facilitates the use ofcompatibility support.
Action: ‌From April 2021 onwards, we have been
providing information and holding presentations
regarding system utilization, and building andproviding education on the consultation system.
Objective 2: ‌We will adopt measures that contributeto the adoption of flexible work styles.
Action: ‌From April 2021 onwards, we introduced ateleworking system for our head office. We arealso evaluating the potential for introducing
a system whereby employees will be able totake their annual paid leave in hourly units,
and evaluating the possibility of expanding thescope of application of the flex-time system andteleworking system.
End

Support for Combining Work and Family Care
Labor and management at Zeon work together to achievea balance between work and family responsibilities for
employees with family members requiring in-home care; wehave set up a consultation desk to support such employees.

Improving Working Environments, Encouraging
Dialog, and Supporting Self-reliance
Our focus is on encouraging dialog (communication)
to create an atmosphere in which all employees display
sensitivity to each other based on shared awareness, andin so doing enhance our worksite capabilities.
We consider communication, not only between
managers and employees, but also within the workplaceand between workplaces, to be the foundation of all
corporate activity. Through communication, we aim
to remove barriers between organizations, unify ourdirection, and help employees to feel satisfaction andpride in their work.

Labor Agreements and Communication between Labor andManagement
Joint Declaration by Labor and Management Aimedat the Growth of the Company
1. ‌We will make mutual understanding and trust thecornerstone of all management-labor relations‌ e will perform our respective roles to strengthen
2. W
company infrastructure and build a company of which
we can be proud3. ‌We will mutually strive to improve and promote ourcorporate culture as good partners

Zeon Corporation and its labor union have concluded
a labor agreement for the purposes of maintaining
peaceful relations between the two parties andcooperating for the healthy growth of the company
and to maintain and improve working conditions forunion members. This agreement stipulates rules forunion activities, labor-management negotiations, andcomplaint processing, as well as working conditions suchas wages and job hours.
We have also issued the Joint Declaration by Laborand Management Aimed at the Growth of the Company,
based on the common understanding that both thecompany and the labor union must cooperate andactively strive to mobilize the abilities of everyone inZeon Group to achieve initiatives for company growth.
Numerous opportunities for exchanging opinions havebeen set up, including consultations between labor andmanagement, RC dialog, and joint labor-management
patrols, as well as round-table meetings, which are now
a permanent part of the labor-management dialog.
Consultations between labor and management provide
ample opportunity for forthright discussion. Both sides
participate with a forward-looking attitude and a spirit offriendly rivalry based on mutual trust.
Going forward, we intend to actively provide
opportunities for dialog with the labor union and to
implement various policies to make Zeon a “companyof which each of its employees can be proud” through abeneficial partnership between labor and management
based on mutual respect for each other’s positions.

CSR REPORT 2021

37

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Dialog with Management
Opportunities for active engagement withmanagement are available in the form of policy briefingsand other venues, in which management members up
to and including the President visit worksites to provide
explanations and talk with employees.
Submitting Complaints
Zeon’s labor agreement includes rules for making
official complaints.
We have established rules for preventing sexual
harassment, harassment relating to pregnancy leave,
childbirth leave, childcare leave and family care leave,
workplace bullying and other forms of harassment in theworkplace, all of which constitute conduct subject todisciplinary action under our employment regulations,and we have set up a consultation desk specifically for
resolving harassment-related complaints.
We also conduct an educational program on theprevention of harassment for all staff as part of ourdiversity training.

Health Management Initiatives
Adopting an approach that takes individual physicaland mental health as the foundation for healthmanagement, we take steps to maintain and improve thephysical and mental health of employees.
In addition to healthcare guidance provided bynurses, we also provide statutory medical examinations
as well as detailed medical examinations by industrial
physicians. We are also working in collaboration witha health insurance cooperative association to prevent
employee’s health conditions from becoming serious
illnesses.
In regard to mental health, besides providing
mental health education, several worksites have
implemented stress checks to assist employees in better
understanding the physical and mental effects of stress.
We have also set up an educational system using selfcare and e-learning courses to encourage employees tocheck their stress levels at any time, not just at the time
when company stress checks are conducted. In addition,
we have assigned psychiatrists to support our industrial
physicians.
In recognition of these efforts, we received certificationin the Certified Health and Productivity Management
Outstanding Organizations Recognition Program (Large
Enterprise category) for three consecutive years (in FY
2019, FY 2020 and FY 2021). Performing environmental
measurements on chemical concentrations, dust
concentrations, noise levels, and other conditions in work
areas at our plants also helps us to make improvements
to workplace environments.
We introduced an ICT-based health and prevention
information service that allows employees to checktheir medical data from a computer or smartphone atanytime from anywhere. The service also provides healthinformation tailored to the person’s health data. Using
ICT, we are also participating in health-promotion events
to encourage employees to take an active interest in theirhealth through the health and prevention information
service.

CSR REPORT 2021

38

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Occupational Safety
Initiatives to Prevent Occupational Accidents andProtect the Safety and Health of All Plant Workers
We emphasize communication between worksite
managers and workers to enhance worksite capabilities,
with the goal of creating safe, stable production systems.
We focus on 5S safety inspections*1, hazard detection*2
activities, and identifying near-miss incidents*3, as wellas hands-on safety training.
*1 5S safety inspections
Inspections that evaluate operations where safety is an integral part ofmaintaining the 5Ss (Sort, Straighten, Scrub, Systematize, Sustain), and thatare designed to enhance visualization of safety-related issues at worksites
and address hazards.
*2 Hazard detection (“Kiken Yochi” [KY] activities)
Actions taken by workers to analyze and understand unsafe conditions withthe aim of recognizing activities that would place them in danger.
*3 Near-miss incidents
Events or phenomena that have the potential to result in an accident.

Record of Occupational Accidents

5S Safety Inspections
5S safety inspections assess operations where safety
is critical to maintaining the 5Ss (Sort, Straighten, Scrub,
Systematize, Sustain).
In FY 2020, due to the impact of the COVID-19
pandemic, the conducting of inspections was limited
to on-site verification at locations where industrial
accidents had occurred.

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

Lost Work Time Accident Rate* (Zeon Corporation)

Identifying Near-miss Incidents

Frequency rate

1.50
1.25
1.00
0.75
0.50

×
1.15

0.88

1.02
×
0.94

×
1.20

×

×
1.20

1.21

0.90

0.93

0.94

0.81
0.50

0.47

0.25
0

0.00

2016

× Manufacturing

2017

2018

Specialty Chemicals

2019

0.00
2020

FY

Zeon Corporation*Lost work time accident rate
A safety indicator of the frequency of occupational accidents, calculatedusing the following formula.
Frequency of lost work time accidents = Number of workers who
experienced a lost work time accident / Total working hours × 1,000,000
hours

Near-miss incidents are events that have the potential
to result in a major accident, injury or loss. The conceptof near-miss incidents comes from Heinrich’s Law: In a
workplace, for every accident that causes a major injury,
there are 29 accidents that cause minor injuries and
300 accidents that cause no injuries (near misses). By
collecting and sharing data on potentially serious nearmiss incidents, we will strive to prevent the occurrence ofmajor accidents.

CSR REPORT 2021

39

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Safety and Accident Prevention
Dialog between Management and Plants
To monitor progress on priority issues, senior
managers at Zeon visit plants on a regular basis toconduct inspections, hold informational meetings withworkers, and brief workers on annual policies. Visits arealso made to plants on other occasions to communicate
directly with plant workers, who are on the front-lineof the company’s operations. In-person visits were notmade in FY 2020 due to the impact of the COVID-19
pandemic, but senior managers continued to actively
implement virtual visits, performing online visits on 30
days in FY 2020.

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

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

Certification Status
Plant

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

Takaoka Plant 2000 (renewed in 2020)—

Kawasaki Plant 1998 (renewed in 2017) 2008 (renewed in 2017)
Tokuyama Plant 2007 (renewed in 2021) 2012 (renewed in 2021)
Mizushima Plant 2006 (renewed in 2021) 2006 (renewed in 2021)

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

CSR REPORT 2021

40

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Occurrences of Accidents and Injuries
FY 2020: Safety incidents* 6(High-pressure gas/hazardous substanceleaks: 3; Fluorocarbon leaks: 2; Emission offumes: 1)
Although these incidents did not result in injury tohumans, damage to equipment, or major impacts on theenvironment, we set up an accident investigation board
for each incident. The boards have investigated the direct
and indirect causes of the incidents, and are developing
countermeasures to prevent recurrence.
*Safety incidents
Defined in company regulations as the occurrence of a fire, explosion, leak,damage, failure, runaway reaction, or similar event. Even if there has beenno actual occurrence, the possibility of such an event if actions had been
delayed and the observation of signs that could be deemed to indicate thepotential for such an event are also defined as safety incidents.

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

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

CSR REPORT 2021

41

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Fair Operating Practices
Compliance
CSR Procurement
Fair and Appropriate Information Disclosure

P. 41
P. 42
P. 44

Compliance
Compliance System
The Compliance Committee advances Zeon’s
compliance efforts. The Compliance Committee
has three subcommittees, namely the Antitrust
Law Regulatory Subcommittee, the Export Security
Control Subcommittee, and the Corporate Governance
Subcommittee.
Zeon’s Risk Management and Compliance System

Compliance Committee
Prevention of law violations
Education and training in compliancewith laws
Antitrust Law
Regulatory Subcommittee
Prevention of violations of
the Antitrust Law
Export Security
Control Subcommittee
Proper security export control
Corporate Governance
Subcommittee
Reliability in financial reporting

Compliance Committee
FY 2020 Results• ‌Continued activities to establish and instill complianceawareness• ‌Provided support to increase compliance awareness at
Zeon Group companies outside Japan• ‌Established a system to prevent bribery of civil servants
Antitrust Law Regulatory Subcommittee• ‌Conducted reviews prior to the revision of productprices in business divisions, carried out preliminary
screenings when meeting with executives ofcompetitors, and reviewed the status of participation inindustry bodies
Export Security Control Subcommittee• ‌Conducted seminars for ordinary employees and for
department personnel in charge• ‌Implemented numerous final assessments of control list
applicability and trade investigations

Corporate Governance Subcommittee• ‌Established controls for identifying the risk of andpreventing errors in consolidated financial statements.
Evaluated whether the controls were functioning
correctly• ‌Convened five times in FY 2020, and no ineffective
controls were foundInternal Reporting System
We established the Internal Reporting System torapidly collect information on potential risks and facilitate
their resolution.
(For more information about the Internal Reporting
System, see Risk Management. R P. 14)

Internal Audits
Internal audits are performed for the purposeof preventing improprieties and errors in business
operations.
The Department of Internal Auditing inspects andassesses whether business operations in all departments
are being carried out appropriately and effectively
in accordance with laws and internal regulations,and orders improvements when there are incidents
of violations or non-compliance. In addition, theDepartment of Internal Auditing carries out periodic
follow-up audits on the progress of measures taken bydepartments.
FY 2020 results: 33 departments (16 departments at
Zeon Corporation, 11 Zeon Group companies inside
Japan, 6 Zeon Group companies outside Japan)
FY 2021 plan: 34 departments (13 departments at Zeon
Corporation, 8 Zeon Group companies inside Japan, 13
Zeon Group companies outside Japan)
Information Security Audits
Information security audits are internal audits on thehandling of information assets. They are conducted
for all divisions and departments at Zeon using a selfinspection format.

CSR REPORT 2021

42

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

CSR Procurement
In order to provide safe and reliable products, we procure raw materials based on the Zeon CSR Policy and the CSR
Code of Conduct.

Procurement Policies
Policies related to procurement are as follows.
We have been developing initiatives for CSR-based
procurement since FY 2012. We have established the
CSR Procurement Guidelines and Requests to Suppliers,
which integrate CSR perspectives into our existing QCD*.
*QCD
System of production management that controls and improves quality, cost,and delivery.

CSR Procurement Guidelines
1. CSR procurement
We will promote procurement activities that are basedon our CSR Policy.
2. ‌Procurement of optimal raw materials, products,
and services
We will work to procure optimal raw materials, products,
and services that meet our standards for quality,
cost, delivery time, supply stability, and technologicaldevelopment capabilities in order to provide better
products.
3. Consideration of the global environment
We will work to procure raw materials and products thathave less impact on the global environment.
4. Open approach to purchasing and partnerships
We will use a global perspective to search for suppliers
from across the world, build partnerships throughdialogue, and work to create fair and equitable business
opportunities.

Requests to Suppliers
We kindly ask that our suppliers:
1. ‌Follow corporate ethics and thoroughly implement
compliance.
2. ‌Respect human rights and give consideration to
workplace environments.
3. ‌Give consideration to the environment, and provide
safe raw materials, products, and services.
4. ‌Provide raw materials, products, and services withcompetitive quality and pricing, and abide by agreed
delivery dates.
5. ‌Actively provide information during the creation ofpartnerships. Also, implement strict management of
information disclosed by Zeon during our transactions.
We will implement the same strict management.

Procurement-related Initiatives
Over the past few years, we have been working torealize the sharing of information and dissemination of
CSR awareness so that the Zeon Group can achieve a
unified response to inquiries from customers, suppliers,
research institutes related to ESG investing, etc.,
regarding sustainable procurement. When Zeon facilities
purchase raw materials, conformity with Japanese laws
relating to chemical substances (including the Chemical
Substances Control Law, the Industrial Safety and
Health Act, the Pollutant Release and Transfer Register(PRTR) Law, etc.) is verified by making effective use of
chemSHERPA, etc. Besides verifying our company’s
compliance with relevant laws, this also contributes
towards the disclosure of chemical substance related
information by the customers that purchase ourcompany’s products, in relation to compliance with
relevant laws and regulations, including the European
Union’s Restriction of Hazardous Substances (RoHS)
Directive, Registration, Evaluation, Authorisation andRestriction of Chemicals (REACH) regulation andClassification, Labelling and Packaging (CLP) Regulation,
UK REACH, South Korea’s K-REACH, the U.S. Toxic
Substances Control Act (TSCA), etc.
We are also developing similar measures in the
supply chain. We updated the CSR-aware procurement
questionnaire that we conducted in 2013, and, as noted
below, in FY 2019 we implemented a further CSR-aware
procurement questionnaire, targeting our main suppliers,
and undertook CSR assessment.
CSR Assessment of SuppliersWith the aim of building a sustainable supply chain,
Zeon is promoting CSR-aware procurement together
with our suppliers. In 2019, we began to implement
a CSR-aware Procurement Self-assessment survey,
focusing on the extent to which our main suppliers are
implementing CSR-aware procurement initiatives. Basedon the survey results, online interviews were conductedwith those suppliers that did not meet the specified
standards, and we engaged in dialog with them to help
them develop a better understanding of CSR surveys
and improve their CSR response measures. Currently,
we are implementing this survey once every two years.
By conducting the survey in an ongoing manner inthis way, we aim to enhance the overall level of CSR incollaboration with our suppliers, and to reduce the levelof social and environmental risk in our supply chain.
1. Corporate governance
2. Human rights
3. Labor
4. Environment
5. Fair business activities
6. Quality and safety
7. Data security

CSR REPORT 2021

43

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

8. Supply chain
9. Maintaining a harmonious relationship with the local
community
Regarding the format used for the survey, we
made use of the CSR/Sustainable Procurement Selfassessment Tool Set, which is No. 9 in the Building
the Sustainable World Series published by the Global
Compact Network Japan (GCNJ), a group whose goals
we support. The approach adopted for the survey
emphasizes ensuring that the survey does not include
items that reflect an excessive focus on Zeon’s own
perspective, and ensuring that the survey reflects current
global trends and expectations.
Going forward, we will continue to implement regular
CSR-aware procurement surveys, taking into accountboth the company’s circumstances and the situation insociety as a whole.

Approach to Conflict Minerals and Initiatives
Regarding conflict minerals as well, we will conduct
initiatives to meet society’s expectations based on the
aforementioned procurement policies.
When we surveyed our suppliers from whom we procure
raw materials with their cooperation, we confirmed thatthey do not use substances applicable to conflict minerals.

CSR REPORT 2021

44

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Fair and Appropriate Information Disclosure
Communications Approach and Framework
We conduct public relations activities to promoteaccurate understanding of our philosophies, approaches,and various undertakings by stakeholders and the public,
and thereby increase our name recognition and become
more known and trusted in the world.
Public Relations Committee
The Public Relations Committee discusses and sets
policy related to internal and external information
disclosure based on CSR management.

Information Disclosure
Website• ‌Communicates information relating to the company,
IR, products, and employment, etc. (Comprehensively
overhauled in April 2021)

Advertising and PR
We conduct locally based advertising and PR activities
with the aim of enhancing the Zeon brand.
TV commercials• ‌Currently on air on terrestrial TV broadcasting (Regions:
Kanto region and Toyama, Fukui, Okayama, Yamaguchi,
and Kagawa prefectures) and BS TV broadcasting(Regions: National)• ‌TV commercials for Asia are broadcast throughout
Southeast Asia via satellite TV programs

New TV commercial

New advertisements
From 2018, a series with the “Chance” and “OnceMore” chapters is being rolled out.

CSR REPORT 2021

45

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Communication with Shareholders

ゼオンの 海外拠点 −中国のゴムコンパウンド製造拠点編−
証券コード 4205

特 集

株主のみなさまへ▶ 医療系容器用

ゴムコンパウンド製品
シクロオレフィンポリマー（COP）「あらゆる年齢のすべての人々の健康的な生活を確保し、「あらゆる年齢のすべての人々の健康的な生活を確保し、福祉を促進する」
福祉を促進する」－持続可能な開発－持続可能な開発

ゼオングループの合成ゴム事業は、
合成ゴムそのものだけで
目標
目標（SDGs）（SDGs）の3番目として掲げられたこの目標に、の3番目として掲げられたこの目標に、
ゼオングループはその製品やサービス、
ゼオングループはその製品やサービス、

Product #03

事業活動を通じたSDGsへの貢献

また、
また、
素材
素材・
・部材としてゼオンの製品が活用されている最終製品を通じて貢献しています。
部材としてゼオンの製品が活用されている最終製品を通じて貢献しています。
なく、ゴムに充填材や架橋剤を配合して混練した加工品をゴム

パウンドはカーボンフリー用途や、製造工程での誤使用防止などが進んでいます。
が進んでいます。
また、
また、割れにくい点も医療の現場では歓迎されています。
割れにくい点も医療の現場では歓迎されています。

コンパウンドとして製造販売しています。1967年に事業化したさまざまな着色ニーズがあり、今後の拡大が期待されています。

COPはたんぱく質などの吸着が少ないため、
COPはたんぱく質などの吸着が少ないため、
プレフィルドシリンジ
プレフィルドシリンジ
（あらかじ
（あらかじ

ゴムコンパウンドは、
主にホース、チューブ、パッキン、
シール材など瑞翁化工（広州）有限公司は2003年に設立されました。中国

自動車部品用途に使われており、これまで当社ゴム事業の発展と華南地区に集積する自動車産業向けに各種ゴムをベースにしたともに半世紀以上の歴史を歩んでまいりました。現在、製造拠点を
日本、タイ、中国（上海、広州）に構えております。
中国2拠点の一つ、瑞翁化工（上海）有限公司は2000年に設立

天然ゴムに含まれるたんぱく質に対するアレルギー反応への懸念から、
天然ゴムに含まれるたんぱく質に対するアレルギー反応への懸念から、
NBR
NBR

され、今年創立20周年を迎えました。主にHNBR、NBRを主原料にラテックスを使用した合成ゴム手袋への転換が進んでいます。
ラテックスを使用した合成ゴム手袋への転換が進んでいます。
新型コロナウイ
新型コロナウイルスへの対応で医療用をはじめとした使い捨て手袋の需要は顕著に拡大してルスへの対応で医療用をはじめとした使い捨て手袋の需要は顕著に拡大して

第 96期 中間報告書
2020年4月1日 ▶ 2020年9月30日

独自開発のレシピで白コンパウンドを生産しています。
白コン
め薬液を満たした注射容器）
め薬液を満たした注射容器）
をはじめ、
をはじめ、
さまざまな最新の医療系容器への採用
さまざまな最新の医療系容器への採用

ゴムパウンドを供給し、中国の自動車産業の発展に貢献してい熱可塑性エラストマーSIS

ます。
▶

Product #04▶ 手袋用合成ラテックス

瑞翁化工
（広州）
有限公司

おり、
おり、
引き続き生産引き続き生産・・供給量の増加に注力してまいります。
供給量の増加に注力してまいります。

（スチレンイソプレンブロックポリマー）

紙おむつ用エラスティックフィルム材料として、
紙おむつ用エラスティックフィルム材料として、
その良好な性能によりおむつ
その良好な性能によりおむつ
1枚あたりに使用されるフィルムの量を減らし、1枚あたりに使用されるフィルムの量を減らし、軽量化に貢献。
軽量化に貢献。
また、
また、
下着のよう
下着のよう
な柔らかさを持たせられるため、な柔らかさを持たせられるため、より快適でスリムなおむつを実現します。
より快適でスリムなおむつを実現します。

東京都千代田区丸の内1-6-2（新丸の内センタービル）〒100-8246

電話03（3216）1772▶ マイクロ流路チップ試作受託サービス
微細加工技術を利用して微小流路や反応容器を成形したマイクロ流路チップは、
微細加工技術を利用して微小流路や反応容器を成形したマイクロ流路チップは、製薬や体外診断などの医薬分野での利用が拡大しています。
製薬や体外診断などの医薬分野での利用が拡大しています。
1枚の試作から量産
1枚の試作から量産まで柔軟に対応し、まで柔軟に対応し、
成形、
成形、
切削、
切削、
接合までワンストップで受託できる体制を整え接合までワンストップで受託できる体制を整え

Product #05

Product #02

General Meeting of Shareholders
On June 26, 2020 (Friday), we held our 95th Annual
General Meeting of Shareholders in a conference roomat the Head Office. While shareholders were asked not
to attend the meeting in person (regardless of their stateof health) to help prevent the spread of COVID-19, we
mailed out notices approximately three weeks prior tothe meeting to allow investors to exercise their voting
rights by post or online based on a full review of the
proposals. We also publish the details of resolutions fromthe General Meeting of Shareholders on our corporatewebsite.
In addition, audio files of quarterly financial results
briefings and videos of presentations given twice ayear by top management on the current status ofmanagement at Zeon are available on our corporatewebsite.

瑞翁化工
（上海）
有限公司

健康と福祉を実現するゼオンの製品群

Product #01

Policies related to constructive dialogue with shareholders
Dialogue with shareholders is led by the department
responsible for IR and SR, and overseen by the relevant
director. The department responsible for IR and SR
exchanges information with other relevant departments
within the company as appropriate to provide accurate
and unbiased information to shareholders.
We will continue to expand the avenues of dialogue
apart from individual meetings. These include holding
quarterly briefings for investors, making financial
statements available on the Zeon Corporation website,and participating in company seminars for individual
investors. The IR & SR office collects and analyzes
feedback received in dialogue with shareholders andmakes reports to the President as appropriate. Basedon management regulations including those on insider
trading and appropriate information disclosure, we
strictly control unreleased important information while
engaging in dialogue with shareholders to prevent
information leaks.

Communicating Information to Shareholders
Twice a year, we send a booklet to our shareholders
featuring updated business information and recent
topics of interest, etc. The 96th Midyear Report, issued
in December 2020, included a special feature on
Zeon products that are helping to realize health andwelfare for society, introducing products and services
such as synthetic latex for making gloves, microfluidic
chip contracted prototyping service, and Cyclo Olefin
Polymers (COP) for medical container use.
We will continue to improve the Midyear Report tomake it more accessible and better meet shareholders’needs.

▶ 胆管結石除去用カテーテル
ゼオンメディカル
ゼオンメディカル
（株）（株）が展開するバルーンカテーテルは、が展開するバルーンカテーテルは、結石除去の治療で高い結石除去の治療で高い評価を得ており、評価を得ており、患者様の苦痛軽減、患者様の苦痛軽減、医療関係者の負担軽減につながっています。
医療関係者の負担軽減につながっています。

ています。
ています。

33

日本ゼオン
日本ゼオン IRIR

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

44

96th Midyear Report

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

Distributions
Our basic policy is to pay out steady dividends ofexcess earnings to shareholders.
In principle, Zeon Corporation distributes excess
earnings twice annually, through interim and yearend dividends. The General Meeting of Shareholders
decides the year-end dividend amount, and the Board of
Directors decides the interim dividend amount. Retained
earnings are leveraged for proactive capital investments,
development of innovative technologies, and production
innovations.

For more information about Zeon’s share price anddividends, see
http://www.zeon.co.jp/ir/stock/dividend.html(Japanese version only)Video of a presentation by President Tanaka

For more information about the General Meeting of
Shareholders, see
https://www.zeon.co.jp/en/ir/stock/meeting/
For more information about financial results briefings, see
https://www.zeon.co.jp/en/ir/financial/bs/

CSR REPORT 2021

46

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Consumer Issues
Quality Assurance

P. 46*For chemical product safety, see Environment (→P. 26)

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

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

Products &services

Sales(Businessdivisions)
Stableproduction

Product safety
reviews
Product standard
approvals
Product
judgments

Manufacturing(Plants)
Production
preparations

Product
planning

Quality
Assurance
Department
Design reviewof planning anddevelopment

Technology
development(Research
center)Product
designCSR REPORT 2021

47

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Framework to Achieve Product Safety

Mid- to Long-Term Initiative Policy andInitiatives from FY 2017
In our mid- to long-term management plan SZ-20, we
set the 2020 quality assurance goal of “global uniform
quality and cost compatibility.” For the three years of
FY 2014 to FY 2016, we defined our quality assurance
policy as “Aim to create mechanisms that will facilitate
quality assurance even if things change (even if Zeonor the world changes).” We then conducted quality
assurance activities to achieve this.
To develop this quality assurance policy across Zeon
Group over four years starting in FY 2017, we revised
the policy to read, “Aim to create mechanisms that will
facilitate Zeon Group quality assurance even if thingschange (even if Zeon or the world changes).” We areconducting quality assurance activities across Zeon
Group to this end.

Framework Supporting Quality Assurance at ZeonTo ensure a consistent supply of high-quality
products to our customers, we have put in place various
quality assurance systems in accordance with internal
regulations on quality assurance and conforming to
the ISO 9001:2015 international standard for quality
management systems.
1. ‌Acquisition of international quality standard
certifications by Zeon Corporation
In 2010, we integrated the ISO 9001 certifications
obtained throughout Zeon and have maintained this. In
the 2017 regular inspection, we also received a transition
inspection to the 2015 version and completed thetransition.
2. ‌Status of Zeon Group Certifications forInternational Quality Standards
Site

ISO
9001*1

Japan Zeon Kasei Co., Ltd.
Zeon Polymix Inc.

p*3
pZeon Medical Inc.

p

Zeon North Co., Ltd.

p

Tokyo Zairyo Co., Ltd.

p

Zeon Chemicals Yonezawa Co., Ltd.

p

Optes Inc.

p

Tohpe Corporationp

Outside Zeon Chemicals L.P.
Japan
Zeon Chemicals (Thailand) Co., Ltd.

ISO
13485*2p
p

Zeon Advanced Polymix Co., Ltd.

p

Zeon Chemicals Singapore Pte. Ltd.

p

*1 ‌ISO 9001 is the international standard for achieving ongoing
improvements in enhancing customer satisfaction and quality
management systems through product and services quality assurance.
*2 ‌ISO 13485 is the global standard for quality management systems in thefield of medical devices for the purpose of continued manufacture andprovision of safe and useful medical devices. The standard has added
requirements specific to medical devices while omitting some of the ISO
9001 requirements.
*3 ‌The logistical materials division has acquired certification limited to
STEC®.

1. Product safety reviews
We strive to ensure product safety in every possible
aspect by conducting product safety reviews (PSRs)
using our own checklists that consider product safety at
every stage of the product lifecycle, from initial productdevelopment through planning, design, manufacturing,sales, use, and disposal.
2. Chemical substance regulatory compliance
The regulatory environment for chemical substancesmanagement is undergoing major change globally, withlaws and regulations on chemical substances being
amended not just in the United States and Europe but
also in Japan and Southeast Asia. As a result, the numberof regulations to comply with is rising sharply. To comply
with these regulations at Zeon, we are creating a databaseof the substances in our raw materials and products, eventhose present in minute quantities, and building a chemical
substances management system capable of continuously
tracking the most up-to-date regulatory information,
safety information, and other relevant information.

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

Communicating Safety Information
For more information about safety information forchemical products handled by Zeon, see Chemical
Product Safety Information (R P. 26).

CSR REPORT 2021

48

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

P. 48
P. 49

P. 49

Upholding Positive Working Environments by Protecting
Human Rights and Prohibiting Discrimination
In August 2019, we established the Zeon Group Human Rights Policy, which sets forth respect for human rights andprohibits discrimination, and are striving to create a mutually accepting company that does not tolerate discrimination
based on gender, age, nationality, or other attribute and understands diverse values.
Zeon Group Human Rights Policy (Established on August 1, 2019)We, the Zeon Group, are committed to fulfilling our corporate social responsibilities in respect of human rights andcontributing to realizing a sustainable society, based on international codes of conduct on human rights, such as
the Universal Declaration of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental
Principles and Rights in Labor, and the UN Global Compact.
Respect for Human Rights
We will not tolerate acts of discrimination orharassment based on age, gender, place of origin,ancestry, nationality, disability, religion, creed, marital
status, employment status, union participation, politicalviews and other differences. We also will not toleratechild labor, forced labor or/nor unjustly low wage labor.
Collaboration with Stakeholders
We will encourage our customers and business
partners to support this policy with us to pursue
business activities sharing respect for human rights.
Prevention and Mitigation of Human Rights Violations
We will strive to perceive, avoid and reduce any
negative impact on human rights that might result fromour business activities.

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

CSR REPORT 2021

49

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

CSR Education Including CSR Informational
Sessions
The FY 2020 CSR informational session was held in an
e-learning format, in order to help prevent the spread of
COVID-19. We explained in easy-to-understand terms
how we were transitioning from CSR focused mainly on
legal and regulatory compliance to CSR that also focuseson many of the issues contained in the SDGs and is able
to meet society’s expectations while seeking to create
and increase corporate value.

CSR informational session

Protecting Human Rights in the Supply Chain“Respect for human rights and considerations for work environments” forms part of the Requests to Suppliers sectionof the CSR Procurement Guidelines.

Procurement Initiatives
In recent years, we have been sharing information
and working to instill CSR to enable the Zeon Group as awhole to provide a uniform response to inquiries aboutsustainable procurement from customers, suppliers, andresearch institutes related to ESG investing.
To also implement the same kind of response in our
supply chain as a whole going forward, while taking into
account both the company’s circumstances and thesituation in society as a whole, we regularly conduct a
CSR-aware procurement questionnaire for our suppliers.
As we do this, we will keep the following points in
mind:• Continuing to regularly conduct the questionnaire• Ensuring that the questionnaire contents incorporate
society’s changing expectations

Becoming a Signatory to the United Nations Global Compact
and Participating in Subcommittee Activities
In June 2019, we became a signatory to the United
Nations Global Compact, and in FY 2021 a total of 20
Zeon employees participated in 13 of Global Compact
Network Japan’s subcommittees, and in related activities.
Participating in the activities of the United Nations Global
Compact and following its Ten Principles serves as thefoundation of the Zeon Group’s 2030 Vision of being “acompany that lives up to societal expectations and theaspirations of employees,” and it clearly enunciates toour stakeholders our basic stance on human rights, labor
practices, the environment, and preventing corruption in
our company activities. We also believe this will advance
our CSR management based on world standards.

CSR REPORT 2021

50

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Community
Basic Approach and Initiatives
CSR Core Projects

P. 50
P. 51

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

Zeon’s Approach to Social Contributions
We believe that social contributions are essentially
carried out through our core businesses. As a corporate
citizen, however, the complex set of issues faced bysociety and company activities are not independentof one another. We are therefore undertaking social
contribution activities outside of our core businesses toengage with society from a broader perspective.
In 2012, we launched CSR Core Projects, which are
initiatives we selected from proposals submitted by Zeon
Group companies. The CSR Core Projects are activities
that focus on social contributions outside the scope of
our core business operations and provide employeeswith an opportunity to turn their attention toward social
issues.
We plan and develop activities in three broad
categories: 1) various activities related to supporting
reconstruction from the Great East Japan Earthquake,2) shared projects conducted across multiple Zeon’s
plants and Group companies, and 3) projects conductedindependently by Zeon’s plants and Group companies.
We are developing these activities with a focus on theirsynergistic benefits.

Furukawa Scholarship
The Furukawa Memorial Foundation is anincorporated foundation with a 56-year history ofgranting scholarships to Japanese and foreign students
experiencing financial hardship to encourage themto continue their education. We are maintaining our
involvement in the foundation to assist its activities.
To date, the Foundation has awarded scholarships to a
total of 3,290 people.

CSR REPORT 2021

51

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

CSR Core Projects
The CSR Core Projects are activities that focus on social contributions outside the scope of our core business
operations.

Status of CSR Core Project Initiatives
Project

Detailed initiative

FY 2020 target

Support for Great East Japan Earthquake reconstruction
Participation in reconstruction
volunteer tours

Started in October 2012
Continue the initiative
66 tours as of March 2020 (total of 538 participants) (Frequency target: 1–2 times per
Disaster recovery assistance (Minamisanriku,
month)
Rikuzentakata), agricultural assistance (Iwaki),>This activity was temporarily
fishing industry assistance (Kesennuma), etc.
suspended in FY 2020 due to theimpact of the COVID-19 pandemic.

Eat and Root for Restoration!
campaign

Support the recovery of industries by eating foods
grown in the disaster-affected areas
Offer a menu of Tohoku-grown foods at theemployee cafeteria and Z Plaza (employee lounge)

Continue the initiative

Participate in building a forest
embankment to protect lives*

Support for and participate in tree planting for
Heisei-no-mori in Otsuchi Town (sponsoredby Yokohama Rubber and Otsuchi Town, Iwate
Prefecture) since FY 2013
>This activity was temporarily suspended in FY 2020
due to the impact of the COVID-19 pandemic.

The tree planting was concluded in FY
2015. Maintain our ties with Otsuchi
Town through activities including
post-planting maintenanceChemistry Classroom

Summer vacation events and classes where local
residents conduct experiments while touring our
locations
Head Office: Children’s summer holiday chemical
experiment show (every year from FY 2013 to FY
2017)
Tokuyama Plant: Experiment classrooms duringindustrial tourism tours for parents and children
Zeon Chemicals Yonezawa: Experiment classrooms
at the Youth Science Festival in Yamagata
Takaoka Plant, Kawasaki Plant: Experimentclassroom activities during factory visits, giving
lessons at local elementary schools
R&D Center: Kawasaki City Summer Holiday Selfdirected Research Seminar>Many of these activities were temporarilysuspended in FY 2020 due to the impact of the
COVID-19 pandemic.

Hold chemistry classrooms (increase
the number of events held at our
locations)
Expand the conducted experiments(create a new experiment package)

Eco-cap recycling campaign(collecting used plastic caps)

Began counting caps at all Zeon Group companies in Continue the initiative
FY 2012

Green purchasing of officesupplies

Purchasing office supplies with minimal environmental Continue the initiative
impact (notebooks, book-binding tape, folders, etc.).
Of the 44 items stipulated under the Green Purchasing
Law, we switched to 22 items (50%)

Shared projects

Independent projects
Topics selected by promotional
committees

Engaging with local communities
Participation in community events: Sponsor andprovide support for various events
Cleanup activities
Educational support: Internships, sending instructors
to schools, etc.

Continue the initiative*Forest embankment to protect lives
This activity creates a forest that will act as an embankment protecting local residents against tsunamis. This consists of combining debris from the disaster withsoil to build an elevated area along the coastline, which was damaged during the tsunami triggered by the Great East Japan Earthquake. Various trees native tothe area are being planted on the elevated ground to create a multilayer forest.

CSR REPORT 2021

52

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Examples of Initiatives
Following are some examples of activities that arepart of the CSR Core Projects. Many other activities
conducted with local communities are described in the
Site Reports.
Volunteering to support Great East Japan Earthquake
reconstruction
We invite employees to sign up for restoration
volunteer tours open to the public and send employeeson the tours on an ongoing basis. We cover the full costof the tours to encourage employee participation.
This initiative began in October 2012. In FY 2019,65 employees participated in volunteer tours. They
assisted with repair work and searched for lost articles in
Rikuzentakata City, Iwate Prefecture; provided assistancefor the fishing industry in Kesennuma City, Miyagi
Prefecture; and agricultural assistance in Iwaki City,
Fukushima Prefecture.
We turn support into encouragement, andencouragement into exchange. We intend to continue
this initiative in light of the risk that the memory ofthe devastation will be forgotten. (This activity was
temporarily suspended in FY 2020 due to the impact of
the COVID-19 pandemic.)
Helping plant trees in a disaster-affected area
Since 2012, Otsuchi Town in Iwate Prefecture andYokohama Rubber Co., Ltd. have been conducting atree-planting campaign at “Heisei-no-mori” in Otsuchi
Town as a model project for the creation of forest
embankments that can help to protect lives in the local
community. Zeon has also been participating in thistree-planting campaign since 2013. The fourth roundof tree-planting in 2015 was the last round; however,
we have continued to participate in related activities
by undertaking maintenance work for the trees plantedon the site and providing tree-planting education for
local elementary school children through extracurricularlessons. (This activity was temporarily suspended in FY
2020 due to the impact of the COVID-19 pandemic.)

Chemistry Classrooms
Based on the motto of “nurturing future Nobel Prizewinners in chemistry,” we hold chemistry experimentclassrooms in various areas to communicate the appealof chemistry to children.

At Zeon Chemicals Yonezawa, due to the impact of the COVID-19 pandemic,
the experiment classes for children and Uesugi Snow Lantern Festival
activities that we normally participate in were cancelled this year. However,
we did participate in a career experience event at local high schools, using
flasks and beakers for a distillation experiment with herbs, and providing avirtual experience of working at a chemical plant.

At Tohpe Ibaraki Plant, although the family plant tours have been put on
hold, experiment kits have been provided which families can enjoy using athome.

CSR REPORT 2021

53

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Support for Education
Zeon’s plants and Group companies offer assistance toeducational institutions with internships for high school,
technical college, and university students, by welcoming
plant tours by school groups, and by sending special
instructors to give lessons at schools.

Mizushima Plant: plant tour

Zeon Chemicals (Thailand) Co., Ltd. continues to implement CSR-DIW (a CSR
project launched by Thailand’s Ministry of Industry), and foster participation
by local residents as well as the maintenance of employee health.

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

Dialog with Communities
Plants participate in community dialog as part of the
Responsible Care Council activities and communicate
information on environment-related improvements, safety, anddisaster preparedness during plant tours for representatives of
local government authorities and for community residents.

Responsible Care community dialog at the Kawasaki Plant
We welcomed representatives of local residents’ associations, andrepresentatives of eight member companies of the Kawasaki district of the
Responsible Care Committee.

Community Cleanup Activities
With the goal of being useful to and benefitting local
communities, Zeon’s plants and Group companies
conduct community cleanup campaigns around theirsites and beyond.

CSR REPORT 2021

54

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

Zeon Chemicals L.P. (ZCLP) in U.S.A. has conducted volunteer activities anddonation drives for many years.

Thailand-based companies Zeon Advanced Polymix Co., Ltd. and Zeon
Chemicals (Thailand) Co., Ltd. have conducted volunteer cleanups andcharity activities for many years.
The companies make donations to various groups including schools, nearby
temples, hospitals, and educational institutions.

CSR REPORT 2021

55

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

ESG Data
Environment
SocialGovernance

P. 55
P. 56
P. 57

Environment
Zeon Corporation only
Butadiene consumption (tons)
Butadiene emissions (tons)
Toxic substances
Acrylonitrile consumption (tons)
Acrylonitrile emissions (tons)
Substances subject Consumption (tons)
to the PRTR Act
Emissions (tons)
Amount generated before compacting (tons)
Industrial waste Amount generated after compacting (tons)
Amount sent to landfills (tons)
CO2 emissions (tons)
SOx emissions (tons)
AtmosphericemissionsNOx emissions (tons)
Soot emissions (tons)
Water resources Total water resource consumption (1,000 m3)
Total wastewater discharge (1,000 m3)
COD emissions (tons)
Wastewater
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total consumption (crude oil equivalent, kL)
Per-unit energy consumption (kL/t-PDR)
EnergyEnergy efficiency indicator (FY 1990=100)
Production equivalent (tons)
Per-unit CO2(FY 1990=100)
emissions indicator

FY 2016
298,397
3.6
24,4834.1
800,07427.4
135,996
15,074
1.7
480,631605
274
518,593
15,919119
2
124
195,0490.13
60%
1,547,789

FY 2017
308,069
3.1
29,8404.0
885,17625.2
125,018
14,574
1.9
575,573796
324
818,234
15,928137
2
153
223,6290.13
64%1,671,352

FY 2018
289,912
3.4
29,2054.0
878,072
23.7
143,129
15,9320.0
545,024689
298
4
18,09815,3991242
160
212,4400.12
59%1,723,677

FY 2019284,390
3.0
28,775
3.0
827,13423.3
130,153
15,1153.2
499,222774
270
7
17,741
15,1071412
157
227,2330.14
68%1,602,286

FY 2020
266,518
2.7
24,3193.1
817,455
23.4
140,226
16,3620.1
454,023579
258
4
17,905
15,433121
2133
215,9800.13
63%1,655,367

58%

64%

59%

58%

51%

Zeon Group companies in Japan(“0” indicates less than 0.5, and “0.0” indicates less than 0.05)
FY 2016
Substances subject
No. of substances (total)
2.9
to the PRTR Act
Amount generated before compacting (tons)
3,303
Industrial waste
Amount sent to landfills (tons)
2.9
53,049CO2 emissions (tons)
Energy consumption (crude oil equivalent, kL)
22,147
Electricity consumption (1,000 kWh)
79,586
317
Water resources (1,000 m3)

FY 2017

FY 2018

FY 2019

FY 2020

4.1

3.5

3.6

4.2

4,896
0.2
56,021
22,771
81,582
319

2,746
1.3
52,343
22,94982,861
328

2,323
2.8
50,31823,88486,744
327

2,247
14.3
53,681
26,074
95,648334

Zeon Group companies outside Japan(“0” indicates less than 0.5, and “0.0” indicates less than 0.05)
FY 2016
Substances
subject to
No. of substances (total)
66.7
the PRTR Act
Amount generated before compacting (tons)
3,617
Industrial waste
Amount sent to landfills (tons)
2,365
128,317
CO2 emissions (tons)
Energy consumption (crude oil equivalent, kL)
50,374
1,811
Water resources (1,000 m3)

FY 2017

FY 2018

FY 2019

FY 2020

82.8

83.0

86.0

77.4

3,608
2,388
142,838
56,741
1,951

3,495
2,438
139,984
55,181
1,986

3,234
2,315
137,458
53,057
1,867

3,036
2,168
157,459
41,197
1,675

CSR REPORT 2021

56

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Status of Certifications for International Environmental Standards
Site
Takaoka Plant
Kawasaki Plant
Tokuyama Plant
Mizushima Plant

ISO14001○○○○

Tohpe Corporation Head Office/Ibaraki Office○

Tohpe Corporation Mie office○Zeon Kasei Co., Ltd. (Head Office divisions
including research laboratories)○

Zeon Polymix Inc.
RIMTEC Corporation
Optes Inc. Hokuriku Plant
Zeon Opto Bio Lab Co., Ltd.
Tokyo Zairyo Co., Ltd.
Zeon Chemicals Yonezawa Co., Ltd.
Zeon North Co., Ltd.

○
○
○
○
○
○
○

SocialStatus of Certifications for International Quality Standards
Site
Japan
Zeon Kasei Co., Ltd.
Zeon Polymix Inc.
Zeon Medical Inc.
Zeon North Co., Ltd.
Tokyo Zairyo Co., Ltd.
RIMTEC Corporation
Zeon Chemicals Yonezawa Co., Ltd.
Optes Inc.
Tohpe Corporation
Outside Japan
Zeon Chemicals L.P. (ZCLP)
Zeon Chemicals Europe Ltd. (ZCEL)
Zeon Chemicals (Thailand) Co., Ltd. (ZCT)
Zeon Advanced Polymix Co., Ltd. (ZAP)
Zeon Chemicals Singapore Pte. Ltd. (ZCS)

ISO9001

ISO13485

○
○
○
○
○
○
○
○
○
○
○
○
○
○

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

100
1
6
3
0
0.00
0

Basic Information on Zeon Corporation Employees (non-consolidated; does not include non-permanent employees)
No. of employees
New graduates*1
Mid-year*2
Average years of employment (yrs.)
No. of non-Japanese employees
No. of new hires

Men Women
1,429
213
52
14
42
4
17.2
13.6

As of March 31, 2021 (excluding those who resigned as of the end of March)*1 Employees that joined the company in April 2020
*2 Employees that joined the company between April 2020 and March 2021

Total
1,642
66
46
16.7
23

CSR REPORT 2021

57

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Results of Initiatives
Percentage of employees taking childcare leave (%)

100

Percentage of employees with disabilities (%)

2.72

Percentage of employees rehired after reaching the age of mandatory retirement (%)

80

Basic Information on Zeon Corporation Employees
No. of employees

3,502

No. of new graduate hires

66

As of March 31, 2021 (excluding those who resigned as of the end of March)Social Contributions
No. of employees who participated in volunteer tours to reconstructareas affected by the destructive earthquake
Recipients of the Furukawa Scholarship (number, cumulative)

Temporarilysuspended
3,290

GovernanceManagement Organization
No. of members of the Board of Directors

6

Of which, are outside directors

3

Of which, are women directors

0No. of members of the Audit & Supervisory Board5

Of which, are outside auditors

3

Risk Management
No. of reports received via the Internal Reporting System

18*Cumulative total of FY 2011–FY 2020

Internal Audits
No. of departments/companies audited

33*Zeon Corporation: 16 departments, 11 Zeon Group companies inside Japan, 6 Zeon Group companies outside JapanFor more detailed information, see the Corporate Governance Report
Corporate Governance Report (Japanese version only)
https://www.zeon.co.jp/csr/concept/pdf/200325073.pdf

CSR REPORT 2021

58

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

● Integrated Report

URL https://www.zeon.co.jp/en/csr/report/● IR Libraryhttps://www.zeon.co.jp/en/ir/library/● Corporate Governance Report (Japanese version only)

URL https://www.zeon.co.jp/csr/concept/pdf/200325073.pdf

GRI Standard Disclosure
GRI 101: Foundation 2016
General Disclosures
GRI 102: General Disclosures 2016
Organizational profile
102-1
Name of the organization
102-2
Activities, brands, products, and services
102-3
Location of headquarters
102-4
Location of operations
102-5
Ownership and legal form
102-6
Markets served
102-7
Scale of the organization
102-8
Information on employees and other workers
102-9
Supply chain
102-10 Significant changes to the organization and its supply chain
102-11 Precautionary Principle or approach102-12102-13Strategy102-14102-15External initiatives
Membership of associations
Statement from senior decision-maker
Key impacts, risks, and opportunities

Ethics and integrity
102-16 Values, principles, standards, and norms of behavior
102-17 Mechanisms for advice and concerns about ethics
GovernancePublished format or item and page number (Corporate
Report items are in blue, CSR Report items are in red)Company Profile (9)Business Overview (3)Company Profile (9)Business Overview (3)Company Profile (9)Company Profile (9)Company Profile (9)Company Profile (9), Labor Practices (28), Human Rights (48)
CSR Procurement (42)ーー
Becoming a Signatory to the United Nations Global Compact and Participatingin Subcommittee Activities(49), Chemical Product Safety Information (26)ーMessage from the President (1), Interview with the President (13)Contributing to the Realization of the SDGs through Our Business Activities(25), Progress Made in the CSR Implementation Plan as of FY 2020 (7-11)
Corporate Philosophy (1), Interview with the President (13), Zeon CSR Policy (4)Risk Management (37), Risk Management (14)Corporate Governance (35), Corporate Governance (12),Corporate Governance Report102-19 Delegating authority
ー
Executive-level responsibility for economic,
Contributing to the Realization of the SDGs through Our Business
102-20environmental, and social topics
Activities (25), CSR Management (5)102-21 Consulting stakeholders on economic, environmental, and social topics Corporate Governance Report102-22 Composition of the highest governance body and its committees Corporate Governance Report102-23 Chair of the highest governance body
Corporate Governance Report102-24 Nominating and selecting the highest governance body
Corporate Governance (35), Corporate Governance Report102-25 Conflicts of interest
Corporate Governance Report102-26 Role of highest governance body in setting purpose, values, and strategy Corporate Governance Report102-27 Collective knowledge of highest governance body
Corporate Governance Report102-28 Evaluating the highest governance body’s performance
Corporate Governance (35), Corporate Governance Report102-29 Identifying and managing economic, environmental, and social impacts Corporate Governance Report102-30 Effectiveness of risk management processes
Corporate Governance Report102-31 Review of economic, environmental, and social topics
Corporate Governance (35), Corporate Governance Report102-32 Highest governance body’s role in sustainability reporting ー102-33 Communicating critical concernsー102-34 Nature and total number of critical concernsー102-35 Remuneration policies
Corporate Governance (35), Corporate Governance Report102-36 Process for determining remuneration
Corporate Governance (35), Corporate Governance Report102-37 Stakeholders involvement in remunerationー
102-38 Annual total compensation ratioー102-39 Percentage increase in annual total compensation ratioー
Stakeholder engagement102-40 List of stakeholder groupsー102-41 Collective bargaining agreements
Labor Practices (36)102-42 Identifying and selecting stakeholdersー102-43 Approach to stakeholder engagementー102-44 Key topics and concerns raisedー102-18Governance structure

CSR REPORT 2021

59

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Reporting practice102-45 Entities included in the consolidated financial statements IR Library
102-46 Defining report content and topic Boundaries
Editorial Policy (3)102-47 List of material topics
Progress Made in the CSR Implementation Plan as of FY 2020 (7-11)
102-48 Restatements of informationー
102-49 Changes in reportingー102-50 Reporting period
Editorial Policy (3)102-51 Date of most recent reportー102-52 Reporting cycleー102-53 Contact point for questions regarding the report
Editorial Policy (3)102-54 Claims of reporting in accordance with the GRI Standards ー
102-55 GRI content index
GRI Content Index (58)102-56 External assuranceー

GRI Standard Disclosure

GRI 200 Economic Standard Series
Economic Performance
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 201: Economic Performance 2016
201-1
Direct economic value generated and distributed
IR Library, Financial and Non-financial Highlights (10)Financial implications and other risks and opportunities
201-2
TCFD-based Analysis and Reporting (31)
due to climate change
201-3
Defined benefit plan obligations and other retirement plans ー201-4
Financial assistance received from governmentーMarket Presence
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 202: Market Presence 2016
Ratios of standard entry level wage by gender compared202-1
ーto local minimum wage
202-2
Proportion of senior management hired from the local community ーIndirect Economic Impacts
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 203: Indirect Economic Impacts 2016
203-1
Infrastructure investments and services supported
ー203-2
Significant indirect economic impactsーProcurement Practices
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Fair Operating Practices (41)103-3
Evaluation of the management approachー
GRI 204: Procurement Practices 2016
204-1
Proportion of spending on local suppliersーAnti-corruption
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Fair Operating Practices (41)103-3
Evaluation of the management approachー
GRI 205: Anti-corruption 2016
205-1
Operations assessed for risks related to corruptionーCommunication and training about anti-corruption
205-2
ーpolicies and procedures
205-3
Confirmed incidents of corruption and actions takenーAnti-competitive Behavior
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Fair Operating Practices (41)103-3
Evaluation of the management approachー
GRI 206: Anti-competitive Behavior 2016
Legal actions for anti-competitive behavior, anti-trust,206-1
ーand monopoly practices
Tax
GRI 207: Tax 2019
207-1
Approach to tax
ー207-2
Tax governance, control, and risk managementー
Stakeholder engagement and management of concerns
207-3
ーrelated to tax
207-4
Country-by-country reportingーCSR REPORT 2021

60

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

GRI Standard Disclosure

GRI 300 Environmental Standards Series
Materials
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundary
103-2
The management approach and its components
103-3

Evaluation of the management approach

GRI 301: Materials 2016
301-1
Materials used by weight or volume301-2
Recycled input materials used
301-3
Reclaimed products and their packaging materials
EnergyGRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundary
103-2
The management approach and its components
103-3

Evaluation of the management approach

Environmental Philosophy and Safety Philosophy (15)Environmental and Safety Management (17)Environmental and Safety Management (17), Progress Made in the
CSR Implementation Plan as of FY 2020 (9)ーーOverview of Environmental Impacts (20)Environmental Philosophy and Safety Philosophy (15)Environmental and Safety Management (17)Environmental and Safety Management (17), Progress Made in the
CSR Implementation Plan as of FY 2020 (9)GRI 302: Energy 2016
302-1
Energy consumption within the organization
Overview of Environmental Impacts (20), Climate Change (22)302-2Energy consumption outside of the organizationー
302-3
Energy intensity
Climate Change (22)302-4Reduction of energy consumption
Climate Change (22)302-5Reductions in energy requirements of products and services ー
Water and EffluentsGRI 303: Water and Effluents 2018
303-1
Interactions with water as a shared resourceー
303-2
Management of water discharge-related impactsー303-3
Water withdrawalー303-4
Water dischargeー
303-5
Water consumption
Air, Water, and Waste Materials (25)
Biodiversity
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 304: Biodiversity 2016
Operational sites owned, leased, managed in, or adjacent to, protected304-1
ーareas and areas of high biodiversity value outside protected areas
Significant impacts of activities, products, and services on biodiversity ー
304-2
304-3
Habitats protected or restoredー
IUCN Red List species and national conservation list304-4
ーspecies with habitats in areas affected by operations
Emissions
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundary
103-2
The management approach and its components
103-3

Evaluation of the management approach

Environmental Philosophy and Safety Philosophy (15)Environmental and Safety Management (17)Environmental and Safety Management (17), Progress Made in the
CSR Implementation Plan as of FY 2020 (9)GRI 305: Emissions 2016
305-1
Direct (Scope 1) GHG emissions
Climate Change (22)305-2Energy indirect (Scope 2) GHG emissionsー305-3
Other indirect (Scope 3) GHG emissionsー305-4
GHG emissions intensity
Climate Change (22)305-5Reduction of GHG emissions
Climate Change (22)305-6Emissions of ozone-depleting substances (ODS)ー
305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions Chemical Substances Management (23), Air, Water, and Waste Materials (25)
GRI 306: Waste
GRI 306: Waste 2020
306-1
Waste generation and significant waste-related impacts
Air, Water, and Waste Materials (25)
Overview of Environmental Impacts (20), Chemical Substances
306-2
Management of significant waste-related impacts
Management (23)306-3
Waste generated
ー306-4
Waste diverted from disposal
ー
306-5
Waste directed to disposalーEnvironmental Compliance
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 307: Environmental Compliance 2016
307-1
Non-compliance with environmental laws and regulations ーSupplier Environmental Assessment
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 308: Supplier Environmental Assessment 2016308-1
New suppliers that were screened using environmental criteria ー308-2
Negative environmental impacts in the supply chain and actions taken ーCSR REPORT 2021

61

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

GRI Standard Disclosure

GRI 400 Social Standards Series
Employment
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Employment and Diversity (29)103-3
Evaluation of the management approachー
GRI 401: Employment 2016
401-1
New employee hires and employee turnover
Employment and Diversity (29)401-2
Benefits provided to full-time employees that are not provided to temporary or part-time employees ー
401-3
Parental leave
Creating Working Environments That Protect Health (35)Labor/Management Relations
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Creating Working Environments That Protect Health (35)103-3
Evaluation of the management approachー
GRI 402: Labor/Management Relations 2016
402-1
Minimum notice periods regarding operational changesーOccupational Health and Safety
GRI 403: Occupational Health and Safety 2018
Progress Made in the CSR Implementation Plan as of FY 2020 (8),403-1
Occupational health and safety management system
Environmental and Safety Education (18), Occupational Safety (38),
Safety and Accident Prevention (39)
Hazard identification, risk assessment, and incident
Environmental and Safety Education (18), Occupational Safety (38),403-2
investigation
Safety and Accident Prevention (39)
Environmental and Safety Education (18), Occupational Safety (38),403-3
Occupational health services
Safety and Accident Prevention (39)Worker participation, consultation, and communication on Environmental and Safety Education (18), Occupational Safety (38),403-4
occupational health and safety
Safety and Accident Prevention (39)
Environmental and Safety Education (18), Occupational Safety (38),403-5Worker training on occupational health and safety
Safety and Accident Prevention (39)
Environmental and Safety Education (18), Occupational Safety (38),403-6
Promotion of worker health
Safety and Accident Prevention (39)403-7Prevention and mitigation of occupational health and safety impacts directly linked by business relationships ー
403-8
Workers covered by an occupational health and safety management system ー403-9
Work-related injuries
Occupational Safety (38)403-10 Work-related ill healthーTraining and Education
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
HR Development (31)103-3
Evaluation of the management approachー
GRI 404: Training and Education 2016
404-1
Average hours of training per year per employeeー404-2
Programs for upgrading employee skills and transition assistance programs HR Development (31)404-3Percentage of employees receiving regular performance and career development reviews ーDiversity and Equal Opportunity
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Employment and Diversity (29), Human Resources System (33)103-3
Evaluation of the management approach
Progress Made in the CSR Implementation Plan as of FY 2020 (8)GRI 405: Diversity and Equal Opportunity 2016405-1
Diversity of governance bodies and employeesー405-2
Ratio of basic salary and remuneration of women to men ー
Non-discrimination
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Labor Practices (28) , Human Rights (48)103-3
Evaluation of the management approachー
GRI 406: Non-discrimination 2016406-1
Incidents of discrimination and corrective actions takenーFreedom of Association and Collective Bargaining
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Creating Working Environments That Protect Health (36)103-3
Evaluation of the management approachー
GRI 407: Freedom of Association and Collective Bargaining 2016
407-1
Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk ーChild LaborGRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Human Rights (48)103-3
Evaluation of the management approachー
GRI 408: Child Labor 2016
408-1
Operations and suppliers at significant risk for incidents of child labor ーForced or Compulsory LaborGRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Human Rights (48)103-3
Evaluation of the management approachー
GRI 409: Forced or Compulsory Labor 2016409-1
Operations and suppliers at significant risk for incidents of forced or compulsory labor ーCSR REPORT 2021

62

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

Security Practices
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 410: Security Practices 2016
410-1
Security personnel trained in human rights policies or procedures ー
Rights of Indigenous Peoples
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 411: Rights of Indigenous Peoples 2016
411-1
Incidents of violations involving rights of indigenous peoples ー
Human Rights Assessment
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Human Rights (48)
Human Rights (48), Progress Made in the CSR Implementation Plan as
103-3
Evaluation of the management approachof FY 2020 (8)GRI 412: Human Rights Assessment 2016
412-1
Operations that have been subject to human rights reviews or impact assessments ー
412-2
Employee training on human rights policies or procedures Human Rights (48)Significant investment agreements and contracts that include412-3
ーhuman rights clauses or that underwent human rights screening
Local Communities
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Community (50)103-3
Evaluation of the management approach
Community (50), Progress Made in the CSR Implementation Plan as of FY 2020 (11)
GRI 413: Local Communities 2016
Operations with local community engagement, impact
413-1
ーassessments, and development programs
Operations with significant actual and potential negative413-2
ー
impacts on local communities
Supplier Social Assessment
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Fair Operating Practices (41), Protecting Human Rights in the Supply Chain (49)
Fair Operating Practices (41), Progress Made in the CSR Implementation
103-3
Evaluation of the management approach
Plan as of FY 2020 (8, 10)
GRI 414: Supplier Social Assessment 2016414-1
New suppliers that were screened using social criteriaー414-2
Negative social impacts in the supply chain and actions taken ー
Public Policy
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 415: Public Policy 2016
415-1
Political contributionsーCustomer Health and Safety
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Chemical Product Safety Information (26)103-3
Evaluation of the management approachー
GRI 416: Customer Health and Safety 2016
416-1
Assessment of the health and safety impacts of product and service categories Quality Assurance (46)
Incidents of non-compliance concerning the health and416-2
ーsafety impacts of products and services
Marketing and Labeling
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its BoundaryーChemical Product Safety Information (26), Fair and Appropriate
103-2
The management approach and its components
Information Disclosure (44)103-3
Evaluation of the management approachー
GRI 417: Marketing and Labeling 2016
417-1
Requirements for product and service information and labeling Chemical Product Safety Information (26)
Incidents of non-compliance concerning product and417-2
ーservice information and labeling
417-3
Incidents of non-compliance concerning marketing communications ーCustomer Privacy
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its componentsー103-3
Evaluation of the management approachー
GRI 418: Customer Privacy 2016
Substantiated complaints concerning breaches of418-1
ーcustomer privacy and losses of customer data
Socioeconomic Compliance
GRI 103: Management Approach 2016
103-1
Explanation of the material topic and its Boundaryー103-2
The management approach and its components
Compliance (41)Compliance (41), Progress Made in the CSR Implementation Plan
103-3
Evaluation of the management approachas of FY 2020 (10)
GRI 419: Socioeconomic Compliance 2016
419-1
Non-compliance with laws and regulations in the social and economic area ーCSR REPORT 2021

63

Contents

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

GRI Content Index

Fair Operating Practices

Consumer Issues

Human Rights

Community

ESG Data

United Nations Global Compact Index

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

Corresponding page

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

CSR Matrix (8), Human Rights (48)

CSR Matrix (8), Human Rights (48)

LabourPrinciple 3:
Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;

CSR Matrix (8), Labor Practices (36), Human Rights (48)

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

CSR Matrix (8), Labor Practices (28), Human Rights (48)

Principle 5:
the effective abolition of child labour; andCSR Matrix (8), Human Rights (48)

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

CSR Matrix (8), Labor Practices (28), Human Rights (48)

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

CSR Matrix (9), Environment (15)Principle 8:
undertake initiatives to promote greater environmental
responsibility; andCSR Matrix (9), Environment (15)Principle 9:
encourage the development and diffusion of environmentallyfriendly technologies.

CSR Matrix (9), Environment (15)Anti-Corruption
Principle 10:
Businesses should work against corruption in all its forms,
including extortion and bribery.

CSR Matrix (10), Compliance (41), CSR Procurement (42)CSR REPORT 2021

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

Published: March 2022