Zeon GroupCSR REPORT 2017

2
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Contents
Labor Practices

Editorial Policy
Highlights

Basic Approach and Initiatives

P 43

	Highlight 1
S-SBR in tire helps fightclimate change

Targets and Results

P 44

P 4

Employment and Diversity

P 45

	Highlight 2Zeon’s energy materials supporting
lithium-ion batteries

Human Resource Development

P 47

Human Resource System

P 50

P 6

Zeon’s CSR	Creating Working Environments
That Protect Health

P 52

Fair Operating Practices

Zeon CSR PolicyP 8

CSR Management

P 9

Targets and Results

P 55

Timeline of CSR Initiatives

P 11Compliance

P 56

P 12

CSR Procurement

P 57

CSR Implementation PlanFair and Appropriate Information Disclosure P 58

Corporate GovernanceConsumer Issues

Targets and Results

P 18

Corporate Governance

P 19

Targets and Results

P 60

Risk Management

P 21

Quality Assurance

P 60

Human Rights

Environment
Environmental Philosophy

P 22

Environmental and Safety Management

P 24

Overview of Environmental Impacts

P 26

Targets and Results

P 27	‌Economic Indicators of Environmental
Performance (Environmental Accounting)

P 28

	‌Greenhouse Gas Emission
Reductions and Energy Conservation

Targets and Results	‌Upholding Positive Working Environments
by Protecting Human Rights andProhibiting Discrimination

P 63

P 63

Protecting Human Rights in the Supply Chain P 64
Community
Basic Approach and Initiatives

P 65

P 29

Targets and Results

P 65

Chemical Substances Management

P 30

CSR Core Projects

P 66

Air, Water, and Waste Materials

P 32

Environmental Performance in Logistics

P 34

Safety Philosophy

P 35

Targets and Results

P 36

Occupational Safety

P 37

Safety and Accident Prevention

P 38

Safety in Logistics

P 39

Safety Training

P 40

Chemical Product Safety Information

P 42

Safety3
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Editorial Policy
Zeon Corporation and Zeon Group (“Zeon”) publish the
Corporate Report to provide stakeholders with an overview
of Zeon’s general business activities. The Corporate Reportserves as an annual report and corporate profile, while
the CSR Report, published from 2017, serves to informstakeholders in greater detail about our approach to CSR andenvironmental activities. The CSR Report is available in PDF
format and features information on our CSR initiatives that
we have published in various forms on the Zeon corporatewebsite.
The FY 2017 edition of the CSR Report uses the core
subjects of ISO 26000, the international standard for social
responsibility, as a framework. Highlighted news in the FY
2017 report cover S-SBR used in tire rubber and energy
materials used in lithium-ion batteries. The CSR Reportprovides a comprehensive survey of our approach to CSR
and our CSR initiatives. It also serves as a communication tool
to promote dialogue with all of our stakeholders so that we
can create more positive impact in the world. We ask for yourcandid feedback and opinions to help guide our activities in
the future.

Reporting Period
April 2016 to March 2017 (includes some information after
April 2017)

Reporting Scope
Zeon Corporation and Zeon Group companies inside andoutside Japan. Some data covers only Zeon Corporation.

Reporting Scope for Environmental Data
Japan: Zeon Kasei Co., Ltd., Zeon Polymix Inc., Zeon Medical
Inc., Zeon North Co., Ltd., Tokyo Zairyo Co., Ltd., Rimtec
Corporation, Zeon Yamaguchi Co., Ltd., Zeon Chemicals
Yonezawa Co., Ltd., Optes Inc., Tohpe Corporation
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
This report was compiled while referencing the 2007
Environmental Reporting Guidelines of the Japanese Ministryof the Environment and ISO 26000.
Direct inquiries to: CSR Promotion Department (publishingdepartment), Zeon Corporation
Shin Marunouchi Center Building, 1-6-2 Marunouchi, Chiyodaku, Tokyo 100-8246, Japan
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604
http://www.zeon.co.jp/index_e.html

CSR Communication Tools
CSR Report 2017
(PDF)

Corporate Report 2017
(Printed booklet, PDF)
Zeon GroupCSR REPORT 2017

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

4
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Highlight 1 Zeon Products Making Contributions to Society

S-SBR in tire helps
fight climate change
Fuel efficiency is one important element
determining a vehicle’s value. Tires have asignificant impact on fuel efficiency. When driving
on city streets, tires account for approximately 10%of a vehicle’s fuel efficiency. This increases to morethan 20% when driving at fixed speeds such as
highway cruising speed.
Tires that meet a certain standard of performanceare called fuel-efficient tires. Zeon’s
solution-polymerized styrene-butadiene rubber(S-SBR) makes significant contributions to thisfuel-efficient performance.
Fuel-efficient tires typically weigh between 7
and 8 kilograms, of which approximately 10% is
S-SBR. In addition to rubber, tire manufacturers
use a number of materials combined with theirown technologies to make vehicle tires.
The diagram shows the different parts of a tire.
Zeon’s S-SBR is used in the tread that makes
contact with the road.

S-SBR is mainly
used here
Tread
ShoulderSidewallTire cross section

Bead●Driving condition and tire contribution to fuel efficiency
Driving condition

Tire contribution (%) to fuel efficiency

Constant driving speed

20 – 25%

Driving on city streets

7 – 10%Source: Tire Fair Trade Council (Japan) website (Japanese only)

http://www.tftc.gr.jp/performance/labeling●Tires are made from many materials

Zeon supplies S-SBR as one of the raw material rubber

S-SBR

S-SBR shipment
S-SBR is shipped in 35-kg blocks. Tire
manufacturers then crush this and combine itwith other materials.

Tire manufacturers
Kneading / Parts creation / Molding /Vulcanization / Inspection / Shipment

Materials supplied from materials manufacturers•Carbon black •Sulfur•Fiber•Natural rubber•Butadiene rubber •Silica•Compounding agents •Wire

What is rolling resistance?
A vehicle’s fuel efficiency is affected by its tires’ rolling resistance.
As the diagram on the right shows, there are three types ofresistance. Because about 90% of the resistance comes from tire
deformation, controlling tire deformation is key to reducing rolling
resistance.
Zeon reduces tire deformation by controlling the molecular
structure of S-SBR.

●Three types of rolling resistanceaffecting tires during driving❸Aerodynamic
drag❶ Tiredeformation

90%of resistance❷ Contact friction

5
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Highlight 1 Zeon Products Making Contributions to Society

Zeon’s S-SBR boasts three world-class properties❶ Wet grip performance

Stopping distance on wet surfaces⬇ Long

●Relationship between rolling resistance andstopping distance on wet surfaces
When there is low
rolling resistance, wetgrip performance islow, resulting in longer
stopping distance(good fuel efficiency but
dangerous in rainy
weather)

Short⬆

Having too little rolling resistance is dangerous, becausetires will have poor wet grip performance and be slippery on
wet road surfaces. Generally speaking, rolling resistance andwet grip have an inverse relationship—when one gets better,the other gets worse.
So tire manufacturers have been innovating in many ways
to develop tires with low rolling resistance and high wet grip
performance, including rubber composition, tire construction,and tread patterns.
Wear resistance is another important feature that tires
need in order to deliver long life.
Zeon’s S-SBR technology controls the molecular structureof the rubber to achieve high performance in the three
aspects of wet grip, rolling resistance, and wear resistance.

Low⬅ Rolling resistance ➡High

When there is highrolling resistance, wetgrip performance ishigh, resulting in shorter
stopping distance (poorfuel efficiency but safe inrainy weather)rolling resistance❸ Wear resistance❷ Low(better fuel efficiency)

Just the right softness
to grip wet roads

If the drag against a vehicle’s motion is low,
fuel consumption will also be low

Rubber softness when braking is regulated bycontrolling the ratios of styrene and butadiene, two
raw materials of S-SBR, and butadiene bonding types.

Tires better able to withstandfriction will last longer

The coupling agents at the middle and the end of
S-SBR molecule disperse the right amount of thereinforcing fillers (carbon black and silica).

The size of rubber molecules primarily affects wear
resistance, and S-SBR regulates rubber molecule
size and branching.

●S-SBR andreinforcing fillers
Reinforcing fillers

CB

CB: Carbon black
Powdered carbon. Blended
with rubber to make itstronger

Coupling
agent

Si: Silica
Powdered silicon dioxide(SiO2). Blended with rubber tomake it softer and lower
rolling resistance while
improving wet grip
performanceSi

Coupling agent

BR
S-S

Si

Reducing vehicle CO2 emissions with fuel-efficient tires
Comparing the lifecycle CO2 emissions of fuel-efficient tires and standard tires from raw materials production todisposal, fuel-efficient tires reportedly have 19% lower CO2 emissions*. Zeon is contributing to reducing overall vehicle CO2
emissions by improving the performance of fuel-efficient tires with S-SBR.
* Tyre Life Cycle CO2 Calculation Guidelines, Ver. 2 (Japan Automobile Tyre Manufacturers Association)

6
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Highlight 2 Zeon Products Making Contributions to Society

Zeon’s energy materials
supporting lithium-ion batteries
Today’s smartphone batteries have greater
capacity, output, and operating life than yesterday’s
cell phones. Lithium-ion rechargeable batteries arealso used in electric and hybrid vehicles. These
batteries have been adopted in vehicles because of
their recognized safety performance.
In the growing lithium-ion rechargeable batteriesmarket, we have been focusing on the potential ofbinders used in the batteries. Zeon’s energy
materials are one factor contributing to thewidespread use of lithium-ion rechargeable batteries
today.

Growing lithium-ion rechargeable
battery market for automobiles
Lithium-ion rechargeable batteries werecommercialized in 1991, and their market has
grown from their contributions to the spread ofdesktop and laptop computers as well as cell
phones. Lithium-ion batteries were first used in
vehicles in 2010, and by 2016 the automotive
battery market quickly grew to about the same sizeas the mobile electronics battery market. The highgrowth seen in the automotive lithium-ion
rechargeable battery market is expected to increase
further with the rising number of hybrid and electricvehicles in the market. The markets where Zeon’s
energy materials can make contributions are also
expected to expand.
●Growth in Battery Market of the Automotive andMobile Electronics
Automotive applications（MWh）

Mobile applications●PHV & EV Sales Forecast by Automaker(1,000 units)■Japan■Europe■North America

4,500

250,000

4,000
200,000

3,500
3,000

150,000■China and Asia

4 million units

Expanded Adoption in
Automotive Applications

2,500
2,000

100,000

1,500
1,000 0.72 million units

50,000

500
0

11

12

13

14

15

16

17

18

19

20 (FY)

Source: B3 Report, November 15–16

0

2016

2017

2018

2019

2020 (FY)

Source: Zeon estimates based on B3 Report

7
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Highlight 2 Zeon Products Making Contributions to Society

Zeon’s Energy Materials
Safety valve

Positive terminal

GasketSeparator

Sealants

Compounds for coating the gasket surface of cylindricallithium-ion batteries to increase the adhesive properties of
the cylinder’s exterior and cap.
Zeon’s sealants offer excellent heat resistance, cold
resistance, and electrolyte resistance. They help
prevent battery leakage to preserve battery
performance and extend operating life.

Anode tabCathodeMetal case➡Contributing to longer life

Cathode tab

AnodeAluminum foil Active material

Cathode and anode binders

Anode binder

Cathode binder
Separator

Active material Copper foil

Cathode active Conductive
materials
additive
Functional Layer Binders

Sealants

Anode active
materials

Lithium-ion rechargeable batteries comprise cathodematerials made from metal oxide including lithium, anodematerials that attract lithium ions, the electrolyte thattransfers the lithium ions between the cathode andanode, and a separator that electrically separates thecathode and anode. The basic function of the cathodeand anode binder is to bind the cathode and anodeparticulate material to the electrodes. Binders havereceived attention recently for their ability to control
interface reactions with the active material and theelectrolyte solution.
Zeon’s binders create the right amount space in theactive material for lithium ions to pass and areresistant to volume expansion and shrinking frombattery charging and discharging.

➡Contributing to longer life

Zeon’s binders not only bind, they support thechemical reactions occurring on the surface of theactive materials. This enhances the reactions toincrease battery output.

❶Preventing electrode volume expansion

Electrode swelling rate (%)

12➡Contributing to higher output

10

Condition
Charge : 4.2V,1C
Discharge : 3.0V,1C
Temperature : 60℃
Loading 13mg / cm2
Density 1.50g / cm38
6
4

Conventional
product

Functional Layer Binders

New product2*Swelling rate of electrode
thickness after pressing0
After pressing

After vacuum After immersion After 1 cycle After 100 cycles
dryingTo meet the growing needs for safety, battery structuresthat separate the heat-resistant layer or coat the electrodesurfaces to prevent internal short circuits have beencommercialized.
Zeon started this development in 2003 and released abinder for the heat-resistant layer in 2005. We are
expanding sales of this binder mainly for automotive
applications. In 2013, we released a slurry for theheat-resistant layer.

❷Improving electrolyte impregnation

Solution absorption time (sec.)Long●Preventing thermal contraction of theseparator with a functional layer binder

Conventional
product

Zeon’s binders
quickly absorb
electrolyte solution
even when electrodedensity is highThermal contraction test (150℃ for 1 hour)

New product

Short
Low

Electrode density (g/cm3)

High

With binder
Resistant to contraction(1.3% contraction)

Without binder
Contracts

8
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Zeon’s CSR
CSR Policy
CSR ManagementTimeline of CSR Initiatives
CSR Implementation Plan

P 8
P 9
P 11
P 12

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 the global environment andsustainable development through corporate activities.

Corporate Philosophy• ‌As an indispensable and valuable corporate citizen, we will
enhance our corporate value and meet the expectations ofsociety.

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

Third Principle• ‌We will establish Corporate Governance with CSR
management as a pillar• ‌All employees will act with thorough awareness of CSR andmeet 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 participation of every
individual and in every corporate activity.

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

Each principle is further defined as follows.
First Principle• We‌ will comply with laws and regulations, firmly uphold thevalues and ethics required of a corporate member of society,and cause no distress to society• We‌ will undertake enterprise-wide environment and safety
initiatives to prevent accidents and provide a sense 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 of society
Second Principle• We‌ will contribute to the realization of sustainable
development and protect the global environment through ourcore business• We‌ will encourage proactive action across the world, refine
innovative technology, and continually create new products.

CSR Code of Conduct
Our CSR Code of Conduct defines how we will take action
proactively from the standpoint of meeting the expectations ofsociety (established April 2010).
CSR Code of Conduct
http://www.zeon.co.jp/content/000257956.pdf

9
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

CSR Management
At Zeon, we regard CSR activities as all activities undertaken in order to continue being “a company trusted and valued bysociety.”In April 2010, we established our CSR Policy and CSR Code of Conduct, which defines the CSR Policy in terms of actions. In
January 2011, we established our current CSR Management Framework.

CSR Management Framework
The CSR Management Framework comprises the CSR
Conference and seven committees.
Chaired by the President and held six times a year, the
CSR Conference is the chief decision-making body on mattersrelating to CSR. The CSR Conference is held to review andfinalize committee activities, initiatives, and annual activity
plans, and to give instruction as necessary based on related

progress reports.
The committees report to the CSR Conference and advance
CSR activities in their specific areas. The seven committees
are the CSR Basic Policy Committee, the Compliance
Committee, the Risk Management Committee, the Public
Relations Committee, the Quality Assurance Committee,
the PL Committee, and the Environmental and Safety Affairs
Committee.

Zeon’s CSR Management Framework

President

CSR Conference

CSR Headquarters

CSR Coordination
Division

CSR Promotion
Department

CSR Basic
Policy Committee

CSR Promotional Committees at
Offices and Group Companies

General Affairs
Department

Compliance
Committee

Antitrust Law Regulatory
Subcommittee

Environmental & Safety
Affairs Department

Risk Management
Committee

Export Security
Control Subcommittee

Quality Assurance
Department

Public Relations
Committee

Corporate Governance
Subcommittee

Legal Affairs
Department

Quality AssuranceCommittee

Information Security
Subcommittee

Department ofCorporate Communications

PL Committee

Department ofInternal Auditing

Environmental &Safety Affairs Committee

CSR Basic Policy Committee
Purpose of establishment: To enhance CSR activities
The CSR Basic Policy Committee provides guidance andsupport for the activities of the CSR Promotional Committees
at six Zeon locations and nine Group companies in Japan.
The Committee also defines the standards for responding tocommunity requests for support and established a frameworkfor supporting social contributions.
Social contribution projects (CSR Core Projects) have been
carried out since FY 2012.
• ‌Support for reconstruction of areas affected by the Great
East Japan Earthquake• ‌“Chemistry Classrooms,” where we communicate the appealof chemistry to children

Compliance Committee
Purpose of establishment: To prevent violations of laws
and regulations
The Compliance Committee is responsible for creatingcompliance education and training programs to be
implemented by managing business divisions. The Compliance
Committee has the following four subcommittees.
For more information about its activities, see Compliance(R P56).

10
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Antitrust Law Regulatory Subcommittee
Established to prevent violations of antitrust law by officers
and employees of Zeon Group and to engage in free and faircompetition among businesses. Meetings are held as required.
Export Security Control Subcommittee
Established to ensure appropriate export and domestic
sales practices through compliance with Japan’s Foreign
Exchange and Foreign Trade Act and related laws in regard to
products sold and technologies licensed or provided by Zeon.
Meetings are held as required.
Corporate Governance Subcommittee
Established to exercise internal control over financial
reporting by Zeon Group. Meetings are held as required.
Information Security Subcommittee
Established to ensure that information held by Zeon
Group is properly managed and to protect the confidentiality,
integrity, and availability of Zeon’s information assets fromthreats in the form of willful misconduct, negligence, accidents,
and disasters. Meetings are held as required.

Risk Management Committee
Purpose of establishment: To manage business continuity
risks
The committee is responsible for systematically preventing
potential risks and managing risks that emerge. It also aims toprovide disciplined response to minimize loss in the event thata crisis does occur.
For details on its activities, see Risk Management. (R P21)

Public Relations Committee
Purpose of establishment: Effectively communicate
information about Zeon
The Public Relations Committee aims to enhance Zeon’s
profile and image through accurate communication of ourcorporate philosophy, approaches, and activities. The
Committee also ensures timely and appropriate disclosure of
information by Zeon Group.
For more information about its activities, see Fair andAppropriate Information Disclosure. (R P58)

Quality Assurance Committee
Purpose of establishment: Support quality assurance
The Quality Assurance Committee reviews quality
assurance activities and their implementation, and examines
and takes action to improve issues related to quality
assurance.
For more information about its activities, see Quality
Assurance. (R P60)

PL Committee
Purpose of establishment: Activities related to productliability
The PL Committee plans prevention activities and trainings
related to product liability and monitors that status of
emergency response.
For more information about its activities, see Quality
Assurance. (R P60)
Environmental and Safety Affairs Committee
Purpose of establishment: Activities related to theenvironment and safety
The Environmental and Safety Affairs Committee plans andproposes specific environmental and safety initiatives andmonitors the progress of addressing environmental and safetyissues.
For more information about its activities, see Environment(R P22) and Safety. (R P35)

11
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Timeline of CSR Initiatives
CSR Activities
1995:
1996:
1997:

1998:
1999:
2000:
2001:
2003:
2004:
2005:

2006:
2008:
2009:
2010:

2011:
2012:
2013:
2017:

Joined the Japan Responsible Care Council and declared our commitment to Responsible Care
Established Zeon’s Responsible Care Policy
Revised the companywide safety management system and established the Plant Technology Audit System
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)
Established the Responsible Care Policy
Established the Risk Management Rules
Published the first Responsible Care Activity Report (1999 edition)
Established the Environmental Philosophy
Amended the Risk Management Rules to the Risk Management and Compliance Rules
Established Zeon’s Seven Articles Code of Conduct
Established the Internal Reporting System
Published the Compliance Textbook I
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)
Switched from publishing the Responsible Care Activity Report to publishing the CSR Report
Published the Compliance Textbook I (Revised Edition)
Signed the Responsible Care Global Charter
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
Began using the CSR Matrix
Started the CSR Core Projects (comprehensive Zeon social contributions package)
Switched from publishing the CSR Report to publishing the Corporate Report
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 corporate website

12
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

CSR Implementation Plan
CSR Matrix
Based on the CSR Matrix used since 2011, we have established our goals for 2020 in each area and have worked to address
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 current social
circumstances, and have incorporated related initiatives into our new mid-term management plan that started in 2017. We are also
looking at how we can contribute to the United Nations’ Sustainable Development Goals (SDGs) as we incorporate CSR into ourbusiness activities.
Corporate Governance
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

Decision-making with accountability andtransparency• ‌Organizational decision-making is
conducted appropriately based on internal
regulations

Details of current activities and results(△: Ongoing, ■: Completed)‌
to develop internal regulations in△ Systemthe CSR implementation framework(Create internal rules R Apply to routine
work)

Future initiatives and targets¡Continue the CSR implementation
framework and conduct periodic reviews
based on social circumstances*For more information about current initiatives, see:• ‌Business divisions carry out their operations
using the PDCA cycle based on policies• ‌Zeon Corporation’s Basic Policy on Corporate
Governance:• ‌The process of decision-making takes into
consideration social and environmental
impacts

http://www.zeon.co.jp/content/200281514.pdf(Japanese only)• ‌Corporate Governance Report

http://www.zeon.co.jp/content/200322421.pdf(Japanese only)

Corporate governance• Corporate‌governance functions effectively
and reasonably• Many‌business processes are handledusing key business systems designed
based on internal regulations, and theoverall framework creates a very low levelof error in processes△ ‌Corporate governance reporting (statusof system for ensuring appropriateness ofbusiness affairs)¡Improve the level of corporate governanceat Zeon Group companies△ ‌Develop work systems△ ‌Conduct corporate governance activities
to satisfy Japan’s Corporate Governance
Code• When‌risks to corporate governance arise,systems operate to appropriately address
the risks under the proper authority■ ‌Study and establish business continuity
management (BCM)• ‌The business continuity management (BCM)‌Draft and periodically revise raw materials△
system operates throughout Zeon Group,
procurement plans and product supply
and various types of BCPs are revisedplans (as part of BCPs)
regularly through trainings, etc.
■ ‌Operate the Internal Reporting System• The‌Compliance Hotline is operated
appropriately

Risk management¡Revise BCPs with guidance from cases ofmajor disasters¡Broadly establish the BCM system throughdrills¡Revise the list of risks and share themacross Zeon Group¡Also include ESG risks in addition tobusiness risks

13
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Human Rights
Correlation with SDGs: Goal‌
1 (No Poverty), Goal 2 (Zero Hunger), Goal 3 (Good Health and Well-Being), and Goal 5 (Gender Equality)

Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets■ ‌Publish the Corporate Report and release ¡Familiarize business partners with the CSR
Zeon Group’s CSR Code of Conduct andCode of Conduct and CSR Procurement
CSR Procurement Guidelines on the Zeon
Guidelines•T‌ he section on respect for human rights andcorporate website
Create a database of external reports on¡prohibition of discrimination in the CSR Code‌ uild awareness in-house by having employees△Brespect for human rights at business partnersof Conduct has been shared with all Zeon
read the CSR Textbook and Compliance(called the Supply Chain CSR Survey Database)Group companies and Zeon Group business
Textbook and take e-learning courses
Enact a policy on human rights and¡partners, and compliance with the prohibitions △ ‌Conduct CSR education including CSR
establish it throughout Zeon Groupon child labor and forced labor are confirmed
informational sessions

Discrimination and vulnerable groups
Avoidance of complicity

Labor Practices
Correlation with SDGs: ‌Goal 3 (Good Health and Well-Being), Goal 4 (Quality Education), Goal 5 (Gender Equality), Goal 8(Decent Work and Economic Growth), and Goal 10 (Reduced Inequalities)

Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

Employment• ‌Employment discrimination is eliminated,and equal employment opportunities are
established (hiring)‌of non-Japanese employees (mid△ Hiring¡Expand hiring without regard for gender,
nationality, race, age, disability, or othercareer employees, exchange students)
personal attribute‌ xpand the re-employment system for employees△Ereaching the age of mandatory retirement¡Create the Supply Chain CSR Survey
Database of labor practices at business
FY 2016 Results
partners¡No. of employees rehired after mandatory
retirement: 67 (82.7%)

Labor conditions and social protections• Workplaces‌are re-energized by promoting
diversity and the fair and equitable
treatment of personnel (appointments)△ ‌Appropriately implement HR systems (self- ¡Advance diversity management
assessments, evaluation system, etc.)• ‌Appoint more women employees to higher△ ‌Support for employee skills and career
positionsdevelopment• ‌Appoint more employees who are non△ ‌Appropriately implement regulations forJapanese nationals to higher positions
harassment prevention• ‌Advance employment of older persons△ ‌MD Committee activities by women members(including dialogue between senior management • ‌Create a systematic professional
development system (including language
and women employees)
education and overseas assignments)△ ‌Promotion of employment for people with disabilities
FY 2016 Results¡Percentage of employees with disabilities: 2.20%

Labor conditions and social protections• ‌Promote work–life balance (harmony
between work and life) to enable people towork while also caring for children and/or
sick parents‌time system and discretionary labor■ Flexsystem using the project-operations model‌ raft the general employer’s action plan■D
under the Law for Measures to Support theDevelopment of the Next Generation■ ‌Acquire the Kurumin mark in Japan△ ‌Childcare support systems (shortened working
hours, overtime restrictions and exemptions,sick care leave, breast feeding time, etc.)△ ‌Return-to-work program for employees
taking childcare and caregiving leave¡Pursue improved work and time off balance(promote taking of annual paid vacation)¡Promote taking of childcare leave¡Improve use of caregiving leave¡Study a telecommuting system

14
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

Occupational health and safety‌
health management initiatives to ¡Promote the health and well-being of all△ Conduct
Zeon employees, a source of our strength
maintain and improve employees’ mental• ‌Have strengthened initiatives for workplace
and physical health, as stated in our top
health and safety and employees’ health• ‌Enhance mental health education
management policy
management, fewer overtime hours, and• ‌Implement company policies and create
significantly reduced number of employees • ‌Conduct mental health education and run
conditions for better health and well-being
with mental health issues
a committee for determining returning towork• ‌Rate of abnormal results in routine physicalexams is at or below standard• ‌Ensure labor hours management andprevent excessive work
• ‌Encourage leaving work on time and takingof annual paid vacation• ‌Detect changes in health early throughstress checks• ‌Provide guidance to improve employee
lifestyle habits
Occupational health and safety• ‌Increased trust in Zeon to protect local
communities’ safety and security byconducting emergency drills and otherinitiatives such as concluding disastercooperation agreements• ‌All worksites have earned public trustby maintaining a safety record of zeroincidents and accidents‌the Safety Management△ Implement
Improvement Master Plan
△ ‌Implement age-degradation
countermeasures, fail-safe measures in all
projects, and learn from accidents at othercompanies and plants• ‌Cross-develop lessons from cases ofdisaster‌safety incidents*1: Regularly△ Eliminate
conduct plant safety evaluations and audits△ ‌Eliminate occupational accidents△ ‌Improve safety in logistics△ ‌Conduct comprehensive emergencyresponse drills and monthly drills by ourself-defense emergency response teams■ ‌Conclude cooperation agreements withlocal governments (Cooperative Agreementfor Disaster Prevention in Industrial
Complexes)△ ‌Participate in community disaster readinessactivities¡Develop 4 safety activities across Zeon
Group (develop in the supply chain)¡Enhance dialogue with local communities
on safety, the environment, and quality

Targets¡Plant safety evaluations conducted 100%
¡Implement RC audits(once/year or more for all 4 plants)¡Eliminate safety incidents: 0 safety incidents¡Eliminate occupational accidents: 0
occupational accidents resulting in lostwork time and 0 serious accidents without
lost work time¡Improve safety in logistics: 0 accidents inlogistics¡Rate of implementing these indicators at
Group companies

FY 2016 Results¡Plant safety evaluations conducted 100%
¡Implement RC audits*2 (once/year or more
for all 4 plants)¡Eliminate safety incidents: 2 safety incidents¡Eliminate occupational accidents: 2
occupational accidents resulting in lostwork time and 0 serious accidents without
lost work time¡Improve safety in logistics: 0 accidents inlogistics
HR development and training at
workplaces• Have‌proactively enhanced awareness andmade further improvements in the areas ofhealth and safety through comprehensive
education△ ‌Provide training to enhance accident
prevention awareness(4 plants, 1 Group company)(e.g., education using accident case studies,
hands-on training)¡Develop safety education across Zeon
Group (develop in the supply chain)¡Develop the 3S’s across Zeon Group(develop in the supply chain)△ ‌Promote the 5S’s R 3S’s

*1 Safety incidents
Defined in company regulations as the occurrence of a fire, explosion, leak, damage, failure, runaway reaction, or similar event.
Or, even without an actual occurrence, the possibility of such an event if actions had been delayed, and observation of signs before such an event.
*2 RC audits
Audits based on Zeon’s Responsible Care Policy. RC audits use specialized indicators and are headed by the Environmental and Safety Affairs Department General Manager.

15
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environment
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

Pollution prevention
Climate change mitigation and adaptation• ‌All plants received public recognition for
their environmental impact reductions• ‌Proactively enhance awareness and makefurther improvements in the areas of theenvironment and energy conservation
through comprehensive education

Details of current activities and results(△: Ongoing, ■: Completed)‌
emissions of hazardous△ Reduce
substances, industrial waste, and impacts
on atmospheric and water environments‌energy conservation in■ Improve
Responsible Care audits, the Safety
Management System, the Environment
Management System based on ISO 14001,
and the Energy Conservation Promotion
Committee
FY 2016 Results¡Zero environmental incidents*¡Environmental impact reductions• ‌Acrylonitrile emissions: 4.1 tons
• ‌Final landfill disposal (non-consolidated): 1.7
tons• ‌Final landfill disposal (Zeon Group): 2.9 tons
• ‌Per-unit energy consumption: 62%• ‌Per-unit CO2 emissions: 60%
Climate change mitigation and adaptation• ‌Have developed and launched a series ofenvironmentally friendly products

Future initiatives and targets¡Environmental management using themultiple systems listed on the left

Targets¡Zero environmental incidents¡Environmental impact reduction targets• ‌Acrylonitrile emissions: 5 tons or less• ‌Final landfill disposal (non-consolidated): 5
tons or less• ‌Final landfill disposal (Zeon Group): 7.5 tonsor less• ‌Per-unit energy consumption: 64%• ‌Per-unit CO2 emissions: 67%■ ‌Develop fuel-efficient tire components, low- ¡R&D focused on environment-related social
issuestemperature toners, ZEORORA® with zero
ODP, and binders for lithium-ion batteries*Environmental incidents
Defined in internal regulations as the failure to meet environment-related rules and regulations and voluntary standards as well as situations in which standards were met but
may not have been if regular measures had been taken. And, when there is no set standard, any instance when a complaint is received or could have been received if thesituation had been left unattended.

16
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Fair Operating Practices
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 and results(△: Ongoing, ■: Completed)

Future initiatives and targets■ ‌Enact and implement management¡Compliance with internal regulations
regulations
includingthoseoninsider ngoing legal training and information¡O• ‌Are complying with all laws and regulations,trading and appropriate disclosure
sharing using the Compliance Textbook
ordinances, agreements, and internaland other materials△ ‌Comply with internal regulations including
regulations, and acting with high ethicalthe Export Security Control Regulations
standards based on being a model for¡Education on the CSR Code of Conductsociety△ ‌Appropriately implement regulations tocomply with the Act on Prohibition ofPrivate Monopolization and Maintenance ofFair Trade (Antimonopoly Act)△ ‌Compliance with the Subcontract Act andthe Act for Securing the Proper Operationof Worker Dispatching Undertakings(prevention of falsified contracts)

Fair competition■ ‌Regulations in the CSR Code of Conduct
and the CSR Procurement Guidelines• Management‌policies are broadly‌Employees read the CSR Textbook and△understood and compliance awarenessCompliance Textbook and take e-learning
is widespread. As a result, by proactively
courses
conducting CSR activities and adapting toenvironmental changes, business continuity △ ‌Conduct CSR education including holding
as well as sustainable development are
CSR informational sessions
achieved△ ‌Hold workshops on legal and regulatorycompliance△ ‌Legal compliance inspections△ ‌Regularly revise internal regulations (tosatisfy legal amendments)

Fair competition

Fair competition• Information‌is disclosed quickly andappropriately, and market value has
increased (including negative information
regarding business conditions, CSR, risks,etc.)

Social responsibility in the value chain• Select‌business partners based on
the CSR Procurement Guidelines andperiodically confirm the Guidelines’ statusof implementation△ ‌Hold financial results briefings△ ‌Publish various reports△ ‌Release information via the corporatewebsite△ ‌Hold briefings for individual investors andanalysts and respond to media inquiries△ ‌Hold press conferences for mass media
outlets and others¡Ongoing compliance education¡Revise the Compliance Textbook andthe CSR Textbook and hold related
informational meetings¡Ongoing CSR briefings by the head of the
CSR division¡Support the establishment of compliancesystems at Zeon Group companies outside
Japan (develop in the supply chain)¡Shift from compliance to sustainability(promote understanding among
management and establish among
employees)¡Become a signatory to the United Nations
Global Compact¡Enhance the corporate website (IR, CSR
information)¡Strengthen the communication system (PR)¡Release information for ESG investors△ ‌Comply with laws and regulations on¡Develop and establish the CSR Code ofcompetition including the Antimonopoly
Conduct and CSR Procurement Guidelines
Actin the supply chain△ ‌Satisfy the RoHS Directive, bans on¡Build the Supply Chain CSR Survey
Database
substances, etc.
△ ‌Purchasing following the CSR Procurement
Guidelines

17
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Consumer Issues
Correlation with SDGs: ‌Goal 9 (Industry, Innovation and Infrastructure), Goal 12 (Responsible Consumption and
Production), and Goal 16 (Peace, Justice and Strong Institutions)Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

Protecting consumers’ health and safety• ‌Both quality and cost are globally first rate‌a quality management system based ¡Establish systems to definitively reduce△ Haveon ISO 9001
complaints, process abnormalities, and defects,
prevent defective products from leaving Zeon,‌
quality assurance risks (product△ Managecreate corporate quality trusted by customers,
liability lawsuits, supply obligations, productand further improve customer satisfaction
recalls, and credibility loss due to rumors)△ ‌Improve processes (reduce losses, improve ¡Develop initiatives for chemical substanceregulations
consistency)¡Develop Zeon’s quality management‌activities for production△ Develop
system at Zeon Group companies outside
innovations
Japan and at outsourcing partners

Sustainable consumption• Developed‌and launched a series of
products that are beneficial to society△ ‌Develop business activities based on
business plans¡R&D, manufacturing, and sales focused on
consumer-related social issues

Community involvement
Correlation with SDGs: ‌Goal 1 (No Poverty), Goal 2 (Zero Hunger), Goal 3 (Good Health and Well-Being), Goal 4 (Quality
Education), Goal 9 (Industry, Innovation and Infrastructure), Goal 11 (Sustainable Cities andCommunities), and Goal 17 (Partnerships for the Goals)

Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

Community involvement, education, and culture △ ‌Develop the CSR Core Projects (social¡Develop the CSR Core Projects based oncontribution activities by Group as a whole,the defined Zeon Group activities policy• ‌Zeon’s social contributions are understood,
among
locations,andatindividual
worksites)
receive recognition, and are supported
Community involvement• ‌An organization for promoting volunteer
activities among employees including
retirees is established and employees
actively volunteer in various ways‌and enhance the system for△ Upgrade
promoting volunteer activities (establish asystem for taking leave to volunteer)‌volunteer activities and promote△ Introduce
and support participation in them(Volunteering to support reconstruction
from earthquakes, etc.)
FY 2016 Results
Number of employees participating involunteer tours: 68 (cumulative total of 365
employees)

Community involvement• ‌Guidelines for coexisting with local
communities have been created and areused, and good relations have been builtwith local communities¡Raise employee awareness for social

contributions• ‌Conduct CSR education including CSR
informational sessions• ‌Establish a social contribution policy for theentire Zeon Group (e.g., on water)¡Create a system to support volunteering(volunteer registration system, etc.)¡Create opportunities for social contributions
from exchanges with local councils of social
welfare, non-governmental organizations
and non-profit organizations‌and charity activities (Furukawa ¡Maintain and expand exchanges with local△ Donations
communities
Scholarship, expenses for community
promotions, Red Cross, etc.)•S‌ upport the reconstruction of the Tohoku region‌good community relations and△ Maintain•E‌ stablish and implement ongoing ways
have community exchanges
to support the reconstruction from thedestructive earthquake•S‌ ponsor and participate in community festivals
and events including summer festivals at plants• ‌Actively participate in community activities• ‌Community cleanup activities• ‌Revitalize social contribution activities• ‌Plant tours (receive plant visitors, internships)
through local social welfare councils•C‌ reate standards for supporting disaster recovery

18
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Corporate GovernanceTargets and Results			
P 18
Corporate Governance			P 19
Risk Management				P 21

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

Decision-making with accountability and△ ‌System to develop internal regulations in¡Continue the CSR implementationtransparency
framework and conduct periodic reviews
the CSR implementation framework (Create
based on social circumstancesinternal rules R Apply to routine work)• ‌Organizational decision-making is
conducted appropriately based on internal*For more information about current initiatives, see:regulations• ‌Zeon Corporation’s Basic Policy on Corporate• ‌Business divisions carry out their operations
Governance:
using the PDCA cycle based on policies
http://www.zeon.co.jp/content/200281514.pdf• ‌The process of decision-making takes into
(Japanese only)
consideration social and environmental• ‌Corporate Governance Report
impacts
http://www.zeon.co.jp/content/200322421.pdf(Japanese only)△ ‌Report corporate governance (status ofsystem for ensuring appropriateness ofbusiness affairs)△ ‌Develop work systems△ ‌Conduct corporate governance activities
to satisfy Japan’s Corporate Governance
Code¡Improve the level of corporate governanceRisk management■ ‌Study and establish business continuity
management (BCM)• ‌The business continuity management (BCM)
system operates throughout Zeon Group,△ ‌Draft and periodically revise raw materials
and various types of BCPs are revised
procurement plans and product supply
regularly through trainings, etc.
plans (as part of BCPs)• The‌Compliance Hotline is operated■ ‌Operate the Internal Reporting Systemappropriately¡Revise BCPs with guidance from cases ofCorporate governance• Corporate‌governance functions effectively
and reasonably• Many‌business processes are handledusing key business systems designed
based on internal regulations, and theoverall framework creates a very low levelof error in processes• When‌risks to corporate governance arise,systems operate to appropriately address
the risks under the proper authority

at Zeon Group companies

major disasters¡Broadly establish the BCM system throughdrills¡Revise the list of risks and share themacross Zeon Group¡Also include ESG risks in addition tobusiness risks

19
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

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 and otherdiverse stakeholders. To this end, we are continuing efforts toestablish a system that enables efficient and sound corporate
management through corporate governance.
Putting in place a corporate governance system allows us
to clarify the functions and roles of each organizational entity
within the company and to carry out rapid decision-making
and execution. We are also improving corporate transparency
through appropriate monitoring and disclosure of businessactivities and their effects.
Basic Policy on Corporate Governancehttp://www.zeon.co.jp/content/200281514.pdf(Japanese only)
Corporate Governance Report
http://www.zeon.co.jp/content/200322421.pdf(Japanese only)

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

Board of Directors
The Board of Directors meets, in principle, every monthwith corporate auditors in attendance to ensure compliancewith applicable laws and the Articles of Incorporation in theexecution of business. In addition to its statutory duties, therole of the Board of Directors is to make important decisions
about basic management policy, strategy, and other aspectsof business execution. The Board of Directors currently
consists of 12 directors, including three outside directors.

Executive Committee
The Executive Committee, in accordance with the Executive
Committee Rules, comprises the President and executive
officers ranked senior corporate officer and above,
meets twice a month in principle to examine and makedecisions on important business matters after due deliberation
involving consultation with attending full-time corporate
auditors. Important business matters stipulated in the Board of
Director Rules are examined and decided by the Board of
Directors.
Corporate Auditors
The Board of Corporate Auditors comprises five members,
including three outside corporate auditors. The Board reports,
discusses, and adopts resolutions on important businessmatters. In accordance with the auditing guidelines establishedby the Board of Corporate Auditors, each corporate auditor
audits directors’ execution of their duties through various
means, such as attending Board of Directors meetings andmonitoring business operations, including at subsidiaries’
operations.

20
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Corporate Governance System

General Meeting of Shareholders
Decisions/Supervision(appointments/dismissals)(Appointments/dismissals)

Board of Directors

Auditing

Executive
Committee
Department ofInternal Auditing

Corporate Auditors (Board)

Financial Auditors Auditing

Collaboration

Auditing

Financial
Audits

Personnel

Business execution &Internal Controls System

Representative
Director

Reporting

CSR Conference
CSR
Basic Policy
Committee

Internal audits(Appointments/
dismissals)(Dismissals)

Decisions/Supervision(appointments/dismissals)
Collaboration

Collaboration (assistance)

Risk Management
Committee

Reporting(external)

Compliance Committee

External
lawyers

Environmental &Safety Affairs Committee

PL Committee

Reporting(internal)

Quality AssuranceCommittee
Public Relations
Committee

Business divisions, indirect divisions, research laboratories, plants
Control/monitoring
Subsidiaries/affiliates

Reporting(internal)

Reporting(external)

21
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Risk Management
Risk Management Framework
The Risk Management Committee leads Zeon’s risk
management. Activities to prevent law violations and tocomply with laws and regulations are conducted under theCompliance Committee (For more information about theframework, see Compliance (R P56)).
Risk Management Committee FY 2016 Results• ‌Handle incidents as they occur and take steps to prevent
their recurrence• ‌Enhance risk and crisis control measures
Example: Based on business continuity plans (BCPs), holdcomprehensive, companywide disaster drills that simulate amajor earthquake

Internal reports: ‌Cumulative total of eight incidents during thelast eight years (FY 2009–2016).
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, andexecutives of contractors that work at our worksites have the right to report mattersof concern.

Internal Reporting Flowchart
Internal
Supervisor

Internal Reporting System
Zeon established its internal reporting system to quickly
collect information on potential risks and facilitate theirresolution. Per the rules on reporting risk-related information,
reports can be made not only to one’s supervisor or the
Risk Management Committee directly, but also by calling theCompliance Hotline, which connects the caller to an externallawyer. No person who reports* a matter of concern will suffer
any adverse consequences as a result of making a report.

External
Risk Management
Committee

Outside lawyer
contact

Investigating the facts andtaking countermeasures

Receiving internal reports/
Recording facts/
Communicating the results

Reporting person
Discovering risks/
Discovering complianceviolations

Compliance Hotline

Report or contact
Feedback

22
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environment
Environmental Philosophy			Environmental and Safety Management
Overview of Environmental Impacts		
Targets and Results			
Economic Indicators of Environmental
Performance (Environmental Accounting)Greenhouse Gas Emission Reductions
and Energy Conservation			Chemical Substances Management		Air, Water, and Waste Materials		
Environmental Performance in Logistics

P 22
P 24
P 26
P 27
P 28
P 29
P 30
P 32
P 34

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

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

Environmental Philosophy
Established in 2001, our Environmental Philosophy guides
our efforts to deliver products with consistent quality throughsafe and reliable production while reducing our environmental
impacts.

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

23
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

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 important priorities.
We will work continuously to enact full accident prevention countermeasures, and provide education and training 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 of chemical
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 for recycling
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 innovativetechnology 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 andproducts that take the environment and safety into account, and work to maintain and improve the quality of technology andproducts.
6. Live together with society
We will strictly observe regulations related to the environment and safety, whether the regulations come from the local community,
the national government, overseas, or organizations to which we belong. While cooperating in these activities, we will work toenhance 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, theSafety Management System, an Environment Management System based on ISO 14001, and an Occupational Health and Safety
Management System.

24
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environmental and Safety Management
We have built Environmental and Safety Management Systems based on the Responsible Care philosophy, and our plants haveobtained ISO 14001 certification. 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 and finalized 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 (ResponsibleCare) Activities Plans
Worksite managers create the Activities Plans after thecompanywide 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
●AnnualEnvironment
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
and progress
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 and the Responsible
Care dialogue.
Responsible Care Audits• ‌Audits using specialized indicators to monitor the progress of
Responsible Care activities.
• ‌These audits also include auditing conducted for worksitesthat 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 andsafety issues that are difficult to identify through audits.
Responsible Care Audits at Group Companies
Group company Responsible Care audits cover Group
company Responsible Care activities and are headed by
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.
• ‌FY 2016: Conducted for 10 worksites at 8 Group companies
Internal Plant Audits
Internal plant audits are conducts at plants.
• ‌Plant manager inspections: Inspections of the progress of
Responsible Care implementation conducted by the plant
manager (at least once/year)• ‌Environmental Management System (EMS) internal audits

25
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

ISO 14001 certification
Site

Year certified

Takaoka Plant

1998

Kawasaki Plant

1999

Tokuyama Plant

1999

Mizushima Plant

1999
Site

Year certified

Tohpe Head Office/Ibaraki Office

2000

Tohpe Mie Office

2002

Zeon Kasei

2004 (Head Office including research laboratory)

Zeon Polymix

2004

RIMTEC

2004

Optes Hokuriku Plant

2005

Optes Sano Plant

2005

Tokyo Zairyo

2006

Zeon Chemicals Yonezawa

2006

Zeon North

2007

26
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Overview of Environmental Impacts
We procure raw materials for chemical substances, and consume energy and water resources in the production and sales ofour materials and chemical substance products. While emitting substances that impact water and atmospheric environments is
unavoidable in product manufacturing, we are implementing an ongoing cycle of improvements to minimize these emissions.

INPUT
EnergyOUTPUT
Products

Head Office

870,000 tons

192,000 kL (crude oil equivalent)
Handled amount of substances
subject to the PRTR Act
800,000 tons
Water resources
18,593,000 m3

Takaoka Plant
Atmospheric emissions

Kawasaki Plant
Tokuyama Plant
Mizushima Plant

Substances subject
to the PRTR Act

27 tonsCO₂

485,000 tons

SOx

605 tons

NOx

274 tons

R&D Center

Water discharges
Total wastewater
discharge

15,919,000 m3

COD

119 tons

Total nitrogen

124 tons

Total phosphorus

1.7 tons

Industrial waste
Final landfill disposal
Recycled materials

1.7 tons
15,726 tons

27
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Targets and Results
The targets and results of our environmental conservation initiatives as part of our Responsible Care activities are as follows.
Enterprise Blueprint for 2020
To meet the expectations of society

Pollution prevention
Climate change mitigation and adaptation• ‌All plants received public recognition for
their environmental impact reductions• ‌Proactively enhance awareness and makefurther improvements in the areas of theenvironment and energy conservation
through comprehensive education

Details of current activities and results(△: Ongoing, ■: Completed)‌
emissions of hazardous△ Reduce
substances, industrial waste, and impacts
on atmospheric and water environments‌energy conservation in■ Improve
Responsible Care audits, the Safety
Management System, the Environment
Management System based on ISO 14001,
and the Energy Conservation Promotion
Committee
FY 2016 Results¡Zero environmental incidents*¡Environmental impact reductions• ‌Acrylonitrile emissions: 4.1 tons
• ‌Final landfill disposal (non-consolidated): 1.7
tons• ‌Final landfill disposal (Zeon Group): 2.9 tons
• ‌Per-unit energy consumption: 62%• ‌Per-unit CO2 emissions: 60%
Climate change mitigation and adaptation• ‌Have developed and launched a series ofenvironmentally friendly products

Future initiatives and targets¡Environmental management using themultiple systems listed on the left

Targets¡Zero environmental incidents¡Environmental impact reduction targets• ‌Acrylonitrile emissions: 5 tons or less• ‌Final landfill disposal (non-consolidated): 5
tons or less• ‌Final landfill disposal (Zeon Group): 7.5 tonsor less• ‌Per-unit energy consumption: 64%• ‌Per-unit CO2 emissions: 67%■ ‌Develop fuel-efficient tire components, low- ¡R&D focused on environment-related social
issuestemperature toners, ZEORORA® with zero
ODP, and binders for lithium-ion batteries*Environmental incidents
Defined in internal regulations as the failure to meet environment-related rules and regulations and voluntary standards as well as situations in which standards were met but
may not have been if regular measures had been taken. And, when there is no set standard, any instance a complaint is received or could have been received if the situation
had been left unattended.

There were no environmental irregularities in FY 2016.
Zeon Corporation worksites in Japan continue to maintain zero industrial waste emissions, which were first achieved in FY 2011.
Zeon Group companies achieved the target of 0.3% final landfill volume based on the FY 2007 volume of more than 600 tons. We
will continue to maintain this final landfill rate. We will continue to reduce our unit energy consumption and CO2 emissions targetingan average reduction of 1% per year.

28
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

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 2016 as recommended in the Environmental 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, 2016 to March 31, 2017

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 andinnovative, energy-efficient processes.
Environmental conservation costs

FY 2016 (million JPY)

Category

Investment
amount(1) Costs within the business area

Expense

429

3,205

• Pollution prevention costs

352

2,456

• Global environmental protection costs

50

138

• Resource recycling costs

26

611

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

27

125

(4) R&D costs

64

918

(5) Social activities costs

048(6) ‌Environmental damage
response costs

0

68

520

4,363

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

Economic Effects Resulting from Environmental
Conservation Measures
Effects

Unit: million JPY

Cost reductions from energy savings

13

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

1,325

Total

1,338

Environmental and Safety Investment

Breakdown

Total

Economic Effects
We strive to use oils and other byproducts from our
production and manufacturing processes in economicallyeffective ways such as converting them to fuel and recycling
them, or by other means. We are also working to recycle themetal resources in empty drums and containers. To conserve
energy, we recover heat generated in heat-intensive distillation
processes.

FY 2016
results

Compared
to FY 2015

SOx emissions (tons)

605

-18

NOx emissions (tons)

274

+21

COD emissions (tons)

119

±0

CO2 emissions (tons)

485,059-67,881Industrial waste sent to landfills (tons)

1.7

-1.8

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

27.4

-2.7

In addition to environmental investment related to facilities
to prevent pollution and conserve energy and resources, we
strive to improve safety through ongoing safety investment
aimed at improving safety and eliminating hazards.
Unit: million JPY
Environmental conservation

471

Safety related

1,972

Total

2,443

29
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Greenhouse Gas Emission Reductions and Energy Conservation
Initiatives to Reduce Greenhouse Gas (CO2) Emissions
By FY 2020, we aim to reduce CO2 emissions from fuels
defined in Japan’s Act on the Rational Use of Energy (“Energy
Conservation Act”) to 80% of FY 1990 CO2 emissions
levels. We added CO2 emissions reduction outcomes to theevaluation parameters of ZΣ* in FY 2010, and are working to
reduce CO2 emissions companywide.
We achieved our annual CO2 emissions target for FY 2016
with emissions of approximately 485,000 tons.
*ZΣ: Initiatives to improve our corporate soundness that require the full mobilizationof Zeon Group capabilities. These initiatives used to be called “ZΣ Activities,” butafter evolving and becoming established, they are now simply referred to as “ZΣ.”

Initiatives to Conserve Energy
In FY 2016, we consumed energy equivalent to burning
approximately 192,000 kiloliters of crude oil, or 62% of our
FY 1990 baseline. We plan to improve our per-unit energy
consumptions indicator* by an average of 1% per year going
forward.
In FY 2009, we achieved the JCIA target (for FY 20082012) of per-unit energy consumptions indicator of 80% of the
FY 1990 baseline, and have maintained this level through FY
2015. Since FY 2010, we have been implementing a plan to
improve our average annual per-unit energy consumptions by
1% per year.

Change in CO2 Emissions*‌Per-unit energy consumptions indicator: Guideline for making energy-efficiency
comparisons. Here, energy-efficiency comparisons use FY 1990 as the baseline. (FY
1990=100)

CO2 Emissions(1,000 tons)

Energy Consumption and Per-unit consumptions indicator

700
600
500
400

498,451

517,803 506,348

552,940

Energy consumptions(1,000 kL)

485,059

200

200

150

100

100
2012

2013

2014

2015

2016

110

250

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

300

0Per-unit

300

FY

189

194

193

215

100
192

90
80

Target (80% of FY 1990)
68

65

68

70

62

63

60

50
0

2012

2013

2014

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

2015

2016

FY

50

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

30
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Chemical Substances Management
PRTR Initiatives Chemical Substances

Atmospheric Emission Reductions of Hazardous

We are implementing companywide initiatives to reducerelease and transfer of substances subject to Japan’s PRTRAct.

We are systematically reducing emissions of butadiene andacrylonitrile, 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 2016)

Butadiene Emissions

Amount released
into atmosphere:(26.6 tons)

Total release volume(27.4 tons)

Amount released
into water:(0)
Release andTransfer Volumes
Total(204.6 tons)

Amount released
into soil:(0)

Total transfer volume(178.1 tons)

Transfer volume:(178.1 tons)
Amount to landfill:(0)

Amount of release(tons)

37.8

5.0
3.9

4.0

3.3

3.7

3.0

3.6
2.7

2.0
1.0
0

2012

2013

2014

2015

2016

FY

Acrylonitrile Emissions

Release of Substances Subject to the PRTR Act

40

Atmospheric emissions(tons)

Atmospheric emissions(tons)

33.5

15

36.7
30.1

30

13.6
11.7

27.4

11.9

10

20

5.5

5

4.1

10
0

0

2012

2013

2014

2015

2016

FY

2012

2013

2014

2015

2016

FY

31
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Detailed Release and Transfer Volumes of Substances Subject to the PRTR Act (FY 2016, 4 plants + R&D Center)
Government
designatedno.

Substance

Handledamount(tons)

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

Transfer
volume(tons)

2

Acrylamide

79.0

0.0

0.0

0.0

0.0

3

Ethyl acrylate

2,095

5.7

0.0

5.7

0.0

4

Acrylic acid and its water-soluble salts

65.3

0.0

0.0

0.0

0.0

6

2-Hydroxyethyl acrylate

19.3

0.0

0.0

0.0

0.0

7

n-Butyl acrylate

2,969

1.7

0.0

1.7

6.8

8

Methyl acrylate

10.9

0.3

0.0

0.3

0.0

9

Acrylonitrile

24,483

4.1

0.0

4.1

0.0

13

Acetonitrile

0.0

0.0

0.0

0.0

0.0

20

2-Aminoethanol (monoethanolamine)

7.0

0.0

0.0

0.0

0.0

28

Allyl alcohol

0.0

0.0

0.0

0.0

0.0

29

1-Allyloxy-2,3-epoxypropane

17.9

0.0

0.0

0.0

0.2

30

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

1,146

0.0

0.0

0.0

0.0

36

Isoprene

127,664

3.6

0.0

3.6

0.1
0.0

53

Ethylbenzene

54.7

0.0

0.0

0.0

56

Ethylene oxide

754

0.0

0.0

0.0

0.0

59

Ethylenediamine

3.6

0.0

0.0

0.0

0.0
0.0

60

Ethylenediamine tetraacetic acid

19.0

0.0

0.0

0.0

65

Epichlorohydrin

0.0

0.0

0.0

0.0

0.0

68

1,2-Epoxypropane

27.2

0.0

0.0

0.0

0.0

2,220

0.2

0.0

0.2

3.0

172

0.1

0.0

0.1

0.0

140,527

0.2

0.0

0.2

0.4

80

Xylene134

Vinyl acetate190

Dicyclopentadiene

202

Divinylbenzene

6.1

0.0

0.0

0.0

0.0

203

Diphenylamine

4.3

0.0

0.0

0.0

0.0
0.0

207

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

291

3.7

0.0

3.7

218

Dimethylamine

0.3

0.0

0.0

0.0

0.0

220

Water-soluble salts of dimethyldithiocarbamic acid

16.5

0.0

0.0

0.0

1.1

230

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

28.7

0.0

0.0

0.0

0.0

232

N,N-dimethylformamide

246

0.0

0.0

0.0

1.4

240

Styrene38,710

0.5

0.0

0.5

18.1

243

Dioxins

0.0

0.0

0.0

0.0

0.0

259

Tetraethylthiuram disulfide

15.0

0.0

0.0

0.0

0.0
0.4

274

Tert-dodecanethiol

737

0.0

0.0

0.0

277

Triethylamine

32.6

0.0

0.0

0.0

0.0

296

1,2,4-Trimethylbenzene

343

0.0

0.0

0.0

0.0

297

1,3,5-Trimethylbenzene

300

Toluene

343

0.0

0.0

0.0

0.0

3,815

0.2

0.0

0.2

137.0
0.0

302

Naphthalene

432

0.0

0.0

0.0

308

Nickel

87.4

0.1

0.0

0.1

0.0

309

Nickel compounds

110.4

0.0

0.0

0.0

0.0

333

Hydrazine

0.3

0.0

0.0

0.0

0.0

338

2-Vinylpyridine

91.4

0.0

0.0

0.0

0.0

349

Phenol351

1,3-Butadiene

95.8

0.0

0.0

0.0

0.0

446,258

3.6

0.0

3.6

0.0
0.0

355

Bis (2-ethylhexyl) phthalate

109

0.0

0.0

0.0

392

n-Hexane

550

1.9

0.0

1.9

9.2

395

Water-soluble salts of peroxodisulfuric acid

128

0.0

0.0

0.0

0.0

400

Benzene

4,496

0.0

0.0

0.0

0.0

407

Polyoxyethylene alkyl ether

47.5

0.0

0.0

0.0

0.0

408

Polyoxyethylene octylphenyl ether

5.9

0.0

0.0

0.0

0.0

410

Polyoxyethylene nonylphenyl ether

10.2

0.0

0.0

0.0

0.0
0.0

411

Formaldehyde

2.0

0.0

0.0

0.0

414

Maleic anhydride

94.5

0.6

0.0

0.6

0.0

415

Methacrylic acid

1,941

0.0

0.0

0.0

0.0

417

2,3-Epoxypropyl methacrylate

7.9

0.0

0.0

0.0

0.0

420

Methyl methacrylate

378

0.1

0.0

0.1

0.4

436

a-Methylstyrene

299

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. Dioxins are expressed in units of mg-TEQ.

32
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

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 and conversion
to liquid natural gas (LNG).
The quality of our plant wastewater complies with the standards of the Water Pollution Prevention Act and agreements with local
authorities (voluntary management standards).

SOx Emissions

NOx Emissions
Amount of release(tons)

Amount of release(tons)

700

624

600
476

500
400

400

605

336

509

300

334

272

274

241

253

2014

2015

2016

119

119

119

2014

2015

2016

200

300
200

100

100
0

2012

2013

2014

2015

2016

FY

Total Wastewater Discharge

17

2012

2013

FY

COD Discharge
Amount of release(tons)

Amount of release(million m3)

20

0

150

18
16

16

16

15

127

129

2012

2013

100

10

50

5
0

2012

2013

2014

2015

2016

FY

Total Phosphorus Discharge0

Total Nitrogen Discharge

Amount of release(tons)

Amount of release(tons)

3.0

200

2.5

2.4

176
158

2.1

167
142

150

2.0

1.6

1.5

FY

1.6

1.7

124

100

1.0
50

0.5
0

2012

2013

2014

2015

2016

FY

0

2012

2013

2014

2015

2016

FY

33
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Waste Reductions
In terms of reducing the amount of industrial waste destinedfor final landfill disposal, Zeon Corporation worksites aremaintaining a record of zero emissions (less than 0.1% of theindustrial waste generated in FY 2007) since achieving thistarget in FY 2011.
Zeon Group companies had a final landfill volume ofmore than 600 tons in FY 2007, but since FY 2012 this has
been reduced to around 10 tons, or roughly 0.4% of theindustrial waste generated in FY 2007. This is considered 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)

12

11

9
6.5

6
3.5

3

1.7

1.3

0

2012

2013

2014

2015

2016

FY

34
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environmental Performance in Logistics
To more effectively use and recycle resources, we arepromoting recovery and recycling of wood, resin, and metal
pallets and containers used to transport various goods. We
also use a large number of recycled resin transportation
pallets.
In FY 2015, we reduced the weight of our metal box pallets
by approximately 7% to more effectively use metal resources
and reduce their environmental impact.
In FY 2016, we promoted collecting metal box pallets
outside Japan and began collecting flexible bags to more
effectively use resources and reduce their environmental
impact.

Lightweight metal box pallet

Folded pallets after use

Compliance with the revised Energy Conservation Act
As a specified consigner under the revised Energy
Conservation Act, we are working to rationalize the use ofenergy together with partner companies involved in productand raw materials transportation. To date, we have studied
and implemented improvements in loading efficiency, modal
shift to rail and ship transportation, and truck and ship fuelefficiency.

35
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

SafetySafety Philosophy				P 35
Targets and Results			
P 36
Occupational Safety			
P 37
Safety and Accident Prevention		
P 38
Safety in Logistics			
P 39
Safety Training				P 40
Chemical Product Safety Information
P 42

Safety Philosophy
Responsible Care refers to a voluntary initiative bybusinesses that manufacture or handle chemical substances
to achieve continuous improvement in health, safety, andenvironmental (HSE) performance across the entire life cycleof such substances—from development and manufacture,through distribution and use, and ending in final consumption
or disposal—based on the principles of independent decisionmaking and personal responsibility. These businesses publicly
commit to Responsible Care in their business policies,
implement HSE-related actions, and strive to improve their
HSE performance.
At Zeon, we have practiced the Responsible Carephilosophy as a member of the Japan Responsible CareCouncil (now the Japan Chemical Industry Association
Responsible Care Committee) since its inception in 1995.
In 1998 we established our own Responsible Care Policy(R P23) to define our conduct guidelines based on the
Responsible Care philosophy.

Safety Philosophy
A consistently safe work environment is the foundation of all
production activities. We established our Safety Philosophy in1997 to guide our safety activities.
Safety Philosophy (Established March 1997)
1. Safety is the foundation of all business activities and thegreatest priority
2. Our basic belief regarding safety is that we can prevent all
accidents
3. Safety will be achieved by performing the 5Ss* and when
everyone takes responsibility for their own actions*5Ss
Seiri (sort), seiton (straighten), seisou (scrub), seiketsu (systematize), and shitsuke(sustain)

36
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Targets and Results
The targets and results of our safety initiatives as part of our Responsible Care activities are as follows.

Overview of Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

Occupational health and safety‌
health management initiatives to ¡Promote the health and well-being of all△ Conduct
Zeon employees, a source of our strength
maintain and improve employees’ mental• ‌Have strengthened initiatives for workplace
and physical health, as stated in our top
health and safety and employees’ health• ‌Enhance mental health education
management policy
management, fewer overtime hours, and• ‌Implement company policies and create
significantly reduced number of employees • ‌Conduct mental health education and run a
conditions for better health and well-being
with mental health issues
committee for determining returning to work
• ‌Rate of abnormal results in routine physical • ‌Ensure labor hours management andexams is at or below standard
prevent excessive work
• ‌Encourage leaving work on time and takingof annual paid vacation• ‌Detect changes in health early throughstress checks• ‌Provide guidance to improve employee
lifestyle habits
Occupational health and safety• ‌Increased trust in Zeon to protect local
communities’ safety and security byconducting emergency drills and otherinitiatives such as concluding disastercooperation agreements• ‌All worksites have earned public trustby maintaining a safety record of zeroincidents and accidents‌the Safety Management△ Implement
Improvement Master Plan‌
△ Implement age-degradation countermeasures,
fail-safe measures in all projects, and learn
from accidents at other companies and plants•C‌ ross-develop lessons from cases of disaster1△ ‌Eliminate safety incidents* : Regularly
conduct plant safety evaluations and audits△ ‌Eliminate occupational accidents△ ‌Improve safety in logistics△ ‌Conduct comprehensive emergencyresponse drills and monthly drills by ourself-defense emergency response teams■ ‌Conclude cooperation agreements withlocal governments (Cooperative Agreementfor Disaster Prevention in Industrial
Complexes)△ ‌Participate in community disaster readinessactivities¡Develop 4 safety activities across Zeon
Group (develop in the supply chain)¡Enhance dialogue with local communities
on safety, the environment, and quality

Targets¡Plant safety evaluations conducted 100%
¡Implement RC audits(once/year or more for all 4 plants)¡Eliminate safety incidents: 0 safety incidents¡Eliminate occupational accidents: 0
occupational accidents resulting in lostwork time and 0 serious accidents without
lost work time¡Improve safety in logistics: 0 accidents inlogistics¡Rate of implementing these indicators at
Group companies

FY 2016 Results¡Plant safety evaluations conducted 100%
¡Implement RC audits*2 (once/year or more
for all 4 plants)¡Eliminate safety incidents: 2 safety incidents¡Eliminate occupational accidents: 2
occupational accidents resulting in lostwork time and 0 serious accidents without
lost work time¡Improve safety in logistics: 0 accidents inlogistics
HR development and training at
workplaces• Have‌proactively enhanced awareness andmade further improvements in the areas ofhealth and safety through comprehensive
education△ ‌Provide training to enhance accident
prevention awareness(4 plants, 1 Group company)(e.g., education using accident case studies,
hands-on training)¡Develop safety education across Zeon
Group (develop in the supply chain)¡Develop the 3S’s across Zeon Group(develop in the supply chain)△ ‌Promote the 5S’s R 3S’s

*1 Safety incidents
Defined in company regulations as the occurrence of a fire, explosion, leak, damage, failure, runaway reaction, or similar event.
Or, even without an actual occurrence, the possibility of such an event if actions had been delayed, and observation of signs before such an event.
*2 RC audits
Audits based on Zeon’s Responsible Care Policy. RC audits use specialized indicators and are headed by the Environmental and Safety Affairs Department General Manager.

37
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

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 and stable production systems.
We focus on 5S safety inspections*1, hazard detection*2
activities, and identifying near-miss incidents*3 as well as
hands-on training.
*1 5S Safety Inspections
Inspections that evaluate operations where safety is an integral part of maintaining
the 5 S’s (sort, straighten, scrub, systematize, sustain) and that are designed to
identify 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, and in turn
recognize activities that would place them in danger.
*3 Near-miss incidents
Events or phenomena that have the potential to result in an accident, injury, or otherloss.

Record of Occupational Accidents

5S Safety Inspections
5S safety inspections assess operations where safety is
critical to maintaining the 5S’s.
In FY 2016, we conducted 5S Safety Inspections two times.
Environment and Safety managers from all plants participate
in the inspections so that they can learn about 5S activities atother plants and develop them at their own plant.
The Environmental and Safety Affairs Department
conducted Group company inspections at 11 worksites.

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

Lost Work Time Accident Rate* (Zeon Corporation)
Rate

1.20
1.00

1.00
×

0.80

0.85

0.60

0.46

0.94
×
0.82
0.46

1.06
×

0.76

1.06
×

0.81

Identifying Near-Miss Incidents

×

1.15

Near-miss incidents are events that have the potential toresult in a major accident, injury, or other 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). Collecting and sharing
data on near-miss incidents that occur in our operations canaddress the causes of serious accidents and in turn lead to
accident prevention.

0.88
0.47

0.46

0.40
0.20
0

0.00

2012

× Manufacturing

2013

2014

Specialty Chemicals

2015

2016

FY

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

38
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Safety and Accident Prevention
Dialogue between Management and Plants
To monitor progress on priority issues, senior managers at
Zeon visit plants on a regular basis to conduct inspections,hold informational meetings with workers, and brief workers
on annual policies. They also visit plants on other occasions
to communicate directly with plant workers. Senior managers
visited plants over 54 days in FY 2016.

Safety Management Efforts Led by Top Management
Each year, top management develops the Safety
Management Improvement Master Plan and leads initiatives toimprove our Safety Management System based on the belief
that safety is the highest priority.
We are carrying out the priority initiatives on an ongoingbasis using the following simple guidelines.
1. ‌Reliable operation of equipment and systems to prevent
errors (“Never rely on ‘maybe’ or ‘should’”)
2. ‌Plant degradation countermeasures and fail-safe
measures* (“Good judgment 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, or careless mistakes
made by experienced employees.

Safety Inspector Certification at All Sites
Certified Safety Inspector*1
Obtained by all plants (Takaoka, Kawasaki, Tokuyama, andMizushima)
Certified Completion and Process Safety Inspector*2
Obtained by Kawasaki, Tokuyama, and Mizushima plants.
The certification renewal process includes reviews ofsafety inspection and completion inspection methods as wellas inspection management, and verification that our Safety
Management System meets the regulatory requirements
defined in Japan’s High Pressure Gas Safety Act and thatthese systems are operating properly.

To more reliably ensure safety at all plants, we employ
our Safety Management System and identify the sources ofhazards and implement measures to mitigate risks at all of ourplants.
*1 Certified Safety Inspector
Certification granted by Japan’s Minister of Economy, Trade and Industry basedon the High Pressure Gas Safety Act to allow qualified individuals to perform
safety inspections to determine whether specified facilities comply with technicalstandards, either while the equipment is running or while it is stopped.
*2 Certified Completion and Process Safety Inspector
Certification granted by Japan’s Minister of Economy, Trade and Industry basedon 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 specified modifications comply with technicalstandards.

Certification Status
Plant

Obtained Certified
Safety Inspector status

Obtained Certified
Completion andProcess Safety
Inspector status

Takaoka Plant

2000(renewed in 2015)

Kawasaki Plant

1998(renewed in 2012)2008(renewed in 2012)

Tokuyama Plant

2007(renewed in 2016)2012(renewed in 2016)

Mizushima Plant

2006(renewed in 2016)2006(renewed in 2016)—

Improving Plant Safety
We conduct Plant Safety Evaluations and Plant Safety
Inspections to further raise the level of safety at plants andprevent serious accidents and disasters from occurring.
Plant Safety Evaluations
We verify plant safety at the design stage when commissioning
a new plant or upgrading an existing one.
Plant Safety Inspections
For existing plants, while inspecting work areas, we ensurethat all sources of danger have been identified and review pastdecisions regarding the need for safety measures.

39
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Occurrences of Accidents and Injuries
FY 2016: Safety incidents* 2 (High-pressure gas leaks 2)
Although these incidents did not result in human casualties,
damage to equipment, or impacts on the environment, we
set up an accident investigation board for each incident. The
boards are investigating the direct and indirect causes of
the incidents and developing countermeasures to prevent
recurrences.
*Safety incidents
Defined in company regulations as the occurrence of a fire, explosion, leak,damage, failure, runaway reaction, or similar event. Or, even without an actual
occurrence, the possibility of such an event if actions had been delayed, andobservation of signs before such an event.

Safety in Logistics
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 suchproducts.
We also conduct reporting and communication training fordrivers, and each plant offers training on product handling toprevent accidents in logistics.
*Yellow Card
Document describing response methods when an accident occurs duringtransportation, as established by the Logistics Safety Management Policy fromthe Japan Chemical Industry Association. The document is called a Yellow Card
because it is printed on yellow paper.

Disaster Preparedness Training
Worksites conduct disaster-response drills each year basedon various hypothetical scenarios. The drills include contacting
and reporting simulations, first-aid treatment, and rescue andfirefighting activities. We conduct full-scale disaster-response
drills jointly with local firefighting agencies when possible.
These drills allow us to verify that our standards are
sufficient and the operability of emergency equipment (e.g.,fire trucks, fire hydrants, broadcasting equipment). When we
encounter problems, we take steps to quickly resolve them tomaintain the highest level of disaster-response preparedness.

40
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Safety Training
Systematic Safety Training
Safety training programs are implemented in accordancewith the annual plan set by each worksite.
The corporate Environmental and Safety Affairs Department
organizes companywide safety training programs, while each
worksite provides training tailored to its own operations.

Training Organized by the Head Office
The corporate Environmental and Safety Affairs Department
organizes educational programs conducted by the Head
Office and carries out training activities at worksites. Througheducation and training, we strive to eliminate incidents andoccupational accidents and minimize damage should an
incident or accident occur. We want our worksites to betrusted by their communities.
Manager and Supervisor Trainings
New line manager training
Training for new Manufacturing Department managers,
Equipment Control managers, and Environment and Safety
managers are held every year.
The training covers safety activities based on Zeon’ssafety systems, safety-awareness understanding that safety
managers need, environment and safety-related laws andrelevant internal regulations, an overview of the “four laws ofsafety,” and the Safety Management System.
In FY 2016, the training was held once for two new
managers.
Safety Education by Former Plant Managers
Accident case study-based education program
Held since FY 2003, this education program aims toprevent the lessons of past accidents from fading frommemory, to apply these lessons in work operations, to raise
workers’ awareness of safety, and to increase their sensitivity
to potential risks.
Former plant managers give presentations for all plant
employees. They cover specific examples of accidents at Zeonand other companies to communicate the grim consequencesof such accidents, and provide instruction on how toanalyze risk factors as well as countermeasures to prevent
recurrences.
In FY 2016, former plant managers presented cases of
explosion and fire, cases in processing fields based on theirexperience, and broader trends in safety management.

Accident case study-based education program (Mizushima Plant)

Accident case study-based education program (Tokuyama Plant)

Safety Training for New Employees
New employees hired by the Head Office
We present cases of worksite accidents during on-thejob plant training to emphasize the importance of following
worksite rules.
New employees hired by plants
Education and training on safety basics.

41
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environment and Safety Education andTraining Organized by Worksites
Education on laws and regulations related to safety andthe environment
Each plant conducts educational programs according to anannual plan.
Training activities
A range of training drills are conducted according to anannual plan. After the training drills, problems are identified
to systematically make improvements and increase plants’emergency-response capacity.
• ‌Comprehensive disaster-response drills: We hold disasterresponse and evacuation drills once or twice a year toprepare for earthquakes and tsunamis.
• ‌Individual drills: Disaster-response drills and reporting
drills by emergency response teams of our self-defense
emergency-response organization
Safety Workshops
The Safety Workshop held at Mizushima Plant gives
participants practical experience in various safety rules.
The Workshop tests participants on their understandingof plant safety rules defined in the Mizushima Plant Safety
Workshop Operating Standards, and uses displays andactivities to deepen plant employees’ and partner companies’
understanding of safety rules.

Display showing how to use scaffolding in the Safety Workshop

Hands-on Safety Education
In FY 2014, Kawasaki Plant began conducting a hands-on
safety education program, which expanded to the Tokuyama,
Mizushima, and Takaoka plants in FY 2015. The program isheld for employees at research laboratories, resident partnercompanies, and nearby Zeon Group companies. In FY 2016,
we conducted hands-on safety education for employees
to experience the sensation of getting caught or trapped inequipment, electrostatic explosions and burns, shocks fromresidual pressure in couplers, falling objects, and loose and cut
safety belts.
We will continue to systematically develop this program withrepeated opportunities to experience it.

Getting caught in a roller during hands-on safety education

42
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Chemical Product Safety Information
We collect and provide safety information on our chemical products and conduct hazard assessments.

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.
For a portion of our products, we disclose safety-related
information in the form of safety abstracts, which are releasedon the GPS/JIPS*2 website (ICCA GPS Chemicals Portal Site).

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

*1 GHS
Globally Harmonized System of Classification and Labeling of Chemicals*2 GPS/JIPS
Global Product Strategy/Japan Initiative of Product StewardshipGPS is a new voluntary initiative related to the management of chemicals promotedby the International Council of Chemical Associations (ICCA). In Japan, the JCIA
promotes GPS under the JIPS and encourages member companies to participate.

*3 LRI
Long-range Research Initiative: Activities to provide long-term support for researchon the impact of chemical substances on health and the environment. A program
under the auspices of the International Council of Chemical Associations (ICCA) thatis carried out with funding from LRI member companies and in cooperation withthe chemical industries of Japan, the United States, and Europe (specifically, theJapan Chemical Industry Association, American Chemistry Council, and European
Chemical Industry Council).
*4 IISRP
International Institute of Synthetic Rubber Producers

43
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Labor Practices
Basic Approach and Initiatives		
Targets and Results			
Employment and Diversity			
Human Resource Development		
Human Resource System			Creating Working Environments
That Protect Health			

P 43
P 44
P 45
P 47
P 50
P 52

Basic Approach and Initiatives
A Company of Which Each and Every One of Its Employees Can Be ProudIn our CSR Code of Conduct, we stipulate respect for human rights and prohibit discrimination. We strive to be a company that
understands and accepts diverse values, and where no person is discriminated against based on gender, age, nationality, or otherattribute.
Based on this policy, we aim to encourage employees to continually evolve by pursuing high goals based on independent
thinking, by building a human resource system in which employees take on challenges without fear of failure and gain a sense ofaccomplishment, and by creating comfortable working environment that values dialogue.
*At Zeon, we use “employee” to describe all workers, including both permanent and part-time workers.

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

Human resource system
in which employees takeon challenges without
fear of failure and gain asense of accomplishment

A comfortable working
environment thatvalues dialogue

Promoting diversity
Respect for human rights, prohibition of discrimination

44
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Targets and Results
We have set Enterprise Blueprint for 2020 targets in each area of activity and are conducting initiatives needed to achieve ourgoals.

Enterprise Blueprint for 2020
To meet the expectations of society

Employment• ‌Employment discrimination is eliminated,and equal employment opportunities are
established (hiring)

Details of current activities and results(△: Ongoing, ■: Completed)‌
of non-Japanese employees (mid△ Hiring
career employees, exchange students)‌the re-employment system for△ Expand
employees reaching the age of mandatory
retirement

Future initiatives and targets¡Expand hiring without regard for gender,
nationality, race, age, disability, or otherpersonal attribute¡Create the Supply Chain CSR Survey

Database of labor practices at business
partners

FY 2016 Results¡No. of employees rehired after mandatory
retirement: 67 (82.7%)

Labor conditions and social protections• Workplaces‌are re-energized by promoting
diversity and the fair and equitable
treatment of personnel (appointments)△ ‌Appropriately implement HR systems (self- ¡Advance diversity management
assessments, evaluation system, etc.)• ‌Appoint more women employees to higher△ ‌Support for employee skills and career
positionsdevelopment• ‌Appoint more employees who are non△ ‌Appropriately implement regulations forJapanese nationals to higher positions
harassment prevention• ‌Advance employment of older persons△ ‌MD Committee activities by women• ‌Create a systematic professional
members (including dialogue between
development system (including language
senior management and women employees)
education and overseas assignments)△ ‌Promotion of employment for people withdisabilities
FY 2016 Results¡Percentage of employees with disabilities: 2.20%

Labor conditions and social protections• ‌Promote work–life balance (harmony
between work and life) to enable people towork while also caring for children and/or
sick parents‌time system and discretionary labor■ Flexsystem using the project-operations model‌ raft the general employer’s action plan■D
under the Law for Measures to Support theDevelopment of the Next Generation■ ‌Acquire the Kurumin mark in Japan△ ‌Childcare support systems (shortened
working hours, overtime restrictions andexemptions, sick care leave, breast feeding
time, etc.)△ ‌Return-to-work program for employees
taking childcare and caregiving leave

Targets and results for occupational safety are published in Safety. (R P36)

¡Pursue improved work and time off balance(promote taking of annual paid vacation)¡Promote taking of childcare leave¡Improve use of caregiving leave¡Study a telecommuting system

45
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Employment and Diversity
Zeon Group respects diversity and strives to be a company in which everyone in our diverse team of employees is able to fully
demonstrate their capacities. Our employees today have a range of backgrounds and perform their duties regardless of gender,
age, and nationality.

Re-employment of Employees Reaching
Mandatory Retirement

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

Women

Total

1,407

183

1,590

New
graduates *1

28

11

39

Mid-year *

2

3

5

15.47

12.89

15.3

2

Average years of employment

As of March 31, 2017 (excluding those who resigned as of the end of March)
Includes 12 non-Japanese employees (6 men and 6 women)*1. Employees that joined that company in April 2017
*2. Employees that joined the company between April 2016 and March 2017

Hiring
The Zeon Group hired 80 new graduates of high schools,
technical colleges, and universities at the start of fiscal 2017.

Employment of People with Disabilities
In FY 2016, Zeon Corporation’s employment ratio of
employees with disabilities was 2.20%, above the statutory
minimum of 2.0%.
We will continue to expand employment for people
with disabilities while exercising the utmost care for safety,
particularly at our laboratories and plants, which handle
hazardous materials and use rotating and other industrial
equipment to manufacture chemicals.
Percentage of Employees with Disabilities
(%)

2.5
2

2.06

2.18

2.04

2.23

2.20

(legal requirement of 2.0%)

1.5
1
0.5
0

2012
June

2013
June

2014
June

2015
June

2016
June

We have adopted a re-employment system that allows
motivated and skilled employees who have reachedmandatory retirement age to continue working. In FY 2016,
67 out of 81 employees (82.7%) who reached the age ofmandatory retirement continued to work for Zeon Group.

Women’s Advancement in the Workplace
Established in January 2009, the MD Committee has
operated for eight years. In FY 2017, the committee,
consisting of 58 women from across the company, promoted
MD activities based on two “C’s” (CSR and cost reductions)and two “MD’s” (“muda-dori” and “mudo-dukuri,” or wastecutting and atmosphere creation in English). In addition towaste-cutting proposals that can be directly measured inmonetary terms, the committee is also conducting initiatives toimprove the work environment and facilitate communication,and steadily promoting innovative activities in plants and otherworkplaces.
We have established targets to increase the number ofwomen employees as part of our Action Plan for General
Employers based on the Act to Advance Women’s Success intheir Working Life.
We position the advancement of women in the workplaceas the first step in promoting diversity at Zeon. As such, weare developing a range of measures to enable women tocontinue working and advance their careers, including holding
workshops and improving systems that offer flexible work
styles.

46
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Action Plan for Employers in General based on the Japanese Act to Advance Women’s Success in their Working Life
We have established the following action plan to create employment conditions that allow women to continue working and bepromoted to managerial positions.
1. Plan period
April 1, 2016 to March 31, 2018
2. Zeon Corporation issue
Want to increase the number of women employees.
3. Goals and initiatives, implementation timeframe
Goal 1
30% of new graduate hires are women.
		Starting in FY 2016, hold hiring seminars on the topic of women’s work styles at Zeon
Goal 2
Strengthen network of women employees		Starting in FY 2016, organize working group meetings
Goal 3
Increase understanding for women’s advancement in the workplace		‌Starting in FY 2016, conduct an educational program for managerial level employees to promote understandingof diversity

47
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Human Resource Development
Encourage Employees to Continually Evolve by
Pursuing High Goals Based on Independent Thinking
Basic Philosophy on Human Resource
Tap into, develop, and fully use the competencies ofeach employee.
Zeon’s concept of “being the worker I want to be”
embodies “persons to continually evolve by pursuing highgoals based on independent thinking.” Personnels areencouraged to set goals to become the worker they want tobe, and we are modifying our education and 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 accomplishedand rewarding them accordingly, we aim for them to set evenhigher goals. With every personnel continuing to improve anddemonstrating this in actions, we can create an even morecapable workforce across Zeon.

HR Development at Zeon
Performancebased reward
The worker I want to be

Evaluation

Education &training

Actions & results

Education and Training Framework
Education and training at Zeon is broadly divided into
core and specialized programs. The core program is for all
employees and focuses primarily on developing awareness for
Zeon’s management philosophy, building a cooperative spirit,and acquiring shared knowledge. We also provide specialized
education to develop the work competencies needed in
specific occupations and company ranks as well as on-the-job
training conducted at worksites.

Line manager training

The worker
I want to be(higher goals)

Education &training

48
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Education & Training Scheme

Companyrank

Mid-careerstaff

Mid-career
staff

New
employeesNew
employees

Zeon’s Ippeki Training Facility
We opened the Ippeki training facility in 1981 to createa venue that allows employees to concentrate on theireducation and training to improve their qualifications andskills. Employees come to the training site from our worksites
throughout Japan for intensive education and training, andalso form personal relationships over the course of staying at
the site together with instructors and other participants.

Occupation-based Specialized Education—
Manufacturing Duties (Production Operators)
We established the Monozukuri (Product Manufacturing)
Training Center in 2009 as an educational facility for all
manufacturing operators. Its goal is to develop humanresources to support production innovations in pursuit ofensuring safe and reliable production activities. To cultivate
operators who understand and follow the rules and make
improvements on their own, the center has a simulated plant
where trainees 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 theOn-the-job
training

Transferring technical knowledge,
partnering with off-site educational programs

Deputy line
managers

Occupationbased
specialized
education
Research, technology,
clerical work, sales, planning and control,
manufacturing, engineering

Deputy line
managers

Globaleducation

Training staff for work abroad, TOEIC,
study abroad,
MOT, MBANew line
managers

Support for online educational courses,
obtaining qualifications

Linemanagers

Information systems, accounting,
CSR, compliance,
environmental safety, quality assurance, production

Business leadershipeducationLinemanagers

LeadershipAll levels
development Rank-based
Selfprofessional
andeducation
improvement
skillseducation

program, they live in the company dormitory to foster
friendships and build solidarity with their coworkers while
keeping a regular schedule. The curriculum at the Monozukuri
Training Center includes both a basic program, consistingof 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 wellacquainted with basic operations (identifying and pointing
out items to be checked, reporting, maintaining open
communication, consulting supervisors, and detecting
hazards) and basic processes (such as work safety procedures
common to all worksites). Trainees also have opportunities
to learn the reasons why operations are done the way theyare. Tests are given the day after classroom lectures so thattrainees can review what they learned the previous day. One
trainee is selected to help administer the curriculum in aleadership position. This training system aims to accomplish
several objectives at the same time, namely skills acquisition,
developing independent thinking, and building leadership skills
and a spirit of cooperation. Various means are employed toensure that trainees take the training program seriously, suchas issuing yellow cards to trainees who do not follow company
rules.

49
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

We have introduced the Foster system, in which trainers(Fosters) separate 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 operators to work in their own
personal development, we have introduced the Foster system

to create an HR development framework in which all worksite
employees including senior staff and supervisors participate
in HR development. Another purpose of the program is for
Fosters to achieve professional growth through instructing
junior employees.

Manufacturing Foster System Scheme and Definitions of Roles
What is a Foster?
We foster talent that can do work.
a Perform the role of training group members.

Manufacturing
Division managers
Manufacturing FM

Manufacturing Division
education supervisor

Integrated CF or CF=Foster Leader
Grade 2
Operator

Grade 3
Grade 4

FosterFoster*Fosters may instruct multiple employees

Grade 5New
employee

New employee instructor

NFoster leader (Integrated CF or CF)
Person responsible for integrated management ofdeveloping the proficiency of group members
NFoster
Person providing and tailoring on- and off-the-job
instruction according to the proficiency level management
documentation
NNew employee instructor
Person responsible for developing and instructing new
employees in their first year of employment until they can
perform their duties independently

50
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Human Resource System
Human Resource System That Gives Employees
a Sense of Challenge and Accomplishment
At Zeon Corporation, we believe that employees are asource of our competitiveness. We strive to create a humanresource system that provides employees with a sense ofaccomplishment by giving them opportunities to challengethemselves to achieve ambitious goals within the shared goalsof the organization and to have their performance reflected
fairly in their pay and employment conditions.

Performance
evaluation
systemPerformancelinked
bonus system

Human resource
system that gives
employees a sense ofchallenge andaccomplishment

Awards system
Compensation
system forinventions

Performance Evaluation System
With the understanding that a perfect score is impossible
in a personal performance evaluation system where people
rate each other, we are providing training to all evaluators andevaluated persons to maintain and improve their evaluationcompetency.
At Zeon Corporation, we have placed priority on gaining
understanding and acceptance for evaluation results.
Expectations, required work, and performance targets are
made clear to all employees at the beginning of the evaluation
term, and are shared among superiors and subordinates. At
the end of the evaluation term, we perform fair evaluations ofwork and performance (i.e., contribution to the organization)with the aim of shaping a corporate culture filled with a senseof accomplishment and aspiration (i.e., spirit of challenge andcreative motivation).
We will continue our efforts to create an open and fair
performance evaluation system that encourages the creationof added value as well as creative work, and that distributes
opportunities and rewards in a fair manner.

Retirement
packagesystemMastersystemPerformance Evaluation Flowchart

Present organization’s goals
Primary evaluator

Record targets

Confirm targets

Review targets

EvaluateePrimary evaluator

Evaluation meeting

Share targets

Decide targets

Supervisor→Employee

Primary evaluator

Interim period

Milestones

Milestone management(Observe degreeof growth)Supervisor↔Employee

Primary evaluator

Record performance

Primary evaluation

Secondary evaluation

Companywide level adjustment

EvaluateePrimary evaluator

Evaluation meeting

Human Resources

Feedback

Feedback

Feedback

Supervisor→Employee

Primary evaluator

Secondary evaluator

Set targets

Performance
evaluation

51
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Performance-Linked Bonus System

Retirement Package System

Since 2000, Zeon Corporation has adopted a bonus
system that is linked to performance. The bonus is determinedbased on three types of performance, namely companywide,
division, and individual performance. As with the performance
evaluation system, we view bonuses as a means of giving
employees a sense of accomplishment by reflecting theirperformance in their compensation when they challengethemselves to achieve ambitious goals individually, as a team,and as an organization.
In FY 2016, we decided company performance bonus
indicators and target figures following discussions between
labor and management.

Award System (Zeon Challenge Award)

Compensation System for Invention Patents

Our awards programs include the Employee of the Monthaward selected by division managers each month and theannual Zeon Challenge Award (President’s Award), forwhich individual employees and divisions define a specificchallenge at the start of the year and are judged on theirprogress toward meeting that challenge. The Zeon ChallengeAward presentation ceremony is broadcast to all sites via
videoconferencing to allow as many people as possible toparticipate each year. High-performing departments andindividuals who narrowly miss receiving the Zeon ChallengeAward are eligible, based on their accomplishments, for the
Outstanding Achievement Award from the President and theDivision Manager’s Award from the division manager.

(Awards)

18

16
12

11
9

10

14

8

8

6

6

4
0

3

4

2

2012

2013

2014

President’s Award
Division Manager’s Award

We are continuously working to create new technologies
based on our Basic R&D Philosophy: Contribute to society bycreating world-leading businesses through developing unique
technologies in the specific fields in which Zeon excels.
We strive to expand our intellectual property rights using thepatent first* principle, not only to protect, based on full respect
for others’ rights, the technologies we have created ourselves
but also to contribute to industry growth.
In addition to 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 Corporation, this is defined this as filing patent applications before
developing or announcing products or providing samples. This means that wedevelop products after first thinking about how to file the patent application.

Number of Annual Awards

20

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 theresults in a lump-sum payment upon retirement, with the
expectation that employees will remain motivated and feela sense of accomplishment up until mandatory retirement.
The defined-contribution (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.

1

2
2

2015

6
4
2
2016

FY

Outstanding Achievement Award

Zeon Master System (Re-employment System)
Zeon Group has adopted a re-employment system thatallows skilled and motivated employees who have reached
the age of mandatory retirement to continue working. As aterm of respect, we refer to these re-employed employees as“(Zeon) master employees.” Master employees are given theopportunity to continue working in order to pass on their skills
and train successors.

52
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Creating Working Environments That Protect HealthCreating Comfortable Working Environment
That Values Dialogue
Approach to Building Working Environments
Guided by the principles of motivation, reliability,
achievement, stability, safety, and security, we are pursuing
flexible work options premised on regulatory compliance andspecial importance given to CSR. We continue to work to build
more inclusive and supportive working environments fromfive perspectives: supporting flexible work styles for work–
life balance, enhancing working environments, encouraging
dialogue, improving health, and supporting 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 familycare needs.
Systems and Initiatives
Flexiblework
stylesFlex-time system, a discretionary work hours
scheme for specialist and project-based work,
encouraging taking of special leave, half-day
holidays, instituted days with no overtime, selfimprovement activities, trainings for managerialand supervisory staff, surveys of actual conditions,
instruction form for overtime work, a labormanagement committee, labor-management patrols

Supportforcombining
work andchildcare

Maternity leave before and after birth, childcare/
caregiver leave system, leave to attend delivery(for expecting fathers), leave to care for a sickchild, half-day leave (applicable to childcare andcaregiving), shortened hours work system, limits
on overtime work and exemption from late-nightwork, breastfeeding time, childcare/caregiver leave
financial support system, childbirth cash payments

Health andwelfareEmployee savings scheme (incentives
for retirement savings), employee
Assetstock ownership scheme (withaccumulation financial incentives), definedcontribution (DC) pensions, matching
contributions system

Motivation Reliability Achievement
Stability & Safety Security

Creating More Inclusive andSupportive Working Environments
Flexible work styles
Enhancing working environments Encouraging dialogue
Improving health Supporting self-reliance

Housing
assistance

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

Marriage

Marriage cash payments, honeymoon
leave, spousal allowanceChildbirthChildbirth cash payments, maternity
leave, dependents and tuition
allowances

Holidaysandbusiness
shutdowns

Carryover of accrued vacation, “mylife” holidays (upon reaching age 50),“refresh” holidays (Master employees),
public-service leave (for jury duty)

Recreation Hakone Gora Facility, Izu Ippeki
and training Training Facility
facilities

Loans andself-help

Bereavement condolence payments,
bereavement leave, study loans,disaster assistance, group medical
insurance, compensation for absencesfrom work (Zeon health insurancecooperative association), optionalgroup insurance, group life insurance,
etc.

53
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Support for Combining Work and Childcare
At present, 100% of women employees who give birthtake childcare leave. Among men employees, one to two
employees have taken childcare leave each year since FY
2014. Many employees have also used our system of working
shortened hours to allow them to both work and raise children.
Action Plan for General Employers under Japan’s Law for
Measures to Support the Development of the Next Generation
Based on Japan’s Law for Measures to Support theDevelopment of the Next Generation, we have drawn up an
action plan for general employers and report our activities tothe relevant authorities.
In FY 2014, we achieved our targets within the plan period
and received the Kurumin Mark from the Minister of Health,Labour and Welfare, which is awarded to companies that
support child-rearing.
The current action plan is as follows.

Improving working Environments, Encouraging
Dialogue, and Supporting Self-Reliance
Zeon Corporation values mutual trust between co-workers.
Our focus is on encouraging dialogue (communication) tocreate an atmosphere in which all employees display sensitivity
to each other based on shared awareness, and in so doing
enhance our worksite capabilities.
We consider communication between not only managers
and employees but also within the workplace and between
workplaces to be the foundation of all corporate activity.
Through communication, we aim to remove barriers between
organizations, unify our direction, and help employees feelsatisfaction and pride in their work.
Labor Agreements and Communication between Laborand Management
Joint Declaration by Labor and Management Aimed at
the Growth of the Company

Zeon Corporation’s Action Plan for General Employers

1. ‌We will make mutual understanding and trust thecornerstone of all management–labor relations

In order to more fully promote the establishment of anenvironment where each and every employee can display
their abilities to the fullest, we have formulated the following
action plan, as we believe that it is important to create an
atmosphere and a workplace environment that combines
work and childcare.

2. ‌We will perform our respective roles to strengthen
company infrastructure and build a company of which we
can be proud

1. Plan period:
The four-year period from April 1, 2014 to March 31, 2018
2: Details
Objective 1: We‌ will promote the creation of anenvironment that facilitates the use ofcompatibility support.
Action: The‌
support system guidebook will reflect details ofrevisions to the system as necessary. We will provide
support by for example, promoting support plans tomanagers and by offering consultations.
Objective 2: Initiatives‌
to develop an environment ofcompatibility support.
Action: We‌ will work to provide information and develop a
consultation system in order to ensure the healthof female employees during pregnancy and afterchildbirth (after a period of absence).
Objective 3: At‌ least one male employee will takechildcare leave during the target period of
this plan.
Action: We‌ will create a comfortable work environment andstreamline the system to make it easier for male
employees to take childcare leave.
End

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

3. ‌We will mutually strive to improve and promote ourcorporate culture as beneficial partners

Zeon Corporation and its labor union have concluded alabor agreement for the purposes of maintaining peacefulrelations between the two parties and cooperating for thehealthy growth of the company and to maintain and improve
working conditions for union members. This agreement
stipulates rules for union activities, labor–management
negotiations, and complaint processing, and working
conditions such as wages and work hours.
We have also issued the Joint Declaration by Labor andManagement Aimed at the Growth of the Company based on
the common understanding that both the company and thelabor union must cooperate and actively strive to mobilize theabilities of everyone in Zeon Group to achieve initiatives forcompany growth.
Numerous opportunities for exchanging opinions havebeen set up, including consultations between labor andmanagement, RC dialogue, and joint labor–management
patrols as well as roundtable meetings, which are now
a permanent part of the labor–management dialogue.
Consultations between labor and management provide ample
opportunity for forthright discussion. Both sides participate
with a forward-looking attitude and spirit of friendly rivalry
based on mutual trust.
We intend to proactively provide opportunities for dialogue
with the labor union and to implement various policies tomake Zeon a “company of which each of its employees canbe proud” through a beneficial partnership between laborand management based on mutual respect for each other’s
positions.

54
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Dialogue with Management
Opportunities for actively engagement with management
are available in policy briefings and other venues in which
management members up to the President visit worksites toprovide 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, which is conduct subject to disciplinary action in
our employment regulations, and have set up a consultation
desk specifically for resolving sexual harassment-related
complaints.
We also conduct an educational program on prevention ofharassment for all staff as part of our diversity training.

Health Management Initiatives
As stated in our top management policy, we strive tomaintain and improve the mental and physical health of ouremployees.
In addition to healthcare guidance provided by nurses, we
provide statutory medical examinations as well as detailed
medical examinations by industrial physicians. We are also
working in collaboration with a health insurance cooperative
association to prevent employee conditions from becoming
serious illnesses.
In addition to providing mental health education, several
worksites have implemented stress checks since FY 2016
to assist employees in better understanding the physical andmental effects of stress. We have also set up an educational
system using self-care and e-learning courses to encourage
employees to check their stress levels at any time, not just at
the time company stress checks are conducted. In addition,
we have assigned psychiatrists and psychotherapists to
support our industrial physicians.
Performing environmental measurements on chemical
concentrations, dust concentrations, noise levels, and otherconditions in work areas at our plants also helps us make
improvements to workplace environments.
Starting in FY 2016, we are making available an ICT-based
health and prevention information service. The service allows
employees to check their medical data from a computer or
smartphone at any time. The service also provides healthinformation tailored to the person’s health data. We arealso participating in health-promotion events to encourage
employees to take an active interest in their health through the
ICT-based health and prevention information service.

55
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Fair Operating Practices
Targets and Results 			P 55Compliance				P 56
CSR Procurement				P 57
Fair and Appropriate Information Disclosure P 58

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

 ompliance with internal regulations■ ‌Enact and implement management¡C
regulations
includingthoseoninsider ngoing legal training and information¡O• ‌Are complying with all laws and regulations,trading and appropriate disclosure
sharing using the Compliance Textbook
ordinances, agreements, and internaland other materials△ ‌Comply with internal regulations including
regulations, and acting with high ethicalthe Export Security Control Regulations
standards based on being a model for¡Education on the CSR Code of Conductsociety△ ‌Appropriately implement regulations tocomply with the Act on Prohibition ofPrivate Monopolization and Maintenance ofFair Trade (Antimonopoly Act)△ ‌Compliance with the Subcontract Act andthe Act for Securing the Proper Operationof Worker Dispatching Undertakings(prevention of falsified contracts)

Fair competition■ ‌Regulations in the CSR Code of Conduct
and the CSR Procurement Guidelines• Management‌policies are broadly△ ‌Employees read the CSR Textbook andunderstood and compliance awarenessCompliance Textbook and take e-learning
is widespread. As a result, by proactively
courses
conducting CSR activities and adapting toenvironmental changes, business continuity △ ‌Conduct CSR education including holding
as well as sustainable development are
CSR informational sessions
achieved△ ‌Hold workshops on legal and regulatorycompliance△ ‌Legal compliance inspections△ ‌Regularly revise internal regulations (tosatisfy legal amendments)

Fair competition

Fair competition• Information‌is disclosed quickly andappropriately, and market value has
increased (including negative information
regarding business conditions, CSR, risks,etc.)

Social responsibility in the value chain• Select‌business partners based on
the CSR Procurement Guidelines andperiodically confirm the Guidelines’ statusof implementation△ ‌Hold financial results briefings△ ‌Publish various reports△ ‌Release information via the corporatewebsite△ ‌Hold briefings for individual investors andanalysts and respond to media inquiries△ ‌Hold press conferences for mass media
outlets and others¡Ongoing compliance education¡Revise the Compliance Textbook andthe CSR Textbook and hold related
informational meetings¡Ongoing CSR briefings by the head of the
CSR division¡Support the establishment of compliancesystems at Zeon Group companies outside
Japan (develop in the supply chain)¡Shift from compliance to sustainability(promote understanding among
management and establish among
employees)¡Become a signatory to the United Nations
Global Compact¡Enhance the corporate website (IR, CSR
information)¡Strengthen the communication system (PR)¡Release information for ESG investors△ ‌Comply with laws and regulations on¡Develop and establish the CSR Code ofcompetition including the Antimonopoly
Conduct and CSR Procurement Guidelines
Actin the supply chain△ ‌Satisfy the RoHS Directive, bans on¡Build the Supply Chain CSR Survey
Database
substances, etc.
△ ‌Purchasing following the CSR Procurement
Guidelines

56
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Compliance
Compliance System
The Compliance Committee advances Zeon’s complianceefforts. The Compliance Committee has four subcommittees,
namely the Antitrust Law Regulatory Subcommittee, theExport Security Control Subcommittee, the Corporate
Governance Subcommittee, and the Information Security
Subcommittee.

Corporate Governance Subcommittee• Established‌controls for identifying the risk of and preventing
errors in consolidated financial statements. Evaluatedwhether the controls were functioning correctly• Convened‌five times during FY 2016 and rectified threeineffective controls

Zeon’s Risk Management and Compliance System

Information Security Subcommittee• Promoted‌
understanding of information security rules• Conducted‌
training to raise awareness for security throughe-learning
Participation rate: More than 99%

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

Internal Reporting System
We established the Internal Reporting System to rapidlycollect information on potential risks and facilitate theirresolution.
(For more information about the Internal Reporting System,
see Risk Management. R P21)

Reliability in financial reporting
Information Security
Subcommittee
Management of corporate
confidentiality
and information security

Compliance Committee
FY 2016 Results• ‌Educated staff on global assignments on compliance withantitrust regulations and preventing bribery• ‌Conducted workshops on legal compliance at plants andsubsidiaries (in and outside of Japan)• ‌Checked the level of compliance understanding throughe-learning
Antitrust Law Regulatory Subcommittee• ‌Conducted reviews prior to revising product prices inbusiness divisions, carried out preliminary screenings when
meeting with executives of competitors, and reviewed thestatus of participation in industry bodies
Export Security Control Subcommittee• ‌Conducted seminars for employees and department
representatives• ‌Implemented numerous final assessments of control list
applicability and trade investigations

Internal Audits
Internal audits are performed for the purpose of preventing
improprieties and errors in business operations.
The Department of Internal Auditing inspects and assesses
whether business operations in all departments are being
carried out appropriately and effectively in accordance withlaws and internal regulations, and orders improvements when
there are incidents of violations or non-compliance. In addition,
the Department of Internal Auditing carries out periodic followup audits on the progress of measures taken by departments.
FY 2016 results: 34 departments (15 departments at Zeon
Corporation, 10 Zeon Group companies in Japan, 9 Zeon
Group companies outside Japan)
FY 2017 plan: 36 departments (12 departments at Zeon
Corporation, 13 Zeon Group companies in Japan, 11 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 self-inspection
format.

57
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

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, anddelivery.

CSR Procurement Guidelines
1. CSR procurement
We will promote procurement activities that are based on our
CSR Policy.
2. ‌Procurement of optimal raw materials, products, andservices
We will work to procure optimal raw materials, products,
and services that meet our standards for quality, cost,delivery time, supply stability, and technological development
capabilities in order to provide better products.
3. Consideration of the global environment
We will work to procure raw materials and products that haveless impact on the global environment.
4. Open approach to purchasing and partnerships
We will use a global perspective to search for suppliers fromacross the world, build partnerships through dialogue, andwork 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 workplaceenvironments.
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 Initiatives
We forbid substances whose handling is prohibited andmonitor for the presence of substances governed by laws andthe RoHS Directive. We also proactively disclose informationon the substances contained in our products.
We conducted a customer questionnaire in FY 2013.
Looking ahead, we will consolidate our approach to supply
chain management and build a system for sharing our CSR
policies in order to embed CSR procurement throughout the
supply chain.

58
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Fair and Appropriate Information Disclosure
Communications Approach and Framework
We conduct public relations activities to promote accurate
understanding of our philosophies, approaches, and various
undertakings by stakeholders and the public, and thereby
increase our name recognition and become more known andtrusted 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. In FY 2016, the committee made 60 policy
decisions.

Advertising
We conduct locally based advertising and PR activities withthe aim of enhancing the Zeon brand.
TV commercials• ‌TV Commercials in Japan are broadcast in the Kanto
region and Toyama, Okayama, Yamaguchi, and Kagawa
prefectures (update content after April 2017)• ‌TV commercials for Asia are broadcast throughout
Southeast Asia via satellite TV programs

Policy Decisions and Reports Made by the Public
Relations Committee

Presentation
documents

Others21%

2%

IR / Financial
statements-related

38%

Internal
relations

5%

Press releases
Massmedia-related

27%

7%

*All content = 100

Information Disclosure
Website• ‌Communicate information including on the company, IR,products, and employment.
Press Conferences
We held three press conferences in FY 2016.
• ‌July 2016: Press conference to announce the completionof construction to increase the production capacity ofthermoplastic elastomers and cyclo-olefin polymers(thermoplastic transparent plastic) at Mizushima Plant• ‌November 2016: Press conference to announce the launchof mass-production of high-performance pad-type thermalinterface material (TIM) synthesizing single-walled carbon
nanotube and rubber (joint press conference with New
Energy and Industrial Technology Development Organization(NEDO))• ‌February 2017: Press conference to announce theestablishment of the Zeon Sunarrow AIST CNT Composite
Material Research Center (joint press conference with
the National Institute of Advanced Industrial Science andTechnology (AIST) and Sunarrow Limited)

New TV commercials

New advertisements
We will continue to run ads in the series “The Future, Zeon,”“That Aroma, Zeon,” and “That Driving, Zeon,” which began in
2016.

59
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Communication with Shareholders
Policies related to constructive dialogue with shareholders
Dialogue with shareholders is led by the Department ofCorporate Communications and overseen by the director in
charge of CSR. The Department of Corporate Communications,the Corporate Planning Department, the Accounting and
Finance Department, the General Affairs Department, theLegal Affairs Department, and other departments exchange
information as appropriate to provide accurate and unbiased
information to shareholders.
We will continue to expand the avenues of dialogue apartfrom 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 Department of Corporate
Communications collects and analyzes feedback received
in dialogue with shareholders and makes reports to the
President as appropriate. Based on management regulations
including those on insider trading and appropriate information
disclosure, we strictly control unreleased important information
while engaging in dialogue with shareholders to prevent
information leaks.
General Meeting of Shareholders
On June 29, 2016 (Wednesday), we held our 91st Annual
General Meeting of Shareholders in a conference room at the
Head Office. To help investors have a clearer understandingof our business, on the day of the meeting we also set up abooth to introduce clients’ commercial products that containour products. We mail out notices approximately three weeks
prior to the meeting to allow investors who cannot attend themeeting to exercise their voting rights based on a full reviewof the proposals. We also publish the details of resolutions
from the General Meeting of Shareholders on our corporatewebsite. In addition, audio files of quarterly financial results
briefings and videos of presentations given twice a year by top
management on the current status of management at Zeon
are available on our corporate website.

Video of a presentation by President Tanaka

For more information about the General Meeting of
Shareholders, see
http://www.zeon.co.jp/ir_e/stock/meeting.html
For more information about financial results briefings, see
http://www.zeon.co.jp/ir_e/library/presentationmeeting.html
Communicating Information to Shareholders
Twice a year, we send a booklet to our shareholders
featuring updated business information and recent topics ofinterest. The 92nd Midyear Report issued in December 2016
included specific examples of business performance, such asa feature on synthetic latex for gloves and diversifying glove
applications based on factors such as higher awareness ofhygiene practices.
We will continue to improve the Midyear Report to make it
more accessible and better meet shareholders’ needs.

92nd Midyear Report

Annual Report and other Midyear Reports, see
http://www.zeon.co.jp/ir_e/library/businessreport.html
Distributions
Our basic policy is to pay out steady dividends of excess
earnings to shareholders.
In principle, Zeon Corporation distributes excess earnings
twice annually, through interim and year-end dividends.
The General Meeting of Shareholders decides the year-end
dividend amount, and the Board of Directors decides theinterim dividend amount. Retained earnings are leveraged
for proactive capital investments, development of innovativetechnologies, and production innovations.
For more information about Zeon’s share price and dividends, see
http://www.zeon.co.jp/ir/stock/dividend.html (Japanese only)

Communication with Investors
We actively engage in communication with institutional
investors and analysts both inside and outside Japan.
We held analyst briefing sessions to announce our FY 2016
quarterly results in July and October 2016 and in January and
April 2017. In addition to briefings on our current management
situation by the President, we also reviewed the initiatives ofour mid-term management plan SZ-20 Phase II in our second
quarter financial report, and provided an overview of our new
mid-term management plan SZ-20 Phase III, which began in
FY 2017, at the annual financial results briefing session. We
have also deepened understanding of our company throughtechnical seminars and giving plant tours.
To individual investors, we strive to provide up-to-date
information on our business. For example, we publish online
content for individual investors on our corporate website, andparticipated in a briefing session held for individual investors in
February.
Furthermore, we are working to distribute information forinvestors through various opportunities such as releasing avideo introducing Zeon on the TSE (Tokyo Stock Exchange) IR
Movie Square.

60
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Consumer Issues
Targets and Results			
P 60
Quality Assurance				P 60
*For chemical product safety, see Safety. (R P42)

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

Protecting consumers’ health and safety• ‌Both quality and cost are globally first rate‌a quality management system based ¡Establish systems to definitively reduce△ Haveon ISO 9001
complaints, process abnormalities, and defects,
prevent defective products from leaving Zeon,‌
quality assurance risks (product△ Managecreate corporate quality trusted by customers,
liability lawsuits, supply obligations, productand further improve customer satisfaction
recalls, and credibility loss due to rumors)△ ‌Improve processes (reduce losses, improve ¡Develop initiatives for chemical substanceregulations
consistency)¡Develop Zeon’s quality management‌activities for production△ Develop
system at Zeon Group companies outside
innovations
Japan and at outsourcing partners

Sustainable consumption• Developed‌and launched a series of
products that are beneficial to society△ ‌Develop business activities based on
business plans

Quality Assurance
Quality Assurance Policies
In accordance with our basic philosophy and CSR Policy,
we define our basic policy for quality assurance as follows.
Basic Policy for Quality Assurance
1. ‌We contribute to society by providing high-quality products,
goods and services with excellent reliability and safety to
the market.
2. ‌We fully understand and predict user demands and provide
products, goods and services that users can use withsatisfaction.
3. ‌In each quality assurance step, we establish an internal
system that can assuredly evaluate high-quality 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.

¡R&D, manufacturing, and sales focused on
consumer-related social issues

61
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Quality Assurance System

Framework Supporting Quality Assurance at Zeon

To consistently manufacture products that reflect theneeds and wants of customers and to ensure product quality,
Zeon is advancing integrated quality assurance activities
companywide, across manufacturing, sales, and engineeringfunctions, 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

To ensure a consistent supply of high-quality products toour 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 regularinspection, we also received a transition inspection to the 2015
version and completed the transition.
2. ‌Status of Zeon Group Certifications for International
Quality Standards
Site

ISO
9001*1

Japan Zeon Kasei Co., Ltd.
Zeon Polymix Inc.
Technology
development(Research
center)Product
designMid- 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 toFY 2016, we defined our quality assurance policy as “Aim tocreate mechanisms that will facilitate quality assurance even if
things change (even if Zeon or the world changes).” We thenconducted quality assurance activities to achieve this.
To develop this quality assurance policy across Zeon Groupover 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 things change (even if Zeonor the world changes).” We are conducting quality assurance
activities across Zeon Group to this end.

3
p*

p

Zeon 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 inenhancing customer satisfaction and quality management systems throughproduct and services quality assurance.
*2 ‌ISO 13485 is the global standard for quality management systems in the field of
medical devices for the purpose of continued manufacture and provision of safeand 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®.

62
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Framework to Achieve Product Safety
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 product development throughplanning, design, manufacturing, sales, use, and disposal.
2. Chemical substance regulatory compliance
The regulatory environment for chemical substancesmanagement is undergoing major change globally, with laws
and regulations on chemical substances being amended notjust in the United States and Europe but also in Japan andSoutheast Asia. As a result, the number of regulations tocomply with is rising sharply. To comply with these regulationsat Zeon, we are creating a database of the substances in our
raw materials and products, even those present in minutequantities, 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 team led by
the director in charge of CSR and covering product liability(PL) and product safety. PL audits are conducted for productliability activities for products of Zeon business divisions
spanning all stages of development, manufacture, use, final
consumption, and disposal.
Quality Audits
Quality audits are audits performed by an auditing team ledby 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 purposes of
evaluating whether Zeon’s quality assurance management
system is operating effectively and efficiently based on ISO
9001:2015 and promoting ongoing improvements. The
audits are based on ISO 9001 and structured so that therequirements of ISO 9001 are satisfied as long as Zeon’s
internal regulations are being complied with. The audits also
focus on customer satisfaction and total optimization, andare conducted for all of Zeon Group by an auditing teamcomprised of auditors from other divisions to the extent
possible.

Communicating Safety Information
For more information about safety information for chemical
products handled by Zeon, see Chemical Product Safety
Information (R P42).

63
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Human Rights
Targets and Results			
P 63
Upholding Positive Working
Environments by Protecting Human
Rights and Prohibiting Discrimination
P 63
Protecting Human Rights in the Supply Chain P 64

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets■ ‌Publish the Corporate Report and release ¡Familiarize business partners with the CSR
Zeon Group’s CSR Code of Conduct andCode of Conduct and CSR Procurement
CSR Procurement Guidelines on the Zeon
Guidelines•T‌ he section on respect for human rights andcorporate website¡Create a database of external reports onprohibition of discrimination in the CSR Code‌ uild awareness in-house by having employees△Brespect for human rights at business partnersof Conduct has been shared with all Zeon
read the CSR Textbook and Compliance(called the Supply Chain CSR Survey Database)Group companies and Zeon Group business
Textbook and take e-learning courses
Enact a policy on human rights and¡partners, and compliance with the prohibitions △ ‌Conduct CSR education including CSR
establish it throughout Zeon Groupon child labor and forced labor are confirmed
informational sessions

Discrimination and vulnerable groups
Avoidance of complicity

Upholding Positive Working Environments by Protecting
Human Rights and Prohibiting Discrimination
In the respect for human rights and prohibition of discrimination provision of the CSR Code of Conduct for Zeon Group, we
state our goal of being a company that is understanding and accepting of diverse values and where no one is discriminated against
based on gender, age, nationality, or other attribute.

Zeon Corporation CSR Code of Conduct (Excerpt)(Respect for human rights and prohibition of discrimination)
We will make efforts to maintain a sound working environment
at all times, respect the human rights of each individual, andnot engage in any act that may lead to discrimination.
1. ‌We will not commit unlawful discrimination based on
birth, nationality, race, ancestry, creed, religion, sex,age, disability, preference, academic history or any othercharacteristic.
2. ‌We will not force business operations through violence,jeering, abusing, smearing and threatening behavior, norwill we infringe upon human rights through bullying andother such acts.
3. ‌We will not engage in child labor and forced labor nor will
we purchase any product manufactured through suchlabor.

Studying the CSR Textbook and theCompliance Textbook and E-learning
Employees periodically study the Compliance Textbook in
their department. Their level of compliance understanding ischecked using an e-learning course each July. Questions are
set respectively for management, business, manufacturing,and R&D divisions to assess whether the knowledge andinformation needed to ensure compliance is sufficiently
understood.

Checking the level of compliance understanding through e-learning

64
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

CSR Education Including CSR Informational
Sessions
In FY 2016, the eighth CSR informational session was held.
The session topic was whether Zeon Group was meeting the
expectations of society, and our goal of being able to answer
this question in the affirmative. The discussion focused onlinking our CSR activities to the SDGs and raising awarenessfor thinking about how we can meet the expectations ofsociety.
Materials for the CSR informational sessions

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

Building a database
We currently plan to complete the Database of Supplier
Initiatives for Human Rights, which compiles the results ofsurveys we conduct on the human rights initiatives undertaken
at our suppliers, in FY 2017.
Using this database, we will build the Supply Chain CSR
Survey Database, which compiles information reported bysuppliers. We will then use this tool to promote human rights
due diligence in our supply chain.

65
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Community
Basic Approach and Initiatives		
Targets and Results			
CSR Core Projects			

P 65
P 65
P 66

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

Zeon’s Approach to Social Contributions
We believe that social contributions are essentially carriedout through our core businesses. As a corporate citizen,
however, the complex set of issues faced by society andcompany activities are not independent of one another. We
are therefore undertaking social contribution activities outsideof our core businesses to engage 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 ourcore business operations and provide employees with anopportunity 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 conducted independently by
Zeon’s plants and Group companies. We are developing
these activities with a focus on their synergistic benefits.

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

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

Future initiatives and targets

Community involvement, education, and culture △ ‌Develop the CSR Core Projects (social¡Develop the CSR Core Projects based oncontribution activities by Group as a whole,the defined Zeon Group activities policy• ‌Zeon’s social contributions are understood,
among
locations,andatindividual
worksites)
receive recognition, and are supported
Community involvement• ‌An organization for promoting volunteer
activities among employees including
retirees is established and employees
actively volunteer in various ways‌and enhance the system for△ Upgrade
promoting volunteer activities (establish asystem for taking leave to volunteer)‌volunteer activities and promote△ Introduce
and support participation in them(Volunteering to support reconstruction
from earthquakes, etc.)¡Raise employee awareness for social

FY 2016 Results
Number of employees participating involunteer tours: 68 (cumulative total of 365
employees)¡Create opportunities for social contributions

contributions‌Conduct CSR education including CSR¡
informational sessions‌Establish a social contribution policy for the¡entire Zeon Group (e.g., on water)¡Create a system to support volunteering(volunteer registration system, etc.)

Community involvement• ‌Guidelines for coexisting with local
communities have been created and areused, and good relations have been builtwith local communities

from exchanges with local councils of social
welfare, non-governmental organizations
and non-profit organizations‌and charity activities (Furukawa ¡Maintain and expand exchanges with local△ Donations
communities
Scholarship, expenses for community
promotions, Red Cross, etc.)•S‌ upport the reconstruction of the Tohoku region‌good community relations and△ Maintain•E‌ stablish and implement ongoing ways
have community exchanges
to support the reconstruction from thedestructive earthquake•S‌ ponsor and participate in community festivals
and events including summer festivals at plants• ‌Actively participate in community activities• ‌Community cleanup activities• ‌Revitalize social contribution activities•P‌ lant tours (receive plant visitors, internships)
through local social welfare councils•C‌ reate standards for supporting disaster recovery

66
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Furukawa Scholarship
The Furukawa Memorial Foundation is an incorporated
foundation with a 50-year history of granting scholarships
to Japanese and foreign students experiencing financial

hardship to encourage them to continue their education. We
are maintaining our involvement in the foundation to assist its
activities.
To date, the foundation has awarded scholarships to a totalof 3,067 people.

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 2017 target

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

Started in October 2012
45 tours as of March 2016 (total of 297
participants)
Disaster recovery assistance(Minamisanriku, Rikuzentakata), agriculturalassistance (Iwaki), fishing industry
assistance (Kesennuma), etc.

Eat and Root for Restoration! campaign

Support the recovery of industries by eating Continue the initiative
foods grown in the disaster-affected areas
Offer a menu of Tohoku-grown foods at theemployee cafeteria and Z Plaza (employee
lounge)Participate in building a forest embankment
to protect lives*

Support for and participate in tree plantingfor Heisei-no-mori in Otsuchi Town
(sponsored by Yokohama Rubber andOtsuchi Town, Iwate Prefecture) since FY
2013

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

Summer vacation events and classes where
local residents conduct experiments while
touring our locations
Head Office: Children’s summer holiday
chemical experiment show (since FY 2013)
Tokuyama Plant: Experiment classrooms
during industrial tourism tours for parents
and children
Zeon Chemicals Yonezawa: Experimentclassrooms at the Youth Science Festival in
Yamagata

Hold chemistry classrooms (increase thenumber of events held at our locations)
Expand the conducted experiments (create
a new experiment package)Continue the initiative(Frequency target: 1–2 times per month)

Shared projects
Chemistry Classroom

Eco-cap recycling campaign (collecting used Began counting caps at all Zeon Groupplastic caps)
companies in FY 2012
Green purchasing of office supplies

Continue the initiative

Purchasing office supplies with minimalContinue the initiativeenvironmental impact (notebooks, bookbinding tape, folders, etc.). Of the 44 items
stipulated under the Green Purchasing Law,
we switched to 22 items (50%)

Independent projects
Topics selected by promotional committees Engaging with local communities
Participation in community events: Sponsor
and provide 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 with soil to build an
elevated area along the coastline, which was damaged during the tsunami triggered by the Great East Japan Earthquake. Various trees native to the area are being planted on
the elevated ground to create a multilayer forest.

67
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Examples of Initiatives
Following are some examples of activities that are part of
the CSR Core Projects. Many other activities conducted withlocal 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 employees on the tours
on an ongoing basis. We cover the full cost of the tours toencourage employee participation.
This initiative began in October 2012. In FY 2016, 68
employees participated in volunteer tours. They assisted withrepair work and searched for lost articles in Rikuzentakata City,
Iwate Prefecture; provided assistance for the fishing industry in
Kesennuma City, Miyagi Prefecture; and agricultural assistancein Iwaki City, Fukushima Prefecture.
We turn support into encouragement, and encouragement
into exchange. We intend to continue this initiative in light of
the risk that the memory of the devastation will be forgotten.

Assisting the fishing industry in Kesennuma City, Miyagi Prefecture

Helping plant trees in a disaster-affected area
Since 2012, Otsuchi Town in Iwate Prefecture and Yokohama
Rubber Co., Ltd. have conducted a tree-planting campaign called
Heisei-no-mori in Otsuchi Town as a model case for creating aforest embankment to protect lives in the local community. We haveparticipated in this tree-planting campaign since 2013. The fourthround of the tree-planting in 2015 was the last one as the campaign.
However, we continue to participate in activities by maintaining thetrees planted on the site and providing tree-planting education for
local elementary school children through extracurricular lessons.

Chemistry Classrooms
Based on the motto of “nurturing future Nobel Prize winners
in chemistry,” we hold chemistry experiment classrooms invarious areas to communicate the appeal of chemistry tochildren.

Educational booth at the Dream Chemistry 21 Summer Holiday Children’s Chemical
Experiment Show 2017
Zeon Corporation conducted the “Let’s Play with Rubber and Make a Superball!”experiment with children

RIMTEC: participation in and award for the Omoshiro Taiken (fun experience) Day,an event held at Okayama Research ParkWe received the 2016 Chemistry Communication Award from the Japan Union ofChemical Science and Technology in recognition of this activity conducted jointlywith Okayama University since FY 2012.

Participating in Yamagata Prefecture experiment classrooms
We set up an experiment craft booth at the 2016 Youth Science Festival in Yamagata

Tree-planting education at Otsuchi Gakuen

68
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Support for Education
Zeon’s plants and Group companies conduct exchanges
with and offer assistance to various educational institutions.
We offer internships for high school, technical college, anduniversity students, and give tours of our plants to school
children. We also provide other support to schools, such as
sending special instructors to provide lessons.

Community dialogue activities by Zeon Chemicals (Thailand) Co., Ltd in Thailand

Holding and Participating in Community Events
We place great importance on our ties with local
communities. Zeon’s plants and Group companies holdvarious events including summer festivals and welcome
opportunities to participate in community events.
Takaoka Plant: plant tour

Summer festival held at Takaoka Plant

Kawasaki Plant: plant tour

Dialogue with communities
Plants participate in community dialogue as part of the Responsible
Care Council activities and communicate information on environmentrelated improvements, safety, and disaster preparedness during plant
tours for representatives of local governments and community residents.

Mizushima Plant participating in a community event to make rice cakeResponsible Care community dialogue at Kawasaki Plant
We invite representatives of local residents’ associations with eight member
companies of the Kawasaki district of the Responsible Care Committee.

69
CSR REPORT
2017
SafetyContents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Zeon Polymix: participating in an event to eradicate invasive species from Lake
Biwa’s ecosystem

Many employees from Takaoka Plant, Optes, Zeon North, and Zeon Medical
participate in coastal clean-up activities

Relationship with the local community
We engage in activities with local communities in various
regions.

Zeon Yamaguchi: participating in 24-hour and 6-hour relay marathons

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 their sites and beyond.

Community cleanup activities around Tokuyama Plant

Zeon Chemicals L.P. (ZCLP) in U.S.A. has conducted volunteer activities anddonation drives for many years. The ZCLP Corporate team selected Make-A-Wish®
as our 2016 charity

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

CSR REPORT 2017

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 http://www.zeon.co.jp/index_e.html

Published: December 28, 2017