2008

2008
CSR Report

2008

Corporate Social Responsibility

CSR Report

ZEON CORPORATION CSR Department
Shin-Marunouchi Center Building, 1-6-2 Marunouchi,
Chiyoda-ku,Tokyo 100-8246 Japan
TEL:03-3216-1341
FAX:03-3216-0516

http://www.zeon.co.jp

This booklet has been printed on paper
made from forests that are managed inaccordance with internationally agreed
principles and standards with respect
to economic, social and environmental
considerations.

ZEON CORPORATIONマーク

ZEON CORPORATIONM essage

CSR Report

Message
Introducing the 2008 CSR Report

Table of Contents
MessagePresident's Message
Business Outline

ZEON Corporation's 3-year mid-term management plan known as PZ-3 which
commenced in 2005 acknowledged the importance of CSR*1 (Corporate
Social Responsibility) and the company is working to establish and spread
CSR principles across the entire ZEON group.
The final year of the three-year plan, 2007, saw a focus on making "quality
improvement" a key pillar within the company's CSR activities. Quality at
ZEON Corporation means more than just product quality and the company isworking to improve the quality of all of its activities.
Flexible structures and mechanisms allow us to satisfy the demands andexpectations of shareholders and other stakeholders*2 associated with the
ZEON group, while continuing to contribute to a wider society through ourcore areas of business.

Management
8
9
10
12

Message

Management Policies and Systems
Corporate Philosophy and CSR Strategies
Environment Philosophy and Safety Philosophy
Corporate Governance and Internal Controls
CSR Promotion System

PerformanceThis activity report was created in line with the following basic policy.
(1) The number of photographs and comments from individuals were increased to enhance the message
conveyed to employees.
(2) We will commission an independent verification by the JRCC (Japan Responsible Care Council) to
receive an evaluation of Zeon's activities from a third party perspective.
(3) This activity report is issued annually.

22
24
25
26
28
29
30
21
32
33
34

Performance

Report Policy

13
14
16
17
21

Management

Social Activity Performance
Relationship with Shareholders and Investors
Relationship with Customers
Relationship with the Local Community and the General Public
Relationship with Employees
Environmental and Safety Education
Environmental and Safety Activity Performance
Product Development
Activity Results
Safety and Accident Prevention
Occupational Health and Safety
PRTR Activities
Toxic Chemicals and Waste
Air and Water
Resource and Energy Conservation
Environment and Safety for Logistics
AuditsEnvironmental Policy from the Economic Perspective

September 2008

Site Rreports

ZEON and the following subsidiaries and affiliates are included
Japan: ZEON Kasei Co., Ltd., ZEON Polymix Co., Ltd., Optes Inc., ZEON Chemicals Yonezawa
Co., Ltd., ZEON Logistical Materials Co., Ltd., RIMTEC Corp., Tokyo Zairyo Co., Ltd., ZEON
Environmental Materials Co., Ltd., ZEON Medical Inc., ZEON Yamaguchi Co., Ltd., ZEON
North Co., Ltd., Okayama Butadiene Co., Ltd.
Overseas: ZEON Chemicals LP. (USA), ZEON Chemicals Europe Ltd. (UK), ZEON Chemicals Thailand
Co., Ltd. (Thailand), ZEON Advanced Polymix Co., Ltd. (Thailand)

Period Covered
April 2007 to March 2008 (also includes some new information from April 2008 and later)*1 CSR is an abbreviation for "Corporate Social Responsibility".
*2 All parties with business interests or concerns associated with the ZEON group.

Head Office (Shin-Marunouchi Center Building)R&D and Plant Activities
R&D Center
Takaoka Plant
Kawasaki Plant
Tokuyama Plant
Mizushima Plant
Affiliate Activities
ZEON Kasei Co., Ltd.
ZEON Polymix Co., Ltd.
Optes Inc.
ZEON Chemicals Yonezawa Co., Ltd.
ZEON Logistical Materials Co., Ltd.
RIMTEC Corporation
ZEON Environmental Materials Co., Ltd.
Tokyo Zairyo Co., Ltd.
ZEON Medical Co., Ltd.
ZEON Yamaguchi Co., Ltd.
ZEON North Co., Ltd.
Environmental Data
Overseas Affiliate Activities
Third-party Verification

38
40
42
44
46
48
49
50
51
52
23
24
55
56
57
58
59
60
62

3

Site Reports

Organizations Covered2

46

M essage

CSR Report

Message
Introducing the 2008 CSR Report

Table of Contents
MessagePresident's Message
Business Outline

ZEON Corporation's 3-year mid-term management plan known as PZ-3 which
commenced in 2005 acknowledged the importance of CSR*1 (Corporate
Social Responsibility) and the company is working to establish and spread
CSR principles across the entire ZEON group.
The final year of the three-year plan, 2007, saw a focus on making "quality
improvement" a key pillar within the company's CSR activities. Quality at
ZEON Corporation means more than just product quality and the company isworking to improve the quality of all of its activities.
Flexible structures and mechanisms allow us to satisfy the demands andexpectations of shareholders and other stakeholders*2 associated with the
ZEON group, while continuing to contribute to a wider society through ourcore areas of business.

Management
8
9
10
12

Message

Management Policies and Systems
Corporate Philosophy and CSR Strategies
Environment Philosophy and Safety Philosophy
Corporate Governance and Internal Controls
CSR Promotion System

PerformanceThis activity report was created in line with the following basic policy.
(1) The number of photographs and comments from individuals were increased to enhance the message
conveyed to employees.
(2) We will commission an independent verification by the JRCC (Japan Responsible Care Council) to
receive an evaluation of Zeon's activities from a third party perspective.
(3) This activity report is issued annually.

22
24
25
26
28
29
30
21
32
33
34

Performance

Report Policy

13
14
16
17
21

Management

Social Activity Performance
Relationship with Shareholders and Investors
Relationship with Customers
Relationship with the Local Community and the General Public
Relationship with Employees
Environmental and Safety Education
Environmental and Safety Activity Performance
Product Development
Activity Results
Safety and Accident Prevention
Occupational Health and Safety
PRTR Activities
Toxic Chemicals and Waste
Air and Water
Resource and Energy Conservation
Environment and Safety for Logistics
AuditsEnvironmental Policy from the Economic Perspective

September 2008

Site Rreports

ZEON and the following subsidiaries and affiliates are included
Japan: ZEON Kasei Co., Ltd., ZEON Polymix Co., Ltd., Optes Inc., ZEON Chemicals Yonezawa
Co., Ltd., ZEON Logistical Materials Co., Ltd., RIMTEC Corp., Tokyo Zairyo Co., Ltd., ZEON
Environmental Materials Co., Ltd., ZEON Medical Inc., ZEON Yamaguchi Co., Ltd., ZEON
North Co., Ltd., Okayama Butadiene Co., Ltd.
Overseas: ZEON Chemicals LP. (USA), ZEON Chemicals Europe Ltd. (UK), ZEON Chemicals Thailand
Co., Ltd. (Thailand), ZEON Advanced Polymix Co., Ltd. (Thailand)

Period Covered
April 2007 to March 2008 (also includes some new information from April 2008 and later)*1 CSR is an abbreviation for "Corporate Social Responsibility".
*2 All parties with business interests or concerns associated with the ZEON group.

Head Office (Shin-Marunouchi Center Building)R&D and Plant Activities
R&D Center
Takaoka Plant
Kawasaki Plant
Tokuyama Plant
Mizushima Plant
Affiliate Activities
ZEON Kasei Co., Ltd.
ZEON Polymix Co., Ltd.
Optes Inc.
ZEON Chemicals Yonezawa Co., Ltd.
ZEON Logistical Materials Co., Ltd.
RIMTEC Corporation
ZEON Environmental Materials Co., Ltd.
Tokyo Zairyo Co., Ltd.
ZEON Medical Co., Ltd.
ZEON Yamaguchi Co., Ltd.
ZEON North Co., Ltd.
Environmental Data
Overseas Affiliate Activities
Third-party Verification

38
40
42
44
46
48
49
50
51
52
23
24
55
56
57
58
59
60
62

3

Site Reports

Organizations Covered

2

4
6

President's Message

CSR Repoet

MessageOur corporate name ZEON is an amalgamation of the Greek words "GEO"(meaning the "EARTH") and "EON" (meaning "ETERNITY"). It represents a
direct statement of our corporate mission.

Site Reports

5

Performance

Finally, I would like to take this opportunity to say thank you for reading this report and wewelcome your opinions and suggestions.

Management

4

The development of synthetic rubber latex suitable for use in gloves that eliminates the
problem of protein allergy that was a problem with conventional gloves produced using
natural rubber latex is an example of a product that helps people. Similarly, the excellent
low-temperature adhesion performance of our "Zeoglobule " polymerized toner helps reduce
power consumption in copiers.
The excellent optical characteristics of the "ZEONOR " and "ZEONEX " cycloolefin polymer
products help to improve the energy efficiency of LCD TVs and make them even thinner. The
environmentally friendly characteristics of these products is demonstrated by their use inapplications such as in medical containers and equipment and in the substrates for organic
EL, the next-generation energy-efficient lighting technology described at the Toyako
Environmental Summit.
"ZEONOR Film " received the "Second Monodzukuri Nippon Grand Award" awarded by the
Minister of Economy, Trade and Industry and this ground-breaking new method of producing
optical film by molten extrusion without the use of solvents has made a significant
contribution to the environment. Similarly, products such as the "Zeorora " semiconductor
etching gas that won the Stratospheric Ozone Protection Award in the US also help mitigate
environmental risks.
The factories that produce these products operate safety and securely and undertake
Responsible Care activities so that the public and our customers can have even more
confidence in ZEON than in the past.
Our aim is to uphold sincerely the values and ethics required of a corporate member ofsociety, not just those obligations imposed by regulation, and by so doing meet the demands
and expectations of all our stakeholders, including the local community, customers, andshareholders, by maintaining fair business practices and conducting our business in harmony
with the local community and the general public, and fulfill our corporate mission to "make apositive contribution to the preservation of the earth and the prosperity of the human race".

Message

The management of ZEON made a strong and public
commitment to CSR in our 3-year mid-term
management plan for 2005 to 2007 (PZ-3) and wehave been working to improve corporate value.
This philosophy has been carried over emphaticallyto our new three-year plan.
As we approach the 60th anniversary of our
founding in 2010, we have established a new threeyear plan entitled "Innovation ZEON-60 (IZ-60)". The
plan positions us as a "chemical company able tocontribute to society by supplying products thatdelight our customers around the world in a speedy
manner" based on advanced innovation.
With an awareness that companies are socialorganizations and based on our obligations as amanufacturer to take CSR seriously, ensurecompliance with regulations and put safety first, ouraim is to manufacture products and operate factories
in an environmentally friendly manner so as to build
value that will delight both the general public andour customers.
To help sustain the global environment, ourcorporate mission is to contribute to society by"being a company that makes a positive contribution to the preservation of the earth and theprosperity of the human race" through products that help the environment by being energy
efficient, solvent-free, and with reduced environmental risks.
Some specific examples of this from one of our key products, synthetic rubber, include thedevelopment of rubber for fuel-efficient tires and improvements in the performance offunctional rubbers that help deliver better engine combustion efficiency.

President's Message

CSR Repoet

MessageOur corporate name ZEON is an amalgamation of the Greek words "GEO"(meaning the "EARTH") and "EON" (meaning "ETERNITY"). It represents a
direct statement of our corporate mission.

Site Reports

5

Performance

Finally, I would like to take this opportunity to say thank you for reading this report and wewelcome your opinions and suggestions.

Management

4

The development of synthetic rubber latex suitable for use in gloves that eliminates the
problem of protein allergy that was a problem with conventional gloves produced using
natural rubber latex is an example of a product that helps people. Similarly, the excellent
low-temperature adhesion performance of our "Zeoglobule " polymerized toner helps reduce
power consumption in copiers.
The excellent optical characteristics of the "ZEONOR " and "ZEONEX " cycloolefin polymer
products help to improve the energy efficiency of LCD TVs and make them even thinner. The
environmentally friendly characteristics of these products is demonstrated by their use inapplications such as in medical containers and equipment and in the substrates for organic
EL, the next-generation energy-efficient lighting technology described at the Toyako
Environmental Summit.
"ZEONOR Film " received the "Second Monodzukuri Nippon Grand Award" awarded by the
Minister of Economy, Trade and Industry and this ground-breaking new method of producing
optical film by molten extrusion without the use of solvents has made a significant
contribution to the environment. Similarly, products such as the "Zeorora " semiconductor
etching gas that won the Stratospheric Ozone Protection Award in the US also help mitigate
environmental risks.
The factories that produce these products operate safety and securely and undertake
Responsible Care activities so that the public and our customers can have even more
confidence in ZEON than in the past.
Our aim is to uphold sincerely the values and ethics required of a corporate member ofsociety, not just those obligations imposed by regulation, and by so doing meet the demands
and expectations of all our stakeholders, including the local community, customers, andshareholders, by maintaining fair business practices and conducting our business in harmony
with the local community and the general public, and fulfill our corporate mission to "make apositive contribution to the preservation of the earth and the prosperity of the human race".

Message

The management of ZEON made a strong and public
commitment to CSR in our 3-year mid-term
management plan for 2005 to 2007 (PZ-3) and wehave been working to improve corporate value.
This philosophy has been carried over emphaticallyto our new three-year plan.
As we approach the 60th anniversary of our
founding in 2010, we have established a new threeyear plan entitled "Innovation ZEON-60 (IZ-60)". The
plan positions us as a "chemical company able tocontribute to society by supplying products thatdelight our customers around the world in a speedy
manner" based on advanced innovation.
With an awareness that companies are socialorganizations and based on our obligations as amanufacturer to take CSR seriously, ensurecompliance with regulations and put safety first, ouraim is to manufacture products and operate factories
in an environmentally friendly manner so as to build
value that will delight both the general public andour customers.
To help sustain the global environment, ourcorporate mission is to contribute to society by"being a company that makes a positive contribution to the preservation of the earth and theprosperity of the human race" through products that help the environment by being energy
efficient, solvent-free, and with reduced environmental risks.
Some specific examples of this from one of our key products, synthetic rubber, include thedevelopment of rubber for fuel-efficient tires and improvements in the performance offunctional rubbers that help deliver better engine combustion efficiency.

Bu s ines s G uide

CSR Report

M essage

ZEON makes an important contribution
to society with unique technology
Company Profile

Specialty Material
Business

synthetic latex, and chemical products
Specialty Material Business
Manufacture and sale of fine chemical
products, information materials, andspecialty materials, etc.
Other Businesses (including ZEON groupbusinesses)
RIM combination liquid/molded items,
medical equipment materials, butadiene
extraction technology, vinyl chloride
compounds, packaging and distribution
materials, and building materials, etc.

•Head office

Sales Share(2007)

Other Businesses

Other
Business
20.4%
Elastomer
Business
64.1%

Hundred million yen

ZEON's Business Sectors
Elastomer BusinessSpecialty Material Business

Rubber•Synthetic
Styrene-butadiene rubber, butadiene rubber, isoprene•RIM
Combined septic tank, building equipment••

components, RIM (Reaction Injection Molding)combination liquid, construction and agriculturalequipment components, game console cases,
etc.
Medical Devices
Various therapeutic catheters, etc.
Other Products
Vinyl chloride compounds, butadiene extraction
technology, isoprene extraction technology,
butane-1 extraction technology, synthetic rubber
and latex manufacturing technology, packaging
and distribution materials, building and construction materials

Cycloolefin polymer
Raw film
Timing belt usingsynthetic rubber
Gaskets

Gloves usingsynthetic latex

6

Returnable metal
box pallet

Cellular phone using
specialty plastics

Perfumes using
aroma chemicals

Construction equipment
exterior covering made by RIM(Reaction Injection Molding)

Medical equipment(IABP balloon)

Consolidated net sales

3,029
2,816
,

Year
Hundred million yen

320
Operating income, Ordinary income
300
280
268
260
253
240
200
180
160
298
140
129
120
188
Operating
100 income
80 92
Ordinary
60
income
77
40
Year

7

Site Reports••

rubber, high-styrene rubber, acrylonitrile-butadiene
rubber, acrylic rubber, epichlorohydrin rubber,hydrogenated nitrile rubber, carbon master batch, etc.
Synthetic Latex
Styrene-butadiene latex, butadiene latex, acrylonitrilebutadiene latex, acrylate latex
Chemical Products
C5 petroleum resin, thermoplastic elastomer SIS,
concrete fluidizer, water-based dispersing agent,
epoxy hardener, etc.

•Chemicals
Aroma chemicals, organic synthesis chemicals
Information• Photoresist, Materials
etching gas, toner products, binder
resin for electromagnetic tape, etc.
Plastics•Specialty
Cycloolefin polymers and processed products

Other Businesses

3,100
3,000
2,900
2,800
2,700
2,600
2,500
2,400
2,300
2,200
2,100
2,000
1,900
1,800

Performance

Specialty
Material
Business
15.5%

Shin-Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-8246
Japan
TEL:03(3216)1772 (reception)
FAX:03(3216)0501

Management

Elastomer
Business

Zeon Co., Ltd.
•Company name Nippon(ZEON CORPORATION)
April 12, 1950••Established
Capital24.2 billion Yen (as of March 31 2008)
1,968 (as of March 31 2008)•Employees
DescriptionofBusiness•Business Elastomer
Manufacture and sale of synthetic rubber,

Message

ZEON boasts a world-beating range of products including special synthetic rubber
especially designed for timing belts and other safety-critical components in automobile
engines, green note aroma chemicals (leaf alcohol) for perfumes and food flavors, andenvironmentally-friendly products such as etching gases that do not harmthe ozone layer and lightweight, transparent cycloolefin polymer
resins.
At ZEON, we strive for innovative and revolutionary
new technology and continuous improvement inour core strengths. Our ultimate aim is toestablish a leading presence in society.

Bu s ines s G uide

CSR Report

M essage

ZEON makes an important contribution
to society with unique technology
Company Profile

Specialty Material
Business

synthetic latex, and chemical products
Specialty Material Business
Manufacture and sale of fine chemical
products, information materials, andspecialty materials, etc.
Other Businesses (including ZEON groupbusinesses)
RIM combination liquid/molded items,
medical equipment materials, butadiene
extraction technology, vinyl chloride
compounds, packaging and distribution
materials, and building materials, etc.

•Head office

Sales Share(2007)

Other Businesses

Other
Business
20.4%
Elastomer
Business
64.1%

Hundred million yen

ZEON's Business Sectors
Elastomer BusinessSpecialty Material Business

Rubber•Synthetic
Styrene-butadiene rubber, butadiene rubber, isoprene•RIM
Combined septic tank, building equipment••

components, RIM (Reaction Injection Molding)combination liquid, construction and agriculturalequipment components, game console cases,
etc.
Medical Devices
Various therapeutic catheters, etc.
Other Products
Vinyl chloride compounds, butadiene extraction
technology, isoprene extraction technology,
butane-1 extraction technology, synthetic rubber
and latex manufacturing technology, packaging
and distribution materials, building and construction materials

Cycloolefin polymer
Raw film
Timing belt usingsynthetic rubber
Gaskets

Gloves usingsynthetic latex

6

Returnable metal
box pallet

Cellular phone using
specialty plastics

Perfumes using
aroma chemicals

Construction equipment
exterior covering made by RIM(Reaction Injection Molding)

Medical equipment(IABP balloon)

Consolidated net sales

3,029
2,816
,

Year
Hundred million yen

320
Operating income, Ordinary income
300
280
268
260
253
240
200
180
160
298
140
129
120
188
Operating
100 income
80 92
Ordinary
60
income
77
40
Year

7

Site Reports••

rubber, high-styrene rubber, acrylonitrile-butadiene
rubber, acrylic rubber, epichlorohydrin rubber,hydrogenated nitrile rubber, carbon master batch, etc.
Synthetic Latex
Styrene-butadiene latex, butadiene latex, acrylonitrilebutadiene latex, acrylate latex
Chemical Products
C5 petroleum resin, thermoplastic elastomer SIS,
concrete fluidizer, water-based dispersing agent,
epoxy hardener, etc.

•Chemicals
Aroma chemicals, organic synthesis chemicals
Information• Photoresist, Materials
etching gas, toner products, binder
resin for electromagnetic tape, etc.
Plastics•Specialty
Cycloolefin polymers and processed products

Other Businesses

3,100
3,000
2,900
2,800
2,700
2,600
2,500
2,400
2,300
2,200
2,100
2,000
1,900
1,800

Performance

Specialty
Material
Business
15.5%

Shin-Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku, Tokyo 100-8246
Japan
TEL:03(3216)1772 (reception)
FAX:03(3216)0501

Management

Elastomer
Business

Zeon Co., Ltd.
•Company name Nippon(ZEON CORPORATION)
April 12, 1950••Established
Capital24.2 billion Yen (as of March 31 2008)
1,968 (as of March 31 2008)•Employees
DescriptionofBusiness•Business Elastomer
Manufacture and sale of synthetic rubber,

Message

ZEON boasts a world-beating range of products including special synthetic rubber
especially designed for timing belts and other safety-critical components in automobile
engines, green note aroma chemicals (leaf alcohol) for perfumes and food flavors, andenvironmentally-friendly products such as etching gases that do not harmthe ozone layer and lightweight, transparent cycloolefin polymer
resins.
At ZEON, we strive for innovative and revolutionary
new technology and continuous improvement inour core strengths. Our ultimate aim is toestablish a leading presence in society.

Management Policy and Systems

Management
CSR Report

Corporate Philosophy andCSR Strategies"ZEON will contribute to the preservationof the Earth and the prosperity of
the human race."

More stringent
compliancesystems

Safe and secure
production
facilities

Active involvement in local
Re-accreditation under voluntary•communities•safetyaccreditation scheme
Advertising in local newspapers
in environmental safety•••Investment
Factory revitalization strategies

The company asa social organization
Dialogue

1.Environmental protection is a mission forsocially responsible organizations.
2.Our basic belief is that environmental
protection can be achieved with innovative technology.
3.Environmental protection will be achieved
when all employees work together with asense of mission to overcome challenges.

1.Safety is the foundation of all businessactivities and the greatest priority.
2.Our basic belief regarding safety is that
we can prevent all accidents.
3.Safety will be achieved by performing the
5S* and when everyone takes responsibility for their own actions.
*5S: Seiri (neatness), Seiton (order), Seisou (cleanliness), Seiketsu (hygiene), and Shitsuke (discipline)

CSR Strategies
Recognizing our role as asocial organization, we aim to
be a company that is trusted
by society and of which its
employee can be proud.

SocialContribution

ZEON’s 7 Articles*Responsible Care Policy

1.Prioritize the environment and safety
Protecting the environment and ensuringsafety are preconditions for all businessactivities and are the most importantpriorities. We will work continuously to enact
full accident prevention countermeasures, andprovide 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 toemployees and users.
3.Minimize the discharge of toxic chemicals
and waste
We will work to reduce the discharge of toxic
chemicals, 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 amountof energy we use and help alleviate global
warming by developing innovative technology
and actively promoting resource and energy
conservation activities that involve all
employees.
5.Take the environment and safety into
account when developing new processes
and products and performing quality
assurance
We will perform thorough environmental andsafety evaluations from the initial stages ofresearch, develop technology and productsthat take the environment and safety into
account, and work to maintain and improve
the quality of our technology and products.
6.Live together with society
We will strictly observe regulations related tothe environment and safety, whether the
regulations come from the local community,
the national government, overseas, ororganizations to which we belong. While
cooperating in these activities, we will work toenhance our communication with the local
community and society in order to receive a
better understanding of ZEON's activities andfurther strengthen the trust that society has inour company.
7.Perform continuous improvements
We will continuously improve our environment safety management and technology by
operating a Responsible Care Audit, a Safety
Management System, an Environment Management System based on ISO14001, and an
Occupational Health and Safety Management
System.

care*Responsible
Activities undertaken voluntarily by companies involved withchemical substances to maintain the "environment, safety, andhealth" in all processes from the development of chemical
substances through to their production, distribution, use anddisposal via their ultimate end use, and to make public the
results of these activities and enter into dialogue andcommunication with the public.

9

Site Reports

Article 1 ZEON embraces corporate ethics and acts as asocially responsible organization.
Article 2 ZEON values the environment and safety.
Article 3 ZEON contributes to society with innovativetechnology.
Article 4 ZEON delivers products that satisfy the customers.
Article 5 ZEON values an organization that makes the best useof individuals.
Article 6 ZEON overcomes challenges through full participation and distributes the benefits fairly.
Article 7 ZEON values speed of decision-making and delivery
date of work.

8

SafetyPhilosophy

Performance

Speed

Environment
Philosophy

Management

Enhanced compliance training•programs•Risk prevention systems

Partnerships
with local
communities

Environment Philosophy and Safety Philosophy

Message

A company that is trusted bysociety and of which its
employees can be proud

Environment Philosophy and
Safety Philosophy

Management Policy and Systems

Management
CSR Report

Corporate Philosophy andCSR Strategies"ZEON will contribute to the preservationof the Earth and the prosperity of
the human race."

More stringent
compliancesystems

Safe and secure
production
facilities

Active involvement in local
Re-accreditation under voluntary•communities•safetyaccreditation scheme
Advertising in local newspapers
in environmental safety•••Investment
Factory revitalization strategies

The company asa social organization
Dialogue

1.Environmental protection is a mission forsocially responsible organizations.
2.Our basic belief is that environmental
protection can be achieved with innovative technology.
3.Environmental protection will be achieved
when all employees work together with asense of mission to overcome challenges.

1.Safety is the foundation of all businessactivities and the greatest priority.
2.Our basic belief regarding safety is that
we can prevent all accidents.
3.Safety will be achieved by performing the
5S* and when everyone takes responsibility for their own actions.
*5S: Seiri (neatness), Seiton (order), Seisou (cleanliness), Seiketsu (hygiene), and Shitsuke (discipline)

CSR Strategies
Recognizing our role as asocial organization, we aim to
be a company that is trusted
by society and of which its
employee can be proud.

SocialContribution

ZEON’s 7 Articles*Responsible Care Policy

1.Prioritize the environment and safety
Protecting the environment and ensuringsafety are preconditions for all businessactivities and are the most importantpriorities. We will work continuously to enact
full accident prevention countermeasures, andprovide 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 toemployees and users.
3.Minimize the discharge of toxic chemicals
and waste
We will work to reduce the discharge of toxic
chemicals, 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 amountof energy we use and help alleviate global
warming by developing innovative technology
and actively promoting resource and energy
conservation activities that involve all
employees.
5.Take the environment and safety into
account when developing new processes
and products and performing quality
assurance
We will perform thorough environmental andsafety evaluations from the initial stages ofresearch, develop technology and productsthat take the environment and safety into
account, and work to maintain and improve
the quality of our technology and products.
6.Live together with society
We will strictly observe regulations related tothe environment and safety, whether the
regulations come from the local community,
the national government, overseas, ororganizations to which we belong. While
cooperating in these activities, we will work toenhance our communication with the local
community and society in order to receive a
better understanding of ZEON's activities andfurther strengthen the trust that society has inour company.
7.Perform continuous improvements
We will continuously improve our environment safety management and technology by
operating a Responsible Care Audit, a Safety
Management System, an Environment Management System based on ISO14001, and an
Occupational Health and Safety Management
System.

care*Responsible
Activities undertaken voluntarily by companies involved withchemical substances to maintain the "environment, safety, andhealth" in all processes from the development of chemical
substances through to their production, distribution, use anddisposal via their ultimate end use, and to make public the
results of these activities and enter into dialogue andcommunication with the public.

9

Site Reports

Article 1 ZEON embraces corporate ethics and acts as asocially responsible organization.
Article 2 ZEON values the environment and safety.
Article 3 ZEON contributes to society with innovativetechnology.
Article 4 ZEON delivers products that satisfy the customers.
Article 5 ZEON values an organization that makes the best useof individuals.
Article 6 ZEON overcomes challenges through full participation and distributes the benefits fairly.
Article 7 ZEON values speed of decision-making and delivery
date of work.

8

SafetyPhilosophy

Performance

Speed

Environment
Philosophy

Management

Enhanced compliance training•programs•Risk prevention systems

Partnerships
with local
communities

Environment Philosophy and Safety Philosophy

Message

A company that is trusted bysociety and of which its
employees can be proud

Environment Philosophy and
Safety Philosophy

Business Policy and Systems

Management

CSR Report

Corporate Governance andInternal Controls

Seeking to be a "company trusted by all stakeholders", we are committed to thoroughly
implementing compliance management.

Our Basic Philosophy Regarding
Corporate GovernanceWork on risk management and compliance activities
in the ZEON group is currently progressing primarily
through five committees. These include the “Crisis
Management”, “Compliance” and “Anti-trust Compliance” committees that were set up under the “Crisis
Management Conference” chaired by the President,
and also the “Security Export Control” and “Internal
Control” standing committees of the Crisis
Management Conference which were added in 2007
and 2008 to strengthen further the risk management
and compliance system.
The Crisis Management Committee is responsible for•controlingpotential risks and handling actual incidents
when it occurs at the company, as well as implementing
measures to prevent its recurrence. The committee dealt
with such incidents in 2007 and preventive measures
were put in place. The internal reporting system wasutilized for some of these incidents.
The Compliance Committee is the body in charge ofeducation, training and auditing activities to prevent
violations of laws and regulations. In 2007, numerous•

audits

Audit
staff

Accounting
auditsReportingPL
Committee

Environment and
Safety Promotion
Committee

PL Basic
PolicyEnvironment
and Safety
PolicyPublicRelations
Committee

Internal
ControlCommittee

Internal
auditsCrisis Management
Conference
Security
Anti-trust Law
CrisisExport Control Compliance Compliance Management
Committee
Committee
Committee
Committee

Appropriate
Exports
Ensuring theinformation
accuracy of complying withdisclosure Executive
law
financialCommittee reporting

Compliancewith anti-trustlaw

Prevention,
education,
training, audits

Reporting(external)

Business divisions, related departments, research laboratories, plants
Control, monitoring

Control, monitoring

Subsidiaries and affiliates

Control, monitoring

External

Problemlawyerhandling,
preventive Reporting
measures (internal)

Reporting(internal)

1. ZEON shall respect corporate
ethics and serve society.
2. ZEON shall always emphasize environmental and safetyissues.
3. ZEON shall continuously strive to meet market needs by
employing its unique technologies.
4. ZEON shall provide products
and services of excellent
quality to assure customer
satisfaction.
5. ZEON, as a vital organization, shall aid each employeein achieving self-fulfillment
through his or her work.
6. Each ZEON employees shallbe expected to meet challenges in his or her area ofexpertise in order to achieve
corporate targets and theresults shall be shared fairly.
7. ZEON shall highly regard “speed” in decisionmaking andresponse to daily requirements.

Compliance Committee
Local Compliance Committees

Crisis Management
Committee

Prevention of law violations;
Education, training, and audit ofcompliance with laws
Internal reporting system

Anti-trust Law
Compliance Committee
Preventing violationof the Antitrust Law

Prevention and control of
Risks;Dealing with crises

Security Export
Control Committee

Internal route1) Superior
2) Crisis
Management
Committee

External route3) Attorneyfrom law firm

Proper security export control

Interal Control
Committee
Promoted establishment andevaluation of internal control
relating to financial reports

Zeon Compliance Code of Business Practice1) Relations with society2) Relations with customers and business
partners
3) Relations with shareholders and investors

4) Relations with employees
5) Relations with the Company andcompany assets<Employee Pledge>

Individual stakeholders of the ZEON Group such as its officers, employees, shareholders, and customers
10Internal reporters:
employees, dispatchedemployees, and officers andemployees of contractors

11

Site Reports

Collaboration

CEO

Audit group

Business implementation andinternal controls system

ZEON 7 Articles

Accounting
auditorCollaboration

Business
audits

Decisions, supervision(Appointment, dismissal)

Crisis Management Conference(Appointments,
dismissals)
Collaboration (assistance)(Dismissal)

Auditors(board)•Performance

Board ofdirectors(Appointments,
dismissals)•

Management Philosophy：Realization of Proud ZEON GROUP

General meeting of shareholders
Decisions, supervision(Appointments, dismissals)•

ZEON Group's Risk Management / Compliance System

Corporate governance and internal controls diagram

Governance systemtraining sessions were held covering compliance invarious workplaces and a (second) e-learning based testof understanding of compliance issues was carried out. It
aims to increase further the awareness of complianceissues amongst the ZEON group executives andemployees.
The Anti-trust Law Compliance Committee is the bodyestablished to prevent any breaches of anti-trust law byexecutives or employees of ZEON and ZEON group.
Numerous price changes were made during 2007 in
response to the rising cost of oil, and the committee
performed strict assessments of these changes before
they were put in place.
The Security Export Control Committee is the body
responsible for ensuring that export-related laws andregulations are complied with and applied appropriately.
Activities in 2007 included dealing with amendments tothe Export Trade Control Ordinance and change
procedures for internal company rules.
Internal Control Committee (started in June 2008) aims
to establish and review internal controls relating tofinancial reporting and administer the company’s internalreport regulated by the Financial Instruments andExchange Law.

Management

Introduction of the operating officers structure
The operating officers group structure was set up on
June 28, 2007 in a bid to improve management
efficiency and speed up executive operations.

Strengthening the Risk Management
and Compliance System

Message

The company focuses on increasing profits andconstantly aiming to enhance its corporate value
while balancing various interests, focusing on theshareholders and other diverse stakeholders. To
achieve this, we have continued to put effort into
corporate governance, building a system to allow
efficient and sound corporate management.
In addition, by establishing an internal controls
system, we are clarifying the functions and roles ofeach organization within the company, enabling
speedy decision-making and implementation. We arealso conducting appropriate monitoring andinformation disclosure in respect of the progress andoutcomes of our activities to improve business
transparency. In order to carry out these functions
effectively, we are determined to enhance ourcorporate governance system.

Internal controls system
A “Basic Policy for Implementing an Internal
Controls System” was authorised at the directors’
meeting in April 28, 2006 and a decision to add thepolicy was made at the directors’ meeting on March
26, 2008 based on subsequent progress in implementing the internal controls system.
In accordance with this basic policy, a "corporate
governance and internal controls system" wascreated and activities are underway throughout the
ZEON group aimed at ensuring rigorous risk
management and compliance with regulations.

Business Policy and Systems

Management

CSR Report

Corporate Governance andInternal Controls

Seeking to be a "company trusted by all stakeholders", we are committed to thoroughly
implementing compliance management.

Our Basic Philosophy Regarding
Corporate GovernanceWork on risk management and compliance activities
in the ZEON group is currently progressing primarily
through five committees. These include the “Crisis
Management”, “Compliance” and “Anti-trust Compliance” committees that were set up under the “Crisis
Management Conference” chaired by the President,
and also the “Security Export Control” and “Internal
Control” standing committees of the Crisis
Management Conference which were added in 2007
and 2008 to strengthen further the risk management
and compliance system.
The Crisis Management Committee is responsible for•controlingpotential risks and handling actual incidents
when it occurs at the company, as well as implementing
measures to prevent its recurrence. The committee dealt
with such incidents in 2007 and preventive measures
were put in place. The internal reporting system wasutilized for some of these incidents.
The Compliance Committee is the body in charge ofeducation, training and auditing activities to prevent
violations of laws and regulations. In 2007, numerous•

audits

Audit
staff

Accounting
auditsReportingPL
Committee

Environment and
Safety Promotion
Committee

PL Basic
PolicyEnvironment
and Safety
PolicyPublicRelations
Committee

Internal
ControlCommittee

Internal
auditsCrisis Management
Conference
Security
Anti-trust Law
CrisisExport Control Compliance Compliance Management
Committee
Committee
Committee
Committee

Appropriate
Exports
Ensuring theinformation
accuracy of complying withdisclosure Executive
law
financialCommittee reporting

Compliancewith anti-trustlaw

Prevention,
education,
training, audits

Reporting(external)

Business divisions, related departments, research laboratories, plants
Control, monitoring

Control, monitoring

Subsidiaries and affiliates

Control, monitoring

External

Problemlawyerhandling,
preventive Reporting
measures (internal)

Reporting(internal)

1. ZEON shall respect corporate
ethics and serve society.
2. ZEON shall always emphasize environmental and safetyissues.
3. ZEON shall continuously strive to meet market needs by
employing its unique technologies.
4. ZEON shall provide products
and services of excellent
quality to assure customer
satisfaction.
5. ZEON, as a vital organization, shall aid each employeein achieving self-fulfillment
through his or her work.
6. Each ZEON employees shallbe expected to meet challenges in his or her area ofexpertise in order to achieve
corporate targets and theresults shall be shared fairly.
7. ZEON shall highly regard “speed” in decisionmaking andresponse to daily requirements.

Compliance Committee
Local Compliance Committees

Crisis Management
Committee

Prevention of law violations;
Education, training, and audit ofcompliance with laws
Internal reporting system

Anti-trust Law
Compliance Committee
Preventing violationof the Antitrust Law

Prevention and control of
Risks;Dealing with crises

Security Export
Control Committee

Internal route1) Superior
2) Crisis
Management
Committee

External route3) Attorneyfrom law firm

Proper security export control

Interal Control
Committee
Promoted establishment andevaluation of internal control
relating to financial reports

Zeon Compliance Code of Business Practice1) Relations with society2) Relations with customers and business
partners
3) Relations with shareholders and investors

4) Relations with employees
5) Relations with the Company andcompany assets<Employee Pledge>

Individual stakeholders of the ZEON Group such as its officers, employees, shareholders, and customers
10Internal reporters:
employees, dispatchedemployees, and officers andemployees of contractors

11

Site Reports

Collaboration

CEO

Audit group

Business implementation andinternal controls system

ZEON 7 Articles

Accounting
auditorCollaboration

Business
audits

Decisions, supervision(Appointment, dismissal)

Crisis Management Conference(Appointments,
dismissals)
Collaboration (assistance)(Dismissal)

Auditors(board)•Performance

Board ofdirectors(Appointments,
dismissals)•

Management Philosophy：Realization of Proud ZEON GROUP

General meeting of shareholders
Decisions, supervision(Appointments, dismissals)•

ZEON Group's Risk Management / Compliance System

Corporate governance and internal controls diagram

Governance systemtraining sessions were held covering compliance invarious workplaces and a (second) e-learning based testof understanding of compliance issues was carried out. It
aims to increase further the awareness of complianceissues amongst the ZEON group executives andemployees.
The Anti-trust Law Compliance Committee is the bodyestablished to prevent any breaches of anti-trust law byexecutives or employees of ZEON and ZEON group.
Numerous price changes were made during 2007 in
response to the rising cost of oil, and the committee
performed strict assessments of these changes before
they were put in place.
The Security Export Control Committee is the body
responsible for ensuring that export-related laws andregulations are complied with and applied appropriately.
Activities in 2007 included dealing with amendments tothe Export Trade Control Ordinance and change
procedures for internal company rules.
Internal Control Committee (started in June 2008) aims
to establish and review internal controls relating tofinancial reporting and administer the company’s internalreport regulated by the Financial Instruments andExchange Law.

Management

Introduction of the operating officers structure
The operating officers group structure was set up on
June 28, 2007 in a bid to improve management
efficiency and speed up executive operations.

Strengthening the Risk Management
and Compliance System

Message

The company focuses on increasing profits andconstantly aiming to enhance its corporate value
while balancing various interests, focusing on theshareholders and other diverse stakeholders. To
achieve this, we have continued to put effort into
corporate governance, building a system to allow
efficient and sound corporate management.
In addition, by establishing an internal controls
system, we are clarifying the functions and roles ofeach organization within the company, enabling
speedy decision-making and implementation. We arealso conducting appropriate monitoring andinformation disclosure in respect of the progress andoutcomes of our activities to improve business
transparency. In order to carry out these functions
effectively, we are determined to enhance ourcorporate governance system.

Internal controls system
A “Basic Policy for Implementing an Internal
Controls System” was authorised at the directors’
meeting in April 28, 2006 and a decision to add thepolicy was made at the directors’ meeting on March
26, 2008 based on subsequent progress in implementing the internal controls system.
In accordance with this basic policy, a "corporate
governance and internal controls system" wascreated and activities are underway throughout the
ZEON group aimed at ensuring rigorous risk
management and compliance with regulations.

Management Policy and Systems

Social Activities Performance

CSR Promotion Organization

Relationship with Shareholders
and Other Investors

A CSR Coordination Division was established to oversee the company's social responsibilities aspart of organizational changes that occurred in June 2008.

Performance
CSR Report

CSR Promotion System

President

CSR TeamC S RInterval auditing

Compliance Committee
Risk Management
Meeting

Anti-trust Law Regulatory
Committee
Export and Security Control
Committee

Environmental & Safety
Affairs Department
Quality Assurance
Department
Legal Department

CSR Promotion Organization
Risk Management Meeting

Meetings

Environment and Safety(twice a year)
Promotion Meeting
Discussion
anddecision-making
concerning company-wide policies andactions on the environment and safety.
Chairman: President

Environment
improvement
and othercommittees(four times a year)
Problem assessment, planning, reporting andproposals related to the environment andsafety.

Plant Safety and Environment Meeting(every month)
Discussion and decision-making concerning
plant environment and safety.

Comprehensive upgrade to our web site goes on-linewith a strong emphasis on CSR

PL Countermeasure Meeting

Living as we now do in a world where use of theinternet is part of our daily lives, the new site
introduced a design that was devised based on
looking at the site from a user's perspective andproduced with an emphasis on "accessibility"(whether the web site is able to be used by as
many people as possible including the elderly anddisabled) and "usability". The fully upgraded site
went on-line on April 1 2008.
A typical example of how accessibility wasconsidered in the design is a feature whereby the
text on the site can be switched between either
standard or enlarged size to ensure readability.
To improve usability, representative images havebeen included to indicated the category of
information and to help the user recognize whichpart of the site they are looking at. Also, thenavigation and other assistance that appears on
the right of the screen is hidden when printing toensure the printout can fit on A4 size paper, and a(twice a year)
Planning, discussion and reporting on specificpolicies and countermeasures related tochemical safety and product liability.

(1) Reduce discharges of toxic chemicals(2) Reduce waste and reuse materials(3) Conserve resources and energy

Company-wide Audits

Audits12(1) Review by top management (once a year)(2) Responsible Care audit (once a year)(3) PL audits of operational departments andaffiliated group companies (once a year)(4) Voluntary safety audit(5) Special audit by the head of the Safety
Environmental Affairs Department(6) Plant technology audit

Internal Plant Audits(1) Review by plant manager(2) Environment ISO internal audit(3) Quality ISO internal audit

print
button
has
been
added
on
those pages
that users aremost likely toprint.
Whereas ourprevious web
site was limited
to posting our
CSR report (as [Web] CSR activities sitea PDF file), the http://www.zeon.co.jp/csr/index.html
new upgradedsite includes a new CSR activities section thatsummarizes our CSR activities with separate
pages covering our CSR Strategy, Environmental
Philosophy and Safety Philosophy, CSR
Framework, Eco-friendly Product Development,
and Quality Assurance Mechanisms.

13

Site Reports

PL Meeting (twice a year)
Discussion and decision-making concerning fundamental, company-wide
items related to chemical safety andproduct liability.
Chairman: President

Environment and Safety Meeting

progress report on our PZ-3 3-year medium-term
management plan that was presented at the analyst
briefing sessions. (Currently we are showing an
explanation of our new IZ-60 3-year medium-term
management plan that was announced in May 2008.)
During April 2008 we went on-line with an upgrade to
our web site that features a new shareholders'meeting page in the IR Information section of the site.
The new page includes video of the reporting part of
the annual general meeting.

Performance(twice a year)
Discussion and decision-making concerning the progress reports from thefive committees (Risk Management,
Compliance, Anti-trust Law Regulatory
Committee, Export and Security Control
Committee and Corporate GovernanceCommittee)
Chairman: President

Communication with shareholders
To make it easier for shareholders to understand ourbusiness, on the day of the annual general meeting
we stage an exhibition that includes staff giving
explanations and display panels and otherpresentations showing actual commercial products
or models of products that use our manufactured
goods.
On our web site, we have also posted a video of theIntroduction to products following
the annual shareholders' meeting

Management

Corporate GovernanceCommittee

Corporate Communications & Public AffairsGroup

Communication with Institutional Investors andAnalysts
We respond positively to media coverage and visits
by institutional investors and analysts from bothwithin Japan and abroad. ZEON held briefing
sessions for analysts in May and November 2007. In
addition to a review of financial results, these
involved top management reporting on progress on
PZ-3, our 3-year mid-term management plan.
In October 2007, ZEON held a factory inspection tour
based at our new optical film production facility that
had recently been completed (in September) at Himiin Toyama Prefecture. The tour was attended by 47
analysts.

Message

Risk Management Committee

Relationship with Shareholders andOther Investors

Management Policy and Systems

Social Activities Performance

CSR Promotion Organization

Relationship with Shareholders
and Other Investors

A CSR Coordination Division was established to oversee the company's social responsibilities aspart of organizational changes that occurred in June 2008.

Performance
CSR Report

CSR Promotion System

President

CSR TeamC S RInterval auditing

Compliance Committee
Risk Management
Meeting

Anti-trust Law Regulatory
Committee
Export and Security Control
Committee

Environmental & Safety
Affairs Department
Quality Assurance
Department
Legal Department

CSR Promotion Organization
Risk Management Meeting

Meetings

Environment and Safety(twice a year)
Promotion Meeting
Discussion
anddecision-making
concerning company-wide policies andactions on the environment and safety.
Chairman: President

Environment
improvement
and othercommittees(four times a year)
Problem assessment, planning, reporting andproposals related to the environment andsafety.

Plant Safety and Environment Meeting(every month)
Discussion and decision-making concerning
plant environment and safety.

Comprehensive upgrade to our web site goes on-linewith a strong emphasis on CSR

PL Countermeasure Meeting

Living as we now do in a world where use of theinternet is part of our daily lives, the new site
introduced a design that was devised based on
looking at the site from a user's perspective andproduced with an emphasis on "accessibility"(whether the web site is able to be used by as
many people as possible including the elderly anddisabled) and "usability". The fully upgraded site
went on-line on April 1 2008.
A typical example of how accessibility wasconsidered in the design is a feature whereby the
text on the site can be switched between either
standard or enlarged size to ensure readability.
To improve usability, representative images havebeen included to indicated the category of
information and to help the user recognize whichpart of the site they are looking at. Also, thenavigation and other assistance that appears on
the right of the screen is hidden when printing toensure the printout can fit on A4 size paper, and a(twice a year)
Planning, discussion and reporting on specificpolicies and countermeasures related tochemical safety and product liability.

(1) Reduce discharges of toxic chemicals(2) Reduce waste and reuse materials(3) Conserve resources and energy

Company-wide Audits

Audits12(1) Review by top management (once a year)(2) Responsible Care audit (once a year)(3) PL audits of operational departments andaffiliated group companies (once a year)(4) Voluntary safety audit(5) Special audit by the head of the Safety
Environmental Affairs Department(6) Plant technology audit

Internal Plant Audits(1) Review by plant manager(2) Environment ISO internal audit(3) Quality ISO internal audit

print
button
has
been
added
on
those pages
that users aremost likely toprint.
Whereas ourprevious web
site was limited
to posting our
CSR report (as [Web] CSR activities sitea PDF file), the http://www.zeon.co.jp/csr/index.html
new upgradedsite includes a new CSR activities section thatsummarizes our CSR activities with separate
pages covering our CSR Strategy, Environmental
Philosophy and Safety Philosophy, CSR
Framework, Eco-friendly Product Development,
and Quality Assurance Mechanisms.

13

Site Reports

PL Meeting (twice a year)
Discussion and decision-making concerning fundamental, company-wide
items related to chemical safety andproduct liability.
Chairman: President

Environment and Safety Meeting

progress report on our PZ-3 3-year medium-term
management plan that was presented at the analyst
briefing sessions. (Currently we are showing an
explanation of our new IZ-60 3-year medium-term
management plan that was announced in May 2008.)
During April 2008 we went on-line with an upgrade to
our web site that features a new shareholders'meeting page in the IR Information section of the site.
The new page includes video of the reporting part of
the annual general meeting.

Performance(twice a year)
Discussion and decision-making concerning the progress reports from thefive committees (Risk Management,
Compliance, Anti-trust Law Regulatory
Committee, Export and Security Control
Committee and Corporate GovernanceCommittee)
Chairman: President

Communication with shareholders
To make it easier for shareholders to understand ourbusiness, on the day of the annual general meeting
we stage an exhibition that includes staff giving
explanations and display panels and otherpresentations showing actual commercial products
or models of products that use our manufactured
goods.
On our web site, we have also posted a video of theIntroduction to products following
the annual shareholders' meeting

Management

Corporate GovernanceCommittee

Corporate Communications & Public AffairsGroup

Communication with Institutional Investors andAnalysts
We respond positively to media coverage and visits
by institutional investors and analysts from bothwithin Japan and abroad. ZEON held briefing
sessions for analysts in May and November 2007. In
addition to a review of financial results, these
involved top management reporting on progress on
PZ-3, our 3-year mid-term management plan.
In October 2007, ZEON held a factory inspection tour
based at our new optical film production facility that
had recently been completed (in September) at Himiin Toyama Prefecture. The tour was attended by 47
analysts.

Message

Risk Management Committee

Relationship with Shareholders andOther Investors

Social Activity Performance

Performance

CSR Report

Relationship with Customers
Quality Assurance

Chemical Products and Product Safety

Article 4 of "ZEON's Seven Articles" states that "ZEON delivers products that satisfy ourcustomers". We put this into practice by providing a reliable supply of products that satisfy ourcustomers.

We make every effort to ensure the safety of products delivered to our customers and chemical
substances handled in laboratories and production plants.

Quality management that links production,
sales and technology

Quality Management

Status of ISO9001 Accreditation

Design reviews forthe design anddevelopment of
products

Mechanism for reviewing whether each stage of the
product design and development process is being
performed appropriately.

Mechanism forproduct safety
evaluations

Mechanism for performing a multifaceted safety checkfor the product in which product safety is evaluated at allstages, from initial research through to product sale andultimate disposal.

Mechanism for
modification
management

Mechanism for preventing problems before they occur
by establishing rules relating to process modifications
associated with product improvements and similar.

Mechanism for
dealing withabnormal situations

Mechanism for eliminating quality problems bypinpointing the causes of process abnormalities in
production equipment and removing the cause toensure the problem never recurs.

Mechanism for
dealing withcomplaints

Mechanism for responding quickly and openly tocustomer complaints and improving quality by
preventing recurrence.

Mechanism forinternal quality
monitoring

Mechanism for internal quality monitoring Mechanism
for internal monitoring whereby staff monitor each otherto ensure that the company's quality management
systems work efficiently and effectively.

Status of ISO9001 Accreditation at the ZEON group

Status of ISO9001 Accreditation at ZEON Corporation
Registration Registration Date of Latest Update orNo.
DeteReconfirmation
JSAQ012 1994.10 2007. 7 (Reconfirmation)
Takaoka Plant
JSAQ013 1994.10 2007. 8 (Reconfirmation)
Tokuyama Plant
JSAQ016 1995. 1 2007.11 (Reconfirmation)
Kawasaki Plant
JSAQ046 1995. 6 2007. 5 (Update)
Mizushima Plant
Polymer Departments JSAQ432 1999. 2 2007.11 (Update)Specialty Materials JSAQ1972 2004. 6 2008. 5 (Reconfirmation)
Departments
Organization

14

Organization
Registration No Registration Date Date of Latest Update or Renewal
ZEON Kasei Co., Ltd.
JET-0424
2001. 5 2008. 5 (Extension and reconfirmation)
ZEON Polymix Co., Ltd.*JSAQ793
2000. 4 2008. 1 (Reconfirmation)
JQA-Q9271
2002.12 2007.12 (Reconfirmation)
Toyama Plant
Optes Inc.
JQA-QMA10869 2003.12 2007.12 (Reconfirmation)
Sano Plant
ZEON Chemicals Yonezawa Co., Ltd.*
03319-A
2006. 6 2008. 6 (Reconfirmation)
ZEON Logistical Materials Co.,Ltd.
JMAQA-705
2000. 7 2008. 5 (Reconfirmation)
RIMTEC Corporation
JQA-QMA11709 2004.10 2007. 9 (Update)Tokyo Zairyo Co.,Ltd.
JQA-QMA11669 2004.10 2007.10 (Update)
ZEON Medical Co.,Ltd.**
SY50117570 0001 2004. 4 2008. 4 (Reconfirmation)
ZEON North Co., Ltd.*
18713B
2007. 1 2007.12 (Reconfirmation)
ZEON Chemicals (ZCLP)
CERT-01747
2000. 4 2008. 1 (Reconfirmation)
ZEON Chemicals Europe (ZCEL)
FM01982
1989. 6 2008. 5 (Reconfirmation)
ZEON Chemicals Thailand Co., Ltd. (ZCT)C2003-02279
2003. 9 2007. 6 (Reconfirmation)
ZEON Advanced Polymix Co., Ltd. (ZAP)
149044
2004. 2 2007. 6 (Reconfirmation)* Assessment and registration combined with ISO14001** Assessment and registration combined with ISO13485 (quality management standard forthe design, development, production and sales of medical equipment)(2) We support research into toxicity evaluation
through participation in the LRI.
*LRI: Long-range Research Initiative. Research into

long-term issues related to the impacts that chemicals
may have on human health and the environment.

(3) We support investigation into understanding
and countering the environ-mental impact ofsynthetic rubbers through participation in the
Far East subcommittee of IISRP.
IISRP:
International Institute of Synthetic Rubber*
Producers

Domestic and International Chemical
Regulations
In response to the new EU RoHS directive effective
July 1 2006 and the introduction of mandatorylabeling for designated chemical substances under
the Law for Promotion of Effective Utilization of
Resources (J-Moss) in Japan, ZEON supplies
products that comply with the maximum content
limits on heavy metals such as cadmium, lead,
mercury and hexavalent chromium, as well as
designated toxic chemicals such as bromine-based
flame retardants.
Meanwhile, the EU's new REACH law for managing
and regulating chemicals came into effect on June 1,
2007 with preliminary registration commencing from
June 1, 2008. Although this is an EU law, it requiresthat safety information on chemical substances bemade available across the supply chain which means
it is expected to have a large impact outside the EU,
including in the area of substance registration. ZEON
has been working to review its management ofchemical substances and put in place measures toFollowing an amendment to the Occupational Healthand Safety Law (that makes it obligatory to use GHS
labeling for specific chemical substances from
December 2006), ZEON has modified the labeling on
its products and test specimens that are covered by
the legislation until May 31, 2007.
*GHS: Globally Harmonized System of Classificationand Labeling of Chemicals

Other Initiatives Relating to
Chemicals and Product Safety
Implementation of Product Safety Reviews
Product safety is reviewed at every stage from initialresearch through to final product sales using our own
checklists to verify the safety of products fromvarious perspectives.
MSDS Publication
Information regarding product safety issupplied to customers in the form of
MSDSs(Material
Safety Data Sheets).
MSDS
ZEON has published
MSDSs for all our
products and a portion of waste materials, not justfor the hazardous materials required by law(notifiable substances under the Occupational Healthand Safety Act, substances specified in the Pollutant
Release and Transfer Register (PRTR) Law, and toxic
substances under the Poisonous and Deleterious
Substance Control Law).
Education on Chemical Product Safety
ZEON carries out education on chemical and productsafety topics including the notification procedure for
new chemical substances and international trends inchemical regulations such as the REACH law.
15

Site Reports

At ZEON, all four plants and the operational
departments (polymer departments and specialty
materials departments) are already certified underISO9001.
At our affiliates, ISO9001 certification registration
has been performed primarily for production
departments. Further, some affiliates haveundertaken combined audits that include assessment
under ISO14001 (environment management systems)
as they move to adopt comprehensive management
systems.

Mechanism for continuous improvement in theorganization's quality management whereby unit
managers (plant managers and operational department
heads) evaluate the level of achievement in relation to
the issues in each organizational layer and identify
strategies for the next round of improvements.

Japanese Government and industry for collecting
safety information on existing high production volume
chemical substances.
*HSJP: Hydrocarbon Solvent Japan Panel. The
domestic panel of the IHSC (International Hydrocarbon
Solvent Consortium)

Performance

In order to ensure the reliable supply of high-quality
products to our customers, we have implemented
various quality assurance mechanisms based on the
ISO9001:2000 international standard for quality
management systems.

Mechanism for
management
planning and review

existing high production volume chemical substances.

*Japan Challenge Program: A joint initiative between theof certain hazardous substances (The directive limits
the use of specific toxic substances contained inelectrical and electronic products.)*J-Moss: A Japanese industrial standard for labeling(marking) the presence of specific chemical substancesin electrical and electronic equipment (JIS C 0952).
*REACH law: The Registration, Evaluation, Authorization
and Restriction of Chemicals*Japan Article Management Promotion consortium(JAMP)
JAMP is a consortium of upstream and downstream
businesses (manufacturers of materials, parts, finishedproducts, and so on) dedicated to creating concrete
frameworks for the administration and disclosure of
product chemical content information.

Management

Quality Assurance Mechanisms

We are actively involved in the following researchand evaluation programs on hazardous chemical
substances, their safety and their effect on theenvironment, including support through ongoingfunding and data sharing.
(1) We perform our own safety evaluations
through participation in the HPV Initiative.
•A consortium of companies producing hydrocarbon solvents in association with European andAmerican counterparts (HSJP)•Japan Challenge Program*HPV Initiative: An initiative for assessing the hazards ofensure that chemical safety information ispromulgatedaccurately,
includingthroughmembership of the Japan Article Management
Promotion consortium.
*RoHS directive: This stands for the restriction of the use

Message

PlantsWe are working to strengthen the links between the(production)
plants, operational departments and research units
Assess current conditions(R&D Center) in order to improve quality
Common view between plants
management on a company-wide basis and create an
Planning improvements andmodifications
integrated organization for production, sales andtechnology.
Quality Assurance
The Quality Assurance Department at head
Department
office maintains close communication with theOn-site training
Assess issues
Strengthen
thebuilding-inofqualityquality assurance units at the plants in order to
Improvement activities
in design and development
solve any issues that arise at the plants. The
Quality Assurance Department works to resolve
R&D Center
Operational Departments
issues from a customer perspective by identifying the(research and development)(sales and distribution)
causes of defects and evaluating the suitability ofcountermeasures in order to reduce any ongoing
Main mechanisms supporting quality assurance at ZEON
problems in production processes that have the
Objective
Mechanism
potential to lead to claims affecting production sites
Mechanism
for
identifying the issues at each
Mechanism for
across the group with the ultimate aim of reducing
organizational layer based on the President's policy, anddeveloping policy
thencarryingouttherequired measures.
customer claims to zero.

World-wide Product Safety Activities
Including Reviewing the Safety ofChemical SubstancesSocial Activity Performance

Performance

CSR Report

Relationship with Customers
Quality Assurance

Chemical Products and Product Safety

Article 4 of "ZEON's Seven Articles" states that "ZEON delivers products that satisfy ourcustomers". We put this into practice by providing a reliable supply of products that satisfy ourcustomers.

We make every effort to ensure the safety of products delivered to our customers and chemical
substances handled in laboratories and production plants.

Quality management that links production,
sales and technology

Quality Management

Status of ISO9001 Accreditation

Design reviews forthe design anddevelopment of
products

Mechanism for reviewing whether each stage of the
product design and development process is being
performed appropriately.

Mechanism forproduct safety
evaluations

Mechanism for performing a multifaceted safety checkfor the product in which product safety is evaluated at allstages, from initial research through to product sale andultimate disposal.

Mechanism for
modification
management

Mechanism for preventing problems before they occur
by establishing rules relating to process modifications
associated with product improvements and similar.

Mechanism for
dealing withabnormal situations

Mechanism for eliminating quality problems bypinpointing the causes of process abnormalities in
production equipment and removing the cause toensure the problem never recurs.

Mechanism for
dealing withcomplaints

Mechanism for responding quickly and openly tocustomer complaints and improving quality by
preventing recurrence.

Mechanism forinternal quality
monitoring

Mechanism for internal quality monitoring Mechanism
for internal monitoring whereby staff monitor each otherto ensure that the company's quality management
systems work efficiently and effectively.

Status of ISO9001 Accreditation at the ZEON group

Status of ISO9001 Accreditation at ZEON Corporation
Registration Registration Date of Latest Update orNo.
DeteReconfirmation
JSAQ012 1994.10 2007. 7 (Reconfirmation)
Takaoka Plant
JSAQ013 1994.10 2007. 8 (Reconfirmation)
Tokuyama Plant
JSAQ016 1995. 1 2007.11 (Reconfirmation)
Kawasaki Plant
JSAQ046 1995. 6 2007. 5 (Update)
Mizushima Plant
Polymer Departments JSAQ432 1999. 2 2007.11 (Update)Specialty Materials JSAQ1972 2004. 6 2008. 5 (Reconfirmation)
Departments
Organization

14

Organization
Registration No Registration Date Date of Latest Update or Renewal
ZEON Kasei Co., Ltd.
JET-0424
2001. 5 2008. 5 (Extension and reconfirmation)
ZEON Polymix Co., Ltd.*JSAQ793
2000. 4 2008. 1 (Reconfirmation)
JQA-Q9271
2002.12 2007.12 (Reconfirmation)
Toyama Plant
Optes Inc.
JQA-QMA10869 2003.12 2007.12 (Reconfirmation)
Sano Plant
ZEON Chemicals Yonezawa Co., Ltd.*
03319-A
2006. 6 2008. 6 (Reconfirmation)
ZEON Logistical Materials Co.,Ltd.
JMAQA-705
2000. 7 2008. 5 (Reconfirmation)
RIMTEC Corporation
JQA-QMA11709 2004.10 2007. 9 (Update)Tokyo Zairyo Co.,Ltd.
JQA-QMA11669 2004.10 2007.10 (Update)
ZEON Medical Co.,Ltd.**
SY50117570 0001 2004. 4 2008. 4 (Reconfirmation)
ZEON North Co., Ltd.*
18713B
2007. 1 2007.12 (Reconfirmation)
ZEON Chemicals (ZCLP)
CERT-01747
2000. 4 2008. 1 (Reconfirmation)
ZEON Chemicals Europe (ZCEL)
FM01982
1989. 6 2008. 5 (Reconfirmation)
ZEON Chemicals Thailand Co., Ltd. (ZCT)C2003-02279
2003. 9 2007. 6 (Reconfirmation)
ZEON Advanced Polymix Co., Ltd. (ZAP)
149044
2004. 2 2007. 6 (Reconfirmation)* Assessment and registration combined with ISO14001** Assessment and registration combined with ISO13485 (quality management standard forthe design, development, production and sales of medical equipment)(2) We support research into toxicity evaluation
through participation in the LRI.
*LRI: Long-range Research Initiative. Research into

long-term issues related to the impacts that chemicals
may have on human health and the environment.

(3) We support investigation into understanding
and countering the environ-mental impact ofsynthetic rubbers through participation in the
Far East subcommittee of IISRP.
IISRP:
International Institute of Synthetic Rubber*
Producers

Domestic and International Chemical
Regulations
In response to the new EU RoHS directive effective
July 1 2006 and the introduction of mandatorylabeling for designated chemical substances under
the Law for Promotion of Effective Utilization of
Resources (J-Moss) in Japan, ZEON supplies
products that comply with the maximum content
limits on heavy metals such as cadmium, lead,
mercury and hexavalent chromium, as well as
designated toxic chemicals such as bromine-based
flame retardants.
Meanwhile, the EU's new REACH law for managing
and regulating chemicals came into effect on June 1,
2007 with preliminary registration commencing from
June 1, 2008. Although this is an EU law, it requiresthat safety information on chemical substances bemade available across the supply chain which means
it is expected to have a large impact outside the EU,
including in the area of substance registration. ZEON
has been working to review its management ofchemical substances and put in place measures toFollowing an amendment to the Occupational Healthand Safety Law (that makes it obligatory to use GHS
labeling for specific chemical substances from
December 2006), ZEON has modified the labeling on
its products and test specimens that are covered by
the legislation until May 31, 2007.
*GHS: Globally Harmonized System of Classificationand Labeling of Chemicals

Other Initiatives Relating to
Chemicals and Product Safety
Implementation of Product Safety Reviews
Product safety is reviewed at every stage from initialresearch through to final product sales using our own
checklists to verify the safety of products fromvarious perspectives.
MSDS Publication
Information regarding product safety issupplied to customers in the form of
MSDSs(Material
Safety Data Sheets).
MSDS
ZEON has published
MSDSs for all our
products and a portion of waste materials, not justfor the hazardous materials required by law(notifiable substances under the Occupational Healthand Safety Act, substances specified in the Pollutant
Release and Transfer Register (PRTR) Law, and toxic
substances under the Poisonous and Deleterious
Substance Control Law).
Education on Chemical Product Safety
ZEON carries out education on chemical and productsafety topics including the notification procedure for
new chemical substances and international trends inchemical regulations such as the REACH law.
15

Site Reports

At ZEON, all four plants and the operational
departments (polymer departments and specialty
materials departments) are already certified underISO9001.
At our affiliates, ISO9001 certification registration
has been performed primarily for production
departments. Further, some affiliates haveundertaken combined audits that include assessment
under ISO14001 (environment management systems)
as they move to adopt comprehensive management
systems.

Mechanism for continuous improvement in theorganization's quality management whereby unit
managers (plant managers and operational department
heads) evaluate the level of achievement in relation to
the issues in each organizational layer and identify
strategies for the next round of improvements.

Japanese Government and industry for collecting
safety information on existing high production volume
chemical substances.
*HSJP: Hydrocarbon Solvent Japan Panel. The
domestic panel of the IHSC (International Hydrocarbon
Solvent Consortium)

Performance

In order to ensure the reliable supply of high-quality
products to our customers, we have implemented
various quality assurance mechanisms based on the
ISO9001:2000 international standard for quality
management systems.

Mechanism for
management
planning and review

existing high production volume chemical substances.

*Japan Challenge Program: A joint initiative between theof certain hazardous substances (The directive limits
the use of specific toxic substances contained inelectrical and electronic products.)*J-Moss: A Japanese industrial standard for labeling(marking) the presence of specific chemical substancesin electrical and electronic equipment (JIS C 0952).
*REACH law: The Registration, Evaluation, Authorization
and Restriction of Chemicals*Japan Article Management Promotion consortium(JAMP)
JAMP is a consortium of upstream and downstream
businesses (manufacturers of materials, parts, finishedproducts, and so on) dedicated to creating concrete
frameworks for the administration and disclosure of
product chemical content information.

Management

Quality Assurance Mechanisms

We are actively involved in the following researchand evaluation programs on hazardous chemical
substances, their safety and their effect on theenvironment, including support through ongoingfunding and data sharing.
(1) We perform our own safety evaluations
through participation in the HPV Initiative.
•A consortium of companies producing hydrocarbon solvents in association with European andAmerican counterparts (HSJP)•Japan Challenge Program*HPV Initiative: An initiative for assessing the hazards ofensure that chemical safety information ispromulgatedaccurately,
includingthroughmembership of the Japan Article Management
Promotion consortium.
*RoHS directive: This stands for the restriction of the use

Message

PlantsWe are working to strengthen the links between the(production)
plants, operational departments and research units
Assess current conditions(R&D Center) in order to improve quality
Common view between plants
management on a company-wide basis and create an
Planning improvements andmodifications
integrated organization for production, sales andtechnology.
Quality Assurance
The Quality Assurance Department at head
Department
office maintains close communication with theOn-site training
Assess issues
Strengthen
thebuilding-inofqualityquality assurance units at the plants in order to
Improvement activities
in design and development
solve any issues that arise at the plants. The
Quality Assurance Department works to resolve
R&D Center
Operational Departments
issues from a customer perspective by identifying the(research and development)(sales and distribution)
causes of defects and evaluating the suitability ofcountermeasures in order to reduce any ongoing
Main mechanisms supporting quality assurance at ZEON
problems in production processes that have the
Objective
Mechanism
potential to lead to claims affecting production sites
Mechanism
for
identifying the issues at each
Mechanism for
across the group with the ultimate aim of reducing
organizational layer based on the President's policy, anddeveloping policy
thencarryingouttherequired measures.
customer claims to zero.

World-wide Product Safety Activities
Including Reviewing the Safety ofChemical SubstancesSocial Activity Performance

Performance

CSR Report

Relationship with the Local
Community

Relationship with Employees
ZEON strives to be a company that inspires pride in each and every employee.

Our relationship with the local community is also described in the Site reports “Living together with thelocal community” on page 37 onwards.

Responsible Care Community
Dialogue

Performance
Site Reports

17Management

Coordination with off-sitetraining, technology transfer

ZEON aims to establish an environment in [Overview of the education program]
Global Specialized On-the-job
Training for
CommonSelfCareerwhich employees can set their own lofty goal
Leadership
Hierarchy
different levels of design knowledge developm employee training
training
trainingof "being what we want to be" and in which,training
the organization training
training
ent(OJT)
to achieve this goal, they can think rigorously,
Management
accept challenges, and continue to changeManagement
Newly
appointed
Having set "being what we want to be" as an
management
objective for everyone, ZEON has changed its Subordinate
Subordinate
management
education and training practices to make management
Mid-level
them relevant to specific daily activities and Mid-level
employees
employees
not just to filling the gap between this New entrants
New entrants
objective and current reality. The results
achieved though these activities are
Global employee training
evaluated fairly and actioned with the aim that thisZEON has expanded its internal and external training
will lead to further lofty goals.
programs for the ongoing training of employees
Improvement in the "workplace strength" across theinvolved in the company's rapid global expansion.
entire company is the result of the cumulative
One example is the "English course for training key
innovations and improvements achieved by theoverseas staff" established in 2007. In addition to
specific activities of individual employees.
English conversation, the curriculum aims to instill
Education and training at ZEON is broadly divided
practical skills that are immediately useful in specificinto core education that is targeted at all employees
business situations such as presentation, negotiationand focuses primarily on raising awareness andand business writing.
acquisition of common knowledge, specialist
education for various specific jobs, and on-the-job
Multi-faceted performance appraisals thattraining conducted in the workplace.
change attitudes and actions
In particular, the curriculum was revised in 2007 to
The training for newly appointed managers in 2007
make training not something that occurs on a
involved comprehensive discussion amongst all the
temporary basis but something that leads to practicalparticipants on each person's action plan for "changing
changes in the way things are done. Also, toZEON" which they then vowed to carry out. The
strengthen training for employees who deal withsubsequent 360 degree multi-faceted performance
global business, practices were changed to link withappraisals involved forthright and provocative feedback
the practical areas where work is performed and tofrom others at the same, higher, and lower levels in thetake advantage of the results.
organization and I felt provided me with the opportunity
Education for Newly-Appointed Managers
to review my own situation on a monthly basis as I
worked through my action plan. For"Improvement in workplace strength" is an
someone like myself who is approachingorganizational requirement in which newly-appointed
40 years of age and hopes to grow inmanagers are expected to play a driving role. In thematurity in both the public and personalarea of training for newly-appointed managers,
parts of my life, I am
training covering areas such as awareness raising and
Masahiro Tomono
grateful for thisTokuyama Plant
required knowledge was conducted for management
challenging training.
and at the same time rigorously thought-out specific
Manufacturing, engineering,business, commerce,
research, technology,
planning

16

Commemorative
photograph

Encourage employees to keep
challenging lofty goals under theirown initiative

MOT, MBA, overseas study,
overseas-derived training
courses, TOEIC

Newspaper article on
the Chemical Industry

An easy working
environment thatemphasizes
dialogue

Communication training,support for obtaining
qualifications

Visitors listen intently
to a presentation
Community Dialogue with
Takaoka in Toyama

Human resources
system allows asense of challenge
and achievement

Environmental safety, quality,
production, CSR, compliance,
information systems,
accounting

Takaoka Plant
Takaoka Plant participated as an organizing company
at the "Fourth RC Community Dialogue" held at
Takaoka City, Toyama Prefecture in March 2008. The
dialogue was attended by more than 100 people,
primarily from local government, and involved
updates and presentations on the activities of fivecompanies along with a lively exchange of opinion.
(See related article on page 41.)

Joint initiatives with universities(Mizushima Plant)
In December 2007, Mizushima Plant was opened to asite visit from everyone at Kagawa University (Social
Science Laboratory, Faculty of Education).
Although these factory open days are held several
times a year for high school students, this was thefirst time that university students had been invited.
The tour included a visit to the Integrated Production
Center (IPC) building that had only just been opened
in November. The IPC is a manufacturing facility thatallows for fast decision making and implementation
with the objective of safe and reliable production andoverall optimization. The way the visitors listened
intently to the explanation from deputy factory
manager Nishijima in the Discussion Room was
impressive.

Encourage employees
to keep challenging
lofty goals under theirown initiative(30/40/50
age ranges)

Scene from the interview (TV image)

ZEON strives to be a company
that inspires pride in each andevery employee

action plans were established with the aim of"changing (reforming) ZEON". In addition to
managing the progress of these action plans after
returning to the workplace, a monthly program of 360
degree multi-faceted performance appraisals wereintroduced as a tool to support awareness raising andencourage action.
The 360 degree multi-faceted performance appraisals
are directed towards the objective of "being what wewant to be" and involve providing individuals withfeedback through reviews covering 14 categories byother employees at the same, higher, and lower levelsof the organization. The aim is to achieve ongoingchange in the attitudes and actions of managementthat will flow out across the entire organization,
based on an accurate understanding of one's own
current situation.

Business leader
training

Shunan Community
Dialogue~ Relationship with Employees ~Basic Philosophy

MessageTokuyama Plant
The "Fourth Shunan Responsible Care Regional
Dialogue" (a meeting on environmental protection in
the Shunan region attended by 15 companies) was
held on November 13, 2007. The meeting wasattended by 165 people, most of whom were fromlocal government, and involved a lively exchange of
opinions. This was the first time the meeting had
included a round-table discussion and resulted in
hopes and expectations for involvement in local
government activities.

Television appearances
In October 2007, President Furukawa appeared on the"Maidohaya" television program broadcast by KitaNippon Broadcasting in an item entitled "a newfactory for the era of terrestrial digital broadcasting"(subtitled: "a new star for ZEON Corporation") where
he introduced the new factory and explained the
production process for optical film for LCD
televisions, spoke of the mission to “make Toyama aleading international production hub”, and extolled
the virtues of “working at ZEON”. President
Wakamatsu of Optes Inc. (see page 50) also appearedon the same program where he promoted theexcellent quality of his company's optical film.

Social Activity Performance

Performance

CSR Report

Relationship with the Local
Community

Relationship with Employees
ZEON strives to be a company that inspires pride in each and every employee.

Our relationship with the local community is also described in the Site reports “Living together with thelocal community” on page 37 onwards.

Responsible Care Community
Dialogue

Performance
Site Reports

17Management

Coordination with off-sitetraining, technology transfer

ZEON aims to establish an environment in [Overview of the education program]
Global Specialized On-the-job
Training for
CommonSelfCareerwhich employees can set their own lofty goal
Leadership
Hierarchy
different levels of design knowledge developm employee training
training
trainingof "being what we want to be" and in which,training
the organization training
training
ent(OJT)
to achieve this goal, they can think rigorously,
Management
accept challenges, and continue to changeManagement
Newly
appointed
Having set "being what we want to be" as an
management
objective for everyone, ZEON has changed its Subordinate
Subordinate
management
education and training practices to make management
Mid-level
them relevant to specific daily activities and Mid-level
employees
employees
not just to filling the gap between this New entrants
New entrants
objective and current reality. The results
achieved though these activities are
Global employee training
evaluated fairly and actioned with the aim that thisZEON has expanded its internal and external training
will lead to further lofty goals.
programs for the ongoing training of employees
Improvement in the "workplace strength" across theinvolved in the company's rapid global expansion.
entire company is the result of the cumulative
One example is the "English course for training key
innovations and improvements achieved by theoverseas staff" established in 2007. In addition to
specific activities of individual employees.
English conversation, the curriculum aims to instill
Education and training at ZEON is broadly divided
practical skills that are immediately useful in specificinto core education that is targeted at all employees
business situations such as presentation, negotiationand focuses primarily on raising awareness andand business writing.
acquisition of common knowledge, specialist
education for various specific jobs, and on-the-job
Multi-faceted performance appraisals thattraining conducted in the workplace.
change attitudes and actions
In particular, the curriculum was revised in 2007 to
The training for newly appointed managers in 2007
make training not something that occurs on a
involved comprehensive discussion amongst all the
temporary basis but something that leads to practicalparticipants on each person's action plan for "changing
changes in the way things are done. Also, toZEON" which they then vowed to carry out. The
strengthen training for employees who deal withsubsequent 360 degree multi-faceted performance
global business, practices were changed to link withappraisals involved forthright and provocative feedback
the practical areas where work is performed and tofrom others at the same, higher, and lower levels in thetake advantage of the results.
organization and I felt provided me with the opportunity
Education for Newly-Appointed Managers
to review my own situation on a monthly basis as I
worked through my action plan. For"Improvement in workplace strength" is an
someone like myself who is approachingorganizational requirement in which newly-appointed
40 years of age and hopes to grow inmanagers are expected to play a driving role. In thematurity in both the public and personalarea of training for newly-appointed managers,
parts of my life, I am
training covering areas such as awareness raising and
Masahiro Tomono
grateful for thisTokuyama Plant
required knowledge was conducted for management
challenging training.
and at the same time rigorously thought-out specific
Manufacturing, engineering,business, commerce,
research, technology,
planning

16

Commemorative
photograph

Encourage employees to keep
challenging lofty goals under theirown initiative

MOT, MBA, overseas study,
overseas-derived training
courses, TOEIC

Newspaper article on
the Chemical Industry

An easy working
environment thatemphasizes
dialogue

Communication training,support for obtaining
qualifications

Visitors listen intently
to a presentation
Community Dialogue with
Takaoka in Toyama

Human resources
system allows asense of challenge
and achievement

Environmental safety, quality,
production, CSR, compliance,
information systems,
accounting

Takaoka Plant
Takaoka Plant participated as an organizing company
at the "Fourth RC Community Dialogue" held at
Takaoka City, Toyama Prefecture in March 2008. The
dialogue was attended by more than 100 people,
primarily from local government, and involved
updates and presentations on the activities of fivecompanies along with a lively exchange of opinion.
(See related article on page 41.)

Joint initiatives with universities(Mizushima Plant)
In December 2007, Mizushima Plant was opened to asite visit from everyone at Kagawa University (Social
Science Laboratory, Faculty of Education).
Although these factory open days are held several
times a year for high school students, this was thefirst time that university students had been invited.
The tour included a visit to the Integrated Production
Center (IPC) building that had only just been opened
in November. The IPC is a manufacturing facility thatallows for fast decision making and implementation
with the objective of safe and reliable production andoverall optimization. The way the visitors listened
intently to the explanation from deputy factory
manager Nishijima in the Discussion Room was
impressive.

Encourage employees
to keep challenging
lofty goals under theirown initiative(30/40/50
age ranges)

Scene from the interview (TV image)

ZEON strives to be a company
that inspires pride in each andevery employee

action plans were established with the aim of"changing (reforming) ZEON". In addition to
managing the progress of these action plans after
returning to the workplace, a monthly program of 360
degree multi-faceted performance appraisals wereintroduced as a tool to support awareness raising andencourage action.
The 360 degree multi-faceted performance appraisals
are directed towards the objective of "being what wewant to be" and involve providing individuals withfeedback through reviews covering 14 categories byother employees at the same, higher, and lower levelsof the organization. The aim is to achieve ongoingchange in the attitudes and actions of managementthat will flow out across the entire organization,
based on an accurate understanding of one's own
current situation.

Business leader
training

Shunan Community
Dialogue~ Relationship with Employees ~Basic Philosophy

MessageTokuyama Plant
The "Fourth Shunan Responsible Care Regional
Dialogue" (a meeting on environmental protection in
the Shunan region attended by 15 companies) was
held on November 13, 2007. The meeting wasattended by 165 people, most of whom were fromlocal government, and involved a lively exchange of
opinions. This was the first time the meeting had
included a round-table discussion and resulted in
hopes and expectations for involvement in local
government activities.

Television appearances
In October 2007, President Furukawa appeared on the"Maidohaya" television program broadcast by KitaNippon Broadcasting in an item entitled "a newfactory for the era of terrestrial digital broadcasting"(subtitled: "a new star for ZEON Corporation") where
he introduced the new factory and explained the
production process for optical film for LCD
televisions, spoke of the mission to “make Toyama aleading international production hub”, and extolled
the virtues of “working at ZEON”. President
Wakamatsu of Optes Inc. (see page 50) also appearedon the same program where he promoted theexcellent quality of his company's optical film.

Social Activity Performance

Performance

CSR Report

Relationship with Employees

A human resources system thatgives employees a sense ofchallenge and achievement* Items in blue were added in 2007

Expansion of flexi-time system
I took eleven months maternity leave after having my babies in June 2007 and returned
to work in May 2008. Although, prior to returning to work, I was worried whether I would
be able to manage work, housework and child care, I spoke with my supervisor before
going back and they consented to my using the flexi-time system for tasks such as
taking my children to day care.
Now, I am able to manage my affairs in a reasonable way with the understanding andcooperation of the other people in the workplace. Although I
Taeko Goto
have only just come back to work, I have found that I am able to
Head Officecombine work, housework and child care and have come to(Employee who tookcherish even more the time I spend with my children.
child care leave)

19

Site Reports

18

Loans and self-help disaster assistance, medical indemnity, compensation for absence fromwork (ZEON health insurance cooperative association), optional groupinsurance, group life insurance, etc.

Performance

The union carries out a questionnaire on the appraisal
system every year. The results of the 2007
questionnaire indicated that 83% of employees agreed
with their appraisals.
In the future, ZEON will continue to work at
establishing systems that allow everyone to perform
creative work that adds more value, and that
distribute opportunity and results fairly andimpartially.
Awards system (ZEON Challenge Award)Awards schemes include the Employee of the Month(bestowed by department managers on a monthly
basis) and the annual President's Award, whereby
individual employees and departments nominate a
specific challenge at the start of the year and are
judged on their progress in the nominated area.
Annual awards include the President's Award,
Excellence Award and Department Manager Award
which are handed out at a lavish annual ceremonyand dinner function. The event always includes
surprises - for example, the families of the winners
are invited to attend, unbeknownst to thewinners themselves. It provides an important
opportunity to celebrate their achievements
while looking forward to the challenges of the
Human resources system creates acoming year.
sense of achievement and challenge
ZEON Master system (Reemployment
Performancesystem)appraisal system
Winners of Presiden'Awart, 2007 A reemployment system has been introduced
that allows retired employees who haveZ∑ allowance
Bonus is linked A human resources
valuableskills and a desire to remain involved withawards system
to results
system that gives
the company to continue working after retirement
employees a sense ofage. As a mark of respect, reemployed staff arechallenge and achievement
referred to as "master (employees)".
Of the 90 employees who retired in 2007, 62 (69%) are
Severance
ZEON Masterpay systemsystemactive as master employees.

your health" and "supporting self-reliance (based on alife plan)".
Support for raising the next generation
Motivation, reliability, achievement,
The "Law for Measures to Support the Development
stability and safety, securityof the Next Generation" came into force in 2005 aspart of government policy for dealing with the lowbirth rate.
Creating an easy working environment
Based on this law, ZEON has established an action
plan up to March 2009 for supporting the raising of
the next generation. To date, the company has
Flexible work practices
Working environment,(compliance withintroduced measures such as the "expansion of
dialogue, health, self-relianceregulations)reasons for allowing employees to take a half-day
holiday" and a new support system called the "partWith compliance with regulations as a prerequisite,
time
work system" to help employees manage child
ZEON strives to achieve flexible working practices
care
and support work-life balance, and is taking
based on the company's key words of "motivation",steps to ensure that the operational and other aspects"reliability", "achievement", "stability and safety", andof these work smoothly. All female employees who"security". In terms of health and welfare programs,
gavebirth took child-care leave and two malethe company has an ongoing commitment toemployees
also took child-care leave.
"creating an easy working environment" centered
New measures added in the 2007 financial year
around the four perspectives of "better workplace(1) Expansion of reasons for allowing employees toenvironments", "encouraging dialogue", "improving
take a half-day holiday[Organizational structure and practices aimed at realizing an easy working environment] Child care responsibiliFlexi-time scheme, recognition for work performed outside the workplace, discretionary workties, parti-cipation at
Flexiblehours scheme for specialist and planning work, special holiday encouragement days, half-day
children's school activiholidays, no-overtime days, self-improvement activities, training for managerial and supervisory
workingties, and the birthday of astaff, survey of actual conditions, instruction form for out of hours work, labor/management
practicescommittee, labor/management patrol
spouse or child were
Support for Maternity leave before and after birth, child care/care giver leave system, part-time work system, added
aspermitted
combining limits on out-of-hours work and elimination of late night work, breast feeding time, leave to care for reasons.
work anda sick child, child care/care giver leave support system, babysitting system(2) Part-time work systemchild careThis program applies toFinancial planning seminars, employees' savings scheme (incentives for
employees recognized by
Asset accumulation retirement savings), employee share scheme (with financial incentives),
defined-contribution (DC) pension
the company who are
Housing assistance system (dormitory and company housing, rent subsidy
living with and raising a
Housing assistance system, home ownership allowance, home rental for employees onchild up to and includingtransfer), housing loan system
the third year of elemenMarriage cash payment, honeymoon leave, spouse allowance
Marriage
Healthtaryschool.
Childbirth
cash
payment,
maternity
leave,
dependents
andtuitionandChildbirthallowancesThe
scope of the flexiwelfare
Holidays andCarry-over of holiday entitlements, My-life holidays, refresh holidays
time system for emplobusiness shutdown (Master employees)
yees with child care
Recreation facilities, Hakone Goraso Facility, Izu Ippeki Facility
responsibilities was also
training site
expanded.
Bereavement condolence payment, bereavement leave, study loan,

Management

Other significant features include:•Details of the appraisal system are made clear to all
employees•Each department and workplace holds appraisal
meetings at the start and end of the appraisal period thatbring together a number of appraisers. The beginning of
period meeting agrees on common objectives and issues
and assigns priorities, and the end of period meeting
carries out a review by a number of different people.
•Everyone participates in establishing the issues for theemployee being appraised at the start of the period andfeeding back the appraisal results at the end of theperiod.

An easy working environmentthat emphasizes dialogue

Message

ZEON believes that a truly competitive company is
the sum of the skills of its employees and we aim tocreate a human resources system that gives
employees a sense of achievement by giving each
employee the opportunity to challenge lofty goals, toact on these goals, and to have the outcomes treatedfairly, with the entire organization pointing in thesame direction.
A bonus scheme linked to corporate results anddepartmental results helps establish a sense ofcompany unity by encouraging everyone to work
together to contribute to company performance.
Z∑- allowance has been introduced as an incentive
for ongoing cost reduction activities.
The severance pay system takes account of
performance appraisals over the ten years prior to
retirement age and reflects this in the lump sum
payment on retirement with the expectation that
employees will remain motivated and feel acontinuing sense of achievement right up to
retirement age.
After retirement, former employees have theopportunity to remain involved with the company bybecoming a "ZEON Master" to help pass on skills andtrain their successors.
Fair performance assessment system provides asense of achievement and challenge
An objectives-based performance appraisal system
has been introduced with the aim that all employees
will challenge lofty goals. Also, annual training isprovided both for those doing the assessing andthose being assessed so that the appraisals are donein a fair and balanced way.
A particular emphasis is put on giving employees asense of ownership of the appraisals and the aim is tocreate a corporate culture overflowing with a senseof achievement and aspiration (a sense of challenge
and creative desire) by making the expectations,work duties and target results foreach person clear at the start ofeach period and sharing these between superiors andsubordinates, and by making a fair appraisal of workand results (contribution to the organization) at theend of the appraisal period.
On the other hand, systems have been revised asnecessary to include factors such as processevaluation and level of contribution to the team toprevent individualism and too much emphasis being
placed on results.

Social Activity Performance

Performance

CSR Report

Relationship with Employees

A human resources system thatgives employees a sense ofchallenge and achievement* Items in blue were added in 2007

Expansion of flexi-time system
I took eleven months maternity leave after having my babies in June 2007 and returned
to work in May 2008. Although, prior to returning to work, I was worried whether I would
be able to manage work, housework and child care, I spoke with my supervisor before
going back and they consented to my using the flexi-time system for tasks such as
taking my children to day care.
Now, I am able to manage my affairs in a reasonable way with the understanding andcooperation of the other people in the workplace. Although I
Taeko Goto
have only just come back to work, I have found that I am able to
Head Officecombine work, housework and child care and have come to(Employee who tookcherish even more the time I spend with my children.
child care leave)

19

Site Reports

18

Loans and self-help disaster assistance, medical indemnity, compensation for absence fromwork (ZEON health insurance cooperative association), optional groupinsurance, group life insurance, etc.

Performance

The union carries out a questionnaire on the appraisal
system every year. The results of the 2007
questionnaire indicated that 83% of employees agreed
with their appraisals.
In the future, ZEON will continue to work at
establishing systems that allow everyone to perform
creative work that adds more value, and that
distribute opportunity and results fairly andimpartially.
Awards system (ZEON Challenge Award)Awards schemes include the Employee of the Month(bestowed by department managers on a monthly
basis) and the annual President's Award, whereby
individual employees and departments nominate a
specific challenge at the start of the year and are
judged on their progress in the nominated area.
Annual awards include the President's Award,
Excellence Award and Department Manager Award
which are handed out at a lavish annual ceremonyand dinner function. The event always includes
surprises - for example, the families of the winners
are invited to attend, unbeknownst to thewinners themselves. It provides an important
opportunity to celebrate their achievements
while looking forward to the challenges of the
Human resources system creates acoming year.
sense of achievement and challenge
ZEON Master system (Reemployment
Performancesystem)appraisal system
Winners of Presiden'Awart, 2007 A reemployment system has been introduced
that allows retired employees who haveZ∑ allowance
Bonus is linked A human resources
valuableskills and a desire to remain involved withawards system
to results
system that gives
the company to continue working after retirement
employees a sense ofage. As a mark of respect, reemployed staff arechallenge and achievement
referred to as "master (employees)".
Of the 90 employees who retired in 2007, 62 (69%) are
Severance
ZEON Masterpay systemsystemactive as master employees.

your health" and "supporting self-reliance (based on alife plan)".
Support for raising the next generation
Motivation, reliability, achievement,
The "Law for Measures to Support the Development
stability and safety, securityof the Next Generation" came into force in 2005 aspart of government policy for dealing with the lowbirth rate.
Creating an easy working environment
Based on this law, ZEON has established an action
plan up to March 2009 for supporting the raising of
the next generation. To date, the company has
Flexible work practices
Working environment,(compliance withintroduced measures such as the "expansion of
dialogue, health, self-relianceregulations)reasons for allowing employees to take a half-day
holiday" and a new support system called the "partWith compliance with regulations as a prerequisite,
time
work system" to help employees manage child
ZEON strives to achieve flexible working practices
care
and support work-life balance, and is taking
based on the company's key words of "motivation",steps to ensure that the operational and other aspects"reliability", "achievement", "stability and safety", andof these work smoothly. All female employees who"security". In terms of health and welfare programs,
gavebirth took child-care leave and two malethe company has an ongoing commitment toemployees
also took child-care leave.
"creating an easy working environment" centered
New measures added in the 2007 financial year
around the four perspectives of "better workplace(1) Expansion of reasons for allowing employees toenvironments", "encouraging dialogue", "improving
take a half-day holiday[Organizational structure and practices aimed at realizing an easy working environment] Child care responsibiliFlexi-time scheme, recognition for work performed outside the workplace, discretionary workties, parti-cipation at
Flexiblehours scheme for specialist and planning work, special holiday encouragement days, half-day
children's school activiholidays, no-overtime days, self-improvement activities, training for managerial and supervisory
workingties, and the birthday of astaff, survey of actual conditions, instruction form for out of hours work, labor/management
practicescommittee, labor/management patrol
spouse or child were
Support for Maternity leave before and after birth, child care/care giver leave system, part-time work system, added
aspermitted
combining limits on out-of-hours work and elimination of late night work, breast feeding time, leave to care for reasons.
work anda sick child, child care/care giver leave support system, babysitting system(2) Part-time work systemchild careThis program applies toFinancial planning seminars, employees' savings scheme (incentives for
employees recognized by
Asset accumulation retirement savings), employee share scheme (with financial incentives),
defined-contribution (DC) pension
the company who are
Housing assistance system (dormitory and company housing, rent subsidy
living with and raising a
Housing assistance system, home ownership allowance, home rental for employees onchild up to and includingtransfer), housing loan system
the third year of elemenMarriage cash payment, honeymoon leave, spouse allowance
Marriage
Healthtaryschool.
Childbirth
cash
payment,
maternity
leave,
dependents
andtuitionandChildbirthallowancesThe
scope of the flexiwelfare
Holidays andCarry-over of holiday entitlements, My-life holidays, refresh holidays
time system for emplobusiness shutdown (Master employees)
yees with child care
Recreation facilities, Hakone Goraso Facility, Izu Ippeki Facility
responsibilities was also
training site
expanded.
Bereavement condolence payment, bereavement leave, study loan,

Management

Other significant features include:•Details of the appraisal system are made clear to all
employees•Each department and workplace holds appraisal
meetings at the start and end of the appraisal period thatbring together a number of appraisers. The beginning of
period meeting agrees on common objectives and issues
and assigns priorities, and the end of period meeting
carries out a review by a number of different people.
•Everyone participates in establishing the issues for theemployee being appraised at the start of the period andfeeding back the appraisal results at the end of theperiod.

An easy working environmentthat emphasizes dialogue

Message

ZEON believes that a truly competitive company is
the sum of the skills of its employees and we aim tocreate a human resources system that gives
employees a sense of achievement by giving each
employee the opportunity to challenge lofty goals, toact on these goals, and to have the outcomes treatedfairly, with the entire organization pointing in thesame direction.
A bonus scheme linked to corporate results anddepartmental results helps establish a sense ofcompany unity by encouraging everyone to work
together to contribute to company performance.
Z∑- allowance has been introduced as an incentive
for ongoing cost reduction activities.
The severance pay system takes account of
performance appraisals over the ten years prior to
retirement age and reflects this in the lump sum
payment on retirement with the expectation that
employees will remain motivated and feel acontinuing sense of achievement right up to
retirement age.
After retirement, former employees have theopportunity to remain involved with the company bybecoming a "ZEON Master" to help pass on skills andtrain their successors.
Fair performance assessment system provides asense of achievement and challenge
An objectives-based performance appraisal system
has been introduced with the aim that all employees
will challenge lofty goals. Also, annual training isprovided both for those doing the assessing andthose being assessed so that the appraisals are donein a fair and balanced way.
A particular emphasis is put on giving employees asense of ownership of the appraisals and the aim is tocreate a corporate culture overflowing with a senseof achievement and aspiration (a sense of challenge
and creative desire) by making the expectations,work duties and target results foreach person clear at the start ofeach period and sharing these between superiors andsubordinates, and by making a fair appraisal of workand results (contribution to the organization) at theend of the appraisal period.
On the other hand, systems have been revised asnecessary to include factors such as processevaluation and level of contribution to the team toprevent individualism and too much emphasis being
placed on results.

Social Activity Performance

Performance
CSR Report

Relationship with Employees

Environmental and
Safety Training
We are fully committed to safety management with training carried out at head office andspecial training exercises performed at each plant.

Central consultative meeting between management and labor

ZEON labor union

Building the opportunities to enjoy ahappy life
The ZEON labor union had 1,539 members as of March2008.
The union agreed a "Joint Declaration by Labor andManagement" in 1998. This move was deployed byreaffirming a commitment to the company and to
working conditions in which all employees can takepride, based on core values of contributing to society,innovative technology and participation by all achieved
through a strong partnership between management andlabor.
Subsequently, recognizing that the continued existence
and growth of the company is a prerequisite formaintaining employment and sustaining and improving
the standard of living, the union has taken an active rolein the business of the company through measures suchas the labor union itself purchasing company shares.

20

Union members are involved in implementing thedeclarations and other measures formulated withconsideration for the opinions of union members
obtained through consultation such as at the monthly
formal and informal meetings between management
and labor, with the aim of creating "overall working
conditions that allow life and job satisfaction".
ZEON continues to see trust between workers andmanagement as the foundation underlying progress
towards our CSR strategy of creating "a company thatis trusted by the public and a source of pride to its
employees" and our overall vision of "building theopportunities to enjoy
an even happier life".

Toshiyuki Koumura
Chairman, Central
Action Committee
ZEON Labor Union

Training for production
managers(Scene from group lesson
about the value of analysis)

taken in 2007 to extend to the plants a practicallearning system that was launched in 2004, and we
conduct ongoing training programs for employeesthat use simulations to raise their awareness ofsafety. Specifically, we held a practical fire drill and asimulation of being caught up in a rolling mill.

Site Reports

Dialogue planning
Bowling event

Manager and supervisor training"Production Manager Training" and "Foreman
Training" programs held over two days and aimed atplant staff with front-line responsibility for safety
management were jointly organized by the Human
Resource Department and Environmental & Safety
Affairs Department. Since 2004, these training
sessions have encouraged participants from theproduction and maintenance departments, including
the maintenance superintendant, to work together.
The training has covered environmental and safety
laws, classroom work on basic safety, awarenesseducation conducted via group discussions on
preventing accidents and workplace injuries, andcourses conducted by external tutors on "How to
Carry Out Workplace Tours and Inspections" thatbuild on basic learning about how best to go about
performing inspections. Priority has also been placedon training in techniques for root cause analysis in aneffort to prevent problems reoccurring.
The Safety Environmental Affairs Department also
provides executives from affiliated companies withannual training designed to promote awareness ofsafety issues.
In addition, training for new production managers
and environment and safety managers was held twice
during the 2007 year.
Safety training by past plant managers
A trial using past plant managers with extensive
knowledge and experience to provide safety training
for employees was continued. Since 2003, safety
training for all plant staff has been carried out withpast plant managers as tutors. In 2007, this course
used a video of an experimental explosion todemonstrate the danger inherent in familiar
chemicals and other products, using an actual recent
example of a serious workplace accident as an
example. The training was well received and similar
training will continue in the future.

Performance(3) Dialogue between employees
Although its culture is already dialogue-friendly,
ZEON takes steps to encourage dialogue in various
different situations in the hope that this will go some
way to help bridge the gaps between departments
and workplaces and between generations.
The company also has a program called "dialogue
planning" that underlies the area of health andwelfare by setting up
situations for free andfrank discussion between employees and also
including families and thecommunity.

Training at the Head Office

Foreman training(Scene from group discussion on preventing workplace accidents)

Environment and Safety Training
Exercises at Plants
ZEON performs "Abnormality Anticipation Drills","Emergency Training", "Comprehensive Fire Drills"
and "Report Training" as part of an annual plan. We
are also involved in everyday activities such as aforklift driving safety contest. Active steps were also

Scene from the fire drill
and practical fire fighting
training exercise (hosted
by the Mizushima Industrial Complex Civil Defense Association)

Management

Research presentation meeting(2) Dialogue between management and labor
Numerous opportunities for exchanges of opinion areprovided including formal and informal meetings
between management and labor, RC audits, and joint
management and labor patrols.
Although consultative meetings between management and labor provide ample opportunity forforthright discussion, both sides enter into this with aforward-looking attitude and a mutual spirit offriendly rivalry based on an underlying trust between
management and labor.

Message

Measures to encourage dialogue
ZEON places a high value on teamwork andemphasizes dialogue (communication) as a way tocreate a common understanding between all employees and a workplace in which everyone showsconcern for each other, and to improve "workplacestrength".
Not only dialogue between management andemployees, but dialogue between the company andthe overall workforce and between separate
workplaces are all critical to overcoming the barriers
between different departments, getting the entire
company working in the same direction and building
a sense of satisfaction and pride amongst employees.
(1) Dialogue with management
ZEON takes active measures such as holding policy
explanation meetings where managers from the
President on down visit the workplace to give
explanations and provide an opportunity forexchanges of opinion. During 2007, 31 such events
involving the President took place in factories and 15
at the R&D Center.
Some of these opinion sharing meetings included theopportunity for the attendees to share a few drinks toencourage a more in depth dialogue.

Hands on training for new employees at
Mizushima Plant

21

Social Activity Performance

Performance
CSR Report

Relationship with Employees

Environmental and
Safety Training
We are fully committed to safety management with training carried out at head office andspecial training exercises performed at each plant.

Central consultative meeting between management and labor

ZEON labor union

Building the opportunities to enjoy ahappy life
The ZEON labor union had 1,539 members as of March2008.
The union agreed a "Joint Declaration by Labor andManagement" in 1998. This move was deployed byreaffirming a commitment to the company and to
working conditions in which all employees can takepride, based on core values of contributing to society,innovative technology and participation by all achieved
through a strong partnership between management andlabor.
Subsequently, recognizing that the continued existence
and growth of the company is a prerequisite formaintaining employment and sustaining and improving
the standard of living, the union has taken an active rolein the business of the company through measures suchas the labor union itself purchasing company shares.

20

Union members are involved in implementing thedeclarations and other measures formulated withconsideration for the opinions of union members
obtained through consultation such as at the monthly
formal and informal meetings between management
and labor, with the aim of creating "overall working
conditions that allow life and job satisfaction".
ZEON continues to see trust between workers andmanagement as the foundation underlying progress
towards our CSR strategy of creating "a company thatis trusted by the public and a source of pride to its
employees" and our overall vision of "building theopportunities to enjoy
an even happier life".

Toshiyuki Koumura
Chairman, Central
Action Committee
ZEON Labor Union

Training for production
managers(Scene from group lesson
about the value of analysis)

taken in 2007 to extend to the plants a practicallearning system that was launched in 2004, and we
conduct ongoing training programs for employeesthat use simulations to raise their awareness ofsafety. Specifically, we held a practical fire drill and asimulation of being caught up in a rolling mill.

Site Reports

Dialogue planning
Bowling event

Manager and supervisor training"Production Manager Training" and "Foreman
Training" programs held over two days and aimed atplant staff with front-line responsibility for safety
management were jointly organized by the Human
Resource Department and Environmental & Safety
Affairs Department. Since 2004, these training
sessions have encouraged participants from theproduction and maintenance departments, including
the maintenance superintendant, to work together.
The training has covered environmental and safety
laws, classroom work on basic safety, awarenesseducation conducted via group discussions on
preventing accidents and workplace injuries, andcourses conducted by external tutors on "How to
Carry Out Workplace Tours and Inspections" thatbuild on basic learning about how best to go about
performing inspections. Priority has also been placedon training in techniques for root cause analysis in aneffort to prevent problems reoccurring.
The Safety Environmental Affairs Department also
provides executives from affiliated companies withannual training designed to promote awareness ofsafety issues.
In addition, training for new production managers
and environment and safety managers was held twice
during the 2007 year.
Safety training by past plant managers
A trial using past plant managers with extensive
knowledge and experience to provide safety training
for employees was continued. Since 2003, safety
training for all plant staff has been carried out withpast plant managers as tutors. In 2007, this course
used a video of an experimental explosion todemonstrate the danger inherent in familiar
chemicals and other products, using an actual recent
example of a serious workplace accident as an
example. The training was well received and similar
training will continue in the future.

Performance(3) Dialogue between employees
Although its culture is already dialogue-friendly,
ZEON takes steps to encourage dialogue in various
different situations in the hope that this will go some
way to help bridge the gaps between departments
and workplaces and between generations.
The company also has a program called "dialogue
planning" that underlies the area of health andwelfare by setting up
situations for free andfrank discussion between employees and also
including families and thecommunity.

Training at the Head Office

Foreman training(Scene from group discussion on preventing workplace accidents)

Environment and Safety Training
Exercises at Plants
ZEON performs "Abnormality Anticipation Drills","Emergency Training", "Comprehensive Fire Drills"
and "Report Training" as part of an annual plan. We
are also involved in everyday activities such as aforklift driving safety contest. Active steps were also

Scene from the fire drill
and practical fire fighting
training exercise (hosted
by the Mizushima Industrial Complex Civil Defense Association)

Management

Research presentation meeting(2) Dialogue between management and labor
Numerous opportunities for exchanges of opinion areprovided including formal and informal meetings
between management and labor, RC audits, and joint
management and labor patrols.
Although consultative meetings between management and labor provide ample opportunity forforthright discussion, both sides enter into this with aforward-looking attitude and a mutual spirit offriendly rivalry based on an underlying trust between
management and labor.

Message

Measures to encourage dialogue
ZEON places a high value on teamwork andemphasizes dialogue (communication) as a way tocreate a common understanding between all employees and a workplace in which everyone showsconcern for each other, and to improve "workplacestrength".
Not only dialogue between management andemployees, but dialogue between the company andthe overall workforce and between separate
workplaces are all critical to overcoming the barriers
between different departments, getting the entire
company working in the same direction and building
a sense of satisfaction and pride amongst employees.
(1) Dialogue with management
ZEON takes active measures such as holding policy
explanation meetings where managers from the
President on down visit the workplace to give
explanations and provide an opportunity forexchanges of opinion. During 2007, 31 such events
involving the President took place in factories and 15
at the R&D Center.
Some of these opinion sharing meetings included theopportunity for the attendees to share a few drinks toencourage a more in depth dialogue.

Hands on training for new employees at
Mizushima Plant

21

Environment and Safety Activity Performance

Performance

CSR Report

Product Development
Eco-friendly Product Development
Products that Promote Energy Saving

Synthetic rubber for
fuel-efficient tires

Automobile tire made of fuel-efficient synthetic rubber

Zeoglobule® polymerized
toner

EnergySaving

Zeorora® H
As recently discussed at the
Toyako Environmental Summit
held in Hokkaido, measures todeal with environmental probDetergent Objects
lems on a global scale such as preventing
global warming and the depletion of theozone layer are becoming important issues.
Zeorora® H is a detergent with excellent
environmental characteristics including an
ozone depletion coefficient of zero andminimal effect on global warming. The
benefits of the product have been publicallyacknowledged through commendations
EPA Ozonesuch as the Stratospheric Ozone Protection
Protection Award
Award from the U.S. EPA and the GSC
Environmental Award from the Green & Sustainable
Chemistry Network (GSCN). It is now exhibited at the"Aiming for Green Chemistry" booth at the National
Science Museum in Tokyo.

Global Warming
Prevention

Products that Help Eliminate Use of Organic Solvents

Previous production methods for adhesive taperequired the use of solvents and therefore resulted
in the release of VOCs (volatile organic compounds)
into the environment.
On the other hand, using ZEON's Quintac® thermoplastic elastomer which has a block structure ofpolystyrene and polyisoprene allows adhesive tape
to be produced without the use of solvents andtherefore helps reduce VOC pollution. It also saves
th
th t
i
l
dt
t

22

Products that Encourage theElimination of Organic Solvents

Quintone® C5 petrole
resin for hot-melt roa

Reduction of
VOC Emissions

Quintone® C200 series
Hot melt road marking paints
C200 series as a binder can be used without
solvents. This helps reduce VOC (volatile organic
compound) pollution.

Reducing
Environmental
Risks

Products with Low Environmental Risks
Plant growth regulator

Jasmonate®
This product is a plant growth regulator
derived from jasmonic acid (an aroma
compound of flowers) that controls the
ripening process of fruits and improves theenvironmental resilience of plants. It helps
prevent problems such as discoloration inapples and skin damage in mandarins thathave become more common in recent
years due to climatic warming.

Jasmonate® has been
well received by the
agriculture industry andwas awarded the 2005
Technology Prize by the
Jasmonate Solution
Japanese Society for
Chemical Regulation of Plants. It is
becoming more widely used for nashi in
South Korea and grapes and tropical fruit in
Taiwan.

Research into environmental
solvents is well-regarded

de withZeonorProducts with Low Environmental Risks

Cycloolefin polymer

ZEONEX®
ZEONOR®

CPME is used as a solvent in chemical
processes for pharmaceuticals, agrichemicals
and electronic materials as a substitute forexisting ethers (THF, ether, etc.) which have anumber of different problems.
If CPME is used in ways that take advantage ofits characteristics, the benefits include energy
savings and less impact on the environment.
1) Its lack of water solubility means it can easily
be separated from water and recycled. This
reduces waste water and waste fluid
volumes.
2) Because it does not readily form peroxides, it
can easily be recovered by distillation.
3) Significant cost savings can be achieved on
both variable and fixed costs because thereaction, extraction and crystallization
processes can all use the same solvent.
CPME won the 2006 prize from the Societyof Synthetic Organic Chemistry in Japan.

Lenses and prisms

ZEONEX® and ZEONOR® are new thermoplastics withsuperior physical properties that were developed using ourunique technology with consideration for the environment,
safety and health.
These polymers have very low levels of impurities
compared to other plastics and because they are
manufactured from hydrocarbon resins with low
environmental risks, no hazardous gases are released
during incineration. They are widely used in various fields
including cameras and office equipment, liquid crystal andother optical components, medical and inspection
equipment, containers, and electronic devices.

We are involved in research and sales of products
such as solvents that contribute to environmental
protection and agrichemicals that improve fruit
harvests. This
work has beenwell-regarded
outsidethe
com-pany andhas
been
rewarded withawards fromvarious industry associations.

Masami Koshiyama
Specialty Materials
Laboratory,
R&D Center

Noriyasu Otsuki Kiyoshi Watanabe
Chemical Products
Division

Chemical Products
Division

23

Site Reports

Quintac® solvent-freethermoplastic elastomer foradhesive tape

Cyclo-pentyl methyl ether (CPME)

Performance

Pulverization is the conventional
Naoaki Kuramoto
method for producing the toner used
Rubber Research Groupin copiers and similar equipment.
Elastomer C5 Laboratory
However, it is also known that using
polymerization for toner production
reduces energy consumption during Toner electron microscope
image
production and results in finer tonerparticles.
The microcapsule toner produced using a polymerization method developed
by ZEON contributes to better print quality and allows the fixing temperature
to be lowered. This in turn allows faster printing speeds, smaller printers,
and better energy efficiency.

Products with Low Environmental Risks
New ether solvent

Management

Products that Promote Energy Saving

The general-purpose rubber development team has the job of developing
environmentally friendly rubber for use
in tires. While fuel-efficient vehicles
with hybrid engines are one way of
reducing vehicle CO2 emissions,
reducing the rolling resistance of tires
also reduces fuel consumption. We
work at the molecular level to designand develop rubber with excellent fuelefficiency performance that we thensupply to tire manufacturers.
Seeingthese
eco-tires
becoming more widely usedmakes us feel for a
moment that weare contributing to
the society and theenvironment.

Products that Help Protect the Ozone Layer
and Prevent Global Warming
Next generation
fluorocarbon detergent

Message

Synthetic rubber is the primary material usedin the car tires that contribute to the safety
and comfort of vehicles. In developing
synthetic rubber that makes tires more fuelefficient, ZEON has succeeded improving
energy losses by 20%. Tires produced using
this rubber can improve fuel consumption by
1.5% (estimate by ZEON), saving on fueluse and reducing CO2 emissions.

Using tires to help reduce
fuel consumption

Environment and Safety Activity Performance

Performance

CSR Report

Product Development
Eco-friendly Product Development
Products that Promote Energy Saving

Synthetic rubber for
fuel-efficient tires

Automobile tire made of fuel-efficient synthetic rubber

Zeoglobule® polymerized
toner

EnergySaving

Zeorora® H
As recently discussed at the
Toyako Environmental Summit
held in Hokkaido, measures todeal with environmental probDetergent Objects
lems on a global scale such as preventing
global warming and the depletion of theozone layer are becoming important issues.
Zeorora® H is a detergent with excellent
environmental characteristics including an
ozone depletion coefficient of zero andminimal effect on global warming. The
benefits of the product have been publicallyacknowledged through commendations
EPA Ozonesuch as the Stratospheric Ozone Protection
Protection Award
Award from the U.S. EPA and the GSC
Environmental Award from the Green & Sustainable
Chemistry Network (GSCN). It is now exhibited at the"Aiming for Green Chemistry" booth at the National
Science Museum in Tokyo.

Global Warming
Prevention

Products that Help Eliminate Use of Organic Solvents

Previous production methods for adhesive taperequired the use of solvents and therefore resulted
in the release of VOCs (volatile organic compounds)
into the environment.
On the other hand, using ZEON's Quintac® thermoplastic elastomer which has a block structure ofpolystyrene and polyisoprene allows adhesive tape
to be produced without the use of solvents andtherefore helps reduce VOC pollution. It also saves
th
th t
i
l
dt
t

22

Products that Encourage theElimination of Organic Solvents

Quintone® C5 petrole
resin for hot-melt roa

Reduction of
VOC Emissions

Quintone® C200 series
Hot melt road marking paints
C200 series as a binder can be used without
solvents. This helps reduce VOC (volatile organic
compound) pollution.

Reducing
Environmental
Risks

Products with Low Environmental Risks
Plant growth regulator

Jasmonate®
This product is a plant growth regulator
derived from jasmonic acid (an aroma
compound of flowers) that controls the
ripening process of fruits and improves theenvironmental resilience of plants. It helps
prevent problems such as discoloration inapples and skin damage in mandarins thathave become more common in recent
years due to climatic warming.

Jasmonate® has been
well received by the
agriculture industry andwas awarded the 2005
Technology Prize by the
Jasmonate Solution
Japanese Society for
Chemical Regulation of Plants. It is
becoming more widely used for nashi in
South Korea and grapes and tropical fruit in
Taiwan.

Research into environmental
solvents is well-regarded

de withZeonorProducts with Low Environmental Risks

Cycloolefin polymer

ZEONEX®
ZEONOR®

CPME is used as a solvent in chemical
processes for pharmaceuticals, agrichemicals
and electronic materials as a substitute forexisting ethers (THF, ether, etc.) which have anumber of different problems.
If CPME is used in ways that take advantage ofits characteristics, the benefits include energy
savings and less impact on the environment.
1) Its lack of water solubility means it can easily
be separated from water and recycled. This
reduces waste water and waste fluid
volumes.
2) Because it does not readily form peroxides, it
can easily be recovered by distillation.
3) Significant cost savings can be achieved on
both variable and fixed costs because thereaction, extraction and crystallization
processes can all use the same solvent.
CPME won the 2006 prize from the Societyof Synthetic Organic Chemistry in Japan.

Lenses and prisms

ZEONEX® and ZEONOR® are new thermoplastics withsuperior physical properties that were developed using ourunique technology with consideration for the environment,
safety and health.
These polymers have very low levels of impurities
compared to other plastics and because they are
manufactured from hydrocarbon resins with low
environmental risks, no hazardous gases are released
during incineration. They are widely used in various fields
including cameras and office equipment, liquid crystal andother optical components, medical and inspection
equipment, containers, and electronic devices.

We are involved in research and sales of products
such as solvents that contribute to environmental
protection and agrichemicals that improve fruit
harvests. This
work has beenwell-regarded
outsidethe
com-pany andhas
been
rewarded withawards fromvarious industry associations.

Masami Koshiyama
Specialty Materials
Laboratory,
R&D Center

Noriyasu Otsuki Kiyoshi Watanabe
Chemical Products
Division

Chemical Products
Division

23

Site Reports

Quintac® solvent-freethermoplastic elastomer foradhesive tape

Cyclo-pentyl methyl ether (CPME)

Performance

Pulverization is the conventional
Naoaki Kuramoto
method for producing the toner used
Rubber Research Groupin copiers and similar equipment.
Elastomer C5 Laboratory
However, it is also known that using
polymerization for toner production
reduces energy consumption during Toner electron microscope
image
production and results in finer tonerparticles.
The microcapsule toner produced using a polymerization method developed
by ZEON contributes to better print quality and allows the fixing temperature
to be lowered. This in turn allows faster printing speeds, smaller printers,
and better energy efficiency.

Products with Low Environmental Risks
New ether solvent

Management

Products that Promote Energy Saving

The general-purpose rubber development team has the job of developing
environmentally friendly rubber for use
in tires. While fuel-efficient vehicles
with hybrid engines are one way of
reducing vehicle CO2 emissions,
reducing the rolling resistance of tires
also reduces fuel consumption. We
work at the molecular level to designand develop rubber with excellent fuelefficiency performance that we thensupply to tire manufacturers.
Seeingthese
eco-tires
becoming more widely usedmakes us feel for a
moment that weare contributing to
the society and theenvironment.

Products that Help Protect the Ozone Layer
and Prevent Global Warming
Next generation
fluorocarbon detergent

Message

Synthetic rubber is the primary material usedin the car tires that contribute to the safety
and comfort of vehicles. In developing
synthetic rubber that makes tires more fuelefficient, ZEON has succeeded improving
energy losses by 20%. Tires produced using
this rubber can improve fuel consumption by
1.5% (estimate by ZEON), saving on fueluse and reducing CO2 emissions.

Using tires to help reduce
fuel consumption

Environment and Safety Activity Performance

Performance
CSR Report

Safety and Accident Prevention

Achievements

A manufacturer's starting point is the plant. Our management and plants work together every day
to achieve their shared mission of "emphasizing safety, the environment and quality, andensuring a 100% accident-free and incident-free workplace".

Dialogue Between Management and Plants

Overview of 2007 Plan and Results
Item1

Promoteoccupational
health and safety(2) Enhance the 5S safety program and expand toaffiliates

The same 5S safety audit was performed companywide at
45 workplaces (once a year). 5S safety audits were also
performed at affiliated group companies.

(3) Training to raise awareness of accident prevention

Implemented at all four plants (also implemented at head
office and one affiliated company)(4) Zero environment incidents, zero safety incidents

One environment incident, one safety incident(1) Fully establish the “Occupational Health and Safety
Management System” and use risk assessment toeliminate dangers

Risk assessment for operations at each workplace
implemented annually 6.3 times/workplace(2) Zero lost-time accidents, zero serious non-lost-time
accidents

One lost-time accident, no serious non-lost-time accidents(1) Implement a voluntary management plan for airpolluting toxic substances
Reduce the butadiene air discharge from the 2006
level of 25.1t to 8.2t

Butadiene: 21.6t (14% reduction from previous year)

Reduce the acrylonitrile air discharge from the 2005
level of 24.7t to 18t

Acrylonitrile: 20.7t (16% reduction from previous year)(2) Implement a zero emissions plan for industrial waste
Reduce the volume of waste sent to landfill from the2006 level of 1,200t to 1,020t

Final landfill amount: 1522t (322t increase from previous
year)(3) Strengthen the company-wide energy conservation
project
Reduce unit energy consumption to 90.6% of the1990 level

Unit energy consumption reduced to 94.9% of the 1990
level

Collect information on energy used in distribution

Reported in fiscal 2007

(1) Implement product safety reviews for new products
and new applications

3 reviews performed(2) Provide customers with environmental and safety

Issued MSDS for all products and implemented corrections(implementation rate: 100%)

Promote chemical
information (MSDS)
safety and product(3) Report new substances (laws related to chemicalsafetysubstance investigation and production regulations,Occupational Health and Safety Law)

5

Promotedistribution safety

Performed correctly(4) Zero law violations

No law violations(1) Full operation of the yellow card

Training performed through the logistics council(2) Reduce burden on the environment

Simplifications to packaging and containers and improved
liquid product transport efficiencies are currently being
implemented(3) Zero logistics accident

No logistics accidents

Overview of Environmental Burdens
INPUT
Amount handled
Energy(Substances
308,000 kl
subject to(of crude oil
the PRTR law)equivalent)
781,000 tons
Water resources
19,680,000 m3

Takaoka Plant
Mizushima Plant
Tokuyama Plant

R&D Center
Kawasaki Plant

Atmospheric discharges•Substances subject to
the PRTR law 58 tons
204,000 tons-c•CO2
701 tons•SOx
Products
416 tons•NOx
1,113,000 tons

Recognizing that safety takes priority over all othermanagement issues, the president is at the forefrontof efforts to establish the best possible safety
management system across the whole company.
1. Introduction of an equipment information
management system to prevent omissions("Never rely on 'maybe' or 'should'").
We are making effective use of the reporting,inspection planning, inspection records andinspection omission detection functions of the new
system that was introduced in 2004. Upgrades arealso being made to the system for storing drawings.
2. Plant deterioration countermeasures andfoolproofing measures ("Good judgments savemoney")The essential elements for a safe and stableworkplace are people, equipment and money.
We formulate systematic countermeasures on ascientific basis, such as estimating the remaining
life of equipment. We are advancing fool-proofing
to prevent accidents by involving all employees inbrainstorming.
3. Review of past accidents and recurrence prevention ("Never rely on 'maybe' or 'should'").
To eliminate safety incidents and prevent worker
accidents, we regularly use modern technology toreview past accidents, determine whether current
countermeasures are effective and consider
whether technology is available to provide evenbetter recurrence prevention.

Industrial Waste•Final landfill 1,522 tons
•Recycled
6,647 tons
Water discharges•Total water3
amount 17,819, 000 m
194 tons•COD
146 tons•Total nitrogen•Total phosphorus 3 tons

Inspection tour by the President

24

Accreditation of all offices as certified safety
inspectors
Following on from having the personnel responsible
for safety inspections at our Mizushima andTokuyama Plants accredited as certified safety
inspectors in the 2006 financial year, theaccreditations for the safety inspectors were renewed
and certification was obtained for the personnel
responsible for completion inspections at the
Kawasaki Plant in the 2007 financial year. As a result,
all sites now have safety inspectors who are certified
under the new law.

Plant Safety Evaluation
When we commission a new plant or an upgrade toan existing plant, we evaluate the plant's safety in fivestages from the basic design through to the start ofproduction. This involves setting up detailed checklists for safety evaluation with the aim of creating amore reliable and safe plant. We performed 54 suchchecks in 2006 and 75 in 2007.

All ZEON Safety Conference
April of each year is ZEON Safety Month during
which we increase our emphasis on safety activities.
Risk prediction is a major focus with extra effort put
into 4R-KF, while enthusiasm for safety activities isboosted by distributing safety relay essays about risk
prediction to all employees.
The All ZEON Safety Conference is also held during
this period. This successful event was attended byabout 160 people including the President.
This year's conference included a lecture from aninvited speaker entitled "safety is determined by how
top management behave" that covered the preventionof human error, accidents, and other incidents. Other
presentations described casestudies of practical 4R-KY work,
foolproofing work, and measuresfor preventing accidents and work
injuries.
The conference recognized thepeople working on ongoing safety
activities and the President
distributed commendations andprizes to each participant to help
foster a culture of safety awareness.

All ZEON Safety Conference25

Site Reports

OUTPUT

The President takes the lead inpromoting safety management

4. Review of standards ("Always follow the rules.
Change any rules that cannot be followed")
We constantly try to improve our standards bymaking them easier to observe and easier tounderstand. We work systematically to eliminate
unnecessary standards, simplify the contents ofothers, and make full use of pictures and diagrams
to make the standards easier to use.

Performance4

75 investigations performed

There is an active program of management visits toeach plant to provide the opportunity for dialogue
between the management and plants. This includes
direct interaction with the plant staff who work at thefront line to allow frank discussion about how best to
make the plants even safer and more reliable thanthey currently are, with "good judgments savemoney" being the key principle. The President
actively promotes these dialogues and he made 56
plant visits in 2005, 43 in 2006 and 46 in 2007.

Management

environ3 Reduce
mental burdens

2007 Plan(1) Full implementation of plant safety evaluations

Self
evaluation

Message2

Eliminateenvironment andsafety abnormalities

2007 Results

Environment and Safety Activity Performance

Performance
CSR Report

Safety and Accident Prevention

Achievements

A manufacturer's starting point is the plant. Our management and plants work together every day
to achieve their shared mission of "emphasizing safety, the environment and quality, andensuring a 100% accident-free and incident-free workplace".

Dialogue Between Management and Plants

Overview of 2007 Plan and Results
Item1

Promoteoccupational
health and safety(2) Enhance the 5S safety program and expand toaffiliates

The same 5S safety audit was performed companywide at
45 workplaces (once a year). 5S safety audits were also
performed at affiliated group companies.

(3) Training to raise awareness of accident prevention

Implemented at all four plants (also implemented at head
office and one affiliated company)(4) Zero environment incidents, zero safety incidents

One environment incident, one safety incident(1) Fully establish the “Occupational Health and Safety
Management System” and use risk assessment toeliminate dangers

Risk assessment for operations at each workplace
implemented annually 6.3 times/workplace(2) Zero lost-time accidents, zero serious non-lost-time
accidents

One lost-time accident, no serious non-lost-time accidents(1) Implement a voluntary management plan for airpolluting toxic substances
Reduce the butadiene air discharge from the 2006
level of 25.1t to 8.2t

Butadiene: 21.6t (14% reduction from previous year)

Reduce the acrylonitrile air discharge from the 2005
level of 24.7t to 18t

Acrylonitrile: 20.7t (16% reduction from previous year)(2) Implement a zero emissions plan for industrial waste
Reduce the volume of waste sent to landfill from the2006 level of 1,200t to 1,020t

Final landfill amount: 1522t (322t increase from previous
year)(3) Strengthen the company-wide energy conservation
project
Reduce unit energy consumption to 90.6% of the1990 level

Unit energy consumption reduced to 94.9% of the 1990
level

Collect information on energy used in distribution

Reported in fiscal 2007

(1) Implement product safety reviews for new products
and new applications

3 reviews performed(2) Provide customers with environmental and safety

Issued MSDS for all products and implemented corrections(implementation rate: 100%)

Promote chemical
information (MSDS)
safety and product(3) Report new substances (laws related to chemicalsafetysubstance investigation and production regulations,Occupational Health and Safety Law)

5

Promotedistribution safety

Performed correctly(4) Zero law violations

No law violations(1) Full operation of the yellow card

Training performed through the logistics council(2) Reduce burden on the environment

Simplifications to packaging and containers and improved
liquid product transport efficiencies are currently being
implemented(3) Zero logistics accident

No logistics accidents

Overview of Environmental Burdens
INPUT
Amount handled
Energy(Substances
308,000 kl
subject to(of crude oil
the PRTR law)equivalent)
781,000 tons
Water resources
19,680,000 m3

Takaoka Plant
Mizushima Plant
Tokuyama Plant

R&D Center
Kawasaki Plant

Atmospheric discharges•Substances subject to
the PRTR law 58 tons
204,000 tons-c•CO2
701 tons•SOx
Products
416 tons•NOx
1,113,000 tons

Recognizing that safety takes priority over all othermanagement issues, the president is at the forefrontof efforts to establish the best possible safety
management system across the whole company.
1. Introduction of an equipment information
management system to prevent omissions("Never rely on 'maybe' or 'should'").
We are making effective use of the reporting,inspection planning, inspection records andinspection omission detection functions of the new
system that was introduced in 2004. Upgrades arealso being made to the system for storing drawings.
2. Plant deterioration countermeasures andfoolproofing measures ("Good judgments savemoney")The essential elements for a safe and stableworkplace are people, equipment and money.
We formulate systematic countermeasures on ascientific basis, such as estimating the remaining
life of equipment. We are advancing fool-proofing
to prevent accidents by involving all employees inbrainstorming.
3. Review of past accidents and recurrence prevention ("Never rely on 'maybe' or 'should'").
To eliminate safety incidents and prevent worker
accidents, we regularly use modern technology toreview past accidents, determine whether current
countermeasures are effective and consider
whether technology is available to provide evenbetter recurrence prevention.

Industrial Waste•Final landfill 1,522 tons
•Recycled
6,647 tons
Water discharges•Total water3
amount 17,819, 000 m
194 tons•COD
146 tons•Total nitrogen•Total phosphorus 3 tons

Inspection tour by the President

24

Accreditation of all offices as certified safety
inspectors
Following on from having the personnel responsible
for safety inspections at our Mizushima andTokuyama Plants accredited as certified safety
inspectors in the 2006 financial year, theaccreditations for the safety inspectors were renewed
and certification was obtained for the personnel
responsible for completion inspections at the
Kawasaki Plant in the 2007 financial year. As a result,
all sites now have safety inspectors who are certified
under the new law.

Plant Safety Evaluation
When we commission a new plant or an upgrade toan existing plant, we evaluate the plant's safety in fivestages from the basic design through to the start ofproduction. This involves setting up detailed checklists for safety evaluation with the aim of creating amore reliable and safe plant. We performed 54 suchchecks in 2006 and 75 in 2007.

All ZEON Safety Conference
April of each year is ZEON Safety Month during
which we increase our emphasis on safety activities.
Risk prediction is a major focus with extra effort put
into 4R-KF, while enthusiasm for safety activities isboosted by distributing safety relay essays about risk
prediction to all employees.
The All ZEON Safety Conference is also held during
this period. This successful event was attended byabout 160 people including the President.
This year's conference included a lecture from aninvited speaker entitled "safety is determined by how
top management behave" that covered the preventionof human error, accidents, and other incidents. Other
presentations described casestudies of practical 4R-KY work,
foolproofing work, and measuresfor preventing accidents and work
injuries.
The conference recognized thepeople working on ongoing safety
activities and the President
distributed commendations andprizes to each participant to help
foster a culture of safety awareness.

All ZEON Safety Conference25

Site Reports

OUTPUT

The President takes the lead inpromoting safety management

4. Review of standards ("Always follow the rules.
Change any rules that cannot be followed")
We constantly try to improve our standards bymaking them easier to observe and easier tounderstand. We work systematically to eliminate
unnecessary standards, simplify the contents ofothers, and make full use of pictures and diagrams
to make the standards easier to use.

Performance4

75 investigations performed

There is an active program of management visits toeach plant to provide the opportunity for dialogue
between the management and plants. This includes
direct interaction with the plant staff who work at thefront line to allow frank discussion about how best to
make the plants even safer and more reliable thanthey currently are, with "good judgments savemoney" being the key principle. The President
actively promotes these dialogues and he made 56
plant visits in 2005, 43 in 2006 and 46 in 2007.

Management

environ3 Reduce
mental burdens

2007 Plan(1) Full implementation of plant safety evaluations

Self
evaluation

Message2

Eliminateenvironment andsafety abnormalities

2007 Results

Environment and Safety Activity Performance

Performance
CSR Report

Occupational Health and Safety
Industrial Health and Safety Initiatives

each-other activities. Other initiatives are
identifying near-miss incidents, hands-on
learning, supervisor training for production
managers, foremen and others, and runningsafety training at affiliated companies.
Other measures aimed at promoting the physicaland mental well-being of employees include
physical exercises and mental health education.

ZEON undertakes measures to prevent
workplace accidents for the sake of employee
health.
In striving to achieve a stable and safe
production system that increases "workplacestrength", ZEON puts considerable effort into 5S
safety audits, risk assessments and caring-for2.5

Trend in lost-time accidents rates

Bad

Manufacturing industry(Ministry of Health, Labour and Welfare figures)

1.5
Chemical industry (Ministry of Health,Labour and Welfare figures)

1
0.5

Good

ZEON CORPORATION
0
90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

Based on ZEON's safety philosophy that "safety will
be achieved by following our 5S program and when
everyone takes responsibility for their own actions",
5S safety audits are carried out annually at eachcompany site and affiliated company.
Five company sites and fourteen sites from amongst
eleven affiliates were visited in 2007. These audits not
only identify things that are wrong, they alsoemphasize positive points that could serve as a modelfor others. A supreme award and commendation
awards are given out on a departmental basis at the
All ZEON Safety Conference to recognize these.

To prevent workplace accidents and deal with thepotential for human error, ZEON has adopted the "4RKY" ("four-round kiken yochi (risk assessment)")
practice whereby employees check for any unsafe
situations before starting a task to avoid placing
themselves in danger. Based on the size of each
workplace, workers who had received external
training to learn the correct methods were deployed
as "KY trainers" during 2007 to promote the KY
program in their own workplaces.

Formalized Hands-on Training
Each workplace introduced hands-on training forworkplace accident prevention to better capture theattention of staff.
Hands-on training sessions demonstrating gettingcaught in a rolling mill were conducted across the
ZEON group.
Health and fitness session

Mental Health

Hands-on training at Optes Inc.

Site Reports

Risk assessment (Kawasaki Plant)

ZEON believes that taking active steps to maintainmental health is important and the company
conducts annual mental health training across theentire company. Fourteen such training sessions,which were entitled "Power Harassment and Mental
Health" and targeted at all employees, were held
during 2007 and were attended by about 1,100
employees.
To boost "care by industrial health staff in theworkplace", temporary mental health personnel were
deployed to provide counseling and training toemployees in accordance with the circumstances ineach workplace.

Hands-on training session demonstrating
getting caught in a rolling mill

5S safety audit (Takaoka Plant)

Mental health training

26

Performance

KY ("Kiken Yochi") Risk Assessment

Everyone wants to work in a comfortable and healthy
environment. With the aging population, the numberof people suffering from lifestyle-related diseases orconditions identified in health checks is increasing. In
addition to obligatory regular health checks andspecial health checks, medical checks include
diagnostic checks to prevent metabolic syndrome(visceral adiposity), checking for colon cancer,
funduscopy, gastric examination, gynecologicalexamination, tumor markers and family healthcheckups. In addition to this, measures such as
nutritional advice, health seminars and health work
are provided for health and fitness.

Management

Safety 5S Diagunosis

With the aim of reducing unsafe activities in
employees' daily work, ZEON has put in place acompany-wide program of "caring for each other"that seeks to build relationships between people andcreate a culture that encourages not only supervisors
and other staff working in the same workplace, butalso staff from affiliated companies to point out any
unsafe activities.
Three "Special Action Months" were held during 2007
during which the "warning frequencies" at each
workplace were collated and published as a way ofengaging people's competitive spirits to promoteaction. During the 2007 financial year, more than
30,000 warnings were counted across all groupcompanies in just these three special action months.

Health Management

MessageFrequency of lost-time
accidents

2

Expanding Caring-for-each-other
Activities

27

Environment and Safety Activity Performance

Performance
CSR Report

Occupational Health and Safety
Industrial Health and Safety Initiatives

each-other activities. Other initiatives are
identifying near-miss incidents, hands-on
learning, supervisor training for production
managers, foremen and others, and runningsafety training at affiliated companies.
Other measures aimed at promoting the physicaland mental well-being of employees include
physical exercises and mental health education.

ZEON undertakes measures to prevent
workplace accidents for the sake of employee
health.
In striving to achieve a stable and safe
production system that increases "workplacestrength", ZEON puts considerable effort into 5S
safety audits, risk assessments and caring-for2.5

Trend in lost-time accidents rates

Bad

Manufacturing industry(Ministry of Health, Labour and Welfare figures)

1.5
Chemical industry (Ministry of Health,Labour and Welfare figures)

1
0.5

Good

ZEON CORPORATION
0
90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

Based on ZEON's safety philosophy that "safety will
be achieved by following our 5S program and when
everyone takes responsibility for their own actions",
5S safety audits are carried out annually at eachcompany site and affiliated company.
Five company sites and fourteen sites from amongst
eleven affiliates were visited in 2007. These audits not
only identify things that are wrong, they alsoemphasize positive points that could serve as a modelfor others. A supreme award and commendation
awards are given out on a departmental basis at the
All ZEON Safety Conference to recognize these.

To prevent workplace accidents and deal with thepotential for human error, ZEON has adopted the "4RKY" ("four-round kiken yochi (risk assessment)")
practice whereby employees check for any unsafe
situations before starting a task to avoid placing
themselves in danger. Based on the size of each
workplace, workers who had received external
training to learn the correct methods were deployed
as "KY trainers" during 2007 to promote the KY
program in their own workplaces.

Formalized Hands-on Training
Each workplace introduced hands-on training forworkplace accident prevention to better capture theattention of staff.
Hands-on training sessions demonstrating gettingcaught in a rolling mill were conducted across the
ZEON group.
Health and fitness session

Mental Health

Hands-on training at Optes Inc.

Site Reports

Risk assessment (Kawasaki Plant)

ZEON believes that taking active steps to maintainmental health is important and the company
conducts annual mental health training across theentire company. Fourteen such training sessions,which were entitled "Power Harassment and Mental
Health" and targeted at all employees, were held
during 2007 and were attended by about 1,100
employees.
To boost "care by industrial health staff in theworkplace", temporary mental health personnel were
deployed to provide counseling and training toemployees in accordance with the circumstances ineach workplace.

Hands-on training session demonstrating
getting caught in a rolling mill

5S safety audit (Takaoka Plant)

Mental health training

26

Performance

KY ("Kiken Yochi") Risk Assessment

Everyone wants to work in a comfortable and healthy
environment. With the aging population, the numberof people suffering from lifestyle-related diseases orconditions identified in health checks is increasing. In
addition to obligatory regular health checks andspecial health checks, medical checks include
diagnostic checks to prevent metabolic syndrome(visceral adiposity), checking for colon cancer,
funduscopy, gastric examination, gynecologicalexamination, tumor markers and family healthcheckups. In addition to this, measures such as
nutritional advice, health seminars and health work
are provided for health and fitness.

Management

Safety 5S Diagunosis

With the aim of reducing unsafe activities in
employees' daily work, ZEON has put in place acompany-wide program of "caring for each other"that seeks to build relationships between people andcreate a culture that encourages not only supervisors
and other staff working in the same workplace, butalso staff from affiliated companies to point out any
unsafe activities.
Three "Special Action Months" were held during 2007
during which the "warning frequencies" at each
workplace were collated and published as a way ofengaging people's competitive spirits to promoteaction. During the 2007 financial year, more than
30,000 warnings were counted across all groupcompanies in just these three special action months.

Health Management

MessageFrequency of lost-time
accidents

2

Expanding Caring-for-each-other
Activities

27

Environment and Safety Activity Performance

Performance
CSR Report

Hazardous Chemical
Substance and Industrial Waste

PRTR Activity

Reduction of Hazardous Chemical Substance
Emissions into the Atmosphere

The entire company is making an effort to reduce discharges and transfer of substances subject
to PRTR.

We are working actively to reduce emissions, particularly of butadiene and acrylonitrile.
The PRTR (Pollutant Release andTransfer Register) law applies to 40
substances used at ZEON.
Total discharges reduced from 67.8
tons in 2006 to 57.6 tons in 2007.
ZEON is working vigorously to
reduce discharges.

Amount of Discharge and Transfer of PRTR Subject Substances (2007)
Amount ofDischarge
andTransfer
volume(663.3 tons)

Totalamount ofDischarges(57.6 tons)

Amount of Emission into the Atmosphere (56.6 tons)

Total
Transfers(605.7 tons)

Amount of Transfer (605.7 tons)

Amount of Discharges into Water (1.0 ton)Amount of Discharges into Soil (zero)

Landfill (zero)

Substance name

120
100

400
300
200

Amount of acrylonitrile emissions
into atomosphere

Tons

401.9

100
24.7 20.7

0
95

96

97

98

99

00

01

02

03

04

05

06

80
60

107.3

40
20
25.1 20.7
0
95

07

96

97

98

99

00

01

02

03

04

05

06

07

Reduction of Industrial Waste
We are tackling the issue of waste products produced
during manufacturing on a topic-by-topic basis andachieving steady reductions.
The total volume of industrial waste disposed ofexternally in landfills was 322 tons higher than in theprevious year.
In particular, a temporary increase in the volume ofextracted sludge occurred with the shift to using asingle activated sludge tank when PVC production
was shutdown at the Takaoka Plant.
Volumes at the Kawasaki Plant also increased due toproblems with the combustion furnace. At theMizushima Plant, we have made reductions throughthe reuse of combination combustion furnace
residue.
The medium-term target for the amount of industrial
waste that is ultimately disposed of in landfills
defines an amount 10% or less of the actual disposal
volume in 1995 as representing zero emissions. Workis underway in this area and the goal is expected tobe achieved by the year 2010.
Currently, ongoing investigations into the utilizationand incineration of sludge are in progress. ZEON is
also working actively to improve sorting in order toencourage recycling and other ways of making
effective use of industrial waste.

Amount of final landfill of waste

Tons

12,00010,000
8,000
6,000
4,000
9,620
2,000

1,522

0
95

96

97

98

99

00

01

02

03

04

05

06

07

29

Site Reports

28

Amount of butadiene emissions
into atomosphere

Tons

Performance

Note: The PRTR Law specifies the amount in units of "kg" with fractions to 2 significant digits, but the table above shows values in units of tons.

500

Management*Units of dioxins are mg-TEQ **Benzene is contained as impurities in raw materials

Transfer
Volume(tons)
0.0
0.0
0.0
0.0
139.2
0.0
0.9
0.0
1.0
0.0
0.0
0.0
0.0
0.0
0.0
5.4
0.0
0.0
0.0
0.6
52.9
0.1
253.6
148.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
3.5
0.0
605.7

Emissions to the Atmosphere

Acrylamide
Acrylic acid
Ethyl acrylate
Methyl acrylate
Acrylonitrile
Acryl alcohol
1-allyloxy-2, 3-epoxy propane
linear alkylbenzenesulfonate and salt thereof
Isoprene
Bisphenol Atype epoxy resin
Ethylene oxide
Ethylene diamine
Ethylenediamine tetraacetic acid
Epichlorohydrin
Propylene oxide
XyleneVinyl chloride
Vinyl acetate
Diphenylamine
N, N-dimethylformamide
StyreneDioxins*
Tetrahydromethyl phthalic anhydrideTolueneNickelNickel compound
2-vinylpyridine
Phenol
1, 3-butadiene
Bis phthalate (2-ethylhexyl)
Benzene**Poly(oxyethylene) alkylether
Poly(oxyethylene) nonylphenyl ether
Formaldehyde
Maleic anhydride
Methacrylic acid
Methacrylic acid 2,3-epoxy propyl
Methacrylic acid (n-butyl)
Methyl methacrylate
Methacrylonitrile
Total

Discharges to
Total
Amount Used Atmosphere Discharges to
Water
Discharges(tons)(tons)(tons)(tons)
0.1
0.0
59.9
0.1
0.0
0.0
96.9
0.0
2.5
0.0
2,047.0
2.5
0.3
0.0
65.4
0.3
20.7
0.0
26,506.9
20.7
0.0
0.0
22.4
0.0
2.0
0.0
229.9
1.9
0.0
0.0
1,111.3
0.0
0.8
0.1
143,943.2
0.7
0.0
0.0
15.9
0.0
0.0
0.0
1,104.2
0.0
0.0
0.0
2.3
0.0
0.0
0.0
65.7
0.0
0.0
0.0
968.4
0.0
0.0
0.0
10.5
0.0
0.1
0.0
393.8
0.1
1.3
0.0
759.0
1.3
0.2
0.1
287.7
0.1
0.0
0.0
6.1
0.0
0.0
0.0
386.9
0.0
1.7
0.0
47,152.6
1.7
0.1
0.0
0.3
0.1
0.0
0.0
2,535.5
0.0
0.9
0.0
4,873.7
0.9
0.1
0.0
48.5
0.1
0.0
0.0
66.7
0.0
0.4
0.0
208.7
0.4
0.0
0.0
128.3
0.0
21.6
0.0
539,086.8
21.6
0.0
0.0
293.1
0.0
0.0
0.0
3,434.7
0.0
0.0
0.0
4.2
0.0
0.0
0.0
89.4
0.0
0.0
0.0
3.0
0.0
1.3
0.7
1,723.4
0.7
0.0
0.0
2,020.2
0.0
0.0
0.0
6.7
0.0
0.0
0.0
4.1
0.0
3.6
0.0
996.8
3.6
0.0
0.0
3.3
0.0
57.6
1.0
780,762.9
56.6

Emissions to the Atmosphere

Government
adherence control
number
2
3
4
6
7
22
23
24
28
30
42
46
47
54
56
63
77
102
159
172
177
179
202
227
231
232
256
266
268
272
299
307
309
310
313
314
316
319
320
321

waste gas combustion equipment at the Kawasaki
Plant have reduced emissions by four tons.
Further, the company plans to reduce emissions fromits monomer recovery process at the Tokuyama Plant
during the 2008 financial year.
We reduced acrylonitrile emissions by 4.4 tons in 2007
compared to the previous year through measures
such as operating a monomer recovery system.
Further reductions are anticipated due to improvements to the recovery process and changes to the
product range.

Message

Discharge and transfer data for substances restricted by law

Efforts are being made headed by the Chemical
Industry Association of Japan to understand andreduce the level of emissions into the atmosphere of
the twelve substances with the highest priority.
Meanwhile ZEON is working actively to reduce
emissions of the three substances on this list that areused at the company.
Thanks to process improvements and technologicaldevelopments over many years, ZEON completely
eliminated the use of benzene in 2000 and consequently has achieved zero atmospheric emissions.
For butadiene, improvements in the utilization of theEnvironment and Safety Activity Performance

Performance
CSR Report

Hazardous Chemical
Substance and Industrial Waste

PRTR Activity

Reduction of Hazardous Chemical Substance
Emissions into the Atmosphere

The entire company is making an effort to reduce discharges and transfer of substances subject
to PRTR.

We are working actively to reduce emissions, particularly of butadiene and acrylonitrile.
The PRTR (Pollutant Release andTransfer Register) law applies to 40
substances used at ZEON.
Total discharges reduced from 67.8
tons in 2006 to 57.6 tons in 2007.
ZEON is working vigorously to
reduce discharges.

Amount of Discharge and Transfer of PRTR Subject Substances (2007)
Amount ofDischarge
andTransfer
volume(663.3 tons)

Totalamount ofDischarges(57.6 tons)

Amount of Emission into the Atmosphere (56.6 tons)

Total
Transfers(605.7 tons)

Amount of Transfer (605.7 tons)

Amount of Discharges into Water (1.0 ton)Amount of Discharges into Soil (zero)

Landfill (zero)

Substance name

120
100

400
300
200

Amount of acrylonitrile emissions
into atomosphere

Tons

401.9

100
24.7 20.7

0
95

96

97

98

99

00

01

02

03

04

05

06

80
60

107.3

40
20
25.1 20.7
0
95

07

96

97

98

99

00

01

02

03

04

05

06

07

Reduction of Industrial Waste
We are tackling the issue of waste products produced
during manufacturing on a topic-by-topic basis andachieving steady reductions.
The total volume of industrial waste disposed ofexternally in landfills was 322 tons higher than in theprevious year.
In particular, a temporary increase in the volume ofextracted sludge occurred with the shift to using asingle activated sludge tank when PVC production
was shutdown at the Takaoka Plant.
Volumes at the Kawasaki Plant also increased due toproblems with the combustion furnace. At theMizushima Plant, we have made reductions throughthe reuse of combination combustion furnace
residue.
The medium-term target for the amount of industrial
waste that is ultimately disposed of in landfills
defines an amount 10% or less of the actual disposal
volume in 1995 as representing zero emissions. Workis underway in this area and the goal is expected tobe achieved by the year 2010.
Currently, ongoing investigations into the utilizationand incineration of sludge are in progress. ZEON is
also working actively to improve sorting in order toencourage recycling and other ways of making
effective use of industrial waste.

Amount of final landfill of waste

Tons

12,00010,000
8,000
6,000
4,000
9,620
2,000

1,522

0
95

96

97

98

99

00

01

02

03

04

05

06

07

29

Site Reports

28

Amount of butadiene emissions
into atomosphere

Tons

Performance

Note: The PRTR Law specifies the amount in units of "kg" with fractions to 2 significant digits, but the table above shows values in units of tons.

500

Management*Units of dioxins are mg-TEQ **Benzene is contained as impurities in raw materials

Transfer
Volume(tons)
0.0
0.0
0.0
0.0
139.2
0.0
0.9
0.0
1.0
0.0
0.0
0.0
0.0
0.0
0.0
5.4
0.0
0.0
0.0
0.6
52.9
0.1
253.6
148.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
3.5
0.0
605.7

Emissions to the Atmosphere

Acrylamide
Acrylic acid
Ethyl acrylate
Methyl acrylate
Acrylonitrile
Acryl alcohol
1-allyloxy-2, 3-epoxy propane
linear alkylbenzenesulfonate and salt thereof
Isoprene
Bisphenol Atype epoxy resin
Ethylene oxide
Ethylene diamine
Ethylenediamine tetraacetic acid
Epichlorohydrin
Propylene oxide
XyleneVinyl chloride
Vinyl acetate
Diphenylamine
N, N-dimethylformamide
StyreneDioxins*
Tetrahydromethyl phthalic anhydrideTolueneNickelNickel compound
2-vinylpyridine
Phenol
1, 3-butadiene
Bis phthalate (2-ethylhexyl)
Benzene**Poly(oxyethylene) alkylether
Poly(oxyethylene) nonylphenyl ether
Formaldehyde
Maleic anhydride
Methacrylic acid
Methacrylic acid 2,3-epoxy propyl
Methacrylic acid (n-butyl)
Methyl methacrylate
Methacrylonitrile
Total

Discharges to
Total
Amount Used Atmosphere Discharges to
Water
Discharges(tons)(tons)(tons)(tons)
0.1
0.0
59.9
0.1
0.0
0.0
96.9
0.0
2.5
0.0
2,047.0
2.5
0.3
0.0
65.4
0.3
20.7
0.0
26,506.9
20.7
0.0
0.0
22.4
0.0
2.0
0.0
229.9
1.9
0.0
0.0
1,111.3
0.0
0.8
0.1
143,943.2
0.7
0.0
0.0
15.9
0.0
0.0
0.0
1,104.2
0.0
0.0
0.0
2.3
0.0
0.0
0.0
65.7
0.0
0.0
0.0
968.4
0.0
0.0
0.0
10.5
0.0
0.1
0.0
393.8
0.1
1.3
0.0
759.0
1.3
0.2
0.1
287.7
0.1
0.0
0.0
6.1
0.0
0.0
0.0
386.9
0.0
1.7
0.0
47,152.6
1.7
0.1
0.0
0.3
0.1
0.0
0.0
2,535.5
0.0
0.9
0.0
4,873.7
0.9
0.1
0.0
48.5
0.1
0.0
0.0
66.7
0.0
0.4
0.0
208.7
0.4
0.0
0.0
128.3
0.0
21.6
0.0
539,086.8
21.6
0.0
0.0
293.1
0.0
0.0
0.0
3,434.7
0.0
0.0
0.0
4.2
0.0
0.0
0.0
89.4
0.0
0.0
0.0
3.0
0.0
1.3
0.7
1,723.4
0.7
0.0
0.0
2,020.2
0.0
0.0
0.0
6.7
0.0
0.0
0.0
4.1
0.0
3.6
0.0
996.8
3.6
0.0
0.0
3.3
0.0
57.6
1.0
780,762.9
56.6

Emissions to the Atmosphere

Government
adherence control
number
2
3
4
6
7
22
23
24
28
30
42
46
47
54
56
63
77
102
159
172
177
179
202
227
231
232
256
266
268
272
299
307
309
310
313
314
316
319
320
321

waste gas combustion equipment at the Kawasaki
Plant have reduced emissions by four tons.
Further, the company plans to reduce emissions fromits monomer recovery process at the Tokuyama Plant
during the 2008 financial year.
We reduced acrylonitrile emissions by 4.4 tons in 2007
compared to the previous year through measures
such as operating a monomer recovery system.
Further reductions are anticipated due to improvements to the recovery process and changes to the
product range.

Message

Discharge and transfer data for substances restricted by law

Efforts are being made headed by the Chemical
Industry Association of Japan to understand andreduce the level of emissions into the atmosphere of
the twelve substances with the highest priority.
Meanwhile ZEON is working actively to reduce
emissions of the three substances on this list that areused at the company.
Thanks to process improvements and technologicaldevelopments over many years, ZEON completely
eliminated the use of benzene in 2000 and consequently has achieved zero atmospheric emissions.
For butadiene, improvements in the utilization of theEnvironment and Safety Activity Performance

CSR Report

Air and Water Quality

Resource and Energy Saving

We are continuing our company-wide efforts to reduce the burden on the environment, and when
installing a new plant or expanding a plant, we try our best to prevent any increase in this burden
through technological improvements. We will continue to make additional efforts in the future.

In order to achieve the goal of "reducing the average energy consumption rate for the 2008 to2012 period to 87% of the 1990 level" set by the Japan Chemical Industry Association, we haveheld energy conservation promotion meetings throughout the company and have actions inprogress.

600
400

0
98

99

00

01

02

03

04

05

06

96

97

98

99

00

01

02

03

04

05

06

07

350

10
5

0

80
02

03

04

05

06

07

100
50
0
90

02

03

04

05

06

07

Energy Consumption Associatedwith Transportation

300
250
200

and is subject to additional requirements.
On the basis of its total freight shipping volumes(including the four production plants and the R&D
Center), ZEON is a designated major consigner andthe company submitted its regular declaration to the
Ministry of Economy, Trade and Industry on June 30,
2008.
We will continue in the future to do our very best toconserve energy in distribution as well as inproduction processes.

150
100
50
0

0
95

8

96

97

98

99

00

01

02

03

04

05

06

95

07

Amount of total phosphorus
discharge

Tons

96

97

98

99

00

01

02

03

04

05

06

07

Amount of total nitrogen
discharge

Tons

250
200
Amount of Emissions

Amount of Emissions

5
4
3
2

150
100
50

1
0

0
95

30

96

97

98

99

00

01

02

03

04

05

06

07

95

96

97

98

99

00

01

02

03

04

Energy conservation plan for theMizushima industrial complex
At the Mizushima industrial complex precinct, Asahi
Kasei Chemicals, ZEON and Nippon Petroleum
Refining (the refining arm of ENEOS) have started
work on a joint program to save energy by recycling
petroleum residue.
The project has been adopted to as part of the
NEDO Energy Conservation Project Support
Scheme. Nippon Petroleum Refining will build a
new solvent de-asphalting line at the Mizushima
Refinery for extracting kerosene and light oil fromasphalt and other heavy oil distillates. The
petroleum residue (or pitch) generated by the7
6

Energy conservation topics

05

06

07

extraction process will be
used as fuel for new boilers
to be built by Asahi Kasei
Chemicals and ZEON. This
will save energy by reducing
use of the light oil and otherfuels used in the past.
It is estimated that this will
deliver significant energy
savings across the entire
industrial complex (equivalent to approximately 98,000
kl of crude oil) and commercial operation is due tocommence in July 2009.

Energy conservation plan for
the Mizushima industrial
complex31

Site Reports

Amount of Emissions

Amount of Emissions

15

85

Under amendments to the Energy Conservation Law,
responsibility for development and implementationof energy-saving strategies rests with the party
responsible for requesting transportation of thegoods (the consignor or owner of the goods).
A company with an annual freight volume of 30
million ton-kilometers or more is defined as adesignated major consignor under the amended law

Amount of COD discharge

Tons

400

20

50

90

95

07

Amount of total waste water
discharge

million m3
25

90

100

200
100

97

150

150

300

0
96

95

400

200

95

100

200

200

Performance

Amount of Emissions

Amount of Emissions

800

500

105

250

Amount of CO2 emitted

1,000 Ton-C

250

Management

600

1,000

300

110

MessageAmount of NOx emission

Tons

700

Amount of energy consumed andconsumption rate index

1,000 kL

350

operation have been adopted, circumstances such as
the low utilization caused by halting PVC production
at the Takaoka Plant and shorter operating times due
to a long shutdown for periodic inspections at theMizushima Plant and problems with the monomer
recovery equipment have meant that these have notbeen reflected in improvements in the unit
consumption index.

Amount Emitted (carbon equivalent)

Amount of SOx emission

Tons

Although 2007 energy use measured in terms ofequivalent consumption of crude oil reduced slightly
to 98.8% of the previous year's level, the overall levelof production was down to 95.9% of the previous year
and therefore the unit consumption index (compared
to 1990 levels) went from 92.1% in 2006 to 94.9% in
2007.
Although energy saving measures such as high-rate

Unit consumption index (compared to 1990 levels)

reduce COD emissions, the levels remain roughly thesame as 2006 due to increased production of productranges that produce a heavy COD load.
Regarding total nitrogen levels in waste water, tocounter an increase in production at the Kawasaki
Plant of products such as NBR (acrylonitrile andbutadiene rubber) that are associated with highoutput of waste water by-products, new nitrogen
elimination equipment has been installed to increase
the removal of nitrogen from waste water. Although
we have succeeded in reducing the total volume of
nitrogen discharge across the entire company by 90
tons (or 62% compared to the previous year), we arecontinuing to work on improvements and better
management.

Consumption (crude oil equivalent)

Progress on reducing atmospheric pollution includes
improvements in SOx and NOx emissions. The
Tokuyama Plant has increased purchases ofexternally supplied steam and the resulting reduction
in boiler operating time has been beneficial inlowering emissions of SOx due to heavy oil andthermal NOx.
We have been working on measures such as
recirculation to reduce total waste water volumes
and a small decrease has occurred due to lower
production volumes.
Waste water quality continues to meet therequirements of the Clean Water Act and agreementswith local governments.
COD is a measure of organic compounds contained inwaste water and although we have been working to

1,200

Performance

Environment and Safety Activity Performance

CSR Report

Air and Water Quality

Resource and Energy Saving

We are continuing our company-wide efforts to reduce the burden on the environment, and when
installing a new plant or expanding a plant, we try our best to prevent any increase in this burden
through technological improvements. We will continue to make additional efforts in the future.

In order to achieve the goal of "reducing the average energy consumption rate for the 2008 to2012 period to 87% of the 1990 level" set by the Japan Chemical Industry Association, we haveheld energy conservation promotion meetings throughout the company and have actions inprogress.

600
400

0
98

99

00

01

02

03

04

05

06

96

97

98

99

00

01

02

03

04

05

06

07

350

10
5

0

80
02

03

04

05

06

07

100
50
0
90

02

03

04

05

06

07

Energy Consumption Associatedwith Transportation

300
250
200

and is subject to additional requirements.
On the basis of its total freight shipping volumes(including the four production plants and the R&D
Center), ZEON is a designated major consigner andthe company submitted its regular declaration to the
Ministry of Economy, Trade and Industry on June 30,
2008.
We will continue in the future to do our very best toconserve energy in distribution as well as inproduction processes.

150
100
50
0

0
95

8

96

97

98

99

00

01

02

03

04

05

06

95

07

Amount of total phosphorus
discharge

Tons

96

97

98

99

00

01

02

03

04

05

06

07

Amount of total nitrogen
discharge

Tons

250
200
Amount of Emissions

Amount of Emissions

5
4
3
2

150
100
50

1
0

0
95

30

96

97

98

99

00

01

02

03

04

05

06

07

95

96

97

98

99

00

01

02

03

04

Energy conservation plan for theMizushima industrial complex
At the Mizushima industrial complex precinct, Asahi
Kasei Chemicals, ZEON and Nippon Petroleum
Refining (the refining arm of ENEOS) have started
work on a joint program to save energy by recycling
petroleum residue.
The project has been adopted to as part of the
NEDO Energy Conservation Project Support
Scheme. Nippon Petroleum Refining will build a
new solvent de-asphalting line at the Mizushima
Refinery for extracting kerosene and light oil fromasphalt and other heavy oil distillates. The
petroleum residue (or pitch) generated by the7
6

Energy conservation topics

05

06

07

extraction process will be
used as fuel for new boilers
to be built by Asahi Kasei
Chemicals and ZEON. This
will save energy by reducing
use of the light oil and otherfuels used in the past.
It is estimated that this will
deliver significant energy
savings across the entire
industrial complex (equivalent to approximately 98,000
kl of crude oil) and commercial operation is due tocommence in July 2009.

Energy conservation plan for
the Mizushima industrial
complex31

Site Reports

Amount of Emissions

Amount of Emissions

15

85

Under amendments to the Energy Conservation Law,
responsibility for development and implementationof energy-saving strategies rests with the party
responsible for requesting transportation of thegoods (the consignor or owner of the goods).
A company with an annual freight volume of 30
million ton-kilometers or more is defined as adesignated major consignor under the amended law

Amount of COD discharge

Tons

400

20

50

90

95

07

Amount of total waste water
discharge

million m3
25

90

100

200
100

97

150

150

300

0
96

95

400

200

95

100

200

200

Performance

Amount of Emissions

Amount of Emissions

800

500

105

250

Amount of CO2 emitted

1,000 Ton-C

250

Management

600

1,000

300

110

MessageAmount of NOx emission

Tons

700

Amount of energy consumed andconsumption rate index

1,000 kL

350

operation have been adopted, circumstances such as
the low utilization caused by halting PVC production
at the Takaoka Plant and shorter operating times due
to a long shutdown for periodic inspections at theMizushima Plant and problems with the monomer
recovery equipment have meant that these have notbeen reflected in improvements in the unit
consumption index.

Amount Emitted (carbon equivalent)

Amount of SOx emission

Tons

Although 2007 energy use measured in terms ofequivalent consumption of crude oil reduced slightly
to 98.8% of the previous year's level, the overall levelof production was down to 95.9% of the previous year
and therefore the unit consumption index (compared
to 1990 levels) went from 92.1% in 2006 to 94.9% in
2007.
Although energy saving measures such as high-rate

Unit consumption index (compared to 1990 levels)

reduce COD emissions, the levels remain roughly thesame as 2006 due to increased production of productranges that produce a heavy COD load.
Regarding total nitrogen levels in waste water, tocounter an increase in production at the Kawasaki
Plant of products such as NBR (acrylonitrile andbutadiene rubber) that are associated with highoutput of waste water by-products, new nitrogen
elimination equipment has been installed to increase
the removal of nitrogen from waste water. Although
we have succeeded in reducing the total volume of
nitrogen discharge across the entire company by 90
tons (or 62% compared to the previous year), we arecontinuing to work on improvements and better
management.

Consumption (crude oil equivalent)

Progress on reducing atmospheric pollution includes
improvements in SOx and NOx emissions. The
Tokuyama Plant has increased purchases ofexternally supplied steam and the resulting reduction
in boiler operating time has been beneficial inlowering emissions of SOx due to heavy oil andthermal NOx.
We have been working on measures such as
recirculation to reduce total waste water volumes
and a small decrease has occurred due to lower
production volumes.
Waste water quality continues to meet therequirements of the Clean Water Act and agreementswith local governments.
COD is a measure of organic compounds contained inwaste water and although we have been working to

1,200

Performance

Environment and Safety Activity Performance

Performance
CSR Report

Environment and
Safety in Logistics

AuditsZEON works to ensure safety and reduce the burden placed on the environment by its
distribution and logistics activities.

We perform a variety of audits to check the implementation status of policies such as our
Responsible Care activities.

ZEON and Affiliate Audits
Responsible Care Audits
Every year, an audit team led by the director in
charge of CSR visits plants to perform a Responsible
Care audit.
The progress of improvements is checked in theaudit using the “Specified Improvement Plan and
Implementation Report”.

Yellow card

1. Use of metal containers to pack synthetic
rubber products
To help prevent deforestation, ZEON has switched to

Plant Technology Audits
A plant technology auditor is appointed to audit theplant equipment for safety and stability during
operation at the four plants and at ZEON Chemicals
Yonezawa Co., Ltd. at least once a year.

using metal box pallets to pack synthetic rubber. The
switch is already complete for export products, andthe program to phase-out wooden boxes in domestic
distribution commenced in 2005 with the proportionof metal packaging exceeding 80% in 2007.

Affiliate safety inspection

PL Audits
An audit team led by the head of Quality Assurance
Department performs an annual audit focusing on PL(product liability) and chemical safety at theoperational departments and affiliate companies.
Plant Responsible Care audit

companies to improve loading ratios and fuelconsumption, and modal shifts to railway and marinetransport. Following on from the Tokuyama Plant, theMizushima Plant also received a modal shiftcommendation from the Central Japan Transportation Bureau in 2007.

Site Reports

2. Amendments to the Energy Conservation Law
As a designated major consignor, ZEON is committed
to efficiency improvements designed to minimize
energy consumption.
ZEON has investigated and introduced a variety ofstrategies in this area, including working with other

Audit team on site

Internal Plant Audits
Diagnosis by the Plant Manager
All the plant managers review the implementation
status of Responsible Care measures at their own
plant at least once a year.
2007 Modal Shift Award

32

Performance

Domestic metal box pallet

Domestic wooden box pallet

Other Audits and Inspections
The head of the Safety Environmental Affairs
Department performs special audits as required. A
special audit by the head of the Safety Environmental
Affairs Department is carried out if he deems it
necessary when a serious accident, serious security
breach, or serious environmental incident occurs.
The audit performs an on-site investigation of thecauses and makes any necessary improvement
recommendations.

Management

Environmental Countermesure for
Logistics

Affiliate Safety Inspections
A team led by the head of the Safety Environmental
Affairs Department performs a review and offers
guidance on the implementation status of
Responsible Care activities at affiliates at least once a
year.

Message

Logistics Safety
ZEON has instituted the “Yellow Card Management
Rules” for transport of toxic or dangerous products.
These rules require drivers to carry a yellow card
when such products are being shipped. Drivers arealso given training on the reporting procedures.
Training on how to handle products correctly is also
performed at each plant to help prevent logistics
accidents.

Internal EMS Audits
A regular audit is performed to check the EMS(Environment Management System) implementation
status based on the ISO14001 manual. Both internaland external courses are provided at each plant totrain employees to be internal auditors.

33

Environment and Safety Activity Performance

Performance
CSR Report

Environment and
Safety in Logistics

AuditsZEON works to ensure safety and reduce the burden placed on the environment by its
distribution and logistics activities.

We perform a variety of audits to check the implementation status of policies such as our
Responsible Care activities.

ZEON and Affiliate Audits
Responsible Care Audits
Every year, an audit team led by the director in
charge of CSR visits plants to perform a Responsible
Care audit.
The progress of improvements is checked in theaudit using the “Specified Improvement Plan and
Implementation Report”.

Yellow card

1. Use of metal containers to pack synthetic
rubber products
To help prevent deforestation, ZEON has switched to

Plant Technology Audits
A plant technology auditor is appointed to audit theplant equipment for safety and stability during
operation at the four plants and at ZEON Chemicals
Yonezawa Co., Ltd. at least once a year.

using metal box pallets to pack synthetic rubber. The
switch is already complete for export products, andthe program to phase-out wooden boxes in domestic
distribution commenced in 2005 with the proportionof metal packaging exceeding 80% in 2007.

Affiliate safety inspection

PL Audits
An audit team led by the head of Quality Assurance
Department performs an annual audit focusing on PL(product liability) and chemical safety at theoperational departments and affiliate companies.
Plant Responsible Care audit

companies to improve loading ratios and fuelconsumption, and modal shifts to railway and marinetransport. Following on from the Tokuyama Plant, theMizushima Plant also received a modal shiftcommendation from the Central Japan Transportation Bureau in 2007.

Site Reports

2. Amendments to the Energy Conservation Law
As a designated major consignor, ZEON is committed
to efficiency improvements designed to minimize
energy consumption.
ZEON has investigated and introduced a variety ofstrategies in this area, including working with other

Audit team on site

Internal Plant Audits
Diagnosis by the Plant Manager
All the plant managers review the implementation
status of Responsible Care measures at their own
plant at least once a year.
2007 Modal Shift Award

32

Performance

Domestic metal box pallet

Domestic wooden box pallet

Other Audits and Inspections
The head of the Safety Environmental Affairs
Department performs special audits as required. A
special audit by the head of the Safety Environmental
Affairs Department is carried out if he deems it
necessary when a serious accident, serious security
breach, or serious environmental incident occurs.
The audit performs an on-site investigation of thecauses and makes any necessary improvement
recommendations.

Management

Environmental Countermesure for
Logistics

Affiliate Safety Inspections
A team led by the head of the Safety Environmental
Affairs Department performs a review and offers
guidance on the implementation status of
Responsible Care activities at affiliates at least once a
year.

Message

Logistics Safety
ZEON has instituted the “Yellow Card Management
Rules” for transport of toxic or dangerous products.
These rules require drivers to carry a yellow card
when such products are being shipped. Drivers arealso given training on the reporting procedures.
Training on how to handle products correctly is also
performed at each plant to help prevent logistics
accidents.

Internal EMS Audits
A regular audit is performed to check the EMS(Environment Management System) implementation
status based on the ISO14001 manual. Both internaland external courses are provided at each plant totrain employees to be internal auditors.

33

Environment and Safety Activity Performance

Performance

CSR Report

Environmental Economic Perspective
Environmental Accounting

Since 2002, ZEON has publicly released its
environmental protection costs and environmental
protection effects (physical effects and economic effects) in line with guidelines issued by the
Ministry of the Environment. This environmental accounting report is prepared based on themain items in the Ministry of the Environment's "Environmental Accounting Guidebook 2002"
and the "Procedures for Environmental Protection Cost Classification" (April 2003).

Environmental Protection Costs

Description of effects

Investment Expenses Investment Expenses
AmountAmount900.9

2,704.0

992.5

2,859.4

789.3

1,997.9830.7

2,036.1

Breakdown (2) Global environment protection costs

97.0

228.6

105.4

235.4

14.6

477.5

56.4

587.9

149.1

2.5

149.1

83.2

0.0

84.6

0.0

105.4

(3) Resource recycling costs
2. Upstream and downstream costs
3. Management activity costs
4. Research and development costs
5. Social activity costs
6. Environmental damage handling costs
Total

Item
Total investment amount within applicable period
Total research and development costs within applicable period

34

Scope of accounts
ZEON Corporation
ZEON Head Office, R&D Center, Takaoka
115.7 Plant, Kawasaki Plant, Tokuyama Plant,
0.0
114.9
0.0
Mizushima Plant
104.8 Affiliated Group Companies:
0.0
104.8
0.0
Okayama Butadiene Co., Ltd., ZEON
4,113.8 Chemicals Yonezawa Co., Ltd., ZEON
3,843.7 1,181.5
1,089.9
Logistical Materials Co., Ltd., RIMTEC
Amount (Million Yen) Corp., ZEON Medical Inc., ZEON North
Co., Ltd., ZEON Yamaguchi Co., Ltd.,
Polymix Co., Ltd. Otsu Plant and
ZEON Corporation Affiliated Group Companies ZEON
Kawagoe Plant, Optes Inc. Sano
Headquarters Plant and Toyama Plant,
35,50033,118ZEON Kasei Co., Ltd. Ibaraki Plant
Period Covered
11,801
11,612
April 1, 2007 to March 31, 2008

39.9

832.9

39.9

845.4

Comparison
Index
Compared toprevious year

701

29

703

28

NOx emissions (tons)

416

74

417

63

COD emissions (tons)

194

1

194

1

204,307

2,834

211,583

3,758

Industrial waste sent to landfill(tons)

1,522

322

2,105

480

Total emission of substances
subject to the PRTR law (tons)

58

10

65

11

Economic Effects
ZEON aims to put the waste resulting from oil byproduct production and similar to beneficial
economic use through measures such as recycling or
burning. Effort is also being put into recycling metal
products such as empty drums and other containers.
One energy saving measure is that ZEON pays
special attention to thermal recovery in its energy
intensive distillation processes.
Economic Effects Associated with Environmental
Preservation Measures (million yen)

ZEON's subsidiaries and affiliates work hard to findcompanies for whom their waste products may havevaluable uses.
ZEON also sorts materials such as the cardboard
used as packaging for raw materials so that these canbe on-sold and put to good use.
Reducing costs by recycling catalysts is ongoing andhas delivered benefits of around 460 million yen.

ZEON
Corporation

Affiliated Group
Companies

Description of effects
1,125.0

1,163.9

Cost reduction through energy savings

82.2

85.0

Reduction of industrial waste processing costs

Benefits of reclaiming material and utilization as fuelScope of accounts
ZEON Corporation
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliated Group Companies:
Okayama Butadiene Co., Ltd., ZEON
Chemicals Yonezawa Co., Ltd., ZEON
Logistical Materials Co., Ltd., RIMTEC
Corp., ZEON Medical Inc., ZEON North
Co., Ltd., ZEON Yamaguchi Co., Ltd.,ZEON Polymix Co., Ltd. Otsu Plant and
Kawagoe Plant, Optes Inc. Sano
Headquarters Plant and Toyama Plant,
ZEON Kasei Co., Ltd. Ibaraki Plant
Period Covered
April 1, 2007 to March 31, 2008

0.0

11.0

Cost reduction through waste-elimination and recovery
and reuse of solvents and catalysts

538.6

546.1

Total

1,745.8

1,806.0

Scope of accounts
ZEON Corporation
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliated Group Companies:
Okayama Butadiene Co., Ltd., ZEON
Chemicals Yonezawa Co., Ltd., ZEON
Logistical Materials Co., Ltd., RIMTEC
Corp., ZEON Medical Inc., ZEON North
Co., Ltd., ZEON Yamaguchi Co., Ltd.,ZEON Polymix Co., Ltd. Otsu Plant and
Kawagoe Plant, Optes Inc. Sano
Headquarters Plant and Toyama Plant,
ZEON Kasei Co., Ltd. Ibaraki Plant
Period Covered
April 1, 2007 to March 31, 200835

Site Reports

1. Costs within the business area
(1) Pollution prevention costs

Affiliated Group
Companies
Environmental
burden index

Performance

Classification

Affiliated Group Companies

ZEON
Comparison
Corporation
Index
Environmental Compared toburden index
previous year

SOx emissions (tons)

CO2 emissions (amount ofcarbon) (tons)
ZEON Corporation

the Tokuyama Plant has reduced the total COD
volume from 91 tons in 2006 to 81 tons in 2007.
Although the total level of COD discharges across theentire company is roughly unchanged due toincreased production of products that generate a highlevel of waste water by-products, the medium term
trend is for gradual reductions.
The shutdown of PVC production at the Takaoka
Plant has eliminated the main source of scum and
ZEON intends to reduce the amount of industrial
waste ultimately disposed of in landfill even further
in the future.
ZEON is working to reduce discharges of acrylonitrile
and butadiene, which are covered by the PRTR law,and the company achieved a 14% reduction on theprevious year. Further investment in improvements
planned for 2008 and beyond should reduce
emissions of these to less then one ton each in 2010.

Physical effects
If the area of atmospheric pollution, a gradualdecrease in NOx emissions has been achieved by the
upgrade to the incinerator at the Kawasaki Plant andincreased use of purchased steam at the Tokuyama
Plant. SOx emissions are also steadily declining.
Waste water quality continues to meet therequirements of the Clean Water Act and agreementswith local governments. As the 2009 target date set in
the 6th regulations on total waste water discharges
approaches, these rules will extend to include
phosphorus and nitrogen also. Improvements
including new processing techniques and equipment
upgrades are underway to meet these targets.
The aeration tank at the Kawasaki Plant was
upgraded in March 2007 and has succeeded in
reducing the T-N (Total Nitrogen) content of waste
water. Similarly, an upgrade to the aeration tank at
Environmental Protection Effects

2007 Environment Accounting Sheet
Environment Protection Costs (Million Yen)

Environmental Protection Effects

Management

Environmental protection costs
We are developing technologies to minimize waste
water and to reduce the level of volatile substancesthat remain in products. We are focusing in particular
on reducing butadiene and acrylonitrile, both toxic
air pollutants, and on developing technology,
designing equipment and trialing operatingprocedures to reduce the level of contaminants suchas T-N and COD in waste water.
We have reviewed our Responsible Care Report andare working to supply information to our customers
and others through publications such as our CSR
reports issued since 2006, with these being treated asenvironment-related management costs.
Meanwhile, our affiliated group companies have been
concentrating on administrative and improvement
activities aimed at establishing and maintaining theirown environment management systems.

Message

Capital investment for environmental protection
The major investment in pollution prevention during
2007 was the upgrade to the aeration tanks at the
Tokuyama Plant. The objective was to increase
dissolved nitrogen through improved aeration andthereby reduce total COD volumes. Also, PVC
production at the Takaoka Plant was shutdown at theend of the 2007 year. Other improvements included
equipment upgrades to optimize waste water loads.
A new industrial waste facility at the Kawasaki Plant
entered full operation in 2007 to help reduce
environmental odors.
The Tokuyama Plant has made an additional
investment in replacing wooden containers for
packaging synthetic rubber with recyclable metal
equivalents to reduce the overall environmental
impact of packaging.
As a concrete example of our energy saving efforts,
the incinerator at the Kawasaki Plant wasmodernized to reduce LNG usage.
The Tokuyama Plant has also invested in heatrecovery from purchased steam and this has
succeeded in reducing their total steam usage.

Environment and Safety Activity Performance

Performance

CSR Report

Environmental Economic Perspective
Environmental Accounting

Since 2002, ZEON has publicly released its
environmental protection costs and environmental
protection effects (physical effects and economic effects) in line with guidelines issued by the
Ministry of the Environment. This environmental accounting report is prepared based on themain items in the Ministry of the Environment's "Environmental Accounting Guidebook 2002"
and the "Procedures for Environmental Protection Cost Classification" (April 2003).

Environmental Protection Costs

Description of effects

Investment Expenses Investment Expenses
AmountAmount900.9

2,704.0

992.5

2,859.4

789.3

1,997.9830.7

2,036.1

Breakdown (2) Global environment protection costs

97.0

228.6

105.4

235.4

14.6

477.5

56.4

587.9

149.1

2.5

149.1

83.2

0.0

84.6

0.0

105.4

(3) Resource recycling costs
2. Upstream and downstream costs
3. Management activity costs
4. Research and development costs
5. Social activity costs
6. Environmental damage handling costs
Total

Item
Total investment amount within applicable period
Total research and development costs within applicable period

34

Scope of accounts
ZEON Corporation
ZEON Head Office, R&D Center, Takaoka
115.7 Plant, Kawasaki Plant, Tokuyama Plant,
0.0
114.9
0.0
Mizushima Plant
104.8 Affiliated Group Companies:
0.0
104.8
0.0
Okayama Butadiene Co., Ltd., ZEON
4,113.8 Chemicals Yonezawa Co., Ltd., ZEON
3,843.7 1,181.5
1,089.9
Logistical Materials Co., Ltd., RIMTEC
Amount (Million Yen) Corp., ZEON Medical Inc., ZEON North
Co., Ltd., ZEON Yamaguchi Co., Ltd.,
Polymix Co., Ltd. Otsu Plant and
ZEON Corporation Affiliated Group Companies ZEON
Kawagoe Plant, Optes Inc. Sano
Headquarters Plant and Toyama Plant,
35,50033,118ZEON Kasei Co., Ltd. Ibaraki Plant
Period Covered
11,801
11,612
April 1, 2007 to March 31, 2008

39.9

832.9

39.9

845.4

Comparison
Index
Compared toprevious year

701

29

703

28

NOx emissions (tons)

416

74

417

63

COD emissions (tons)

194

1

194

1

204,307

2,834

211,583

3,758

Industrial waste sent to landfill(tons)

1,522

322

2,105

480

Total emission of substances
subject to the PRTR law (tons)

58

10

65

11

Economic Effects
ZEON aims to put the waste resulting from oil byproduct production and similar to beneficial
economic use through measures such as recycling or
burning. Effort is also being put into recycling metal
products such as empty drums and other containers.
One energy saving measure is that ZEON pays
special attention to thermal recovery in its energy
intensive distillation processes.
Economic Effects Associated with Environmental
Preservation Measures (million yen)

ZEON's subsidiaries and affiliates work hard to findcompanies for whom their waste products may havevaluable uses.
ZEON also sorts materials such as the cardboard
used as packaging for raw materials so that these canbe on-sold and put to good use.
Reducing costs by recycling catalysts is ongoing andhas delivered benefits of around 460 million yen.

ZEON
Corporation

Affiliated Group
Companies

Description of effects
1,125.0

1,163.9

Cost reduction through energy savings

82.2

85.0

Reduction of industrial waste processing costs

Benefits of reclaiming material and utilization as fuelScope of accounts
ZEON Corporation
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliated Group Companies:
Okayama Butadiene Co., Ltd., ZEON
Chemicals Yonezawa Co., Ltd., ZEON
Logistical Materials Co., Ltd., RIMTEC
Corp., ZEON Medical Inc., ZEON North
Co., Ltd., ZEON Yamaguchi Co., Ltd.,ZEON Polymix Co., Ltd. Otsu Plant and
Kawagoe Plant, Optes Inc. Sano
Headquarters Plant and Toyama Plant,
ZEON Kasei Co., Ltd. Ibaraki Plant
Period Covered
April 1, 2007 to March 31, 2008

0.0

11.0

Cost reduction through waste-elimination and recovery
and reuse of solvents and catalysts

538.6

546.1

Total

1,745.8

1,806.0

Scope of accounts
ZEON Corporation
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliated Group Companies:
Okayama Butadiene Co., Ltd., ZEON
Chemicals Yonezawa Co., Ltd., ZEON
Logistical Materials Co., Ltd., RIMTEC
Corp., ZEON Medical Inc., ZEON North
Co., Ltd., ZEON Yamaguchi Co., Ltd.,ZEON Polymix Co., Ltd. Otsu Plant and
Kawagoe Plant, Optes Inc. Sano
Headquarters Plant and Toyama Plant,
ZEON Kasei Co., Ltd. Ibaraki Plant
Period Covered
April 1, 2007 to March 31, 200835

Site Reports

1. Costs within the business area
(1) Pollution prevention costs

Affiliated Group
Companies
Environmental
burden index

Performance

Classification

Affiliated Group Companies

ZEON
Comparison
Corporation
Index
Environmental Compared toburden index
previous year

SOx emissions (tons)

CO2 emissions (amount ofcarbon) (tons)
ZEON Corporation

the Tokuyama Plant has reduced the total COD
volume from 91 tons in 2006 to 81 tons in 2007.
Although the total level of COD discharges across theentire company is roughly unchanged due toincreased production of products that generate a highlevel of waste water by-products, the medium term
trend is for gradual reductions.
The shutdown of PVC production at the Takaoka
Plant has eliminated the main source of scum and
ZEON intends to reduce the amount of industrial
waste ultimately disposed of in landfill even further
in the future.
ZEON is working to reduce discharges of acrylonitrile
and butadiene, which are covered by the PRTR law,and the company achieved a 14% reduction on theprevious year. Further investment in improvements
planned for 2008 and beyond should reduce
emissions of these to less then one ton each in 2010.

Physical effects
If the area of atmospheric pollution, a gradualdecrease in NOx emissions has been achieved by the
upgrade to the incinerator at the Kawasaki Plant andincreased use of purchased steam at the Tokuyama
Plant. SOx emissions are also steadily declining.
Waste water quality continues to meet therequirements of the Clean Water Act and agreementswith local governments. As the 2009 target date set in
the 6th regulations on total waste water discharges
approaches, these rules will extend to include
phosphorus and nitrogen also. Improvements
including new processing techniques and equipment
upgrades are underway to meet these targets.
The aeration tank at the Kawasaki Plant was
upgraded in March 2007 and has succeeded in
reducing the T-N (Total Nitrogen) content of waste
water. Similarly, an upgrade to the aeration tank at
Environmental Protection Effects

2007 Environment Accounting Sheet
Environment Protection Costs (Million Yen)

Environmental Protection Effects

Management

Environmental protection costs
We are developing technologies to minimize waste
water and to reduce the level of volatile substancesthat remain in products. We are focusing in particular
on reducing butadiene and acrylonitrile, both toxic
air pollutants, and on developing technology,
designing equipment and trialing operatingprocedures to reduce the level of contaminants suchas T-N and COD in waste water.
We have reviewed our Responsible Care Report andare working to supply information to our customers
and others through publications such as our CSR
reports issued since 2006, with these being treated asenvironment-related management costs.
Meanwhile, our affiliated group companies have been
concentrating on administrative and improvement
activities aimed at establishing and maintaining theirown environment management systems.

Message

Capital investment for environmental protection
The major investment in pollution prevention during
2007 was the upgrade to the aeration tanks at the
Tokuyama Plant. The objective was to increase
dissolved nitrogen through improved aeration andthereby reduce total COD volumes. Also, PVC
production at the Takaoka Plant was shutdown at theend of the 2007 year. Other improvements included
equipment upgrades to optimize waste water loads.
A new industrial waste facility at the Kawasaki Plant
entered full operation in 2007 to help reduce
environmental odors.
The Tokuyama Plant has made an additional
investment in replacing wooden containers for
packaging synthetic rubber with recyclable metal
equivalents to reduce the overall environmental
impact of packaging.
As a concrete example of our energy saving efforts,
the incinerator at the Kawasaki Plant wasmodernized to reduce LNG usage.
The Tokuyama Plant has also invested in heatrecovery from purchased steam and this has
succeeded in reducing their total steam usage.

Environment and Safety Activity Performance

Site Reports

Environmental Economic Perspective

Environmental Economic
Perspective
Not only are we making the environmental
investments in pollution prevention equipment andresource and energy conservation equipment thatappear in the environmental accounts, we are also
working to improve safety through continuing
investments in improving safety and eliminating
100 million yen

Accumulated amount250

R&D Center

P38

Takaoka Plant

P40

Kawasaki Plant

P42

Tokuyama Plant

P44

Mizushima Plant

P46

ZEON Kasei Co., Ltd.

P48

ZEON Polymix Co., Ltd.

P49

Optes Inc.

P50

ZEON Chemicals Yonezawa Co., Ltd.

P51

ZEON Logistical Materials Co., Ltd.

P52

RIMTEC Corporation

P53

Management

Investment Amount200

The site reports describe environmental andsafety activities at the R&D Center, four plants in Japan,
eleven affiliates and four overseas affiliates.
Messagerisks.
Investments have focused on areas like prevention
and damage limitation including significant
investments in leak prevention, upgrades to firefighting equipment and measures for dealing withelectrical power outages.
The graph below shows the cumulative trend in total
environmental and safety investment.

150
100
50
0
90

91

92

93

94

95

96

97

98

99

00

01

02

03

Environment and safety investment AmountAffiliated Group
ZEON
2007 Investment AmountCompanies
Corporation(100 Million Yen)
Environment-related

10.9

0.9

11.8

Safety-related

15.8

0.3

16.2

Total

26.7

1.3

28.0

06

07

Scope of accounts
ZEON Corporation
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliated Group Companies:
Okayama Butadiene Co., Ltd., ZEON
Chemicals Yonezawa Co., Ltd., ZEON
Logistical Materials Co., Ltd., RIMTEC
Corp., ZEON Medical Inc., ZEON North
Co., Ltd., ZEON Yamaguchi Co., Ltd.,ZEON Polymix Co., Ltd. Otsu Plant and
Kawagoe Plant, Optes Inc. Sano
Headquarters Plant and Toyama Plant,
ZEON Kasei Co., Ltd. Ibaraki Plant
Period Covered
April 1, 2007 to March 31, 2008

ZEON Environmental Materials Co., Ltd. P54
Tokyo Zairyo Co., Ltd.

P55

ZEON Medical Co., Ltd.

P56

ZEON Yamaguchi Co., Ltd.

P57

ZEON North Co., Ltd.

P58

Zeon Chemicals L.P.

P60

Zeon Chemicals Europe Ltd.

P60

Zeon Chemicals(Thailand) Co.,Ltd.

P61

Zeon Advanced Polymix Co.,Ltd.

P61

Site Reports

36

Total

05

Performance

Note that our affiliates also started environment
accounting in 2003. Their investment amounts areshown in the chart below.

04

37

Environment and Safety Activity Performance

Site Reports

Environmental Economic Perspective

Environmental Economic
Perspective
Not only are we making the environmental
investments in pollution prevention equipment andresource and energy conservation equipment thatappear in the environmental accounts, we are also
working to improve safety through continuing
investments in improving safety and eliminating
100 million yen

Accumulated amount250

R&D Center

P38

Takaoka Plant

P40

Kawasaki Plant

P42

Tokuyama Plant

P44

Mizushima Plant

P46

ZEON Kasei Co., Ltd.

P48

ZEON Polymix Co., Ltd.

P49

Optes Inc.

P50

ZEON Chemicals Yonezawa Co., Ltd.

P51

ZEON Logistical Materials Co., Ltd.

P52

RIMTEC Corporation

P53

Management

Investment Amount200

The site reports describe environmental andsafety activities at the R&D Center, four plants in Japan,
eleven affiliates and four overseas affiliates.
Messagerisks.
Investments have focused on areas like prevention
and damage limitation including significant
investments in leak prevention, upgrades to firefighting equipment and measures for dealing withelectrical power outages.
The graph below shows the cumulative trend in total
environmental and safety investment.

150
100
50
0
90

91

92

93

94

95

96

97

98

99

00

01

02

03

Environment and safety investment AmountAffiliated Group
ZEON
2007 Investment AmountCompanies
Corporation(100 Million Yen)
Environment-related

10.9

0.9

11.8

Safety-related

15.8

0.3

16.2

Total

26.7

1.3

28.0

06

07

Scope of accounts
ZEON Corporation
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliated Group Companies:
Okayama Butadiene Co., Ltd., ZEON
Chemicals Yonezawa Co., Ltd., ZEON
Logistical Materials Co., Ltd., RIMTEC
Corp., ZEON Medical Inc., ZEON North
Co., Ltd., ZEON Yamaguchi Co., Ltd.,ZEON Polymix Co., Ltd. Otsu Plant and
Kawagoe Plant, Optes Inc. Sano
Headquarters Plant and Toyama Plant,
ZEON Kasei Co., Ltd. Ibaraki Plant
Period Covered
April 1, 2007 to March 31, 2008

ZEON Environmental Materials Co., Ltd. P54
Tokyo Zairyo Co., Ltd.

P55

ZEON Medical Co., Ltd.

P56

ZEON Yamaguchi Co., Ltd.

P57

ZEON North Co., Ltd.

P58

Zeon Chemicals L.P.

P60

Zeon Chemicals Europe Ltd.

P60

Zeon Chemicals(Thailand) Co.,Ltd.

P61

Zeon Advanced Polymix Co.,Ltd.

P61

Site Reports

36

Total

05

Performance

Note that our affiliates also started environment
accounting in 2003. Their investment amounts areshown in the chart below.

0437Site Report

Site Report

CSR Report

R&D Center

Founded: 1959
Address: 1-2-1 Yako, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture 210-8507
Tel: 044-276-3721 Fax: 044-276-3720

The R&D Center plays a central role in the development of technology at ZEON, undertaking
research and development to enhance and improve existing products, and into advanced
products for various fields including the new field of materials for the electronics and information
technology industries. In undertaking this research and development work, the R&D Center
takes account of environmental, safety and health considerations from the initial stages ofresearch.

2007 Environment and Safety Activity
Policy40

Environment and Safety Activities

35
30
25
20
15
10

00

01

02

03

04

05

06

07

health issues associated with the handling ofchemical substances, reliable safety management isensured by an authorization system managed by theEnvironment and Safety Unit that applies to thepurchase, use and disposal of any particularly
poisonous, toxic or dangerous chemical substances.
Reduction of industrial waste
Activities by the R&D Center to reduce industrial
waste include fully implementing separate waste
collection, encouraging the recycling of waste
plastics (which result in high emissions), andencouraging heat recovery. As a result, the amount ofindustrial waste and industrial landfill are both on a
downward trend. We also perform annual inspections
to make sure that externally contracted work is being
performed correctly.

350

Processed
Landfill
Recycled

No accidents or injuries in 2007!

300
250
200

New employee training (fire fighting exercise)150

Trend of workplace injury Occurrence

8
100

Lost time injuries
New or recently
transferred employees
Less than 10 years
10 years or more

7
50
6
0
00

01

02

03

04

05

06

07

5
4

Expansion of new
recruit training

3

5

2

3

3

3

1
0

0

1

00

38

"The Horror ofBeing Caught
in Machinery!":a practical training course byanexternalorganization

Nobuyasu Ota

2
0

0
01

0

00

1

02

0

1

0
03

1

0000

0 01

04

05

0

01
06

Safety activities proceed side by side with researchand development work at the R&D Center
responsible for coming up with new technology for
the ZEON group, where environmental and safety
activities that take account of the environment, safety
and health are conducted from the earliest stages ofresearch and development.
The R&D department is working to eliminate
accidents and injures and places a high importanceon performing safety audits for new experiments,
managing chemical substances and running various
safety training. No accidents or injuries occurred
during 2007. Further environmental and safety activities areunderway to ensure this successin remaining accident and injury
free continues in 2008.

0 000007

Manager,
Environment
and Safety Unit

39

Site Reports

Amount of industrial waste produced

The priority areas for the current financial year aredescribed below.
Environment and safety training programs
1. New employee training (for all employees who joined thecompany in 2007)(1) Monthly group training covering safety knowledge and practical skills training (total of 10
times)(2) "Train the trainer" for OJT instructors of new
recruits and recently transferred employees(3) New recruit training based on facility-specifictraining programs

Chemical Safety Training
1. Training on the handling of chemical substance inaccordance with MSDSs (for all workplaces)
2. Chemical substance regulations and safety management (for all employees)
3. Chemical substance safety training (for newly
promoted employees)

Performance

Chemical substance handling restrictions andmanagement
With consideration for the environmental, safety and0

Environment and safety training consists of a
combination of classroom-style sessions run by theEnvironment and Safety Office along with OJT (onthe job training) in the workplace.
The training program for new and transferredpersonnel has been expanding since 2002, withfurther expansion planned. The last few years haveseen zero workplace accidents involving new andtransferred personnel.
In 2006 there were four workplace accidents
involving middle-ranking researchers with around ten
years’ experience. The safety training program for
middle-ranking researchers has since been upgradedwith the result that no accidents or injuries occurredin 2007.

2. Level-specific safety
training for middleranking researchers
No. 10 Building(1) Safety training byorganizational layer (for newly promoted
employees and research leaders)(2) Hands-on safety training for middle-ranking
researchers (out-sourced)
3. Full workforce training(1) Accident case study training conducted byformer plant managers(2) KYT training by external training providers(3) Safety training based on the Workplace Injury
Elimination Campaign (for all workplaces)

Management

Safety inspections for new experiments
A safety inspection committee must approve all new
experiments (introduction of new test equipment,
introduction of new practices, handling of chemical
substances, etc.) beforehand to ensure that theenvironment, safety and health are maintained andimproved in new technology development work.
Prior to conducting the experiment, the applicant
conducts a 4R-KY or similar risk assessment of theequipment, procedures, chemical substances, andother considerations to prevent near-miss incidents
and equipment problems in new experiments.

400

Environment and Safety Training andChemical Safety Training

Trend of safety inspections
Number offor new experiments
inspections

5

The R&D Center concentrated on the following
activities in line with the 2007 Environment and
Safety Policy.

Corporate officer
General Manager, R&D Center

Message

Number of inspections(1) Establish safe and stable production technology(2) Increase awareness of risks and eliminate accidents and injuries(3) Take a rigorous approach to safety managementof chemical substances and comply with relevant
legal obligations(4)Proceed steadily with research and development
on environment improvements

45

Jun Hasegawa

Site Report

Site Report

CSR Report

R&D Center

Founded: 1959
Address: 1-2-1 Yako, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture 210-8507
Tel: 044-276-3721 Fax: 044-276-3720

The R&D Center plays a central role in the development of technology at ZEON, undertaking
research and development to enhance and improve existing products, and into advanced
products for various fields including the new field of materials for the electronics and information
technology industries. In undertaking this research and development work, the R&D Center
takes account of environmental, safety and health considerations from the initial stages ofresearch.

2007 Environment and Safety Activity
Policy40

Environment and Safety Activities

35
30
25
20
15
10

00

01

02

03

04

05

06

07

health issues associated with the handling ofchemical substances, reliable safety management isensured by an authorization system managed by theEnvironment and Safety Unit that applies to thepurchase, use and disposal of any particularly
poisonous, toxic or dangerous chemical substances.
Reduction of industrial waste
Activities by the R&D Center to reduce industrial
waste include fully implementing separate waste
collection, encouraging the recycling of waste
plastics (which result in high emissions), andencouraging heat recovery. As a result, the amount ofindustrial waste and industrial landfill are both on a
downward trend. We also perform annual inspections
to make sure that externally contracted work is being
performed correctly.

350

Processed
Landfill
Recycled

No accidents or injuries in 2007!

300
250
200

New employee training (fire fighting exercise)150

Trend of workplace injury Occurrence

8
100

Lost time injuries
New or recently
transferred employees
Less than 10 years
10 years or more

7
50
6
0
00

01

02

03

04

05

06

07

5
4

Expansion of new
recruit training

3

5

2

3

3

3

1
0

0

1

00

38

"The Horror ofBeing Caught
in Machinery!":a practical training course byanexternalorganization

Nobuyasu Ota

2
0

0
01

0

00

1

02

0

1

0
03

1

0000

0 01

04

05

0

01
06

Safety activities proceed side by side with researchand development work at the R&D Center
responsible for coming up with new technology for
the ZEON group, where environmental and safety
activities that take account of the environment, safety
and health are conducted from the earliest stages ofresearch and development.
The R&D department is working to eliminate
accidents and injures and places a high importanceon performing safety audits for new experiments,
managing chemical substances and running various
safety training. No accidents or injuries occurred
during 2007. Further environmental and safety activities areunderway to ensure this successin remaining accident and injury
free continues in 2008.

0 000007

Manager,
Environment
and Safety Unit

39

Site Reports

Amount of industrial waste produced

The priority areas for the current financial year aredescribed below.
Environment and safety training programs
1. New employee training (for all employees who joined thecompany in 2007)(1) Monthly group training covering safety knowledge and practical skills training (total of 10
times)(2) "Train the trainer" for OJT instructors of new
recruits and recently transferred employees(3) New recruit training based on facility-specifictraining programs

Chemical Safety Training
1. Training on the handling of chemical substance inaccordance with MSDSs (for all workplaces)
2. Chemical substance regulations and safety management (for all employees)
3. Chemical substance safety training (for newly
promoted employees)

Performance

Chemical substance handling restrictions andmanagement
With consideration for the environmental, safety and0

Environment and safety training consists of a
combination of classroom-style sessions run by theEnvironment and Safety Office along with OJT (onthe job training) in the workplace.
The training program for new and transferredpersonnel has been expanding since 2002, withfurther expansion planned. The last few years haveseen zero workplace accidents involving new andtransferred personnel.
In 2006 there were four workplace accidents
involving middle-ranking researchers with around ten
years’ experience. The safety training program for
middle-ranking researchers has since been upgradedwith the result that no accidents or injuries occurredin 2007.

2. Level-specific safety
training for middleranking researchers
No. 10 Building(1) Safety training byorganizational layer (for newly promoted
employees and research leaders)(2) Hands-on safety training for middle-ranking
researchers (out-sourced)
3. Full workforce training(1) Accident case study training conducted byformer plant managers(2) KYT training by external training providers(3) Safety training based on the Workplace Injury
Elimination Campaign (for all workplaces)

Management

Safety inspections for new experiments
A safety inspection committee must approve all new
experiments (introduction of new test equipment,
introduction of new practices, handling of chemical
substances, etc.) beforehand to ensure that theenvironment, safety and health are maintained andimproved in new technology development work.
Prior to conducting the experiment, the applicant
conducts a 4R-KY or similar risk assessment of theequipment, procedures, chemical substances, andother considerations to prevent near-miss incidents
and equipment problems in new experiments.

400

Environment and Safety Training andChemical Safety Training

Trend of safety inspections
Number offor new experiments
inspections

5

The R&D Center concentrated on the following
activities in line with the 2007 Environment and
Safety Policy.

Corporate officer
General Manager, R&D Center

Message

Number of inspections(1) Establish safe and stable production technology(2) Increase awareness of risks and eliminate accidents and injuries(3) Take a rigorous approach to safety managementof chemical substances and comply with relevant
legal obligations(4)Proceed steadily with research and development
on environment improvements

45

Jun Hasegawa

Site Report

Site Report

CSR Report

The Takaoka Plant was established in 1956 to produce
PVC. It began the production of a specialty synthetic
rubber called hydrogenated nitrile rubber in 1983. After
that, it began its foray into new areas and is expanding into the fields of medical products and component
fabrication, particularly optical component applications and cycloolefin polymer, an environmentallyfriendly next generation fluorine solvent. An associated research department was established and has
been actively involved in relevant research work. Although production of its original product, PVC,
shutdown in March 2008, the plant has plans fill this vacancy by expanding into new areas and iscontinuing its transformation into an up-and-coming future-oriented plant.

Takaoka Plant

Environment and Safety Activities

1,000 kl

35

3(90% or less of 1990 levels)

Unit Consumption Index

30
Energy Consumption

2.5
2
1.5

Energy consumption and unit
consumption index
Energy Consumption

3.3

3.4
2.7

2.8
2.2

1

1.9

1.7 1.5

0.5

1.4

1.2

1.0
0.72

0

100

25

80

20
60
15
40
10
20

5

0

0
96

97

98

99

00

01

02

03

04

05

06

07

120

00

01

02

03

04

05

06

Unit Consumption Index (Relative to 1990)

Amount of industrial waste disposed ofin landfill (1996 to 2007)

Clean-up in the area aroundthe factory

Responsible Care dialogue with thecommunity in Takaoka, Toyama

Topics for 2007
(1) Establish a car park in front of the plant
The car park in front of the plant was expanded after
consulting with local residents. Although private cars
were previously permitted access to the on-site carpark, these were moved from the small internal car
park to the new car park in front of the plant toimprove convenience and make vehicle traffic within
the plant safer.
The appearance of the site was also enhanced byplanting a lawn in the vacant area obtained byreorganizing the bicycle park and small buildings
located in one corner of this area.
Environmental data for the Takaoka Plant
Year
Vinyl chloride
monomer**
PRTR applicable
Substances **Industrial waste
Atmospheric emissions

07

Waste water

Energy40(2) Clean-up activities in conjunction with local
government
On May 30th, the plant joined with the local
government to hold their fourth "zero trash" dayduring which they removed weeds and collected
empty cans and other litter from nearby streets.

Consumption (tons)
Emissions (tons)
Consumption (tons)
Emissions (tons)
Waste produced (tons)
Disposal in landfill (tons)
CO2 emissions (tons-C*)
SOx emissions (tons)
NOx emissions (tons)
Total effluent waste water discharge(thousand m3)
COD emissions (tons)
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Unit consumption index (1990 = 100)

Lawn created byshifting the bicyclepark*Amount of carbon equivalent* * The totals for vinyl chloride monomers and substances subject to the PRTR law were modified in 2004 to show consumption
and emissions for ZEON Corporation only and to exclude Shin Dai-Ichi Vinyl Co.,Ltd. (a contract manufacturer).

00

01

02

03

04

05

06

07

44,00088
46,146
127
7,904
2,176
17,811
39
59
5,545
57
2
5
27,13945,20053
47,145
96
7,569
1,909
16,772
22
47
6,158
36
2
5
24,89741,60040
42,338
83
6,068
1,692
17,494
30
56
6,464
35
4
7
26,46240,30040
42,575
85
5,255
1,497
16,856
53
70
6,649
46
3
25
26,341

785
1
1,439
4
5,143
1,437
17,760
41
69
6,441
29
1
15
27,494

656
1
1,312
4
4,358
1,114
17,567
33
31
5,901
31
1
15
28,692

777
1
1,405
5
3,536
895
17,638
51
50
6,587
33
1
16
31,417

759
1
1,277
4
3,751
1,016
16,609
52
49
6,919
42
1
6
28,967

101

106

98

90

83

80

75

83

41

Site Reports

3.5(1) RC dialog
Five companies from Toyama Prefecture affiliatedwith JRCC held a dialog with the local community on
March 1st to describe their daily Responsible Care
activities. The day started with the attendees fromlocal councils taking a factory tour and was also
attended by numerous people from government,
schools, administrative bodies, and non-JRCC
member companies who were able to learn about thedaily activities carried out at the companies.

Performance

1,000 tons

(4) Resource and energy saving
We are working to meet the target of reducing the
average unit energy consumption rate for the 2008 to2012 period to 87% of the 1990 level.
Unit energy consumption achieved the target in 2003
and is on a reducing trend, but although energy use
dropped further in 2007, the unit energy consumption
actually increased due to lower production. We areworking to get everyone to apply their collective
knowledge in the area of energy conservation inorder to make further reductions and become anenergy-efficient plant by operating efficiently with theminimum energy use and by rigorous day-to-day
operational management and an awareness of theneed for incremental savings.

Living Together with the Local
Community

Management(2) Reducing of industrial waste
Around 60% of industrial waste from the Takaoka
Plant is excess sludge from the waste water
treatment facilities.
We have introduced new technology to reduce sludge
volumes and the volume of waste sent to landfill isbeing reduced by separating out the resins in thesludge for recycling. We are also working with ourwaste disposal contractors to recycle materials suchas waste plastic, glass and oil. Although the volume
of waste sent to landfill increased in 2007, this wasdue to an increase in treatment volumes leading up to
the shutdown of PVC production in March 2008. Thisfact, along with the commissioning of new waste
water treatment equipment should see a reduction in
2008.

Yoshio Umezawa
Corporate Officer
Plant Manager, Takaoka Plant

Message(1) Reducing Toxic Chemical Emissions
We are making efforts to reduce the amount ofemissions through closed process methods and are
upgrading our facilities to achieve further reductions
in our emissions of un-reacted vinyl chloride
monomer during PVC production, and we haveachieved the voluntary targets set by the PVC
industry association. We are also continuing to
reduce emissions of organic solvents used in othermanufacturing processes and are investigating new
ways of reducing emissions even further.

(3) Reduction of Air and Water Environmental
Burdens
Emission of atmospheric pollutants can vary widely
depending on how well boiler operation is integrated
with steam requirements in the factory, and stable
operation is maintained by managing the plant in sucha way as to avoid sudden variations.
We aim to prevent the discharge of water pollutants
by maintaining appropriate active sludge treatment
conditions to ensure the stable operation of our waste
water treatment facilities. We are also working on
emergency management measures including
installing fault detection and emergency shutdown
equipment to prevent the discharge of pollutants if anabnormal situation arises.

Founded: 1956
Address: 630 Ogino, Takaoka City, Toyama Prefecture
933-8516
Tel: 0766-21-0252 Fax: 0766-21-4568

Site Report

Site Report

CSR Report

The Takaoka Plant was established in 1956 to produce
PVC. It began the production of a specialty synthetic
rubber called hydrogenated nitrile rubber in 1983. After
that, it began its foray into new areas and is expanding into the fields of medical products and component
fabrication, particularly optical component applications and cycloolefin polymer, an environmentallyfriendly next generation fluorine solvent. An associated research department was established and has
been actively involved in relevant research work. Although production of its original product, PVC,
shutdown in March 2008, the plant has plans fill this vacancy by expanding into new areas and iscontinuing its transformation into an up-and-coming future-oriented plant.

Takaoka Plant

Environment and Safety Activities

1,000 kl

35

3(90% or less of 1990 levels)

Unit Consumption Index

30
Energy Consumption

2.5
2
1.5

Energy consumption and unit
consumption index
Energy Consumption

3.3

3.4
2.7

2.8
2.2

1

1.9

1.7 1.5

0.5

1.4

1.2

1.0
0.72

0

100

25

80

20
60
15
40
10
20

5

0

0
96

97

98

99

00

01

02

03

04

05

06

07

120

00

01

02

03

04

05

06

Unit Consumption Index (Relative to 1990)

Amount of industrial waste disposed ofin landfill (1996 to 2007)

Clean-up in the area aroundthe factory

Responsible Care dialogue with thecommunity in Takaoka, Toyama

Topics for 2007
(1) Establish a car park in front of the plant
The car park in front of the plant was expanded after
consulting with local residents. Although private cars
were previously permitted access to the on-site carpark, these were moved from the small internal car
park to the new car park in front of the plant toimprove convenience and make vehicle traffic within
the plant safer.
The appearance of the site was also enhanced byplanting a lawn in the vacant area obtained byreorganizing the bicycle park and small buildings
located in one corner of this area.
Environmental data for the Takaoka Plant
Year
Vinyl chloride
monomer**
PRTR applicable
Substances **Industrial waste
Atmospheric emissions

07

Waste water

Energy40(2) Clean-up activities in conjunction with local
government
On May 30th, the plant joined with the local
government to hold their fourth "zero trash" dayduring which they removed weeds and collected
empty cans and other litter from nearby streets.

Consumption (tons)
Emissions (tons)
Consumption (tons)
Emissions (tons)
Waste produced (tons)
Disposal in landfill (tons)
CO2 emissions (tons-C*)
SOx emissions (tons)
NOx emissions (tons)
Total effluent waste water discharge(thousand m3)
COD emissions (tons)
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Unit consumption index (1990 = 100)

Lawn created byshifting the bicyclepark*Amount of carbon equivalent* * The totals for vinyl chloride monomers and substances subject to the PRTR law were modified in 2004 to show consumption
and emissions for ZEON Corporation only and to exclude Shin Dai-Ichi Vinyl Co.,Ltd. (a contract manufacturer).

00

01

02

03

04

05

06

07

44,00088
46,146
127
7,904
2,176
17,811
39
59
5,545
57
2
5
27,13945,20053
47,145
96
7,569
1,909
16,772
22
47
6,158
36
2
5
24,89741,60040
42,338
83
6,068
1,692
17,494
30
56
6,464
35
4
7
26,46240,30040
42,575
85
5,255
1,497
16,856
53
70
6,649
46
3
25
26,341

785
1
1,439
4
5,143
1,437
17,760
41
69
6,441
29
1
15
27,494

656
1
1,312
4
4,358
1,114
17,567
33
31
5,901
31
1
15
28,692

777
1
1,405
5
3,536
895
17,638
51
50
6,587
33
1
16
31,417

759
1
1,277
4
3,751
1,016
16,609
52
49
6,919
42
1
6
28,967

101

106

98

90

83

80

75

83

41

Site Reports

3.5(1) RC dialog
Five companies from Toyama Prefecture affiliatedwith JRCC held a dialog with the local community on
March 1st to describe their daily Responsible Care
activities. The day started with the attendees fromlocal councils taking a factory tour and was also
attended by numerous people from government,
schools, administrative bodies, and non-JRCC
member companies who were able to learn about thedaily activities carried out at the companies.

Performance

1,000 tons

(4) Resource and energy saving
We are working to meet the target of reducing the
average unit energy consumption rate for the 2008 to2012 period to 87% of the 1990 level.
Unit energy consumption achieved the target in 2003
and is on a reducing trend, but although energy use
dropped further in 2007, the unit energy consumption
actually increased due to lower production. We areworking to get everyone to apply their collective
knowledge in the area of energy conservation inorder to make further reductions and become anenergy-efficient plant by operating efficiently with theminimum energy use and by rigorous day-to-day
operational management and an awareness of theneed for incremental savings.

Living Together with the Local
Community

Management(2) Reducing of industrial waste
Around 60% of industrial waste from the Takaoka
Plant is excess sludge from the waste water
treatment facilities.
We have introduced new technology to reduce sludge
volumes and the volume of waste sent to landfill isbeing reduced by separating out the resins in thesludge for recycling. We are also working with ourwaste disposal contractors to recycle materials suchas waste plastic, glass and oil. Although the volume
of waste sent to landfill increased in 2007, this wasdue to an increase in treatment volumes leading up to
the shutdown of PVC production in March 2008. Thisfact, along with the commissioning of new waste
water treatment equipment should see a reduction in
2008.

Yoshio Umezawa
Corporate Officer
Plant Manager, Takaoka Plant

Message(1) Reducing Toxic Chemical Emissions
We are making efforts to reduce the amount ofemissions through closed process methods and are
upgrading our facilities to achieve further reductions
in our emissions of un-reacted vinyl chloride
monomer during PVC production, and we haveachieved the voluntary targets set by the PVC
industry association. We are also continuing to
reduce emissions of organic solvents used in othermanufacturing processes and are investigating new
ways of reducing emissions even further.

(3) Reduction of Air and Water Environmental
Burdens
Emission of atmospheric pollutants can vary widely
depending on how well boiler operation is integrated
with steam requirements in the factory, and stable
operation is maintained by managing the plant in sucha way as to avoid sudden variations.
We aim to prevent the discharge of water pollutants
by maintaining appropriate active sludge treatment
conditions to ensure the stable operation of our waste
water treatment facilities. We are also working on
emergency management measures including
installing fault detection and emergency shutdown
equipment to prevent the discharge of pollutants if anabnormal situation arises.

Founded: 1956
Address: 630 Ogino, Takaoka City, Toyama Prefecture
933-8516
Tel: 0766-21-0252 Fax: 0766-21-4568

Site Report

Site Report
CSR Report

The Kawasaki Plant has a long and successful
history. In 1959 it was the first factory in Japan toindustrialize “acrylonitrile butadiene rubber”,
which is a special synthetic rubber. In the 45 years since then the plant has been supplying the
public with high-quality products as our principal site for synthetic rubber and latex production.
Being located in the Greater Tokyo metropolitan area, the plant is involved in ongoing
Responsible Care activities and has an active program of improvement activities aimed at
reducing environmental pollution. In 2008 we continued our efforts to be an environmentallyfriendly plant with further reductions in toxic chemical emissions, atmospheric and waterpollution, and industrial waste output.

Kawasaki Plant

Environment and Safety Activities(3) Reduction of Air and Water Environmental
Burdens
To reduce atmospheric pollution, we are working tomaintain reliable operation of our new incinerator to
reduce emissions of nitrogen oxides, carbon
monoxide, soot, and other pollutants.
To reduce water pollution, we have been studying
how to operate the new waste water treatment tanks
we added in 2006 and these entered full operation in2007. As a result, we succeeded in improving the total
nitrogen removal rate from 30% to more than 50%.
Our aim in 2008 is to optimize the operating practices
further and raise this rate even higher.

Trend of butadiene emissions

40
35
30
25
20
15
10
5

(4) Resource and energy saving
We are working to meet the target of reducing the
average unit energy consumption rate for the 2008 to2012 period to 87% of the 1990 level. Although
improvements have already been achieved throughlarge-scale investments including an upgrade to ourcogeneration facilities, we are continuing to work on
further improvements despite greater energy use at
our non-production facilities and the operation ofequipment that improves our environmental
performance.

0
00

01

02

03

04

05

06

07

Trend of acrylonitrile emissions

Tons

Living Together with the Local
Community

35
30
25
20
15

Our aim is to be open to thecommunity

10
5

Our aim as a factory is to berooted in the local communityand open to the public. We
are also striving to make ourplant environmentally friendly.

0
00

140

Tons

01

02

03

04

05

06

07

Trend of nitrogen emissions

Kazufumi Suzuki
Manager, Environment and
Safety Unit

Site visit from Vietnamese students

100

Environmental Data for the Kawasaki Plant
Year

80
60

Harmful substances
40

PRTR applicable
Substances

20
0

Industrial waste
00

01

02

03

04

05

06

07

Atmosphericemissions
Completed new incinerator

Waste water

EnergyButadiene consumption (tons)
Butadiene emissions (tons)
Acrylonitrile consumption (tons)
Acrylonitrile emissions (tons)
Consumption (tons)
Emissions (tons)
Waste produced (tons)
Disposal in landfill (tons)
CO2 emissions (tons-C*)
SOx emissions (tons)
NOx emissions (tons)
Total effluent discharge (1,000m3)
COD emissions (tons)
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Unit consumption index (1990 = 100)

*Amount of carbon equivalent

00

01

02

03

30,64945
10,837
36
63,27389
52,11560
13,911
1
28
1,942
49
0
49
22,806

29,05839
11,25738
57,42984
48,60650
13,356
2
29
1,942
56
0
70
21,96627,33534
10,93729
55,62969
70,261
230
13,226
1
29
1,726
49
1
68
20,911

29,87632
12,33632
59,00170
63,75924
13,077
1
27
1,825
57
1
107
20,955

107

108

110

101

04

05

06

07

30,72629
12,95338
59,53073
44,758238
13,077
3
28
2,006
53
1
107
20,836

29,694
8
12,34524
58,96054
37,158520
13,894
1
18
1,906
52
1
118
20,49028,278912,44624
56,75156
47,826
189
11,918
2
28
1,988
55
1
125
20,092

28886
5
13030
20.0
55278
69
45395
392
12955
1
17
1970
58
1
93
19982

99

103

101

102

43

Site Reports

120

42

Performance(1) With the aim of being a plant that is open to thecommunity, we received visitors both from Japanand overseas and invited neighboring companies,
neighborhood association committees, and others
to join us in plant welfare initiatives.
(2) With the aim of being a plant that is rooted in thelocal community, we conducted clean-ups of thearea around the plant as part of our program of40

beautification work. In 2007, these wereconducted in cooperation with neighboring
companies.
(3) Twice a year, we carry out emergency drills incooperation with the emergency services topractice dealing with accidents and injuries. We
also undertook an initial exercise in cooperation
with the public fire fighting and other emergency
services.

Management

45(2) Reduction of industrial waste
The plant is working to reduce the volume ofindustrial waste by sorting waste for collection andby improving reuse of resources (recycling and heatrecovery). Although a new incinerator wascompleted in 2007 and is operating reliably,
unfortunately this work resulted in more waste being
sent to landfill with an increase from 190 tons in 2006
to 400 tons. The plant will continue to strive tooperate the new incinerator reliably and reduce
industrial waste volumes.

Tons

Yoshiyuki Mitsuhira
Corporate Officer
Plant Manager, Kawasaki Plant

Message(1) Reduction of Toxic Chemical Emissions
Processing volumes of butadiene, the main raw
material in synthetic rubber and synthetic latex,
increased due to full-scale operation of the catalytic
combustor installed in 2004 and further adoption ofclosed production processes. Despite this, emissions
reduced from 8.5 tons in 2006 to 4.5 tons in 2007. The
target for 2008 is to reduce emissions down to 4 tons.
Full operation of a new acrylonitrile recovery
process commenced in 2005. Since then, theutilization of the recovery system has been further
improved. Emissions in 2007 reduced from 24 tons to
20 tons and the target for 2008 is 13 tons.
Continuing technical improvements are expected toreduce butadiene and acrylonitrile emissions still
further.

45

Founded: 1959
Address: 1-2-1 Yako, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture 210-8507
Tel: 044-276-3700 Fax: 044-276-3720

Site Report

Site Report
CSR Report

The Kawasaki Plant has a long and successful
history. In 1959 it was the first factory in Japan toindustrialize “acrylonitrile butadiene rubber”,
which is a special synthetic rubber. In the 45 years since then the plant has been supplying the
public with high-quality products as our principal site for synthetic rubber and latex production.
Being located in the Greater Tokyo metropolitan area, the plant is involved in ongoing
Responsible Care activities and has an active program of improvement activities aimed at
reducing environmental pollution. In 2008 we continued our efforts to be an environmentallyfriendly plant with further reductions in toxic chemical emissions, atmospheric and waterpollution, and industrial waste output.

Kawasaki Plant

Environment and Safety Activities(3) Reduction of Air and Water Environmental
Burdens
To reduce atmospheric pollution, we are working tomaintain reliable operation of our new incinerator to
reduce emissions of nitrogen oxides, carbon
monoxide, soot, and other pollutants.
To reduce water pollution, we have been studying
how to operate the new waste water treatment tanks
we added in 2006 and these entered full operation in2007. As a result, we succeeded in improving the total
nitrogen removal rate from 30% to more than 50%.
Our aim in 2008 is to optimize the operating practices
further and raise this rate even higher.

Trend of butadiene emissions

40
35
30
25
20
15
10
5

(4) Resource and energy saving
We are working to meet the target of reducing the
average unit energy consumption rate for the 2008 to2012 period to 87% of the 1990 level. Although
improvements have already been achieved throughlarge-scale investments including an upgrade to ourcogeneration facilities, we are continuing to work on
further improvements despite greater energy use at
our non-production facilities and the operation ofequipment that improves our environmental
performance.

0
00

01

02

03

04

05

06

07

Trend of acrylonitrile emissions

Tons

Living Together with the Local
Community

35
30
25
20
15

Our aim is to be open to thecommunity

10
5

Our aim as a factory is to berooted in the local communityand open to the public. We
are also striving to make ourplant environmentally friendly.

0
00

140

Tons

01

02

03

04

05

06

07

Trend of nitrogen emissions

Kazufumi Suzuki
Manager, Environment and
Safety Unit

Site visit from Vietnamese students

100

Environmental Data for the Kawasaki Plant
Year

80
60

Harmful substances
40

PRTR applicable
Substances

20
0

Industrial waste
00

01

02

03

04

05

06

07

Atmosphericemissions
Completed new incinerator

Waste water

EnergyButadiene consumption (tons)
Butadiene emissions (tons)
Acrylonitrile consumption (tons)
Acrylonitrile emissions (tons)
Consumption (tons)
Emissions (tons)
Waste produced (tons)
Disposal in landfill (tons)
CO2 emissions (tons-C*)
SOx emissions (tons)
NOx emissions (tons)
Total effluent discharge (1,000m3)
COD emissions (tons)
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Unit consumption index (1990 = 100)

*Amount of carbon equivalent

00

01

02

03

30,64945
10,837
36
63,27389
52,11560
13,911
1
28
1,942
49
0
49
22,806

29,05839
11,25738
57,42984
48,60650
13,356
2
29
1,942
56
0
70
21,96627,33534
10,93729
55,62969
70,261
230
13,226
1
29
1,726
49
1
68
20,911

29,87632
12,33632
59,00170
63,75924
13,077
1
27
1,825
57
1
107
20,955

107

108

110

101

04

05

06

07

30,72629
12,95338
59,53073
44,758238
13,077
3
28
2,006
53
1
107
20,836

29,694
8
12,34524
58,96054
37,158520
13,894
1
18
1,906
52
1
118
20,49028,278912,44624
56,75156
47,826
189
11,918
2
28
1,988
55
1
125
20,092

28886
5
13030
20.0
55278
69
45395
392
12955
1
17
1970
58
1
93
19982

99

103

101

102

43

Site Reports

120

42

Performance(1) With the aim of being a plant that is open to thecommunity, we received visitors both from Japanand overseas and invited neighboring companies,
neighborhood association committees, and others
to join us in plant welfare initiatives.
(2) With the aim of being a plant that is rooted in thelocal community, we conducted clean-ups of thearea around the plant as part of our program of40

beautification work. In 2007, these wereconducted in cooperation with neighboring
companies.
(3) Twice a year, we carry out emergency drills incooperation with the emergency services topractice dealing with accidents and injuries. We
also undertook an initial exercise in cooperation
with the public fire fighting and other emergency
services.

Management

45(2) Reduction of industrial waste
The plant is working to reduce the volume ofindustrial waste by sorting waste for collection andby improving reuse of resources (recycling and heatrecovery). Although a new incinerator wascompleted in 2007 and is operating reliably,
unfortunately this work resulted in more waste being
sent to landfill with an increase from 190 tons in 2006
to 400 tons. The plant will continue to strive tooperate the new incinerator reliably and reduce
industrial waste volumes.

Tons

Yoshiyuki Mitsuhira
Corporate Officer
Plant Manager, Kawasaki Plant

Message(1) Reduction of Toxic Chemical Emissions
Processing volumes of butadiene, the main raw
material in synthetic rubber and synthetic latex,
increased due to full-scale operation of the catalytic
combustor installed in 2004 and further adoption ofclosed production processes. Despite this, emissions
reduced from 8.5 tons in 2006 to 4.5 tons in 2007. The
target for 2008 is to reduce emissions down to 4 tons.
Full operation of a new acrylonitrile recovery
process commenced in 2005. Since then, theutilization of the recovery system has been further
improved. Emissions in 2007 reduced from 24 tons to
20 tons and the target for 2008 is 13 tons.
Continuing technical improvements are expected toreduce butadiene and acrylonitrile emissions still
further.

45

Founded: 1959
Address: 1-2-1 Yako, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture 210-8507
Tel: 044-276-3700 Fax: 044-276-3720

Site Report

Site Report

CSR Report

The Tokuyama Plant started operations in 1965. The
plant produces butadiene using the “ZEON Processof Butadiene” (GPB), an extraction distillation
technology developed by ZEON. The butadiene isused as a raw material in the manufacture of synthetic rubber and synthetic latex that is then sold on the
global market. The plant was the first in the world to produce polymerized toner commercially and has
successfully expanded production, with further equipment to be installed to meet strong demand.
Given our close proximity to residential areas, we place considerable importance on maintaining a
dialogue with the local community and the entire workforce is committed to making Tokuyama Plant anenvironmentally friendly factory that is trusted by the community for its safe and reliable operation.

Tokuyama Plant

Environment and Safety Activities

600
400,000
500
Emissions
Consumption

400
300

300,000
200,000

200(4) Resource and energy saving
Although we are working to bring the skills of theentire workforce to bear on the objective of reducing
the average unit energy consumption rate for the2008 to 2012 period to 87% or less of the 1990 level,
we have yet to achieve this target. We are continuing
to work day and night to look at energy saving fromevery different angle, including the introduction ofrevolutionary new technology.

110

Tons

Energy unit consumption andrate index

105
100

Unit consumption index(1990 = 100)

100,000

100

95
0

0
00

01

Tons

02

03

04

05

06

07

Amount of final landfill ofIndustrial waste
Amount of landfill

700
600
500
400
300
200
100

90

Living Together with the Local
Community00(1) Summer Festival (Japanese dance)
Japanese dance is a regular event at the Tokuyama
Plant and has an established place in the community
where it is a highly valued opportunity to mix withlocal residents. Although this year's event was
threatened with heavy rain, the rain abated just one
hour before the proceedings were due to start andeven though the dancing was cancelled, the bazaar
proved even more popular than in the past.

0
00

01

Tons

02

03

04

05

06

02

03

04

05

06

07

(2) Fifty-five employees volunteer for Higashigawa river clean-up campaign
An annual clean-up is held for the Higashi-gawa riverthat runs past the plant. The river clean-up (which
involves 400 to 500 people) is organized by the local
government and ZEON has been volunteering its help
for the last three years. Much sweat has gone into
working alongside local residents to tidy up the river.
Many thanks were received from the local residents
which helped the volunteers feel a stronger bondwith the community.

07

Amount of Emissions into
the atmosphere

1,000

01

SOX
NOX

800

Performance(3) Reduction of Air and Water Environmemtal
Burdens
1) AirInvestment in environmental enhancements to ourboiler has succeeded in reliably reducing SOx andNOx emissions. We are planning further
improvements and will strengthen management toensure that these low levels are maintained in the
future.
2) Water
Improvements in waste water treatment andelsewhere have seen a year-by-year reduction inemissions of COD and total nitrogen. An upgrade to
the waste water treatment equipment in February
2008 is expected to bring a further reduction inemissions.

Tons/Y

500,000

Management(2) Reduction of Industrial waste
Our zero-emission target for reducing landfill
disposal of industrial waste is set at 80 tons or less,this being 10% of the 1995 figure of 800 tons. Thanks
to improvements aimed at achieving this target, wehave surpassed it and succeeded in reducing thevolume down to 77.4 tons.

Emissions of PRTR applicable
Substances

Hiroshi Asahina
Corporate Officer
Plant Manager, Tokuyama Plant

Message(1) Reduction of Toxic Chemical Emissions
Equipment to burn waste gas produced by the plantin the boiler has been installed with the aim ofsignificantly reducing atmospheric emissions of toxic
substances. The plant is committed to performing
more activities to further reduce emissions.

Tons

700

Founded: 1965
Address: 2-1 Nachi, Shunan City, Yamaguchi Prefecture745-0023
Tel: 0834-21-8501 Fax: 0834-21-8793

600
400

The beginning of the financial year is a particularly
busy time for the people responsible for environmental
management. We also pay close attention to theannual trend figures in the various environmental
management reports. Fortunately, although we wererelieved that the results for 2007
were particularly good, we arealso keenly aware that we failed
to reach our energy savings
targets and therefore finding
ways to raise awareness ofenergy conservation amongst
all employees is a top priority.

0

Eiji Morita
Environmental Officer
Environment and Safety Section

Environmental Data for the Tokuyama Plant
00

01

02

03

04

05

06

07

Year
Harmful substances

Tons

180
160

Amount of total COD and total
nitrogen emissions
COD emissions

PRTR applicable
Substances

Total nitrogen emissions

140
120

Industrial waste
Atmosphericemissions

100
80

Waste water

60
40
20

Energy000

44Volunteers help with Higashi-gawa river clean-up

Scene from dance festival

200

01

02

03

04

05

06

07

Consumption (tons)
Emissions (tons)
Butadiene (tons)
Acrylonitrile (tons)
Waste produced (tons)
Disposal in landfill (tons)
CO2 (tons-C*)
SOx (tons)
NOx (tons)
Total effluent discharge (1,000m3)
COD emissions (tons)
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Unit consumption index(1990 = 100)

*Amount of carbon equivalent

00

01

02

03

04

05

06

07

406,473 361,690 432,694 398,557 398,387 395,821 380,312 407,934
20
67
126
505
495
577
23
23
17
20
24
25
46
35
17
17
0.7
0.3
0.7
10
5
4
0.8
0.7
10,211
4,042
2,916
3,095
2,709
2,676
3,650
5,151
77
216
260
469
295
401
134
81
75,651 75,632
78,253 73,577 72,834 71,615 70,352 70,790
647
756
726
864
822
733
870
674
280
310
326
411
424
388
385
315
6,331
9,822
8,904
6,725
8,361
8,619
8,080
8,293
81
138
149
109
157
110
95
91
0.6
0.8
0.7
0.6
0.3
0.8
0.8
0.5
27
53
54
39
62
54
50
47
101,560 94,449 106,249 100,057 99,088 96,729 95,281 96,933
107.7

108.3

103.5

104.7

103.8

103.0

103.9

103.6

45

Site Reports

Working to create a plant that isfriendly to the environment andthe community

Site Report

Site Report

CSR Report

The Tokuyama Plant started operations in 1965. The
plant produces butadiene using the “ZEON Processof Butadiene” (GPB), an extraction distillation
technology developed by ZEON. The butadiene isused as a raw material in the manufacture of synthetic rubber and synthetic latex that is then sold on the
global market. The plant was the first in the world to produce polymerized toner commercially and has
successfully expanded production, with further equipment to be installed to meet strong demand.
Given our close proximity to residential areas, we place considerable importance on maintaining a
dialogue with the local community and the entire workforce is committed to making Tokuyama Plant anenvironmentally friendly factory that is trusted by the community for its safe and reliable operation.

Tokuyama Plant

Environment and Safety Activities

600
400,000
500
Emissions
Consumption

400
300

300,000
200,000

200(4) Resource and energy saving
Although we are working to bring the skills of theentire workforce to bear on the objective of reducing
the average unit energy consumption rate for the2008 to 2012 period to 87% or less of the 1990 level,
we have yet to achieve this target. We are continuing
to work day and night to look at energy saving fromevery different angle, including the introduction ofrevolutionary new technology.

110

Tons

Energy unit consumption andrate index

105
100

Unit consumption index(1990 = 100)

100,000

100

95
0

0
00

01

Tons

02

03

04

05

06

07

Amount of final landfill ofIndustrial waste
Amount of landfill

700
600
500
400
300
200
100

90

Living Together with the Local
Community00(1) Summer Festival (Japanese dance)
Japanese dance is a regular event at the Tokuyama
Plant and has an established place in the community
where it is a highly valued opportunity to mix withlocal residents. Although this year's event was
threatened with heavy rain, the rain abated just one
hour before the proceedings were due to start andeven though the dancing was cancelled, the bazaar
proved even more popular than in the past.

0
00

01

Tons

02

03

04

05

06

02

03

04

05

06

07

(2) Fifty-five employees volunteer for Higashigawa river clean-up campaign
An annual clean-up is held for the Higashi-gawa riverthat runs past the plant. The river clean-up (which
involves 400 to 500 people) is organized by the local
government and ZEON has been volunteering its help
for the last three years. Much sweat has gone into
working alongside local residents to tidy up the river.
Many thanks were received from the local residents
which helped the volunteers feel a stronger bondwith the community.

07

Amount of Emissions into
the atmosphere

1,000

01

SOX
NOX

800

Performance(3) Reduction of Air and Water Environmemtal
Burdens
1) AirInvestment in environmental enhancements to ourboiler has succeeded in reliably reducing SOx andNOx emissions. We are planning further
improvements and will strengthen management toensure that these low levels are maintained in the
future.
2) Water
Improvements in waste water treatment andelsewhere have seen a year-by-year reduction inemissions of COD and total nitrogen. An upgrade to
the waste water treatment equipment in February
2008 is expected to bring a further reduction inemissions.

Tons/Y

500,000

Management(2) Reduction of Industrial waste
Our zero-emission target for reducing landfill
disposal of industrial waste is set at 80 tons or less,this being 10% of the 1995 figure of 800 tons. Thanks
to improvements aimed at achieving this target, wehave surpassed it and succeeded in reducing thevolume down to 77.4 tons.

Emissions of PRTR applicable
Substances

Hiroshi Asahina
Corporate Officer
Plant Manager, Tokuyama Plant

Message(1) Reduction of Toxic Chemical Emissions
Equipment to burn waste gas produced by the plantin the boiler has been installed with the aim ofsignificantly reducing atmospheric emissions of toxic
substances. The plant is committed to performing
more activities to further reduce emissions.

Tons

700

Founded: 1965
Address: 2-1 Nachi, Shunan City, Yamaguchi Prefecture745-0023
Tel: 0834-21-8501 Fax: 0834-21-8793

600
400

The beginning of the financial year is a particularly
busy time for the people responsible for environmental
management. We also pay close attention to theannual trend figures in the various environmental
management reports. Fortunately, although we wererelieved that the results for 2007
were particularly good, we arealso keenly aware that we failed
to reach our energy savings
targets and therefore finding
ways to raise awareness ofenergy conservation amongst
all employees is a top priority.

0

Eiji Morita
Environmental Officer
Environment and Safety Section

Environmental Data for the Tokuyama Plant
00

01

02

03

04

05

06

07

Year
Harmful substances

Tons

180
160

Amount of total COD and total
nitrogen emissions
COD emissions

PRTR applicable
Substances

Total nitrogen emissions

140
120

Industrial waste
Atmosphericemissions

100
80

Waste water

60
40
20

Energy000

44Volunteers help with Higashi-gawa river clean-up

Scene from dance festival

200

01

02

03

04

05

06

07

Consumption (tons)
Emissions (tons)
Butadiene (tons)
Acrylonitrile (tons)
Waste produced (tons)
Disposal in landfill (tons)
CO2 (tons-C*)
SOx (tons)
NOx (tons)
Total effluent discharge (1,000m3)
COD emissions (tons)
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Unit consumption index(1990 = 100)

*Amount of carbon equivalent

00

01

02

03

04

05

06

07

406,473 361,690 432,694 398,557 398,387 395,821 380,312 407,934
20
67
126
505
495
577
23
23
17
20
24
25
46
35
17
17
0.7
0.3
0.7
10
5
4
0.8
0.7
10,211
4,042
2,916
3,095
2,709
2,676
3,650
5,151
77
216
260
469
295
401
134
81
75,651 75,632
78,253 73,577 72,834 71,615 70,352 70,790
647
756
726
864
822
733
870
674
280
310
326
411
424
388
385
315
6,331
9,822
8,904
6,725
8,361
8,619
8,080
8,293
81
138
149
109
157
110
95
91
0.6
0.8
0.7
0.6
0.3
0.8
0.8
0.5
27
53
54
39
62
54
50
47
101,560 94,449 106,249 100,057 99,088 96,729 95,281 96,933
107.7

108.3

103.5

104.7

103.8

103.0

103.9

103.6

45

Site Reports

Working to create a plant that isfriendly to the environment andthe community

Site report

Site Report
CSR Report

Mizushima Plant is ZEON's flagship site andrepresents the core of our in-house technology
which is unrivaled by our competitors. It wasestablished in 1968 as a part of the Mizushima
Industrial Zone in Kurashiki City. Starting with thetechnology for our butadiene extraction facilities which has been licensed for use at 47 plants in 19
countries around the world, the plant works closely with our many customers to meet their diverse
requirements with products derived from our "C5 Fraction Total Use Business" which include opticalmaterial resins (used in LCD displays, optical disks, camera lenses, CD pickups and elsewhere), aromatic
chemicals (including jasmonic and green note chemicals), and petroleum resins (including binder for traffic
paint and adhesive tape).

Mizushima Plant

Topicsordinary waste from the Kurashiki municipality andindustrial waste from the Mizushima industrial complex.
The facility is jointly owned by 10 companies from theindustrial complex.

5Tons

Living Together with the Local
Community
The plant’s objective is to “create a plant that istrusted by the local community”. It has an active
involvement with the community, including
supporting and participating in the events ofresidents’ associations, and public activities such as
meetings to report business activities and meetings to
explain plans for new facilities. Further, the plantjoins with neighboring companies in the Mizushima
Industrial Zone to perform joint disaster planning toreassure the people living in the local community.
We served as the regional sponsor for Okayama in
the Responsible Care Local-Area Dialogue Meeting in
2007, held factory visits and walking tours with local
residents and helped in local clean-up campaigns
around the factory and in surrounding areas.
We are nurturing closer integration with the local

area through joint public-private-academic sector
initiatives such as factory tours of the Mizushima
Plant and classroom sessions extolling theimportance and fun of science for the benefit ofscience students at the Kurashiki Amagi prefectural
high school in Okayama prefecture (which isdesignated as a Super Science High School*2 under a
Ministry of Education, Culture, Sports, Science andTechnology program). These initiatives, which
continue in 2008, are designed to stimulate aninterest in science and technology among young
people.
*2 A program run by the Ministry of Education, Culture, Sports,

Science and Technology which acknowledges high schools
with a strong focus on science and math subjects. The
program is designed to identify and nurture the potential
leading scientists of the future.

Trend in butadiene emissions

Complying with environmental
standards and creating a plantthat is trusted by the community

432Integrated Production
Center - external view

1
Factory inspection
and walking tour

0
Symbol certifying
the IPC as apeople-friendly city

Integrated Production Center internal view

(1) Reduction of industrial waste
ZEON is one of the investors in Mizushima
Tons

Trend in industrial waste
sent to landfill

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
99

46

00

01

02

03

04

05

06

07

01

02

03

04

05

06

07

(3) Reduction of Air and Water Emvironmental
Burdens
Improved management of the waste water producedby the individual facilities has helped minimize load
fluctuations at the waste water treatment plant,
thereby enabling better treatment of waste water.
(4) Resource and energy saving
We are working to meet the target of reducing the
average unit energy consumption rate for the 2008 to2012 period to 87% of the 1990 level. Although thiswork only achieved a consumption rate of 93% of the1990 level in 2007, an upgrade to a large plant heatrecovery system in March 2008 is expected to show
its benefits in the 2008 result. We are planning further
reductions in unit energy consumption including
reducing steam use and working on heat recovery
strategies.
We have also switched delivery of some products
from truck to rail. This shift to a different
transportation mode is aimed at reducing the burden
on the environment through more efficienttransportation in the product delivery process. As aresult, we received a "Mode Shift Shipper ExcellenceAward".

Ryujiro Kinoshita
Environmental Officer
Environment and Safety Section

Super Science High School

Environmental Data for the Mizushima Plant
Year
Harmful substances
PRTR applicable
Substances

Industrial waste
Atmosphericemissions
Waste water

EnergyButadiene consumption (tons)
Butadiene emissions (tons)
Consumption (tons)
Emissions (tons)
Waste produced before reductions (tons)
Waste produced after reductions (tons)
Disposal in landfill (tons)
CO2 emissions (tons-C*)
SOx emissions (tons)
NOx emissions (tons)
Total effluent discharge (1,000m3)
COD emissions (tons)
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Unit consumption index(1990 = 100)

*Amount of carbon equivalent

00

01

02

03

04

05

06

07

146,879 143,583 153,919 163,521 149,435 154,510 154,899 150,281
0
0
0
0
2.4
4.7
0
0
489,028 266,725 303,967 342,931 335,458 336,308 343,930 317,673
1
2
6
1
7
23
1
1
57773 58,983
55,821 62,575 56,398 60,975 57,425
57,975
7,891
6,142
6,256
6,750
5,807
5,425
7,217
8,366
9
1,185
1,091
19
1,859
3,260
29
1,032
90,016 102,320 109,147 111,326 111,194 109,725 103,091
95,371
3
3.5
1.9
1.5
3.3
0.5
1
3
87
76
58
70
70
121
68
81
2,559
2,113
1,946
2,550
2,108
2,148
2,242
2,290
15
13
13
13
13
15
14
14
0.7
0.5
0.4
0.7
0.5
0.6
0.5
1.0
20
21
23
21
22
19
13
22
138,178 128,654 145,725 154,962 159,927 160,179 175,037 164,994
104

101

97

94

93

93

92

93

47

Site Reports

Environment and Safety Activities
The plant works to create a safe and stableworkplace by following the Plant Manager's "ABC
Safety System" (being sure to perform the basics
properly).

00

Performance

Nurturing and protecting the beautiful naturalenvironment of the Seto Inland Sea is an important
duty for our plant. Complying
with environmental standards
and making steady improvements on past performance
underlie the first steps to
winning the trust of thecommunity and this is something we intend to continue.

Management(2) Reduction of toxic chemical emissions
The plant discontinued the use of benzene in 2001 andsucceeded in achieving zero emissions of butadiene in2002 after switching to a closed processing systemwith recovery. We are dedicated to ongoingdevelopment of environmental strategies including
measures to reduce VOC emissions.

Hiroshi Takegami
Director and Corporate Officer
Plant Manager, Mizushima Plant

Message

Mizushima Plant rigorously pursues safe and reliable
production through the application of innovativetechnology and aims to be a plant that is always
trusted by the local community. As part of this effort,
the plant constructed a new Integrated Production
Center (IPC) in November 2007. In the first phase ofthis plan, we relocated approximately half of ourpreviously scattered production departments to the
IPC in April 2008 to take the load off the plant and to
standardize and systematize our operations including
the operational know-how of our experienced staff.
Also, for its ease of use by the elderly and disabled,
the Integrated Production Center was certified as a"compliant facility" under the "Kurashiki City Public
Welfare Infrastructure Regulations" in the city
building code.

Ecoworks(*1), a waste processing facility based on
resource recycling that started operation in 2005.
Since then, the volume of waste ultimately disposedof in landfill has been dramatically reduced from
1,032 tons in 2004 to only 19 tons in 2007. We also
continue to use the 3Rs (reduce, reuse and recycle) to
reduce waste further.
*1 A combined waste processing facility that handles bothFounded: 1968
Address: 2767-1 Aza niihama, Shionasu, Kojima,
Kurashiki City, Okayama Prefecture 711-8511
Tel: 086-475-0021 Fax: 086-475-1169

Site report

Site Report
CSR Report

Mizushima Plant is ZEON's flagship site andrepresents the core of our in-house technology
which is unrivaled by our competitors. It wasestablished in 1968 as a part of the Mizushima
Industrial Zone in Kurashiki City. Starting with thetechnology for our butadiene extraction facilities which has been licensed for use at 47 plants in 19
countries around the world, the plant works closely with our many customers to meet their diverse
requirements with products derived from our "C5 Fraction Total Use Business" which include opticalmaterial resins (used in LCD displays, optical disks, camera lenses, CD pickups and elsewhere), aromatic
chemicals (including jasmonic and green note chemicals), and petroleum resins (including binder for traffic
paint and adhesive tape).

Mizushima Plant

Topicsordinary waste from the Kurashiki municipality andindustrial waste from the Mizushima industrial complex.
The facility is jointly owned by 10 companies from theindustrial complex.

5Tons

Living Together with the Local
Community
The plant’s objective is to “create a plant that istrusted by the local community”. It has an active
involvement with the community, including
supporting and participating in the events ofresidents’ associations, and public activities such as
meetings to report business activities and meetings to
explain plans for new facilities. Further, the plantjoins with neighboring companies in the Mizushima
Industrial Zone to perform joint disaster planning toreassure the people living in the local community.
We served as the regional sponsor for Okayama in
the Responsible Care Local-Area Dialogue Meeting in
2007, held factory visits and walking tours with local
residents and helped in local clean-up campaigns
around the factory and in surrounding areas.
We are nurturing closer integration with the local

area through joint public-private-academic sector
initiatives such as factory tours of the Mizushima
Plant and classroom sessions extolling theimportance and fun of science for the benefit ofscience students at the Kurashiki Amagi prefectural
high school in Okayama prefecture (which isdesignated as a Super Science High School*2 under a
Ministry of Education, Culture, Sports, Science andTechnology program). These initiatives, which
continue in 2008, are designed to stimulate aninterest in science and technology among young
people.
*2 A program run by the Ministry of Education, Culture, Sports,

Science and Technology which acknowledges high schools
with a strong focus on science and math subjects. The
program is designed to identify and nurture the potential
leading scientists of the future.

Trend in butadiene emissions

Complying with environmental
standards and creating a plantthat is trusted by the community

432Integrated Production
Center - external view

1
Factory inspection
and walking tour

0
Symbol certifying
the IPC as apeople-friendly city

Integrated Production Center internal view

(1) Reduction of industrial waste
ZEON is one of the investors in Mizushima
Tons

Trend in industrial waste
sent to landfill

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
99

46

00

01

02

03

04

05

06

07

01

02

03

04

05

06

07

(3) Reduction of Air and Water Emvironmental
Burdens
Improved management of the waste water producedby the individual facilities has helped minimize load
fluctuations at the waste water treatment plant,
thereby enabling better treatment of waste water.
(4) Resource and energy saving
We are working to meet the target of reducing the
average unit energy consumption rate for the 2008 to2012 period to 87% of the 1990 level. Although thiswork only achieved a consumption rate of 93% of the1990 level in 2007, an upgrade to a large plant heatrecovery system in March 2008 is expected to show
its benefits in the 2008 result. We are planning further
reductions in unit energy consumption including
reducing steam use and working on heat recovery
strategies.
We have also switched delivery of some products
from truck to rail. This shift to a different
transportation mode is aimed at reducing the burden
on the environment through more efficienttransportation in the product delivery process. As aresult, we received a "Mode Shift Shipper ExcellenceAward".

Ryujiro Kinoshita
Environmental Officer
Environment and Safety Section

Super Science High School

Environmental Data for the Mizushima Plant
Year
Harmful substances
PRTR applicable
Substances

Industrial waste
Atmosphericemissions
Waste water

EnergyButadiene consumption (tons)
Butadiene emissions (tons)
Consumption (tons)
Emissions (tons)
Waste produced before reductions (tons)
Waste produced after reductions (tons)
Disposal in landfill (tons)
CO2 emissions (tons-C*)
SOx emissions (tons)
NOx emissions (tons)
Total effluent discharge (1,000m3)
COD emissions (tons)
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Unit consumption index(1990 = 100)

*Amount of carbon equivalent

00

01

02

03

04

05

06

07

146,879 143,583 153,919 163,521 149,435 154,510 154,899 150,281
0
0
0
0
2.4
4.7
0
0
489,028 266,725 303,967 342,931 335,458 336,308 343,930 317,673
1
2
6
1
7
23
1
1
57773 58,983
55,821 62,575 56,398 60,975 57,425
57,975
7,891
6,142
6,256
6,750
5,807
5,425
7,217
8,366
9
1,185
1,091
19
1,859
3,260
29
1,032
90,016 102,320 109,147 111,326 111,194 109,725 103,091
95,371
3
3.5
1.9
1.5
3.3
0.5
1
3
87
76
58
70
70
121
68
81
2,559
2,113
1,946
2,550
2,108
2,148
2,242
2,290
15
13
13
13
13
15
14
14
0.7
0.5
0.4
0.7
0.5
0.6
0.5
1.0
20
21
23
21
22
19
13
22
138,178 128,654 145,725 154,962 159,927 160,179 175,037 164,994
104

101

97

94

93

93

92

93

47

Site Reports

Environment and Safety Activities
The plant works to create a safe and stableworkplace by following the Plant Manager's "ABC
Safety System" (being sure to perform the basics
properly).

00

Performance

Nurturing and protecting the beautiful naturalenvironment of the Seto Inland Sea is an important
duty for our plant. Complying
with environmental standards
and making steady improvements on past performance
underlie the first steps to
winning the trust of thecommunity and this is something we intend to continue.

Management(2) Reduction of toxic chemical emissions
The plant discontinued the use of benzene in 2001 andsucceeded in achieving zero emissions of butadiene in2002 after switching to a closed processing systemwith recovery. We are dedicated to ongoingdevelopment of environmental strategies including
measures to reduce VOC emissions.

Hiroshi Takegami
Director and Corporate Officer
Plant Manager, Mizushima Plant

Message

Mizushima Plant rigorously pursues safe and reliable
production through the application of innovativetechnology and aims to be a plant that is always
trusted by the local community. As part of this effort,
the plant constructed a new Integrated Production
Center (IPC) in November 2007. In the first phase ofthis plan, we relocated approximately half of ourpreviously scattered production departments to the
IPC in April 2008 to take the load off the plant and to
standardize and systematize our operations including
the operational know-how of our experienced staff.
Also, for its ease of use by the elderly and disabled,
the Integrated Production Center was certified as a"compliant facility" under the "Kurashiki City Public
Welfare Infrastructure Regulations" in the city
building code.

Ecoworks(*1), a waste processing facility based on
resource recycling that started operation in 2005.
Since then, the volume of waste ultimately disposedof in landfill has been dramatically reduced from
1,032 tons in 2004 to only 19 tons in 2007. We also
continue to use the 3Rs (reduce, reuse and recycle) to
reduce waste further.
*1 A combined waste processing facility that handles bothFounded: 1968
Address: 2767-1 Aza niihama, Shionasu, Kojima,
Kurashiki City, Okayama Prefecture 711-8511
Tel: 086-475-0021 Fax: 086-475-1169

Affiliate Activities

Site Report

CSR Report

ZEON Kasei Co.,LtdZEON Polymix Co., Ltd

In 1981 the Manufactured Goods Division of ZEON was
made independent and established as ZEON Kasei Co., Ltd.
The company has grown steadily since then and has taken
the lead role within the ZEON group in the field of
manufactured goods.

Yoshiro Ogura
President

Environment and Safety Activities,
and Related Topics

ZEON Kasei Co., Ltd. and is a contract manufacturer for ZEON
Kasei Co., Ltd.

Activities with the Local Community
Ibaraki plant emergency response drill(occupational heath and safety)
The Ibaraki plant held a simultaneous emergency
response drill on November 26, 2007. The drill was
carried out under the instruction of the local Bando
Fire Department (Seinan Fire Fighting Corporation).
The drill allowed employees to practice using drychemical fire fighting equipment.
Following on from the previous year, this was thesecond emergency response drill to be held inconjunction with the local fire department and wehope they will continue. A drill using hoses is plannedfor 2008.
Iwai Masakado Half-Marathon (region,community)
The Iwai Half-Marathon held in Bando on November
11, 2007 included two participants from our Ibaraki
plant.
Although the day of the race was marred by rain, bothcompetitors completed the race without incident.

Gaining the trust of customers
We are responsible for putting in place theenvironmental, quality and safety systems that allow
us to deliver products that further improve customer
satisfaction based on a quality policy of "contributing tosociety by supplying manufactured products that satisfy ourcustomers through continuous
improvement".

After improvement (palettelocation specified andconstant
instructions
issued)Meeting room

Air shower

Meeting room strengthens
communication
The Kawagoe plant is overhauling its production line
and infrastructure based on the 2008 President's
strategy of "improving the work environment".
To prevent problems due to inadequate day-to-day
communications, a meeting room large enough forthe entire production department was completed inJune. Air showers have also been
installed based on environmental andhygiene considerations. The meetingroom is always kept clean and is used
extensively for internal meetings,
handover meetings, and as a place togo during breaks.

Katsunori Sato

Mr Tajima

Environment,
Safety and Quality Group,Engineering Department

CF,
Production Section
Kawagoe plant

Activities aimed at eliminating quality claims
In response to the 2008 President's strategy of "putting
systems in place to eliminate the causes of CM quality
defects", the Otsu Plant has undertaken a "3S, 3-Tei, Visibility"
program aimed at eliminating quality claims. One category ofclaims relates to contamination with impurities but the cause is
not well understood. This was due to lax management of the
production line. We started an improvement activity thatallows us to see the status of managed items at a glance andit is gradually proving its worth.
The embeddedness of the "3S, 3-Tei, Visibility" program ischecked by the monthly quality patrol and we have put
considerable effort into ensuring that we are thorough in theother two Ss (Seiketsu (hygiene)
and Shitsuke (discipline)) also. By
adopting these measures, our aim
is to upgrade the production lines
we administer and eliminate quality
claims.

Mr Takaishi
Manager,
Production Section
Otsu Plant

49

Site Reports

48* Ibaraki ZEON Kasei Co., Ltd. is a wholly owned subsidiary of••

Performance

Combined ISO9001 certification for
headquarters, plant, R&D center and Hokkaido
office (quality assurance enhancement)
ISO9001 certification
ZEON Kasei has extended the quality management
system it had previously operated at its
manufacturing site (Ibaraki plant) to its sales(headquarters and Hokkaido office) and R&D (ZEON
Manufactured Goods R&D Center) departments.
These operations were audited by an accredited
external auditor in March 2008 and received
certification in May 2008.
ZEON Kasei operates an integrated quality assurance
system that covers production, sales and engineering
and will continue to supply products that satisfy its
customers.

••

TEL.03-5208-5111 FAX.-3-5208-5290
Ibaraki Plant (Ibaraki ZEON Kasei Co., Ltd.),
Hokkaido Office
Main business Synthetic resin compounds, films, surface
emission materials, heat dissipation materials,
construction materials, packing materials anddeodorants
Locations•••••Management

Odori Haimu

ZEON Kasei Co., Ltd.
•• NameEstablished
October 1, 1981
462.55 million yen•• Capital
No.of Employees 63 (Ibaraki ZEON Kasei Co., Ltd.*: 97)
Marunouchi, Chiyoda-ku, Tokyo 100• Head office 1-6-20005(Shin Marunouchi Center Building)

Message

Retrofitted insulation using ZEON Siding®
(reducing the burden on the environment)
Because of the high cost of winter heating, homebuilders in Hokkaido are doing their utmost to
improve the Q value (heat loss coefficient) for homes
and reduce CO2 emissions.
ZEON Siding® is a plastic siding (cladding) material
produced from PVC with features that include
excellent durability and light weight during building
work. These benefits have seen the product being
widely adopted as an exterior cladding material for
retrofitted insulation where the insulation is fitted
externally (attached to the outside of the building),
not only for homes but also for small to medium
sized buildings.
The photograph shows the Odori Haimu building in
Sapporo, Hokkaido where ZEON Siding has beenused to retrofit insulation.

Company Profile

ZEON Polymix Co., Ltd. was first established as Kinki
Rubber Processing, Co., Ltd. in 1967 in order to expand into
the carbon master batch (CM) field as a part of the ZEON's
Kawagoerubber business development. In 1989 it merged with
plant
Higashi Rubber Processing Co., Ltd. and changed its nameto ZEON Polymix Co., Ltd.
The CM produced at ZEON Polymix is used widely with
Otsu plant
applications that include parts for office and industrial
equipment, especially automotive parts, and lifestyle
Makoto Yamamotoand leisure products.
President
ZEON Polymix has established a "SHEQMS strategy"
Company Profilethat covers the requirements for safety and health,environmental, and quality management systems.
Name
ZEON Polymix Co., Ltd.
This involves specific activities aimed at achieving
Established
April 7, 1967
targets based on each year's President's strategy. The
Capital
240 million yen
No.of Employees 90
slogan for the President's strategy in 2008 is "let'sHead officemake ZEON Polymix a high-quality company".
941-1 Kamiigusa, Kawajima-machi, Hikigun,
Saitama Prefecture 350-0152
Based on this slogan, specific targets have been set
TEL:049-297-0715 FAX:049-297-8451
for the entire company for short-term business
Locations
Kawagoe plant
objectives, medium-term business objectives andOtsu plant
strengthening business fundamentals respectively.
Main business Molding CM and synthetic rubber CM (semiThe following items describe the measures being
finished rubbers supplied to manufacturers of
taken based on the medium-term business objectives
auto parts and other molded and processedrubber products) Polyblend heatingof "improving the work environment" and "putting
systems in place to eliminate the causes of CM
Otsu plantquality defects".
Reduction of quality claims
The item below describes the "3S, 3-Tei, Visibility"
program at the Otsu plant aimed at eliminating quality
Establishing a workplace environment thatclaims.
makes working easy
The program uses periodic quality patrols to check
The item below describes what Kawagoe plant has
whether management is being maintained.
done to set up its production lines to provide its
employees with a workplace environment that makes
working easy. A key element was the completion of ameeting room where the people who work at theplant can gather in a single venue.

Affiliate Activities

Site Report

CSR Report

ZEON Kasei Co.,LtdZEON Polymix Co., Ltd

In 1981 the Manufactured Goods Division of ZEON was
made independent and established as ZEON Kasei Co., Ltd.
The company has grown steadily since then and has taken
the lead role within the ZEON group in the field of
manufactured goods.

Yoshiro Ogura
President

Environment and Safety Activities,
and Related Topics

ZEON Kasei Co., Ltd. and is a contract manufacturer for ZEON
Kasei Co., Ltd.

Activities with the Local Community
Ibaraki plant emergency response drill(occupational heath and safety)
The Ibaraki plant held a simultaneous emergency
response drill on November 26, 2007. The drill was
carried out under the instruction of the local Bando
Fire Department (Seinan Fire Fighting Corporation).
The drill allowed employees to practice using drychemical fire fighting equipment.
Following on from the previous year, this was thesecond emergency response drill to be held inconjunction with the local fire department and wehope they will continue. A drill using hoses is plannedfor 2008.
Iwai Masakado Half-Marathon (region,community)
The Iwai Half-Marathon held in Bando on November
11, 2007 included two participants from our Ibaraki
plant.
Although the day of the race was marred by rain, bothcompetitors completed the race without incident.

Gaining the trust of customers
We are responsible for putting in place theenvironmental, quality and safety systems that allow
us to deliver products that further improve customer
satisfaction based on a quality policy of "contributing tosociety by supplying manufactured products that satisfy ourcustomers through continuous
improvement".

After improvement (palettelocation specified andconstant
instructions
issued)Meeting room

Air shower

Meeting room strengthens
communication
The Kawagoe plant is overhauling its production line
and infrastructure based on the 2008 President's
strategy of "improving the work environment".
To prevent problems due to inadequate day-to-day
communications, a meeting room large enough forthe entire production department was completed inJune. Air showers have also been
installed based on environmental andhygiene considerations. The meetingroom is always kept clean and is used
extensively for internal meetings,
handover meetings, and as a place togo during breaks.

Katsunori Sato

Mr Tajima

Environment,
Safety and Quality Group,Engineering Department

CF,
Production Section
Kawagoe plant

Activities aimed at eliminating quality claims
In response to the 2008 President's strategy of "putting
systems in place to eliminate the causes of CM quality
defects", the Otsu Plant has undertaken a "3S, 3-Tei, Visibility"
program aimed at eliminating quality claims. One category ofclaims relates to contamination with impurities but the cause is
not well understood. This was due to lax management of the
production line. We started an improvement activity thatallows us to see the status of managed items at a glance andit is gradually proving its worth.
The embeddedness of the "3S, 3-Tei, Visibility" program ischecked by the monthly quality patrol and we have put
considerable effort into ensuring that we are thorough in theother two Ss (Seiketsu (hygiene)
and Shitsuke (discipline)) also. By
adopting these measures, our aim
is to upgrade the production lines
we administer and eliminate quality
claims.

Mr Takaishi
Manager,
Production Section
Otsu Plant

49

Site Reports

48* Ibaraki ZEON Kasei Co., Ltd. is a wholly owned subsidiary of••

Performance

Combined ISO9001 certification for
headquarters, plant, R&D center and Hokkaido
office (quality assurance enhancement)
ISO9001 certification
ZEON Kasei has extended the quality management
system it had previously operated at its
manufacturing site (Ibaraki plant) to its sales(headquarters and Hokkaido office) and R&D (ZEON
Manufactured Goods R&D Center) departments.
These operations were audited by an accredited
external auditor in March 2008 and received
certification in May 2008.
ZEON Kasei operates an integrated quality assurance
system that covers production, sales and engineering
and will continue to supply products that satisfy its
customers.

••

TEL.03-5208-5111 FAX.-3-5208-5290
Ibaraki Plant (Ibaraki ZEON Kasei Co., Ltd.),
Hokkaido Office
Main business Synthetic resin compounds, films, surface
emission materials, heat dissipation materials,
construction materials, packing materials anddeodorants
Locations•••••Management

Odori Haimu

ZEON Kasei Co., Ltd.
•• NameEstablished
October 1, 1981
462.55 million yen•• Capital
No.of Employees 63 (Ibaraki ZEON Kasei Co., Ltd.*: 97)
Marunouchi, Chiyoda-ku, Tokyo 100• Head office 1-6-20005(Shin Marunouchi Center Building)

Message

Retrofitted insulation using ZEON Siding®
(reducing the burden on the environment)
Because of the high cost of winter heating, homebuilders in Hokkaido are doing their utmost to
improve the Q value (heat loss coefficient) for homes
and reduce CO2 emissions.
ZEON Siding® is a plastic siding (cladding) material
produced from PVC with features that include
excellent durability and light weight during building
work. These benefits have seen the product being
widely adopted as an exterior cladding material for
retrofitted insulation where the insulation is fitted
externally (attached to the outside of the building),
not only for homes but also for small to medium
sized buildings.
The photograph shows the Odori Haimu building in
Sapporo, Hokkaido where ZEON Siding has beenused to retrofit insulation.

Company Profile

ZEON Polymix Co., Ltd. was first established as Kinki
Rubber Processing, Co., Ltd. in 1967 in order to expand into
the carbon master batch (CM) field as a part of the ZEON's
Kawagoerubber business development. In 1989 it merged with
plant
Higashi Rubber Processing Co., Ltd. and changed its nameto ZEON Polymix Co., Ltd.
The CM produced at ZEON Polymix is used widely with
Otsu plant
applications that include parts for office and industrial
equipment, especially automotive parts, and lifestyle
Makoto Yamamotoand leisure products.
President
ZEON Polymix has established a "SHEQMS strategy"
Company Profilethat covers the requirements for safety and health,environmental, and quality management systems.
Name
ZEON Polymix Co., Ltd.
This involves specific activities aimed at achieving
Established
April 7, 1967
targets based on each year's President's strategy. The
Capital
240 million yen
No.of Employees 90
slogan for the President's strategy in 2008 is "let'sHead officemake ZEON Polymix a high-quality company".
941-1 Kamiigusa, Kawajima-machi, Hikigun,
Saitama Prefecture 350-0152
Based on this slogan, specific targets have been set
TEL:049-297-0715 FAX:049-297-8451
for the entire company for short-term business
Locations
Kawagoe plant
objectives, medium-term business objectives andOtsu plant
strengthening business fundamentals respectively.
Main business Molding CM and synthetic rubber CM (semiThe following items describe the measures being
finished rubbers supplied to manufacturers of
taken based on the medium-term business objectives
auto parts and other molded and processedrubber products) Polyblend heatingof "improving the work environment" and "putting
systems in place to eliminate the causes of CM
Otsu plantquality defects".
Reduction of quality claims
The item below describes the "3S, 3-Tei, Visibility"
program at the Otsu plant aimed at eliminating quality
Establishing a workplace environment thatclaims.
makes working easy
The program uses periodic quality patrols to check
The item below describes what Kawagoe plant has
whether management is being maintained.
done to set up its production lines to provide its
employees with a workplace environment that makes
working easy. A key element was the completion of ameeting room where the people who work at theplant can gather in a single venue.

Affiliate Activities

Site Report

CSR Report

Optes Inc.

ZEON Chemicals Yonezawa Co., Ltd.

Optes Inc. was established in 1990 as a joint venture between ZEON
and Sekinos Co., Ltd., as a strategic processor of a cycloolefin
polymer that had been developed by ZEON. In 1997, Optes Inc.
became a wholly-owned subsidiary of ZEON. The company's
products (which include ZEONOR film®, ZEONOR® diffusion panels,
large aspheric mirrors, lenses and prisms) are derived fromadvanced technology and are highly regarded in the optics industry.

ZEON Chemicals Yonezawa Co., Ltd. was established in 1996 to
produce fine chemical products and commenced production ofsynthetic aromatic chemicals using leaf alcohol as the main raw
material. Since 1988 it has also been producing liquid compounds
for reaction injection molding that use dicyclopentadiene as theirmain raw material. Also, the opening of ZEON's new chemical
research buildings in April 2006 has lead to growth in contract
research and development work. In 2007, the company celebrated
the tenth anniversary of its founding.

Company motto"Applying our sincerity, ingenuity
and enthusiasm to make Optes aninternational company in which
every employee can take pride"••

TEL:03-3216-1793 FAX:03-3216-1777
Sano Headquarters plant
Toyama plant (Takaoka and Himi Production
Division)
Main business ZEONOR film®, ZEONOR® diffusion panels for
LCD backlights, large aspheric mirrors, partsfor medical diagnostic systems such as blood
tester cells, prisms, microlenses, and otheroptical components
Locations

Hiroshi Fujisawa
President

Company Profile

Company Profile
Optes Incorporated•• NameEstablished
April 2, 1990
400 million yen•• Capital
No.of Employees 395
Marunouchi, Chiyoda-ku, Tokyo 100• Head office 1-6-2
8246 (Shin Marunouchi Center Building)

Overview of plant

ISO activities
The company received ISO9001 and ISO14001
accreditation in June 2006 and has related activities
ongoing. Environmental activities have included
work on reducing waste drums, paper and otherrefuse.

Safety training
ZCY aims to achieve zero injuries based on a "can-do"
spirit by conducting training programs such as point
and shout training, 4R-KY training and forklift safety
training that allow work to be done more safely.

ZEON Chemicals Yonezawa Co., Ltd.
•• NameEstablished
April 26, 1996
90 million yen•• Capital
No.of Employees 37
Hachimanpara, Yonezawa City,• Head office 3-446-13
Yamagata Prefecture 992-1128•

TEL:0238-29-0055 FAX:0238-29-0053
Main business Green note aroma chemicals produced fromleaf alcohol, intermediate organic chemicals
for pharmaceuticals and agrichemicals, andliquid compounds for reaction injection
molding

Management

Environment and Safety Activities,
and Related Topics

Sano
Headquarters
plant

Consideration for the environment
The plant at the Himi Production Division establishedin 2007 was constructed based on consideration for
global warming and environmental protection fromthe design phase. The wind turbine was installed toremind all employees of the importance of energy.
The electricity it produces is put to good use.

Fire fighting drill

4RKY training

Environment and Safety Activity
TopicsLiving Together with the Local
Community
Himi Production Division participated in acommunity clean-up of the roads organized by the
local government which provided the opportunity tocontribute to the community and communicate withlocal residents.

Our

50

Sponsorship of the Yonezawa Snow Lantern
Festival
Since 1999, ZEON Chemicals Yonezawa has
supported the snow lantern festival, which is a
traditional winter event in Yonezawa. Bothemployees and their families come together every
year to build two snow lanterns. Although no snow
lanterns were built last year due to an absence ofsnow brought on by the unusually warm winter, wewere able to participate as normal this year.

products are engineered for energy
conservation from the design stage andcontribute to reducing CO2 emissions.
Atsushi Nishibe
We will continue to work at contributing
Technology Section Manager(with managerial responsibility) to the world by coming up with productsTokyo Headquartersthat are friendly to the environment.

To express our thanks to the community on the tenthanniversary of our foundation, a volunteer clean-up
campaign was organized for the vicinity of the Uesugi
Shrine.

Photograph of clean-up participants with rubbish collected

4R-KYT training (Sano plant)

Supplying distinctive productsthat are friendly to the environment

Clean-up

Participation in local volunteer clean-up
campaign

Site Reports

Optes received numerous awards for its health andsafety activities in 2007 at the All ZEON Safety
Conference. The company will continue to strive toachieve 100% yield with zero accidents and zero
injuries, while maintaining a strong emphasis on
safety, environment and quality.

Forklift safety training

We're looking after nature!
Employees andtheir families

Living amongst the natural beauty of Yonezawa
makes us particularly conscious of environmental
protection.
We are working every day with the aim of being
number one in our region for the environment andsafety.

Terunobu Morikawa

Scene from snow
lantern making

Performance

ZEONOR film
ZEONOR diffusion panels

Himi Production
Division
Toyama Plant

Message

Management creed"To make an extensive contributeto the world by producing distincNoriaki Wakamatsu tive products that are friendly tothe environment using distinctive
President
technology that is not copied from
elsewhere and that our rivals
cannot imitate"

Toyama plantTechnology Section Manager andManger of the Environment and
Safety Office51

Affiliate Activities

Site Report

CSR Report

Optes Inc.

ZEON Chemicals Yonezawa Co., Ltd.

Optes Inc. was established in 1990 as a joint venture between ZEON
and Sekinos Co., Ltd., as a strategic processor of a cycloolefin
polymer that had been developed by ZEON. In 1997, Optes Inc.
became a wholly-owned subsidiary of ZEON. The company's
products (which include ZEONOR film®, ZEONOR® diffusion panels,
large aspheric mirrors, lenses and prisms) are derived fromadvanced technology and are highly regarded in the optics industry.

ZEON Chemicals Yonezawa Co., Ltd. was established in 1996 to
produce fine chemical products and commenced production ofsynthetic aromatic chemicals using leaf alcohol as the main raw
material. Since 1988 it has also been producing liquid compounds
for reaction injection molding that use dicyclopentadiene as theirmain raw material. Also, the opening of ZEON's new chemical
research buildings in April 2006 has lead to growth in contract
research and development work. In 2007, the company celebrated
the tenth anniversary of its founding.

Company motto"Applying our sincerity, ingenuity
and enthusiasm to make Optes aninternational company in which
every employee can take pride"••

TEL:03-3216-1793 FAX:03-3216-1777
Sano Headquarters plant
Toyama plant (Takaoka and Himi Production
Division)
Main business ZEONOR film®, ZEONOR® diffusion panels for
LCD backlights, large aspheric mirrors, partsfor medical diagnostic systems such as blood
tester cells, prisms, microlenses, and otheroptical components
Locations

Hiroshi Fujisawa
President

Company Profile

Company Profile
Optes Incorporated•• NameEstablished
April 2, 1990
400 million yen•• Capital
No.of Employees 395
Marunouchi, Chiyoda-ku, Tokyo 100• Head office 1-6-2
8246 (Shin Marunouchi Center Building)

Overview of plant

ISO activities
The company received ISO9001 and ISO14001
accreditation in June 2006 and has related activities
ongoing. Environmental activities have included
work on reducing waste drums, paper and otherrefuse.

Safety training
ZCY aims to achieve zero injuries based on a "can-do"
spirit by conducting training programs such as point
and shout training, 4R-KY training and forklift safety
training that allow work to be done more safely.

ZEON Chemicals Yonezawa Co., Ltd.
•• NameEstablished
April 26, 1996
90 million yen•• Capital
No.of Employees 37
Hachimanpara, Yonezawa City,• Head office 3-446-13
Yamagata Prefecture 992-1128•

TEL:0238-29-0055 FAX:0238-29-0053
Main business Green note aroma chemicals produced fromleaf alcohol, intermediate organic chemicals
for pharmaceuticals and agrichemicals, andliquid compounds for reaction injection
molding

Management

Environment and Safety Activities,
and Related Topics

Sano
Headquarters
plant

Consideration for the environment
The plant at the Himi Production Division establishedin 2007 was constructed based on consideration for
global warming and environmental protection fromthe design phase. The wind turbine was installed toremind all employees of the importance of energy.
The electricity it produces is put to good use.

Fire fighting drill

4RKY training

Environment and Safety Activity
TopicsLiving Together with the Local
Community
Himi Production Division participated in acommunity clean-up of the roads organized by the
local government which provided the opportunity tocontribute to the community and communicate withlocal residents.

Our

50

Sponsorship of the Yonezawa Snow Lantern
Festival
Since 1999, ZEON Chemicals Yonezawa has
supported the snow lantern festival, which is a
traditional winter event in Yonezawa. Bothemployees and their families come together every
year to build two snow lanterns. Although no snow
lanterns were built last year due to an absence ofsnow brought on by the unusually warm winter, wewere able to participate as normal this year.

products are engineered for energy
conservation from the design stage andcontribute to reducing CO2 emissions.
Atsushi Nishibe
We will continue to work at contributing
Technology Section Manager(with managerial responsibility) to the world by coming up with productsTokyo Headquartersthat are friendly to the environment.

To express our thanks to the community on the tenthanniversary of our foundation, a volunteer clean-up
campaign was organized for the vicinity of the Uesugi
Shrine.

Photograph of clean-up participants with rubbish collected

4R-KYT training (Sano plant)

Supplying distinctive productsthat are friendly to the environment

Clean-up

Participation in local volunteer clean-up
campaign

Site Reports

Optes received numerous awards for its health andsafety activities in 2007 at the All ZEON Safety
Conference. The company will continue to strive toachieve 100% yield with zero accidents and zero
injuries, while maintaining a strong emphasis on
safety, environment and quality.

Forklift safety training

We're looking after nature!
Employees andtheir families

Living amongst the natural beauty of Yonezawa
makes us particularly conscious of environmental
protection.
We are working every day with the aim of being
number one in our region for the environment andsafety.

Terunobu Morikawa

Scene from snow
lantern making

Performance

ZEONOR film
ZEONOR diffusion panels

Himi Production
Division
Toyama Plant

Message

Management creed"To make an extensive contributeto the world by producing distincNoriaki Wakamatsu tive products that are friendly tothe environment using distinctive
President
technology that is not copied from
elsewhere and that our rivals
cannot imitate"

Toyama plantTechnology Section Manager andManger of the Environment and
Safety Office51

Affiliate Activities

Site Report

CSR Report

ZEON Logistical Materials Co., Ltd.

RIMTEC Corporation

ZEON Logistical Materials Co., Ltd. was previously a part of ZEON
Kasei Co., Ltd., a company formed in 1981 from what waspreviously the Manufactured Goods Division of ZEON. In 2003,
ZEON Kasei Co., Ltd. decided in turn to spin out its logisticalmaterials business and so established ZEON Logistical Materials
Co., Ltd. One of the company's main products is a returnablecontainer called "STEC®". This ground breaking logistics tool ishighly regarded in a range of industries and makes a significant
contribution to environmental protection as well as delivering
economic benefits by streamlining storage and management while
reducing the cost of packing and cargo handling.

Yamaguchi plant

RIMTEC Corporation plant

Hitoshi Ozawa••

Environmentally-friendly Products

Focusing on "creating" rather
than "making"!

52

RIMTEC Corporation•• NameEstablished
August 1, 2003
490 million yen•• Capital
No.of Employees 23
Marunouchi, Chiyoda-ku, Tokyo 100• Head office 1-6-20005 (Shin-Marunouchi Center Building)
TEL:03-5220-8581 FAX:03-5220-8584

Mizushima Plant• Locations
Main
business
Liquid compounds for reaction injection•
molding (RIM) using dicyclopentadiene as themain raw material, and components formed
from these compounds using RIM

Main applications for reaction injection
molded products
RIMTEC has launched a series of products madefrom newly developed compounds with a high levelof thermostability.

y• Cherry-blossom viewing with affiliate employees
and their families (April)• Cleaning the Takashima Harbor Road (June)• ZEON Mizushima Summer Festival (August)

Clean-up campaign

Returnable container

Shunan plantCompany Profile

We manufacture and sell collapsible
and returnable containers based on our
quality strategy of "creating STEC
products that our customers delightin using".

RIMTEC is working to develop new high-rigidity
compounds that can be used as a substitute inproducts that previously used FRP (fiberglass
reinforced plastic), a substance that is difficult torecycle.

Cherry-blossom viewing• Passed the regular ISO9001 inspection (August)• Passed the regular ISO14001 inspection (August)• Exhibit at the America Show (July)• Held molders day (November)

Product development thatputs the environment first
We strive to develop products that arefriendly to the environment. We willcontinue to work wholeheartedly tocreate new products.

Nobuyoshi Kado

Yasushi Tanaka

Production Section Manager and
Design Section Manager

R&D Center Manager

53

Site Reports

Shunan plant was established in July 2005 as a
dedicated facility for maintenance of synthetic rubber
containers. The plant aims to be a safe and reliablesupplier that coexists harmoniously with the local
community and has a strong environmental emphasis
demonstrated by its target of 100% recycling.

Resin with dicyclopentadiene as its main component
combines a strength equivalent to general-purpose
engineering plastic with the high productivity of thereaction injection molding method of production.
Components formed from this material consist
entirely of hydrocarbons which means they can beused as a clean source of heat energy because thevolume of dioxins produced when they areincinerated is very low.
The reaction injection molding technique is alsomuch cleaner than standard injection molding interms of atmospheric pollution because it eliminates
the processes from drying to re-melting.

Performance2007 FPD (Flat Panel Display) ShowZEON Logistical Materials is developing new
returnable containers and containers for PET bottles
and storage of preform (products that are pre-formed
prior to blow molding) products, and containers
based on the marketing design concepts of being (1)lightweight, (2) low-cost, (3) resource-efficient, (4)easy to use, (5) durable, (6) designed to withstandcompression and (7) safe.
The company supplies returnable containers that aredesigned to weigh 25% less than previous containers,
require fewer resources (which is reflected in theircost), and have the durability and ability to withstandcompression that make them easy to use.

Providing environmentally-friendly molding
liquid compounds and molded productsManagement

Name
ZEON Logistical Materials, Co., Ltd.
Established
July 1, 2003
Capital
100 million yen
No.of Employees 40
Head office
1-6-2 Marunouchi, Chiyoda-ku, Tokyo 1000005 (Shin-Marunouchi Center Building)
TEL 03-5208-5167 FAX 03-5208-5296
Locations
Yamaguchi plant
Shunan plant
Main business Design, production and sales of STEC box
containers and maintenance of returnablecontainer products

President

Message••••

Tatsuhiko Iwamoto

President

Company Profile
ZEON Logistical Materials was represented at the2007 FPD Show with an exhibit that focused onroller-transportable STEC® containers and promoted
the company's new product development capabilities
and the high quality of its STEC® products. The booth
received approximately 400 visitors over the threeday show.
The STEC® range is highly regarded by customers for
its resource-efficient and space-saving characteristics
that include being collapsible, returnable andstackable.

RIMTEC Corporation was formed from the merger of the RIM
Division of ZEON with Teijin Metton Co., Ltd. The company
supplies the PENTAM® and METTON® compounded fluids forreaction injection molding using dicyclopentadiene as
the main raw material.

Affiliate Activities

Site Report

CSR Report

ZEON Logistical Materials Co., Ltd.

RIMTEC Corporation

ZEON Logistical Materials Co., Ltd. was previously a part of ZEON
Kasei Co., Ltd., a company formed in 1981 from what waspreviously the Manufactured Goods Division of ZEON. In 2003,
ZEON Kasei Co., Ltd. decided in turn to spin out its logisticalmaterials business and so established ZEON Logistical Materials
Co., Ltd. One of the company's main products is a returnablecontainer called "STEC®". This ground breaking logistics tool ishighly regarded in a range of industries and makes a significant
contribution to environmental protection as well as delivering
economic benefits by streamlining storage and management while
reducing the cost of packing and cargo handling.

Yamaguchi plant

RIMTEC Corporation plant

Hitoshi Ozawa••

Environmentally-friendly Products

Focusing on "creating" rather
than "making"!

52

RIMTEC Corporation•• NameEstablished
August 1, 2003
490 million yen•• Capital
No.of Employees 23
Marunouchi, Chiyoda-ku, Tokyo 100• Head office 1-6-20005 (Shin-Marunouchi Center Building)
TEL:03-5220-8581 FAX:03-5220-8584

Mizushima Plant• Locations
Main
business
Liquid compounds for reaction injection•
molding (RIM) using dicyclopentadiene as themain raw material, and components formed
from these compounds using RIM

Main applications for reaction injection
molded products
RIMTEC has launched a series of products madefrom newly developed compounds with a high levelof thermostability.

y• Cherry-blossom viewing with affiliate employees
and their families (April)• Cleaning the Takashima Harbor Road (June)• ZEON Mizushima Summer Festival (August)

Clean-up campaign

Returnable container

Shunan plantCompany Profile

We manufacture and sell collapsible
and returnable containers based on our
quality strategy of "creating STEC
products that our customers delightin using".

RIMTEC is working to develop new high-rigidity
compounds that can be used as a substitute inproducts that previously used FRP (fiberglass
reinforced plastic), a substance that is difficult torecycle.

Cherry-blossom viewing• Passed the regular ISO9001 inspection (August)• Passed the regular ISO14001 inspection (August)• Exhibit at the America Show (July)• Held molders day (November)

Product development thatputs the environment first
We strive to develop products that arefriendly to the environment. We willcontinue to work wholeheartedly tocreate new products.

Nobuyoshi Kado

Yasushi Tanaka

Production Section Manager and
Design Section Manager

R&D Center Manager

53

Site Reports

Shunan plant was established in July 2005 as a
dedicated facility for maintenance of synthetic rubber
containers. The plant aims to be a safe and reliablesupplier that coexists harmoniously with the local
community and has a strong environmental emphasis
demonstrated by its target of 100% recycling.

Resin with dicyclopentadiene as its main component
combines a strength equivalent to general-purpose
engineering plastic with the high productivity of thereaction injection molding method of production.
Components formed from this material consist
entirely of hydrocarbons which means they can beused as a clean source of heat energy because thevolume of dioxins produced when they areincinerated is very low.
The reaction injection molding technique is alsomuch cleaner than standard injection molding interms of atmospheric pollution because it eliminates
the processes from drying to re-melting.

Performance2007 FPD (Flat Panel Display) ShowZEON Logistical Materials is developing new
returnable containers and containers for PET bottles
and storage of preform (products that are pre-formed
prior to blow molding) products, and containers
based on the marketing design concepts of being (1)lightweight, (2) low-cost, (3) resource-efficient, (4)easy to use, (5) durable, (6) designed to withstandcompression and (7) safe.
The company supplies returnable containers that aredesigned to weigh 25% less than previous containers,
require fewer resources (which is reflected in theircost), and have the durability and ability to withstandcompression that make them easy to use.

Providing environmentally-friendly molding
liquid compounds and molded productsManagement

Name
ZEON Logistical Materials, Co., Ltd.
Established
July 1, 2003
Capital
100 million yen
No.of Employees 40
Head office
1-6-2 Marunouchi, Chiyoda-ku, Tokyo 1000005 (Shin-Marunouchi Center Building)
TEL 03-5208-5167 FAX 03-5208-5296
Locations
Yamaguchi plant
Shunan plant
Main business Design, production and sales of STEC box
containers and maintenance of returnablecontainer products

President

Message••••

Tatsuhiko Iwamoto

President

Company Profile
ZEON Logistical Materials was represented at the2007 FPD Show with an exhibit that focused onroller-transportable STEC® containers and promoted
the company's new product development capabilities
and the high quality of its STEC® products. The booth
received approximately 400 visitors over the threeday show.
The STEC® range is highly regarded by customers for
its resource-efficient and space-saving characteristics
that include being collapsible, returnable andstackable.

RIMTEC Corporation was formed from the merger of the RIM
Division of ZEON with Teijin Metton Co., Ltd. The company
supplies the PENTAM® and METTON® compounded fluids forreaction injection molding using dicyclopentadiene as
the main raw material.

Affiliate Activities

Site Report

CSR Report

Tokyo Zairyo Co., Ltd.

ZEON Environmental Materials Co., Ltd.
ZEON Environmental Materials commenced operation in September 2004 and sincethen has operated as a sales company dealing with purification septic tanks and sales
and installation of related products.

Tokyo Zairyo Co., Ltd. with a corporate philosophy of "contributing to society as a
specialist trading business founded on chemicals that supplies unique functions andservices".

Hideki Seki

Muneki Sawa

President and CEO

President

Company Profile• Sales staff who use vehicles for their work attended
accident response training and received a certificate
of attendance. You never know what sort ofaccidents you will encounter.
Even if you are a bystander, it is good to know thatyou can provide assistance.
• Mutual 5S checks of sales vehicles are carried out
three times a year.
• Working together with the septic tank production
department with the motto that "without 5S, wecannot be sure of safety!", our aim is to be the bestin Japan at everything from septic tank assembly
through to sales and installation.

5S is the basis ofeverything we do!
Working together with the septictank production department withthe motto that "without 5S, wecannot be sure of safety!", ouraim is to be the best in Japan at
everything from septic tankassembly through to sales andinstallation.

Norikazu Tsuboi
Administration Manager

TEL:03-5219-2171 FAX:03-5219-2201

and Nagoya Branch,Osaka Branch,Okayama• Branches
offices
OfficeRepresentative Office Vietnam Representative Office• Subsidiaries Tokyo Zairyo (U.S.A.) Inc.
•Tokyo Zairyo (Shanghai) Co., Ltd. and 3other offices in China
Tokyo Zairyo (Thailand) Co., Ltd. and 3other offices in South East Asia
Main business Chemicals trading

Encouraging Compliance with
Regulations•

As a trading company that deals in chemicals, Tokyo
Zairyo has a responsibility to comply with internaland external rules relating to chemical substances,and our environmental and technical section inparticular is working to strengthen our compliancesystems. Activities in 2007 included the following.

(3) Ongoing employee training is conducted. Training
in 2007 covered MSDSs, export trade control
regulations, and REACH (new EU rules on
chemicals).

(1) A consultation procedure for regulatory matters
was established to ensure exception-freecompliance with regulations. Any employee may
submit an enquiry and obtain advice from theenvironmental and technical section. The system
is set up so that all steps from submitting theenquiry through to the results of the actions takenby the employee are recorded in a database andput to use. After the system entered service inApril 2007, a total of 142 enquiries were
processed in the period up to March 2008. Of
these, more than 60% related to new export
business. The environmental and technicalsection checked the internal and external rules
relevant to each enquiry and advised on whether
the transaction could go ahead and what
procedures needed to be followed.
(2) To establish a self-managed security export control program, we put in place procedures forchecking export trade control rules in accordancewith guidance from the Ministry of Economy,
Trade and Industry. This procedure links in withthe regulatory enquiry scheme and automaticallystores an export trade review form that records
the result of double-checking by the person
responsible for the transaction and theenvironmental and technical section.

MSDS training session

Gaining the trust of customers
The Environmental and Technical Section has theimportant responsibility of supporting the commercial
staff and providing consultation on regulations andcustomers' green procurement requirements. My hopeis that customers will besatisfied with our products
and be able to use them withconfidence.

Minoru Ishiguro
Manager, Environmental andTechnical Section

55

Site Reports

54• It is said that producing one ton of grain requires
2,000 tons of water.
Our aim is to build a society where water isrecycled and that enjoys a rich aquatic environment
through the use of septic tanks.

Tokyo Zairyo Co., Ltd.
•• NameEstablished
December 1947
227.6 million yen• Capital
No.
of
Employees• Head Office 142
1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100•
0005 (Shin Marunouchi Center Building)

Performance

Mutual 5S checks
Neighborhood clean-up
campaign••(Inside ZEON’s No. 2 Mizushima Plant)
TEL:086-470-3711 FAX:086-470-3722
Fukushima,Yonezawa,Osaka,Wakayama,Kura
Officesshiki,Okayama,Shikoku,Yamaguchi,Fukuoka,
Kagoshima,
Main business Purification septic tanks

Tokyo Zairyo received ISO14001 certification on
December 1 2006 and during 2007 combined its
environmental management system with its quality
management system (ISO9001 certification wasreceived on October 1 2004). As a result of having
established the pioneering and marketing ofenvironmentally conscious products as an importantenvironmental objective in its integrated
management system and of having rolled out a totalof 18 sales themes across its commercial
departments, the company increased the proportionof environmentally conscious products in the 2007
financial year to 7.8%, up from 6.3% in the previous
year.

Company Profile

Management• We invited local residents to a plant visit organizedby ZEON's Mizushima Plant where they wereshown a cut-away model of a septic tank and wewere able to promote the importance of water inthe environment.
• We joined forces with ZEON's Mizushima Plant toparticipate in a local clean-up campaign.
• Three employees participated in the Kojima Lake
Catchment Clean-up Project held each September• We exhibited our Eco-Blower septic tank at GreenDay 2008 in our role as a local company. The EcoBlower septic tank features low power
consumption and CO2 emissions as well as afunction to remove nitrogen. Green Day 2008 was
the third such event to be held and its main themewas "considering the forests, waters and livelihoodof the Takahashi River catchment area". The event
was run by an organizing committee and jointly
sponsored by the Ministry of Land, Infrastructure,
Transport and Tourism, Okayama Prefecture, thePrefectural Residents
Office, and various
towns.

ZEON Environmental Materials Co., Ltd.
•• NameEstablished
September 1, 2004
95 million yen•• Capital
No.of Employees 27
Aza Niihama, Shionasu, Kojima,• Head office 2767-22
Kurashiki City, Okayama Prefecture 711-0934

Environmental Protection

Message• Despite its name, the Earth is often described aswater world and currently faces major
environmental problems. The proportion of theworld's water that is available for use by people isonly 0.01%. We are contributing to protecting andimproving the world's limited water resources bymarketing and installing our "PENTAM®" purification septic tanks to households.
• Purification septic tanks are an appropriate productfor a society based on recycling because they workby purifying toilet and other waste water from thehome and then discharging it back into theenvironment.
• The objective is to recycle the earth's water,
maintain flows in river systems and restore thenatural environment by returning the processedwater to the environment.
* Fireflies are slowly returning to the built-up areasof Kurashiki City.

Affiliate Activities

Site Report

CSR Report

Tokyo Zairyo Co., Ltd.

ZEON Environmental Materials Co., Ltd.
ZEON Environmental Materials commenced operation in September 2004 and sincethen has operated as a sales company dealing with purification septic tanks and sales
and installation of related products.

Tokyo Zairyo Co., Ltd. with a corporate philosophy of "contributing to society as a
specialist trading business founded on chemicals that supplies unique functions andservices".

Hideki Seki

Muneki Sawa

President and CEO

President

Company Profile• Sales staff who use vehicles for their work attended
accident response training and received a certificate
of attendance. You never know what sort ofaccidents you will encounter.
Even if you are a bystander, it is good to know thatyou can provide assistance.
• Mutual 5S checks of sales vehicles are carried out
three times a year.
• Working together with the septic tank production
department with the motto that "without 5S, wecannot be sure of safety!", our aim is to be the bestin Japan at everything from septic tank assembly
through to sales and installation.

5S is the basis ofeverything we do!
Working together with the septictank production department withthe motto that "without 5S, wecannot be sure of safety!", ouraim is to be the best in Japan at
everything from septic tankassembly through to sales andinstallation.

Norikazu Tsuboi
Administration Manager

TEL:03-5219-2171 FAX:03-5219-2201

and Nagoya Branch,Osaka Branch,Okayama• Branches
offices
OfficeRepresentative Office Vietnam Representative Office• Subsidiaries Tokyo Zairyo (U.S.A.) Inc.
•Tokyo Zairyo (Shanghai) Co., Ltd. and 3other offices in China
Tokyo Zairyo (Thailand) Co., Ltd. and 3other offices in South East Asia
Main business Chemicals trading

Encouraging Compliance with
Regulations•

As a trading company that deals in chemicals, Tokyo
Zairyo has a responsibility to comply with internaland external rules relating to chemical substances,and our environmental and technical section inparticular is working to strengthen our compliancesystems. Activities in 2007 included the following.

(3) Ongoing employee training is conducted. Training
in 2007 covered MSDSs, export trade control
regulations, and REACH (new EU rules on
chemicals).

(1) A consultation procedure for regulatory matters
was established to ensure exception-freecompliance with regulations. Any employee may
submit an enquiry and obtain advice from theenvironmental and technical section. The system
is set up so that all steps from submitting theenquiry through to the results of the actions takenby the employee are recorded in a database andput to use. After the system entered service inApril 2007, a total of 142 enquiries were
processed in the period up to March 2008. Of
these, more than 60% related to new export
business. The environmental and technicalsection checked the internal and external rules
relevant to each enquiry and advised on whether
the transaction could go ahead and what
procedures needed to be followed.
(2) To establish a self-managed security export control program, we put in place procedures forchecking export trade control rules in accordancewith guidance from the Ministry of Economy,
Trade and Industry. This procedure links in withthe regulatory enquiry scheme and automaticallystores an export trade review form that records
the result of double-checking by the person
responsible for the transaction and theenvironmental and technical section.

MSDS training session

Gaining the trust of customers
The Environmental and Technical Section has theimportant responsibility of supporting the commercial
staff and providing consultation on regulations andcustomers' green procurement requirements. My hopeis that customers will besatisfied with our products
and be able to use them withconfidence.

Minoru Ishiguro
Manager, Environmental andTechnical Section

55

Site Reports

54• It is said that producing one ton of grain requires
2,000 tons of water.
Our aim is to build a society where water isrecycled and that enjoys a rich aquatic environment
through the use of septic tanks.

Tokyo Zairyo Co., Ltd.
•• NameEstablished
December 1947
227.6 million yen• Capital
No.
of
Employees• Head Office 142
1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100•
0005 (Shin Marunouchi Center Building)

Performance

Mutual 5S checks
Neighborhood clean-up
campaign••(Inside ZEON’s No. 2 Mizushima Plant)
TEL:086-470-3711 FAX:086-470-3722
Fukushima,Yonezawa,Osaka,Wakayama,Kura
Officesshiki,Okayama,Shikoku,Yamaguchi,Fukuoka,
Kagoshima,
Main business Purification septic tanks

Tokyo Zairyo received ISO14001 certification on
December 1 2006 and during 2007 combined its
environmental management system with its quality
management system (ISO9001 certification wasreceived on October 1 2004). As a result of having
established the pioneering and marketing ofenvironmentally conscious products as an importantenvironmental objective in its integrated
management system and of having rolled out a totalof 18 sales themes across its commercial
departments, the company increased the proportionof environmentally conscious products in the 2007
financial year to 7.8%, up from 6.3% in the previous
year.

Company Profile

Management• We invited local residents to a plant visit organizedby ZEON's Mizushima Plant where they wereshown a cut-away model of a septic tank and wewere able to promote the importance of water inthe environment.
• We joined forces with ZEON's Mizushima Plant toparticipate in a local clean-up campaign.
• Three employees participated in the Kojima Lake
Catchment Clean-up Project held each September• We exhibited our Eco-Blower septic tank at GreenDay 2008 in our role as a local company. The EcoBlower septic tank features low power
consumption and CO2 emissions as well as afunction to remove nitrogen. Green Day 2008 was
the third such event to be held and its main themewas "considering the forests, waters and livelihoodof the Takahashi River catchment area". The event
was run by an organizing committee and jointly
sponsored by the Ministry of Land, Infrastructure,
Transport and Tourism, Okayama Prefecture, thePrefectural Residents
Office, and various
towns.

ZEON Environmental Materials Co., Ltd.
•• NameEstablished
September 1, 2004
95 million yen•• Capital
No.of Employees 27
Aza Niihama, Shionasu, Kojima,• Head office 2767-22
Kurashiki City, Okayama Prefecture 711-0934

Environmental Protection

Message• Despite its name, the Earth is often described aswater world and currently faces major
environmental problems. The proportion of theworld's water that is available for use by people isonly 0.01%. We are contributing to protecting andimproving the world's limited water resources bymarketing and installing our "PENTAM®" purification septic tanks to households.
• Purification septic tanks are an appropriate productfor a society based on recycling because they workby purifying toilet and other waste water from thehome and then discharging it back into theenvironment.
• The objective is to recycle the earth's water,
maintain flows in river systems and restore thenatural environment by returning the processedwater to the environment.
* Fireflies are slowly returning to the built-up areasof Kurashiki City.

Affiliate Activities

Site Report

CSR Report

ZEON Medical Co., Ltd.

ZEON Yamaguchi Co., Ltd.

ZEON Medical Co., Ltd. was established to take over the medical
business of ZEON in 1989 and in the following year completed a
production plant at Takaoka City in Toyama Prefecture. Since
then, the company has supported medical facilities in Japan as adomestic manufacturer, primarily of products for the circulatoryand digestive systems. The company combines development,
manufacturing and sales to ensure it can deliver safe and highquality products that can be used with confidence by the doctors,
technicians and nurses who provide medical care to preserve thehealth of their patients.

ZEON Yamaguchi was established in October 1992 as aregional enterprise with two divisions that handledconstruction and analytical work respectively. In March 2008,
the logistics and shipping business based at the Tokuyama
Plant site was merged with our logistics department to create
the new ZEON Yamaguchi. The company will continue tocontribute to society as a member of the ZEON group basedon these three business divisions.
Kiyoshi Hashimoto

Takaoka Plant and R&D Center

Kei ItoPredient

Predient

Environmental Protection

Company Profile

Company Profile

Reducing the burden on the environment

NPS activities••

TEL:03-3578-7727 FAX:03-3578-7751
LocationsTakaoka Plant
Main business Catheters

principles in a way that also leads to personal growth.
Thanks to the adoption of these measures, thecompany received a commendation award fromwithin the ZEON group last year and is working hardon further improvement activities.

ZEON Yamaguchi Co., Ltd.
•• NameEstablished
October 1, 1992
50 million yen•• Capital
No.of Employees 88
Nachi, Shunan City, Yamaguchi Prefecture• Head office 2-1
745-0023••(Inside the ZEON Tokuyama Plant site)
TEL0834-21-8482 FAX0834-21-8663
Hagi City,Yamaguchi City,
Locations
Main business Construction,Analysis,Logistics,

Activities to support the local environment
Together with the ZEON Tokuyama Plant, employees
volunteered to be part of the clean-up campaign for
the Higashi-gawa river that runs near the plant.
Another activity that took advantage of thecompany's analytic capabilities to support the local
environment was to subsidize the cost of testinghousehold drinking water taken from wells in eastern
Yamaguchi Prefecture. This program covers morethan 1,500 tests annually and we believe it has earned
the trust of the local community.

Activities aimed at recycling

CO2 reduction activities
NPS instruction
meeting (2)NPS instruction
meeting (1)Working together and supporting each other!

Akemi Egashira

56

Participation in the Fourth Shunan City
Relay Race
We participated in the general high school students
section of a race run on November 23 starting andfinishing at the Shunan City athletics stadium.
Although coming in 32nd out of 34 teams was not a
great result, the sash was passed successfully fromrunner to runner and everyone enjoyed themselves
very much at the after match function.

Contributing even more
to society

ZEON Medical contributes to society bysupplying medical devices. Nothing makes
me more happy than to think that, by
helping other staff who work in the
manufacturing and commercial parts of thebusiness, I too am helping contribute tosociety.
Human Resources andAdministration Group
Business Planning Department

The logistics division is investigating changing all of
the lifter cars used on site from diesel to battery
power. The company is also investigating reducing
the frequency of freight movements by utilizing its
factory warehouse operations and by shortening the
distance of track freight movements to adjacent
warehouses as a way of reducing CO2 emissions.

Handing over ofdrinking water
samples

NPS instruction meeting (3)We carry out activities to earn ourcustomers trust through our technicalstrengths with the aim of improving
customer satisfaction in terms of
quality, delivery and cost.

Akio Oda
Administration Manager

The end at last!

Pass the sash!

57

Site Reports

ZEON Yamaguchi's building division sorts reusable
materials such as asphalt, timber and concrete shells
so that they can be recovered by designatedoperators. Similarly, the analytic division returns
empty reagent bottles that were previously treated aswaste to their manufacturers for recycling.

Performance

Corporate Governnace
As part of an program amongst all companies in the
ZEON group to implement internal controls, ZEON
Medical has formalized its rules covering basic
business activities and similar.

Wide range of environmental support activities
for customers
ZEON Yamaguchi's analytic business supports theenvironmental activities of ZEON's Tokuyama Plant
by analyzing the waste water and waste gas from theboiler and other parts of the plant, and by performing
soil analysis for on-site building work. Externally, thecompany supports the environmental activities ofgovernment and local
businesses and helps
them reduce environmental impacts. This
includes being commissioned by national or
local government toundertake environmental
monitoring of building
work, including noise
Survey of sea water quality
and vibration testing andtesting the water quality of lakes, wetlands and theocean. The company also performs analysis andmeasurement of air, odors, water, soil, noise,
vibration and other environmental factors for thebusiness activities of local companies.

Management

The company belongs to the NPS (New Product
System) association derived from Toyota production
methods and became a full member in November oflast year. Instruction meetings are held in the planteach month to improve production practices basedon the principle of "improving the efficiency ofoperation" by "eliminating all waste".
The three basic principles of improvement through
NPS are: (1) Define standards (ways of distinguishing
between what is right and wrong), (2) Organize theflow (coordinate timings), and (3) Establish standard
procedures (standardize work practices). The aim ofthese principles is to reach the "desired outcome".
The NPS concept is to make improvements bymaking problems visible and applying the PDCA
cycle relentlessly to all processes as part of day-today work through rigorous adherence to these

ZEON Medical Co., Ltd.
•• NameEstablishedMay 1, 1989
452 million yen (as of end March 2008)•• Capital
No.of Employees 110
Shiba Koen, Minato-ku, Tokyo 105-0011• Head office 2-4-1(7th Floor, Shiba Park Building B)

Message

Energy conservation trend charts are used to track
monthly electricity usage at the plant as part ofefforts to save energy. The volume (by weight) ofwaste from the plant is also tracked by month to
reduce the amount produced.

Head officeAffiliate Activities

Site Report

CSR Report

ZEON Medical Co., Ltd.

ZEON Yamaguchi Co., Ltd.

ZEON Medical Co., Ltd. was established to take over the medical
business of ZEON in 1989 and in the following year completed a
production plant at Takaoka City in Toyama Prefecture. Since
then, the company has supported medical facilities in Japan as adomestic manufacturer, primarily of products for the circulatoryand digestive systems. The company combines development,
manufacturing and sales to ensure it can deliver safe and highquality products that can be used with confidence by the doctors,
technicians and nurses who provide medical care to preserve thehealth of their patients.

ZEON Yamaguchi was established in October 1992 as aregional enterprise with two divisions that handledconstruction and analytical work respectively. In March 2008,
the logistics and shipping business based at the Tokuyama
Plant site was merged with our logistics department to create
the new ZEON Yamaguchi. The company will continue tocontribute to society as a member of the ZEON group basedon these three business divisions.
Kiyoshi Hashimoto

Takaoka Plant and R&D Center

Kei ItoPredient

Predient

Environmental Protection

Company Profile

Company Profile

Reducing the burden on the environment

NPS activities••

TEL:03-3578-7727 FAX:03-3578-7751
LocationsTakaoka Plant
Main business Catheters

principles in a way that also leads to personal growth.
Thanks to the adoption of these measures, thecompany received a commendation award fromwithin the ZEON group last year and is working hardon further improvement activities.

ZEON Yamaguchi Co., Ltd.
•• NameEstablished
October 1, 1992
50 million yen•• Capital
No.of Employees 88
Nachi, Shunan City, Yamaguchi Prefecture• Head office 2-1
745-0023••(Inside the ZEON Tokuyama Plant site)
TEL0834-21-8482 FAX0834-21-8663
Hagi City,Yamaguchi City,
Locations
Main business Construction,Analysis,Logistics,

Activities to support the local environment
Together with the ZEON Tokuyama Plant, employees
volunteered to be part of the clean-up campaign for
the Higashi-gawa river that runs near the plant.
Another activity that took advantage of thecompany's analytic capabilities to support the local
environment was to subsidize the cost of testinghousehold drinking water taken from wells in eastern
Yamaguchi Prefecture. This program covers morethan 1,500 tests annually and we believe it has earned
the trust of the local community.

Activities aimed at recycling

CO2 reduction activities
NPS instruction
meeting (2)NPS instruction
meeting (1)Working together and supporting each other!

Akemi Egashira

56

Participation in the Fourth Shunan City
Relay Race
We participated in the general high school students
section of a race run on November 23 starting andfinishing at the Shunan City athletics stadium.
Although coming in 32nd out of 34 teams was not a
great result, the sash was passed successfully fromrunner to runner and everyone enjoyed themselves
very much at the after match function.

Contributing even more
to society

ZEON Medical contributes to society bysupplying medical devices. Nothing makes
me more happy than to think that, by
helping other staff who work in the
manufacturing and commercial parts of thebusiness, I too am helping contribute tosociety.
Human Resources andAdministration Group
Business Planning Department

The logistics division is investigating changing all of
the lifter cars used on site from diesel to battery
power. The company is also investigating reducing
the frequency of freight movements by utilizing its
factory warehouse operations and by shortening the
distance of track freight movements to adjacent
warehouses as a way of reducing CO2 emissions.

Handing over ofdrinking water
samples

NPS instruction meeting (3)We carry out activities to earn ourcustomers trust through our technicalstrengths with the aim of improving
customer satisfaction in terms of
quality, delivery and cost.

Akio Oda
Administration Manager

The end at last!

Pass the sash!

57

Site Reports

ZEON Yamaguchi's building division sorts reusable
materials such as asphalt, timber and concrete shells
so that they can be recovered by designatedoperators. Similarly, the analytic division returns
empty reagent bottles that were previously treated aswaste to their manufacturers for recycling.

Performance

Corporate Governnace
As part of an program amongst all companies in the
ZEON group to implement internal controls, ZEON
Medical has formalized its rules covering basic
business activities and similar.

Wide range of environmental support activities
for customers
ZEON Yamaguchi's analytic business supports theenvironmental activities of ZEON's Tokuyama Plant
by analyzing the waste water and waste gas from theboiler and other parts of the plant, and by performing
soil analysis for on-site building work. Externally, thecompany supports the environmental activities ofgovernment and local
businesses and helps
them reduce environmental impacts. This
includes being commissioned by national or
local government toundertake environmental
monitoring of building
work, including noise
Survey of sea water quality
and vibration testing andtesting the water quality of lakes, wetlands and theocean. The company also performs analysis andmeasurement of air, odors, water, soil, noise,
vibration and other environmental factors for thebusiness activities of local companies.

Management

The company belongs to the NPS (New Product
System) association derived from Toyota production
methods and became a full member in November oflast year. Instruction meetings are held in the planteach month to improve production practices basedon the principle of "improving the efficiency ofoperation" by "eliminating all waste".
The three basic principles of improvement through
NPS are: (1) Define standards (ways of distinguishing
between what is right and wrong), (2) Organize theflow (coordinate timings), and (3) Establish standard
procedures (standardize work practices). The aim ofthese principles is to reach the "desired outcome".
The NPS concept is to make improvements bymaking problems visible and applying the PDCA
cycle relentlessly to all processes as part of day-today work through rigorous adherence to these

ZEON Medical Co., Ltd.
•• NameEstablishedMay 1, 1989
452 million yen (as of end March 2008)•• Capital
No.of Employees 110
Shiba Koen, Minato-ku, Tokyo 105-0011• Head office 2-4-1(7th Floor, Shiba Park Building B)

Message

Energy conservation trend charts are used to track
monthly electricity usage at the plant as part ofefforts to save energy. The volume (by weight) ofwaste from the plant is also tracked by month to
reduce the amount produced.

Head officeAffiliate Activities

Site Report

CSR Report

ZEON North Co., Ltd.

Environmental Data

ZEON North was established as a subsidiary of ZEON in
April 1972. In July 2003, it merged with Daisan Kosan, anaffiliated company, and the ZEON Takaoka Analysis
Center, a ZEON subsidiary, to extend its operations tocover product sales, engineering, machinery sales to thealuminum industry, and environmental analysis
businesses. The company runs a distinctive business thatutilizes the technologies and personal connections built up
over time, along with the advantages of its Hokuriku(northern) location.

* Total amount of discharges to air, water and soil
* * Amount of carbon equivalent

Machinery and can production site of
No. 1 Engineering Department

Hideki Yamanaka PredientCompany Profile(2) Acting as a certified environmental measurement
agency under the weights and measures law, thecompany performs survey and analysis work on•

local environmental problems (effect of toxic
substances and other contaminants).

Molten aluminum supply Single-melt operation(Saves energy and reduces CO2 emissions)

Scrap

Melting

Transfer to ladle whilestill in molten state• Possible emergencies or accidents that have thepotential to harm the environment are identified
and an annual emergency response exercise is
held.

ZEON Polymix Co., Ltd. Otsu Plant 2003 2004 2005 2006 2007

ZEON Medical Co., Ltd.

Number of substances
6
6
6
6
7
PRTR
applicable Consumption (Tons)
164 171
262 214 161
substances
Amount of emitted (Tons)*
0
0
0
0
0
139
144
186
216
Amountproduced(Tons)
190
Industrial
waste
111
118
120 121182
Amount sent to landfill (Tons)
682 704
CO2 emissions (tons-C)**723 723 706
Energy consumption (crude oil equivalent, kl) 1,602 1,618 1,604 1,579 1,634

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

ZEON Polymix Co., Ltd. Kawagoe Plant 2003 2004 2005 2006 2007

RIMTEC Corporation

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

6
129
0
102
0
320
743

5
74
0
102
62
242
536

6
50
0
121
70
236
534

6
53
0
129
84
247
567

6
62
0
150
93
271
571

2003 2004 2005 2006 2007
1
0.9
0.8
8
8
250
508

1
1.1
1.0
7
7
232
471

1
0.8
0.8
8
7
204
407

1
1.1
1.1
7
7
198
386

1
1.0
1.0
2
2
212
423

2003 2004 2005 2006 2007

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

0
0
0
132
1
182
407

0
0
0
282
62
330
598

0
0
0
108
0
212
486

0
0
0
263
150
160
366

2003 2004 2005 2006 2007

Optes Inc. Sano Headquarters Plant 2003 2004 2005 2006 2007

ZEON North Co., Ltd.

Number of substances
1
1
1
0
1
PRTR
applicable Consumption (Tons)
0
0
0
0
0
substances
Amount of emitted (Tons)*
0
0
0
0
0
112
52
39
25
Amountproduced(Tons)
178
Industrial
waste
28
25
16
10
25
Amount sent to landfill (Tons)
570 414
CO2 emissions (tons-C)**660 580 570
Energy consumption (crude oil equivalent, kl) 1,522 1,352 1,314 1,315 1,020

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

ZEON Chemicals Yonezawa Co., Ltd. 2003 2004 2005 2006 2007

ZEON Yamaguchi Co., Ltd.

2003 2004 2005 2006 2007

Number of substances
0
0
0
0
0
PRTR
applicable Consumption (Tons)
0
0
0
0
0
substances
Amount of emitted (Tons)*
0
0
0
0
0
830
533 997 1,981 824
Industrial Amount produced (Tons)
waste
0
0
0
0
259
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
440 779 1,117 1,668 2,102
Energy consumption (crude oil equivalent, kl) 1,613 2,856 4,095 6,118 7,708

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

40
0
0
110
0
2
5

0
0
0
67
63
140
81

40
0
0
364
33
2
5

0
0
0
28
27
146
85

40
0
0
97
8
2
5

0
0
0
40
39
138
81

40
0
0
141
7
2
5

0
0
0
45
45
137
80

40
0
0
62
5
2
5

ZEON Logistical Materials Co., Ltd. 2003 2004 2005 2006 2007

This is the first time we haveappeared in this report
I hope that everyone will takeadvantage of this opportunity to learn a
bit more about our approach to CSR.
Our web site was upgraded in April
2008. Pleasetake a look.

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

4
20
0
207
4
210
366

4
25
0
258
8
273
479

4
24
0
259
7
303
530

4
22
0
271
5
387
674

4
18
0
194
9
355
623

Akihiro Fujita
CSR, Safety, andAdministration
Department58

http://www.zeonnorth.co.jp/

59

Site Reports• We participated in a local beatification
program along with ZEON's Takaoka
Plant.
• We participate every year in a fire fighting
drill organized by the Takaoka fire department.

Number of substances
1
1
1
1
1
PRTR
applicable Consumption (Tons)
2.2
1.1
0.6
0.9
1.4
substances
Amount of emitted (Tons)*
1.1
0.6
0.3
0.5
0.7
16
6
77
76
54
Industrial Amount produced (Tons)
waste
12
0
0
0
53
Amount sent to landfill (Tons)
44
52
47
51
CO2 emissions (tons-C)**
33
Energy consumption (crude oil equivalent, kl) 70.97 95.39 109.0 102.033 110.302

Performance

Transport by track

Aluminumproduct
forming
machineNumber of substances
3
3
2
3
5
PRTR
applicable Consumption (Tons)
114
88 100237 179
substances
Amount of emitted (Tons)*
16
13
7
6
30
410 387 426 1,057 611
Industrial Amount produced (Tons)
waste
61
62
190 198
322
Amount sent to landfill (Tons)
931 910
CO2 emissions (tons-C)**
1,116 725 935
Energy consumption (crude oil equivalent, kl) 2,470 2,015 2,382 2,334 1,866

Management(1) Approximately 90% waste heat recovery is achieved
using a low NOx regeneration burner.
(2) The combustion air absorbs heat from the waste gas
and is preheated in a thermal accumulator prior tobeing supplied to the burner.
(3) Energy is saved by supplying the aluminum to theuser already melted in a ladle.
(4) The siphon-based molten aluminum supply system
reduces CO2 emissions and delivers reliable quality
and safe operation.

••
••
•

Name
ZEON North Co., Ltd.
Established
April 12, 1972
Capital
100 million yen
No.of Employees 160
Head office
351 Ejiri, Takaoka, Toyama Prefecture 9330062
TEL:0766-25-1111 FAX:0766-25-1114
Main business Plant and equipment, construction equipment,
design of industrial and environmental
machinery, industrial materials, materials(synthetic resins, etc.), sales of civilengineering materials and petroleum,environmental measurement certification, work
environment measurement, and various typesof measurement, analysis and survey work.

ZEON Logistical Materials Co., Ltd. 2003 2004 2005 2006 2007

Message(1) The company designs, manufactures, and markets
aluminum melting furnace and molten metal
supply equipment that uses an environmentallyconscious energy-saving burner system.

ZEON Kasei Co., Ltd. Ibaraki Plant 2003 2004 2005 2006 2007

Affiliate Activities

Site Report

CSR Report

ZEON North Co., Ltd.

Environmental Data

ZEON North was established as a subsidiary of ZEON in
April 1972. In July 2003, it merged with Daisan Kosan, anaffiliated company, and the ZEON Takaoka Analysis
Center, a ZEON subsidiary, to extend its operations tocover product sales, engineering, machinery sales to thealuminum industry, and environmental analysis
businesses. The company runs a distinctive business thatutilizes the technologies and personal connections built up
over time, along with the advantages of its Hokuriku(northern) location.

* Total amount of discharges to air, water and soil
* * Amount of carbon equivalent

Machinery and can production site of
No. 1 Engineering Department

Hideki Yamanaka PredientCompany Profile(2) Acting as a certified environmental measurement
agency under the weights and measures law, thecompany performs survey and analysis work on•

local environmental problems (effect of toxic
substances and other contaminants).

Molten aluminum supply Single-melt operation(Saves energy and reduces CO2 emissions)

Scrap

Melting

Transfer to ladle whilestill in molten state• Possible emergencies or accidents that have thepotential to harm the environment are identified
and an annual emergency response exercise is
held.

ZEON Polymix Co., Ltd. Otsu Plant 2003 2004 2005 2006 2007

ZEON Medical Co., Ltd.

Number of substances
6
6
6
6
7
PRTR
applicable Consumption (Tons)
164 171
262 214 161
substances
Amount of emitted (Tons)*
0
0
0
0
0
139
144
186
216
Amountproduced(Tons)
190
Industrial
waste
111
118
120 121182
Amount sent to landfill (Tons)
682 704
CO2 emissions (tons-C)**723 723 706
Energy consumption (crude oil equivalent, kl) 1,602 1,618 1,604 1,579 1,634

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

ZEON Polymix Co., Ltd. Kawagoe Plant 2003 2004 2005 2006 2007

RIMTEC Corporation

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

6
129
0
102
0
320
743

5
74
0
102
62
242
536

6
50
0
121
70
236
534

6
53
0
129
84
247
567

6
62
0
150
93
271
571

2003 2004 2005 2006 2007
1
0.9
0.8
8
8
250
508

1
1.1
1.0
7
7
232
471

1
0.8
0.8
8
7
204
407

1
1.1
1.1
7
7
198
386

1
1.0
1.0
2
2
212
423

2003 2004 2005 2006 2007

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

0
0
0
132
1
182
407

0
0
0
282
62
330
598

0
0
0
108
0
212
486

0
0
0
263
150
160
366

2003 2004 2005 2006 2007

Optes Inc. Sano Headquarters Plant 2003 2004 2005 2006 2007

ZEON North Co., Ltd.

Number of substances
1
1
1
0
1
PRTR
applicable Consumption (Tons)
0
0
0
0
0
substances
Amount of emitted (Tons)*
0
0
0
0
0
112
52
39
25
Amountproduced(Tons)
178
Industrial
waste
28
25
16
10
25
Amount sent to landfill (Tons)
570 414
CO2 emissions (tons-C)**660 580 570
Energy consumption (crude oil equivalent, kl) 1,522 1,352 1,314 1,315 1,020

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

ZEON Chemicals Yonezawa Co., Ltd. 2003 2004 2005 2006 2007

ZEON Yamaguchi Co., Ltd.

2003 2004 2005 2006 2007

Number of substances
0
0
0
0
0
PRTR
applicable Consumption (Tons)
0
0
0
0
0
substances
Amount of emitted (Tons)*
0
0
0
0
0
830
533 997 1,981 824
Industrial Amount produced (Tons)
waste
0
0
0
0
259
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
440 779 1,117 1,668 2,102
Energy consumption (crude oil equivalent, kl) 1,613 2,856 4,095 6,118 7,708

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

40
0
0
110
0
2
5

0
0
0
67
63
140
81

40
0
0
364
33
2
5

0
0
0
28
27
146
85

40
0
0
97
8
2
5

0
0
0
40
39
138
81

40
0
0
141
7
2
5

0
0
0
45
45
137
80

40
0
0
62
5
2
5

ZEON Logistical Materials Co., Ltd. 2003 2004 2005 2006 2007

This is the first time we haveappeared in this report
I hope that everyone will takeadvantage of this opportunity to learn a
bit more about our approach to CSR.
Our web site was upgraded in April
2008. Pleasetake a look.

Number of substances
PRTR
applicable Consumption (Tons)
substances
Amount of emitted (Tons)*
Industrial Amount produced (Tons)
waste
Amount sent to landfill (Tons)
CO2 emissions (tons-C)**
Energy consumption (crude oil equivalent, kl)

4
20
0
207
4
210
366

4
25
0
258
8
273
479

4
24
0
259
7
303
530

4
22
0
271
5
387
674

4
18
0
194
9
355
623

Akihiro Fujita
CSR, Safety, andAdministration
Department58

http://www.zeonnorth.co.jp/

59

Site Reports• We participated in a local beatification
program along with ZEON's Takaoka
Plant.
• We participate every year in a fire fighting
drill organized by the Takaoka fire department.

Number of substances
1
1
1
1
1
PRTR
applicable Consumption (Tons)
2.2
1.1
0.6
0.9
1.4
substances
Amount of emitted (Tons)*
1.1
0.6
0.3
0.5
0.7
16
6
77
76
54
Industrial Amount produced (Tons)
waste
12
0
0
0
53
Amount sent to landfill (Tons)
44
52
47
51
CO2 emissions (tons-C)**
33
Energy consumption (crude oil equivalent, kl) 70.97 95.39 109.0 102.033 110.302

Performance

Transport by track

Aluminumproduct
forming
machineNumber of substances
3
3
2
3
5
PRTR
applicable Consumption (Tons)
114
88 100237 179
substances
Amount of emitted (Tons)*
16
13
7
6
30
410 387 426 1,057 611
Industrial Amount produced (Tons)
waste
61
62
190 198
322
Amount sent to landfill (Tons)
931 910
CO2 emissions (tons-C)**
1,116 725 935
Energy consumption (crude oil equivalent, kl) 2,470 2,015 2,382 2,334 1,866

Management(1) Approximately 90% waste heat recovery is achieved
using a low NOx regeneration burner.
(2) The combustion air absorbs heat from the waste gas
and is preheated in a thermal accumulator prior tobeing supplied to the burner.
(3) Energy is saved by supplying the aluminum to theuser already melted in a ladle.
(4) The siphon-based molten aluminum supply system
reduces CO2 emissions and delivers reliable quality
and safe operation.

••
••
•

Name
ZEON North Co., Ltd.
Established
April 12, 1972
Capital
100 million yen
No.of Employees 160
Head office
351 Ejiri, Takaoka, Toyama Prefecture 9330062
TEL:0766-25-1111 FAX:0766-25-1114
Main business Plant and equipment, construction equipment,
design of industrial and environmental
machinery, industrial materials, materials(synthetic resins, etc.), sales of civilengineering materials and petroleum,environmental measurement certification, work
environment measurement, and various typesof measurement, analysis and survey work.

ZEON Logistical Materials Co., Ltd. 2003 2004 2005 2006 2007

Message(1) The company designs, manufactures, and markets
aluminum melting furnace and molten metal
supply equipment that uses an environmentallyconscious energy-saving burner system.

ZEON Kasei Co., Ltd. Ibaraki Plant 2003 2004 2005 2006 2007

Overseas Affiliate Activities

Site Report
CSR Report

As ZEON's business has become increasingly globalized, we have established rubber and resin
manufacturing, sales, and research bases in our main overseas markets. These overseas affiliates
undertake CSR activities in the same way as the plants in Japan.

Zeon Chemicals L.P.
(USA)

Zeon Chemicals Europe Ltd.
(United Kingdom)

Following a thorough investigation to determine thebest way to meet new regulations restricting
atmospheric pollution, the Kentucky Plant hascompleted installation of butadiene combustion andoxidation equipment and acrylonitrile recovery
equipment. Trial operation of the new systems has
confirmed an improvement in atmospheric pollution.
Optimization of latex (an emulsion used in the
productionofsynthetic rubber)
deodorizing equipment and investment
in further combustion and oxidationequipmentisplanned for 2008.
Our target for theSpray dryer unit
future is to reduce
emissions by 90%.

Environmental topics

Although a large number of single-parent families livein the vicinity of the Kentucky Plant, the area has few
recreational facilities. To help improve this situation,
ZEON Chemicals along with other neighboringchemical companies jointly promised to contribute
funds to a Salvation Army community center. For its
part, ZEON Chemicals will contribute $50,000 over
five years.
60

Reducing waste material has been identified as an
issue. As most waste has a water content exceeding
75%, a microwave dryer was installed experimentallyand succeeded in reducing the waste volume by morethan 70%.

Safety topics
The previous paperbased system forauthorizing engineering work at the plant
was replaced with anelectronic system. This
allowsacross-theboard risk assessments
Disaster prevention drill
to be made and makes
it possible to perform a number of different intricate
jobs in a safe manner.
New disaster prevention drills were introduced. The
progress of the drill is recorded on camera andanalyzed afterwards by the participants.

Resource and energy saving
We are continuing to reduce CO2 emissions andour target for energy consumption up to2009 is a 25% reduction. To achieve
this goal, we are planning
productivity improvements alongwith recycling of steam
drains and other heat
Martin recovery measures.
Davis

•

Amphur Muang, Rayong 21150,Thailand
TEL:+66-3-868-5973~5 FAX:+66-3-868-5972
Main business Petroleum resin•

Rayong 21180, Thailand
TEL:+66-2-261-0175 FAX:+66-2-261-0172
Main business Carbon master batch rubber

Environment and Safety Activities,
and Related Topics
Environment and safety
activities

Opening ceremony
for new plant

New occupational health andsafety and environmental
management systems were
established in November 2007
and work is underway toachievesimultaneousFire fighting drill
accreditation under both OHSAS18001 and ISO14001
by the third quarter of 2008.
Examples of the extra emphasis on day-to-day
activities in these areas include educational
initiatives such as regular safety training, and the
publishing of a weekly health and safety report and asafety and environment newsletter for all employees.

A new plant was constructed in 2007 to keep
pace with the strong
growth in the automotive industry in Thailand.
Opening ceremony for new plant
An opening ceremony
was held for the new plant with invited guests
including the local police,
government officials, Thailand investors association,neighboring companies,
and local residents.

Compliance

Activities with the
Local Community

Emergency management and compliance committees
were established in January 2008 to consolidate andextend the associated management systems andstrengthen the organization.

We want to bring
the world together
We produce Quintone petroleum resinfor use in adhesives and are the ZEON
group's only petrochemical production
plant in South East Asia.

Makoto Takamura

We donated stationery andother materials to a Presentation of donated stationery
neighboring elementary
school to help us become a part of the local
community. We also donated 60,200 Baht to temples
and schools.
As part of the global
rubber industry, we help
supply master batch to
the Asian region.

Takahiro Okada

61

Site Reports

Environmental and Safety Activities

TEL:+44-1446-725400 FAX:+44-1446-747988• Main business Synthetic rubber

Zeon Advanced Polymix Co., Ltd.
•• NameEstablished
April 26, 1995
BHT 100,000,000•• Capital
Investment Ratio 40% ZEON Corporation
SOI NIKOM 13, MOO 2• Head office 111/2
T.Makhamkhoo, Nikompattana Sub-District,

Performance

Environmental Activities

Zeon Chemicals Thailand Co., Ltd.
•• NameEstablishedMay 9, 1996
BHT 350,000,000•• Capital
Investment Ratio 73.9% ZEON Corporation
Tambol Huaypong, Soi G-14
• Head office 3Pakorn-Songkhororat
Road,

Company Profile

Management

Zeon Chemicals Europe Ltd.
•• NameEstablishedFebruary 6, 1989
STG£ 23,300,000•• Capital
Investment Ratio 100% ZEON Corporation
Vale of Glamorgan,• Head office Sully,
CF64 5ZE, United Kingdom(Thailand)Company Profile

Company Profile

ZEON Chemicals L.P.
•• NameEstablished
October 12, 1989
US$ 36,000,000• Capital
Investment Ratio 100% ZEON Corporation• Head office 4100 Bells Lane, Louisville,•
Kentucky 40211, U.S.A.
TEL:+1-502-775-7700 FAX:+1-502-775-7714• Main business Synthetic rubber

Living Together with the Local
Community(Thailand)

Message

Company Profile

Zeon Chemicals Thailand Co., Ltd. Zeon Advanced Polymix Co., Ltd.

Overseas Affiliate Activities

Site Report
CSR Report

As ZEON's business has become increasingly globalized, we have established rubber and resin
manufacturing, sales, and research bases in our main overseas markets. These overseas affiliates
undertake CSR activities in the same way as the plants in Japan.

Zeon Chemicals L.P.
(USA)

Zeon Chemicals Europe Ltd.
(United Kingdom)

Following a thorough investigation to determine thebest way to meet new regulations restricting
atmospheric pollution, the Kentucky Plant hascompleted installation of butadiene combustion andoxidation equipment and acrylonitrile recovery
equipment. Trial operation of the new systems has
confirmed an improvement in atmospheric pollution.
Optimization of latex (an emulsion used in the
productionofsynthetic rubber)
deodorizing equipment and investment
in further combustion and oxidationequipmentisplanned for 2008.
Our target for theSpray dryer unit
future is to reduce
emissions by 90%.

Environmental topics

Although a large number of single-parent families livein the vicinity of the Kentucky Plant, the area has few
recreational facilities. To help improve this situation,
ZEON Chemicals along with other neighboringchemical companies jointly promised to contribute
funds to a Salvation Army community center. For its
part, ZEON Chemicals will contribute $50,000 over
five years.
60

Reducing waste material has been identified as an
issue. As most waste has a water content exceeding
75%, a microwave dryer was installed experimentallyand succeeded in reducing the waste volume by morethan 70%.

Safety topics
The previous paperbased system forauthorizing engineering work at the plant
was replaced with anelectronic system. This
allowsacross-theboard risk assessments
Disaster prevention drill
to be made and makes
it possible to perform a number of different intricate
jobs in a safe manner.
New disaster prevention drills were introduced. The
progress of the drill is recorded on camera andanalyzed afterwards by the participants.

Resource and energy saving
We are continuing to reduce CO2 emissions andour target for energy consumption up to2009 is a 25% reduction. To achieve
this goal, we are planning
productivity improvements alongwith recycling of steam
drains and other heat
Martin recovery measures.
Davis

•

Amphur Muang, Rayong 21150,Thailand
TEL:+66-3-868-5973~5 FAX:+66-3-868-5972
Main business Petroleum resin•

Rayong 21180, Thailand
TEL:+66-2-261-0175 FAX:+66-2-261-0172
Main business Carbon master batch rubber

Environment and Safety Activities,
and Related Topics
Environment and safety
activities

Opening ceremony
for new plant

New occupational health andsafety and environmental
management systems were
established in November 2007
and work is underway toachievesimultaneousFire fighting drill
accreditation under both OHSAS18001 and ISO14001
by the third quarter of 2008.
Examples of the extra emphasis on day-to-day
activities in these areas include educational
initiatives such as regular safety training, and the
publishing of a weekly health and safety report and asafety and environment newsletter for all employees.

A new plant was constructed in 2007 to keep
pace with the strong
growth in the automotive industry in Thailand.
Opening ceremony for new plant
An opening ceremony
was held for the new plant with invited guests
including the local police,
government officials, Thailand investors association,neighboring companies,
and local residents.

Compliance

Activities with the
Local Community

Emergency management and compliance committees
were established in January 2008 to consolidate andextend the associated management systems andstrengthen the organization.

We want to bring
the world together
We produce Quintone petroleum resinfor use in adhesives and are the ZEON
group's only petrochemical production
plant in South East Asia.

Makoto Takamura

We donated stationery andother materials to a Presentation of donated stationery
neighboring elementary
school to help us become a part of the local
community. We also donated 60,200 Baht to temples
and schools.
As part of the global
rubber industry, we help
supply master batch to
the Asian region.

Takahiro Okada

61

Site Reports

Environmental and Safety Activities

TEL:+44-1446-725400 FAX:+44-1446-747988• Main business Synthetic rubber

Zeon Advanced Polymix Co., Ltd.
•• NameEstablished
April 26, 1995
BHT 100,000,000•• Capital
Investment Ratio 40% ZEON Corporation
SOI NIKOM 13, MOO 2• Head office 111/2
T.Makhamkhoo, Nikompattana Sub-District,

Performance

Environmental Activities

Zeon Chemicals Thailand Co., Ltd.
•• NameEstablishedMay 9, 1996
BHT 350,000,000•• Capital
Investment Ratio 73.9% ZEON Corporation
Tambol Huaypong, Soi G-14
• Head office 3Pakorn-Songkhororat
Road,

Company Profile

Management

Zeon Chemicals Europe Ltd.
•• NameEstablishedFebruary 6, 1989
STG£ 23,300,000•• Capital
Investment Ratio 100% ZEON Corporation
Vale of Glamorgan,• Head office Sully,
CF64 5ZE, United Kingdom(Thailand)Company Profile

Company Profile

ZEON Chemicals L.P.
•• NameEstablished
October 12, 1989
US$ 36,000,000• Capital
Investment Ratio 100% ZEON Corporation• Head office 4100 Bells Lane, Louisville,•
Kentucky 40211, U.S.A.
TEL:+1-502-775-7700 FAX:+1-502-775-7714• Main business Synthetic rubber

Living Together with the Local
Community(Thailand)

Message

Company Profile

Zeon Chemicals Thailand Co., Ltd. Zeon Advanced Polymix Co., Ltd.

Third-party Verification
CSR Activity Time Line (ZEON Corporation only)Year

CSR Report 2008
Third-party Verification : Statement
Responsible CareZEON Corporation
Naozumi Furukawa, President and CEO

September 3, 2008
Akio Yamamoto
Chairman, Verification Advisory Committee
Japan Responsible Care Council
Saburo Nakata
Chief Director, Responsible Care Verification Center

1994

ISO9002 certification was registered for the Takaoka Plant (changed to the ISO9001:2000 version in 2002)
ISO9002 certification was registered for the Tokuyama Plant (changed to the ISO9001:2000 version in 2002)

1995

Joined the Japan Responsible Care Council
ZEON declared that it would perform Responsible Care activities
The “ZEON Responsible Care Basic Policy” was established
ISO9002 certification was registered for the Kawasaki Plant (changed to the ISO9001:2000 version in 2003)
ISO9002 certification was registered for the Mizushima Plant (changed to the ISO9001:2000 version in 2003)

1996

The company-wide safety management system was reviewed and strengthened
The “ZEON Safety Philosophy” was establishedThe “Plant Technology Audit System” was established and activities started

1997

The “Company-wide Environment Improvement Project” was establishedThe first “ZEON Safety Month” and “All-ZEON Safety Conference” were held (subsequently held every April)
A code of conduct (“ZEON's 7 Articles”) was established

1998

ISO14001 certification was registered for the Takaoka Plant
The Kawasaki Plant acquired certification after the high-pressure gas safety inspection

1999

ISO14001 certification was registered for the Tokuyama Plant
ISO14001 certification was registered for the Mizushima Plant
ISO14001 certification was registered for the Kawasaki Plant
ISO9001 certification was registered for the polymer departments
The “Risk Management Rules” were established2000

The Takaoka Plant acquired certification after the high-pressure gas safety inspection
Started to publish the “Responsible Care Activity Report” (from the 1999 edition)

2001

The “ZEON Environment Philosophy” was establishedThe “Handling Restricted Materials Rules” were established2002

The “Affiliate Joint Environment and Safety Meeting” was establishedThe “Project for Reducing the Emissions of Substances Subject to the PRTR Law” was establishedThe “Project for Promoting the Development of Energy Conserving Technology” was established2003

The “Energy Management Rules” were established
Revision to the “Risk Management and Compliance Rules”
Action Plan for “ZEON's 7 Articles” was established
The "Rules for Observing Antitrust Laws” were established2004

ISO9001 certification was registered for the Specialty Plastics Division
The “Internal Report System” was established“Compliance Textbook 1” was published2005

The English version of the “Responsible Care Activity Report” was published
Third-party verification was performed for the “Responsible Care Activity Report”“Compliance Textbook II (FAQ)” was published2006

The “Responsible Care Activity Report” was renamed the "CSR Report"
The “Basic Policy Concerning the Establishment of an Internal Controls System” was established2007

The basic policy for financial reporting was establishedA part time work system to promote child care was introduced

Purpose of Verification
The purpose of this Responsible Care report verification is for the Responsible Care Verification Center to publish an assessmentby specialists from the chemicals industry of ZEON Corporation's 2008 CSR Report (abbreviated below as "the report") in terms of
the following criteria.
1) The suitability of the methods used to calculate and collate (quantitative) performance indicators and the accuracy of the figures
produced
2) The accuracy of non-quantitative report content
3) The Responsible Care activities performed
4) Features of the report

Verification Procedure･ At head office, we evaluated the suitability of the methods used to collate the reported quantitative information from each site
(offices and plants) and the accuracy of non-quantitative information. The investigation consisted of questioning the staff in chargeof operations and the staff who prepared the report on the content of the report and asking them to provide us with documentary
evidence and explanations.
･ At the Mizushima Plant, we evaluated the suitability of the methods used to calculate the figures reported at head office, theaccuracy of the figures and the accuracy of the information presented. The investigation at Mizushima Plant consisted ofquestioning the staff in charge of operations and the staff who prepared the report, asking them to provide us with documentary
evidence and explanations, and reviewing the consistency of the information against the evidence.
･ A sampling technique was used to evaluate the quantitative and other information.

Statement
1) Suitability of (quantitative) performance indicator calculation and collation methods and accuracy of figures produced･ Reasonable calculation and collation methods were used to produce the quantitative information at the head office and Mizushima
Plant.
We also noted that, from this year, data collection from the plants has been upgraded to an automatic system that does not require
manual work.
･ Within the scope of our assessment, the performance information was calculated and collated accurately.
2) Accuracy of reported information･ We confirmed the accuracy of the information contained in the report. Although we pointed out some minor problems relating tosuitability of expression and ease of understanding in the draft document, these have been corrected in the final report and wecannot find any serious issues in the current document that need to be corrected.
3) The Responsible Care activities performed･ We found that, lead by the President, the management have worked closely with the plants to create a safe and stable workplace,and have shown enthusiasm for introducing an equipment information management system, making progress on foolproofing, andreviewing past accidents to prevent reoccurrence.
･ We found that the company has produced and is implementing a new three-year plan to encourage further energy conservationthat has stated a specific target of reducing unit energy consumption to 75% of the 1990 level in 2010. We anticipate the company
achieving its targets for each year.
･ We found that the Mizushma Plant is working with local government and ten other companies associated with the industrial
complex on resource recycling and reducing the volume of waste being sent to landfill, and is achieving significant results.
･ The Mizushma Plant completed its new Integrated Production Center in November of last year where it was able to consolidate
approximately half of its operational departments. In addition to completing this consolidation, we found that the plant is committed
to progressing operational standardization and system development to create a safe and stable workplace.
4) Features of the report
Although we found that the increased use of employee photographs and messages from employees conveyed a more friendly
impression, we hope the CSR content of the report can be made more comprehensive in future.

62

Activity Details

ISO14001 Certification Status for ZEON Corporation
Site
Takaoka Plant
Tokuyama Plant
Kawasaki Plant
Mizushima Plant

Registration No
JQA-EM0265
JQA-EM0421
JQA-EM0524
JQA-EM0520

Registration Date
1998.111999. 51999. 51999. 9Date of Most Recent Update or Reconfirmation
2007.11 (Update)
2008.5 (Update)2007.9 (Reconfirmation)
2007.9 (Reconfirmation)

ISO14001 Certification Status for Affiliates
Site
Registration No Registration Date
2004. 7
E04-417
Head Office and R&D Center
ZEON Kasei
Co., Ltd.
2003.11
E03-360
Ibaraki Plant
2004. 6ZEON Polymix Co., Ltd.*JSAE887
2005. 2
JQA-4517
Sano Head Office Plant
Optes Inc.
2005. 2
JQA-4560
Toyama Plant
2006. 6ZEON Chemicals Yonezawa Co., Ltd.*
03319-B
2004.10RIMTEC Corporation
JQA-EM4296
2006.12
Tokyo Zairyo Co., Ltd.
JQA-EM5592
2007. 1ZEON North Co., Ltd.*
18713A
1999.12ZEON Chemicals Europe Ltd. (ZCEL)EMS 53205
2003. 6ZEON Advanced Polymix Co., Ltd. (ZAP)
AJA03-6412

Date of Most Recent Update or Reconfirmation
2007.7 (Update)2007.11 (Reconfirmation)
2008.1 (Reconfirmation)
2008.2 (Update)
2008.2 (Update)
2008.6 (Reconfirmation)
2007.9 (Update)2007.10 (Reconfirmation)
2007.12 (Reconfirmation)
2008.5 (Reconfirmation)
2007.1 (Reconfirmation)* Combined certification with ISO9001
63

Third-party Verification
CSR Activity Time Line (ZEON Corporation only)Year

CSR Report 2008
Third-party Verification : Statement
Responsible CareZEON Corporation
Naozumi Furukawa, President and CEO

September 3, 2008
Akio Yamamoto
Chairman, Verification Advisory Committee
Japan Responsible Care Council
Saburo Nakata
Chief Director, Responsible Care Verification Center

1994

ISO9002 certification was registered for the Takaoka Plant (changed to the ISO9001:2000 version in 2002)
ISO9002 certification was registered for the Tokuyama Plant (changed to the ISO9001:2000 version in 2002)

1995

Joined the Japan Responsible Care Council
ZEON declared that it would perform Responsible Care activities
The “ZEON Responsible Care Basic Policy” was established
ISO9002 certification was registered for the Kawasaki Plant (changed to the ISO9001:2000 version in 2003)
ISO9002 certification was registered for the Mizushima Plant (changed to the ISO9001:2000 version in 2003)

1996

The company-wide safety management system was reviewed and strengthened
The “ZEON Safety Philosophy” was establishedThe “Plant Technology Audit System” was established and activities started

1997

The “Company-wide Environment Improvement Project” was establishedThe first “ZEON Safety Month” and “All-ZEON Safety Conference” were held (subsequently held every April)
A code of conduct (“ZEON's 7 Articles”) was established

1998

ISO14001 certification was registered for the Takaoka Plant
The Kawasaki Plant acquired certification after the high-pressure gas safety inspection

1999

ISO14001 certification was registered for the Tokuyama Plant
ISO14001 certification was registered for the Mizushima Plant
ISO14001 certification was registered for the Kawasaki Plant
ISO9001 certification was registered for the polymer departments
The “Risk Management Rules” were established2000

The Takaoka Plant acquired certification after the high-pressure gas safety inspection
Started to publish the “Responsible Care Activity Report” (from the 1999 edition)

2001

The “ZEON Environment Philosophy” was establishedThe “Handling Restricted Materials Rules” were established2002

The “Affiliate Joint Environment and Safety Meeting” was establishedThe “Project for Reducing the Emissions of Substances Subject to the PRTR Law” was establishedThe “Project for Promoting the Development of Energy Conserving Technology” was established2003

The “Energy Management Rules” were established
Revision to the “Risk Management and Compliance Rules”
Action Plan for “ZEON's 7 Articles” was established
The "Rules for Observing Antitrust Laws” were established2004

ISO9001 certification was registered for the Specialty Plastics Division
The “Internal Report System” was established“Compliance Textbook 1” was published2005

The English version of the “Responsible Care Activity Report” was published
Third-party verification was performed for the “Responsible Care Activity Report”“Compliance Textbook II (FAQ)” was published2006

The “Responsible Care Activity Report” was renamed the "CSR Report"
The “Basic Policy Concerning the Establishment of an Internal Controls System” was established2007

The basic policy for financial reporting was establishedA part time work system to promote child care was introduced

Purpose of Verification
The purpose of this Responsible Care report verification is for the Responsible Care Verification Center to publish an assessmentby specialists from the chemicals industry of ZEON Corporation's 2008 CSR Report (abbreviated below as "the report") in terms of
the following criteria.
1) The suitability of the methods used to calculate and collate (quantitative) performance indicators and the accuracy of the figures
produced
2) The accuracy of non-quantitative report content
3) The Responsible Care activities performed
4) Features of the report

Verification Procedure･ At head office, we evaluated the suitability of the methods used to collate the reported quantitative information from each site
(offices and plants) and the accuracy of non-quantitative information. The investigation consisted of questioning the staff in chargeof operations and the staff who prepared the report on the content of the report and asking them to provide us with documentary
evidence and explanations.
･ At the Mizushima Plant, we evaluated the suitability of the methods used to calculate the figures reported at head office, theaccuracy of the figures and the accuracy of the information presented. The investigation at Mizushima Plant consisted ofquestioning the staff in charge of operations and the staff who prepared the report, asking them to provide us with documentary
evidence and explanations, and reviewing the consistency of the information against the evidence.
･ A sampling technique was used to evaluate the quantitative and other information.

Statement
1) Suitability of (quantitative) performance indicator calculation and collation methods and accuracy of figures produced･ Reasonable calculation and collation methods were used to produce the quantitative information at the head office and Mizushima
Plant.
We also noted that, from this year, data collection from the plants has been upgraded to an automatic system that does not require
manual work.
･ Within the scope of our assessment, the performance information was calculated and collated accurately.
2) Accuracy of reported information･ We confirmed the accuracy of the information contained in the report. Although we pointed out some minor problems relating tosuitability of expression and ease of understanding in the draft document, these have been corrected in the final report and wecannot find any serious issues in the current document that need to be corrected.
3) The Responsible Care activities performed･ We found that, lead by the President, the management have worked closely with the plants to create a safe and stable workplace,and have shown enthusiasm for introducing an equipment information management system, making progress on foolproofing, andreviewing past accidents to prevent reoccurrence.
･ We found that the company has produced and is implementing a new three-year plan to encourage further energy conservationthat has stated a specific target of reducing unit energy consumption to 75% of the 1990 level in 2010. We anticipate the company
achieving its targets for each year.
･ We found that the Mizushma Plant is working with local government and ten other companies associated with the industrial
complex on resource recycling and reducing the volume of waste being sent to landfill, and is achieving significant results.
･ The Mizushma Plant completed its new Integrated Production Center in November of last year where it was able to consolidate
approximately half of its operational departments. In addition to completing this consolidation, we found that the plant is committed
to progressing operational standardization and system development to create a safe and stable workplace.
4) Features of the report
Although we found that the increased use of employee photographs and messages from employees conveyed a more friendly
impression, we hope the CSR content of the report can be made more comprehensive in future.

62

Activity Details

ISO14001 Certification Status for ZEON Corporation
Site
Takaoka Plant
Tokuyama Plant
Kawasaki Plant
Mizushima Plant

Registration No
JQA-EM0265
JQA-EM0421
JQA-EM0524
JQA-EM0520

Registration Date
1998.111999. 51999. 51999. 9Date of Most Recent Update or Reconfirmation
2007.11 (Update)
2008.5 (Update)2007.9 (Reconfirmation)
2007.9 (Reconfirmation)

ISO14001 Certification Status for Affiliates
Site
Registration No Registration Date
2004. 7
E04-417
Head Office and R&D Center
ZEON Kasei
Co., Ltd.
2003.11
E03-360
Ibaraki Plant
2004. 6ZEON Polymix Co., Ltd.*JSAE887
2005. 2
JQA-4517
Sano Head Office Plant
Optes Inc.
2005. 2
JQA-4560
Toyama Plant
2006. 6ZEON Chemicals Yonezawa Co., Ltd.*
03319-B
2004.10RIMTEC Corporation
JQA-EM4296
2006.12
Tokyo Zairyo Co., Ltd.
JQA-EM5592
2007. 1ZEON North Co., Ltd.*
18713A
1999.12ZEON Chemicals Europe Ltd. (ZCEL)EMS 53205
2003. 6ZEON Advanced Polymix Co., Ltd. (ZAP)
AJA03-6412

Date of Most Recent Update or Reconfirmation
2007.7 (Update)2007.11 (Reconfirmation)
2008.1 (Reconfirmation)
2008.2 (Update)
2008.2 (Update)
2008.6 (Reconfirmation)
2007.9 (Update)2007.10 (Reconfirmation)
2007.12 (Reconfirmation)
2008.5 (Reconfirmation)
2007.1 (Reconfirmation)* Combined certification with ISO9001
63

2008

2008
CSR Report

2008

Corporate Social Responsibility

CSR ReportShin-Marunouchi Center Building, 1-6-2 Marunouchi,
Chiyoda-ku,Tokyo 100-8246 Japan
TEL:03-3216-1341
FAX:03-3216-0516

http://www.zeon.co.jp

This booklet has been printed on paper
made from forests that are managed inaccordance with internationally agreed
principles and standards with respect
to economic, social and environmental
considerations.

ZEON CORPORATIONZEON CORPORATION CSR Department

ZEON CORPORATION