CSR REPORT 2019

1910006SuT

Top Commitment
Commitment of Top Management

Addressing Social Issues
and Pursuing the Groupwide Future Vision forContinuing Growth
Masafumi Fushihara
President and Representative Director
Taiheiyo Cement Corporation

Promoting the 20 Medium-Term Management Plan by
Focusing on the Management of People
The Future Vision and Direction for the mid-2020s is to be an
enterprise group capable of providing a sense of safety andsecurity to communities in the Pacific Rim by demonstrating
the group’s overall capabilities. To achieve the Future Vision
we have been following three strategic steps in order tosteadfastly implement the plan. The first of these was the
17 Medium-Term Management Plan (fiscal 2015-2017),
allowing us to achieve a stronger financial structure, with afocus on the future, for the entire group.
I assumed the office of the president of Taiheiyo
Cement Corporation in fiscal 2018, the first year of the
20 Medium-Term Management Plan. At the time cement
demand in Japan was strongly driven by the start ofconstruction work for the Tokyo Olympics and Paralympics
as well as brisk investment in urban redevelopment.
However, we also faced unexpectedly high coal prices
and transportation costs. These we handled by gaining
the understanding of our customers and negotiating faircement prices and, in doing so, we were able to maintainprofits at the same level as in the previous year. In ourinternational business, we were able to increase sales
and profits due to mild economic growth in the U.S. andgrowing demand in Vietnam and the Philippines. The overall
results of the first year of the 20 Medium-Term Management
Plan were satisfactory.

02

TAIHEIYO CEMENT CSR REPORT 2019»»GRI 102-14, 15, 103-1

One principal theme of our 20 Medium-Term
Management Plan is how to best develop businessbased on a stronger business foundation, a significant
achievement of the previous medium-term management
plan. In this context, I would like to focus on managing
our human resources as an essential driver for business
operations. The attitudes and lifestyles of working people
are significantly diversifying in anticipation of the severelabor shortage on the horizon. The group must transform
into an organic organization that allows diverse people
to demonstrate their abilities fully. Consequently, we will
improve labor productivity and establish comfortableworkplaces by improving workstyles and employee health.
Examining What Remains to Be Done in Japan
We set a goal in the 20 Medium-Term Management Plan
to invest 120 billion yen in growth areas. To achieve thisevery business division is discussing how to proceed with
the investments. The extent to which we achieve our goal
will determine our future. To identify the fields in which
we will invest I visited our plants in Japan and abroadand encouraged everyone to engage in conversations
and raise up their ideas for achieving growth that fully
leverage the characteristics of each plant. Particularly inour domestic business, we must thoroughly explore fields
other than cement that have potential for continued
growth. I believe we will discover such seeds in theboundaries between conventional business categories
such as cement, environmental, mineral resources andconstruction materials. Opportunities may also be foundin a combination of businesses. Our immediate task is toconfirm these possibilities thoroughly by uniting member
capabilities across group companies.
A stronger international business is absolutely essential
for sustainable growth. Beyond re-examining our businesssite strategy focused on the Pacific Rim, we must increase
the deployment of human resources and our R&D activities
by fully leveraging the close relationships across the group.
I am confident the Taiheiyo Cement Group will become
stronger by consolidating its employees and R&D activities
as well as its financial results.
Promoting CSR to Strengthen Our Management
Foundation
The group has established quantitative targets in the areasof (1) Prevention of accidents, (2) Reduction of greenhousegas emissions, and (3) Workplace diversity as CSR Objectives
for 2025 and incorporated them into the 17 Medium-Term
Management Plan. We will continue to pursue CSR Objectives
for 2025 in the 20 Medium-Term Management Plan.

In preventing accidents, we have adopted such safetymeasures as strict compliance with the “promise of sevensafety principles.” As a result, we achieved zero fatalities*
in fiscal 2018. Our perennial challenge is to create a safety
culture that secures the happiness of our employees andtheir families, and so we will continue to focus on safety.
With regard to reducing greenhouse gas emissions,
recent efforts toward realizing a decarbonized society havesurfaced as a major challenge in the public’s perception,
putting the cement industry under scrutiny due to thesignificant volume of CO2 it emits during production
processes. Against this backdrop, we declared our support
for the Task Force on Climate-related Financial Disclosures(TCFD) in June 2019. In order to maintain our essential
role in society for the long-term we will advance thedevelopment of new technologies such as recovering
CO2 as part of our growth strategy and setting a goal ofachieving an 80% reduction in CO2 emissions associatedwith cement production by 2050.
In terms of diversity, as stated as a key focus in the
20 Medium-Term Management Plan, we will continue
to promote people-oriented management. We will
recruit and retain excellent human resources regardlessof nationality or gender. Also, we will focus on developing
global human resources.
Being a Company that Society Can Always Depend on
The Taiheiyo Cement Group is committed to creating asustainable society through sustainable growth focusedon the cement business and developing the advanced
technologies required for a safe and secure future. On theother hand, we must free ourselves from the attitude that
we can do everything on our own. The perspective we must
adopt for the times ahead requires extensive collaboration
across the group, partnership with diverse industries andharmony with society to achieve our common goal for asustainable society. Through these efforts we will be able toremain a company recognized and trusted by stakeholders,seize the initiative in relation to our ESG commitment, andachieve the SDGs as our contribution to society.
*Boundary of data: employees of the group and our contractors in each of the group’s businesssites, including those overseas.

TAIHEIYO CEMENT CSR REPORT 201903

Mission of the Taiheiyo Cement Group »»GRI 102-16 Relevant indicators of the GRI Standards are shown next to titles in the report.
Our mission is to contribute to social infrastructure development by providing solutions that are environmentally efficient,enhance our competitive position and bring value to our stakeholders.

Business Principles Governing the Way the Company Conducts Business »»GRI 102-16• We are committed to creating sustainable value for our shareholders by generating synergies among the Taiheiyo Cement Groupof companies.
• We aim to manage the environmental impact of our operations while supporting the development of a recycling-based society.
• We will act in an ethical manner and abide by the laws and regulations of those countries in which we operate.
• We will openly communicate with our stakeholders and proactively report on our business activities in a transparent manner.
• We are committed to the ongoing development and application of innovative technologies in order to provide products andservices that benefit our customers and society.
• We are committed to maintaining an international outlook and conducting our business in accordance with global standards.
• We will strive to anticipate the changing business environment to assess new opportunities for growth.
• We are committed to achieving our full potential through training and self-development.
• We are devoted to providing a safe and healthy working environment where our employees are valued and the human rights of
all individuals involved in our business are respected.
Under the Mission of the Taiheiyo Cement Group, which was established in June 2002,
the company pledges to focus its management on the triple bottom line, the economy,
the environment and society, to realize sustainable development, a shared principle ofthe WBCSD of which we are a member. In December 2002 we formulated the Business
Principles of Taiheiyo Cement, which comprise nine principles for realizing the Mission of
the Taiheiyo Cement Group, and are striving to implement them.

Contents
Top Commitment
Mission of the Taiheiyo Cement Group,
Business Principles, and Contents
Review of Operations at the Taiheiyo Cement Group
Business Operations and Material Issues of
the Taiheiyo Cement Group
Fifteenth Stakeholder Dialogue

With the Transition to a Sustainable
Society, How Should We View
Environmental and Social Risks?

02
04
06
08

14

Special Feature: The Oita Plant

A Cement Plant to Support Social
Infrastructure for the Next 100 Years

04

TAIHEIYO CEMENT CSR REPORT 201916

Our Commitment to:Management
22
The Environment
34
Collaborating with Society
50
WBCSD-CSI and GCCA Key Performance Indicators
70
Independent Assurance Report on WBCSD-CSI and GCCA Key
Performance Indicators
71
Editorial Policy, Scope and Boundaries of this Report,
Reporting in Accordance with the GRI Standards, andContact Information
72
Third-Party Opinion
73

Future of the Taiheiyo Cement Group »»GRI 103-1, 2

Framework Formulated for Our
Long-range Vision of Greenhouse
Gas Emissions Reduction »»GRI103-2

Vision and direction targeting the mid-2020s
To become an enterprise group that utilizes all of its capabilities to provide a senseof safety and security to society in the Pacific Rim region.

Reducing CO2 emissions in cement
production

CSR Objectives for 2025

Long-term goal:

Ⅲ. Workplace Diversity

Ⅰ. Prevention of Accidents

Fatalities:

0

Ratio of female to male
employees among
new hires at least: eduction of Greenhouse
CO2 Ⅱ. R
Gas Emissions

10

Reduceby at least:%*S pecific net CO₂ emissions per tonne incomparison to fiscal 2000 levels
Scope of Implementation

Ratio of female tomale employees atleast:
Ratio of newly
appointed female tomale managers atleast:

30
10
10

80

% reduction
by 2050

Contributing with cement products toavoid CO2 emissions%

Long-term
goal: contributeto avoiding
emissionsequivalent to20% of the CO2
emissionsin cement
production%%

Ⅰ. Employees of the Taiheiyo Cement Group including
overseas business sites and contractors
Ⅱ. Cement production sites of Taiheiyo Cement andgroup companies, including overseas sites
Non-consolidated
Ⅲ. Non-consolidated (including employees on loan togroup companies and other companies)

The Oita Plant

CSR Objectives for 2025
Area

Ⅰ

Ⅱ

Reduction ofGreenhouse Gas
Emissions

CO2

Workplace
Diversity
Ⅲ

Target (by FY2025)

Policy for Achieving the Target

Scope of Implementation

Zero fatalities(1) Promote safety activities that ensure all employees of the group, affiliatedcompanies and contractors can independently implement PDCA cycles withineach company.
(2) Improve working environments to eliminate incidents of workers being caught byor dragged into equipment or falling.

Employees of the
Taiheiyo Cement
Group including
overseas business sites
and contractors

Reduce the specific net CO2 emissions per tonneof cementitious product by at least 10% from fiscal
2000 levels by fiscal 2025.

(1) Further contribute to creating a recycling-based society.
・Promote the global expansion of our recycling technologies for producing
cement with conventional waste and by-products.
・Promote the development of technologies for handling wastes that are difficult
to recycle, with a focus on reusing them as alternative energy resources.
(2) Promote further energy saving.
・Introduce energy efficient equipment and install additional in-house power
generation equipment such as waste heat power generation systems.
・Promote further energy saving by adopting renewable energy sources.
(3) Promote R&D activities that contribute to reducing global environmental impact,
including R&D into innovative cement production technologies.
・Promote the development of new technologies for practical applications.

Cement production
sites of Taiheiyo
Cement andgroup companies,
including overseas
sites・Increase the ratio of female to male employees under “G(1) Build an appropriate portfolio of human resources and actively promote
Course” (employees without work location restrictions)attraction and retention strategies for recruiting and retaining talented
categories to at least 30%.
women, while also implementing initiatives to achieve this goal.
・Build an appropriate portfolio of human resources by(2) Improve productivity and promote work-life balance management
increasing the ratio of female to male employees to at least 10%.
toward building an organization in which a variety of human resources
・Promote the appointment of female employees to
can fully demonstrate their abilities in the workplace, while also
management positions with the objective of raising the ratio of
implementing initiatives to achieve this goal.
newly appointed female managers to 10%.

Non-consolidated(including employees
on loan to groupcompanies)

Prevention of
Accidents

TAIHEIYO CEMENT CSR REPORT 201905

Dashboard
Review of Operations at the Taiheiyo Cement Group»»GRI 102-1, 3, 4, 5, 6, 7, 8, 10, 45, 103-2, 3, 201-1, 401-1, 405-1

Taiheiyo Cement Profile (as of March 31, 2019)
Company name
Established
CapitalHeadquarters
Number of employees
Net sales
Subsidiaries
Affiliates

TAIHEIYO CEMENT CORPORATION
May 3, 1881
86.2 billion yen
Daiba Garden City Building, 2-3-5, Daiba, Minato-ku, Tokyo 135-8578, Japan
Consolidated: 13,083
Non-consolidated: 1,760 (excluding employees on loan to group companies)
Consolidated: 916 billion yen
Non-consolidated: 329.5 billion yen
192 (including 119 consolidated subsidiaries and 6 equity-method subsidiaries)
103 (including 37 equity-method affiliates)❾

Research Center Central Research Laboratory

Headquarters/Branches❶ Hokkaido Branch❷ Tohoku Branch❸ Headquarters/Tokyo Branch❹ Kanto Branch❺ Chubu Hokuriku Branch❻ Kansai Shikoku Branch❼ Chugoku Branch❽ Kyushu Branch❶Group Production Plants*
 DC Co., Ltd.
 Myojo Cement Co., Ltd.
 Tsuruga Cement Co., Ltd.

Japan: Net sales (consolidated, fiscal 2018)❷❹

Cement Plants*❾ Kamiiso Plant
 Ofunato Plant
 Kumagaya Plant
 Saitama Plant
 Fujiwara Plant
 Oita Plant

❽

❻

❼

75.0%

687,422
million yen❸❺

Japan: Number of employees (consolidated, fiscal 2018)

60.8%

Financial Data

7,958

Male
Female

6,916
1,042

Non-financial Data
(Detailed data of reporting organizations are provided on page 72.)

EconomySafetyNet Sales

Net Sales by Segment (Consolidated, Fiscal 2018)(FY)(millions of yen)

2018

916,071329,525

2017

321,1622016

300,3982015

300,6422014

871,113798,5882025 0Construction Materials:

8.5%
Environment: 9.3%
Mineral Resources:

Cement:69.5%

842,848

2017

2

2016

2

2014

(FY)

(millions of yen)

27,3372017

32,3592016

34,702

2015

36,214
39,469■ Consolidated

42■ Non-consolidated

Profit Attributable to Owners of Parent (Consolidated),
Net Income (Non-consolidated)

TAIHEIYO CEMENT CSR REPORT 2019

CSR Objectives for 2025

2018 02015

312,7122014(number of cases)

835,359

Ordinary Income

06

(FY)

6.5%

■ Consolidated

2018

Others: 6.2%

Number of Fatalities

Lost Time Injury Frequency Rate
WBCSD│GCCA(FY)(millions of yen)(FY)64,3062018

43,452

2018

64,3662017

16,65638,52523,25459,802

201660,225

2015

26,3262014

27,40667,890■ Non-consolidated

36,970■ Consolidated

2017
47,59736,4042016(per million man-hours)

1.01
0.87
0.97

2015
44,114■ Non-consolidated

2014

1.18
0.88

U.S.A.: Net sales (consolidated, fiscal 2018)

15.7%

Anchorage

DalianSeattleQinhuangdao
TAIHEIYO CEMENT HEADQUARTERS
NanjingShanghaiTaipeiHong Kong
Taichung
Hanoi
Nghi Son Kaohsiung
Bangkok
Nha Trang
Ho Chi Minh
Cebu
Singapore

million yen

U.S.A.: Number of employees (consolidated, fiscal 2018)

22.2%
TAIHEIYO CEMENT (CHINA) INVESTMENT

143,663

PortlandMojaveStockton
Las Vegas
TAIHEIYO CEMENT U.S.A.
Oro Grande

2,905

Male

2,627
278

FemaleRillitoLos Angeles

TAIHEIYO SINGAPORE
Lae

Other countries: Net sales (consolidated, fiscal 2018)

84,985

9.3%

million yen● Holding company◆ Cement plant*◆ Clinker grinding plant*▲ Representative office▲ Distribution terminal

Other countries: Number of employees (consolidated, fiscal 2018)

2,220

17.0%

Male

1,918
302

Female*Business locations where data for WBCSD-CSI and GCCA KPIs are collected (fiscal 2018)

Management Plan

Environment

Diversity

Reduction Rate of Specific Net CO₂ Emissions per Tonne of
Cementitious Product (Compared with Fiscal 2000)

Fundamental Policies
To become an enterprise group that anticipates futurechanges in the business environment and seeks innovations
on all fronts, thereby advancing along a pathway of growth.

Ratio of Female to Male Employees Non-consolidated

WBCSD│GCCA(FY)

CSR Objectives for 2025

2025

(%)

10.0

2018

10.0

7.8

2016

7.2

2015

5.9

2015

2014

5.9

2014

(%)

8.6

2017

7.8

2016

2025
2018

8.9

2017

CSR Objectives for 2025

(FY)

To push ahead with the strengthening of our earnings base forbusinesses and further improve our financial structure throughexhaustive cost reductions as well as by actively executing
investments in promising fields that will contribute to theGroup’s sustainable growth.

7.1
6.4
5.6

*Including employees on loan to group companies.
*The data is collected retroactively from the past fiscal years toensure uniformity across all fiscal years.

Ratio of Alternative Raw Materials and Fuels

Number of Employees by Gender (Consolidated)

WBCSD
Female: 1,622

（％）

(FY)

2018

13.8

2017

13.5
13.1

2016

Total

13,083

15.5
15.5
15.1

2014

14.9
15.7
■ Alternative raw materials

Strategy for
Research andDevelopment

Business
Strategies

Strengthen
Management
Foundations

Establish a solid business foundation.
CSR Objectives for 2025
Disaster prevention, Reduction of greenhouse gas
emissions, Diversity

Outline of the 20 Medium-Term Management Plan (FY2018–FY2020)

15.5

2015

■ Alternative fuels

12.4%

16.0

To commit to national resilience as a member of the social
infrastructure industry by contributing to the establishmentof a sense of safety and security in society through the stableprovision of high-quality products and solutions as well as thedevelopment of advanced technology.

Management Targets

FY2018results

Target for
FY2020Operating incomeon sales

7.2%

9% or more

ROA
(Ordinary Income)

6.3%

8% or more

peopleMale: 11,461

87.6%

TAIHEIYO CEMENT CSR REPORT 201907

Business Operations and Materiality
Business Operations and Material Issues of
the Taiheiyo Cement Group»»GRI 102-2, 9, 11, 15, 29, 32, 40, 42, 43, 44, 46, 47, 103-1, 2, 3, 201-2, 203-1

The cement industry has two major social roles. One is to ensure a stable supply of base materials for building social infrastructure,and the other is to take advantage of cement production technology to encourage the circulation of resources in society throughthe safe recycling of wastes and by-products as alternative raw materials and fuels for cement.
The social value Taiheiyo Cement Group seeks to create under its growth strategy calls for performing these two social
functions in the Pacific Rim region, providing a sense of safety and security, and thereby contributing to sustainable development.

Cement Business

Mineral Resources Business●Supply of raw materials for cement production,
limestone products and aggregates for the construction,
steel and chemical industries●Soil solutions business such as treatment of contaminated soil
●Functional materials business●Production and sales of a wide variety of products inJapan including Ordinary Portland and other cements,
soil stabilizer, soil improvement materials andready-mixed concrete●Supply service through service stations across Japan

Coal procurement

Service station
Cement plant

T
PU
IN

●Sophisticated waste treatment services(recycled-waste-to-cement system) using
the characteristic features of the cement
production process●Development and sale ofenvironmental products thatutilize the resources we holdEnergy materials center
Ash center

Waste disposal company

TAIHEIYO CEMENT CSR REPORT 2019

PU
T

Reuse

PU

Environmental BusinessIN

Headquarters andCentral Research Laboratory

INPUT

Raw material
procurement

Resource recycling

08

INPUT

Cement supply

T

PU

IN

Limestone quarry

T

Logistics and supplyIN

Production

STEP 01 │ Identification of Issues
We organized our environmental and social issues based on an overview of our value chain.

International Business

Other Business●Cement, ready-mixed concrete andaggregates business around the Pacific Rim●Solutions for saving energy andreducing environmental impact thatincorporate our cement production
technologies

Real estate businessInformation processing businessTransportation andwarehousing businessEngineering businessand others

Construction Materials andBuilding Construction &Civil Engineering Business●Manufacture and sales of a wide variety of construction materials●Manufacture and sales of cement-related and concrete products●Civil engineering work such as ground improvement projects●Diagnostic and repair services for existing concrete structures

Concrete products
manufacturing plant

Ready-mixed
concrete plant
Construction site

Sea transportation

OUTPUTOUTCOME

Cement supply

Building safe andsecure social
infrastructure

Recycling waste
andby-products

Creating
recycling-oriented
society

Power plant

Steel mill

Use

Water supply and drainage treatment plant

Waste incineration plant

TAIHEIYO CEMENT CSR REPORT 201909

Social Contribution and Initiatives by Segment and Relevant SDGs ( STEP 01 )Cement Business

Mineral Resources Business

Products and Services
We contribute to the building of safe and secure social
infrastructure by supplying a variety of high-quality construction
materials.
Initiatives through our Business Operations
We contribute to the protection of the global environment
and the creation of a recycling-based society through the useof waste and by-products that are difficult to recycle in otherindustries as alternative raw materials and fuels for cement.
Before accepting any waste or by-products we conduct
environmental impact assessments and, under strict regulations
governing their use, we ensure the stable operation of ourcement plants and avoid the discharge of pollutants. Moreover,waste is stored in fully enclosed facilities inside our plants so thatodor cannot escape into the surrounding areas.
◦Manufacturing: To maintain highly reliable product quality, we have implemented
a quality management system in accordance with ISO 9001. We work to ensure that
our cement production kilns are being safely operated and install equipment toprotect the environment, including energy-saving equipment to maximize energy
efficiency and equipment to reduce air polluting emissions. We also measureemissions of pollutants and then disclose the results.
◦Sales: We place the highest priority on customer satisfaction and quickly andeffectively respond to customer requirements through the collaboration of sales
and technical staff and each business unit.
◦Technical divisions: We conduct a wide range of activities, such as responding tocustomers’ technical requests related to product use, and providing support for
improving customers’ technical capabilities as well as quality assurance.
◦Cement plants: We communicate with the local population and contribute to theirlives by holding community briefings on plant operations, offering worksite tours,
making our facilities available for public use and participating in local festivals andevents.

Research andDevelopment

Cement segment◦Development of our innovative quality predictive system with a focus on maintaining andimproving product quality.
◦Promotion of R&D activities, such as lowering costs, protecting the environment, saving energy
and reducing CO₂ emissions in the production of cement.
Concrete segment◦Promotion of our “Concrete Solution Menu” to provide useful information to each user througha dedicated website utilizing the technical data we have accumulated.
◦Focus on R&D activities on cement-based materials with the world’s highest strength◦Development of diagnostic and repair technologies that contribute to ensuring the safety andsecurity of infrastructure.
◦Striving to expand the use of concrete as a pavement material.

Products and Services
In addition to supplying essential raw materials and minerals for the
manufacturing and construction industries, we also provide products andservices that meet environmental needs. These products and services
include the recycling of construction soil as raw materials and fuels for
cement, and solutions such as DENITE® for treating contaminated soil that isdifficult to recycle. DENITE® is a heavy metal immobilization product for theeffective treatment of contaminated soils. Furthermore, we produce andsell a material for LEDs called ChiccaLight® and high-purity silicon carbide
which is a single crystal material for power semiconductors.
Initiatives through our Quarry Operations
In quarry operations, representing our core business, we strive toensure safety and reduce environmental impact during all stages, fromdevelopment to closure. Specific efforts vary by quarry and site location.
In consideration of the environment, we endeavor to prevent pollution
associated with quarry operations such as air and water pollution, noise andvibration. We also promote the greening of quarries by soil dressing andtree planting.
For support and advice on quarry’s safety, we set up a working groupthat includes outside experts as needed and we continue to maintainstable conditions at old quarry sites, deposited soil sites and quarry slopes.
In addition to these efforts, we leave the perimeter of the quarry intact
which works effectively as a raised embankment to protect the scenery atsome locations.
With regard to our efforts to conserve biodiversity we have beensuccessful in the preservation and growth of rare plant species by using
biotechnology.

◦Development of functional materials that add value to the mineral resources we hold, such as hollow spheres andultra-high-purity silicon carbide.
◦R&D activities on immobilizing agents, a technology for treating contaminated soil.

Key Stakeholders’ Expectations and Demands Related to CSR Issues ( STEP 01 )We strive to fulfill our responsibilities
in response to the expectations
and demands of stakeholders while
directly and indirectly maintaining
sound relationships with them.
Listed right are the Taiheiyo Cement
Group’s key stakeholders, identified
through consideration of our businesscharacteristics and environment.

Stakeholders
Shareholders, investors and financial
institutions◦Publication of various reports (financial statements, annual reports and CSR
reports, etc.) ◦Website and IR site ◦IR activities ◦Response to surveys

Customers

Sales agents, ready-mixed concrete
companies, ordering parties andwaste disposal companies◦Sales contact at the head and branch offices ◦User societies and industry
associations ◦Technical journal and product catalogue ◦Technical workshop◦Website

TAIHEIYO CEMENT CSR REPORT 2019

◦Labor-management consultation and briefing sessions ◦Training programs◦Setting up contact points for consultation and whistleblowing◦Website and intranet ◦In-house newsletter ◦CSR report

Employees

Society

Local communities in which we
do business◦Briefing sessions, debriefing sessions, tours and environmental monitoring
system ◦Social contribution activities ◦CSR reports ◦Dialogue

Local governments◦Notifications to local governments ◦CSR reports ◦Dialogue◦Meetings and gatherings ◦Surveys ◦Dialogue ◦Social contribution
activities

NGOs and NPOs
Suppliers

10

Major Opportunities for Engagement

Shareholders

Business partners (procurement)
Partner companies (facilities
operation)◦Procurement briefing sessions◦The Health and Safety Cooperative Committee

Environmental Business

Construction Materials and Building
Construction & Civil Engineering Business

International Business

Products and Services
Our recycled-waste-to-cement system enables us to safely
recycle large volumes of various waste and by-products
generated in other industries. By recycling waste and byproducts as resources we not only extend the lifetime of landfills
but also help prevent natural resource depletion and reduce
environmental impacts.
In the environmental product business we contribute to thecreation of a recycling-based society by recycling resources,using a recycling system in which we not only sell limestone tothermal power stations as a flue-gas desulfurization material but
also receive the gypsum generated by the power stations as aby-product, which we then use as raw material for cement.
We are also expanding our environmental business in thearea of water filtration and purification by consolidating waterrelated technologies across the group to address environmental
issues.

Products and Services
We manufacture and sell
construction materials and also
install them as a contractor forvarious construction site needs.
In the field of construction
materials we deal in cementrelated products such as highperformance premix products
and additives for concrete andconcrete products, including
autoclaved lightweight concrete(ALC) panels and paving blocks.
We also conduct sales using the
distribution network developed by
the group.
In our building construction
and civil engineering business weperform ground improvement
projects and seismic retrofitting
projects. We have also been
conducting diagnostic and repair
services to extend the life ofconcrete structures. Through these
activities we contribute to thelong-term safe and secure use ofsocial infrastructure.

Products and Services
In the overseas market, blended
cement incorporating slag and fly
ash dominates the market due tostrict environmental regulations.
We expanded the capacity ofthe silo for blended cement in
our Singapore cement terminal,
allowing us to produce and store
cement suitable for each local
quality standard as well as theusage environment to meet theinternational market needs. We
are also focusing on the cement
trading business, including theexport of cement produced at ourdomestic and overseas plants andtriangular trade, capitalizing on ourinternational distribution network.

Initiatives through our Business Operations
As a company engaged in the environmental business we also
aim for good relationships with business partners and local
communities and secure their trust by focusing on complianceand managing risk and safety matters. In order to safely
handle waste we follow our manual for its acceptance anduse and make sure that the waste has no adverse impact on
the cement production process, on accident prevention or on
environmental protection.

◦Development of technologies for recycling waste that is difficult to recycle and recovering rarematerials.
◦Development of water-related technologies such as for wastewater purification and phosphorus
recovery.
◦Development of technologies for removing materials contaminated by radiation.

EconomyStakeholder
Expectations
and Demands◦Proceeding with an initiative to serve as a centerfor generating synergies across the group’s R&D
activities.

Environment◦U.S.: Our operations include cement
manufacture, ready-mixed concrete,aggregates and more on the West Coast.
◦China: We operate three core joint venturecompanies for the production and sale ofcement. We intend to expand our business
operations, including in the energy saving
and environmental business, while drawing
upon our cement production technologies.
◦Southeast Asia: We manufacture cement
and produce ready-mixed concrete fromour operations in Vietnam, we manufacture
cement in the Philippines, operate animported clinker grinding business inPapua New Guinea, and are involved in thepurchase and sale of mineral products aswell as other businesses in Thailand.

◦We are developing a system to design, specify andprovide cement and concrete to meet local market
requirements under our globalization/localization(“glocalization”) initiative as well as to provide
technical support in the area of environmental
protection and reduced environmental impact.

Society◦Management stability and growth potential◦Stable redistribution of profits◦Information disclosure◦Effective allocation of management resources◦Information disclosure◦Effective allocation of management resources◦Information disclosure◦Stable supply of products◦High value-added products ◦Improved
economic efficiency of waste disposal◦Provision of environmental products◦Reduced environmental impact from waste treatment◦Maintaining product quality and safety ◦Provision of information on product use◦Technical support for product use ◦Response to complaints◦Improved resource circulation in the community◦Payment of reasonable price◦Promotion of environmentally sound management◦Respect for human rights ◦Respect for diversity ◦Elimination of discrimination; fair evaluation andequal opportunity ◦Secured occupational safety and improved work environment◦Support for skill and career development ◦Ensuring opportunities for conversation◦Sharing social costs◦Reduced environmental impact on the community◦Countermeasures to mitigate climate change◦Contribution to resource recycling ◦Improved
energy efficiency ◦Appropriate use of water resources◦Conserving biodiversity ◦Information disclosure◦Contribution to infrastructure development◦Maintaining the quality of product and service safety ◦Job creation◦Respect for human rights and the community◦Social contribution activities◦Information disclosure◦Fair evaluation of environmental considerations◦Support for environmental measures◦Promotion of environmentally sound management◦Equal and fair relationships◦Respect for human rights◦Secured work safety and improved work environment◦Tax payment◦Activity support and sponsorships◦Payment of reasonable price

TAIHEIYO CEMENT CSR REPORT 201911

Risks and Opportunities for our Business Operations and their Relationship to SDGs ( STEP 01 )The Taiheiyo Cement Group recognizes and evaluates group risks and opportunities from the perspective of ESG (environment,
society and governance). Furthermore, it strives to reduce potential, medium- to long-term business risks, fully utilize its resources
and create social value and expand business opportunities.
E: Environment
Japan

Business
environment;
Risks

S: Society◦Climate change◦Severe natural disaster◦Resource constraints◦Waste treatment◦Reinforcement of environmental regulations◦Climate change

Overseas ◦Waste treatment

Resource constraints◦◦Reinforcement of environmental regulations◦Creation and development of a recycling-

Opportunities

oriented society◦Provision of environmentally friendly products◦Technical assistance for emerging economies

G: Governance◦Declining birth rates, an aging population and a labor shortage◦Progress in deterioration of infrastructure◦The Tokyo Olympics and Paralympics.
◦Large infrastructure projects◦Restoration and reconstruction in disaster-stricken areas◦Technological innovations (ICT, IoT, AI, etc.)◦Unfair trade◦Corruption and bribery◦Falsification of data

◦Expansion of production and consumption◦Rapid urbanization◦Growing infrastructure improvement◦Technological innovations (ICT, IoT, AI, etc.)◦Stable provision of high-quality products◦Anti-disaster projects and efforts to restore deteriorating infrastructure◦Provision of solutions◦Compliance◦Provision of labor-saving products◦Risk management◦Restoration and reconstruction in disaster-stricken areas◦Retention and development of capable human resources

Key Directions for the Group◦Stable provision of products and services◦Creation and development of a recycling-oriented society◦Construction of new business model◦Enhancement of group governance◦Efforts to mitigate and adapt to climate change◦Expansion of strategic business domain◦Retention and development of capable human resources◦Strengthening of corporate governance

Relationships between SDGs and Our Business Operations

Low

Relationship5 goals most closely related to our business operations

MediumHigh

STEP 02 │ Prioritization
We identified sustainability issues while referring to international guidelines and stakeholder feedback in the context of our business.
Through internal meetings we then held discussions on the priority themes for the Taiheiyo Cement Group, resulting in 11 priority
aspects of the material issues.
In the process of steps 1 and 2 we referred to:･ GRI Sustainability Reporting Standards (GRI Standards) 2016/2018 ･ SDGs, SDG Compass, SDGs Industry Matrix･ ISO 26000･SASB･ AA1000SES (AA1000 Stakeholder Engagement Standards) ･ Internal questionnaire and feedback surveys･ ESG surveys and evaluations･CSR report questionnaire survey･Stakeholder Dialogue･ Opinions and advice from outside experts and advisors

Materiality of the impact for stakeholder
evaluations and decision making

Various sustainability issues● Appropriate use of water resources● Appropriate management of chemical substances● Compliance with environmental laws and regulations● Mitigation of environmental impacts of transfer and transport● Human resource development● Work-life balance management● Sound labor-management relations● Fair trade● Corruption prevention● Marketing communication● Personal information protection● Information disclosure● Protection and use of intellectual property

High materiality● Preventing environmental
pollution● Conserving and restoring
biodiversity● Offering environmentallysound products andservices● Participating in andrespecting local
communities● Respect forhuman rights

Materiality

TAIHEIYO CEMENT CSR REPORT 2019

● Improving energy andresource productivity(promoting resource
recycling)● Diversity and equal
opportunity● Maintaining productquality and safety andensuring stable supply

High materiality

Materiality of the impact of Taiheiyo Cement on economy,
the environment and society

12● Creating anddistributing economicvalue● Mitigating climatechange● Occupational
環healthand safety

Material Issues and Approaches of the Taiheiyo Cement Group ( STEP 02 )Categories

Material Aspects

Boundaries of Major Impact
Taiheiyo
CementEconomic

Environmental

Report Page

Value chain

Creating and Distributing
Economic Value

Society

Improving Energy andResource Productivity(promoting resource recycling)

Policy:• Conducting business activities in accordance with our 20
Medium-term Management Plan (fiscal 2018 to fiscal 2020)

Industry and regional
waste-related facilities

Policy:Mitigating Climate Change

Industry and regional
waste-related facilities• Environmental management policy• WBCSD-CSI “CSI Charter”• GCCA Sustainability Charter

System:Preventing Environmental
Pollution

Areas around plants• Setting up Environmental Management Committee• All plants, head office, branches and the Central ResearchLaboratory are operating in compliance with ISO 14001

Conserving and Restoring
Biodiversity

Areas around plants

Offering Environmentally
Sound Products and Services

Society

Occupational Health and
SafetyEvaluation:

Maintaining Product Quality
and Safety and Ensuring
Stable Supply

Areas around plants

Respect for Human Rights• CSR Objectives for 2025
• Group environmental targets and KPIs based on the CSICharter and the GCCA Sustainability Charter• Monitoring and review by the Environmental
Management Committee

PP. 36-38
P. 47
PP. 44-45
PP. 42-43
P. 46
PP. 50-53
P. 65

System:• Establishment of the Environmental Management Committee• OSHMS has been running in all plants and mines

Evaluation:• CSR Objectives for 2025
• Monitoring of data on health and safety including
information from contractors

Policy:• The Basic Policy Concerning the Development of Human
Resources

System:• The Basic Policy Concerning Diversity•D evelopment of a long-term human resource development system,
PP. 56-61
a fair evaluation system and comfortable working environments

Evaluation:• CSR Objectives for 2025
• Quantitative targets for diversity• Monitoring various kinds of personnel data

Policy:• Quality Policy

System:• A unified ISO 9001-based management system forproduct development, design and production• Technical support in the framework of Taiheiyo Brand
Cement/Concrete (TBC) activities

Evaluation:• Analyzing suggestions and inquiries related to quality• Regularly disclosing safety-related data on our website

Policy:• Identifying communication with communities as a material issue in theMission of the Taiheiyo Cement Group and the Basic Policy of CSR

System:• Promoting company-wide activities by the Stakeholder
Communication Committee

Evaluation:• Managing progress and sharing information under thecompany-wide action plan

Policy:• Basic Policy Concerning Human Rights and Labor Practices

System:• Promoting company-wide activities under the Human
Rights Committee• Contact points for counselingContractors
Evaluation:

STEP 03 │ Validation

PP. 36-41
P. 47• Occupational Health and Safety Policy

Cement users
Society

Participating in and
Respecting Local
Communities

PP. 06-07
PP. 66-69

Policy:Contractors

Diversity and Equal
Opportunity

SocialManagement Approaches

PP. 62-64

PP. 50-52

PP. 66-69

P. 56• Managing progress according to the company-wide action
plan and facilitating the exchange of opinions and negotiationsat labor-management consultations

STEP 04 │ Review

We confirmed the Principles of Completeness andStakeholder Inclusiveness are applied to finalize theidentification of the report content.

We implement a review every fiscal year for the report issued.
◦ Internally➡ Report booklets are distributed to all employees of

Taiheiyo Cement Corporation and a questionnaire survey
is conducted.
CS R レ ポ ー ト 2 0 1 9➡ Discussion at the CSR report➡ Reporting and approval at the
この印刷物に使用している用紙は、森を元気にするための間伐と間伐材の有効活用に役立ちます。
板橋福祉工場（東京都）
は、身体障がい者の就労・社会的な自立を目指し運営されています。
（ ISO9001および情報
セキュリティマネジメントシステム取得）

ユニバーサルデザイン（UD）の考え方に基づき、より多くの人へ適切に情報を伝えられるよう配慮した見やすいユニバーサルデザイ
ンフォントを採用しています。

2019

TAIHEIYO CEMENT CORPORATION
Corporate Social Responsibility
Repor t 2019

➡ CSR report briefing sessions are held at all business sites

and plants (17 sites in fiscal 2018).

◦ Externally➡ Third-party opinion by experts➡ CSR report questionnaire survey➡ Review by external advisors

editing task force meeting
CSR Management Committee

CSR REPORT●●●●●●●SuT

TAIHEIYO CEMENT CSR REPORT 201913

Stakeholder Dialogue
Fifteenth Stakeholder Dialogue»»GRI 102-27, 43, 44

With the Transition to a Sustainable
Society, How Should We View
Environmental and Social Risks?
Every three years the Taiheiyo Cement Group identifies andevaluates risks across the Group, and 2019 is the current year
for this review. With efforts toward sustainability emerging as a
global challenge, we must adopt a fresh approach to evaluating
and responding to risks associated with our business.
How should companies prepare and act in terms ofappropriately identifying and responding to risks related tosustainability, which represents the state of the world today? We
invited external experts to participate in a discussion at the CSRManagement Committee, which includes all board directors as
members. The dialogue took place in July 2019.

Responding to Risks undera Sound Governance System

Yoshinao Kozuma
Professor Emeritus,
Sophia University
As an expert in environmental and international accounting, Mr. Kozuma is an authority
in related research, education and guidance, which reflects the state of CSR activities
in Japan and abroad. He has served in a number of public posts such as chair of theStudy Group for Establishing the Environmental Reporting Guidelines 2016 Edition andEnvironmental Accounting Guidelines 2016 Edition, as well as chair of the Study Groupfor Amending the Environmental Reporting Guidelines for the 2017 Edition. Moreover,
he is an author of the book Carbon Label to Visualize CO2 (CHUOKEIZAI-SHA, Inc.)

The major environmental and social
risks for companies today might
be those associated with the transition to a sustainable
society. Laws, regulations and social values are evolving
toward the creation of a society that facilitates sustainable
development, a goal for the UN’s SDGs. Under thesecircumstances, companies that continue to operate as they
have in the past are more likely to run the risk of losing
business opportunities and facing higher costs.
I identify climate change and human rights violations,as well as the respective environmental and social impacts,
Lecture Summary

14

TAIHEIYO CEMENT CSR REPORT 2019as the risks that the cement industry can be expected
to face. While the cement industry emits about 5% of all
global CO2 emissions, it must innovate its business model toreduce such emissions in light of the coming enforcementof the Paris Agreement. Although human rights-relatedrisks specific to the industry may be small, in a time whencompanies must take responsibility for the actions of their
supply chains, human rights-related risks will also warrant
greater attention.
The Carbon Disclosure Project, CDP, is an international
NGO collaboration operated by institutional investors that callson companies to disclose information on their responses toclimate change and water risks. CDP has analyzed the climatechange measures taken by the world’s leading companies andthe resulting report concluded that Taiheiyo Cement faced
relatively high risks related to climate change and water stress,and has not associated those risks with the creation of business
opportunities. To ensure that Taiheiyo Cement will be able torespond effectively to its environmental and social risks andadapt to the transition to a sustainable society, it must create a
proprietary, global information network and establish a process
for making reasonable decisions without being influenced
by political pressures or irrational majority voting. By doingso Taiheiyo Cement can accurately discern the long-term
direction of international society. The transition to a sustainable
society will in fact take many years, and therefore the company
must establish a sound governance system in order to preventinconsistency in its basic management principles in response
to prevailing ideologies.

Discussion Session
Question
We contribute to creating a recyclingbased society by recycling waste such as discarded
plastic, which has recently become an urgent issue,
and by-products as raw materials and fuel for cement
production. We publicly share our CSR efforts
through our CSR report and other channels.
The recycling process involves incinerating materials
at least once, which makes it difficult for people toappreciate the real value of this process. This is ourdilemma.
Answer
Kozuma: First, you should be fully aware that somepeople have a strong interest in this issue. In Europe,
information disclosure is a part of corporate businessstrategy while, in Japan, generally a specific department
handles the issue which makes an effective response
difficult. But I want to point out that your company’s CSR
report has been favorably received by experts.
Fukushima: I recommend that your company maintain apolicy of candidly disclosing information through its CSR
report or other means to enable readers to understandyour efforts. The point is to ensure that the reported
details are crystal clear to readers knowledgeable in thisfield. I don’t think you would want to produce an overly
simplified CSR report in a brochure format just so that all
readers could understand it easily.

When we hear the term “Environmental
and Social Governance (ESG) evaluation”
we often think about the evaluation by investors andshareholders, such as through ESG investments. However, theESG assessments of customers may actually wield a larger
impact on the business world. Japanese companies tend to
think that simply providing high-quality, environmentallysound products and services would be sufficient.
Nevertheless, customers also pay attention to the ethicalstance and moral principles of a corporation that creates
products and services. We often find situations in which highscores for environmental friendliness are offset by a low ESG
evaluation of the company itself. Now that ESG evaluation is a
critical factor for determining whether or not a company will
prevail over its competitors, we must be fully aware of ESG
evaluation as a major factor for business success.
But in nearly every situation, the salesperson, as arepresentative of the company, is the first to be evaluatedby customers. The point is to what extent that salesperson
correctly recognizes the significance of being evaluatedfrom the ESG perspective. I know of so many companies inwhich sales personnel did not understand the real meaningof ESG evaluation and did not take any remedial action.
Every company now faces the challenge of fully applying
ESG evaluation to its supply chains beyond the boundary of
the corporate group. It is difficult to ask suppliers to respondto such questions or cooperate in other ways. Also, smallscale suppliers lack the capacity to deal with ESG issues,
so companies must proactively support them instead of
Lecture Summary

Question
In July 2019, Taiheiyo Cement
announced its long-term goals (KGIs) for reducing
greenhouse gas emissions by 2050. From theperspective of ESG, have you observed a trend
toward setting KPIs and KGIs for society andgovernance as well?
Answer
Kozuma: The response of Japanese companies toenvironmental concerns are ahead of similar efforts
related to society. That said, some have noted theabsence of the “big picture.” In Japan, immediate needs
are nearly always given top priority. In Europe, on theother hand, people believe that a system to ensure social
equity must be in place in order for your action to makesignificant movement. In this sense, efforts to protect
human rights in Japan lag far behind other countries.
Fukushima: Naturally, setting goals for society andgovernance, not only the environment, is imperative.
Environmental and social issues, though, are different
in their essential nature and circumstances. Their baseyears and target years will also be different as well as therelative effectiveness of quantitative targets, which will
make it difficult to find practical benchmarks.

Incorporating ESG Evaluationin Business Transactions

Takashi Fukushima
President of Sustainability
Accounting Co., Ltd. and
SusTB communications Co., Ltd.
Certified Public Accountant. Since 1996 Mr. Fukushima has served as a consultant forenvironmental management and CSR in general as well as the manager of verification
services at a leading auditing firm. In 2006 he left the accounting firm and establishedSustainability Accounting Co., Ltd. and SusTB communications Co., Ltd. to focus on
supporting major corporations in promoting their CSR initiatives and improving CSR
evaluation as well as assisting them in voluntary, sound information disclosure. He is
also an author of CSR Episodes (Gentosha Inc.)

simply reviewing their efforts. Naturally, if a company does
not operate a system for conducting ESG evaluation, it must
establish and activate one before reviewing the efforts of
its suppliers. Consequently, sustainable management is achallenge that companies must address over the long run.

TAIHEIYO CEMENT CSR REPORT 201915

Special Feature│ Special Feature │ The Oita Plant »»GRI 102-6, 201-1, 203-1

A Cement Plant to Support Social
Infrastructure for the Next 100 Years
The history of the Oita plant, a principal facility of Taiheiyo Cement, goes back as far as a hundred years. In this feature we
report on the key role the plant will continue to play in supporting social infrastructure over the next century.

Principal Plant with a Geographical
Advantage
The Oita plant is in Tsukumi City in southern Oita Prefecture.
The city is flanked by the Bungo Channel, a rich fishingground and low hills, and is famous for its mild climate andbeautiful landscape. It developed during the Edo period
and Meiji era as an orange-growing region and limestone
quarry site. Tuna fishing was also common there, mainlyin the waters around Hodo Island during the Taisho andShowa eras. When walking around the plant we cameacross a quarter called “Cement-cho” (the cement quarter),which reminded us of the city’s distinctive history andassociation with the cement industry.
The Tsukumi region produces the largest quantity oflimestone in Japan. It boasts some of the highest quality
limestone as well, with reserves estimated to be about fourbillion tonnes. The Oita plant is situated in an ideal spot fora cement plant with a large vein of limestone along theback side of the facility. At its front is an excellent natural
port. Sakura Cement Co., Ltd., originally started operationsin 1917. The plant was then merged with Onoda Cement
Co., Ltd., a predecessor of Taiheiyo Cement, when Onoda
Cement started operations in the city in 1938. After a seriesof successive reorganizations it ultimately became thecurrent Oita plant of Taiheiyo Cement and marked its 100th
anniversary in October 2017.

16

TAIHEIYO CEMENT CSR REPORT 2019

Operating a Large-scale Quarry that
Produces High-quality Limestone
Four mining companies quarry 24 million tonnes oflimestone a year in the Tsukumi region. One company alone,
Oita Taiheiyo Mining Corporation, Shin-Tsukumi Quarry,
annually produces 11 million tonnes. Shin-Tsukumi Quarry
operates two quarry sites, the Negaidera and Kyosai zones.
Limestone quarried in these places is used as a primary raw
material for cement as well as for the steel, chemical andother industries.
Limestone is quarried using what we call the “Bench
Cut” method, which requires blasting by explosives toextract the limestone on terraces while securing a flat, safe
work area. In the Shin-Tsukumi Quarry, we reduce vibrationand noise by lowering the level of the bench on the urban
side. Limestone crushed by blasting is injected into what werefer to as a “vertical shaft” with large-scale heavy machinery.

After that, it is further crushed and screened by equipment
in and outside the pit so that it can be processed into
final products such as raw materials for cement plants
and other uses. The Tsukumi Quarry is very close to theplant, just three kilometers away, which facilitates theefficient transportation of the limestone. Some products
are directly shipped to domestic and overseas destinations
from the shipping berth adjacent to the plant. The plant
has adopted several measures to protect the environment,such as reducing dust, using sprinkling vehicles and bag
filters, and preventing the discharge of turbid water withsedimentation tanks.
The quarry is being prepared for next-generation
operations in the coming 100 years. We are currently
implementing environmental impact assessments on
the construction prior to its commencement, and we willsubsequently conduct ongoing assessments to predict andevaluate the future impacts of the quarry development.

Production Process for Limestone
Ganji zone

Kyosai zone
Breakdown of shipment
destinations■ Other usages(e.g., for steel making,chemicals, and aggregates forconcrete)

Blasting
New No. 2
vertical shaft

New No. 1
vertical shaft

For other
uses

45%

Perform blasting byfilling the holes drilled bydrilling machines with
explosives.

Raw material
for cement

Quarry slopes formed
after the closure of thequarry are restored bycovering them with soil
or planting greenery.

Undergroundcrushing chamberPrimary crusher■ Raw materials

Annualshipment volume

for cement

11,712,000

55%

tonnesFiscal 2018

West 1
verticalshaft

West 2
verticalshaft

East 1
verticalshaft

Undergroundcrushing chamber
Plant equipment

Secondary crusher
Shipment
Long-distance belt conveyor

Belt conveyor tunnel

Plant equipment

Raw material yard of
the Oita plant

Shin-Tsukumi Quarry

To cement plants

TAIHEIYO CEMENT CSR REPORT 2019

17

2

3

4

5

1: Pre-heater and No. 4 and No. 5 kilns
4: Storage yard for limestone
2: Belt conveyors running in the plant
5: Central control room with lines of monitors
3: Overview of the Shin-Tsukumi Quarry from the plant

1

Realizing the Stable Supply of Highquality Cement Products
The Oita plant has a production capacity of 4.5 million
tonnes of clinker a year which is used to produce cement
products, particularly Portland cement and blended
cement. The advanced production process includes threekilns and other production facilities as well as energyefficient equipment that prevent pollution.
The central operations monitoring system in the central
control room remotely manages the entire production
process from raw material and burning to finishing. Its
automated system ensures stable quality and processing
while reducing or saving labor. The plant is also equippedwith a waste heat power generation system using heat fromthe kilns and a thermal power generation system using
fuels such as coal, oil and petroleum coke. The in-house
power generation ratio exceeds 85%. In addition, the plant
strives to provide stable-quality products by operating aquality control system in compliance with ISO 9001. Fully
aware that systems operating over long periods tend to lackextensive reviews, we are focusing on retraining employees
in charge of system checkups and operations.

6
Shipping berth where export ships are moored

Overview of the Oita Plant
Land area:

As Taiheiyo Cement’s sole production plant in westernJapan, the Oita plant plays a crucial role and assumes key
responsibility for the stable supply of cement in that partof the nation. Furthermore, it is the largest export base for
Taiheiyo Cement. The Oita plant is located along a rias coastwith both calm and deep water, and operates three berths
capable of mooring 60,000-tonne tankers. The plant istherefore ideally located for marine transport by large ships
for exporting cement, clinker and limestone, and importing
coal. Given these advantages, half its production volume isexported to Taiwan, Singapore and other Asian countries aswell as Africa and Oceania.

Cement production volume471,000 m² 4,680,000
tonnes/year
Production capacity of the kilns

13,400tonnes/day

3,800 tonnes/day
4,800 tonnes/day
No. 5 kiln: 4,800 tonnes/day
No. 3 kiln:
No. 4 kiln:

Power generation capacity

74,000 kW 18,000

Waste heat power generation:

kW

Thermal power generation:

Port facilities (Berths A, B, D)
Water depth:

13 m

Cement plant

56,000 kW

Berthing capacity:

In-house power
generation ratio:
more than85%

60,000 tonnes

Export43%

Shipment volume
of cement

1,992,000 tonnes
Clinker
1,458,000 tonnes

Japan

57%

2,688,000 tonnes

Total
shipment volume4,680,000

Blended cement
933,000 tonnes
Portland cement
2,289,000 tonnes

tones

Fiscal 2018

18

TAIHEIYO CEMENT CSR REPORT 2019The Oita Plant

Promoting the Recycling of Waste
Today cement plants play an essential role in the recyclingof waste and by-products generated in Japan.
The production process of cement plants has thecapacity to utilize a large volume of household andindustrial waste and by-products as alternative raw
materials and fuels. Treatment in cement plants yields thebenefit of generating no secondary waste. Cement plants
can therefore contribute to realizing a recycling-basedsociety by reducing the consumption of resources as well as
environmental impact.
The Oita plant primarily accepts coal ash, construction
soil, bottom ash, waste oil, waste plastic and wood chips.
In turn, it recycles 1.82 million tonnes of waste and byproducts a year. Fly ash generated by the incineration ofmunicipal waste in waste treatment facilities has long been
considered difficult to recycle as a raw material for cement
production. The plant began accepting fly ash in fiscal 2019.
After installing equipment to remove the high-concentration
chlorine contained in the fly ash, the plant has become
capable of treating 15,000 tonnes of it a year. As a result, it will
significantly contribute to extending the lifetime of landfills in
Oita Prefecture and other regions in Japan.

7

8

9 10
7. Treatment facility for wood chips and waste straw mats (tatami mats)
8. Used tires recycled as raw material and fuel9. and 10. Crushing facility for waste plastic

11

12

13

11. Vehicle to transport recycled raw
materials and fuels
12. Waste plastic treatment facility
13. Inside of waste treatment facility
14. Control room of the recycling facility
15. New facility for washing fly ash

14

15

Operating in Collaboration with the
Local Community
The Oita plant places a premium on collaboration with local
governments. Taiheiyo Cement concluded the Agreement
on Promoting the Creation of a Recycling-based Society
with Oita Prefecture and Tsukumi City governments in
December 2016. Beyond the explicit promise of its title,
the agreement stipulates: “In preparation for a large-scaledisaster with an epicenter offshore of the South Sea Trough,the Parties shall routinely maintain a system to treat waste
generated by a disaster.” Therefore, the Oita plant’s business
operations become part of an effective social infrastructure
for treating waste in Oita Prefecture.
A large volume of waste was
generated throughout Tsukumi City
after a disastrously heavy rainfall
and subsequent flooding in March2017. The plant accepted 14,000
tonnes of wood chips and debris
16
and treated them for recycling. The
local governments and residents
appreciated our contribution to thequick recovery from the disaster.

Voice

16. Sludge vacuum truck supporting restoration work after
the flood
17. Debris generated by the flood

17

Meeting domestic and overseas demand for cementfrom our base in Tsukumi

Yoshihito Izawa
Manager of the Oita plant

The limestone resource that the Oita plant
processes is famous for its excellent quality. The
plant leads the international cement industry
in the field of production and environmental
technologies. Although our Shin-Tsukumi Quarry
possesses 20 to 30 years of deposits, overseas
demand for cement will continue to grow,particularly in emerging countries. We believethat the mission of the Oita plant is to meet thisdemand and hand down our expertise in the
cement industry to the next generation, andcurrently we are preparing to develop new quarries

in recognition of that responsibility.
The year of the flood that struck Tsukumi
City happened to be the 100th anniversary of ourplant. The disaster thus further reinforced our close
ties with the local community. As we continue toimprove the quality of our cement products wewill also ensure employee safety, conserve theenvironment and earn the trust of the community.
We are committed to pursuing opportunities
to ensure that our continued operations in thecity over the next 100 years contribute to thedevelopment of the community as well.

TAIHEIYO CEMENT CSR REPORT 201919

Our Commitment to:20

Management

P. 22

The Environment

P. 34

Collaborating with Society

P. 50

TAIHEIYO CEMENT CSR REPORT 2019

The Oita Plant

TAIHEIYO CEMENT CSR REPORT 201921

Management

Icons are related to UN SDGs
(see page 10−12 and 72 for details)

CSR Management
We aspire to be a pioneer in the creation of a sustainable future for the earth. To achieve this group aspiration we established
the CSR Management Committee as a means for sharing information about CSR issues and activities across departments, andaligning our CSR initiatives with our business operations.

Corporate Framework for CSR

Taiheiyo Cement Group»»GRI 102-15, 16

Management

The Mission of the Taiheiyo Cement Group is the highest
level concept and guiding principle of our businessactivities. Our Business Principles present more specificguidelines for action based on the Mission.
The vision and direction targeting the mid-2020s has
been established as our vision for the future based on theMission to present the value and direction of the group in
qualitative terms.
The Medium-Term Management Plan sets forth ourmanagement strategy and targets for the next three
years, while the CSR Objectives for 2025 are long-term,
quantitative CSR targets. We strive to realize our vision anddirection based on these targets.

*The Mission of the Taiheiyo Cement Group: page 4; Business Principles: page 4; CSR Objectives
for 2025: page 5

Basic Policy for Promoting CSR Management»»GRI 102-16
The Environment

We promote CSR management in accordance with our
CSR guidelines which specify actions that are essential for
realizing the Mission of the Taiheiyo Cement Group andimplementation of our Business Principles. The guidelines
direct the company in conducting activities in and outsideof the business that fulfill our social responsibility while
we pursue sustainable growth for both the company andsociety as a whole. Moreover, they lay down basic policies
for promoting CSR management.

CSR Management Promotion System»»GRI 102-18, 19, 20, 21, 28, 29, 30, 32

Visionanddirection

Medium-Term
Management
Plan

Busin

Business strategies
ess P
rinciplesBasic Policy for Promoting CSR Management
1. Based on our Mission and Business Principles, the company
will clarify the ideal form of CSR management to be pursued
and strive to advance operations based on CSR.
2. Promoting a corporate culture that places great importanceon compliance, we aspire for all directors and all employees
to always make the most appropriate independentjudgments.
3. We will manage the company with awareness that oursocial mission includes environmental protection, defense ofhuman rights and contribution to communities.
4. We will proactively engage on key CSR issues and undertakethe most appropriate prioritization and resource allocation.
5. We will practice appropriate information disclosure andcommunication with stakeholders, based on the status of
our CSR management promotion, and build relationships oftrust.
6. We will treat CSR management and promotion as a groupwide activity.

CSR Management Promotion System(CSR Management Committee and Specialized Committees)
Board of Directors
Core subjects ofChair: President
social responsibility CSR Management Committee Secretariat: CSR group of Generalin ISO 26000
Affairs Department• Human rights• Community involvement• The environment and development• Consumer issues

AuditInternal Auditing Department

Specialized committees

TAIHEIYO CEMENT CSR REPORT 2019

Stakeholder
Communication Committee

Group companies

Environmental
Management Committee

Quality Assurance &Product Liability Committee

Human Rights & Labor
Practice Committee

Health & Safety
Committee• Human rights• Labor practices

Information Security
Committee• Organizational governance• Fair operating practices

All business sites

22

CSR
Objectives
for 2025

Strengthening
management foundation

Risk Management &Compliance Committee

Collaborating with Society

To promote our CSR management we have created a crossdepartmental CSR Management Committee, chaired by thepresident with all board directors as members, under the
direct oversight of the Board of Directors.
The CSR Management Committee’s role is to screen
CSR action plans and other material items, and review theirprogress. Reporting to this committee are seven specializedcommittees for individual CSR subjects, each chaired by
the director responsible for that area. The department
most closely associated with any given issue acts as thesecretariat for the related committee.

Missionof the Group»»GRI 102-27

Date

Companies in
Attendance

Topic

91

• Waste Management and Public Cleansing Law
and disqualification requirements under the Law• Anger management, which helps prevent
harassment• Implementing the “Four management value
principles system and compliance practice”

November
2018

CSR Report Presentations
Date
October toNovember 2018

Location

Attendees• 17 sites, including the headquarters, branches,
plants and central research laboratory

733

Results of the Questionnaire Survey on CSR Report Presentations(FY2018)
No reply

6.7%
(49)

Should continue
next year

No need

31.5%
(231)

FY2018

61.8%

(453)

Collaboration with External Organizations»»G102-11, 12, 13

Risk Management andCompliance

Executive-level CSR Training (FY2018)

Corporate Governance

We provide CSR education through training programs foreach position, including sessions for newly hired employees,
follow-up courses for second-year employees, careerdevelopment (around ten years after joining the company)
and training for newly appointed managers. For education
on specific issues such as human rights, each specializedcommittee provides the relevant training programs. We also
conduct executive-level CSR training once a year, including
for group companies.
In fiscal 2018 we continued to conduct CSR reportpresentations at all our business sites, either through site
visits or teleconferencing. We also conducted a questionnaire
survey after the presentations, an activity that 62% of the
respondents indicated we should continue next year.

in the GCCA’s activities.
The association succeeded the activities of the Cement
Sustainability Initiative (CSI), a sector project of the World
Business Council for Sustainable Development (WBCSD),
in January 2019. Under the strategic partnership, theGCCA collaborates with the WBCSD toward sustainable
development.
The WBCSD-CSI and GCCA deal with important matterssuch as responding to climate change, the effective use of
raw materials and fuel, reduction of air pollutant emissions,biodiversity, global water issues, employee health andsafety, and supply chain management. Members have set
up working groups that are working toward resolving eachissue while also developing key performance indicators(KPIs; see page 70 for fiscal 2018 performance) and various
guidelines to meet the challenges. Member companies
set and publish their individual targets in areas such as
emissions reductions and take their own actions to create asustainable society.
With respect to climate protection in particular, the
CSI has developed a common methodology for calculating
CO₂ emissions and energy use, a standard CO₂ and energy
protocol for reporting by the world’s cement companies,
and a regime for providing highly reliable information onenergy usage and CO₂ emissions. The CSI also built a global
database and reports actual CO₂ emission volumes andenergy use data for a significant number of the world’s
cement plants. We recognize that issues the WBCSD-CSI
and GCCA address are the same as the company’s key
management challenges, which is why we are working
diligently to tackle them.

CSRManagement
CSR Management

CSR Training and Education

⿪⿪Participation in the Industrial Federation for Human
Rights, Tokyo
We participate in the Industrial Federation for Human
Rights, Tokyo. Established in November 1979, the federation
now consists of 123 companies (representing about 1
million employees as of April 2019), most of which areheadquartered in Tokyo. Under its basic philosophyof voluntary management and full participation, thefederation endeavors to resolve the issue known as Dowa, adiscrimination issue in Japan, and other human rights issues.

⿪⿪Global Cement and Concrete Association
The Global Cement and Concrete Association (GCCA) was
founded in 2018 as a trade association for the industry. Asa founding member company, Taiheiyo Cement is the sole
Japanese cement and concrete manufacturer participating

TAIHEIYO CEMENT CSR REPORT 201923

Management
Results of FY2018 CSR Efforts »»GRI 102-11, 44
Plan
Organization

Results

See
Evaluation Also

Risk Management & Compliance Committee

1. Continually improve risk management based on PDCA cycles, including group companies, respond to new risks, and enhance efforts to resolve existing issues• Comply with the Amended Air Pollution Control Act (mercury);
establish control method• Enhancement of information security• Product/service accidents• Aging of facilities and equipment• Preventing traffic accidents• S trengthening of overseas crisis management measures

Management

Organizational Governance and Fair Operating Practice• E nhancement of group corporate governance including risk
management and the compliance system• Work-related accidents• Response to shortage of human resources•C ontinuous improvement of risk management using PDCA
cycles• Responded to by the Environmental Management Committee, which conducted a review during the meeting.

○

28–30

• Updated anti-malware software.
• Conducted a third party investigation into information leaks, and no leaks of corporate information were identified.
• Amended each quality assurance standard for cement, cement-related products, and mineral resources products.
• Formulated and established an emergency response manual for cement-related products and mineral resources products.
• Verified a relevant group company’s contact system when an accident occurred and the state of responses to complaints.
• Provided guidance to relevant group companies on raising awareness of quality data falsification.
• Implemented maintenance/renewal work as planned and no incidents were associated with the aging of equipment.
• Responded to by the equipment division and relevant division of non-operating business units; the committee conducted a review
during the meeting.
• Explained to and exchanged opinions with representatives of overseas business sites on the Guideline on Overseas Crisis Measures(evacuation manual) and revised it.
• Launched an e-learning program to overseas group companies for overseas anti-bribery measures.
• Presented a lecture and training session on compliance for group executives and a workshop for risk management and compliancepromoters in November.
• Implemented countermeasures to reduce risk of being disqualified as a waste treatment operator.
• Achieved zero fatalities (CSR Objectives for 2025).
• Relevant division explained and exchanged opinions on various measures to deal with the shortage of employees, drivers and business
partners.
• Strict guidance provided to each business site with regard to including risks assessed as either C or D in FY2017 as part of a voluntary
review of the FY2018 risk countermeasures action plan, and an aggregate report from all business sites showed 94% of items assessed
rated A or B.

○

28–30

○

28–30

○

28–30

○

28–30

○

28–30

△
○

28–30

○
○

28–30

○

28–30

○

28–30

○

30–31

2. Further raise awareness of compliance• Improve education/training programs and provision of
information

Organization• Ensured that all employees have taken a monthly e-learning program (participation ratio: 74.3%).
• Distributed the Standard of Conduct Casebook to new group company employees.
• Implemented training (response to disasters) for risk management and compliance promoters at business sites (head office andbranches).

Information Security Committee

1. Enhance Information Security Management System and ensure its ongoing operation and improvement• Maintain and manage the company’s information security• Strengthen group information security structure• No case required the holding of the committee’s extraordinary meeting.
• Conducted a disaster recovery drill in March, which was planned to last 5 hours and 40 min but actually lasted 7 hours and 40 min;activation was delayed in 3 systems; and we improved procedures and a setting.
• One set of computers and some files on a file server were infected with ransomware, and their use was suspended at a groupcompany.
• Result of information security level survey: 2.8 (average) (last year: 2.8).
• Introduced concrete initiatives on priority items at a meeting of group companies’ information divisions.
• Made follow-up visits to 1 group company: Taiheiyo Precast Concrete Industry.

○31△

2. Implement security countermeasures based on the plan
• Improve the security level by implementing information
security-related projects• Ensured the compatibility of company systems with Windows 10 and started to distribute Windows 10 computers in the second halfof September.
• Updated antivirus software.
• A vulnerability check was conducted by an external expert; no corporate information leaks were identified.

○31• Conducted information security training in position-specific courses (5 sessions); published security news (2 sessions); conducted ane-learning program (1 session); and provided materials to group companies (5 times).

○31

3. Conduct education/training/awareness-raising programs• Raise employee awareness of security across the group
4. Monitor and assess the status of information security

The Environment• Promote the appropriate use of information through periodic
monitoring•C onduct an internal information security audit• Detected a virus due to the access of attachments or links of suspicious e-mails (20 cases); implemented response drills in February
and March.
• Monitored file transmissions to external parties; and monitored suspicious application transmissions by exit countermeasures; no
incidents were found.
• Conducted paper audits; conducted on-site audits (2 business sites).

○

31

○

5. Continue operation and improvement of the Personal Information Protection Management System• Set up a task force and respond to issues when necessary• Verify and respond to the state of compliance, education
and audits

Organization• Loss of company smartphones: 4 cases; however, there was no possibility of insider information leakage.
• Responded to GDPR (EU’s General Data Protection Regulation).
• Stored e-mail address book on the cloud following a change of e-mail software; explained to and obtained consent from groupcompanies that share the e-mail address book (continued shared use of the book).

○

31

○

56–57

○

56, 60

○

56–57

○

23

Human Rights & Labor Practices Committee

1. Raise human rights awareness and continue training programs throughout the group• In-house training and awareness raising

Collaborating with Society

Human Rights and Labor Practices•C onduct measures to prevent harassment based on findings ofthe questionnaire survey on harassment• Training in and raising of human rights awareness for groupcompanies• The Industrial Federation for Human Rights

2. Continue to achieve Statutory Employment Ratio for Persons with Disabilities and promote their working opportunities• Review and implement the Medium-term Persons with
Disabilities Employment Plan

FY2018 results: Taiheiyo Cement 1 employed; Nippo Onoda Corporation 2 employed; Taiheiyo Service Corporation 1 resigned, Nippo
Onoda Corporation 2 resigned; conducted visits to schools and teachers’ visit to workplaces; collaborated with organizations that
support persons with disabilities; participated in an event to promote the employment of persons with disabilities.

○

58• Respond to issues related to special purpose subsidiaries• Reviewed the system of Taiheiyo Service Co., Ltd. (reviewed the wage system in April 2019; created and introduced the severance pay
program in May 2019).

○

58

○

56–59

○

57

△

59–60

○

07,
56–61

3. Report the state of initiatives to address issues related to human rights and labor practices• Report the state of initiatives for the empowerment of womenand group-wide improvement of operational efficiency andefforts with regard to human rights and various labor-related
issues in the promotion of group human resources• Report the state of implementation of education/training andglobal human resource development programs based on the
new training system• Report the state of initiatives to promote the health of
employees• Progress of CSR Objectives for 2025

24

Human rights training courses by position and other training type (attendees included group company employees):(1) Top-management seminar for group companies in November on anger management that helps prevent harassment (lecturer: Kumi
Toda, Japan Anger Management Association): 125, (2) Training for new employees in April: 151, (3) Follow-up training (employees with a
one-year career): 95, (4) Communication + on-the-job training (staff employed for four years): 71, (5) Career development training (leader
and sub-leader): 78, (6) Training for newly appointed managers in July: 36, (7) Training for foremen in February: 18, and (8) Techno-school
special lecture in July: 7.
(1) Distributed top management’s message on prevention of harassment and attached the message to a booklet on harassment
prevention, (2) Added harassment provisions to working rules in April, (3) Conducted the second questionnaire survey on harassment inApril and published its findings on a group bulletin board in August, and (4) Planned and conducted training based on findings related
to the analyzed current state of the company and planned appropriate countermeasures.
(1) Supported participation in our training program by position and conducted training at Kansai Taiheiyo Kosan Co., Ltd. while
confirming the fair recruitment of 27 staffers in charge of recruitment at 26 group companies; and (2) Distributed copies of the bookToward Tomorrow (issues 58 and 59), published by the Industrial Federation for Human Rights, Tokyo, and materials related to humanrights.
• Participated in meetings (training sessions, group meetings, working group, etc.).

TAIHEIYO CEMENT CSR REPORT 2019

• Conducted an initiative to change summer lifestyles from June to October.
• Promotion of the wider use of the flextime system and Early Leaving Office Day (Wednesday and Friday) throughout the year.
Conducted the Premium Friday initiative.
• Held the second (October) and third (November) Diversity Forum.
• Created the second-term working group in July 2018; and reviewed the possibility of introducing teleworking.
• Reviewed the Elder Temporary Employee System.
• Undertook the overseas trainee program (at the Production and Facilities Departments and the Central Research Laboratory): 3 fromthe Philippines, 3 from Vietnam and 1 from U.S.
• Foreign scholarship: dispatched 1 person to the U.S.
• Planned to revise the global human resource development program, effective in FY2019.
• Implemented specific initiatives on the following three items approved at the Employees Health Promotion Committee:(1) Tracking health management data, (2) Enhancing health guidance on lifestyle disease, and (3) measures to prevent mental disease.
• Ratio of female employees under “G Course” categories to at least 30%; FY2018 36.4% (20 of 55 new recruits; FY2019 20% (14 of 70 ofthem), April 2018: 36.4%• Ratio of female employees of at least 10%: 8.8%, as of February 11, 2019 (204 of 2,328 employees)• Ratio of newly appointed female managers to 10%: 0%, (0 of 25 employees) as of March 11, 2018; 3% (1 of 33) as of March 11, 2019

Plan
Organization

See
Evaluation Also

Results

Health & Safety Committee(1) Fatalities for the group: zero (CSR Objectives for 2025)(2) Lost-time injuries for the group: 30 or less(3) Number of work-related accidents for the group: 80 or less(4) Absence rate (non-consolidated): 0.3% or slightly higher• Held the company’s Health & Safety Committee every quarter and verified statistical data.
• To prevent the recurrence of accidents, discussed and developed measures to be rolled out horizontally while taking into account thefrequency and seriousness of accidents;
FY2018: (1) fatalities: 0, (2) lost-time injuries: 39, (3) number of work-related accidents: 85 (4) absence ratio: 0.647%.

△

06–07,
62–64• Conducted safety patrols at group companies.
• Distributed messages about National Safety Week, National Occupational Health Week and the no-accident campaign at year-end andduring the New Year holidays.
• Committee members conducted patrols (Tokyo Concrete Co., Ltd.); Safety Management G conducted patrols for group companies:
TCPI, Hanoi DT, Saigon RDC, Central Research Laboratory, Taiheiyo Materials Corporation (Onoda), Onoda Chemical Industry Co., Ltd.
(Onoda, Moji), MITSUI WHARF Co., Ltd. , Yakushima Denko Co., Ltd. , Clion Co., Ltd. (Kanto).
• Enhanced management by designating business sites that required special attention in the areas of safety and security: excluded onesite in FY2018.

○

62–64

• Revised the Health and Safety Rules to be applied to group companies; revised the organizational chart for Health and Safety (121 →151 companies).

○

62–64

• Conducted stress checks in October and reported the results to the committee in March.

○60• Reviewed and revised each of the regulations on cement and cement-related and mineral resources products.
• Conducted group training to ensure smooth operations of the QMS system in July and September.
• Reviewed and formulated the rules of the method to manage business sites positioned as subcontractors in line with the streamliningof operations.

○

50–51

○

50

• Reviewed the quality standards in Quality Assurance Regulations.
• Strictly complied with internal standards for minor component concentrations and radioactivity levels.
• Reviewed the creation of the Manual for Emergency Response for all products.

○
○
○

50–51
50–52
30, 50• Verified the contact system when quality deficiency occurred; verified the state of response to quality complaints; raised awareness ofquality data falsification; and addressed issues related to the review of the response we took by FY2017.

○

50–52

○
△
△

50–51,
54–55• Revised the Environmental Management Policy on April 1; revised the Environmental Manual on May 7 and December 25.
• Revised 4 regulations of low-level documents.
• Implemented a program to train EMS internal auditors (42 participants) and another for follow-up training (120 participants).

○

34–35

• Reduced by 7.8% (reduction rate: −0.2%/year) for FY2017 from the FY2000 level at the company and in the group, including overseas
companies.

○

05,
36–37

(1) B
 enchmark index by sector of 3,739 MJ/t or less (including shipment) for FY2020: the result for FY2018 was 3,688 MJ/t (decreased by
100MJ/t from the FY2017 level).
(2) R eduction of energy consumption per unit of cement production by 125 MJ/t from FY2010 levels by FY2020: decreased in FY2018
by 78 MJ/t from FY2017.
(3) Reduction of greenhouse gas emissions from FY2015 to FY2019 by 13% from FY2005 to FY2007: reduced by 26% in FY2017.

○

36–37

• Supported the filing of the installation of facilities that emit mercury; verified and supported the state of initiative at each plant; andprovided information to affiliates and supported them.

○44• Conducted initiatives related to Environmental Month (distributed the president’s message, promoted initiatives at each businesssite and reported results) and took advantage of the environmental portal site; reduced electricity consumption; raised awareness of
biodiversity; and reported these initiatives in an in-house newsletter.

○35• Created regulations on environmental management and started related operations at each group company in April (102 companies).

○

─

61

2. Promote health and safety activities• Group-wide basic safety activities to achieve CSR Objectives
for 2025.
• Promote concrete activities to reduce accidents• Provide information quickly after an accident occurs• Horizontal roll-out of countermeasures taken by the accident site
• Prevent the occurrence of serious or frequent work-related
accidents at specific business sites and affiliates
3. Review the health and safety system•C heck countermeasures taken after an accident occurs

CSRManagement
CSR Management

Human Rights and Labor Practices

1. Companywide Health & Safety Committee—Objectives

4. Promote compliance

Organization

Quality Assurance & Product Liability Committee

1. Quality Management System• Improve the system: revise the quality control rules to reduce risks• Ensure the operation of QMS (ISO9001) related to the cementbusiness

Corporate Governance• Ensure that the requirements of the central government andadministrative bodies are met

2. Quality Risk Management

3. Response related to group companies• Improve quality assurance system for group companies

Human Rights, the Environment, Consumer Issues, Community Involvement and Development

4. Countermeasures for quality deficiency and complaints: initiatives to improve customer satisfaction• Cement products(1) Serious claims: 0 (0)(2) Claims: 13 (10 or less)(3) Quality deficiency: 14 (15 or less)• Reduce the number of claims and quality deficiencies(targets for FY2018 are shown in parentheses)

Organization• Cement-related products: Mineral Resources + Environmental(1) Serious claims: 0 (0)(2) Claims: 2 (0)(3) Quality deficiency: 2 (0)Risk Management andCompliance• Identify customer needs and establish quality standards• Countermeasures against individual quality compliance risks• Appropriate response when a serious quality problem occurs

Environmental Management Committee

1. Promote company-wide EMS• Set EMS objectives and targets, and plan, operate and evaluate
EMS
2. Countermeasures to mitigate climate change•R educe greenhouse gas emissions (CSR Objectives for 2025):
reduce specific net CO2 emissions per tonne of cementitious
product by 10% or more from FY2000 levels by FY2025 (by-0.41% from FY2017)•R eport to and cooperate with people outside the company on
countermeasures to mitigate climate change(1) Comply with the Energy Conservation Act and the Act on
Promotion of Global Warming Countermeasures(2) Follow up Commitment to a Low Carbon Society Action
Plan and Agenda for Action, a voluntary action plan of
the industry(3) Saitama Prefecture Action Plan (second planned period)
3. Environmental risk (air pollution) measures• Followed up response to the enforcement of the regulations
on mercury contained in emissions.

4. Education, awareness raising and information dissemination regarding the environment•C ollect and provide information on environmental issues
5. Promote initiatives across the Group• Launch and establish group-wide initiatives

Organization

Stakeholder Communication Committee

1. Activate communication within the company• Instill the management policy• Held discussion sessions with executive officers at 18 business sites with 1,228 participants and verified their effectiveness through aquestionnaire survey.

○• Communicate company activities• Held CSR report briefing sessions at 17 business sites (733 participants) and verified their effectiveness through a questionnaire survey.

○

23• Identify issues to address and measures to take in order toactivate internal communication• Made this effort at a meeting for regional risk communication staff and the CSR report task force.

○─• Published the CSR report in Japanese in September and in English in October and reported in accordance with the core criteria of the
GRI Standards 2016; updated the website.

○72• Responded to DJSI, CDP, the Japan Research Institute, Toyo Keizai, the Good Bankers Co., Ltd., etc., and was selected as an excellent
company in the Asia Pacific region in the DJSI survey for the fifth consecutive year; and acquired the DBJ environmental rating Grade A.

○─• Held an event to commemorate the 20th anniversary of the plant; held a picture drawing competition for elementary school children
at the plant: 461 pictures were submitted with applications; awarded one 20th anniversary memorial prize for each plant and 51
excellence prizes; held a photo competition: 135 photos were submitted with applications; and selected one 20th anniversary
memorial prize and two excellence prizes as well as ten honorable mentions.
• Built and operated an information database related to local communities.

○

66–69

• Created a section for introducing group companies in in-house newsletter and started to exchange information.

○

65• Held in December (96 companies participated).

○23• Implemented in April and October.

○─• Held the 27th roundtable on legal issues related to labor practices in July (8 companies; 14 participants).
• Held the 28th roundtable on key points of Amended Civil Code and its impact on operations; and provided a practical response to theamendment in November (88 participants from 89 companies).

○31

2. Develop and publish the CSR report•P ublish CSR Report 2018 in Japanese at the end of September
and in English at the end of October
3. Response to the SRI Survey, etc.
• Respond to principal CSR-related external surveys such as
the SRI Survey
4. Promote communication with society• Promote activities to communicate with local communities

5. Promote Committee’s activities at group companies• Create means to exchange information on group companies’
activities.

Organization

Others• Hold a CSR Workshop for group executives• Periodically report relevant information about groupcompanies to local communities (twice per year)• Hold group legal roundtables

Note: The content in the “Results” column has been prepared using information reported by specialized committees as of the end of March 2019.

TAIHEIYO CEMENT CSR REPORT 201925

Management
Corporate Governance
Strengthening corporate governance is essential in order to increase corporate value and fulfill our commitment toshareholders and all other stakeholders. As a reliable company we continuously strive to ensure the sound management of
our organization.

Taiheiyo Cement Group Management
Organization»»GRI 102-18, 19, 22, 23, 24, 28, 29, 30, 33, 35, 36, 37

Management
The Environment

⿪⿪Corporate Governance System
Based on a resolution of the Board of Directors, we strive toensure the sustainable growth of the company and mediumto long-term increase in corporate value by continuously
improving our corporate governance in accordance with
the Taiheiyo Cement Corporation Basic Policy on Corporate
Governance established on December 22, 2015.
Our organizational structure is anchored by our
Board of Directors and Board of Auditors. We have also
introduced an executive officer system in order to separate
management decision-making and monitoring/supervisory
functions from business execution.
We have a Corporate Auditor’s Office consisting of 1
manager and 2 subordinates, which comprehensively supports
corporate auditors in performing their duties, including theprovision of previously released information. Our Internal
Auditing Department conducts internal audits, identifies issues
that require improvement and reports audit results to thepresident to increase the effectiveness of internal audits.
Also, our CSR Management Committee determines
the ideal direction for our business activities from theperspective of CSR and promotes the strengthening ofcorporate governance.
In fiscal 2018 we held 15 board meetings, with
absences in 4 meetings (1 director was absent for 1 meetingand 1 auditor was absent for 3 meetings).
Corporate Governance System
General Meeting of Shareholders
Appointment/removal

Appointment/removal
Audit

Board of Auditors

Accounting Auditor

Assistance
Corporate
Auditors’ Office

Board of Directors(Management decision-making
and supervision)

Appointment/removal

Collaborating with Society

Audit
Selection/
removal/supervision
Representative Director

ReportReportManaging Executive Officer

CSR
Management
Committee

Executive Committee(Review important matters)
Final decision/
instruction/
supervisionInternal
Auditing
Department

Executive Officer
Headquarters, branches, plants,
Central Research Laboratory (business execution),group companies

26

Appointment/removal
Cooperation

TAIHEIYO CEMENT CSR REPORT 2019

Audit

For decision-making
and businessexecution tasks
requiring high levelsof expertise, we
receive advice fromconsulting law firms,
management
consultants andother experts.

Overview of Corporate Governance System (as of June 30, 2019)
Area

Number of People

Organizational structure

Company with board of auditors

Board chairman

Chairman and director

Number of board directors(female board directors)

14 (1)(one-year term)

Number of outside directors(independent directors)

2 (2)Executive officers system

Yes

Number of corporate auditors(female corporate auditors)

4 (1)Number of outside directors(independent directors)

2 (2)Major Meetings Held in FY2018
Meetings

Attendance Rate of
Outside Directors

Meetings Held

Board of Directors

15

95%

Board of Auditors

13

100%

Executive Committee

23－

⿪⿪Evaluating the Effectiveness of the Board of
Directors
In accordance with the Basic Policy on Corporate
Governance, we annually analyze and evaluate the overall
effectiveness of the Board of Directors.
In fiscal 2018 we engaged all directors in a selfassessment survey, after which the results were analyzed
and evaluated by the board chairman and outside directors,
and reported to the Board of Directors for future discussion
and confirmation on related issues and measures.
As a reflection of these efforts, the Board of Directors
is considered to be generally well managed and its overall
effectiveness ensured, although further ingenuity andimprovements are required.
⿪⿪Appointment of Board Members
The president proposes candidates for board directors
and auditors to the Board of Directors, including outside
directors, in accordance with the Basic Policy on Corporate
Governance. After deliberation and decision by the Boardof Directors candidates are recommended at the General
Meeting of Shareholders and appointed based on its
resolution. For nomination of auditors, the president proposes
candidates to the Board of Directors with prior approval fromthe Board of Auditors, including outside auditors.

⿪⿪Appointment of Outside Directors
Outside directors are appointed in accordance with ourcriteria for their independence.

The Taiheiyo Cement Group discloses information as
required and in accordance with Japan’s Corporate
Governance Code, outlined below.

Outside Directors (as of June 30, 2019)
Attribute

Reason for Appointment

YoshikoKoizumiLawyerExtensive experience as a lawyer and broad
insight into corporate legal affairs

Yuzo Arima

Former director ofanother company

Abundant experience as a business manager
and keen insight into overall management
issuesDisclosure by
Principles▪ https://www.taiheiyo-cement.co.jp/english/
About Us → Corporate Governance

Annual Remuneration of Board Members (FY2018)
Board Members Who
Received Remuneration

Amount of Remuneration
Paid (Million Yen)

14

827

Board directors
Corporate auditor

4

72

Total

18

899

Internal Control System»»

GRI 102-30

In accordance with our Basic Policy for Building an Internal
Control System we are creating a system that will enable
us to enhance various activities from the following threeperspectives: (1) efficiency of business operations, (2) risk
and compliance, and (3) financial reporting. Under thispolicy our Internal Control Report has confirmed thatinternal control over financial reporting for fiscal 2018 waseffective. An auditing firm we appoint has expressed its
opinion that the report was appropriate. In the Business
Report for fiscal 2018 we have presented an overview
of system operation to ensure the proper execution ofoperations in accordance with the basic policy.

Report*3●

Principle 1.4

Cross-shareholdings

Article 22

Principle 1.7

Related party transactions

Article 23

Principle 2.6*4Roles of corporate pension
funds as asset owners
Company objectives (e.g.,
mission), management
strategies, management plans

⿪⿪Board Member Remuneration
Resolutions of the General Meeting of Shareholders
determine the upper limits of remuneration for board
directors and auditors. The levels of remuneration for
individual board directors are decided by resolution of
the Board of Directors and those for individual auditors by
the Audit and Supervisory Board Members. Remunerationof internal board directors consists of fixed and variable
compensation while remuneration of the outside directors
and auditors consists solely of fixed compensation.

Basic
Policy*2●●

Basic concepts and policies on
corporate governanceRisk Management andCompliance

Please visit our website for more information on the criteria for
independence of outside directors (Basic Policy on Corporate
Governance Appendix 1).

Website*1

Corporate
GovernanceCorporate GovernanceName

CSR Management

Status of Compliance with Japan’s Corporate
Governance Code●

Policies and procedures in
Principle 3.1 Full determining the compensation
disclosureof senior management anddirectors

Article 15

Policies and procedures on
the appointment of senior
management, and nominationof director and corporate auditor
candidates

Article 5
Article 9
Article 12

Supplementary
Principle 4.1.1

Board of Directors’ decisions andscope of matters delegated to
management

Article 3

Principle 4.9*5

Independence standards andqualification for outside directors

Article 4

Supplementary
Principle 4.11.1

Views on appropriate balance
between knowledge, experienceand skills of the Board of
Directors as well as on diversity
and appropriate board size

Article 4

Supplementary
Principle 4.11.2

Status of concurrent positions atother listed companies held bydirectors and corporate auditorsof the Taiheiyo Cement Group

Article 7
Article 14

Supplementary
Principle 4.11.3

Analysis and evaluation of theoverall effectiveness of theBoard of Directors and summaryof results

Article 19

Supplementary
Principle 4.14.2

Training policy for directors andcorporate auditors

Article 18

Principle 5.1

Policy for constructive dialogue
with shareholders

Article 24●●*1 Our website*2 Our Basic Policy on Corporate Governance*3 Reports related to our corporate governance*4 Principle to be disclosed under the revised Corporate Governance Code (June 1, 2018)*5 In addition to the above three methods of disclosure we disclose information in our securities
reports and materials for our general shareholders’ meeting.

Please visit our website for more information on the Corporation Basic
Policy on Corporate Governance/Corporate Governance Report.

▪ https://www.taiheiyo-cement.co.jp/english/
About Us → Corporate Governance

TAIHEIYO CEMENT CSR REPORT 201927

Management
Risk Management and Compliance
We believe that risk management is the foundation for reducing management uncertainty and achieving management goals,
and see compliance as essential for conducting business activities.
We are striving to conduct activities to manage risks and thoroughly ensure compliance across the group.

Basic Risk Management and Compliance Policies»»GRI 102-16

Management

⿪⿪Basic Risk Management Policy and Regulations
In our Business Principles we declare “we will strive
to anticipate the changing business environment toassess new opportunities for growth.” We consider risk
management as a foundation for reducing management
uncertainties and achieving management objectives. We
manage risks that make the achievement of management
goals uncertain, such as social change, changes in the
global environment, natural disasters, accidents andscandals, based on our basic risk management policy. In
addition, we have established risk management regulations
to incorporate the risk management policy into specificrisk management activities. Risk management regulations
include emergency responses.

Basic Risk Management Policy

The Environment

1. We prevent and reduce risks in order to ensure the quality
and safety of our products and services, protect the lives andsafety of our employees and their families, and earn greater
trust from our stakeholders.
2. We create a system to appropriately manage a wide range ofrisks associated with our business activities.
3. We promote risk management through a plan-do-check-act
cycle.
4. We quickly and appropriately deal with risks as they are
identified.
5. In collaboration with group companies we build a system
for immediately detecting new risks arising from changes inour business environment and for quickly and appropriately
dealing with risks at the group level.

Basic Compliance Policy (Summary)with the Mission, Business Principles and social norms• MC omplianceaintaining internal systems and rules and ensuring broad• basedawareness of themooperation with all group companies and promotion of• Ceducationaland educational activities
orking out appropriate responses and policies for• Woccurrenceof problems
imely and appropriate disclosure and communication of• Tnecessary
information
ompliance with international standards and rules, and• Crespect
for local cultures and customs
ejection of corrupt and unfair requests from antisocial• Rinfluencesor organizations

Risk Management and Compliance Promotion System»»GRI 102-30, 31
Our president has ultimate responsibility for risk
management and compliance promotion. The officer incharge of both areas (officer in charge of the General Affairs
Department) is appointed by the president to preside overand run the Risk Management & Compliance Committee
and systematically promote organized activities.
Risk Management and Compliance Promotion System
Ultimate responsibility: President
Officer in charge: Officer in charge of General Affairs Department
Evaluation system(Correction system)

Risk Management &Compliance Committee
Chair: Officer in charge (of General Affairs Department)
Members: Managers of business sites of headquarters

Secretariat:
General Affairs
Department

Annual action plans for risk management

Officers responsible
for risk management
and compliance

Officers responsible
for risk management
and compliance

Risk management
and compliance promoters

Risk management andcompliance promoters

Employees

Employees

Identify and evaluate risks
Risk management practices and education

Note: As of April 2019, 104 group companies are managed under the above system.

28

TAIHEIYO CEMENT CSR REPORT 2019

Report on status of risk countermeasures

Group companies
Whistleblower Program

Business sites of headquarters(including the Central
Research Laboratory),plants, branches

Whistleblower Program

Collaborating with Society⿪⿪Basic Compliance Policy
Under our Business Principles, we pledge that we will act instrict compliance with the law and in accordance with social
mores. Fully aware that compliance is the foundation of CSR
management, we published the Basic Compliance Policy
and simultaneously created compliance rules in March
2005. We do not limit our definition of compliance to legal
compliance; our definition includes compliance with thesocial mores from which our laws originate, the mission andbusiness principles of our group, and internal regulations.

Corporate Governance
Risk
Managementand
andRisk Management
Compliance
Compliance⿪⿪Collecting, Evaluating and Identifying Companywide Risks
We collect, evaluate and identify group-wide risks every
three years and conduct annual reviews of those risks.
Fiscal 2019 is the third year of the company-wide risk
review since the first was conducted in fiscal 2016. The
purpose of identifying risks is to identify the impact ofanticipated changes in social and environmental conditions
over the next ten years in relation to uncertainty of groupmanagement and then formulate measures to avoid andreduce that uncertainty. We review risks with reference tothe corporate risk management guidance based on ISO
31000, COSO and WBCSD as well as various risk informationsuch as UN reports, IPCC reports and SDGs. We also consult
risk management experts.

Process of Collecting, Evaluating and Identifying FY2019
Company-wide Risks

Risk Management & Compliance Committee
Collection of risk information
Dialogue at the CSR Management Committee
UN reports, IPCC reports, SDGs, etc.

Risk-business impact analysis
Risk

ImpactBusiness

Quantitative monetary evaluation of impact scale in various
scenarios

Extraction of important risks
Analysis and review of quantitative evaluation results

Whistleblower Program

Instruction

President

ReportReportCorporate Auditor

Instruction

Officer in charge ofGeneral Affairs Department

ReportExternal hotline

General Affairs Department

ReportInternal hotline

ReportWhistleblower

Discovered

Illegal action

Surveyfollow-up

Risk Management and Compliance Promotion
Activities»»GRI 102-11, 17, 201-2, 205-2

Experts

⿪⿪Whistleblower Program
We properly handle reports and proposals in accordancewith normal company procedures while directly receiving
reports without the need for usual company procedures.
Whistleblowers have the option of either disclosing theiridentity, including their name and department, or reporting
anonymously to mitigate any potential psychologicalconstraint. We have whistleblower hotlines both internally(at the CSR Group of our General Affairs Department)
and externally (at a law firm). Our internal hotline is in a
dedicated, locked room only accessible to hotline staff. It isequipped with dedicated phone and fax lines as well as acomputer with a dedicated address in order to safeguard
the privacy of those submitting reports. Our external hotline
is also available to all employees of group companies
in an effort to strengthen group governance, improve
program effectiveness and reduce the burden on individualcompanies.
Moreover, we created the Whistleblower Program
Regulations so whistleblowers using the program are notsubject to unfavorable treatment.

In fiscal 2018 we received reports from numerous
employees via the hotline. However, only one of the reports
was determined to be treated as whistleblowing under the
program and handled appropriately in accordance with theregulations.

CSR Management

The committee plays a core role in our risk
management and compliance promotion for the entire
group. It embodies the policy, identifies, evaluates andspecifies company-wide risks, implements risk management
activities based on PDCA cycles and promotes compliance.
Moreover, it studies and proposes the creation andrevision of rules for risk management and complianceand provides instructions for advancing the awarenessand education of employees. Under the guidance of thiscommittee, each business site and group company has an
officer responsible for risk management and compliance,
and a risk management and compliance promoter, whocarry out specific duties. We held four Risk Management &Compliance Committee meetings in fiscal 2018.

CSR Management Committee
Identification based on the results of the quantitative evaluation

Protection

TAIHEIYO CEMENT CSR REPORT 201929

Management

Critical Company-wide Risks Identified in FY2016

External environmental changes

Management

Internal environmental changes

The Environment
Collaborating with Society

30• Declining birthrate and aging population• Shrinking domestic market• Economic deterioration• Hosting the Tokyo 2020 Olympic and Paralympic Games• Climate change• Stricter environmental regulations• Changes in the fuel market• Large-scale disasters• Progress of globalization• Intensification of global issues• Terrorism and riots• Intensified competition for developing new materials• Intensified competition with foreign companies• Progress of free trade, including TPP• Technical innovation• Spread of low-carbon concrete in societies• Progress of the network society• Increased cyber security risks• Changes in employment• Rise of inbound businesses• Deterioration of the financial environment• Aging of plant facilities and resources• Changes in business processes• Spread of cloud-based systems• Progress of telecommuting and flextime system• Changes in organizational culture• Shortage of human resources• Progress of overseas projects

⿪⿪Risk Reduction Countermeasures
Upon reviewing the identified company-wide risks andevaluation results, our Risk Management & Compliance
Committee specifies those to be addressed every year, andrisk impact reduction measures are implemented through
PDCA cycles.
Issues addressed in fiscal 2018 were: (1) Leakage ofpollutants and hazardous substances, (2) Enhancementof information security, (3) Product/service accidents, (4)Aging of facilities and equipment, (5) Prevention of traffic
accidents, (6) Strengthening of overseas crisis management
measures, (7) Enhancement of group corporate governanceincluding risk management and the compliance system,(8) Work-related accidents, and (9) Response to shortage ofhuman resources.
⿪⿪Emergency Countermeasure Task Force
When any event such as a disaster, accident or misconduct
has occurred, the affected business site informs the generalmanager of the General Affairs Department. The generalmanager determines the appropriate countermeasure

TAIHEIYO CEMENT CSR REPORT 2019from the following options while considering the severityof the event: establish the Emergency Countermeasures
Headquarters or delegate site leadership to respondto the event. Action is then taken through the chosencountermeasure.
Although we received 25 reports in fiscal 2018, none
required action by the Emergency Countermeasures
Headquarters. Emergency reports requiring urgent
attention, including proposals for measures to be taken, aredeliberated by the CSR Management Committee.
In addition, as preparation for responding todisasters and accidents, we conducted Shake Out drills forearthquakes at all business sites, earthquake response drills
for branches and workshops on a business continuity planfor the headquarters in case of an earthquake. Moreover,
we trained plant staff and explained to them how to handle
complaints if an accident occurs.
⿪⿪Risk Management and Compliance Promotion
Training
We provide training for managers and promoters for risk
management and compliance of the company’s businesssites and group companies to ensure effective risk
management and promotion of compliance.
In November of fiscal 2018 we presented a lecture
by a risk management consultant for group company
managers based on two themes: “Waste treatment law
and disqualification requirements” and “Four management
value principles system and compliance practice,” with 93
companies participating, and including the lecture entitled“Communication and risk recognition as a compliancepromoter” followed by case study discussions for promoters,with 85 companies participating.
⿪⿪Compliance Training
To fulfill our mission and uphold our business principles weformulated the Standard of Conduct to guide all officers
and employees of Taiheiyo Cement in the performance of
their daily duties. These standards consist of 35 items in 6
categories and gather together Taiheiyo Cement’s policies,
regulations and president messages delivered within andoutside the company.
We created and distributed to all our employees, aswell as all those of our main group companies, the Standardof Conduct (Casebook), which describes specific examples
on how to act in line with the Standard of Conduct.
For all company employees, including those on loan togroup companies, we conduct monthly quiz tests as part of▪ https://www.taiheiyo-cement.co.jp/english/
	CSR → Corporate Social Responsibility at Taiheiyo
Cement → “Corporate Framework for CSR,” “Mission,”“Business Principles” and “Standard of Conduct”

CSR Management Committee(ultimate responsibility for information security: president)
Information Security
Committee
Officer in charge of information security
Director of information security
Evaluation and GuidanceBusiness sites

⿪⿪Legal Roundtables for Group Companies
Since fiscal 2005 we have been holding roundtablediscussions attended by management and legal affairs
representatives from our group companies. These provide
opportunities to share legal information (including revisions
to laws) in order to further our understanding of major
laws relating to corporate management and to assist in thecreation of our group’s compliance regime.
In fiscal 2018 we discussed the following topics.
Group Legal Round Tables (FY2018)
No.

Date

Attendees

Topics

27

July
2018

14 (8 companies)• Legal issues concerning labor

28

November
2018

88 (89 companies)•R evision of civil law and its impact on
business practices•P ractical responses to civil law revisions

Information Security
⿪⿪Information Security Promotion System
Our Information Security Basic Policy and Information
Security Management Regulations are the basic regulations
governing our information security management system.
We have created an Information Security Management
Regime in accordance with these regulations and actively
work to maintain information security under this regime.
Our president has ultimate responsibility for
information security. Appointed by the president is
the information security officer (officer in charge of theGroup companies

Risk
Managementand
andRisk Management
Compliance
Compliance

Please visit our website for more information on the Standard of
Conduct (Casebook).

Information Security Structure
Corporate GovernanceStandard of Conduct (Casebook)

Corporate Planning Department), who presides overand runs the Information Security Committee in orderto advance organized and planned information security
promotion activities.

CSR Management

e-learning programs to provide education on the Standardof Conduct (Casebook) and other materials so they learn
how to act in certain situations.
In fiscal 2018, 74.3%
of subject employees
participated in the
program.

Risk management officer(business site manager)
Information handling officer(operations department managers/selected individuals)

Please visit our website for more information on our Information
Security Basic Policy.

▪ https://www.taiheiyo-cement.co.jp/english/
	CSR → Management →Risk Management and Compliance⿪⿪Information Security Promotion Activities
In fiscal 2018 we surveyed the status of information security
measures at overseas group companies and also conductedan e-mail drill to respond to targeted attacks, disasterrecovery drills, a security level survey of group companies
and information security training.
An accident occurred in which a computer of a groupcompany was infected with ransomware, but this washandled appropriately and caused no major damage. We
will continue our efforts to improve the security levels of ourdomestic and overseas group companies.

TAIHEIYO CEMENT CSR REPORT 201931

Management

Protection and Use of Intellectual Property

Management

⿪⿪Intellectual Property Policy
Our fundamental intellectual property policy is tocontribute to management through intellectual
property activities that support our business, ensuring
our competitive advantages by strategically conducting
intellectual property activities. Under this policy weare developing our intellectual property activities incollaboration with business and R&D divisions to contributeto increasing corporate value of the Taiheiyo Cement Group.

The Environment

⿪⿪Intellectual Property Management System
The company has established Intellectual Property
Rights Handling Rules and an associated management
system to guide our intellectual property activities. The
Intellectual Property Department assigns staff members
to the headquarters mainly to perform planning andadministrative tasks, and to the Central Research Laboratory
to handle applications for and protect rights and research
efforts. In addition, intellectual property promoters are
assigned as contact points to the major business divisions
and the Central Research Laboratory to actively promote
the effective and efficient creation, protection and useof our intellectual property in collaboration with theIntellectual Property Department.

⿪⿪Outline of Our Intellectual Property
As of the end of fiscal 2018 the company owned 1,142
patents, 18 design rights and 264 trademarks domestically.
The cement segment accounts for the largest shareof patents owned by the company. However, over the
past several years the share of patent applications in theenvironmental and mineral resources segments has been
growing in line with our business and R&D strategies.
In order to increase business revenue from patents, wemust obtain patents for technologies including peripheraltechnologies, considering company business conditions.
With this understanding, we possess a wide collection ofstrong, advanced patents from the perspective of retaining
influence on competitors in terms of intellectual property.
As a technology-oriented manufacturer, we haverecently focused on raising the percentage of inventors
among all employees. We believe this would cultivate amindset of valuing corporate intellectual property anddevelop the originality and portfolio of each business byprotecting effective inventions, leading to the continued
strengthening of our competitiveness.
Number of Domestic Patent Applications by Segment Non-consolidated(Applications)
300
250

Collaborating with Society

32

TAIHEIYO CEMENT CSR REPORT 2019

Environment

233

200

⿪⿪Intellectual Property Management System for
the Group
We formulated and began applying the Taiheiyo Cement
Group Intellectual Property Management Guidelines, which
apply to the entire group, in March 2018 to promote the useof our intellectual property and reduce associated risks. We
have established a committee consisting of those in chargeof intellectual property at the main group companies inorder to promote and vitalize our intellectual property
activities corresponding to the scale and industry of eachgroup company, by sharing issues, exchanging informationand holding workshops. Our company headquarters waspreviously used as the venue, but since fiscal 2018 we havecreated new opportunities to use group companies for that
purpose. As a result, the management of each company is
now being looked at as additional enhancements are made.

CementMineral Resources

Others

279
221

183

181

150
100
50
0

2014

2015

2016

2017

2018 (FY)

Domestic Patents by Segment (as of the end of FY2018) Non-consolidated
Others0.6%(7)Mineral Resources

22.8%
(260)

CementTotal Patents

1,142

43.3%

(495)

Environment

33.3%

(380)

Risk
Managementand
andRisk Management
Compliance
Compliance⿪⿪Training and Awareness Raising
To raise awareness of intellectual property and increase
its potential, the company encourages employees,
especially members of the research division and thetechnology development division, to take the Intellectual
Property Management Skills Test, a national licensing
examination. We have continued other employee training
and awareness-raising efforts such as external workshops
held by the Japan Intellectual Property Association andJapan Institute for Promoting Invention and Innovation in
addition to in-house training at our headquarters, Central
Research Laboratory, branches and plants. In fiscal 2018 we
implemented the training programs, described below, with87 attendees including employees from group companies.
We have also partially introduced an e-learning program.
Furthermore, through efforts such as information exchange
gatherings and study meetings for members in charge ofthe intellectual property of group companies stated above
we strive to protect and fairly use intellectual property
across the group while respecting other companies’
intellectual property
and preventing
infringement, fromthe perspective ofintellectual property asa source of profit.

Corporate Governance⿪⿪Risk Management for Intellectual Property
Our acquisition and control of intellectual property is
conducted under the Rules for Handling Intellectual
Property Rights stated above. This intellectual property
right strategy is intended to ensure that implementation
corresponds with the reality of our individual businesses.
Intellectual property, including pending patentapplications, is handled through a centrally controlled
database by the Intellectual Property Department.
We strive to prevent infringements of competitors’
patents and strictly manage risks by ascertaining recent
developments of issues through the periodic circulationof patent information, a problematic patent watch system
and an intellectual property review service with the utmost
attention paid to setting our own criteria. Moreover, we are
increasing employee awareness when we hold in-housetraining, intellectual property strategy meetings withvarious divisions and so forth.
To manage trade secrets and prevent leaks of knowhow
and technology, we formulated and enforce Information
Security Management Regulations and Document
Management Rules that cover the entire group. In addition,
we use the guidelines stipulated in the Rules for HandlingIntellectual Property Rights to determine whether we will
file a patent application for a technology or keep it secret asinternal expertise in order to prevent technology leaks.
Group companies have formulated or reinforced
various intellectual property rules while completing theexecution of agreements with each inventor. Given that weare strategically licensing our core technologies overseas
from the perspective of our projected global management
stance, we also address the risks of overseas licensing. The
legal systems of emerging Asian countries are different fromthe system in Japan. For example, licensers are responsible for
quality/performance assurance in those countries. In addition
to internal information dissemination, we are implementing
risk management in cooperation with specialized lawyers
who are familiar with situations in those countries.

⿪⿪Intellectual Property Award Program
We have paid specified compensation to inventors fortheir patent applications and for registered patents thathave significantly contributed to the business profits under
our regulations. Furthermore, in fiscal 2018 we started
to operate an Intellectual Property Award Program tostrengthen employee awareness of intellectual property.
Achievements have been recognized through the Excellent
Invention Award (1 award), the Largest Number of Patent
Applications Award (1 individual and 1 team) and theIntellectual Property Contribution Award (3 awards).

CSR Management

⿪⿪Licensing Activities
While the company applies for and acquires rights
primarily to ensure competitive business advantages, we
also proactively license rights that we do not use to othercompanies. In some cases we are also granted licenses fortechnologies that are likely to contribute to our businessfrom other enterprises.

Seminar on intellectual property descriptions

Number of Attendees for Intellectual Property Training Sessions
Implemented in FY2018(Unit: person)

Taiheiyo Cement
Corporation
Employees

Group Company
Employees

Introduction

28

26

54

Description

11

22

33

Total

39

48

87

Training Content

Total

TAIHEIYO CEMENT CSR REPORT 201933

The Environment
Environmental Management
We have created an Environmental Management Committee which proposes cross-functional environmental strategies andactively works to address environmental issues. Since having unified environmental management systems developed byindividual plants and obtaining the ISO 14001 certification for the entire company in April 2009, we have been striving tofurther improve our environmental management.

Environmental Management Policy

Management

Our environmental management policy declares an active
commitment to environmental issues facing society,including not only preventing pollution but also creatinga recycling-based society, mitigating climate change,
reducing environmental impacts, protecting water
resources and conserving biodiversity as key management
challenges. Under this policy we are focusing on improving
our environmental performance.

Environmental Management Policy
In January 2006 we created an Environmental Management
Policy, reflecting the fact that we consider an active
commitment to the environmental issues facing society to
be key management challenges. In addition to initiatives
emphasizing these six items in all business operations, we
strive to communicate with a wide range of stakeholders, frominternational society to local communities, and to seek the ideal
form for a sustainable cement industry as a member of the
WBCSD and GCCA (Global Cement and Concrete Association).
The Environment
Collaborating with Society

34

Created in January 2006
Revised in April 2019

1. Pursuing Environmental Conscious Business
Pursuing zero environmental impacts which are emitting GHG,
pollutants, noise and vibration, withdrawing water, degrading
forest and others from our business including value chain withpromoting introduction of eco-efficient technologies into ourbusiness and development of eco-conscious products into
market as a member of regional and also global society basedon appropriate evaluating our business in environment.
2. Compliance with Environmental Laws and Regulations
As a minimum, we comply with all environmental laws andregulations applicable to our business activities. Furthermore,beyond compliance, we meet environmental commitments
undertaken through voluntary agreements.
3. Contributing to a Recycling-based Society
Leveraging the inherent capabilities of the cement industry, we
actively recycle industrial and municipal wastes as raw materials
and fuels for cement production.
4. Proactively Addressing the Issue of Climate Change
We promote greater energy reduction throughout the whole ofour business activities and strive to develop technology to help
reduce society's total greenhouse gas emissions.
5. Promoting Global Technology Transfer
Through the worldwide transfer and deployment of our technology,
we aid the development of greater energy conservation,
environmental preservation and utilization of waste materials.
6. Ecosystem Conservation
We enhance to protect ecosystem, including biodiversity, by
providing products and technologies that contribute to harmonious
coexistence with ecosystem.

TAIHEIYO CEMENT CSR REPORT 2019

Company-wide Environmental
Management System
In June 1997 Taiheiyo Cement initiated ISO 14001
certification of each of its plants and attained 100%
certification by 1999. Recognizing, however, that plantlevel management systems alone are insufficient toensure comprehensive environmental protection throughenvironmental management projects, we built a companywide environmental management system (EMS) andextended it beyond plants to cover our headquarters,
branches and Central Research Laboratory. In April 2009 our
EMS was ISO 14001 certified by the Japan Testing Center for
Construction Materials, an independent third-party testing,standardization and certification authority. In March 2018
the company-wide system was audited for recertification for
the third time.
⿪⿪EMS Readiness
Top management (officer in charge of the Production
Department) chairs the Environmental Management
Committee with ultimate decision-making authority
for environmental management. Overseen by theEnvironmental Management Committee, the relevant
headquarters division manages our plants, mines andbranches using an “umbrella” system.
Company-wide EMS Readiness
Environmental Management Committee

Top management
officer in charge of the
Production Department

Environmental Administration Group, Production Department

EMS secretariat

Production Department, Mining Department, General Affairs Department, Administration
Department and Sales Department of Cement Business Division, Mineral Resources
Business Department, and Environmental Business Development Department

Other
departments inheadquarters

PlantsMines

Branches

Central ResearchLaboratory

Taiheiyo Cement Group’s Environmental Target WBCSD│GCCA

CO2 Emission Reduction Targets
Cement production-related CO2 emissions from Taiheiyo Cement and group companies

Reduce specific net CO 2 emissions per tonne of cementitious product by 10%
or more from fiscal 2000 levels by fiscal 2025 (CSR Objectives for 2025).

Reduction Target for Main Air Pollutants

Emissions of NOx, SOx and dust from the main stacks of kilns at the cement production
sites of Taiheiyo Cement and group companies

Limit NOx, SOx and dust levels per tonne of clinker (g/t-clinker) to thetarget levels achieved in fiscal 2010

Water quality

Vibration

Odor

Other complaints

29
4
2

25
19

20

6

10
7

8

Environmental
Accounting

15
10

17

5
0

An event to experience eco-planters

2014

2015

2016

2017

Environmentally Sound
Products and Services

Noise

Reducing Environmental
ImpactAir/dust

Number of complaints
30

Conserving Biodiversity

Numberof Environmental Complaints Received Non-consolidated
1. 環境苦情件数の推移

Recycling Waste andOther Materials

⿪⿪Environmental Complaints
As the waste and by-products we use become more diverse
and increase, the number of environmental issues we needto consider also rises. Therefore, we are ramping up ourefforts to reduce environmental impact through activities
such as introducing indoor storage and sealed containers
for waste and by-products, and improving our flue gas
stacks. When we receive an environmental complaint wequickly travel to the site in question, whenever possible, tocheck the situation, investigate the cause and provide an
explanation. When we find that our activities are the cause,
we implement improvements.
In fiscal 2018 our cement plants received 91
environmental complaints. We responded to 29 of these,
which were associated with our operations. The numberof complaints increased from the previous year due to achange in the counting method, which aims to eliminate
inconsistent counting among plants.

Appropriate Use of
Water Resources

⿪⿪Environmental Education
During Environment Month each June we deliver a message
from the president and provide educational materials
on the environment page of our portal site to increaseawareness and encourage learning about the environment
throughout the group. Each workplace also engages in a
number of different activities, such as conducting training
sessions related to accident response, viewing environmentrelated DVDs, holding lectures and taking part in local
cleanup activities. In
fiscal 2018 more than
350 activities took
place, including groupcompanies.

⿪⿪Response to Environmental Accident
Each plant maintains emergency response plans in
preparation for possible environmental accidents. They
also conduct training, including fire fighting training incooperation with local fire departments. Other education
includes training on how to reduce environmental impact
when an environmental accident occurs and how to report
it to a government entity.

Mitigating Climate
Change⿪⿪Internal Environmental Audits
In fiscal 2018 we conducted internal environmental audits
at all our sites.
As priority items from this year’s audit, confirmationof legal compliance reviews, external communications
and corrective actions for unachieved targets wereidentified as company-wide concerns. The status of afollow-up, including corrective and preventive actions fornonconformity with environmental requirements, andthe status of responses to emergencies were identified as
items that plants must deal with. Verifying the scope of theinternal audit was identified as an item that must be dealt
with by branches.
The audit identified 21 findings including 3 for which
improvements were requested. Corrective actions havebeen taken for all 3 findings for which improvements wererequested.

affected animals or plants. However, we had two accidents(leakages of alkali and cement dust) and took measures toprevent these accidents from recurring.

Environmental
Environmental
Management
Management

Each group cement company in Japan and overseas iscommitted to environmental preservation. Over 90% of thegroup’s total cement output in fiscal 2018 was produced in
ISO 14001-certified plants. The facilities that are not ISOcertified operate their own EMS.

2018

(FY)

Material Balance ofBusiness Activities

Compliance with Environmental Laws»»GRI 307-1

⿪⿪Environmental Accidents
In fiscal 2018 we had no legal or regulatory violations thatwere subject to fines or penalties or grave accidents thatTAIHEIYO CEMENT CSR REPORT 201935

The Environment
Mitigating Climate Change
Most of the greenhouse gas emissions associated with our business operations are from cement production. To tackle thiswe have identified CO₂ reduction targets for cement-related CO₂ emissions in our CSR Objectives for 2025 and are working to
reduce greenhouse gas emissions particularly by focusing on efforts to reduce emissions at individual cement plants.

»»GRI 103-2, 3, 12

Long-range Initiative to Respond to Climate ChangeManagement

Since the adoption of the Paris Agreement at the 21st Conference of the Parties to the United Nations
Framework Convention on Climate Change (COP21) in 2015, active discussions have been underway in Japanand other countries toward realizing a carbon-free society.
The Taiheiyo Cement Group has positioned CO2 emissions reduction as an important growth strategy andhas set a target of reducing CO2 emissions related to cement production as part of its CSR Objectives for 2025,
which we formulated in 2015. To accelerate our efforts, we announced that we support the recommendationsof the TCFD (see below), and we also formulated a framework for our long-range vision of greenhouse gas
emissions reduction.

The Environment

Supporting the Recommendations of the
Task Force on Climate-related Financial
Disclosures (TCFD)

financial burden. While solving these challenges wewill continue our efforts to realize the long-range
vision, with a view to our future growth as well as
major social changes.

In June 2019 we announced that we support therecommendations of the TCFD*. Following its
recommendations, we will evaluate and analyze thebusiness risks and opportunities that climate change
poses to our group, reflect them in our businessstrategies, and disclose information.

Framework Formulated for Our Long-range
Vision of Greenhouse Gas Emissions Reduction*The Task Force on Climate-related Financial Disclosures (TCFD): Established in 2015 by
the Financial Stability Board (FSB) to promote the disclosure of climate-related financial
information. In 2017, for the appropriate investment decisions of investors, the TCFD
published recommendations to promote disclosure of information on the financial
impacts of climate-related risks and opportunities.

Formulating a Framework for Our Longrange Vision of Greenhouse Gas Emissions
Reduction toward 2050

Collaborating with Society

36

In July 2019 we formulated a framework for our longrange vision of greenhouse gas emissions reduction
with a goal of achieving an 80% reduction by 2050. The
framework reflects the long-term objectives of the Planfor Global Warming Countermeasures adopted by theJapanese Cabinet in 2016.
We will explore various measures to realize thevision, many of which require innovative approaches
that cannot be achieved simply by extending
the currently available technologies or social
environments. Also, there are other issues beyond
the technical aspects, such as development of codesand standards, social acceptance, and sharing of the

TAIHEIYO CEMENT CSR REPORT 2019

Reduction of CO2 emissions
in cement production

Long-term goal:80% reduction
by 2050

Outline of technical measures• Increased use of alternatives to fossil energy;• Increased use of fossil energy, which generates less CO2 emissions;•D evelopment of low-carbon clinkers and cements, including thosewith higher admixture contents;• CO2 capture from exhaust gases and the effective use and storageof the CO2.
Advancing the system
Establish a new dedicated organization within the Central ResearchLaboratory to strengthen research and development of technicalmeasures, including carbon recycling (effective use of CO2).

Contribution of cement products toavoid CO2 emissions
Long-term goal:
contribute to
avoiding emissions
equivalent to20% of the CO2
emissions in cement
production

Measures to realize our long-term goal
• Formulate the Calculation and Reporting Protocol for Accounting
and Reporting of Avoided GHG Emissions through the Value Chainof Cement and Cement-based Products.
• Provide and develop products that contribute to a greater
contribution of cement products to avoid CO2 emissions using theprotocol.

Emissions(1,000 t)

725

50,000Progress in Meeting Our CO₂ Reduction Targets in CSR Objectivesfor
2. 2025[CSR目標2025] CO₂排出削減目標の達成度

683

31,946
21,914650

40,000679

671

22,44022,62430,00020,00010,000

625
2014

2015

2016

2017

2018

(FY)

0

Guidelines: WBCSD-CSI “Cement CO₂ and Energy Protocol Ver. 3” and GCCA “GCCA Sustainability
Guidelines for the monitoring and reporting of CO₂ emissions from cement manufacturing Ver. 0”

8
6

2

2000

2005

2010

2015

2020

2025

(FY)

TAIHEIYO CEMENT CSR REPORT 2019

Material Balance ofBusiness Activities

⿪⿪Efforts to Save Energy
Specific heat consumption of clinker production by thegroup’s cement plants in fiscal 2018 decreased by 35 MJ/tclinker from the previous year’s level to 3,268 MJ/t-clinker.

4

0

32,115675

0Target692

Environmental
Accounting

Reduction rate of specific net CO2 emissions
(%)
10

692

Environmentally Sound
Products and Services

700*Most of our overseas affiliated companies are cement production companies so the total CO₂
emissions from production overall is higher than that of domestic companies alone.

Reducing Environmental
ImpactSpecific emissions(kg-CO2/t-cementitious)

Conserving Biodiversity

3.WBCSD│GCCA
セメント製造によるネットCO₂排出原単位および排出量

Recycling Waste andOther Materials

Specific Net CO₂ Emissions per Tonne of Cementitious ProductAppropriate Use of
Water Resources

A large amount of carbon dioxide is produced in the courseof cement manufacture. This is because the production
process requires a high temperature of 1,450°C andlimestone, used as raw material, is decarbonated througha chemical reaction during the calcination process (CaCO₃→ CaO + CO₂). About 35% of CO₂ emissions generated
during cement production are from the consumption ofenergy, about 55% are from the calcination of raw materials
and about 10% are from electricity use. To reduce CO₂
emissions we have been working to conserve energy byinstalling energy-efficient equipment and improving thestability and efficiency of our kiln operations. We have also
been implementing measures such as using waste- andbiomass-derived energy sources to decrease our rate ofuse of fossil fuels. Moreover, we are moving toward using
recycled resources with less carbonate content to bring
down CO₂ emissions from the calcination of the limestone
used as raw material, and have started using waste heat
power generation to tackle CO₂ emissions associated withconventional electricity generation.
Specific heat consumption was reduced in fiscal 2018,delivering a reduction in CO₂ emissions of 8-kg-CO₂/tcementitious compared to fiscal 2017, mainly as a result of adecrease in the clinker-to-cement ratio.

Mitigating
ClimateMitigating Climate
ChangeChangeAmong the total greenhouse gas emissions generated
by our domestic group companies (excluding power
generation companies) that are reporting their greenhousegas emissions by business segment in accordance with the
Act on Promotion of Global Warming Countermeasures,
about 94% of greenhouse gas emissions were generated
from cement production companies in fiscal 2015.* Theamount of greenhouse gas emissions associated with ourservice stations, headquarters, branches and shipping, as
well as electricity purchased by the group, was around 5%
in fiscal 2018. Under Scope 3 (value chain) calculations for
cement, for which downstream value is not calculated since
cement is considered an intermediate product at this stage,
the emissions were around 6.0% of Scope 1 and Scope 2(direct air emissions) in fiscal 2017.
The bulk of greenhouse gas emissions associated withthe operations of our group companies is CO2 from cement
production. We are therefore working to reduce emissions
from cement production, as indicated in our CSR Objectives
for 2025, in order to achieve our long-term quantitative
target of reducing specific net CO2 emissions per tonneof cementitious product by 10% or more from fiscal 2000
levels by fiscal 2025.
Some of our plants are taking part in the target settingtype emissions trading program for Saitama Prefecture andCalifornia’s cap-and-trade program, striving to achieve thereduction targets. To support voluntary approaches we arealso working in line with Keidanren’s voluntary action planand the measures to reduce greenhouse gas emissions
established by the WBCSD-CSI and GCCA.

Efforts Related to the Cement Production
Process»»GRI 302-1, 3, 4, 305-4, 5

Environmental
Management

Greenhouse Gas Emissions and Achievementsof Our CSR Objectives for 2025»»GRI 102-11, 302-3, 305-1, 2, 4, 5

37

The Environment

SpecificHeat Consumption of Clinker Production WBCSD│GCCA
4. クリンカ製造のための熱量原単位
Specific heat consumption (MJ/t-clinker)
3,500
3,305
3,288
3,300

Ratio
of Alternative
Fuels and Biomass Fuels WBCSD│GCCA
6. 代替化石・バイオマスエネルギー使用率

Fossil fuels

3,306

3,268

3,303

15

3,100
2,900
2,814

2,700

Management

0

2,858

2,817

2017

2018

(FY)

⿪⿪Use of Waste Heat Power Generation Systems
Total electric power generated by waste heat power
generation systems at the group’s cement production
companies in fiscal 2018 increased by 0.1 GWh from fiscal
2017 to 480 GWh. Its ratio to all electricity consumed in the
production of cement was 13.2%. We were therefore able
to reduce CO₂ emissions by about 331 thousand tonnes infiscal 2018 compared to purchased power generated fromcoal-fired power plants (emission factor: 0.69 t-CO₂/MWh).
The Environment

Electricity
Generated by Waste Heat WBCSD│GCCA
5.
廃熱発電量
Amount of electricity

496

400

Rate of substitution

14.0
476

494
10.2

14.1
480

(%)
15

13.2
480

10

10.3

200
0

5

2014

2015

2016

2017

2018

(FY)

0

Guidelines: WBCSD-CSI “Cement CO₂ and Energy Protocol Ver. 3” and GCCA “GCCA Sustainability
Guidelines for the monitoring and reporting of CO₂ emissions from cement manufacturing Ver. 0 ”

Collaborating with Society

38

⿪⿪Use of Alternative Energy Resources and Alternative
Raw Materials
In fiscal 2018 non-fossil energy and biomass energy
accounted for about 13.8% of all energy used for groupkilns. A decrease of about 8.2 kg-CO₂/t-clinker was alsoachieved by using alternative raw materials. As a result ofusing both alternative energy resources and raw materials,
reductions in CO₂ emissions are expected to reach 1.44
million tonnes (emission factor for coal: 0.096 kg-CO₂/MJ).

TAIHEIYO CEMENT CSR REPORT 2019

15.5

14.9

10

Biomass fuels

13.8

13.5

13.1
12.7

Alternative fuels

13.3

11.3

11.6

12.0

5
2016

2015

2014

2,873

2,779

Guidelines: WBCSD-CSI “Cement CO₂ and Energy Protocol Ver. 3” and GCCA “GCCA Sustainability
Guidelines for the monitoring and reporting of CO₂ emissions from cement manufacturing Ver. 0 ”

(GWh)
600

Ratio of alternative fuel use to all fuel use for our kilns
(%)
20

0

2.2
2014

2.2
2015

1.8
2016

1.8
2017

1.8
2018

(FY)

Guidelines: WBCSD-CSI “Cement CO₂ and Energy Protocol Ver. 3” and GCCA “GCCA Sustainability
Guidelines for the monitoring and reporting of CO₂ emissions from cement manufacturing Ver. 0”

Reduction of Specific CO₂ Emissions by Replacing Limestone with
Alternative
Raw Materials WBCSD│GCCA
7. 石灰石の代替原料によるCO₂排出原単位の削減
Reduction of specific CO2 emissions (kg-CO2 /t-clinker)
10
7.3

7.0

2014

2015

8.0

8.4

8.2

2016

2017

2018

5

0

(FY)

Guidelines: WBCSD-CSI “Cement CO₂ and Energy Protocol Ver. 3” and GCCA “GCCA Sustainability
Guidelines for the monitoring and reporting of CO₂ emissions from cement manufacturing Ver. 0”

Reducing CO₂ Emissions during Transportation»»GRI 305-3
We contract the delivery of our raw materials and products
to transportation companies and are striving to reduce
CO₂ emissions as a specified consigner designated under
the Japanese Energy Saving Act. Major efforts include
implementing a plan to transport goods on return trips,
encouraging drivers to eco-drive, and promoting energy
efficient devices such as digital tachometers and eco-tires
on vehicles. In shipping we continue to pursue energy
efficiency technologies and operate new ships that are
equipped with many energy-saving features. We are also
supporting energy-saving operations for conventionally
powered ships.
In fiscal 2018 our CO₂ emissions increased by about
7% compared to fiscal 2017, mainly due to a 5% increase inboth the distance and tonnage transported.
CO₂ Emissions by Mode of Transportation (FY2018) Non-consolidated
Mode ofTransportation

TonnageTransported(1,000 t)

Average
Distance
Transported(km)Transported
Tonne ×Kilometer(1,000 t × km)

CO₂ Emissions(1,000 t)

Ship

19,329485

9,379,758

122

Truck

15,02554806,051

48

Railway

5,411

27

143,805

3

Total

39,765260

10,329,614

173

Appropriate Use of Water Resources
We began our analysis of associated risks and an assessment of water consumption by identifying issues that could emerge.

»»GRI 303-1*This is a water risk mapping tool developed by the World Wide Fund for Nature and used toevaluate impacts on businesses related to water scarcity, flooding, drought, seasonal variation,
physical water quality risks, regulatory risks, etc.

»»GRI 303-1, 2, 3, 4, 306-1

FY2014FY2015(Unit: 1,000 m3)

FY2016FY2017

Fresh Water Withdrawal per Unit of Production WBCSD│GCCA

FY201815,394

13,717

7,505

8,130

6,521

Ground water

17,35818,32916,232

16,37016,884

Industrial
water

2,996

3,037

2,983

3,095

3,251

0

0

0

0

35,79135,083

26,71927,596

26,656

Total seawater
withdrawal

151,535

148,836

146,097

149,056

149,776

Total withdrawal

187,325

183,918

172,816

176,652

176,432

Total freshwater
discharge (O)14,253

13,871

12,964

12,294

12,167

Total seawater
discharge

151,535

148,836

146,097

149,056

149,781

Total discharge

165,787

162,707

159,061

161,350

161,948

Total freshwater used
(I-O)

21,53821,212

13,75515,302

14,489

0.760

2014

2015

0.833

0.835

0.806

2016

2017

2018

0.5

0

(FY)

Material Balance ofBusiness Activities

42

0.770

Environmental
Accounting

Other
Total freshwater
withdrawal (I)

淡水取水原単位(m3/t-cementitious)
1

Environmentally Sound
Products and Services

9.

Surface water

Reducing Environmental
ImpactStatus of Water Consumed WBCSD│GCCA

Conserving Biodiversity

At present there are no foreseeable specific concerns
regarding water resources that may be raised by local
communities. We therefore remain focused on reducing
the amount of water withdrawal from the perspective ofimproving production efficiency. Also, we will continue
to contribute to promoting the appropriate use of water
resources for local communities by maintaining close
communication with them.
As for Taiheiyo Cement Philippines, it supplies cleanwater to local communities in the Philippines from a welldrilled by the company.

Most of the water used at our cement plants is for cooling
production equipment, exhaust gas and in-house power
generators. Therefore the water discharged from the plants
is mostly cooling water, which is not polluted as definedin the Water Pollution Control Act. Our plants near theocean use seawater to cool in-house power generationequipment. We circulate and reuse all freshwater at thesefacilities (except for household wastewater) in order toreduce water withdrawal and prevent pollution by thedischarged water.

Recycling Waste andOther Materials

Appropriate Use of Water Resources»»GRI 203-1, 303-1, 2, 3, 4, 5, 306-1, 413-1

Status of Water Consumption

Appropriate
Useofof
Appropriate Use
Water
Resources
Water Resources

According to the results of the water risk analysis conductedusing the Water Risk Filter*, the average score for the totalbasin risk for all our plants (weighted average taking into
account the cementitious production volume) was 2.6 (themaximum score is 5.0, with a higher score indicating a greaterrisk). The highest total basin risk score was 3.6 and higher thanthat of the previous year. The volume of cement produced at
the plant with the highest score accounted for about 15% of
the production volume of all the plants. However, when weanalyzed conditions at that plant, no imminent issues were
found.

Mitigating
ClimateMitigating Climate
ChangeChange

The total withdrawal of freshwater for fiscal 2018 was
about 26.66 million m3 and the total seawater withdrawal
for the same year was about 150 million m3. The seawater
was used to cool in-house power generation equipmentat our plants near the ocean and then released back into
the sea after use. The amount of freshwater discharged
was approximately 12.17 million m3, meaning that about
14.49 million m3 of freshwater was used. However, almost
all of the water was for the cooling of equipment andconsequently released into the atmosphere throughevaporation rather than as a raw material for products.
In fiscal 2018 we withdrew 0.806 m3 of freshwater(withdrawal per unit of production) to produce 1 tonneof cement. Moreover, there was little change in our water
consumption efficiency.

Environmental
Management

Water Risk Analysis

Guidelines: WBCSD-CSI “Protocol for Water Reporting Ver. 1.0” and GCCA “GCCA Sustainability Guidelines forthe monitoring and reporting of water in cement manufacturing Ver. 0”

TAIHEIYO CEMENT CSR REPORT 201939

The Environment
Recycling Waste and Other Materials
We safely treat large volumes of waste and by-products produced by many industries, as well as household waste, using ourcement manufacturing facilities to recycle them into cement. We strive through our recycled-waste-to-cement system tocreate and expand a recycling-based society in partnership with a wide range of industries and communities»»GRI 103-2, 3, 203-1, 413-1

Resource Recycling with Industries

Management

⿪⿪Electric Power Utilities
We accept large volumes of coal ash produced at coalfired power plants and use it as a substitute for clay as
a raw material in cement. In addition, we operate ash
centers* to use more ash. We also supply the power
plants with limestone powder which is used as a flue-gas
desulfurization material to scrub the harmful sulfur oxidefrom the exhaust produced by the burning of coal. The
reaction of the flue-gas desulfurization material with sulfur
oxide forms gypsum which we use effectively as a raw
material for cement.
*Ash centers are distribution sites with collection/transportation (transshipment and storage) andintermediate-processing (powder mixing) functions. They receive coal ash from coal-fired power
plants and ensure a stable supply to our cement plants, while enabling effective utilization ofcoal ash and supplying diverse products that meet user needs.

The Environment
Collaborating with Society

40

⿪⿪Steelmakers
In the steelmaking process impurities are removed fromiron ore to make iron. We supply the limestone powder andquicklime used as purifying materials in the refining process.
We also use by-products such as blast furnace slag and steelslag that remain after the refining process as raw materials
for cement and mineral components.

▶Ecocement System

Ecocement is a new type of cement made primarily from theincineration ash from municipal waste. More than 500 kg ofmunicipal waste incineration ash and other waste materials areused per tonne of Ecocement.
▶Incineration Residues Recycling System

A system for recycling incineration residues (incineration
ash and dust) which are generated when municipal waste
is incinerated at incineration plants as a raw material for
ordinary Portland cement.
▶AK System

A system for recycling household waste and general businesswaste as alternative raw materials and fuels for cement
manufacture. The waste is pre-processed through biologicalbreakdown (fermentation) using a waste recycling kiln.
Mineral Resource Cycle with Electric Power Utilities and Steelmakers

Thermal Power Plant
Ash

⿪⿪Construction Soil
Conventionally this soil had been dumped into landfills.
By making effective use of it as an alternative raw material
for cement we contribute to the material recycling of
construction soil as well as to the extension of the lifetimeof landfills. We are certified as a designated survey agency
by the Ministry of the Environment and offer one-stop
services from surveying, construction and distribution, totreatment at our plants. We have also set up intermediaryfacilities that organically link sites where construction soil is
produced to our nationwide plants.

Limestone
powderLimestone
powder,quicklime

GypsumSlag, iron slag, blast
furnace dust, etc.

Ash Center®

Cement Plant

Municipal Waste Recycling Systems for Cement Production
Portland Cement Plants

Community

Municipal waste

Incineration plant

AK System

Recycling System for Incineration Residues

Municipal waste is recycled
at cement plants as fuel andraw material for ordinary
Portland cement.

Incineration residues ofmunicipal waste are recycled at
cement plants as a raw material
for Ordinary Portland cement.

TAIHEIYO CEMENT CSR REPORT 2019

Incineration
residues

Ordinary
PortlandcementTaiheiyo
cementEcocement Plant
Ecocement System
Ash from waste incineration is recycled as the
Ecocement, a raw material.

Resource Recycling with Communities
Although most municipal waste is incinerated and the ash isburied in landfills, finding new landfill sites has become very
difficult. Waste treatment has particularly become a sourceof concern for Japan’s major city governments and thesituation is expected to get worse. We have three systems
for recycling municipal waste and strive to make effective
use of such resources and resolve environmental issues.

Steel Mill

Concrete products
Ready-mixed
concrete plants manufacturing plants

Ecocement
Ecocement

Environmental
Management

Performance of Recycled-Waste-to-Cement System »»GRI 301-1, 2
Trends in Use of Waste and By-products per Unit
Production Non-consolidated

Mitigating Climate
Change(kg/t-cement)
500

427.9

407.4

404.2

413.4

409.4

2014

2015

2016

2017

2018

400
300

267.3

200
100
0

2000

(FY)

Waste and By-products Used in the Cement Manufacturing Process
TrucksRaw mill

Freight cars

Finish millRotary kiln

Various kinds ofmaterials

Ships

Finishing Process

Transportation

After preheating, the materials
are burned in a rotary kiln. The
resultant material is then rapidly
cooled to form an intermediate
product called clinker.

A small amount of gypsum
is added to the clinker andground in the finish mill to
produce cement.

The cement is thentransported by ship, truckor railway freight car.

Raw materials

Raw materials

GypsumBlast furnace slag, coal ash,polluted waste sludge,
non-ferrous slag,
steelmaking slag,
construction soil, molding
sand, etc.

Municipal waste incineration ash, flyash, used clay, sewage sludge

FGD gypsum, chemically derived
gypsumFuels

Mineral components

Waste oil, waste plastic, used tires,wood chips, scrap pachinko machines,
RDF (municipal waste), recycled oil, BOF

Slag powder, fly ash

Waste and by-products used
Reference: Resources needed
to produce one tonne of
cementLimestone:
1,100 kgClay:
220 kg
Silica:60 kg
Iron, etc.:
30 kg
Gypsum:35 kg
Coal, etc.:
110 kgElectric power:
105 kWh

Waste and By-products Used in Cement Plants (FY2018) Non-consolidated

Industrial

Raw material-related
Fuel-related

Rate (kg/t-cement)
120.5
76.3
34.2
31.5
26.8
19.6
10.9
8.7
5.3
42.3
376.3
23.3
8.5
1.3
33.1
409.4
373.8
35.6

TAIHEIYO CEMENT CSR REPORT 2019

Material Balance ofBusiness Activities

Total

1,932,572
1,224,004
548,657
504,705429,377
314,837
174,935
140,172
85,545
678,765
6,033,568
374,154
135,850
21,539531,543
6,565,111
5,993,524
571,587

Environmental
Accounting

HouseholdTotal Amount (t)Environmentally Sound
Products and Services

Waste and By-products
Coal ash (including JIS fly ash)
Blast furnace slag
By-product gypsum
Unburned ash, dust emissions, dust
Dirt and sludge
Construction soil
Waste plastic
Waste oil
Wood chips
Other
Subtotal
Water treatment plant sewage sludge and ash
Municipal incinerator ash
Municipal waste, etc.
Subtotal

Reducing Environmental
ImpactBurning Process

Limestone, iron wastes, etc.,
are mixed together, dried
and ground in a raw mill.

Conserving Biodiversity

Raw Material Preparation Process

RecyclingWaste
Wasteandand
Recycling
OtherMaterials
Materials
Other

Limestone

Appropriate Use of
Water Resources

We recycle waste and by-products into alternative raw
materials and fuels for cement. This helps to extend the lifetimeof landfills, prevent the depletion of natural mineral resources,
limit greenhouse gas emissions and reduce air pollution. In fiscal
2018 we recycled 6.565 million tonnes of waste and by-products.
This was a decrease of 60,000 tonnes compared to fiscal 2017,
due to a decrease of coal ash offsetting the increases of the blast
furnace slag, burned ash, dust emissions, and dust we accepted.
This means we recycled 409.4 kg of waste and by-products per
tonne of cement produced.

41

The Environment
Conserving Biodiversity
The business division most concerned with biodiversity in the group’s business activities is that operating the quarries.
Collaboration with communities is essential to the development and operations of quarries and also the use of old ones.
We work to reduce our net environmental impact to zero through the conservation of ecosystem and water resources as wellas other initiatives.

»»GRI 103-2, 3
Environmental Impact of Our Operations»»GRI 304-1, 2, MM1, MM2

Management

⿪⿪Environmental Impact of Our Operations
Cement production starts with quarrying limestone, theprimary raw material for cement. Most natural resources
are also quarried, including aggregates and chemical raw
materials.
Since quarrying requires the removal of topsoil, quarry
development has a certain impact on the biodiversity ofthe development area. However, the limestones, rocks, soil,
and sands we quarry do not require any refining process
but instead are processed into products by crushing themand adjusting their granularity. Our operations are therefore
unlikely to cause chemical contamination in surrounding
areas. In addition, we strive to minimize the amount ofwaste stones generated during our limestone quarrying byusing them as construction material.

The Environment

⿪⿪Limestone Quarries of the GroupThe group operates 19 major limestone quarries around theworld, most of which are near our integrated cement plants.
The total site area* of the quarries is 4,327 ha (Japan: 2,409
ha; U.S.A: 1,281 ha; other regions: 637 ha).
*The area where we conduct quarrying operations, which is measured by our standard.

Limestone Quarries of the GroupRegionNumber of sites

Requireconsideration*(number of quarries)

Site area (ha)

Japan

11

2,409

1

U.S.A

3

1,281

0

Other regions

5

637

0

*Require consideration refers to quarries that fall under category IV or higher in terms of the
IUCN’s Protected Area.

Collaborating with Society

Using the Integrated Biodiversity Assessment Tool (IBAT), we
checked whether any of our limestone quarries are in any ofthe protected areas defined by the International Union forConservation of Nature (IUCN). We found that none of ourquarries are within or adjacent to Protected Area Category
IV or higher categories. However, In Japan, one quarry is
within a Category IV area and two are adjacent to Category
IV areas.
All these quarries have obtained the necessary licenses
from business authorities and conduct environmentallyfriendly quarrying operations. They have no pending litigations
concerning biodiversity or other environmental issues.

Outline of Protected Area Categories of the IUCNIUCN Categories

OutlineⅠa: Strict Nature Reserve

Areas that have outstanding or representative
ecosystems or have geographical or physiologicalfeatures or species.

Ⅰb: Wilderness Area

Large unmodified or slightly modified areas.

Ⅱ: National Park

Areas set aside to protect the environmental integrityof the ecosystem.
Areas that have outstanding features of nature orcultural values.
Areas that require active interventions to maintainhabitats or address the requirements of particularspecies.

Ⅲ: Natural Monument or
FeatureⅣ: Habitat/Species
Management Area

Activities to Reduce Environmental Impact»»GRI 103-2, 3, 304-1, 2, 3, 4, MM1
Throughout the group we believe that balancing
the conservation of ecosystems in communities anddevelopment of the communities themselves is importantin quarry operations. With this belief, we hold discussions
with local governments, communities, and academics while
operating quarries. This helps to ensure we not only prevent
pollution but also conserve biodiversity and water resources
while minimizing our environmental impact.
⿪⿪Environmental Impact Assessment
In developing quarries, we conduct ex-ante assessmentsof environmental impact of the development of quarries
based on environmental research of the development
area such as on biodiversity and water resources. We thendiscuss the results of the research with local governments,
communities, academics, and other stakeholders toward
finalizing a development plan. Moreover, we regularly
monitor the surrounding environment during thedevelopment and operations of quarries and report to ourstakeholders on the environmental impact that the quarries
have in these areas.
For instance, in developing a new quarry in the Ofunato
Quarry in Iwate Prefecture, we conducted environmental
assessment for over ten years. We focused on preserving
rare wildlife in cooperation with external experts and local
residents. Furthermore, we minimized noise and vibration
during the development
work and also limited thetraffic hours for trucks used inconstruction work.

Raptors survey

42

TAIHEIYO CEMENT CSR REPORT 2019

Environmentally Sound
Products and Services
Environmental
Accounting⿪⿪Use of Old Quarry Sites
We reuse old quarry sites where operations have completely
ended, after consulting on their use with the surrounding
community. When greening a site we strive to restore it as
close as possible to the original natural environment.

Reducing Environmental
ImpactBotanical garden

ConservingBiodiversity
Biodiversity
Conserving

Rare plant(Lithospermum erythrorhizon)

Recycling Waste andOther Materials

⿪⿪Water Resource Conservation
In quarrying we also pay close attention to protecting
not only terrestrial plants but also water resources such as
spring water in an effort to protect biodiversity. From theperspective of conserving water resources, spring water
discharged from quarrying and rainwater is directed into
our retention basin to minimize impact outside of thequarrying area. In some quarries we drill wells for domestic
water and supply this water to local communities foreveryday use.

Appropriate Use of
Water Resources

Greening quarry slopes

Mitigating Climate
Change⿪⿪Greening Quarries
In quarrying areas, rocks and soil are exposed and there is noflora. We are continuing our efforts to restore greenery to thequarry slopes on terraces formed during the quarrying process.
These efforts are undertaken immediately after the slopes are
made if no quarrying work is expected for some time. We also
plant vegetation in stockyards for excavated topsoil where no
construction work is expected. At some quarries, at the requestof the community, we restore greenery if operations have beensuspended for several months.
We use as many types of native species as we
can in the locations where we plant, which are usuallymountainous. Group greening of quarries in Japan in fiscal
2018 involved a 36,414 m² area where seeds were sprayedand also 1,400 tree seedlings planted.
We make efforts such as conducting an annual tree
planting campaign with
contractors and local
residents to improveawareness of quarry
development and theimportance of greening.

Environmental
Management

⿪⿪Biodiversity Protection
We protect rare species through the installation ofprotective facility, planting, and restriction of development
work when it is determined their protection is required
through an environmental impact assessment.
Since 1972 we have been protecting and nurturing
rare species of native plants on Mt. Buko, which is between
Chichibu City and Yokoze Town in Saitama Prefecture andthe location of the Minowa Quarry of Chichibu Taiheiyo
Cement Corporation. We created a botanical garden at thequarry and, together with local experts and other people,
we preserve 68 native plant species there while increasing
the plant population. Additionally, our Central ResearchLaboratory has continued to research and develop ways topreserve and grow endangered plants and to verify genetic
diversity of native plant species using biotechnology.
Since 2016, in the course of developing the new quarryat the Ofunato Quarry, we have been working with experts
to preserve and cultivate various rare plant species in theirnative biospheres by creating a botanical garden on theside of the office of Ryushin Mining Co., Ltd.

Material Balance ofBusiness Activities

TAIHEIYO CEMENT CSR REPORT 201943

The Environment
Reducing Environmental Impact
We continue to protect the environment and reduce our impact on it by preventing pollution, making effective use ofresources, reducing waste, appropriately managing chemicals, and other means.

»»GRI 103-2, 3

Preventing Environmental Pollution»»GRI 305-7

Management

Example of Water Circulation Flow at a Cement Plant

0

2010

43 42

2014

2015

(%)
96.0

95.0

99.9

99.9

99.9 100.0

99.9

27

30

2017

2018

(FY)

0

100.0 100.0

100.0 100.0 100.0

81.6

84.7

84.2

2016

2017

2018

75
59.0

54.0

52.6

2014

2015

50

Collaborating with Society

44

25
0

2010

(FY)

■ Percentage of clinker volume manufactured in a kiln equipped with continuous NOx measurement■ Percentage of clinker volume manufactured in a kiln equipped with continuous SOx measurement■ Percentage of clinker volume manufactured in a kiln equipped with continuous dust measurement

Guidelines: WBCSD-CS “Emissions material monitoring Ver. 2.0” and GCCA “GCCA Sustainability
Guidelines for the monitoring and reporting of emissions from cement manufacturing Ver. 0“

TAIHEIYO CEMENT CSR REPORT 2019

Sedimentationtank

Oil film detectors,
turbidimeters,
pH meters

Riverway

Cooling
tower

On-site power
generation

Ocean

67

Monitoring
Rate WBCSD│GCCA
11.
モニタリング比率
100

Cooling water

Water-oilseparation
tank

50

39

2016

Ocean water

Cement kiln

50

47

100

80

On-site power
generation

62

1,187

1,197

78

75

Water recovery
cistern

Gutters

Watersprinklers

1,221

1,000

500

Recycled water

150

1,342

Equipment cooling, etc.

(g/t-clinker)
1,404

1,300

Water cistern

1,500

River
water

The Environment■ NOx (left axis) ■ SOx (right axis) ■ Dust (right axis)(g/t-clinker)

Make-up waterSpecific Emissions per Tonne of Clinker for Selected Pollutants
WBCSD│GCCA
10.
主要汚染物質の排出原単位

Material andfuel yards,
roads, buildings,
etc., at sites

Rainwater

Groundwater

⿪⿪Air Pollution
Air pollutants generated from cement production are
primarily NOx, SOx and dust in combustion gases emitted
from cement kilns. To ensure the proper management ofthese substances we remain committed to reducing air
pollutant emissions through measures such as continuously
monitoring emission levels, improving NOx reduction
systems and installing bag filter equipment to process gas
emissions. With such measures we focus on controlling theemission of air pollutants with the goal of maintaining fiscal
2010 emission levels.
Emissions of NOx and dust in fiscal 2018 were lower
than in fiscal 2010, whereas emissions of SOx were higher
because we accepted waste with high sulfur content.
Nonetheless, the level of SOx emissions was very low
compared to the limit set under the Air Pollution Control Act.

⿪⿪Water Contamination
Most of the water discharged from our plants to public
waterways is cooling water and not polluted as defined in
the Water Pollution Control Act. At our cement plants allwater resources are reused as circulation water to minimize
the impact of water discharge into public waterways.
Also, we are working to prevent the leakage of potential
pollutants by installing bunds around our oil tanks and acid/alkali tanks. Moreover, we are installing sedimentation tanks,
water-oil separation tanks, oil film detectors, pH meters andsuspended solid sensors on water discharge routes thatconnect to public waterways.

⿪⿪Soil Contamination
In fiscal 2000 Taiheiyo Cement evaluated the risks associatedwith cement plants that may be sited on contaminatedground by consigning an expert consultant to undertakea soil history survey. We are continuing to conduct drillingand other studies, starting with the higher-risk locations, toverify whether or not the soil is contaminated. Actions will
be taken as necessary based on the findings.
We are also working to eliminate the possibility of soil
contamination by preventing the leakage of wastewaterfrom scrapyards and fluid from oil tanks, acid/alkali tanks,
pipes and so forth.

»»GRI 306-2

Volumeof Waste to Landfill
12. 廃棄物最終処分量

Reported Levels of Dioxins and Ferric Chloride Emissions
Non-consolidated

(t)

300

»»GRI 306-2

⿪⿪Pollutant Release and Transfer Register (PRTR)
The PRTR Law requires that we report on equipment
installed at our Kumagaya plant for the washing ofmunicipal waste incineration ash. This washing process uses
water, and our total discharge of dioxins and ferric chloride
into public waterways are as follows.

Reported Levels

Emissions

FY2016FY2017FY2018

Dioxins (mg-TEQ)

0.0

0.0

0.0

Ferric chloride (kg)

140

170

170

100
28
2015

5
2017

1
2018

(FY)

(%)
100

88.2

95.6

89.1

75

59.6

65.7

Status of PCB Waste Disposal Non-consolidated

25
0

2014

2015

2016

2017

2018

(FY)

PlannedProcessing
for FY2019

Capacitors

6

6

11

1

1

Transformers

0

0

0

0

0

Electricalballasts

370

2,447

110

2,707

2,435

Total

376

2,453

121

2,708

2,436

Environmental
Accounting

⿪⿪Initiatives at Offices
Our special purpose subsidiary, Taiheiyo Service
Corporation, installed a paper recycling machine to recycle
the company’s used copy paper, and in fiscal 2018 werecycled approximately 530,000 sheets of A4 size paper.

Waste(Unit: number of machines)

Stored inStored in
New Target
Processed in FY2018 (asFY2017 (asforFY2018of March 31,
of March 31,
FY20182019)
2018)

Environmentally Sound
Products and Services

50

Reducing
Environmental
Reducing Environmental
ImpactImpactRecycling
Rate of Residual Cement Non-consolidated
13. 入れ替え品の再生率

⿪⿪Management of PCB Waste
The Act Concerning Special measures against PCB Waste
was enacted in June 2001. Under this law we ensurethat PCB waste at all 43 of our facilities nationwide isproperly stored and processed, and we annually report aninventory. We signed a processing contract with the Japan
Environmental Safety Corporation (JESCO) in 2006 and areprocessing the PCB waste that we have stored in line with
our plan.
In fiscal 2018, 121 capacitors and electrical ballasts
stored at the Kamiiso plant and Tokyo and Chubu-Hokuriku
Branches were processed as planned.
Capacitors stored in the Saitama Plant and electricalballasts stored in the Oita, Fujiwara, Kumagaya and former
Chichibu plants are scheduled for processing in fiscal 2019.

Conserving Biodiversity

⿪⿪Initiatives at Service Stations
Service stations reduce the waste handled by waste disposal
contractors by returning any residual cement that remains
in silos after switching the cement products. Returned
cement is recycled and used as raw material. In fiscal 2018,as was the case in fiscal 2017, the recycling rate remained
low as a considerable amount of residual cement had tobe returned to the plants by trucks, thereby generating asignificant environmental impact at some service stations.

Recycling Waste andOther Materials

2014

5
2016

Appropriate Use of
Water Resources

258

200

0

Mitigating Climate
Change⿪⿪Initiatives at Plants and Quarries
Our cement plants and quarries reduce the amount ofwaste handled by disposal contractors by reusing wastefrom operations as material for cement production. We alsoendeavor to reduce the volume of waste to landfill throughrecycling made possible using chromium-free kiln bricks.

Appropriate Management of Chemical
Substances

Environmental
Management

Reducing Waste

Material Balance ofBusiness Activities

TAIHEIYO CEMENT CSR REPORT 201945

The Environment
Environmentally Sound Products and Services
In response to public concern about environmental protection we offer eco-products and services that capitalize on the
cement and related technologies we have developed, and contribute to conserving resources and reducing CO₂ emissions.

»»GRI 103-2, 3

⿪⿪Taiheiyo SUPER MIX and Taiheiyo ULTRA SUPER MIX,
Admixtures for High-strength Concrete

⿪⿪ILB Easy Geo-Filter ®, a Filter Layer that Protects the
Subgrade from Rainwater in Permeable Pavement(Taiheiyo Materials Corporation)

Management

Taiheiyo SUPER MIX and Taiheiyo ULTRA SUPER MIX are
high-strength mineral admixtures that densify the pore
structure of concrete. While heat curing is a common
method for producing high-strength concrete products,
Taiheiyo SUPER MIX achieves the same function without
applying autoclave curing. As a result, the product reduces
the consumption of fossil fuels, equipment costs and CO2
emissions. Its high strength also supports final productswith smaller cross-sectional areas, thereby consuming far
fewer raw materials and less fuel with significantly lower
environmental impact. With strong market demand forhigher strength concrete, high-strength admixtures are
expected to serve as an environmentally sound option.

(Taiheiyo Precast Concrete Industry Co., Ltd.)

Permeable pavement typically requires a sand filter layerthat is 50 mm to 100 mm thick on the subgrade to protect
the subgrade from being softened by the infiltration of
rainwater penetrating the base course from the roadsurface. The ILB Easy Geo-Filter is a nonwoven fabric sheetwith a thickness of 0.4 mm that functions as a sand filter
layer when installed on the subgrade. As a thin sheet, it is anenvironmentally sound product that contributes to lower
CO2 emissions by reducing the volume of excavation workand excavated soil. In addition, the use of the filter layer
instead of sand brings down both construction costs andtime required to complete the work.
(mm)

Permeable interlocking block60

Sand mat

30

Base course(crusher run)

100

Subgrade

Replacing a conventional sand filter layer
with the Easy Geo-Filter(50 mm–100 mm)

The Environment

A fine and stable hydration product able toachieve high strength quickly

Application for high-strength concrete piles

⿪⿪WHJ® Method, a Ground Improvement Method for
Reducing Environmental Impact in River Areas(Onoda Chemico Co., Ltd.)Collaborating with Society

The WHJ (Waterfront Hybrid Jet) method was developed
for ground improvement work on seacoasts adjacent torivers and the mouths of rivers. It significantly reduces thearea of ground affected by the work compared to othermethods by combining mechanical agitation with a highpressure jet. It also enables low displacement work whenapplied with our proprietary soil excavation technology.
Because the soil stabilizer barely mixes into the excavatedsoil, the water is not polluted. In addition, excavated soil
is not scattered into the water since no air is used during
improvement work, andso ground improvement
work is completed with low
environmental impact.
WHJ method

46

TAIHEIYO CEMENT CSR REPORT 2019

Installing the ILB Easy Geo-Filter

Typical structure of permeable interlocking
block pavement

⿪⿪Reco-Keep LW, an Anti-washout Underwater High
Water/Binder Ratio Type Filler(Chichibu Concrete Industry Co., Ltd.)A recent rise in the number of accidents involving thedestruction and collapse of street surfaces caused byunderground voids has drawn increased attention anddemand for rapid restoration work requiring filling or othermethods. While cement-based materials have typically
been used as filler, many related cases have involved
residual water in the underground voids. This has led toadditional problems such as the outflow of dissolved
cement components that impede the effectiveness offilling work as well as dissolved cement components
impacting the neighboring environment. Reco-Keep LW isan environmentally sound pre-mixed filler with sufficient
fluidity and hardening properties for filling undergroundvoids, and its anti-washout underwater property also
suppresses the dissolution of cement components into
water. Mobile equipment for supplying materials is available
for large-scale restoration work.

Filling work

Vehicle-mounted filler production equipment

Environmental Accounting
We calculate the costs and benefits of environmental conservation to accurately assess the cost effectiveness of our businessactivities and capital investment by ascertaining our environmental impact and comprehensively identifying the costs ofenvironmental conservation.

»»GRI 103-2, 3Category

Upstream and downstream
costs
Administrative costs
R&D costs

Main Activities
Water pollution prevention

FY201913,7297,782

Cost
FY2017
15,7837,932

FY2018
10,632
3,996

Waste pretreatment facilities

1,972

779

381

5,371

7,314

6,197

Waste treatment
Recycling waste and byproducts as alternative raw
materials and fuels for cement
Implementation of theenvironmental management
systemInnovations to the cement
production process
Factory tours

73

38

243

576

537

439

655

1,313

3,933

4,633

4,933

4,955

34

31

65

317

173

141

346

256

556

739

774

812

1

0

2

24

19

28

66

169

0

79

53

87

4,356

3,259

6,717

19,521

21,735

16,655Emission levies
Total(Unit: million yen)

FY2016FY2017FY2018

Total investment

22,507

14,52620,020Total R&D
expenditure

1,216

1,192

1,195

ImpactReduction (t)Inventory Market Price(Yen/t)14.

Economic Benefit(Billions of Yen)

外部経済効果（2016年度）(Billions of yen)CO₂

1,976,702

818

1.6

120

Crude oil

130,027

18,4002.4

90Natural resources

4,872,909

1,000

4.9

60

Waste

4,792,692

15,000

71.9

80.8

Total

0

86.6

2016

92.4

80.8

2017

2018

(FY)

About Taiheiyo Cement’s External Economic Benefit Evaluation

Introduction of Furnace-front Waste Plastic Injection
Equipment for the No. 3 Kiln at the Oita Plant

Investment:
Approximately 0.36 billion yen

Reduction in CO₂ emissions:
11,238 tonnes/year»»GRI 201-2

Material Balance ofBusiness Activities

Japan has recently come up against the serious challenge of surplus waste plastic following stricter
restrictions by China and Southeast Asia on the import of waste plastic. We are aggressively pursuing
the recycling of waste plastic as an alternative fuel.
As part of this effort we installed a crusher for waste plastic and furnace-front waste plastic
injection equipment for the No. 3 Kiln of the Oita plant at the end of fiscal 2018. This new facility willtreat a larger volume of waste plastic as alternative fuel towards further reducing CO2 emissions andenvironmental impact.

Environmental
Environmental
Accounting
Accounting

Environmental Accounting for One of Our Projects

EnvironmentallySound
Environmentally Sound
Products
andServices
Services
Products and• Taiheiyo has developed a unique evaluation method to estimate the contribution to overall environmental benefit to society by utilizing waste materials from other industries.
• We use information, including data collected for the WBCSD-CSI and GCCA Cement CO2 Protocol, to calculate the reduction in consumption of fossil energy and natural resources
associated with the use of waste and by-products.
• EEBs are calculated by multiplying the reduced volumes of CO2, crude oil, natural resources and waste (resulting from the utilization of waste and by-products in the cement production
process compared to cement production without using waste and by-products) by market prices for each of the four items. The prices, assumed to be kept constant at year 2000 levels, areestimated as follows: CO2: 3,000 yen/t (a hypothetical CO2 emission tax rate); crude oil: import price; natural resources: estimated price; waste: controlled landfill cost in the Tokyo area.
• A portion of the EEB, such as the waste treatment fee, is accounted for in Taiheiyo’s profit and loss statement.

Reducing Environmental
ImpactClimate change
mitigation
Depletion of energy
resources
Depletion of mining
resources
Shortage of landfills

Inventory»»GRI 201-1

Conserving Biodiversity

External Economic Benefits (FY2018) Non-consolidated

Recycling Waste andOther Materials

⿪⿪External Economic Benefits Derived from the Recycled-Waste-to-Cement System
Taiheiyo Cement uses the external economic benefit
accepted from outside the company. As a type of deemed(EEB) evaluation method to express, in monetary terms, its
benefit, an EEB of 80.8 billion yen was identified for fiscal 2018,
evaluation of socioeconomic benefits from environmental
representing a 13% decrease on the previous year as a result of
impact reduction due to the increase in recycling of wastes
a decrease in the total amount of waste and by-products used.

Appropriate Use of
Water Resources

Social activity costs
Environmental remediation
costs(Unit: million yen)

Investment
FY2016 FY2017 FY2018
3,254
1,490
2,161
1,209
673
1,537

Mitigating Climate
ChangeBusiness area costs
Pollution prevention
Global environmental
Details
conservation
Resource recycling»»GRI 201-2

Environmental
Management

Environmental Conservation Costs Non-consolidated

Crusher for waste plastic at the Oita plant

TAIHEIYO CEMENT CSR REPORT 201947

The Environment
Material Balance of Business Activities
In order to help create a low-carbon, recycling-oriented society we track and manage the various ways that our businessactivities impact the environment and remain committed to initiatives such as recovering waste heat from our manufacturing
processes to generate electricity (cogeneration) and using waste and by-products as raw materials and fuel.

»»GRI 102-6, 7, 45, 301-1, 2, 302-1, 305-1, 2, 7, 306-1, 2

INPUT
EnergyRaw Materials
2,222,262

Petroleum coke (t)300,849

Management

Heavy oil (kl)

21,356

Diesel oil (kl)

19,467

Kerosene, other (kl)

16,203659,695

Purchased electricity (MWh)572,963

Silica (t)80,00079,33470,000Explosives (t)1,670,359

Refractorymaterial (t)Gypsum (t)103,325

Other (t)6,195
242,905

By-product gypsum (t)494,100

Fly/Coal ash (t)1,995,219

Blast furnace slag (t)882,863

Other (t)1,964,167

Grinding media/
Steel casing (t)76,164

79,139Water total (1,000 m3)

164,393

4,065

Tap water (1,000 m )

359

9,491

Industrial water (1,000 m3)

3,381

River water (1,000 m3)

4,842

Ground water (1,000 m3)

6,538

3

Rainwater (1,000 m )382

Seawater (1,000 m3)

148,891

6,407

Other (t)38,444■ Water Withdrawal
49,62550,00040,00050,0003

1,969

Lubricants/
Chemicals (kl)

(1,000 t)

74,736

Water

9,512

■ Total Material Input

61,21360,000Additives, etc. (t)25,489Iron wastes (t)■ Total Energy Input(1,000 GJ)

Other Materials

42,035,161

Clay (t)Wastes/By-products

Recycled fuels (t)Limestone (t)Natural Resources

Coal (t)40,58744,49742,08744,494(1,000 m3)

250,000
200,000

The Environment

30,000150,000

20,000100,000

10,00050,000174,289

167,760

165,274

169,061 164,393

2014

2015

2016

2017

40,00030,00020,00010,000
0

2014

2015

2016

2017

0

2018

2014

2015

2016

(FY)

Power
Generation

2017

2018

0

(FY)

Coal, petroleum coke, water, etc.

(FY)

Electric power
Power Plants

Collaborating with Society

MineralResources

Electric power

Diesel, explosives, etc.

Quarries

CementCoal, purchased electricity,
additives, etc.

Natural mineralssuch as limestone

Limestone products

Cement Plants

Environmental

Flue-gas
desulfurization

Waste and by-products
Fly-ash products
Ash Centers

48

Aggregates

TAIHEIYO CEMENT CSR REPORT 20192018

Service Stations

◦ Scope of reporting organizations
The scope of reporting organizations includes our four business segments (cement, mineral resources, environment and power generation) at our (non-consolidated) quarries
and plants and the following quarries of our subsidiaries that supply material to us (9 quarries of 8 companies) and power plants of our affiliated companies (2 plants).
Ofunato Quarry (Iwate Prefecture)
Ryushin Mining Co., Ltd.
Buko Quarry (Saitama Prefecture)
Buko Mining Co., Ltd.
Mido Quarry (Saitama Prefecture)
Chichibu Mining Co., Ltd.
Fujiwara Quarry (Mie Prefecture)
Ishizaki Co., Ltd.
Shin-Tsukumi Quarry (Oita Prefecture) Oita Taiheiyo Mining Corporation
Toumi Quarry (Niigata Prefecture)
Myojo Cement Co., Ltd.

Miwa Quarry (Saitama Prefecture)
Kanouyama Quarry (Gunma Prefecture)
Tosayama Quarry (Kochi Prefecture)
Tosa Power Plant (Kochi Prefecture)
Itoigawa Power Plant (Niigata Prefecture)

Chichibu Taiheiyo Cement Corporation
Chichibu Taiheiyo Cement Corporation
Tosayama Taiheiyo Mining Corporation
Tosa Power Inc.
Itoigawa Power Inc.

Environmental
Management

OUTPUT
CO2 Emissions

NOx Emissions

CO2* (1,000 t)

13,035

From purchased electricity (1,000 t)

199

Waste Emissions

NOx* (t)11,81815,00014,00013,00012,00011,000

Amounts to landfill (t)Valuables such as scrap metals (t)(t)

14,62913,361

30,00013,03524,78023,140300

22,83320,000

2015

2016

2017

0

2018

2015

2016

2017

SOx* (t)

2,614

2,614

Dust* (t)

500
400
300
200
100
0

1,000
0

2014

2015

2016

2017

97

2018

434

334

386

157,017

Seawater (1,000 m3)

148,891

Fresh water (1,000 m3)

7,911Household waste water (1,000 m3)

215

97
2014

2015

2016

2017

2018

(1,000 m3)(FY)

150,000

0.23
Number of kilns covered by the study
Average exhaust gas concentration(ng-TEQ/m3N[O2=12%])161,217

157,155

159,645 157,017

2014

2015

2016

2017

100,000
FY2016FY2017FY201850,000

12

12

12

0

0.002

0.005

0.005

0.06

0.17

0.23

2018
(FY)

1,838,670

Aggregates (t)8,789,107

Limestone products (t)5,208,300

Other (t)340,523Power
Generation
Business

Blended cement (t)2,289,173

Cement based soil stabilizers (t)565,400

Clinker (for export) (t)1,466,174

Flue-gas desulfurization (t)134,941

Fly-ash products (t)321,447TAIHEIYO CEMENT CSR REPORT 2019

Material
Balanceofof
Material Balance
Business
Activities
Business Activities

Environmental
Business

13,455,258

Environmental
Accounting

CementBusiness

Portland cement (t)Products by Business

MineralResources
Business

Environmentally Sound
Products and Services

Electric power (sales ofelectricity) (MWh)Reducing Environmental
ImpactTotal emissions (g-TEQ/year)

165,485

Conserving Biodiversity

200,000

Dioxin Emissions*Cement and power generation businesses only
(excluding purchased electricity)

1
2018

Total water discharge (1,000 m3)

313

(FY)

Dioxins* (g-TEQ/year)

52017

Recycling Waste andOther Materials

2,000

2,180

5
2016

Water Discharge

(t)

2,267

2015

(FY)

*Cement and power generation businesses only
(excluding purchased electricity)

(t)

2,010

2014

Dust Emissions*Cement and power generation businesses only
(excluding purchased electricity)

2,331

28

0

(FY)

SOx Emissions

3,000

100

2018

(FY)

258

200

11,818
2014

198,466

Amounts to Landfill(t)

24,48010,000
2014

1

Appropriate Use of
Water Resources

0

14,976
13,467

1,696
Mitigating Climate
Change*Cement and power generation businesses only
(excluding purchased electricity)*Does not include CO2 from transportation, which is
calculated separately (see page 38)(1,000 t)

Waste externally consigned for treatment (t)49Collaborating with Society
Partnership with Customers

Quality, Technologies and R&D
We have been developing production and quality control technologies for the manufacture of cement for more than 100
years. Using these technologies we have advanced our initiatives to guarantee the safety and security of our products. We
maintain the highest product quality in the industry and continually improve product quality and systems to earn customer
trust in our brand in both domestic and overseas markets.

»»GRI 103-2, 3
Quality Policy

Management

In 1998, the year of Taiheiyo Cement’s inception, weestablished a quality policy based on our management policy.
In fiscal 2018 we revised the policy by incorporating a visualdescription of the code of conduct. Through those efforts
we have been continually raising awareness of the quality
policy across the organization and continue to make every
effort to be a company that customers trust and rely on. The
actions of employees in accordance with the policy and theimplementation of our technological capability and quality
assurance system generates a sense of achievement, while atthe same time providing high-quality products and services.

Quality Policy
Improve customer satisfaction by ensuring each employee ispursuing quality that meets the needs of users in the Pacific
Rim from a global perspective and providing quality assurance.

The Environment
Collaborating with Society

50

Quality Assurance Initiatives and Quality
Management System (QMS)»»GRI 416-1

We focus on stabilizing and improving product quality
while capitalizing on the production and quality control
technologies we have developed over the years. Recently,
we have enhanced product quality control by capitalizing
on advanced technologies to ensure improved stability
such as an online analysis system for raw materials, clinker
and cement, and the measurement of clinker minerals by
X-ray diffraction.
As one of our quality assurance initiatives we obtained
ISO 9001 certification, the international standard for quality
management systems, from the Japan Testing Centerfor Construction Materials. The scope of our certificationencompasses the development, design and production ofa range of cement, cement clinker and cement-based soil
stabilizer products.
Moreover, 90% of our cement plants in and outside
Japan, including group companies, have obtained ISO 9001
certification.
We will continue to fully apply the ISO 9001 approachin addition to our own quality management system tomore deeply integrate our quality management systemand business processes in an effort to strengthen our ability
to continually provide ISO 9001-compliant products anddeliver greater customer satisfaction.

TAIHEIYO CEMENT CSR REPORT 2019

⿪⿪Strengthening Our Relationship with Customers
We place the highest priority on achieving greater customer
satisfaction. We periodically exchange information among
business units to strengthen production focused on qualitythat meets customer expectations. From our sales andtechnical staff at the branches and sales offices, we collectinformation on customer requirements for product quality
and services, including delivery, and analyze the information
toward identifying possible improvements. To encourage
overseas customers to adopt our high-quality products
we have started to incorporate local needs into productquality, just as we do for domestic customers, and we arefine-tuning our products to meet the requirements of eachoverseas market. We respond to each quality issue raisedby customers and strive to improve product quality andcustomer satisfaction. Also, we actively identify potential
quality risks, investigate their causes and implement
extensive countermeasures while enhancing crossdivisional coordination toward establishing a more secureand safer quality assurance system.
In addition, we have been expanding our quality
assurance system to include the products of our groupcompanies beyond Taiheiyo Cement products. We strive
to identify and address material issues in a well-organizedmanner through cross-divisional activities toward
strengthening the reliability of the Taiheiyo brand as well as
customer satisfaction.
QMS Management System

Customers
Products andtechnical services

Quality requirements

Sales Division
Sales

Technical Services

Distribution
Shipping inspections

Research & Technology Development Division

Production Division

Clarify quality requirements● Production condition management● Building quality into the process

Review quality requirements● In-process inspections

Quality design in accordancewith quality requirements
Prototyping and evaluation

Material Procurement

Acceptanceinspections

Transition of Minor Components of Ordinary Portland Cement(Unit: mg/kg)»»GRI 416-1
FluorineAllchromium
Watersoluble
hexavalent

Lead

Arsenic

Fluorine
Cadmium

FY2018Average

—

377

421

382

448

427

Maximum

—

418

522

485

543

504

Minimum

—

321

376

313

339

355

Average

—

75

74

81

79

77

Maximum

—

86

81

91

88

95

Minimum

—

65

61

74

69

64

Average

17.4

7.4

7.4

8.3

7.4

8.6

Maximum

32.3

8.6

10.6

9.8

9.3

11.4

Minimum

5.3

6.1

5.7

7.1

6.0

5.4

Average

556

540

529

627

530

600

Maximum

1,059

711

659

741

659

772

Minimum

137

412

436

496

390

449

Average

221

61

62

65

57

62

Maximum

668

85

80

89

84

84

Minimum

18

42

45

53

41

38

Average

122

183

216

259

223

274

Maximum

233

281

355

355

319

415

Minimum

17

131

133

154

162

163

Average

17

12

10

14

12

18

Maximum

39

30

17

39

43

47

Minimum

2

5

4

4

2

6

Average

—

0.7

0.6

0.5>

0.7

0.5>

Maximum

—

0.8

0.7

0.5>

1.2

0.5>

Minimum

—

0.5>

0.5>

0.5>

0.5>

0.5>

Average

1.5

1.8

1.8

1.5

1.3

1.3

Maximum

2.6

3.0

3.0

2.0

2.0

2.0

Minimum

0.6

1.0>

1.0>

1.0>

1.0>

1.0>
0.005>

Average—

0.006

0.005>

0.005>

0.008

Maximum—

0.008

0.005>

0.005>

0.015

0.005>

Minimum—

0.005>

0.005>

0.005>

0.005>

0.005>

Minor Components of Ordinary Portland Cement

Communication with
Communities

Mercury

FY2017

Information Disclosure

Selenium

FY2016Creating a Healthy and
Safe Workplace

Copper

FY2015

Respecting Human Rights and Diversity
and Creating an Energetic Workplace

Zinc

FY2014

Supply Chain
Management

Today every product is expected to be safe and cement, asa construction material that is indispensable for developing
social infrastructure, is no exception. The cement industry
has long made use of industrial waste and by-products
such as blast furnace slag, coal ash and by-product gypsum
as substitutes for natural mineral resources. Furthermore,using technologies we developed to recycle household
waste such as the AK system to recycle municipal waste andthe incineration residue recycling system, we also recycle
construction-related soil and waste materials into raw
material and fuel for cement production. When our cement
plants accept waste we prevent its dispersal and minimize
the release of odor by transporting the waste in a tightly
sealed panel truck and storing it in a fully enclosed facility toprotect the environment of the surrounding area as well as
inside the plants.
Wastes, as well as natural raw materials, contain minutequantities of heavy metals such as chromium and lead. We
continually reinforce the control of minor components as thevolume of waste we receive at our cement plants increases.
When we receive new types of waste or waste from newsources we strictly apply the rules under which we conduct
three kinds of inspection related to the source of the waste,
its chemical composition and the results of trial use to
identify any potentially negative impact on product qualityor the surrounding environment. We will then make a final
determination on whether to receive the waste.

FY1987

Quality,
Technologies
Quality, Technologies
andR&D
and R&D

Safety for Cement and Cement Products

Range found in soil*(mg/kg)

1,600
1,500
900
800
700
600
500
400
300
200
100
90
80
70
60
50
40
30
20
10
1
0.6
0.5
0.4
0.3
0.2
0.1
0

Bar graph represents our FY2018 averages
600
427
274

77
62

18
1.3

(8.6)

0.5
0.005

Fluorine

All
Zinc
Lead
chromium(water-soluble hexavalent chromium)

CopperArsenic

Selenium Cadmium Mercury*H.J.M. Bowen, Environmental Inorganic Chemistry. Translated by Teruo Asami and Mitsuo
Chino. Hakuyusha, 1983.

TAIHEIYO CEMENT CSR REPORT 201951

Collaborating with Society

Ensuring Product Safety Following a Nuclear
Accident»»GRI 416-1, 417-1

Management

As a consequence of the nuclear accident at the Fukushima
Daiichi Nuclear Power Station of Tokyo Electric Power
Company in 2011, we discovered that some industrial waste
used for making cement contained radioactive material. We
have established a system to ensure that the radioactive
concentration in cement shipped from our plants is below
the safety limit* set by the Japanese government by strictly
controlling the radioactive concentrations in raw materials
and fuels for cement. In the interest of full disclosure wepost measurements of radioactive concentrations in our
products on our website every month.
*The Japanese government set the limit of 100 Bq/kg, effective May 2011, as the safety standard
for radioactive concentrations in cement.

For more information about radioactive concentrations in our
products, please visit:▪	https://www.taiheiyo-cement.co.jp/news/sokutei.
html (Japanese only)
The Environment

Information Provision Using SDSs and Labeling»»GRI 417-1
To ensure the safety of cement users, we make Safety Data
Sheets, which contain hazard identification details, andmake these sheets available on our website, and we use
labels with the information for bags and flexible containers.

User Societies and Industry Associations»»GRI 417-1

Collaborating with Society

52

We founded and manage a variety of societies for
cement users and industry associations to support
them in strengthening their businesses and developing
technological competitiveness. The National Taiheiyo
Cement Ready-mixed Concrete Society, the largest of theseorganizations, has established 10 regional Taiheiyo Cement
Ready-mixed Concrete Societies from Hokkaido to Kyushu.
For technical support we hold technical sessions andpresentations while conducting activities under a specifictheme that meets regional user requirements. We also
support users in obtaining qualifications such as Authorized
Concrete Engineer, Authorized Chief Concrete Engineer, andAuthorized Concrete Diagnosis and Maintenance Engineer.
In addition to the Ready-mixed Concrete Society,we established other associations such as the Taiheiyo
Cement Association for Paving Block Industry and SPLITTON
Association Japan to proactively deliver technical support

TAIHEIYO CEMENT CSR REPORT 2019

for the mutual development of concrete companies. We willcontinue to support activities that benefit cement users.
Representative Activities of the Ready-mixed Concrete Society(under Specific Themes)
RegionDescription

Hokkaido

Survey of a risk assessment related to safety

TohokuTokyo

Case study of annual policy and quality policy at ready-mixed concrete
plantsHealth and safety activity competition and workshop for young andmiddle-class engineers to develop a booklet on representative cases atready-mixed concrete plants

Kanto

Concrete forum (Gunma Prefecture)

Hokuriku

Experiencing the mixing of J ring flow

Chubu

Workshop on disaster prevention: Improving awareness of disasterprevention at workplaces

Kansai

Evaluation of passability of concrete under excitation, using a box-typecontainer

Shikoku

On-site learning about the regular inspection of testing devices toimprove testing staff skills

ChugokuConcrete Compressive Strength Competition

KyushuDeveloping a booklet on representative cases of originality andingenuity to improve daily duties at ready-mixed concrete plants

⿪⿪Initiatives through the Taiheiyo Cement Association
for the Paving Block Industry
Association members participated in an international
convention held in Seoul, South Korea in October 2018, andstudied the state of global R&D activities in the industry as
part of their efforts to promote concrete paving blocks.
The association held an overseas study tour andworkshop in April 2019. The tour’s main event was a visit
to one of the world’s largest trade shows for construction
machinery, Bauma2019, held in Munich, Germany. During
the tour, we gathered the latest information on advanced
robotic technologies to save labor at production sites, amajor challenge in Japan, and on sophisticated machinery
for concrete work. We will cooperate with member
companies to provide feedback on the findings of this study
for future technological development in Japan.

International convention (South Korea)

Studying advanced machinery for concrete
work (Germany)

Communication with
Communities

⿪⿪Development of Functional Hollow Particles
Functional hollow particles are hollow microsphere madeof alumino-silicate and have very small diameters, ranging
from 1 μm to 10 μm. With their shell thickness of 0.1 μm orless, they have a high hollowness of at least 70%, compared
to 60% for traditional products. These characteristics provide
superior heat insulation and lightweight performance, sothat they are used as energy-saving materials. Additionally,
their electrical characteristics are focused on as well, so thatthe development of application as raw material of electricalcircuit board is going on. Thus, they are expected as afunctional material which can expand new businesses inboth mineral resources and environmental fields. At the endof fiscal 2018, we have installed a large-scale production
facility with an annual commercial production capacity ofat least 7 tonnes, and performance testing is promoted tolaunch its commercial production.

Information Disclosure

⿪⿪Life Extension of Road Bridges by Applying Latex
Modified Concrete Pavement
Over the next ten years the service life for about half ofthe 700,000 road bridges in Japan will exceed 50 years.
Maintaining the safety of these deteriorated structures has
therefore become a key social concern. We are offering
technology to extend the life of these bridges by applying
concrete pavement to repair deteriorating or damaged
areas of the deck, the plate-shape component of the bridgeon which vehicles operate. We use LMFC®, which Taiheiyo
Materials Corporation developed as a material for concrete
pavement. LMFC® prevents de-icing agents such as chloride

Production system for LMFC®

Creating a Healthy and
Safe Workplace

2

Respecting Human Rights and Diversity
and Creating an Energetic Workplace

⿪⿪Demonstration of CO2 Separation and Capture from
Cement Kiln Exhaust Gas
We started a demonstration test using a small-scale test
plant to develop technology for CO2 separation and capture
from cement kiln exhaust gas in the Fujiwara plant inJanuary 2019. The test supports developing technologythat will significantly reduce CO2 emissions and global
environmental impact, and adopts the chemical absorption
method which leverages the properties of amine based
absorbents to absorb and release CO2. We verified that highpurity CO2 with 99% concentration is captured from actual
kiln exhaust gas.
We have participatedin an environmentallyfriendly CCS verification
project of the Ministry ofEnvironment since fiscal
2018. The initiative will
focus on R&D activities
to reduce further CO2
emissions while alsoplanning a larger-scale
test and exploring
the development of
Test plant for CO separation and capture
technology for using
captured CO2.

Road bridge reinforced with concrete pavement
using LMFC® (Hokuto City, Hokkaido)

Supply Chain
Management

Benefiting from the cooperation between the Central
Research Laboratory and each business division, the scopeof our R&D encompasses the fields of international mineral
resources, the environment, building materials, architecture
and civil engineering, with a focus on cement and concrete.

from penetration intoand degrading the deck
while also reinforcing
weakened deck. The
material is already being
used in regions subject
to severe weather
or environmental
conditions. We will focus
on further disseminating
this technology,
thereby contributing
to the construction ofsafe and secure social
infrastructure.

Quality,
Technologies
Quality, Technologies
andR&D
and R&D

Promotion of R&D Activities

Shell thickness
is several tens ofnanometer or less

Hollow

Diameter is 1−10 μm

TAIHEIYO CEMENT CSR REPORT 201953

Collaborating with Society
Partnership with Suppliers

Supply Chain Management
Our continued growth depends on building relationships of trust and collaboration with business partners and governmental
bodies, paying due consideration to their efforts for continued growth and preventing complicity with any actions that may
be improper.

Our Business Partners»»GRI 102-9

Management
The Environment

We produce and use cement and concrete in our major
business activities. Much of its main raw ingredient,limestone, is mined and supplied by our group companies,
which also manage the mines. Coal, our principal fuelsource, is supplied by companies outside the group.
To recycle wastes and by-products from our cement
production process, we rely on many types of industries invarious places.
A significant part of our production process is
automated. The construction work for the maintenance andmanagement of our production facilities is outsourced tocontractors when needed.
Our cement products are primarily supplied to building
materials companies. Raw materials and products aretransported by both group and non-group companies (formore on their activities, see Pages 8 and 9).
Our group operates cement production sites in Japan, theU.S., China, Vietnam, the Philippines and Papua New Guinea.
By closely communicating with the governments in theregions and countries where we operate we ensure that we
observe their laws and strive to meet their needs and requests.

Fundamental Policy»»GRI 102-16

Collaborating with Society

54

Our growth depends on the growth of our business
partners. To build relationships of trust and work in concert
with our business partners, we are sincere and fair in ourdealing with them and fulfill our agreements. Under thesection entitled “Dealing outside the company in goodfaith” in our Standards of Conduct, we declare a numberof commitments to ensure that “We will act in an ethicalmanner and abide by the laws and regulations of thosecountries in which we operate”, a statement in our Business
Principles. We manage our supply chain in compliance withthese commitments:
1. We will conduct fair marketing and bidding, free from
unfair practices such as collusion and cartels.
2. We will maintain decent and transparent relationships
with our contractors.
3. We will select business partners in a fair and equitablemanner.
4. We will not offer entertainment or gifts to customers
that go beyond what is legally and socially acceptable.
5. We will produce honest, sincere and faithful
advertisements, displays and presentations.

TAIHEIYO CEMENT CSR REPORT 2019

6. We will respond sincerely to customer feedback.
7. We will maintain transparent relationships withgovernments.
8. We will respect the cultures and customs of the placesin which we operate.
We also established the Basic Policy Concerning
Procurement in October 2017 to ensure commitments 2
and 3 and ask our contractors to share them.
Please visit our website for more information on the Basic Policy
Concerning Procurement.

▪ https://www.taiheiyo-cement.co.jp/english/
	CSR → Collaborating with Society →Supply Chain Management
To respond to internationally reinforced controls overacts of bribery and strengthen our prevention initiatives
against corruption (commitments 4 and 7), we establishedthe Anti-Bribery Policy in January 2017, concurrent withthe release of a statement by our president declaring ourgroup’s stance against bribery.
Please visit our website for more information on our Anti-Bribery Basic
Principle (Policy).

▪ https://www.taiheiyo-cement.co.jp/english/
	CSR → Management → Risk Management andCompliancet → Compliance Guidelines

Supply Chain Due Diligence»»GRI 308-2, 414-2

In fiscal 2018 we conducted a questionnaire in accordancewith “Taiheiyo Cement Purchasing Basic Principle”, using
the CSR/Sustainable Procurement Self-assessment
Questionnaire, published by Global Compact Network
Japan. The questionnaire covers the following issues: I.
Corporate governance related to CSR, II. Human rights, III.
Labor, IV. Environment, V. Fair business practices, VI. Quality
and safety, VII. Information security, VIII. Supply chain, and IX.
Local communities.
The questionnaire was sent to our first-tier suppliers,
excluding subsidiaries, whose sales to us account for 90
percent of our total purchases in cash terms. We received
responses from approximately 80 percent, representing
about 70 percent of our total purchases in cash terms.
The questionnaire results found no suppliers who
required particular instructions. We are going to expand
the scope of our self-assessment and go beyond aquestionnaire to assert ourselves more directly and deeply
into the due diligence of our business partners.

Supply
Chain
Supply Chain
Management
Management
Respecting Human Rights and Diversity
and Creating an Energetic Workplace

Many of our operations at cement production and mining
sites are mechanized. However, some operations require
manual work at some height or under high temperatures,and ensuring safety for workers at our production sites is aprerequisite to our stable business performance. In an effort
to prevent employees of contractors working at those sites
from becoming involved in any accidents, we request thatthey go through safety training and submit a safety planand reflect our instructive feedback in advance.

⿪⿪E-Learning Programs
To ensure that all employees understand compliance acrossour supply chain and act in full compliance, we conduct
monthly tests as part of e-learning programs to provide
education on the Standard of Conduct Casebook and the
Antimonopoly Law Compliance Manual for all company
employees, including those on loan to group companies orothers. The monthly tests that began in fiscal 2018 always
contain one question concerning anti-bribery.

Quality, Technologies
and R&D

Safety of Our Business Partners at Production
Sites»»GRI 403-1, 3Trade Compliance Training»»GRI 102-16, 205-2

Creating a Healthy and
Safe Workplace

Relationships of trust with business partners andgovernments depend on the conduct of each employee, so
we encourage our employees to advance fair trade througha variety of means.

Information Disclosure⿪⿪Distributing the Standard of Conduct Casebook
Our Standard of Conduct Casebook, designed to provide
exemplary models of conduct for employees, includes asection about what constitutes fair trade. It is distributed toall employees of our major group companies.

Communication with
Communities

⿪⿪Distributing the Antimonopoly Law Compliance
ManualOur Antimonopoly Law Compliance Manual is distributed toall employees toward ensuring compliance.
The manual first presents an outline of the
Antimonopoly Law focusing on private monopoly,
unfair restraint of competition (cartels) and unfair
business practices, the three pillars of this law. It further
offers examples of illegal conduct in the form of “Don’t”
statements to help employees more thoroughly understandthe law. The manual is revised when laws and regulations
are amended.

Antimonopoly Law Compliance Manual

TAIHEIYO CEMENT CSR REPORT 201955

Collaborating with Society
Partnership with Society and Employees

Respecting Human Rights and Diversity and Creating an Energetic Workplace
We believe that respecting human rights and diversity is a fundamental principle for a sustainable society. Applying this, we havebeen introducing measures concerning the development of human resources, empowerment of women, workforce diversity,
improvement of the work-life balance and adoption of KENKOUKEIEI* consideration into corporate and personnel management.
We are dedicated to creating employee-friendly workplaces where each employee can develop to their full potential.

»»GRI 103-2, 3*KENKOUKEIEI (Management of Health on Company and Employee) is a trademark held by the Workshop for the Management of Health on Company and Employee.

Basic Policy Concerning Human Rights andLabor Practices»»GRI 102-16

Management

We formulated our Basic Policy Concerning Human
Rights and Labor Practices in April 2015 with theacknowledgement that respecting human rights anddiversity is a fundamental principle for a sustainable society
and taking into consideration the Universal Declaration of
Human Rights and the labor standards of the International
Labor Organization.

Basic Policy Concerning Human Rights
and Labor Practices

The Environment

1. Recognizing that respecting human rights is a foundational
management concern, we will strive to address human rights
issues.
2. We will respect diversity and will not tolerate discriminationor harassment in any form.
3. Applying accepted international principles and laws
and labor practices in each country, we will respect therights of all our workers, treat them to employment freeof discrimination and strive to ensure equal employment
opportunities.
4. We will strive for better working conditions and a workplaceenvironment that ensures the health and safety of ouremployees.
5. We will not tolerate child labor or forced labor under any
circumstances.

(1) A message from top executives calling on employees toeliminate harassment in the workplace;(2) T he distribution of a booklet against harassment to all employees;(3) The inclusion of rules governing harassment in the
Employment Regulations;(4) The conduct of a questionnaire on employee harassmentwith the results posted on the company intranet; and(5) The gathering of human rights slogans from employees
and their families, including partner companies, during
Human Rights Week.
We also assisted group companies in conducting
training courses and distributed a booklet to raiseawareness of human rights.
Summary of the Questionnaire Findings• About 20 percent of our employees have suffered fromharassment.
• Power harassment is the most frequently reported form ofharassment.
• Few victimized employees have used the Harassment Hotline,
indicating that it is inaccessible.
In-house Training Related to Human Rights Issues and Call for
Slogans (FY2018) Non-consolidated
In-house Training and Call for Slogans

Results

Human rights seminar for the top management of our affiliates
Human rights seminar for employees by position at the HQ(including 114 from our affiliates)
Human rights training at plants and branches
Human Rights Week slogans collected(from employees and their families)

Respect for Human Rights»»GRI 102-17, 412-2

Collaborating with Society

56

Under the Basic Policy Concerning Human Rights and Labor
Practices we are committed to respecting the human rightsof our employees and all those involved in our businessactivities. These strong commitments are reflected in ourStandard of Conduct (see pages 30 to 31), which governs
the actions of each employee and is clearly expressed instatements such as “We will respect human rights and will notdiscriminate on the basis of national origin, gender or otherfactors” and “We will maintain a harassment-free workplace.”
⿪⿪Educational Activities on Human Rights
We have been conducting a variety of educational activities
with the belief that education is the foundation for humanrights.
Our human rights seminars in fiscal 2018, including
those by position and training for the top managementof our affiliates, focused on preventing harassment. The
following actions also occurred during the fiscal year:

TAIHEIYO CEMENT CSR REPORT 2019125
participants
420
participants
662
participants
1,613 slogans

⿪⿪Operating the Human Rights Hotline
Members of the Harassment Counseling Committee andHuman Rights Committee assigned at all business sites
conduct activities to raise awareness of human rights toprevent harassment, and handle any related complaints tocreate a positive workplace environment.
In fiscal 2018 we received 22 reports via the hotline,
reviewed the details of each report based on requests fromthe complainants, and responded fairly.
Harassment Hotline
Internal

The Human Rights Committee and harassment counselors
have been allocated at all our business sites (56 in total).

External

Telephone and website consultations have been contracted to
the Japan Institute of Workers’ Evolution Harassment Hotline.

Number of Reports to the Harassment Hotline (FY2018)(Unit: report)

Sexualharassment

Powerharassment

Other

Total

Internal

5

6

1

12

External

0

6

4

10

(Unit: 1,000 yen)

FY2016FY2017FY201874

71

74

Please visit our website for more information on our training system.

▪ https://www.taiheiyo-cement.co.jp/english/
	CSR → CSR Report → Data (Japanese only)

Communication with
Communities

⿪⿪Human Resource Evaluation System
We have adopted a human resource evaluation system thatprioritizes development over compensation. The system
assists employees in deepening their understanding of
their evaluation results through feedback. It also strongly
emphasizes the exchange of opinions between evaluatorsand employees, who share their thoughts on issues suchas identifying areas for future development. We have been
implementing a management (HR evaluation) training
program since fiscal 2007 to enhance the evaluation,
development and management of skills of evaluators. Asof the end of fiscal 2018, 733 people had participated intraining under these programs.

Information Disclosure

⿪⿪Human Resource Development
We implement company-wide measures including grouptraining by position and the development of global humanresources. We also introduce measures aimed at developing
the individual potential of each employee as a basis forenergizing the organization. These efforts provide our
employees with opportunities for personalized learning
experiences that foster autonomy and independence,and ultimately raise their motivation to the next level. We
actively encourage and create environments in which
employees can freely make decisions about their careers
during their work and training.
In addition, we ask all employees to submit personal
reports once a year, including future career development
aspirations, worksite preferences and family considerations,to help us improve the work environment so they canfully demonstrate their abilities and to ensure stable
employment.

Education/Training-Related Expenses per Employee Non-consolidated

Creating a Healthy and
Safe Workplace

Our aim is to develop human resources that are highly regarded
both inside and outside the company.
1. In principle, human resources will be developed through onthe-job training supplemented by off-the-job training.
2. Human resources will be developed to succeed the roles of
their superiors, playing central roles in the future in each area
and at each level.
3. Human resources will be developed to take action inconstant consideration of group management.
4. Human resources will be developed to be competent by
global standards.
5. Human resources will be developed to protect theenvironment and to serve society by assuming active roles in
CSR initiatives.
6. Human resources will be encouraged and assisted todevelop their motivation and to adopt broader perspectives
through self-development.

Self-confident individuals who are able to contribute to thesustainable growth of the group with a firm commitment toachieving the group mission:
1. Individuals with innovative ideas, strong leadership and theability to take bold actions
2. Individuals who can be competent by global standards
3. Individuals who can contribute to group management

Respecting Human
HumanRights
RightsandandDiversity
Diversity
Respecting
Creatingan
anEnergetic
EnergeticWorkplace
Workplaceand Creating

Basic Policy Concerning
the Development of Human Resources

From the standpoint of human resource development we haveidentified the following desirable characteristics and traits forrevolutionizing the company and creating a dynamic Taiheiyo
Cement.

Supply Chain
Management

We see our employees as the most important management
resources for achieving the sustainable growth of our group.
We maintain a long-term human resource development
system in accordance with our Basic Human Resources
Development Policy and a fair evaluation system tosupport the performance of all our human resources. Thesesystems reflect diverse individual characteristics and values,
regardless of nationality or gender.

Characteristics of Ideal Employees

Quality, Technologies
and R&D

Human Resource Development and Evaluation»»GRI 404-2, 3

Respecting Diversity»»GRI 404-2, 405-1

⿪⿪Promoting Diversity and the Empowerment of
Women
Acknowledging that promoting diversity and empowering
women is the biggest and most immediate challenge forcreating an innovative labor force, we have engaged in awide range of efforts.
In July 2015 we established the Diversity Promotion
Office to review various measures and strengthen ourawareness-raising efforts. In addition to reviewing company
systems and establishing new ones, the office operates the
Kirakira Palette portal site, which provides employees withTAIHEIYO CEMENT CSR REPORT 201957

Collaborating with SocietyManagement
The Environment
Collaborating with Society

58

information on company programs and available fringe
benefits, basic knowledge on childcare and family care, andrelated services provided by local communities.
Also, we worked on raising awareness by conducting
training for all managers on promoting women’s active
participation and advancement in the workplace andplaying a DVD of a message from top management related
to the promotion of diversity for all employees.
We have been participating since fiscal 2017 in
the Science, Technology, Engineering and Mathematics
Challenge (Riko-challe) program led by the Gender Equality
Bureau of the Cabinet Office, to empower women in theworkplace. In August 2018 we organized a plant tour
for experiencing work and interacting with our female
engineers at the Central Research Laboratory.
In November we held a forum on diversity entitled“Career Development for Working Women” as a means
for supporting career development and retention. The
speakers, who were women in management positions atother companies, spoke about how they had built up theircareers. A video of the forum was distributed to all offices.
We also launched an employee work group to consider
the telework practices we should introduce. The group, thesecond of its kind, suggested several telework arrangements
to the company.
We are steadily working on the general business owneraction plans pursuant to the Act of Promotion of Women’sParticipation and Advancement in the Workplace. In
addition, we have been participating in Keidanren’s Action
Plan on Women’s Active Participation in the Workforce andannounced our voluntary action plans.
We will continue our sincere efforts to increase job
opportunities for women and create an environment that
fosters more female managers. We have been actively
recruiting female employees to increase the ratio of female
employees to over 10% by 2020. As a result of holding acareer seminar for female students the ratio of women whoare “G Course” employees accounted for approximately
20% of the new employees joining the company in April
2019. We also hired one female foreign
national and will continue to hire
outstanding employees with a focus
on individual capabilities, regardless ofnationality.

TAIHEIYO CEMENT CSR REPORT 2019

Kirakira Palette for supporting employees to continue working while caring for family members

Career seminar for female students

Please visit our website for more information on the general businessowner action plans pursuant to the Act of Promotion of Women’sParticipation and Advancement in the Workplace.

▪ https://www.taiheiyo-cement.co.jp/english/
	CSR → Collaborating with Society →Human Resources⿪⿪Promoting Employment Opportunities for Persons
with Disabilities
We have been making improvements to the work
environment, including the establishment of three special
purpose subsidiaries. Our employment ratio of persons
with disabilities has improved, standing at 2.34% as of June2018 with an annual average employment ratio of 2.39% forfiscal 2018, exceeding the statutory ratio (which was raisedin April 2018 from 2.00% to 2.20%) for 12 consecutive years.
Our employment ratio of June 2019 was 2.30%, which also
exceeded the statutory ratio.
We intend to continue doing all we can to increase
the number of employees with disabilities, including
visiting schools, inviting school staff to our workplaces,
collaborating with support organizations for persons withdisabilities and participating in recruitment events orseminars for persons with disabilities.

Employment ratio (%)
2.26
2.5
2.0
1.5
1.0

0

Taiheiyo Cement

2.37

2.39

1.92

1.97

Private industry average
2.34
2.30

2.05

1.49
0.82
2000

2015

2016

2017

2018

2019 (Year)*Statutory employment rates were 1.8% until March 31, 2013, 2.0% until March 31, 2018, and 2.2%
since April 1, 2018.

2018
11

Rehired by other companies(including those that are not group companies)

25

Employee-Friendly Workplaces»»GRI 401-3, 403-6

⿪⿪Flexible Work Arrangements
We are working to provide flexible work arrangements byadopting various employment systems that will enable our
employees to enhance work-life balance.
▶ Support for Childcare and Caregivers

We established a long-term leave system in 2017 for
employees who are given no choice but to give up
their careers due to unavoidable circumstances such as
relocating for their spouse’s job and childcare. We also
operate a reemployment system for employees who leave
their jobs due to child or family care. In addition to ourchildcare/family-care leave, we have instituted measuresthat support employees who do not want to take leave,such as a flextime system, shortened work hours andstarting work early or finishing late.

Communication with
Communities

Rehired by the company

Objective 1 Disseminate information about the systems forbalancing work and family based on the Act onChildcare Leave, Caregiver Leave and Other Measures
for the Welfare of Workers Caring for Children andOther Family Members
MeasuresRun a portal site in support of the continuation of
employment which introduces internal systems
systematically
Objective 2 Implement an initiative to realize flexible work
arrangements
MeasuresImplement trial telework arrangements
Objective 3 Implement measures to promote the use of annual
paid leave
MeasuresImprove the rate of annual paid leave taken by setting up
days when employees are encouraged to take annual paid
leave, systematically providing annual paid leave, etc.
Objective 4 Implement a social contribution program concerning
the development of the next generation
MeasuresConduct internships, etc., that provide young people with
opportunities to gain workplace experience

Information Disclosure(Unit: person)

Duration of plan: April 1, 2019 to March 31, 2021 (2 years)

Creating a Healthy and
Safe Workplace

Number of Employees Rehired after Reaching Retirement Age
Non-consolidated

General Business Owner Action Plans

Respecting Human
HumanRights
RightsandandDiversity
Diversity
Respecting
Creatingan
anEnergetic
EnergeticWorkplace
Workplaceand Creating

⿪⿪System to Rehire Employees Who Have Reached
Retirement Age
We rehire employees who want to continue working after
they have reached the traditional retirement age of 60 until
they are eligible for their pension. After they start receiving apension we rehire them in accordance with specific rehiring
standards under a labor-management agreement until theyreach 65. We will continue to make sure there is a workplace
for individuals who seek re-employment by expanding
opportunities in group companies.

Development of the Next Generation
Since fiscal 2005 we have been formulating generalbusiness owner action plans based on the Act for Measures
to Support the Development of the Next Generation.
During the plan’s fourth term, April 2015 to March 2017,
we achieved the objectives set in the general businessowner action plan. In recognition of our efforts weobtained “Kurumin” certificationin accordance with the newcertification criteria that applies
starting in April 2017. In fiscal 2019
we have started implementing
various efforts in accordance with
our sixth-term general businessowner action plan.

Supply Chain
Management

0.5

1.88

Statutory ratio*

Quality, Technologies
and R&D▶R esponding to the Act for Measures to Support theTrends in the Employment Ratio for Persons with Disabilities(as of June 1 of Each Year) Non-consolidated

Major Work Systems that Allow Flexible Work Arrangements• Flextime system • Discretionary labor system • Half-day paid vacation• “Special Reserved” leave (use of accumulated paid leave that has expired)• Refresh System• Human resource management system per course (region-limited
employment) and others
Status of Leaves Taken and Work Hours Non-consolidated
Items
Number of employees who took childcare
leave (male employees in parentheses)2016
14 (5)

2017
21 (10)2018
22 (8)

Childcare leave rate for female employees

100%

100%

100%

Rate of annual paid leave taken

69.8%

66.0%

67.6%

16.1 hours

16.4 hours

16.7 hours

Overtime work (monthly average)

Note: The data is collected retroactively from the past fiscal years to ensure uniformity across all fiscal years.

TAIHEIYO CEMENT CSR REPORT 201959

Collaborating with Society⿪⿪Support for Volunteer Activities
In June 2012 we formulated a volunteer activity leave
scheme and have been supporting volunteer activities
undertaken by employees. A total of 43 employees havetaken this leave up to fiscal 2018.

Results of the Employee Awareness Survey
Job satisfaction

FY2017FY2015FY2013

4.0

General feelings

Mental andphysical disorder

3.5

Activity levelin workplace

Compliance
3.0Management⿪⿪Efforts to Promote Employees Health
In March 2018 the company formulated the “Taiheiyo
Cement Group Commitment to the Health” as its policy
for employee health. Under the commitment we haveundertaken initiatives based on the “KENKOUKEIEI” concept
to maintain and improve the mental and physical health of
every employee since fiscal 2018.

Customer orientation/
work-life balance

Reliability ofsupervisors

Note: In the survey for fiscal 2017
we deleted “Customer
orientation” from thequestion items and added“work-life balance.”

Reliability of
directors

Human resource system

Employee Status
Taiheiyo Cement Group Commitment to Health
The Taiheiyo Cement Group regards its employees as key
management resources (“human assets”) and intends to be a
corporate group in which every employee can enthusiasticallywork while maintaining their mental and physical health.

»»GRI 102-7, 8
Employee Status (as of the End of FY2018)
Male
Nonconsolidated

The Environment▶ Mental Healthcare

We provide mental health checkups for all our employees(consultation rate: 93.7% in fiscal 2018). We also conduct
workshops focused on preventing mental health problems.
In addition, we offer free counseling services on mental
health to employees and their families under a contract
with the company’s healthcare trust for this purpose.

Consolidated

Female
1,580

180

1,760

Temporaryemployees

55

7

62

Permanent
employees

11,461

1,622

13,083

Temporaryemployees

739

259

998

Note: The number of temporary employees refers to the annual average number of temporary
employees.

Average Length of Employment for Employees (Years) Non-consolidated(Unit: year)

Male
FemaleFY201720.6
15.2

FY2018
20.5
14.5

20.4
13.1

Note: A declining trend in the average years of employment is primarily due to an increase in thenumber of new graduate employees rather than an increase in turnover rate.

Number of Employees in Management Positions Non-consolidated(Unit: person)

FY2016
Male
FemaleFY2017764
2FY2018
767
2

767
3

Collaborating with Society

Number of New Graduate Employees Non-consolidated(Unit: person)

FY2017
Male
FemaleFY2018
70
24

68
24

Number of Newly Hired Mid-Career Employees Non-consolidated(Unit: person)

FY2017
Male
Female60

Total

Permanent
employees

FY2016

⿪⿪Employee Awareness Survey
To increase employee job satisfaction we have conducted
an employee survey every two years since fiscal 2013. The
questionnaire used for the survey includes a comment section
so employees can anonymously share any information on
activities that may violate human rights and compliancerequirements. In fiscal 2018 we implemented measures toovercome problems detected in the fiscal 2017 survey.

(Unit: person)

FY2018TAIHEIYO CEMENT CSR REPORT 2019

FY20181
0

67»»GRI 102-41, 403-4

⿪⿪Direct Communication between Executive
Officers and Employees
As part of our efforts to enhance communication
across the company we have been holding talksessions with the executive officers, providing both
executive officers and employees with a valuable
opportunity to interact directly. In fiscal 2018 thesesessions were held at all our 18 business sites andattended by 1,228 people.

Respecting Human
HumanRights
RightsandandDiversity
Diversity
Respecting
Creatingan
anEnergetic
EnergeticWorkplace
Workplaceand Creating
Creating a Healthy and
Safe Workplace

Activities of Specialized Committees
Committee

Activities

Committee on
employment andemployment
formats

Examine the operation of personnel/labor management
systems against the background of diversifying employment
and employment status

Committee on
work hours

Examine problems concerning work hours and work hour
management, and the response to laws related to work hours

Committee on
the promotion ofdiversity

Examine the measures necessary to promote diversity in theworkplace

Communication with
Communities

Review the entire personnel system and the treatment of
employees

Information Disclosure

Committee on
personnel andtreatment of
employees

Supply Chain
Management

All employees who have entered into a labor agreementwith the company are members of a union. We
occasionally hold labor-management consultation andbriefing sessions that provide opportunities for laborand management to exchange opinions and negotiate
issues on the basis of mutual trust and understanding. In
fiscal 2018, 35 of these sessions were held encompassing
labor contract negotiations as well as explanations ofcorporate performance, revisions to wages and bonuses
and amended systems and rules. Through the sessions
we intend to improve communication between labor andmanagement. In addition, four specialized committees set
up as advisory bodies for labor-management consultation
provide opportunities for active negotiation andexchanging views between labor and management.

Quality, Technologies
and R&D

Sound Labor-Management Relations

TAIHEIYO CEMENT CSR REPORT 201961Collaborating with Society
Partnership with Employees

Creating a Healthy and Safe Workplace
We understand that the health and safety of our employees is part of the foundation of our company and continuously
advance organized programs for health, safety and security to eliminate work-related accidents and create comfortableworking environments, including in our supply chain.

»»GRI 103-2, 3

Taiheiyo Cement Health & Safety Policy
Our Occupational Health & Safety Policy is shown below.
Under the policy our headquarters and business sites create
and implement yearly management policies on health andsafety.
Management

Taiheiyo Cement Health & Safety Policy
We are aware that the health and safety of our employees ispart of the foundation of our company, and we effectively
implement the following policy by devoting sufficientmanagement resources to prevent work-related accidents anddiseases in accordance with the Industrial Safety and Health Act
and the Mine Safety Act.

Basic Policy

The Environment
Collaborating with Society62

1. Promote health and safety activities through cooperation
between management and labor, with the aim of eliminating
work-related accidents.
2. Ensure the health and safety of our employees and thoseof our affiliates by complying with health and safety-related
laws and regulations, and in accordance with health andsafety management regulations created by us, and healthand safety regulations created by our business sites.
3. Strive to improve the level of safety and health by actively
promoting the implementation and operation of an
Occupational Safety and Health Management System, andby continually ensuring the true safety of our equipment,
providing education and training, and raising awareness.
4. Continually improve the working environment and work
methods through the company-wide and business site
Health & Safety Committees, by applying technologicalprogress and utilizing new knowledge and information
about health and safety.
5. Ensure health and safety throughout the Taiheiyo Cement
Group by advancing programs to eliminate work-related
accidents under the leadership of the company-wide,business site, group company and affiliate Health & Safety
Committees.

Occupational Health & Safety System»»GRI 403-1, 2, 3

Under the Taiheiyo Cement Health & Safety Policy andhealth and safety management regulations, we provide
for the basic aspects of the group’s health and safety
management and promote health and safety activities. This
is to create comfortable working environments while also
ensuring the health and safety of our employees and those

TAIHEIYO CEMENT CSR REPORT 2019of our contractors at the group’s business sites and otherlocations.
We organize a Health & Safety Committee consistingof the representative from both management and labor ateach business site, including plants, quarries and branches,and promote health and safety activities by business sites.
The Companywide Occupational Health & Safety
Committee at our headquarters (chaired by the officer
in charge of safety) oversees promotion activities at all
business sites. The committee also collects safety related
data from our group companies as well as the company
itself and provides guidance.
We manage health and safety at all cement plants andquarries, using the OSHMS*.
*Occupational Safety and Health Management System: A framework that allows organizations
to reduce potential dangers at workplaces and promote comfortable worksites by voluntarily
practicing continuous, uninterrupted health and safety management as prescribed in theguidelines of the Ministry of Health, Labor and Welfare in 1999.

Occupational Health & Safety System
Companywide Health & Safety Committee (chaired by the officer in charge of safety)
Headquarters departments
Headquarters/ Central ResearchLaboratory
Tokyo Branch

PlantsBranches

Occupational Occupational Occupational Occupational
Health & Safety Health & Safety Health & Safety Health & Safety
Committee
Committee
Committee
Committee

Quarries
SafetyCommittee

Group companies
and affiliates
Occupational
Health & Safety
Committee
Safety Committee

⿪⿪Safety Operation Officer Certification System
Since fiscal 2007 we have been using the Safety Operation
Officer System, which emphasizes the importance ofimproving leadership capability and therefore only certifies
those who complete qualification seminars held at plants
as leaders (safety operation officers) of working groups. To
further improve the capability of these leaders we imposeda stricter requirement for the qualification seminars startingin fiscal 2015, restricting participants to those who havecompleted the foreman training course stipulated in the
Industrial Safety and Health Act.
⿪⿪Health and Safety Training Program
To ensure employee safety at work we conduct healthand safety training in accordance with the related
implementation procedures. Training courses focus on
newly hired employees, including those with professional
experience, specialized courses, newly appointed managers,
strengthening capabilities and new partner companies.

■ Leave of absence

95

2015

2016

103

87

60
30
0

2014

2017

2018

(FY)

The Companywide Occupational Health & Safety
Committee set the objectives for fiscal 2018, aiming toachieve zero fatalities, limit lost-time injuries to 30 orless and work-related accidents to 80 or less, while also
maintaining the absence rate at between 0.30% and0.39%. Accordingly, we conducted health and safety
promotion activities with a focus on: (1) basic safety
activities for attaining the CSR Objectives for 2025 by (a)establishing the safety culture of the Taiheiyo Cement
Group and (b) promoting ongoing safety activities at
cement plants and by the industry; (2) concrete activities
for reducing accidents; (3) the speedy dissemination of
information following an accident; (4) the horizontal rollout of countermeasures taken by the accident site; (5)prevention of occurrence or recurrence of serious workrelated accidents at specific business sites and affiliates;

0.439

0.448

FY20170.458

FY20180.647

⿪⿪Hands-on Safety Training▶Initiatives in JapanTo enhance each employee’s sense of safety we havepromoted hands-on safety training in which employees
experience simulated dangers that could happen in daily
operations. We decided in fiscal 2011 to provide on-site,
hands-on safety training by instructors from outside thecompany at our plants on a rotating basis. Many of theemployees working in the same plant participate together
in the training so that they develop the same level of safety
awareness. Training in fiscal 2018 was conducted at theKamiiso plant on September 4 and 5 with 151 employees
from the plant and partner companies, who enthusiasticallyparticipated in and experienced simulated dangers related
to heights, rotating equipment, electricity and objects
hanging from a crane. In fiscal 2018 we installed a safety
experience facility at each plant and established a systemfor providing speedy training for inexperienced workers
including younger employees.
We also installed virtual
reality equipment at the
Saitama plant to provide
simulated experiences ofdangers and have workers
go through actions leading
VR equipment at the Saitama plant
up to an accident.

Communication with
Communities

Status of Our Health and Safety Promotion
Activities»»GRI 403-2, 3, 4, 5, 6, 7, 10

0.547

FY2016

Information Disclosure

101

90

■ No leave of absence

Absence
Rate(Unit: %)FY2015Creating
Healthyand
andCreating aaHealthy
Safe
Workplace
Safe Workplace■ DeathFY2014

Respecting Human Rights and Diversity
and Creating an Energetic Workplace(Number of accidents)
120
98

Absence Rate Non-consolidated

Supply Chain
Management

Number of Accidents Registered in the Work-related Accident
Databaseand (6) checks on countermeasures taken in response to an
accident.
As a result we attained our objective of zero fatalities
but fell short of meeting the other objectives, with 35 losttime injuries, 87 work-related accidents, and an absence
ratio of 0.647%. While we have been seeking to prevent
serious accidents as a key activity, there was a serious
accident in fiscal 2018 involving a worker falling.

Quality, Technologies
and R&D

⿪⿪Report and Database of Work-related Accidents
Regardless of its relative severity, any work-related accident
is reported to the Companywide Occupational Health &Safety Committee immediately after it occurs.
We promptly post the details of any accident on
the group bulletin board in an effort toward avoiding
recurrence.
We have maintained a work-related accident databasesince fiscal 2008 to help avoid the recurrence of accidents. It
contains information about accidents involving employees of
the company and group companies as well as all employeesof partner companies including temporary workers. It is also
used to store information on identified accident causes andresponse reports, including measures taken in response tounsafe actions and equipment with respect to the “4 Ms”(men, machines, methods and management).

▶Opening of an Experience-based Safety Training Centerin China
On September 10, 2018, Qinhuangdao Asano Cement Co.
Ltd. opened the Experience-based Safety Training Center.
Currently, 15 sets of sensory equipment and VR-based
simulators are permanently installed at the facility. Training
is focused on developing the ability to detect dangers and

TAIHEIYO CEMENT CSR REPORT 201963Collaborating with SocietyManagement

is provided to all employees and partner companies.
This type of facility is still rare in China and so it wascovered extensively by the local media, including television(broadcast twice by Qinhuangdao TV), web-based news
services (Xinhua News Agency, Guangming Dialy, andPeople’s Daily) and a newspaper (Hebei Daily).
The facility is being introduced to construction
companies and Japanesecompanies in Qinhuangdao
City, and every day thecenter aims to spread safety
awareness in the region.
In-house training at the Experience-based
Safety Training Center

The Environment

⿪⿪Workshop for KYT Section Leaders
We held workshops for KYT (risk prediction training) in
October at the headquarters to improve safety skills. Safety
managers from China, the Philippines, Vietnam and Papua
New Guinea participated in
the workshops to deepen
their understanding of risk
prediction through seminars
and drills.
Workshop for KYT section leaders(headquarters)

⿪⿪Special Seminar on the Use of Full-body Harnesses
when Working at Heights
Following regulatory revisions, since February 1, 2019
workers required to use full-body safety harnesses must
attend special seminars.
The seminars are held at
each plant and businesssite, and we seek to ensure
safe operations by having
workers practice what theySpecial seminar on using full-body harnesses
while working at heights at the Ofunato plant
have learned.

Collaborating with Society⿪⿪Equipment Improvements
Following a fatal accident in fiscal 2014 involving a worker
falling from a bulk cement truck we made a thorough effort
to clearly mark safe working perimeters for heavy machineryand improve facilities by
setting up no-entry areas at
our cement plants. However,a similar accident resulting ina fatality occurred at a groupcompany in fiscal 2017,
Construction work for determining safety
perimeters for heavy machinery at the
prompting us to conduct
Fujiwara plant

64

TAIHEIYO CEMENT CSR REPORT 2019a survey on the status of preventing heavy machinery
accidents at all 280 sites, including group companies, andwe have made improvements as needed.
⿪⿪Support for the Safety Activities of Group
Companies
The Companywide Occupational Health & Safety
Committee supports safety activities at group companies.
In fiscal 2018 we conducted a safety survey covering thegroup’s ten business sites in Japan and three overseas sites.
We seek to raise safety
standards by visiting thesites in order to conducthearings on safety activities,
facility inspections and direct
information sharing.
Facility inspection of a group company

⿪⿪Health Management, Maintenance andImprovement
We conduct annual health examinations for all employees
in accordance with the Industrial Safety and Health Act.
As in previous years the attendance rate in fiscal 2018
was 100%. In the event that any doubt is raised over adiagnosis, we help the employee to undergo an extensive
examination and provide lifestyle improvement training.
Moreover, we began pursuing health managementfrom fiscal 2018 and as part of the initiative we holdworkshops for mental health and nutrition seminars at eachbusiness site, provide information through an in-housenewsletter and distribute a pamphlet for raising healthawareness.
⿪⿪Health Issues Caused by Asbestos
The status of health issues related to asbestos at Taiheiyo
Cement is that of the former employees with certified
work-related injuries/illnesses, 50 have died or are currently
undergoing treatment (as of May 31, 2019).
Please visit our website for more information.

▪ http://www.taiheiyo-cement.co.jp/english/
	CSR → CSR Report → Data (Japanese only)Partnership with Investors

Information Disclosure
We exert our strongest efforts to offer information through various media to promote understanding of our activities while
incorporating feedback and other information we receive into our daily IR activities and management.

We disclose corporate information fairly, accurately and at
the appropriate time in accordance with the Information
Disclosure Policy we created in May 2007. In fiscal 2018
we published 26 press releases. These and previous press
releases are available on our website.

⿪⿪Website
We post press releases as well as information on our products
and services, recruitment and R&D division on our website.
⿪⿪Annual Reports
This IR tool, published annually for Japanese andinternational investors, publicly states our financial standing
along with special topics for the year.

Please visit our website for more information on our Information
Disclosure Policy.

IR Activities

EventsAttendees
2

152

174

249

Tours of our facilities

3

10

IR conferences organized by securities
companies

2

9

Individual meetings

Communication with
Communities

Activities
Results briefings

⿪⿪In-house Newsletter “Taiheiyo”
We publish six issues of our newsletter each year tocommunicate our management policy, group events,
employee comments and other information. For the
September 2015 issue, we introduced the section “SHINE UP
Communication” to present our initiatives as well as cases
for creating workplaces where each employee can work
more comfortably.
The newsletter is distributed to our local communities
and the mass media as well as in-house.

Information
Disclosure
Information Disclosure

IR Activities (FY2018) Non-consolidated

⿪⿪R&D Report
We publish a summary of our R&D outcomes twice each year.
Extracts from back issues are also available on our website.

Creating
Healthyand
andCreating aaHealthy
Safe
Workplace
Safe Workplace

We are committed to disclosing information about
our group in an appropriate and timely manner to ourshareholders and investors. We hold results briefings
with institutional investors twice each year to enable thepresident to communicate our management policies
directly. In fiscal 2018 we again held individual meetingsand participated in IR conferences organized by a securities
company. We also provide tours of our production sites.

⿪⿪Technical Journal “CEM’S”
We publish “CEM’S” (a technical journal for users of our
products) quarterly. The journal provides commentaries ontechnological trends in the field of cement and concrete,construction materials and the environment. It also
introduces timely R&D activities, the latest construction
examples and other information.

Respecting Human Rights and Diversity
and Creating an Energetic Workplace▪ https://www.taiheiyo-cement.co.jp/english/
	CSR → Collaborating with Society →Information Disclosure

Supply Chain
Management

Information Disclosure Tools

Quality, Technologies
and R&D

Information Disclosure Policy

Tours of our facilities for analysts

TAIHEIYO CEMENT CSR REPORT 201965Collaborating with Society
Partnership with Society

Communication with Communities
With the goal of achieving sustainable growth in harmony with communities, all of our business sites in Japan and overseas
participate in various activities that address local needs while applying the characteristic strengths of the Taiheiyo Cement
Group.

»»GRI 103-2, 3, 203-1, 413-1
Major Activities (FY2018)
Activity

Sessions(rounds)

Community briefing

188973 • Briefing on waste treatment • Briefing on quarry development work62

151 • Briefing to members of a neighboring community on environmental issues

Theme

Protection of thelocal environment

Management

Promotion of
local culture andcommunication

Regional
development

Education anddevelopment of
human resources

The Environment

Support for areas
affected by disasterCommunity briefing on
environmental issues
Environmental monitoring
systemAttendees(persons)

96

82 • Meetings, briefings and social gatherings of environmental monitors• Cleaning of roads and rivers surrounding business sites• Participating in a community cleanup activity• Participation in forest conservation activities such as planting seedlings and thinning• Support for preserving local communities’ farmlands
330• Concluding a partnership agreement with the forest union• Protecting rare regional plants and animals

Community cleanup activities

400

Community forest conservationand nature protection activities

115

Plant and quarry tours

368

Opening facilities to the public

1,070

10,393 • P roviding schools and local organizations with access to our grounds, gymnasiums and meeting rooms

288

42,708Sponsoring, participating in andcooperating in local events
Provision of materials and rentalof heavy machinery
Support for community medical
services
Support for the development oflocal industries

3,298

6,686 • Plant and quarry tours for children, students, residents and government entities in a community• Sponsorship of a boys baseball tournament• Participating and cooperating in a sports tournament, community festivals and events• Providing and lending materials and heavy machinery to improve public spaces as-well as roads
570
and waterways in local communities• Provision of free medical checkups and medication
607• Agreement on use of the company’s premises as a medical heliport• Participation and cooperation in activities to support the development of local industries
130• Providing industrial water for agricultural use• Conclusion of a regional disaster assistance agreement220• Regional joint disaster prevention drills, regional fire-fighting activities• Support for economically distressed areas502• Developing community leaders

19
18
33

Disaster prevention activities

28

Others20

Scholarships

5

Developing engineers

28

Internships and career
experience opportunities

40

Others13

Disaster area support

3

517 • Scholarships for students who need financial assistance living near our business sites• Opening free concrete technology schools to train concrete engineers• Implementation of technical guidance programs• Acceptance of domestic and foreign interns
10,373 • Technical guidance for university students• Career experience, on-site training at quarries• Provision of materials for building schools in local communities
1,105• Donations of funds to a municipal library• Participation in support groups• Provision of company-managed housing and a gymnasium as an evacuation center−(agreement with local authorities)• Provision of a tentative storage yard for disaster waste
1,631

Protection of the Local Environment

Collaborating with Society

66

Examples⿪⿪Communication on the Environment
We consider improving transparency through timely
information disclosure and communication as one of
our key responsibilities to local communities. We holdbriefings for members of these communities when we
start new business operations or relocate a quarry zone.
We ask members of the local communities who residenear our plants to act as environmental monitors toreport information about the environment. This enables
us to quickly ascertain and act on information about theenvironment near our plants. Moreover, we offer tours ofour business sites, centered on our plants.
⿪⿪Participating in the Coastline Cleanup Event(Kamiiso Plant)
Hokuto City, where the Kamiiso plant is located, faces the
Tsugaru Strait. The coastline is about 20 kilometers long.
The twice-yearly Coastline Cleanup Event is organized by
the city government and is marking its 39th anniversary

TAIHEIYO CEMENT CSR REPORT 2019

this year. Local residents
engage in cleanup
activities in 17 districts,
which includes collecting
floating debris. Many
plant employees and their
Participating in a beach clean-up in front of
the plant
families get involved toclean up the beach in front of the district where the plant islocated to help protect the community’s environment.
⿪⿪Cooperation in the Farmland Conservation Activities(Fujiwara Plant)
The Fujiwara plant is in a mountainous agricultural area
where the steep ridges between the fields make it difficult
for farmers to cut grass and weeds. Since fiscal 2011 it has
provided communities with
Lippia canescens seedlings,
which are planted on theridges as part of a farmland
conservation initiative. In
fiscal 2018 it provided 20 ofProviding Lippia canescens seedlings

Information Disclosure
Communication
with
Communication with
Communities
Communities

Promotion of Local Culture and Communication

⿪⿪Participating in the Tsukumi Yamazakura Festival
Ekiden, a Road Relay (Oita Taiheiyo Mining
Corporation)
Employees at Oita Taiheiyo Mining Corporation participate
in the Tsukumi Yamazakura Festival Ekiden, a Road Relay
held every March. Participants across a range of generations,from elementary school children to adults in their sixties,
run a 2.2-kilometer course around the Aoe Dam, famous
for its cherry blossoms. Residents cheer every runner who
enthusiastically races under falling cherry petals, creating a
sense of unity. This year thecompany had three teams
participate, more thanany other organization,
which deepened the senseof fellowship with local
Employees in an ekiden
residents.

Creating a Healthy and
Safe Workplace

Greening activity in China

Renovated tennis court

Respecting Human Rights and Diversity
and Creating an Energetic Workplace

⿪⿪Greening Quarries(Jiangnan-Onoda Cement Co., Ltd., China)
The company quarry is improving the environment sothat it can acquire the Green Quarry (environmentallyfriendly quarry) Certification. After quarry operations arecompleted the slopes are restored to their original condition
and greened. The company has also paved most of themountain roads and is working to improve the environmentof the entire quarry through initiatives such as tree planting
by volunteer employees
on holidays. Visitors havepraised those efforts,
expressing surprise thatthe quarry has become as
beautiful as a park.

⿪⿪O pening Sports Facilities for Community Use (Oita Plant)
The Oita plant opens its sport facilities for use by local
residents. The recently renovated tennis court is popular for
its convenience, with the number of users increasing 30%.
The adjacent gateball court has also been upgraded for theenjoyment of local gateball teams and other residents twicea week. Additionally the plant makes available its
gymnasium, baseballdiamond and employee
amenity hall for free.
Approximately 9,000
residents take advantage ofthe sports facilities every year.

Supply Chain
Management

⿪⿪Conservation of Rare Plant Species(Chichibu Taiheiyo Cement Corporation)
Native plants that only grow in soil containing limestone
are found on Mt. Buko in Saitama Prefecture. Since 1972
the Miwa Quarry has engaged in conservation activities forrare plants that might be affected by quarry operations. In
addition to the company’s conservation efforts the Central
Research Laboratory works to protect and grow endangered
plants such as Chichibu primula tosaensis, purple gromwell,and Miyama lilium maculatum, leveraging biotechnology
and other methods. In addition, a joint industry/academic
study was conducted on
Chichibu primula tosaensis.
Those three plants are
exhibited at the Mt. Bukoh
Museum in the community
every year during their
Helping to protect and cultivate rare plants
flowering period.

plants, with 200 participating every year. The plant gives
tours as well, during which participants can enjoy apanoramic view of the grounds and neighborhood from an
80-meter-high suspension preheater and ride a bulk truck, sothey become more familiar
with the facilities. The
plant will continue hosting
tours as key opportunities
for strengthening its
relationship with the local
Interacting with local residents
community.

Quality, Technologies
and R&D

the city’s districts with seedlings. Planting Lippia canescens
reduces weed growth, which not only eliminates someneed for weeding but also helps to make the scenery more
attractive.

⿪⿪Hosting Plant Tour Day (Kumagaya Plant)
Every year the Kumagaya plant hosts Plant Tour Day which
offers residents of three neighboring districts hands-on
experiences to deepen their understanding of cement

TAIHEIYO CEMENT CSR REPORT 201967Collaborating with SocietyManagement

⿪⿪Sponsoring the September 11 Memorial Project(CalPortland Company, U.S.)
A memorial dedicated to the heroes that saved lives at theWorld Trade Center Plaza on September 11 was created byEagle Scout in front of the Fire Authority headquarters inArroyo Grande, California.
CalPortland donated ready mixed concrete for the
distinctive pentagonal monument set into the hillside.
Its 412 tiles represent the number of firefighters, policeand EMT personnel who
lost their lives and two
porcelain rectangles in the
middle of the pentagon
symbolize the Twin Towers.
Concrete donated for the monument

Regional Development

The Environment

⿪⿪Providing Crushed Stone to Inabe City Plum Tree
Park (Fujiwara Plant)
Inabe City, home to the Fujiwara plant, has sponsored theTour of Japan, a major international cycling race, every
year since 2015. The plant co-sponsors the event as one
way to contribute to local communities. In 2018 the plant
not only participated in volunteer traffic control but also
provided crushed stone for
expansion of the parking
lot of Inabe City Plum Tree
Park, a venue for the Tourof Japan Inabe Stage, toimprove access.
Expanded parking lot

Collaborating with Society

⿪⿪Participating in the National Traffic Safety Campaign(Buko Mining Co., Ltd.)
Buko Mining Co., Ltd. established a joint committee of four
companies including Taiheiyo Cement, all of which develop
the Buko Quarry, and has actively participated in local traffic
safety activities. The company helps to ensure traffic safety
through regular traffic patrols of the neighboring area andby encouraging safe driving of large quarry-related vehicles.
Moreover, it strives to raiseawareness of traffic safety
among local residents
through a street campaign
organized by the town hallduring the National Traffic
Contributing to traffic safety in the community
Safety Campaign.

⿪⿪Donating Money to Medical Support Sponsored by
the Qinhuandao City Federation of Labor Unions(Qinhuandao Asano Cement Co., Ltd., China)
Since 2014 Qinhuandao Asano Cement has donated funds
to a medical support scheme operated by the Qinhuandao
City Federation of Labor Unions. Under the scheme
employees of participating companies receive partial
compensation when their medical expenses exceed 2,000
yuan. In fiscal 2018 the company donated 20,250 yuan,
which is at a rate of 50 yuan per employee.
⿪⿪Offering Free Medical Checkups(Taiheiyo Cement Philippines, Inc., Philippines)
The company provides a free medical checkup program for
local residents in 13 districts around the plant and quarry.
In fiscal 2018 the company performed medical checkups in
5 districts, while doctors and nurses offered consultations
to 2,900 residents. Furthermore, the company distributed
medication and reading glasses and also covered dental
treatment. Since the launch of the program in 2006, a totalof 25,000 residents have undergone checkups. Given thehigh number of people
who cannot afford medicalcare in the Philippines, local
residents greatly appreciate
the program as does thegovernment.
Medical checkup for a local resident

Education and Development of Human
Resources
⿪⿪Providing Technical Guidance on Ready-mixed
Concrete to University Students(Tohoku Branch, Tohoku Taiheiyo Namakon Co., Ltd.,
Kokusai Kigyo Co., Ltd.)
Every May we provide technical guidance on ready-mixed
concrete to sophomore students of the Department ofArchitecture at the request of Nihon University, College ofEngineering in Koriyama City, Fukushima Prefecture. In 2018a total of 210 students took part in the two-day program.
Through the course students learn how ready-mixed
concrete is used at actual worksites and gain practicalexperience of testing
fresh concrete, such as the
slump test, air-entrainment
test and chloride content
testing, and the preparationof test specimens. This is
Employees providing technical guidance

68

TAIHEIYO CEMENT CSR REPORT 2019⿪⿪Supporting an Area Stricken by an Earthquake(PNG Taiheiyo Cement Ltd., Papua New Guinea)
A large magnitude-7.5 earthquake struck the Highlands
Region of Papua New Guinea in February 2018, affecting
544,000 people in 5 provinces, with 270,000 requiring lifesaving support. Fourteen percent of the total population
was forced to evacuate because their homes had collapsed.
Just a half-day drive from Lae City, where the company islocated, the affected area
is a key region for cement
sales. In the hope of
facilitating a rapid recovery
we donated cement
throughout the Catholic
Donating cement in the hope of a rapid
Parish of Mendi City.
recoveryTAIHEIYO CEMENT CSR REPORT 2019

Communication
with
Communication with
Communities
Communities

Collected disaster waste

Information Disclosure⿪⿪Developing Concrete Engineers (Nghi Son Cement
Corporation, Vietnam)
In Vietnam the need for more competent engineers has
become an urgent public concern in the wake of rapid
economic growth. Nghi Son Cement has opened a freeconcrete technology school to train Vietnamese concrete
engineers, with 84 new graduates in fiscal 2018 and 1,463

⿪⿪Free Storage Yard for Disaster Waste from WestJapan Flood (Chugoku Branch)Heavy rain fell on western Japan in July 2018, causingmajor damage across a large region. More than 2,500
houses were affected by flooding from rivers in Mihara City,
Hiroshima Prefecture, where Sanyo White Cement Co., Ltd.
was based. The Chugoku Branch supported the Mihara
City government in recovery efforts by providing its former
premises as a temporary storage yard for disaster waste
over two months at no charge. Three days after the support
was offered we began accepting waste equivalent to thecargo of 50 light trucks. The
branch’s cooperation withthe community in treating
disaster waste marked thefirst step in the recovery
operations.

Creating a Healthy and
Safe Workplacefor over 20 years

Supporting Areas Affected by Disaster

Respecting Human Rights and Diversity
and Creating an Energetic Workplace

⿪⿪Hosting the Career Experience Project (Saitama Plant)
The Saitama plant has endorsed a career experience projectfor first-year students at local junior high schools. Launched
20 years ago, it is intended to help students develop
professional aspirations and positive work attitudes byexperiencing familiar jobs, and the plant has participatedin the project since its inception. In fiscal 2018 the plantwelcomed five students fromtwo schools to get a feel for all its
departments including production,
quality control, machinery,electricity, accounting and generalaffairs. In fiscal 2019 some students
who had participated in the
project six years previously became
an employee of the company.
Hosting a career experience projectStudents at the graduation ceremony

Supply Chain
Management

⿪⿪Holding an On-site Class at a High School(Ofunato Plant)
Plant employees participated as lecturers in an on-site classto help local young people find jobs in the community.
The Association of Employment Development wascommissioned by the Iwate prefectural government toprovide information on local industries and companies
in partnership with schools. Given the anticipated labor
shortage, the project, which started in fiscal 2018, targets
senior high school students and supports the recruitment
efforts of local companies. An operations department
manager and a young second-year employee gave alecture on management
philosophy, details of
the work, organizational
structure, working
environment, and senseof fulfillment to 120
On-site class for local high school students
enthusiastic students.

altogether as of March
2019. Through this initiative
the company is significantly
contributing to advancing
concrete technology in the
country.

Quality, Technologies
and R&D

the only opportunity they have to directly observe and workwith ready-mixed concrete produced at the plant during
their four-year degree program.

69

WBCSD-CSI and GCCA Key Performance Indicators▶

GRI 301-2, 302-1, 3, 303-1, 305-4, 5, 7, 403-2, 9, MM2

air pollutants. We set group targets using the KPIs andour progress toward achieving these targets are shownin the following chart. In addition, group performance
for CO2 and climate protection, emissions monitoring
and reporting, health and safety, and water, has been
subjected to an independent limited assurance review by
KPMG AZSA Sustainability Co., Ltd.

In accordance with the CSI Charter and GCCA
Sustainability Charter, member companies of CSI and
GCCA pledge to publicly disclose their performanceon the priority issues facing the cement industry using
the key performance indicators (KPIs) developed by
the CSI. They also pledge to set and make efforts toachieve reduction targets for CO2 emissions and major
CO2 Emission Reduction Targets

Reduction Target for Main Air Pollutants

Cement production-related CO2 emissions from Taiheiyo Cement and group companies

Emissions of NOx, SOx and dust from the main stacks of kilns at the cement production
sites of Taiheiyo Cement and group companies

Reduce specific net CO2 emissions per tonne of cementitious product by 10%
or more from fiscal 2000 levels by fiscal 2025. (CSR Objectives for 2025)

Limit NOx, SOx and dust levels per tonne of clinker (g/t-clinker) to thetarget levels achieved in fiscal 2010

■ Key Performance Indicators of the CSI and GCCA for Fiscal 2018*1

CO₂ and Climate Protection (CO₂ emissions, energy consumption)

FY2016FY2017FY2018

18
100
22.7
21.9
708
683
0.886
3,306
11.3
1.8
83.1

18
100
23.3
22.4
703
679
0.985
3,303
11.6
1.8
82.9

18
100
23.5
22.6
696
671
0.963
3,268
12.0
1.8
82.8

Alternative Raw Materials Use
Alternative raw materials rate: consumption of alternative raw materials, as a percentage of total raw materials for cement and clinker
production (%, calculated on a dry basis)

FY2016FY2017FY2018

15.5

15.5

16.0

Health and Safety

FY2016FY2017FY2018

Number of facilities using CSI and GCCA “The Cement CO₂ and Energy Protocol” guidelines for emissions inventory
Percentage of facilities using CSI and GCCA “The Cement CO₂ and Energy Protocol” guidelines for emissions inventory (%)
Gross
Total CO₂ emissions (million tonnes/year)
Net*2
Specificgross CO₂ emissions
CO₂ emissions per tonne of cementitious product*3 (kg-CO₂/t-cementitious)
Specific net CO₂ emissions
Emissions from electricity purchased (million tonnes/year)
Specific heat consumption of clinker production (MJ/t-clinker)
Alternative fuel rate (% of thermal energy consumption) of kiln
Biomass fuel rate (% of thermal energy consumption) of kiln
Clinker/cement ratio (%)

Fatalities
Number of fatalities for directly employed
Fatality rate per 10,000 for directly employed
Number of fatalities for indirectly employed (contractors and subcontractors)
Number of fatalities involving third parties (not employed)
Lost-time injuries
Number of lost-time injuries for directly employed
Injury frequency rate of directly employed employees (per 1,000,000 working hours)
Number of lost time injuries for indirectly employed (contractors and subcontractors)
Emission Monitoring and Reporting
Percentage of clinker produced by kilns covered by a monitoring system, either continuous or discontinuous for main and other pollutants
NOx
Percentage of clinker produced by kilns which have installed continuous measurements
SOx
for the main pollutants
Dust
NOx
Total emissions (tonnes/year)
SOx
Dust
NOx
Specific emissions (g/t-clinker)
SOx
Dust
Local Impacts
Percentage of sites with community engagement plans in place
Percentage of active sites with quarry rehabilitation plans in place
Number of active sites where biodiversity issues are addressed
Water
Amount of withdrawal (1,000 m )3Amount of discharge (1,000 m3)

Fresh water
SeawaterFresh water
Seawater

0
0
0
0

1
2.63
0
0

0
0
1
0

8
0.97
10

7
0.87
6

8
1.01
8

FY2016FY2017FY2018

100
100
81.6
100
32,897
2,108
1,057
1,221
78
39

100
100
84.7
100
33,048
2,214
841
1,197
80
30

100
100
84.2
100
33,183
1,881
768
1,187
67
27

FY2016FY2017FY2018

100
100
3

100
100
3

100
100
3

FY2016FY2017FY201826,719146,097
12,964
146,097

27,596
149,056
12,294
149,056

26,656
149,776
12,167
149,781*1 Accounting and reporting of KPIs for fiscal 2018 is in accordance with the WBCSD-CSI’s guidelines in “CO2 and Energy Accounting and Reporting Standard for the Cement Industry” Version
3.1, “Guidelines for the Selection and Use of Fuels and Raw Materials in the Cement Manufacturing Process” Ver. 2.0, “Safety in the Cement Industry: Guidelines for measuring and Reporting”
Version 4.0, “Guidelines for Emissions Monitoring and Reporting in the Cement Industry” Version 2.0, “Guidelines on Quarry Rehabilitation,” “Protocol for Water Reporting” Version 1.0,” and “GCCA
Sustainability Guidelines for the monitoring and reporting of CO2 emissions from cement manufacturing Ver. 0,” “GGCA Sustainability Guidelines for the monitoring and reporting of safety in cement
manufacturing Ver. 0,” “GCCA Sustainability Guidelines for the monitoring and reporting of emissions from cement manufacturing Ver. 0” and “GCCA Sustainability Guidelines for the monitoring andreporting of water in cement manufacturing Ver. 0.” 100% of data for subsidiaries and partner companies (regardless of percentage of ownership) subject to aggregation is counted.
*2 Net CO2 emissions: gross CO2 emissions minus the CO2 emissions from alternative-derived fuels.
*3 Cementitious product: total clinker produced plus mineral components processed at the plants.

70

TAIHEIYO CEMENT CSR REPORT 2019

Independent Assurance Report on WBCSD-CSI and GCCA Key Performance Indicators

GRI 102-56▶

TAIHEIYO CEMENT CSR REPORT 2019

71

GRI 102-45, 50, 51, 52, 53, 54, 56▶

Editorial Policy

Scope and Boundaries of this Report

Through this report we intend to convey how we conduct our CSR activities toour stakeholders. The report also serves as a communication tool, and we hope toreceive a wide range of comments from readers toward enhancing our activities andlevel of disclosure. CSR Report 2019 reflects the following efforts.

Reporting Period
April 1, 2018 to March 31, 2019
Some information about events occurred outside this period are also included inthis report, which is clearly stated.

he first half of the report (pages 2 to 19) serves as a summary of our CSR• Tactivities.
In the latter half (pages 20 to 71) we report details of these various
activities.

t the beginning of the report we present the big picture of the group by• Asharing
our vision for its future based on the targets on pages 4 and 5, and its•

present status on pages 6 and 7, which also present a “CSR dashboard” page
where readers are provided with an outline of business operations as well as anintegrated summary of past and current trends in financial and non-financial
performance and the group’s long-term objectives. It is also meant to serve as a“dashboard” that indicates the state of the group.
The 2019 report includes the following new content.
• Mitigating Climate Change: Our support for the recommendations of the
TCFD and a framework for our long-range vision of greenhouse gas emissions
reduction (page 36)• Conserving Biodiversity: Impact of our operations on biodiversity (pages 42
and 43)• Supply Chain: Supply chain due diligence enhanced by implementing
questionnaires (pages 54 and 55)

Guidelines Used for Reference
GRI Sustainability Reporting Standards (GRI Standards) 2016/2018
Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues
for Collaborative Value Creation (Ministry of Economy, Trade and Industry)
Environmental Reporting Guidelines 2018 Edition (Ministry of the Environment)
Environmental Accounting Guidelines 2005 Edition (Ministry of the Environment)
ISO 30414
Publication Dates
October 2019 (previous report: October 2018, next report: October 2020)
Clarifying Efforts to Achieve SDGs
We analyzed our business risks and opportunities, clarified their relevance to the
Sustainable Development Goals (SDGs) and displayed icons representing therelevant SDG goal on each page of our activities. We will seek to contribute toachieving the SDGs through the group’s business activities.

Boundary of Reporting Organizations
The report covers Taiheiyo Cement Corporation (non-consolidated) and includes
our group companies. “The company” refers to Taiheiyo Cement Corporation (nonconsolidated); when information pertains to one of our group companies, thegroup company’s name is explicitly stated.
◦Boundary of Reporting Organizations by Quantitative Data
Quantitative data are aggregated on a consolidated basis and under the following
three categories. An icon representing the relevant aggregation scope isassociated with data for categories 1 and 2.
Category 1 Non-consolidated
Taiheiyo Cement Corporation (non-consolidated)
Category 2 WBCSD│GCCA
Scope of data collected for KPIs of WBCSD*1-CSI*2 and GCCA*3 reporting.
Organizations covered are listed on page 7.
Category 3 (others)• Material Balance of Business Activities (pages 48 and 49) and Volume of Waste
to Landfill (page 45): Organizations covered are listed on page 49.
• Number of fatalities (page 6) and the number of accidents registered in the
Work-related Accident Database (page 63): employees of the company, groupcompanies (including overseas) and our contractors.
*1 WBCSD (World Business Council for Sustainable Development): An international, CEO-led
association of about 200 member companies toward sustainable business development andthe creation of sustainable societies.
*2 CSI: Cement Sustainability Initiative*3 GCCA: Global Cement and Concrete Association

Sustainability Accounting Co., Ltd. (Chiyoda-ku, Tokyo) also conducted a thirdparty audit to ensure all information stated in this report, excluding quantitative
data, is consistent with the relevant company information.

Reporting in Accordance with the GRI Standards
This report is prepared in accordance with the Core option of the Sustainability
Reporting Standard. Numbers for the GRI Disclosure items are indicated in therelevant reports, and the GRI Content index is available on our website.

The following information is available on our website.

https://www.taiheiyo-cement.co.jp/english/
CSR

CSR Report

Data• Waste and by-product processing in cement plants• Status of health issues associated with asbestos• Company-wide training system (Japanese only)• GRI Content Index

Contact Information

TAIHEIYO CEMENT CORPORATION
Corporate Social Responsibility Group, General Affairs Department
Phone: +81-3-5531-7335 Fax: +81-3-5531-7552
E-mail: webmaster@taiheiyo-cement.co.jp

72

TAIHEIYO CEMENT CSR REPORT 2019

◦Disclaimer Regarding Forward-looking Statements

Plans and prospects included in this report are predictions based on
information available at the time of publication and are subject tounpredictable risks and uncertainties. Consequently, there are no explicit or
implied guarantees as to actual results, which may materially vary from the
projected figures or measures cited in this report.

Third-Party Opinion▶

GRI 102-44

Takeshi Mizuguchi
Professor, Faculty of Economics,
Takasaki City University of Economics

Since the October 2018 publication of the “1.5°C Special
Report” on Global Warming by the Intergovernmental Panelon Climate Change, the world has sought to undertake thedifficult task of limiting the global temperature rise to 1.5°C,
requiring the net-zeroing of anthropogenic CO2 emissions
by 2050.
Immediately after its publication, you announced yourlong-term vision for 2050. This was indeed timely, and I mustsay that the target, an 80% reduction of CO2 emissions from
cement production, is extremely ambitious.
I suspect that merely streamlining operations throughthe best use of currently available technology would notenable you to reduce CO2 emissions by as much as 80%. You
will need to develop a new cement material that generates
significantly less CO2 during production and practically
apply additional CCUS (carbon capture, utilization andstorage) approaches, to name a few. Since breakthroughs
will not suddenly appear in 2050, I hope you will map out
a path toward your goal and steadily achieve progress until
reaching the targeted reduction by that year.
I also strongly affirm your declaration of support for
the recommendations by the Task Force on Climate-related
Financial Disclosures (TCFD). Since the TCFD represents
investor concern over climate risks, your public recognitionof those risks and commitment to managing the issue are
significant. Please do your best to disclose information inalignment with the TCFD.

Response to Third-Party Opinion

Let me also express my admiration for your active
memberships in the Cement Sustainability Initiative of the
WBSCD and the Global Cement and Concrete Association(GCCA). The 2050 vision and declaration of support for the
TCFD recommendations must be strongly related to yourfirst-hand participation in global initiatives led by thoseorganizations. I encourage you to maintain your active
participation in these efforts.
Resource recycling and biodiversity are just as
important to the cement industry as climate change. Your
recycled-waste-to-cement system for reusing various types
of waste and byproducts as raw materials for cement,
as well as your Ecocement system, are noteworthy. Your
commitment to the creation of a genuine recycling-basedsociety, however, may ultimately require maximizing theratio of recycled materials and putting off the developmentof quarries for as long as possible.
It is great that no fatal accidents occurred in fiscal
2018, though there was an accident involving a worker
falling. I see that you are diligently striving to secure worker
safety. You have also worked hard on promoting diversity,
including the empowerment of women in the workplace.
I encourage you to continue your efforts and as quickly
as possible attain the target ratios of new female recruits,
female employees and new female managers.
The revised Immigration Law of Japan, which cameinto force in 2019, may help raise the number of foreign
nationals at your production sites. A lack of Japanese
language skills and also cultural differences could leadto miscommunication and unexpected challenges. A
large corporate group like yours, comprised of nearly
300 subsidiaries and affiliates, is inherently prone to suchrisk. I expect you to fully prepare yourselves to prevent
unexpected human rights issues.

Hideaki Asakura Director, Managing Executive Officer, CSR

I am greatly encouraged this year again by Mr. Mizuguchi’s deep understanding of our efforts against
climate change, taking into account the related challenges facing the cement industry. Last year
you pointed out we should lead the cement industry in providing solutions for climate change
mitigation toward 2050. This year we set the reduction of CO2 emissions from cement production as a
key component of our growth strategies and have worked toward attaining this goal. Your favorable
acknowledgement of these efforts is very encouraging. As you noted, since more foreign nationals
will be working in Japan, we should indeed prepare ourselves to prevent any human rights violations associated withmiscommunication and other problems and ensure we are able to report specifically on the matter.
We will continue to deepen our dialogue with stakeholders in order to better respond to their expectations, and we lookforward to receiving frank opinions on this report from readers.

TAIHEIYO CEMENT CSR REPORT 201973

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