CSR Report 2019
Corporate Social Responsibility Report 2019

CSR Report 2019 Contents
Editorial Policy ������������������� 02

About the Nihon Nohyaku Group

Editorial Policy

02

The Basic Principles of the Nihon Nohyaku Group ������������������������ 02
The Nihon Nohyaku Group Action Charter ������������������������������ 02
Financial and Non-Financial Highlights��������������������������������

The Nihon Nohyaku Group Mission
Commitment of Top Management
The Nihon Nohyaku Group Vision

03

05�������������������������������������

05�������������������������������������������������

07

This CSR Report summarizes
the Nichino Group activities using
the following as references:Environmental Reporting
Guidelines (2012) by theJapanese Ministry of theEnvironment, Environmental
Accounting Guidelines (2003) by
the Japan Chemical Industry
Association (JCIA), and JIS Z
26000: 2012 Guidance on Social
Responsibility, etc.

Mid-Term Business Plan �������������������������������������������������������� 07[Scope of applicability]

Feature:Contribution to Safe and Stable Food Productionin the United States, the Largest Crop Exporting Country

09

Corporate Governance ��������������������������������������������� 11[Data aggregation period]

1. Corporate Governance Guidelines (Basic Approach) ���������������������������������� 11

Unless otherwise noted, the2018 agrochemical fiscal year
(October 2017 to September
2018, denoted in this text simply
as “fiscal year”). Capital,
numbers of employees, net
sales, etc., displayed in this text
are as of end of September
2018. Information includes topics
through March 2019.

2. Corporate Governance Diagram������������������������������������������������

Responsible Care Activities Supporting Sustainable Development

11

13

Environmental Protection �������� 21
1. Input of Resources and Energy and Output of
Products and Environmental Load ������ 21
2. Environmental Impact ��������������� 21
3. Environmental Accounting ������������ 23
4. Activities toward Green Purchasing andGreen Procurement ����������������� 24
5. Efforts towards Creating a Low-Carbon Society � 24
1. RC Promotion Diagram �������������� 13
2. RC Global Charter ������������������ 13
3. Management System

14
4. RC Mid-Term Targets and Activity Results/Plans ���� 14����������������

1) About the Nichino Group RC Mid-Term Targets(FY2016-FY2020) ������������������� 142) FY2018 Activity Results and Internal Evaluation � 153) FY2019 Activities ������������������� 17

Occupational Safety & Health, Process
Safety & Disaster Prevention ����� 18
1. Occupational Safety & Health ���������� 18
2. Process Safety & Disaster Prevention ���� 19

Information and Topics of Each Facility �� 32
Company Overview and List of
Nichino Group Companies ����������� 36
01

Unless otherwise noted,
performance data is from Nihon
Nohyaku Co., Ltd. and Nichino
Service Co., Ltd.

CSR REPORT 2019

Logistics Safety, Product Stewardship(Chemical Materials & Products Safety) � 25
1. Logistics Safety �������������������� 25
2. Product Development Considering Environment /Safety and Animal Welfare ������������� 25
3. Management of Safety Information on Raw
Materials and Products �������������� 26
4. Eliminating NPE and Reducing PRTR Substances � 27

[Issue]March 2019
(Next: Planned for March 2020)

About the Nihon Nohyaku Group

About the Nihon Nohyaku GroupThe Nihon Nohyaku Group (The Nichino Group)* has outlined the Basic Principlesof the Nichino Group as basic management principles shared by all executives andemployees, and which serve as the foundation for all our business activities.
* Refers to consolidated Group companies and non-consolidated Group companies indicated on Page 36.

The Basic Principles of the Nihon Nohyaku Group● We contribute to society by ensuring a safe and steady food supply and improving thequality of life for all.
● We fulfill market needs by creating superior values with innovative technologies.
● We commit to being a trustworthy company for all stakeholders through our fair andvigorous business activities.

Based on this Basic Principles, we have established the Nichino Group Action
Charter that is applied to all executives and employees.

The Nihon Nohyaku Group Action Charter

1. We improve the quality of life for all by providing safe and effective products andservices that satisfy our customers.
2. We conduct fair and transparent business operations, respecting social ethics andcomplying with related laws, regulations and the spirit thereof.
3. We contribute to the realization of a sustainable society, considering the global
environment.
4. We actively communicate and contribute to our communities as a good corporate
citizen.
5. We properly manage corporate information and disclose it in a timely and appropriatemanner.
6. We recognize the importance of personal data, intellectual property and otherinformation, and safeguard it under proper protection and management.
7. We ensure a safe and comfortable work environment for our employees, always
respecting human rights and the diversity found among people and cultures.
8. We entirely exclude involvement with antisocial forces and organizations, andresolutely refuse unreasonable requests.
9. We respond to globalization of business activities by adhering to international rules
and local laws. We conduct activities with respect for the cultures and customs of
local societies, and contribute to the development of each country and region.
10. We promote the sound and sustainable development of the Nichino Group to ensure
our social contribution.

The Nichino Group also applies “Chemical
Innovator for Crop & Life” as a corporate
statement that further solidifies the principles of
our Basic Principles and Action Charter. Throughthis statement, we challenge ourselves to ensurea safe and steady food supply and to improve
the quality of life for all through technicalinnovation.

About CSR (Corporate Social Responsibility)
CSR is the general term for activities focused on achieving sustainable development for the company and society based on the philosophy that the
responsibility of a corporation is not simply to adhere to the law and pursue profits for the company, but also to fulfill responsibilities to society based on an
ethical code.
Based on the above Basic Principles, the Nichino Group is pushing forward the establishment of a CSR promotion system.

About Sustainable Development Goals (SDGs)

5. Response to Poisoning and Environmental Accidents � 27

Communication with Society

�����

28

1. Distributing Information to Society ������ 28
2. Relationship to Society �������������� 29

The Summit on the Sustainable Development Goals held at
the United Nations Headquarters from September 25 to 27,
2015. Leaders from over 150 member nations participated andthe summit resulted in the creation of the 2030 Agenda for
Sustainable Development Goals. This Agenda outlines
recommendations and goals as an action plan for people, theearth, and prosperity. These goals are a continuation of theMillennium Development Goals (MDGs). The SDGs consist of
the 17 goals indicated in the symbolized by the logos on theright and 169 targets.

CSR REPORT 201902

About the Nihon Nohyaku GroupNon-financial Information

Sales

Ordinary income

Profit attributable to owners of parent(million yen)(million yen)(million yen)

56,696 56,930

9,361

60,033 61,213

9,375

6,137

5,625

50,641

Rate of female employees

Rate of female managers(Nihon Nohyaku Co., Ltd)

(Nihon Nohyaku Co., Ltd)

(%)

(%)

(days)(Nihon Nohyaku Co., Ltd)

18.2

18.8

19.4

19.3

20.2
6.9

Paid leave days used*1

7.1
8.85

5.6
3,864 3,597 3,651

3.6

2,507

9.51

10.40

11.26

11.49

2017

2018

Financial and Non-Financial Highlights

Financial Information (consolidated)

About the Nihon Nohyaku Group

Financial and Non-Financial Highlights

4.2

1,717
1,035
2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

Domestic agrochemical sales

32.8%

55.2%

(Asia

20,089(Increased

Other chemical
products

Overseas agrochemical sales

34.5% )

(Americas

33,807

2.5% YoY)(Increased(million yen)

4.7% YoY)(Decreased

2.9%

Garden and greenification
construction, real estateleasing, agrochemical
residue analysis, etc.

03

CSR REPORT 2019

2018

2014

16

(Decreased

24,655

2016

2014

2015

2016

2018

2014

2017

2014

2015

(million yen)

Patent applications filed in Japan
Patent applications filed overseas*3

103

2016

(Group consolidated)

5,143

5,527

5,197

93

69

5,014

4,690

74

70

86
41

56

3

2018

23

24

29

2014

2015

2016

18

17

2017

2018

Charitable donations

Number of employees(thousand yen)(persons)(Nihon Nohyaku Co., Ltd)12,480 12,950 12,250
10,5002017

1,457 1,461

1,443

1,266

5,549

2018

Nihon Nohyaku Co., Ltd
The Nichino Group (consolidated)

11,150

7,821

2016

2018

2014

2015

2016

2017

2018

Female employee maternity leave usage rate was 100%

10.8% YoY)

2015

2017

(Number)

14

2
0

2016

R&D expenses

78

0

2015

Number of patent applications filed

101% YoY)

million yen

8,814

2017

17
13

million yen

10,646

2015

17

2014

(Nihon Nohyaku Co., Ltd)

Number of male employees eligible for paternity leave
Number of male employees taking paternity leave

1,7677.5

6,217

2017

2018

33,807

21,4462016(persons)(million yen)

32,303
26,139

Other

1

5,549

million yen(million yen)

2015

2017

(Nihon Nohyaku Co., Ltd)Sales

19,937 19,883 19,578 19,601 20,089

2014

2016

Other chemical products

Sales
million yen

9.1%

57.3% ) (Europe 5.0% ) (Other regions 3.2% )Overseas agrochemical sales

Sales

2015

Number of male employees taking paternity leave*2

Status by business division

Domestic agrochemical sales

2014*1 Applies to regular full-time and temporary full-time
employees, and does not include contract employees.
*2 Includes persons employed at that time who have sinceretired. Applies to full-time employees, and does not include
contract employees.
*3 Number of PCT international applications filed (by transfer
country) + Paris route or Number of standard applications
filed

731

2014

2015

2016

2017

2018

428

453

438

419

414

2014

2015

2016

2017

2018

CSR REPORT 201904

The Nihon Nohyaku Group Mission

Nihon Nohyaku was established as the first agrochemical manufacturer in Japan and celebrated our 90th
anniversary in November 2018.
We have been continuously creating new agrochemicals as an R&D-focused enterprise while constantly
pursuing innovation in response to changing times.
The global population is expected to reach 9.8 billion people by 2050. As a global company, the NichinoGroup contributes to ensuring safe and steady food supply by creating safer and more effective
agrochemicals.

Nihon Nohyaku has helped develop
society through agrochemicals
Nihon Nohyaku was established in 1928 as the first
agrochemical manufacturer in Japan.
Agrochemicals are now recognized and widely usedthroughout the world as an effective means to maintainthe harvest volume and quality of crops whileeliminating pests and other factors harmful to the crops.
In Japan, it was Nihon Nohyaku that used the term
“NOHYAKU (agrochemical)” in the company name forthe first time and spread the word throughout Japan.
Because agriculture is, unlike unmodified nature, an
artificial process in which a single type of crop isplanted across a wide area, stable harvest often comeswith difficulty. In nature, diverse animals and plants fightfor their survival, which inhibits certain types of pests
and weeds from proliferating. However, agricultural
fields such as rice paddies and crop fields tend to sufferfrom an unstable ecosystem and become susceptible topests because those fields find use in growing a single
plant species for the sake of efficiency. In addition, thegrowth of weeds results in depriving crops of necessary
water and nutrients and preventing theirphotosynthesis. Agrochemicals are one of the safe andeffective means to eliminate these pests and weeds andmaintain harvest volume and quality.
Since its foundation, Nihon Nohyaku has upheld themission of ensuring safe and steady food supply andimproving the quality of life for all, striving for spreading
agrochemicals, developing pest controlling techniques
and promoting their safe and appropriate use.

Yosuke Tomoi
President

05

CSR REPORT 2019

Toward an R&D-focusedenterprise that creates safer andmore effective agrochemicals
Nihon Nohyaku has been trusted by the market as amanufacturer that develops highly-safe, excellent new
agrochemicals.
We believe that safe agrochemicals provide selective
efficacy on targeted pests with low toxicity and volume.
For example, Nihon Nohyaku’s insecticide APPLAUD(buprofezin) has a killing effect against plant hoppers, arice paddy pests, and whiteflies and scale insects that
harm cotton and fruits, but does not affect their natural
predators such as birds, frogs, and spiders. APPLAUD
inhibits molts of some hemipteran larvae such as plant
hoppers, which molt as they grow, but does not act on
any other animals or plants at all.
We have created such highly-safe, selective, andoriginal agrochemicals, and this has enabled us toestablish a unique position in the agrochemical market.

Promoting globalization towardsustained growth
For Nihon Nohyaku to contribute to ensuring safe andsteady food supply, we must create new agrochemicals
on a continuous basis. Creating new agrochemicals
requires a significant amount of R&D investments,
which is why Nihon Nohyaku has been working to
expand our business scale, including throughglobalization in order to secure funds needed.
Our overseas business expansion has been making
progress. In 1997, we established Nihon Nohyaku
America, Inc. (currently Nichino America, Inc.) as we
aimed to expand our business model based on the
direct sales of proprietary agrochemicals, which was
followed by the acquisition of Hyderabad Chemical Pvt.
Ltd. (currently Nichino India Pvt. Ltd.), an Indian
manufacturing and sales company, in 2015 and Sipcam
Nichino Brasil S.A., a Brazilian manufacturing and sales
company, in 2016, as consolidated subsidiaries.
The Nichino Group now has direct sales networks incountries in North America and Europe, as well as inother major agricultural producers including Brazil,
India, Taiwan, Vietnam and Colombia, and overseas
sales now account for more than 50% of ourconsolidated net sales.

Commitment of Top Management

Our Mission as an Agrochemical Manufacturer:
We Contribute to Steady Global Food Supply.

The Nihon Nohyaku Group Mission

Commitment of Top Management

Toward contributing to steadyglobal food supply
The global population is currently 7.6 billion people
and this is expected to increase by 28% to 9.8 billion
people by 2050. To support such a large population,
increased food production is essential. The Sustainable
Development Goals (SDGs), adopted by the United
Nations Headquarters in 2015 with the participation ofleaders from over 150 member states, set out “ZeroHunger” as one of their goals.
One possible way of increasing food production iscropland expansion, but there seems to be little roomfor expansion because most regions have a limited
amount of land suitable for agricultural cultivation. Using
agrochemicals is one of the effective means to secure astable harvest volume of crops in a limited amount of an
agricultural field. Nihon Nohyaku conducts “All-around
Screening”* in research for new agrochemicals, applies
the latest computer simulation technologies and works
to diversify and expand research through open
innovation that involves joint research with universities
and public research institutions. In this way, we maintainand realize the target of “consistently launching new
agrochemicals in every three years”, contributing toensuring steady food supply.
Securing stable, continuous food production andquality is bringing a growing demand for new
agrochemicals. But only several companies, including
major multinational enterprises in the U.S. and Europe,
as well as some companies in Japan, are capable ofdeveloping new agrochemicals, because synthesizing
and screening agrochemicals requires advanced
technology and abundant expertise. Therefore, we
believe that the role played by the Nichino Group’s highcapability to create new agrochemicals is significant.
* A method in which one compound goes through an evaluation process thatcovers a wide range of fields including insecticide, fungicide and herbicide. This
allows us to develop valuable compound efficacy without overlooking it.

Formulating a new Mid-TermBusiness Plan toward 2021
The Nichino Group has set “Growing Global to
become an outstanding globally competitive group” in2013 as its Group Vision. Under the Vision, we arecommitted to launching high value-added new andunique agrochemicals and expanding sales of quality
generic agrochemicals and other highly-pervasive
agrochemicals in Asian, South American and othercountries with strong demands, in order to contribute tosteady global food supply. Nihon Nohyaku sets net

CSR REPORT 201906

The Nihon Nohyaku Group Mission
The Nihon Nohyaku Group Mission

Commitment of Top Management

Synergy expected from the capital and business alliance with ADEKA Corporation

The Nichino Group Vision

To become an outstanding globallycompetitive group

We contribute to the future of mankind through protecting crops andimproving our living environment by further improvement of ourtechnology that has arisen through agrochemical business.

ADEKA Acquisition of a range of expertisein the area of life science

We contribute to society through supporting agriculture by providing
new agrochemicals & technology continuously Expansion of sales and profit

Ensuring Growing Global 2021
Group KPI*:
Operating profit ¥6 Bil
Sales ¥80 Bil

Globalexpansion
up until now

aggressiveplans¥

100 BilReinforcement ofbusiness structure–Improving profitability–Pursuing group force & synergy* KPI: An abbreviation for “Key Performance Indicator”, which serves as an indicator for understanding the degree of achievement of targets of a company.

sales of over 200 billion yen, the largest in the
agrochemical industry in Japan and among the largest
worldwide, as its “ideal business scale”, and will strive
to realize this goal.
As a milestone for 200 billion yen in net sales, Nihon
Nohyaku has formulated a new Mid-Term Business
Plan “Ensuring Growing Global 2021 (EGG2021)” thatsets the final year of FY2021. The new Mid-TermBusiness Plan aims to expand our operational capacity
through maximized profit contribution of past investment
and acquisition projects and execution of additional
growth strategies. We aim to achieve consolidated net
sales of 80 billion yen and a further aggressive goal of
100 billion yen by FY2021. The new Mid-Term Business
Plan sets out “improving profitability” and “pursuinggroup force & synergy” as the two pillars. As for theformer, we will work to improve profit margins and thecapabilities of marketing, sales, new agrochemicals
creation, and product development. With regard to the07

CSR REPORT 2019latter, we will be implementing measures such as
strengthening of the governance system, effective
sharing of R&D functions, global procurement andbuilding of a manufacturing system, with the aim ofstrengthening the global system and maximizing theGroup functions. Additionally, we will work to create awork environment in which employees can work “ikiikiwakuwaku” (meaning working with liveliness,
excitement and joy) by implementing measures that
help them realize their own growth. Such measures
include an operation and workstyle reform project toimprove employees’ productivity and diversity
promotion.
Nihon Nohyaku signed a capital and businessalliance agreement with ADEKA Corporation in August
2018 to strengthen our financial foundation and createsynergy. Nihon Nohyaku serves as a core enterprise in
ADEKA Group’s life science field while maintaining theindependence of management.

 Securing of R&D expenses
through capital increases throughthird-party allotment and theimplementation of M&As andother proactive initiatives

Personnel exchange, enhancement of mutually complementary powerin the R&D domain, mutual utilization of production technologies and process
chemistry, and mutual exchange of organic synthesis technologies with“chemicals” as the platform

Mid-Term Business Plan

Further

Nihon Nohyaku
Commitment of Top Management

Nichino GroupGrowing Global

To our stakeholders
The Nichino Group has established the “Basic
Principles of the Nichino Group”, setting the threeprinciples of 1) contributing to society by ensuring safe
and steady food supply and improving the quality of life
for all, 2) fulfilling market needs by creating superiorvalues with innovative technologies and 3) committing
ourselves to being a trustworthy company for all
stakeholders through fair and vigorous businessactivities, as the base for all the activities of ouremployees. These Basic Principles, which areconsistent with the common global SDGs, will serve as
the basis for the Nichino Group to improve its CSR
promotion system.
Under the situation where the global population is
expected to continue growing, the Nichino Group has
invested about 10% of net sales in R&D to focus on
creating new agrochemicals as an R&D-focusedenterprise and thereby contribute to steady global foodsupply, while achieving continuous growth. However, in
the recent context of the soaring needs for the safety

and selectivity of agrochemicals, Nihon Nohyaku iscommitted to accelerating growth by spending moretime and cost than ever, with the aim of creating new
agrochemicals and generating profits.
Nihon Nohyaku not only works to ensure continuous
growth with a long-term perspective, but also
participates in initiatives concerning smart agriculture
utilizing AI and IoT, as well as IT related projects
promoted by the Ministry of Agriculture, Forestry and
Fisheries. By taking a proactive approach to these new
movements and engaging in closer communication withour customers, we hope not only to improve our brandstrength, but also to utilize a wealth of information
obtained from our customers in R&D and marketing of
the products of Nihon Nohyaku, and reflect them in our
products and services.
We would like to ask all of our stakeholders to watch
over the Nichino Group’s initiatives with generous eyesin the years ahead, and we hope for their continuing
support, encouragement, and understanding.

Smart agriculture

Smart agriculture refers to a new type of agriculture that promotes the realization of laborsaving and high-quality
production utilizing robotics and information and communication technology (ICT).
Images of pest
infestations and weeds
FarmerSmartphone app

Diagnosis
results
Pest control
information

Image
database

Diagnostic AI

AI diagnoses pests and weeds
Provides appropriate advice
on control agents
Obtains valuable on-site
information

Cloud

CSR REPORT 201908

Contribution to Safe and Stable Food
Production in the United States,
the Largest Crop Exporting Country
The U.S. is the second largest crop protection market in the world and the largest
crop exporting country in the world. For international farm trade, obtaining Maximum
Residue Limits (MRL) and Import Tolerances (IT) from the destination countries andregions for the export crops have become crucial requirements.
Therefore, U.S. agrochemical companies are responsible not only for crop
protection but also for supplying safe food all over the world through thepromotion of appropriate application timing and technique of agrochemicals.
The safety and risk assessment standards needed for humans, animals andthe environment - including water, soil and beneficial organisms - arebecoming increasingly strict these days. Along with this movement,
the number of requirements and the investment needed for acquiring andmaintaining an agrochemical registration is also increasing year by year.
Jeffrey R. Johnson, the President of Nichino America, Inc. (NAI), talks about
managing Nichino Group’s activity in the U.S. under this increasingly challenging
business environment.

Contribution to customers through reliable information and technical support
We have strengthened our capabilities to develop andregister new agrochemicals in tandem with expanding
the business. Our consultative technical selling
approach based on the collaboration of ourDevelopment, Regulatory, Marketing and Sales teams
has been a key to this business expansion. Our ProductDevelopment Group finds ways to make full use of thepotential abilities of our new and existing compounds byworking with experts at universities and in Nihon
Nohyaku, while implementing efficacy evaluations in
actual farm field conditions. Our Regulatory Groupbuilds and maintains a good relationship with the U.S.
Environmental Protection Agency that allows us an
open-minded discussion for obtaining new registrations,maintaining our current uses and setting MRL’s/IT’s.
This successful approach is based on crossdepartmental information sharing and collaboration withother Nichino Group companies. NAI’s Sales teamworks closely with both our Product Development
Group and Marketing team to match the biological
performance of each product with market needs,
providing optimal solutions to each customer. In* Integrated Pest Management: To control pest infestations and weeds that harm crops by combining cultural, biological, chemical and physical technologies, including
agrochemicals, in an integrated manner.

Nichino America, Inc.
President

Jeffrey R. Johnson

c o l u m n

Reference JMAFF “Status of Agriculture, Forestry, and Fisheries in the U.S.” Updated July 3, 2017

The development, registration and supply of newly discovered agrochemicals is the Nichino Group’s mission

09

CSR REPORT 2019

Contribution to solution of customer issues through concerted efforts of
the Product Development Group and Technical Sales Representatives
Many peanut growers in Georgia had struggled for many years withthe soil-borne disease white mold, which causes significant yield loss.
Our Product Development Group implemented a lot of field trials with
the University of Georgia, which has a significant influence on pest
control programs for peanuts in Georgia and established the status of
flutolanil as the main product for white mold. Our local Technical Sales
Representative, Mr. Wayne Brown identifies problems in existing
disease control through deep communication with customers andproposes protection programs that respond to each of them, thereby
establishing a relationship of trust. For example, we made a proposal
for Mr. Gary Sauls, a large peanut grower in Shellman, Georgia, for two
sequential applications of flutolanil at an interval of 30 days. This
proposal had excellent results in improving the yield. Mr. Sauls
continues to use the product and has high expectations for additional
proposals for new products from the Nichino Group.

http://www.maff.go.jp/j/kokusai/kokusei/kaigai_nogyo/k_gaikyo/attach/pdf/usa2-3.pdf

Since its establishment in 2001, NAI has been
expanding its business by boosting direct sales to U.S.
distributors, mainly selling Nihon Nohyaku proprietaryproducts. One of the characteristics of NAI is that we put
key focus on developing and selling agrochemicals forthe high value crop market, rather than large acreage
crops like corn and soybeans. Our products include, forexample, flutolanil for white mold on peanuts,
fenpyroximate for mites on tree nuts, buprofezin forscale insects on grapes and pyraflufen-ethyl as a cotton
harvest aid. In the U.S. market, the number of insects,
fungus and weeds, which are becoming tolerant against
a variety of pesticides is increasing and effective
agrochemicals are continually required. We havedeveloped and launched tolfenpyrad in the U.S. citrus
market, where growers are having difficulty with one of
the most destructive citrus diseases – huanglongbing.
Tolfenpyrad provides excellent insecticidal efficacy
against Asian citrus psyllid, the insect which transmits
this troublesome disease, and is now widely used as
one of the best solutions by citrus growers trying to

addition, the Sales team provides customer feedback to
the Development Group to improve our products utility
for the farmers. Based on these technology-based
activities, many of our products contribute to increased
crop yields and quality through an integrated
management of pest infestations and weeds (IPM*).

Feature Contribution to Safe and Stable Food Production in the United States, the Largest Crop Exporting Country

Nichino America, Inc.

The Nihon Nohyaku Group Mission

Featurecontrol huanglongbing. In addition, we acquired thefederal food crop registration for pyrifluquinazon
insecticide and launched it in 2019. Pyrifluquinazon
demonstrates outstanding efficacy against a variety ofpests that are developing resistance to many current
insecticides, such as aphids, citrus thrips and whiteflies.
Additionally, we are now developing a novel fungicide
pyraziflumid, which has high fungicidal efficacy against a
broad range of diseases, and orthosulfamuron herbicide
for weed control in tree nuts and grapevine fields. We
will continue providing solutions that cater to the needsof the U.S. growers.
NAI’s mainstay products

Nichino America, Inc.

Fungicide
Miticide
Insecticide
flutolanil
fenpyroximate
buprofezin(CONVOY in the U.S.) (FujiMite in the U.S.) (APPLAUD in the U.S.)

Herbicidepyraflufen-ethyl(ET in the U.S.)

Capital: 700,000 U.S. dollars
Founded: March 7, 2001
Number of employees: 44 (as of the end of September 2018)
Operating results: 65 million U.S. dollars in net sales, 7 million U.S. dollars
in operating income, and 5 million U.S. dollars in net income(for the fiscal year ended September 2018)

CSR REPORT 201910

The Nihon Nohyaku Group Mission
The Nihon Nohyaku Group Mission

Corporate GovernanceCorporate Governance Diagram(Basic Approach)*

Governance Committee

Board of Directors

Board of Corporate Auditors

Accounting Auditor

President

Corporate Governance1. Corporate Governance Guidelines

General Meeting of Shareholders

Internal Audit Department

Nihon Nohyaku aims to be a company that earns the trust of its
shareholders, customers, employees, business partners, local
communities, and various other stakeholders. To this end, thecompany shall endeavor to constantly maintain an optimal
system of corporate governance in line with the basic approach
set forth below, believing that it will facilitate sustainablecorporate development and enhance medium- to long-term
corporate value.
1. The Board of Directors shall establish and uphold the Basic
Policies and Action Charter, which every officer andemployee of the company shall hold in common and whichshall govern every business activities of the company.
2. Nihon Nohyaku shall honor the rights of its shareholders. It
shall endeavor to prepare an environment whereinshareholders can exercise their rights appropriately, and tosecure substantive fairness for shareholders.
3. Nihon Nohyaku recognizes the importance of its social
responsibility and public mission. The company shall workwith stakeholders as appropriate in order to foster a
corporate culture conducive to wholesome business
operations underlined by steadfast self-discipline.

4. In order to earn the trust of its stakeholders and thecommunity and further enhance its corporate value, Nihon
Nohyaku shall set compliance with laws, ordinances, andcorporate ethics as its cornerstone, and aim to ensuretransparency and fairness in decision-making, and construct
an aggressive system of corporate governance to facilitate
swift and bold decision-making that is premised on such.
5. Nihon Nohyaku recognizes the importance of the ecologicaland social challenges associated with sustainability. The
company shall work to fulfil its social responsibility as acompany that deals in chemical substances, and enhance
its corporate value.
6. Nihon Nohyaku shall ensure a diverse balance of viewpoints
and values, and pursue diversity with a view to achieving
sustainable development.
7. In order to prepare a foundation for constructive dialogue
with stakeholders, Nihon Nohyaku shall separately establish
a Disclosure Policy; moreover, the company shall promote
appropriate disclosure of company information, including
information on non-financial operations, and transparency inits corporate management.
8. Nihon Nohyaku shall engage in constructive dialogue withstakeholders so as to contribute toward its sustainable
development and the enhancement of its medium- tolong-term corporate value.

We share these Guidelines throughout the entire Nihon Nohyaku Group.
* Nihon Nohyaku Corporate Governance Guidelines (drafted: November 13, 2015; enacted: December 22, 2015; and revised: November 13, 2018) (Excerpt)
https://www.nichino.co.jp/corporate/page_10060.html

Nihon Nohyaku examined the necessity of revisions tothese Guidelines in consideration of the Corporate
Governance Code of the Tokyo Stock Exchange (“CGCode”) revised on June 1, 2018. As a result, we
determined that, while the basic approach does notneed to be revised, two points on the right need to berevised in accordance with the CG Code. Accordingly,
these Guidelines were revised on November 13, 2018.

Revisions to the Corporate Governance Guidelines
1) Clarification of the policy on reduced cross shareholdings:
CG Code [Principle 1.4]
Clear statements were added to the effect that those shares heldby Nihon Nohyaku under cross shareholdings that are obviously
no longer in line with our holding policy shall be promptly sold off.
2) Clarification of the policy and procedures for the dismissal ofmanagement executives: CG Code [Principle 3.1]
Clear statements were added to the effect that the GovernanceCommittee, the advisory body to the Board of Directors,
deliberates and reports the appropriateness, etc., of theprocess, reasons and other matters for dismissing a Director
or a Corporate Auditor of Nihon Nohyaku upon a consultation
request from the Board of Directors.

2. Corporate Governance Diagram

We have established “Basic Principles of the Nihon
Nohyaku Group” as the base for all our activities. On thebasis of the “Nihon Nohyaku Group Action Charter” andthe Group Vision, both in accordance with the basic
principle, we have established a corporate governancesystem to become a group of companies earning thetrust of various stakeholders (see diagram on nextpage).
In establishing the system, we complied with themeaning and spirit of the corporate governance code,
which has been incorporated into the Securities Listing
11

CSR REPORT 2019

Regulations of the Tokyo Stock Exchange in Japan, andestablished the “Nihon Nohyaku Corporate Governance
Guidelines” to follow.
Nihon Nohyaku and the Group companies report to
the Compliance Committee and the Group ComplianceCouncil on the status of compliance with laws andregulations and various internal regulations.
In addition, Nihon Nohyaku and the Group companies
report to the Risk Management Committee and theGroup Risk Management Council on risk management
issues, etc., after identifying their respective risks.

Management Committee
RC Promotion Committee

Compliance Committee

Risk Management Committee

Nihon Nohyaku has established the “Governance Committee” as the advisory body to the Board of Directors to further improve ourGovernanceCommittee corporate governance.
The Governance Committee deliberate and reports the appropriateness, etc., of the process for appointing and dismissing candidates
for Director or Corporate Auditor of Nihon Nohyaku, their qualification and reasons for appointment/dismissal, the independence standards
for appointing independent officers, evaluations of the overall effectiveness of the Board of Directors, the officers’ remuneration system andother matters upon a consultation request from the Board of Directors.
In principle, a majority of the members of the Governance Committee shall be independent officers.
The Board of Directors, upon receipt of the reports from the Governance Committee, shall select candidates for Director and determine
the officers’ remuneration system, etc.
Governance Committee meetings were held four times in FY2018.

Message from our External Directors
Activity Report from Independent Officers
The steady supply of food is put at risk following an increase in the global
population, global warming and other factors. Under such circumstances,
Nihon Nohyaku is dedicated to promoting safe and reliable agrochemicals,
thereby supporting stable supply of food and making a wide-ranging
contribution to agriculture as a whole.
To this end, Nihon Nohyaku has formulated the Basic Principles and theAction Charter and established a robust corporate governance system with
its standing as an essential part of society in mind. Realizing a robust
corporate governance system requires us to share the Basic Principles,
thoroughly understand and enforce the company’s Action Charter, build andmaintain a compliance system, and ensure communication (atmosphere of
Yasunori Matsui
openness) within the workplace. In this regard, the Board of Directors
External Director
meetings of Nihon Nohyaku allow open and energetic discussions.
(Governance Committee Member)
My strengths lie in accounting (currently certified public accountant
examiner). As an External Director, I have proactively contributed to
management decisions including the maintenance of our business foundation and important businessactivities, among others, from objective and social perspectives and the standpoint of a representative ofshareholders, based on my expertise and a broad range of accumulated insight on management. As forgovernance activities, I have provided reports and advice mainly on selection and remuneration ofcandidates for officer, and evaluations of the effectiveness of the Board of Directors, as a member of theGovernance Committee, the advisory body to the Board of Directors.
Nihon Nohyaku aims to become an outstanding, global R&D-focused agrochemical enterprise with oursolid management foundation. In steadily expanding overseas, the company will need not only tocontinuously create new agrochemicals backed by research and technologies but to secure and foster
new human resources. Overseas expansion also entails profitability boost through an efficient global
strategy to achieve better consolidated operating results.
At the agricultural frontline, farmers are diligently and earnestly working every day to maximize harvests
and improve their quality. To live up to their expectations, Nihon Nohyaku must continue growing as acompany always trusted by stakeholders and society. As an independent officer, I am committed toproactively fulfilling my duties.

CSR REPORT 201912

Responsible Care activities

Responsible Care activities supporting sustainable development

Supporting sustainable development

3. Management System

The Nichino Group has acquired the following certifications for the management system and is working tocontinuously improve its operations.
International Standards

As part of Nihon Nohyaku’s major CSR activities, we are engaging in Responsible Care (RC) promoted by the
global chemical industry. In undertaking RC activities, the Nichino Group has established the RC Mid-Term Targets andis systematically carrying out the activities based on the RC promotion policies established by each of our domestic
companies. This initiative also leads to realizing the SDGs.

ISO9001(Quality Management System)
ISO14001(Environment Management System)

Nichino Service Co., Ltd.

OHSAS18001(Occupational Safety & Health Management System)

Nichino Service Co., Ltd.

Nichino India Pvt. Ltd.
Nichino Chemical India Pvt. Ltd.
Sipcam Nichino Brasil S.A.

Sipcam Nichino Brasil S.A.

RC encompasses voluntary activities wherein each company handling chemical substances secures “theenvironment, safety and health” and publishes the results of its activities, maintaining a dialogue and communication
with society regarding all its processes, ranging from R&D through manufacturing, sales, logistics, use, and final
consumption, to the disposal and recycling of the chemical substances. We have six items of implementation for
Responsible Care, namely “RC codes”, consists of “Environmental Protection”, “Occupational Safety and Health”,“Process Safety /Disaster Prevention”, “Logistics Safety”, “Product Stewardship (Chemical Materials and Products
Safety)” and “Communication with Society” in Japan, we work to improve activities through the continued
implementation of the PDCA (Plan→Do→Check→Act) cycle.
This is an initiative that the global chemical industry is integrally promoting to safely manage chemical products overtheir life cycles through its activities, such that chemical products can contribute to improving the quality of life andsustainable development.

1. RC Promotion Diagram 2. RC Global Charter
In 2014, we became a signatory to the RC Global
Charter and are integrating the initiatives outlined in the
Global Charter into the RC Mid-Term Targets for the
Nichino Group. As of the end of January 2019, the RC
Global Charter has been signed by 580 companies
around the world. The ICCA*maintains a list of
signatories on its website.

ISO17025

Nihon Ecotech Co., Ltd. (Osaka Analysis Center)(General requirements for the competence of testing and calibration laboratories)

4. RC Mid-Term Targets and Activity Results/Plans
1) About the Nichino Group RC Mid-Term Targets (FY2016-2020)
RC Activities

RC Mid-Term Targets

General1. Maintain and expand Quality, Environment, and Occupational Safety & Health Management Systems
2. Enrichment and expansion of RC activities
3. Education of RC to overseas sites, introduction of RC methods into plants which has not introduced
ISO management system yet

Occupational Safety & Health,
Process Safety & Disaster Prevention

1. Achieving zero traffic accident during work/commuting, and maintaining zero accident causing lost worktime
2. Maintaining zero serious accident on the production equipment
3. Visualization of risk assessment methods

Environmental Protection

1. Reduction of 1% or more per year of energy consumption unit*1 and reduction of CO2 emissions bypromoting energy saving
2. Participation in Fun to Share*2 activities of the Japanese Ministry of the Environment (JME)
3. Maintain and expand zero emissions*3
4. Green purchasing rate of 95% or higher for office consumables and designated products
5. Strengthening, maintain and expand green procurement standards for raw materials and ingredients
6. Continuing initiatives for a low-carbon society (plan based on status of nuclear plants andgovernment policy)* International Council of Chemical Associations

RC Global Charter

Responsible Care Organization Diagram

Logistics Safety

President of Nihon Nohyaku
RC Promotion
Committee

Nichino India Pvt. Ltd. (Balanagar)
Nichino Chemical India Pvt. Ltd. (Humnabad)

What is Responsible Care (RC)?

Under our corporate governance system, the RC
Promotion Committee governs the RC activities of theentire domestic Nichino Group, which are promoted by
five panels (figure below). We participate in the JCIA RC
Committee and have registered four domestic
consolidated subsidiaries with the committee as affiliatecompanies. The Environmental Safety Department of
Nihon Nohyaku conducts annual RC audits of all
business sites of domestic Group companies.

Company name (applicable office)Safety Promotion Panel

Product Stewardship(Chemical Materials & Product Safety)

1. Develop environmental and safety-conscious products and field testing, considering environment
preservation and worker safety
2. Centralized management of safety information on chemical substances and appropriate provision todomestic and overseas subsidiaries
3. Improvement of product quality and thorough management

Communicating with Society

1. Creation of RC reports (in Japanese and English) on level with CSR reports and receiving thirdparty validation
2. Establishment of comfortable environment around business sites interacting and cooperating withthe local communities
3. Participation in and promotion of activities for towards VISION 2025 of Japan Crop Protection
Association (JCPA)

Environment Management Panel
Safety and Health Supervisors Panel
Quality Management Panel
Poisonous Material Management Panel

1. Continuing zero serious logistics accident (scattering/spillage)
2. Enhancement of logistics conference with logistics companies*1 An index showing the efficiency of energy consumption that divides annual energy consumption by figures related to business (for example production amount, officesurface area, sales volume, etc.). A lower energy consumption unit indicates better energy consumption efficiency.
*2 National public movement to address global warming promoted by JME.
*3 The final landfill amount of waste shall be 1% or less of the volume generated.
(Original)

13

CSR REPORT 2019

CSR REPORT 201914

Responsible Care activities supporting sustainable development

Responsible Care activities supporting sustainable development

2) FY2018 Activity Results and Internal Evaluation
We actively engaged in activities aimed at achieving our Group Vision and the third year benchmarks for our RC
Mid-Term Targets.
FY2018RC Activities

GeneralMajor plans

Results

1. Considering RC activities with focus on SDGs

1. Formulated the FY2019 RC promotion policy with focus on SDGs.

1. Maintaining zero accidents with workdays lost, 1. One accident causing lost worktime occurred. Zero trafficand conduct education and training aimed at
accidents has not been achieved (38 accidents in the previous
achieving zero traffic accidents during work
year→37 accidents).
and commuting
Conducted extraordinary audit at Nichino Service Fukushima
Occupational
Plant. Conducted safety education at each plant and promoted
Safety & Health,initiatives for risk prediction (so-called KY and potential nearmisses).
Process Safety
2. Zero serious accidents in production facilities has been achieved& Disaster 2. Conducting maintenance and inspections tokeep zero serious accidents at production
continuously.
Prevention
facilities
3. Visualizing risk assessment corresponding to 3. Provided information concerning revisions to laws andthe revised Occupational Safety and Healthregulations to the Group companies and plants and conducted
Law in Japanrisk assessment.
1. Promoting efficient energy consumption (goal: 1. Energy consumption unit: Nihon Nohyaku -0.3%, Nichino Service
reduction of energy consumption unit 1% or+1.5%.
more per year of energy consumption),
Nichino Service was recognized for excellence in energy
continuing to consider evaluation method forconservation (S Class) for a third consecutive year by JMETI.
energy consumption efficiency, continuing
CO2 emissions: Total for Nihon Nohyaku and Nichino Service
evaluation of consumption unit based on form
-3.6%.
of business and reduce CO2 emissions
2. Green purchasing rate at 99.5% (previous year: 99.3%); green
2. Maintaining green purchasing rate of 95% orhigher and improving green procurement rate
procurement rate at 91.2% (previous year: 94.6%).
Environmental
3. Promoting 3Rs*2 for waste reduction and3. Waste amount decreased by 10%.
Protection
Zero emissions: Nichino Service Saga Plant continues to meet themaintaining and expanding zero emissions
goal for a 15th consecutive year and Kashima Plant andFukushima Plant for a fifth consecutive year.
4. Continuing initiatives for a low-carbon society 4. Questionnaires continued on “Number of times of one pot dish”
and “Energy conservation that can be done at home”*4.
(Locavore*3) and consider Fun to Shareinitiatives
5. Grasping energy conservation goals and status 5. Started surveys on India and Brazil.
of energy conservation activities of local
governments of overseas Group companies

FY2018Page

RC Activities—

1. Continuing to eliminate PRTR*8 inert ingredients 1. Nine new products not containing NPE have been launched. The
in new products Substituting 50% of NPE*9 in
NPE substitution study for existing products is being continued.
existing products (continue non-use of NPE in
new products)
2. Continuing appropriate management of
2. Revised the standards in response to inappropriate operation ofchemical substances and conduct necessary
chemical storage of Nihon Nohyaku Head Office.
Product
education
andtraining
Performed safety education at each plant.
Stewardship3. Conducting risk assessment Continuing
3. Conducted at each plant as planned and worked to prevent(Chemical
measures to prevent accidents due to chemical
accidents.
Materials &substances
Products Safety) 4. Promoting SDS*10 information provision and
4. Provided environmental and safety information to domestic andsharing internally and with domestic andoverseas affiliates. Continued updating of SDS under GHS.*11
overseas subsidiaries in the Nichino Group
Introduced an automated SDS creation system.
5. Continuing to provide information on revisions to 5. Obtained information concerning revisions to laws and regulations
laws and regulations concerning chemicaland disseminated 130 pieces of the information to relevant
substances
departments.

25-27

1. Continuing to participate in community activities, 1. Continued participation in community activities by each plant.
collaborate with local communities to improve
Nichino Ryokka participated in “Street Cleanup Day”.
the environmental conditions around the plants
2. Considering expansion of activities to overseas
2. Provided the CSR report and RC-related information.
subsidiaries (such as RC information provision andsurvey on environment and occupational safety)
Communication
3. Issued the Japanese version in April and the English version in July.
3. Issuing the CSR reportwith Society
Included initiatives concerning smart agriculture and Women in
Agriculture Project.
4. Received JCIA inspection (March 2018).
4. Receiving JCIA inspection for the CSR report
5. Participating in and promoting activities toward 5. Participated in each committee of JCPA, took actions on therevised Agricultural Chemicals Control Act (draft) and continued
Japan Crop Protection Association (JCPA)
education to ensure proper use of agrochemicals.
VISION 2025 (improving product labels)

28-31

18-20

21-24

*8
*9
*10
*11

Major plans

Evaluations

Results

Page

Pollutant Release and Transfer Register
Polyoxyethylene nonylphenyl ether
Safety Data Sheet
Globally Harmonized System of Classification and Labelling of Chemicals

1. Conducting training to maintain zero serious
accidents (scattering/spillage) in logistics

Logistics
Safety

*1
*2
*3
*4
*5
*6
*7

15

1. Conducted training at each plant.
Continued achieving zero serious accidents caused by scatteringor spillage.
2. Strengthening of communication with logistics 2. Information exchange meetings have been held among the SCM
companies: holding regular logistics meetings
Department of Nihon Nohyaku, each Nichino Service Plant andwith transport and warehouse companies
related logistics companies.
3. Continuing to provide Yellow Cards*5 and White 3. Continued.
Cards*6
4. Decreased slightly due to an increase in small-lot shipments.
4. Promoting modal shift*7

Evaluation*1

25Internal evaluation of actual results:
Achieved
Partially achieved
Not achieved
Reduce, Reuse, Recycle
A composite word with the term “Local” and the term “-vore (meaning an animal that eats something)” meaning “people who eat local food”. It indicates an activity that
leads to a reduction of CO2 when combined with “local consumption of local products” and expanded consumption of “domestic agricultural and marine products”.
Questionnaires based on the “Lifestyle check 25” of “Family Energy Saving Dictionary (2012 version)” of the Energy Conservation Center, Japan, including our originalquestion items.
Cards which include concise indications of contact information, handling methods and precautions for prompt response to an accident during the transport of toxic
substances, poisons or hazardous materials/designated flammable substances stipulated by the Fire Service Act.
Cards unique to Nihon Nohyaku that indicate similar information as Yellow Cards for products for which the carrying of a Yellow Card is not required.
Switching the transportation of raw materials and products from trucking to rail freight and transshipment with less CO2 emissions.

CSR REPORT 2019

CSR REPORT 201916

Responsible Care activities supporting sustainable development

3) FY2019 Activities

General

1. Discussing CSR promotion system building.
2. Examining the next-term RC Mid-Term Targets (draft outline) taking SDGs and CSR into consideration.
3. Improving efficiency and accuracy of performance data calculation.

Occupational Safety &Health, Process Safety &Disaster Prevention

1. Conducting education and training to raise safety awareness and sensitivity to risks with the aim of achieving zerowork-related injuries and traffic accidents while commuting.
2. Conducting maintenance and inspections to maintain zero serious accidents at production facilities and periodic
training.
3. Conducting systematic risk assessment, SOP education, near misses and KY and indications at workplaces.

Environmental Protection

1. Promoting energy conservation (goal: reduction of 1% or more per year of energy consumption unit), continuing
study on the calculation methods for consumption unit, continuing the evaluation of consumption unit based on theform of business and reviewing energy sources with the aim of reducing CO2 emissions.
2. Maintaining green purchasing rate of 95% or higher, improving green procurement rate.
3. Promoting 3Rs and reducing waste by maintaining and expanding zero emissions.
4. Continuing initiatives for a low-carbon society (Locavore).

Logistics Safety

Product Stewardship(Chemical Materials &Product Safety)

Communication withSociety17

Major topics

CSR REPORT 2019

1. Conducting training to maintain zero serious accidents caused by scattering or spillage.
2. Holding regular logistics meetings with transport and warehouse companies.
3. Preventing problems through continued provision of Yellow Cards and White Cards and strengthening of theirlinkage.
4. Continuing to promote modal shift.
1. Continuing efforts to avoid using NPE and reducing PRTR inert ingredients in new products. Substituting 50% of
NPE in existing products (continue non-use of NPE in new products).
2. Continuing appropriate management of chemical substances and conducting necessary education and training.
3. Conducting risk assessment and continue measures to prevent accidents due to chemical substances.
4. Promoting SDS information sharing within the Nichino Group. Starting full operation of the automated SDS creation
system early.
5. Continuing to provide information on new regulations of chemical substances.
1. Continuing to participate in community activities, collaborating with local communities and improving theenvironmental conditions around the establishment.
2. Expanding activities to overseas subsidiaries (RC information provision, etc) .
3. Strengthening exchange with stakeholders through issuance of CSR Report 2019 and information provision on thewebsite.
4. Continuing activities toward the Japan Crop Protection Association (JCPA) VISION 2025.

1. Occupational Safety & Health1)	
Efforts to Create a Pleasant Workplace
and Protect Human Rights
In addition to promoting opportunities for women in
the workplace, our Group respects fundamental humanrights, including rejection and denouncing child labor,
and we proactively pursue globalization with a focus ondiversity. We believe mutual understanding and respect
are key in an environment that involves in dealing withvarious histories, cultures, and customs.
We promote personnel development that fosters tomaximize the unique capabilities and senses of each
employee. As a system to maintain and promote thehealth of our employees and support their work-lifebalance, we have established more programs thanrequired by law (table below). In FY2018, we promoted
volunteer leave for the Tokyo 2020 Olympic andParalympic Games in response to employee requests.
To respond to diversifying workstyles, we adopted aflex-time system, and in FY2019, we will establish amore employee-friendly environment by introducing
systems for working from home and shorter working
hours. In addition, we appointed a “Diversity Special
Mission Promotion Manager” to create a working
environment in which employees with diverse values(gender, age, nationality, workstyle, sexual orientation,
gender identity, etc.) are able to demonstrate theircapabilities at their full potential. Going forward, we
intend to proactively work on diversity.

3) Expenses for Safety & Health
We allocate necessary expenses each year to improvesafety and health, and towards mental healthcare.
The spending over the past five years are shown in
the figure below.
Expenses for safety and health

Vaccinations and mental healthIndustrial physician
Medical examinations(Million yen)

Major internal programs
Field

create a system that allows employees the opportunity toconsult with experts on mental health and other issues.
At offices without a dedicated industrial physician, we use
web conferencing systems to enable sessions with theHead Office industrial physician. We also use external
contractors to establish the Nichino Group Consultation
Desk, where employees and their families can consult on
all types of health issues, including mental health. To
address the stress check mandated by the government
in 2016 in Japan, we conducted group analyses andprovided sessions conducted by external specialists forall employees of certain departments with high levels ofstress. These efforts promote a better work environment
for our employees. We maintain a high level ofparticipation among applicable employees for the
specified health guidance and data health plan
sponsored by our Health Insurance Society.

Occupational Safety & Health, Process Safety & Disaster Prevention

RC Activities

Responsible Care activities supporting sustainable development

Occupational Safety & Health,
Process Safety & Disaster Prevention

40

Program

Maintaining and promoting
the health of employees

Full physical examinations for employees overage 40 and long-term sick leave

Support for work-lifebalance

Allocating refresh vacations and travel coupons
based on the number of consecutive years of
employment, Half-day paid leave, Family careleave, Volunteer leave, Childcare leave (“Mama
Papa Child Care Leave Plus”, Paid childcare leave
for the husbands of women on childcare leave,
Expansion of those applicable for child nursing
care leave, Company-sponsored provision ofallowance during childcare leave period, etc.),
Shorter working hours for childcare and shorter
working hours for expectant and nursing mothers

32.1
30

25.4

24.6

25.2

FY2015FY2016FY2017

23.6

20

10

0

FY2014FY20182) Promotion of Safety and Health Management4)	Working Condition Improvement at
Production Sites

All sites hold regular safety and health committee
meetings, through which we check on the status of goals,
action plans, and progress, and conduct risk
assessments. Through these meetings, we work toeliminate work-related injuries, create a pleasant work
environment, and improve our safety and health levels.
At the Head Office and Research Center, which bothhave more than 50 employees, we have contracts withindustrial physicians and mental health professionals to

To prevent worker health damage, fire or explosions,and other accidents related to chemical substances, atNichino Service we have outlined “Work Management
Standards for Handling Chemical Substances” andvoluntarily established Acceptable Operator Exposure
Limits for each chemical substance handled. We
conduct measurements regularly to manage thesestandards. This fiscal year, we established the new
exposure limits for two substances for our facilities.
CSR REPORT 201918

Responsible Care activities supporting sustainable development
Responsible Care activities supporting sustainable development

Occupational Safety & Health, Process Safety & Disaster Prevention5) Incident Rate*1 and Record of Zero-Occupational Accident*2

Record of Zero Occupational Accidents
Site
Nihon Nohyaku

Nichino Service

Total No. of Total hours(1,000 hours)
Days

0.20
0.15
0.09

0.10

0.04

0.05
0.00

0
FY2013

FY2014

Incident rate(without workdays lost)

FY2015FY2016FY20170.004
FY20182,309

1Osaka Office*4

791

479

0.1

Fukushima Plant

1,707

648

0.01

Kashima Plant

1,931

438

Saga Plant

6,940

2,916

0.001

We continued providing these companies with annual
training to ensure that they can take appropriate
measures in case of emergency in the same manner asin the branches and sales offices of Nihon Nohyaku.

1.25

0.002
FY2013

FY2014FY2015FY2016FY20174) Other Topics

0.006
FY2018

2. Process Safety & Disaster Prevention
1) Response to Earthquake Disaster

Nihon Nohyaku

Nihon Nohyaku Head Office gave training to ensuresmooth coordination between the Head Office and eachof the plants when a near-field earthquake occurs in theTokyo Metropolitan area. We established an emergency
response headquarters at the Nihon Nohyaku Head
Office and confirmed functions and roles, and tested thesafety confirmation system to validate its efficacy.

At the Head Office, we participate in joint firefighting
drills held by our building manager each year, and in
FY2018, we took the Standard First Aid Course.
At the Research Center, we conducted large-scaledisaster prevention training, including training for fire
reporting, and participated in firefighting skill
improvement training held by the local fire department.
At the Osaka Office, we conducted leak response
training on account of the site’s role as a logistics
center, in addition to disaster prevention training.

Direct-experience safety education (Nichino Service Saga Plant: July 20, 2018)

Nichino Ryokka, Nihon Ecotech, and AgriMart

Total for Research Center, Osaka Office, Nichino Service
JCIA members*1 A scale for indicating the severity of work-related injuries calculated using the formula [workdays lost/total work hours (per 1,000 hours)]*2 Record of No. of days and work hours without an accident with workdays lost.
*3 Referenced from FY2018 Survey on Trends in Work-Related Accidents (Office survey (offices with 100 or more employees) and general construction business survey)(May 7, 2018: MHLW).
*4 Includes figures for the Osaka Storage / Delivery Group of Nichino Service Saga Plant.
*5 A scale for indicating the frequency of accidents without workdays lost, calculated using the formula {number of accidents without workdays lost (persons)/total working
hours (per million hours)} (including accidents without workdays lost while commuting).

2) Safety Management of Facilities

Large-scale disaster prevention training (Research Center: November 2, 2017)

10

2,985

Research Center

Total for Research Center, Osaka Office, Nichino Service
Chemical industry (MHLW)*3
JCIA members

Incident rate(with workdays lost)

Occupational Safety & Health, Process Safety & Disaster Prevention

At domestic Group companies, unfortunately, there
was one accident with workdays lost (accident that
occurred while commuting for which the injured person
was not responsible; zero accidents in the previousyear) and there were seven accidents without workdays
lost (six accidents in the previous year).
The total incident rate concerning accidents withworkdays lost for the Research Center, the Osaka Officeand Nichino Service was below the average level for thechemical industry and JCIA members. The total incident
rate concerning accidents without workdays lost*5
remains low. We will continue to promote the preventionof work-related injuries as we aim for zero accidents.

Leak response training (Osaka Office: December 14, 2018)

Nichino Service
At each site, we conducted firefighting training andemergency situation training to address potential raw
material or product leaks caused by natural disaster or
accidents. Also, we provided direct-experience safety
education and implemented a campaign to strengthen
the ability to detect potential near misses (riskprediction) to improve sensitivity to risks.

The Research Center established the “4-4 Feel
Safety Day at Nihon Nohyaku” based on lessons
learned from past accidents and held a seminar given
by its General Manager concerning the theme. It also
provided a safe driving lecture to prevent automobile
accidents, a lecture concerning honeybees given the
recently growing number of sting accidents fromhoneybees for research use, among other themes, toraise safety awareness.

Safe automobile driving lecture (Research Center: June 20, 2018)

Emergency situation training (Nichino Service Fukushima Plant: September 6, 2018)

We conducted planned risk assessments andmandated inspections for facilities and equipment. We
monitor waste water based on voluntarily managed
standards and work to prevent waste water levels fromexceeding those standards. As a result, we had noserious water quality incidents, including serious facility
accidents or agrochemical leaks.

3) Training for Emergency
Topics are introduced on the right.
Standard First Aid Course (Head Office: June 19, 2018)19

CSR REPORT 2019

Firefighting training (Nichino Service Kashima Plant: May 9, 2018)

Lecture concerning honeybees (Research Center: September 19, 2018)

CSR REPORT 2019

20

2)	
Energy Consumption, CO2 Emissions,and Water Consumption

1. Input of Resources and Energy and Output of Products and Environmental Load
The following shows theamounts of raw materials,
energy and water used in ourbusiness activities, along withthe matters discharged in theprocess of production /products
consumption and disposal.
*1 The round brackets indicate comparisonswith the previous year, and the square
brackets indicate percentage points in theprevious year.
*2 Purchased electricity calculated as crude
oil equivalent.
*3 Amount of heavy oil, light oil, kerosene,
gasoline, city gas, LP gas, and purchased
steam are expressed in crude oil
equivalent.
*4 Total sum of tap water, well water, andindustrial water for Research Center,
Osaka Office, and Nichino Service Plants.
*5 Product amount = (technical grade
production amount) + (formulation
production amount) - (technical grade
amount used for formulation production)*6 Used emission factors were referred to the
Act on Promotion of Global WarmingCountermeasures.
*7 Includes data for Nihon Ecotech(Fukushima / Osaka Analysis Center)(Aggregation period: April 2016 – March2017).
*8 Containers and packaging amount ofagrochemical products for home andgarden use sold during the 2017 fiscal
year.
*9 Amount consigned to the Japan
Containers and Packaging Recycling
Association

INPUT

OUTPUT
Products*5

Raw material

12,938 t (124%)

17,814 t (103%)*1

Atmospheric emissions

Packaging material

Dust
NOx
SOx
CO2*6

Production
Circulated
use forproduction
126 t
(67%)

3,014 t (108%)

Energy (crude oil equivalent kl)
Electrics*2 3,651
Fuel etc.*3 1,998

0.9 t (15%)
7.5 t (43%)
0.6 t (43%)
10,259 t (94%)

Waste(100%)(94%)

Amount5,884 t (90%)
Rate of recycling 79% 86%
Final landfill
101 t (68%)

Production amount (t)Energy consumption (crude oil equivalent
CO2 emissions (t)Released
0.2 t (85%)
Transferred 45.3 t (86%)

1,000
13,101

Logistics

Mandatory contains and packaging*81.3t (101%)
Recycling*9
0.1t (93%)

Use/Disposal

Efficiency of Energy Consumption(Index with the level of
FY2010 being 100)

Index of efficiency ofEnergy Consumption*3

12,938
11,19912,000

10,545

11,404
8,000

4,000

6,774

9,830
5,606

0

244

FY2014

10,450

10,259

9,005
5,427

FY2015FY2016

5,780

90

91

FY2017

88

85
83

80

85

FY201870

FY2014FY2015FY2016FY2017

86

6,543

4,108

4,233

79
75
5,884
50

3,763
25

1,160
0

139

949
145

839
144

918
149

FY2014FY2015FY2016FY2017389

101

FY20180(3) Survey and inspection of waste disposal contractors
We outsource waste disposal to contractors capableof properly treat waste and continue on-site surveys
and inspections of the final landfill sites.

We have stored strictly highly concentrated PCB
waste and waste containing minimum amounts of
PCB*1, under strict leakage prevention system anddispose systematically in accordance with the PCB
Special Measures Act*2.

15

9.4
7.5
6.0

0

100
85

(4) Waste containing PCB85

FY201887

2,500

NOx (t)SOx (t)Dust (t)5890Nitrogen oxides (NOx) emissions derived fromexhaust gasses from boilers, etc., decreased by 9.7 tfrom the previous year thanks in part to changes in the
produced items and improved facility operating
conditions. Sulfur oxides (SOx) and dust emissions also
decreased, both being at relatively low levels. Exhaustgases are appropriately managed to comply with theexhaust level standard and other standards.

10

Rate of recycling (%)

7,500

89
89

Total waste (t)Recycled (t)Final landfill (t)10,0003) Emission to Atmosphere

Nihon Nohyaku
Nichino Service

The maximum figure for the
1%-reduction target

All plants separate waste and worked to reduce final
landfill by practicing the 3R (reduce, reuse, and recycleof waste) system. The final landfill amount from the
Research Center decreased following changes in thetiming of disposal of testing soil, and the Nichino
Service Fukushima Plant, Kashima Plant and Saga
Plant continuously achieved zero emissions. The rate ofrecycling* decreased from the previous year as a resultof a decrease in the amount of waste to be recycled
such as disposed paper and metal scrap.

250

17.3
93

500

5,649

20

93

(2) Reduction of final landfill

5,000

110

100

The amount of waste decreased by 10% from theprevious year following changes in the timing ofdisposal at the Research Center and changes in the
produced items at Nichino Service plants.

* Rate of recycling = recycled amount / (recycled amount + final landfill amount)

212

192

(1) Amount of waste

750

10,918293
168

Transported by
Railway
222 t (69%)
Ship2,084 t (104%)
Truck
25,004 t (92%)

Water consumption (1,000 m³))

16,000PRTR Substances*7

2. Environmental Impact
As specified business operators defined in the Energy
Conservation Act*1, Nihon Nohyaku and Nichino Service arepromoting energy conservation with the goal of lowering ourenergy consumption unit by 1% or more compared to theprevious fiscal year. Both of the companies failed to reach the
FY2018 targets (Nihon Nohyaku: 0.3% reduced, and Nichino
Service: 1.5% increased) due in part to changes in the
produced items and increased energy consumption for air
conditioning caused by the effects of weather. On the other
hand, Nichino Service was officially recognized for excellencein energy conservation (S Class) for a third consecutive year
under the Business Classification System of the Energy
Conservation Act*2. We also set standards according to thebusiness forms and began conducting efficiency of energy
consumption evaluations at other domestic Group companies
as part of efforts to optimize energy consumption.

* The CO2 emissions are calculated using the latest emission coefficient(published in November 20, 2018) and the following formula. However, as theCO2 emission coefficient of the power companies for April through September
2018 remains to be finalized, the figures for FY2018 are tentative and use thecoefficient for the same period of the previous year (the same below).
CO2 emissions (t) = Σ{consumption volume by type of fuel x energy conversion
coefficient by type of fuel (fixed) x CO2 emission coefficient by type of fuel(fixed)} + Σ{power consumption volume by power company x CO2 emission
coefficient by power company (variable)}

Waste water
Volume 233,000 m3 (140%)COD
6.0 t (82%)

Water*4 293,000 m3 (138%)

1) Efficiency of Energy Consumption

Due to changes in the produced items, energy
consumption (crude oil equivalent) decreased by 2.3%
from the previous year, and CO2 emissions* decreased
by 6.0%. Water consumption increased by 37.9% fromthe previous year.

4) Waste

Environmental Protection

Environmental Protection

Responsible Care activities supporting sustainable development

Responsible Care activities supporting sustainable development

4.0

3.2

1.0

0.8
0.4

FY2014FY2015

4.0
0.8

1.4

0.9

FY2017FY20180.6

0.4
FY2016*1 Refers to electrical device waste products that unintentionally containminimum amounts of PCB, manufactured after the termination of PCB
manufacturing.
*2 Abbreviation for the “Act on Special Measures concerning Promotion of Proper
Treatment of PCB Wastes”.

*1 Abbreviation for the “Act on the Rational Use, etc. of Energy”*2 A system under which business operators are officially recognized for excellence in energy conservation (S Class) if they meet the nonbinding targets defined by the Japanese
Government (annual reduction of 1% or more on average) or the benchmark targets (e.g., the figure of energy consumption in the manufacture of iron and steel with blast
furnaces, divided by the amount of crude steel should be 0.531 /t or lower for the iron industry, with blast furnaces) in the past five-year average of the year-on-yearchanges in the efficiency of energy consumption to be reported on a periodic basis to the government. The operators are categorized into four ranks: S, A, B and C.
*3 Index for each fiscal year when the efficiency of energy consumption for FY2010 is set as 100.

21

CSR REPORT 2019

CSR REPORT 201922

Responsible Care activities supporting sustainable development(Cumulation period: April 2017 - March 2018)

Both the released amount*3 (down 15.1% YoY) and thetransferred amount*4 (down 14.4% YoY) decreased fromthe previous year due to changes in the produced items
and other factors.
Released (t)Transferred (t)

2.0
1.5

80
55

50

49

43

48

53

45

1.0
0.5
0.0

60
40

0.19
2011

0.17
2012

0.18
2013

0.17
2014

0.18
2015

0.20
2016

0.17
2017

Released and transferred amount: Top 10 substances by amount
Rank
Current Y Previous Y
1
1
2
2
3
3
4
4
5
8
6
5
6
5
8
11
9
5
10
13

20
0

(April to March)*1 PRTR is an abbreviation of Pollutant Release and Transfer Register, defined
under the Act on Confirmation, etc., of Release Amounts of Specific Chemical
Substances into the Environment and Promotion of Improvements to theManagement Thereof.
*2 Scope of calculation includes Nihon Ecotech Fukushima and Osaka Analysis
Center.
*3 Release to atmosphere, public waters, soil, and landfill.
*4 The amount of substances including those transferred to sewer works and forwhich disposal was consigned to a waste disposal contractor (excluding theamount shipped as commercial products).
*5 All agrochemical technical grades.

Rank
Current Y Previous Y
1
1
2
2
3
5
4
3
5
4
6

10

7
8
9
10

9
7
14
11

Released amount
Substance namen - Hexane
XyleneTriethylamine
Ethylbenzene
Fenitrothion*5
1,2-Dichloroethane
Buprofezin*5
Hydrazine
Isoprothiolane*5
Diazinon*5
Other
Total

(kg)
91.0
18.0
14.0
12.0
9.0
7.0
7.0
4.4
2.0
1.4
1.6
167.4

Transferred amount
Substance name(t)

Chlorobenzene
XyleneEthylbenzene
n - Hexane
Acetonitrile
Poly (oxyethylene) = alkyl ether (limited tothose having 12 to 15 carbon atoms in thealkyl group and said compounds)
Flutolanil*5
Oxine-copper*5
Fenitrothion*5
Buprofezin*5
Other
Total

23.2
5.9
4.3
4.0
2.4
0.8
0.8
0.5
0.4
0.3
2.7
45.3

3. Environmental Accounting
1) Environmental Protection Costs
Total facilities investments related to upgrading toenergy efficient equipment and new productdevelopment were 213 million yen (up 173.5% fromprevious year). On the other hand, personnel, facility
maintenance, and related expenses*1 were 753 million

1. Costs
withinbusinessarea(1) Pollution prevention

yen in total (down 2.9% from previous year). Of those
expenses, 500 million yen (66% of expenses) wererelated to environmental protection spending within R&D.
Environmental protection is one of the important social
responsibilities of a corporation, and we will continue toallocate appropriate expenditures for investments andexpenses.

Details of major initiatives
Prevention of air pollution, water pollutant, bad odor

Investments

Expenses

28 (+22)129 (+7)(2) Global environmental protection Prevent global warming by energy conservation

103 (+56)

2 (-7)(3) Resource recycling

Industrial waste, general waste disposal

13 (+13)112 (+1)

2. Upstream/Downstream

Cost of switching to environmental conservation type raw materials

00

3. Management activity

Research Center, office neighborhood greenification, environmental load monitoring0

10 (-3)

4. R&D costs

R&D for products contributing to environment protection

69 (+45)500 (-21)

5. Social activity costs

Donations/support for organizations involved in environmental protection

0

6. Environment damage response costs

Pollutant recovery costs

0

Total

213 (+135)00753 (-22)*1 Expense amounts: Maintenance and management expenses for facilities used for environmental measures as well as personnel and other expenses related to otherenvironmental measures (including depreciation).
*2 ( ) indicates change from previous fiscal year, no figures indicated if unchanged.

23

CSR REPORT 2019

Energy consumption and CO2 emissions, among
others, decreased following changes in the produced
items and other factors.

Effectitem

DetailsYoY Changechange(%)

Item (unit)
Dust

(t)

-5.1

-86

NOx

(t)

-9.7

-56

SOx

(t)

-0.9

-60

COD

(t)

-1.6

-21

(t)
Greenhouse effect gas CO2
Globalemissions
Energy (crude oil equivalent) ( )environmental
Energy/water usage
protection
rates
Water
(1,000 m³)

-659

-6

Air/water
Pollution
pollutantprevention
emissions

Resource
Waste
recycling

-131

-2

+80

+38

(t)

-659

-10

Final landfill amount (t)

-48

-32

Amount4. Activities towards Green Purchasing and Green Procurement
Nihon Nohyaku is enrolled in the Green Purchasing
Network, through which we proactively promote green
purchasing in tandem with our domestic Group
companies. Our green purchasing rate for our entire
Group is 99%, surpassing our goal (95% or higher). We
will continuously promote the purchase of officesupplies and other items taking into consideration not
only quality and prices, but also environmental
friendliness.
The green procurement rate concerning raw
materials, subsidiary materials, and other materials,
decreased from 95% in the previous year to 91% in thisfiscal year due to an increase in the number of procured
items. We will continue to improve our green
procurement rate.

The Nichino Group green procurement standards

Each green supplier of chemical materials should satisfy the conditionA) and, in addition, satisfy at least one of conditions B1) to B3).
A) P roviding SDS (Safety Data Sheet) or equivalent GHS-related information.
B1) Actively promoting environmental conservation*1.
 uppling products with less environmental impact and without
B2) S
highly hazardous substances*2.
 ot using any highly hazardous substances during processingB3) N
and manufacturing*2.
*1*2

Activity examples: acquired environment management system
certification, involved in Responsible Care activities, participating in
national environmental protection activities (Fun to Share, etc.),
issuing environmental reports, acquired environmental ranking
Hazardous substance examples: POPs, substances applicable to
PRTR (excluding agrochemical active ingredients), substances
applicable to major regulations in other countries (e.g.: SVHC in theEU), chemical substances not allowed in foods, etc.

5. Efforts towards Creating a Low-Carbon Society

Environmental Protection Costs (Unit: million yen)*2
Classification2)	Environmental Protection Effect:
Improvement Achieved throughInvestments and Expenditures forEnvironmental Protection

Environmental Protection5)	PRTR Law*1 Applicable Hazardous SubstanceReleased and Transferred Amount*2

Responsible Care activities supporting sustainable development

Environmental Protection

We have been taking part in the Action Plan for Low-Carbon Society led by the Japan Business Federation(Keidanren) since 2010 and are promoting the following initiatives in addition to CO2 emissions reductions.

1) Supplying Renewable Energy
We installed a solar power generator in Nichino
Service Saga Plant. All power generated by the facility(1,678 MWh) is sold to power companies, which
contributes to CO2 emission reductions by reducing theoutput coefficient of the power company.

2) Promoting Locavore
The Nichino Group companies registered their activity
declarations with “Fun to Share” promoted by the
Ministry of the Environment, on a plant or company
basis, using “Locavore”, our original social contribution
activity, as the common word in the declarations. We
hold a contest in the winter to see who makes a one pot
dish (nabe) most often (December through February).
The contest is aimed at reducing food mileage throughincreased consumption of agricultural and marine
produce with a high rate of domestic self-sufficiency.
The contest drew saw 428 participants this time. They
cooked a one pot dish 8.7 times on average, and thewinner cooked it 80 times. In the summer, we again
conducted a survey on “Energy conservation that canbe done at home”, which had 566 participants (August).
Both of the events drew a larger number of participants
compared withthe previous
Contest for number of times of one pot dishyear andParticipants
Total number of times of cooking
contributed to428 6,000
450
raising
394
366
350
341
awareness of
3,793
3,708
3,422
300
4,000
3,191
CO2 emissions
2,864
reduction during
150
2,000
the transport of88
foods and at
0 844
0
home.
FY2010 FY2014 FY2015 FY2016 FY2017 FY2018

CSR REPORT 201924

Logistics Safety, ProductStewardship (Chemical
Materials & Product Safety)

2) New Products in Consideration of the Environment, Safety and Health1) Safety Management During Transport

2) Promotion of Modal Shift

During the transport of toxic substances, poisons, or
hazardous materials/designated flammable substances
stipulated by the Fire Service Act, we ask drivers tocarry Yellow Cards, which include a concise indicationof contact information, handling methods, andprecautions for implementing first aid in the event of an
accident. To account for the difficulty in using Yellow
Cards for mixed shipments or for small-lot shipments
after reloading cargo at relay points, we use Container
Yellow Cards, which shows the guideline number andUN number on the outside of the container to indicate
emergency response measures. These are bothmeasures recommended by the JCIA. We created
White Cards in FY2010 and have been using them toindicate similar information as Yellow Cards on the backof invoices for products for which carrying a Yellow Cardis not required, thereby striving to promote logistics
safety.

While the transported amount of products andintermediate agents was almost flat from the previous
year, CO2 emissions related to logistics were 2,163 t(down 7% YoY) due to shorter transport distances bytruck. To reduce CO2 emissions, we have worked on amodal shift to convert the method of transport mainly
between Nichino Service plants from trucking to railway
or marine freight. However, our modal shift rate* in
FY2018 was 8%, down 1 percentage point from theprevious year, due to a decline in the railway freightratio. We will continue to focus on transport thatemphasizes this modal shift.
* Modal shift rate (ratio of railway freight and marine transport) = (railway freightand marine transport amount) / (total transport amount) x 100

Transport amount (1,000 t/km)

Modal shift rate (%)

100,000 91,740
75,00012

010
16,380

FY1990FY201011
9

914,384 13,762

18,5889,288

12
812,855FY2014 FY2015 FY2016 FY2017 FY2018

60

2. Product Development Considering Environment / Safety and Animal Welfare1) Development of Safe Agrochemicals
Agrochemicals used today must not only protect
crops from pest infestations and weeds, but also must
give due consideration to the impact on humans and theenvironment. We conduct R&D with the goal ofdeveloping agrochemicals from the perspective of theenvironment, safety and health. We have beenpromoting an accelerated and multifaceted approach tosafety research during the exploratory research phase.
This not only enables an early evaluation of various
risks, but also leads to increased awareness regarding
the environment, safety, and animal welfare. We also
have all domestic Group companies maintain a system
to monitor revisions to laws and regulations to ensurecompliance.
25

CSR REPORT 2019

Parade development
and its future outlook

Parade is a long-awaitedgeneral fungicide agent thatcovers a broad range ofcrops and diseases. Thanks
to the cooperation of
relevant departments, we
could commercialize andlaunch the product quickly
after registration.
The fungicide is favorably
Kazuhiko Kikutake
received by users, and I
General Manager of thebelieve that it helps Nihon
Development Dept.
Nohyaku grow further.
(assumed the position in
We are currently working to
expand the application of the December 2018)
product to soil drenchtreatment for cell seedlings as a laborsaving control
method, whereby increasing the value of Parade
even further.

18

50,000

Our original
invoice with theWhite Card

Voice

24

20

25,000Nihon Nohyaku acquired agrochemical registrationsof “Parade® 20 Flowable” and “Parade® 15 Flowable”,
our proprietary fungicides using pyraziflumid as anactive ingredient, on March 30, 2018, and launchedthem in April 2018.
Parade 20 Flowable is a fungicide mainly used forbeans, vegetables and flowers, and Parade 15
Flowable is used for fruit trees. They demonstrate highefficacy against a wide variety of diseases including
gray mold, stem rot, powdery mildew, scab (a majordisease of apples), alternaria blotch, brown blotch, ring
rot and brown rot.
These products are effective against a broad range of
diseases owing partly to the effect of inhibiting the
respiration of fungi (SDHI: succinate dehydrogenase
inhibitor). They are also excellent in sustainability ofeffects and are usable in many crops even the day
before harvesting because of the
low risk of harmful effects on theapproved crops. Drawing on thesecharacteristics, we are committed
to contributing to disease control ofvarious crops.

Developer’s

Logistics Safety, Product Stewardship (Chemical Materials & Product Safety)

Parade 20 Flowable (for vegetables)
Parade 15 Flowable (for fruit trees)

1. Logistics Safety

Invoice

Responsible Care activities supporting sustainable development

Responsible Care activities supporting sustainable development

As for R&D, in addition to performance evaluations as
agrochemicals, we also conduct safety evaluations by
testing over 30 items based on the latest science,
including toxicity, environmental impact and residual
effects. Then, products go through strict screening ineach country before they are registered andcommercialized. To ensure the safety of inert
ingredients in agrochemical agents, we are also
conducting the planned response for European
regulations for new and existing products. Furthermore,
we are working to create new synergy through thecapital and business alliance with ADEKA Corporation
by drawing on strengths of both companies.

3. Management of Safety Information on Raw Materials and Products1)	Management of Safety Data Sheet(SDS) for Globalization
We have created the SDSs for approximately 700
items based on the latest JIS standards and provided it
both inside and outside Nihon Nohyaku with the goal of
ensuring the safe handling of our agrochemicals andother chemical products, and preventing work-related
injuries and other accidents. Also, we are developing asystem that allows relevant departments at the
Research Center and Nichino Service to browse andutilize the SDSs for all raw materials and products andother information via our internal LAN. Overseas, we are
required to address GHS response requirements
outlined in laws related to chemical substances in theEU, Korea, China and the USA. We are not only
cooperating with our Group company Nichino EuropeCo., Ltd. to continue revising the SDSs for the EU into
REACH*1-compliant the SDSs based on the latest CLP
regulations*2, but also responding to the regulations ofeach country and other globalization requirements. We
introduced an automated SDS creation system at theend of FY2018 to refine and streamline operations tocreate and revise SDS.
*1 Registration, Evaluation, Authorisation, and Restriction of Chemicals: A
comprehensive system for registration, evaluation, approval and restriction ofchemical substances in Europe*2 Regulation on Classification, Labelling and Packaging of substances andmixtures: The EU Regulation that stipulates methods of classification, labellingand packaging of chemical products. Classification methods based on GHS
have been adopted and have gradually been applied since December 1, 2010.
There is a need for product labels, SDS, etc., for chemical substances
distributed within the EU, to conform to the CLP regulations.

What is GHS

An abbreviation for Globally Harmonized System ofClassification and Labelling of Chemicals, which wasrecommended by the United Nations in 2003. The outline is
as follows:
1.	Classifying the hazards of chemical substances and their mixturesin accordance with a methods and definitions that are globallycommon.
2.	The hazards are displayed on product labels and SDSs using
standardized hazard symbols / signal words, etc.
3.	Making the hazards of chemicals easy to understand by the global
standardization of these classifications and labeling.

CSR REPORT 201926

Responsible Care activities supporting sustainable development

Logistics Safety, Product Stewardship (Chemical Materials & Product Safety)

5.

opinions or requests.

In FY2018, we released nine new NPE-free products.
We also are working to reduce the use of PRTR
substances during new product development.

1) Customer Consultation Service

2) Disclosure of Business Information

We have established consultation desks based on
product fields. We accept inquiries from customers
regarding domestic agrochemical products via
telephone or via the inquiry form on our website. We
also accept general questions and inquiries fromconsumers regarding agrochemicals. By providing
relevant information, we hope to increase
understanding of our agrochemicals. Note that thehandling of termiticides and wood preservative products
has been transferred to AgriMart Corporation in
December 2018.

To promote understanding of our business activities
by as many stakeholders as possible, we work toprovide accurate and timely information disclosure andto enhance disclosed information. We continuously
review information content and update information asnecessary.

Consultation desk

Response to Poisoning and Environmental Accidents

We provide the Japan Poison Information Center(JPIC) with SDS and other information for responding topoisoning accidents related to our products. This
information is beneficial in handling inquiries frommedical institutions to the JPIC in the event of an
accident. During this fiscal year, there were 11 inquiries
concerning Nihon Nohyaku’s products made to the

1. Distributing Information to Society
We conduct the following with the goal of providing beneficial and accurate information. Please contact us with any

4. Eliminating NPE and Reducing PRTR SubstancesPoly(oxyethylene) nonylphenyl ether (NPE) is
categorized as an endocrine disrupting substance that
degrades into the environment, and we have eliminated
NPE as an inert ingredient in new products and areprogressing with the elimination of NPE from existingproducts.

Responsible Care activities supporting sustainable development

We work to ensure product quality and safety in every
stage of our business activities, from R&D to
production, sales, logistics, use, and final consumption
as well as disposal and recycling. Our Quality
Management Panel conducts detailed evaluations of
product quality, and for production Nichino Service
utilizes the ISO9001 management system to maintainand improve product quality. In addition, we continue toimprove the quality of pharmaceuticals under the GMP(production management and quality control standards)
management system for our production ofpharmaceutical raw materials.

We conduct risk management for product liability (PL)to prevent PL issues. We use the internal visualizationof response status for complaints received in relation to
our products to promote rapid and accurate response.
We received 26 product complaints in this fiscal year, adecrease of five complaints from the previous fiscal
year.

Communication with Society2)	Agrochemical/Chemical Substance
Quality Management

Communication
with Society

JPIC. We also received 10 direct inquiries for risk andhazard information. We promptly provide various typesof information to help improve product safety. During
FY2018, we had no environmental accidents relating to
Nihon Nohyaku’s products and no poisoning accidents
requiring official reporting under the Consumer Product
Safety Act.

Domestic agrochemical products
TEL. +81-3-6361-1414(TECHNICAL SERVICE & PROMOTION DEPT.)

Pharmaceuticals, Animal Health Care products
TEL. +81-3-6361-1418(PHARMACEUTICAL DEPT.)

Termiticide, Wood Preservative products
TEL. +81-3-5159-1711(AgriMart Corporation)(Weekdays, 9:00 am - 5:00 pm)



CS R Re po

Corpor

19-8, Kyobas

ate Soc
ial

ResponWebsite: https://www.nichino.co.jp/en/ (top page)

Overseas Group
company website(top page)rt 20 18

sibility Report

2018

Head Officehi 1-Chome (Kyobas
hi OM Bldg.),
Chuo-ku,Tokyo
104-8386+81-3h t t p : // w

TEL

6361-1400

Websiteww.nichino.co.jp/en/

We practiceGreen Purchasing.

In Sep.2014,
Nihon Nohyaku
received a
Development
Bankof Japan loan
based on theEnvironmentall
DBJ
y Rated Loan
Program.

005_065809

0383003.in

dd

A4 縦

2018/07/25

16:07:42

Archived CSR Reports and Responsible Care Reports(available on our website)

27

CSR REPORT 2019

CSR REPORT 201928

Responsible Care activities supporting sustainable development

2) Relationships with Stakeholders

1) Community Service
Nichino Ryokka Greenery Day
Nichino Ryokka has set its founding anniversary(June 1) as “Nichino Ryokka Greenery Day” and isundertaking initiatives to contribute to customers andlocal communities. In FY2018, Nichino Ryokka
participated in the “Street Cleanup Day”, a cleanup
activity promoted by the Chuo City local government ofTokyo, where 26 employees collected litter in theneighborhood of Nihonbashi-Kodenmacho where theHead Office of Nichino Ryokka is located. In addition,
Nichino Ryokka has been certified as a company that
promotes work-life balance by the Chuo City local
government. Going forward, the company is committed
to contributing to society through various activities.

Cooperation with the neighboring
irrigation association in the canal cleaning
Once a year we cooperate with the irrigation
association, which supports our field tests, in thecleaning of the canal near the Research Center.
Volunteers from the Research Center and the Nichino
Service Kawachinagano Center, together with membersof the irrigation association, raked out the dirt, mud andweeds that have piled up along the long water canalfrom the reservoir to the farmlands using equipment
brought from the centers. The work brings back theclean canal, and allows us to enter another field trial
season for the year in good spirits.

Acceptance of visitors for factory tours
and laboratory tours
In FY2018, the Research Center, Naganuma Nursery,
and the Nichino Service Plants were visited by 1,807
people. Visitors were provided a tour of our facilities aswell as explanations and seminars to promote
understanding of agrochemicals.

Transitions in site
visitors (people)

2,500
2,000

Research Center
Naganuma Nursery (Hokkaido)
Osaka Office*Nichino Service Fukushima Plant
Nichino Service Kashima Plant
Nichino Service Saga Plant

2,295
1,685

1,926

1,963

1,716

1,939

1,807

1,500
1,000
500
0

FY2007FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Communication with Society

2. Relationship to Society

Responsible Care activities supporting sustainable development

Communication with Society* Osaka Office includes figures for the former Nichino Service Osaka Plant until
July 2016.

3) Contributing to Society
Participation in the Project of JMAFF(1) Initiatives toward smart agriculture
Control with reduced workloads utilizing unmanned aerial vehicles

AI-based diagnosis and control support system

Nihon Nohyaku has established a system in which
unmanned aerial vehicles*, a promising technology for
reducing workloads, spray agrochemicals. The system
materialized after we acquired registrations of drone
spraying of the following agrochemicals: “Ippon 1 kg
Granule 75” and “Ippon D 1 kg Granule 51” (one-shot
application herbicides used in between rice planting
and 2.5 leaf stage) as well as “Tekken 1 kg Granule”,“Nitouryu 1 kg Granule” and “One Stage 1 kg Granule”(herbicides used in between 15 days after rice planting
and 4 leaf stage). We also pushed forward preparations
for the launch of “Tsurugi 250 Granule” planned in
FY2019 by conducting application tests using major
drone types. Application using drones expectedly
shortens labor hours of a weed control per unit area to
one third or less.

Since FY2017, Nihon Nohyaku has been involved ina research project of a web system equipped withfunctions such as making AI-based diagnosis of pest
infestations and proposing effective chemicals.
Additionally, in FY2018, we established a newconsortium called “Control Support System Study
Group”, and started developing a system that supports
the diagnosis and control of weeds and pest
infestations using smartphones. The system is targetedat providing functions that enable everyone to easily
manage a variety of weeds and pest infestations byfarm field with reduced workloads.

* Unmanned helicopters and multirotor aircraft for industrial use (so-called
drones)(2) Women in Agriculture Project

Participation in “Street Cleanup Day” (Nichino Ryokka: June 4, 2018)

Cooperation with the neighboring irrigation association in the canalcleaning (Research Center: May 27, 2018)

Kuromaro Juku
The Research Center sent a lecturer to “Kuromaro
Juku”, a citizens’ college course provided by the
Kawachinagano City. The lecturer gave a lecture
concerning the safety of agrochemicals under thetheme of “Thinking about safety of chemical substances
found in your daily life”. We have limited opportunities tomeet local residents to talk about our field of expertise;
however, the lecture had a large audience even though
it was raining on that day. The lecturer strived to provide
easy-to-understand, thoughtful explanations during thelecture. The participants asked many questions at theend of the lecture, demonstrating the high level ofinterest in the subject. It was a valuable opportunity for
Nihon Nohyaku as well.

29

CSR REPORT 2019

Kuromaro Juku, Kawachinagano citizens’ college course (May 8, 2018)

Nihon Nohyaku held the “Online Seminar to
Understand the Basics of Agrochemicals” (first part:
February 2018, second part: June 2018) for women
engaging in agriculture. This seminar was created incooperation with the members who participated in the
kickoff meeting (November 2017) to respond to“providing consumers with easy-to-understandexplanations on why we can call crops grown with
agrochemicals safe”. Taking advantage of opinions andideas provided in the kickoff meeting, we incorporated
various useful tips in the seminar by creating materials
with many diagrams and graphical illustrations to makethem easy to read and making the seminar proceed in
the form of dialogue between the lecturer and an
assistant to make the difficult contents easier tounderstand. The seminar was attended by a large
number of participants from all over Japan as we livestreamed it online, allowing people to join it using PCs
and smartphones.
The first part of the seminar focused on the theme of“safety of crops grown with agrochemicals”. The topics ofthe lecture included “What is the unit of toxicity?” and“Setting of the maximum residue limits for
agrochemicals”, which were rather hard-to-understand,but the participants commented that they “could gain

correct knowledge of agrochemicals”, “found it very
useful thanks to a number of key terms that provide
clues to easy-to-understand explanations to consumers”,“felt grateful for the opportunity as the seminar wasprovided with desired contents” and “wished to have
many more opportunities like this”. The second part cast
light on “proper ways of using agrochemicals”, and gave
explanations on “checking of agrochemical labels”,“preparation of spray solutions”, “spraying and cleanup
work after spraying”, “methods of storing and disposingof agrochemicals” and “recording the use ofagrochemicals”, in line with the actual procedures to betaken when using agrochemicals. In addition, the lecturer
played a video where a Nihon Nohyaku employee
demonstrated the preparation of spray solutions andtheir application in a farm field, to encourage theparticipants to understand the process more easily. The
participants gave such comments as that they “thought
the explanation using the video was excellent as it
helped [their] understanding of how to use and apply
agrochemicals” and “could gain more complete
knowledge of what [they] had known after going throughthe first and second parts”. Both of the two parts
received favorable response from the participants. Goingforward, we are planning to develop a convenient web
service as a new project.
CSR REPORT 201930

Responsible Care activities supporting sustainable development

Communication with Society

Information and Topics of Each Facility
Cooperating with blood donations

In FY2018, we again dispatched speakers from our
Research Center to universities, agricultural colleges
and academies, and middle schools, to hold seminars
and visiting lectures to promote accurate understandingof agrochemicals and help disseminate accurate
information on irradiation and other scientifictechnology. We also cooperated with the Green and
Safety Promoters Association in dispatching lecturers.

The Research Center, Nichino Service Fukushima
and the Saga Plants cooperate with Japan Red Cross
blood drives. Blood donation trucks visit these sites for ablood drive to be conducted for half a day at each ofthem, with participation by many employees who findtime during work to donate blood. The Governor of
Osaka Prefecture presented a letter of appreciation to
the Research Center in FY2018, in recognition of ourcontinued support for blood donations.

Agricultural college scholarship and workshops
In FY2008, we started the Nichino Scholarship Fund,commemorating the 80th anniversary of our founding.
This year marks the 12th year of the fund. Each year,
we provide scholarship funds to students from 9
agricultural colleges around Japan to support theagricultural careers of more than 150 students.
Scholarship students are invited to participate inworkshops of our Research Center and other Group
locations sites to provide them with a better
understanding of our business and to increase theirknowledge of agrochemicals. We hope this system forproviding promising students with scholarships will aid
in the development of successors to the future ofJapan’s agriculture.

Number of employees for Research Center and each plant includes non-full-time employees.

Research Center
General Manager: Kazuhiko Motoba(assumed the position on December 21, 2018)

Address:
345, Oyamada-cho,
Kawachinagano-shi, Osaka
Number of employees:
177
Land area:
approx. 71,000 m²
Floor surface area:
approx. 16,000 m²

Research Center Policy

Letter of Appreciation (Research Center: August 3, 2018)

Our mission is to create new agrochemicals meet theneeds of society to secure safe and steady food supply,
and to improving the quality of life. We embrace our roleas the center of all sorts of research information related
to fine chemical products for agrochemicals andpharmaceutical products, from fundamental research on
chemicals, biological organisms, and safety to researchfor product commercialization and industrial application.
We are dedicated to various social activities,
information disclosure, and open communication andensure our position as a research center that is trusted
by the community.

CSR Activity Topics

Workshop with Nichino Scholarship students (Research Center: July 9, 2018)

2. In this year, we again participated in the
Kawachinagano City Citizen’s Festival. We provided
flower and vegetable seedlings (raised at ResearchCenter by Nichino Service). Nihon Nohyaku
distributed seedlings as a prize for a stamp rally in the“Adventure & Nature Area”, one of the venue’s
multiple event areas where the rally was held, and theprize was so popular that we ran out of all theseedlings we prepared for the rally.

Information and Topics of Each Facility

Dispatching lecturers and guest speakers

1. We proactively accept tour requests to promotefurther understanding of agrochemical efficacy anduse, and agrochemical safety. In this year, wewelcomed a total of 559 visitors for tours. Visitors
included farmers who use agrochemicals as well as
college students in the agricultural department,
Nichino Scholarship students (agricultural college
students) and people from neighboring communities.

Kawachinagano City Citizen’s Festival (May 13, 2018)

3. We held an information exchange session at our
Research Center conference room based on the
Pollution Prevention Treaty we have signed with
Kawachinagano City. The session provided city staff
from the Environmental Measures Department, theRisk Management Department, and the Fire
Department to confirm the results of ourenvironmental measurements (emissions, waste
water, noise, vibrations, etc.). We also provided a tourof the facilities. Measurements showed there to be no
major issues found in the activities of the ResearchCenter. We received constructive questions andproposals, and we were able to promote mutual
understanding. This marked the eighth year since webegan holding the information exchange sessions at
the Research Center, and we have welcomed visitsby many city officials up until now. We look forward tocontinuing with these sessions in the future.
Research Center environmental data
Items

Tour (November 21, 2017)31

CSR REPORT 2019

Content (unit)

FY2014 FY2015 FY2016 FY2017 FY2018

Crude oil equivalent( ) 1,973 1,931 1,961 1,970 1,986
EnergyWater(1,000 m³)
30
27
31
31
29
SOx
(t)
0.0
0.0
0.0
0.0
0.0
Atmospheric NOx
1.8
2.2
2.0
2.0
(t)
2.6
emissions
Dust
0.0
0.0
0.0
0.0
(t)
0.0
(t) 3,881 3,913 3,912 3,863 3,681
CO2Amount
196
202
206
118
(t) 184
Waste
Final landfill
137
140
81
(t) 122
137
Volume (1,000 m³)
10
8
16
19
17
Waste water
COD
0.2
0.4
0.0
0.0
(t)
0.2

CSR REPORT 201932

Information and Topics of Each Facility

Nichino Service Co., Ltd. Kashima Plant

Nichino Service Co., Ltd. Fukushima Plant

CSR Activity Topics

Address:
19, Sunayama,
Kamisu-shi, Ibaraki
Number of employees:
44
Land area:
approx. 45,000 m²

1. We implemented OHSAS18001, worked to improveoverall occupational safety & health, and achieved
zero accidents.
2. In FY2018, we achieved zero environmental
accidents and zero environmental law violations,
goals outlined in ISO14001.
3. To prepare for emergency situations, we conducted
firefighting trainings, emergency evacuation trainings
and leak response trainings.
4. During the disposal of industrial waste, we applied
our electronic manifest and reinforced legal
compliance. Furthermore, we conducted the planned
monitoring of industrial waste disposal contractors to
confirm proper disposal was being conducted.
5. As part of our safe operations initiative, we conducted
an Overall Safety Inspection involving initial
pyraziflumid manufacture review, re-inspections ofpast serious near misses and risk validation.
6. We contributed to the local community byparticipating in community cleanup conducted by the
Corporate liaison meeting in Hasaki District (twice peryear)
7. As part of GMP management, we focused onvoluntary inspection education to improve the skill
levels of GMP internal audit staff.

(assumed the position on December 21, 2018)

Plant Policy
1. Ensure plant and equipment maintenance andmanagement, and work to prevent explosions, fires,
chemical substance leaks, and other accidents. Also,
strengthen system for ensure appropriate responseto emergency situations.
2. Work towards energy conservation to prevent global
warming and protect natural resources.
3. Continuously reduce amount of the discharge ofchemical substances and waste with businessactivities.
4. Constantly ascertain hazards and toxicity of chemical
substances handled and products by the plant andwork to maintain and improve the environment,
health, and safety.
5. Ensure a safe, comfortable, and pleasant work
environment, and work to prevent work-related
injuries, promote improved health, and increasesafety and health level.
6. Work to participate in community activities andinteract with neighboring companies to strengthenties with local communities and neighboring
companies.

General Manager: Hitoshi Yamaguchi

Cleaning around the plant (December 6, 2017)

Nichino Service Kashima Plant environmental data
Items

Overall Safety Inspection (August 8, 2018)

Content (unit)

FY2014 FY2015 FY2016 FY2017 FY2018

Technical grades*1 /
1,339
(t)
bulk powder
Crude oil equivalent*2 ( ) 3,025
EnergyWater(1,000 m³) 192
SOx
(t)
0.6
Atmospheric NOx(t)
6.1
emissions
Dust
(t)
4.0
(t) 5,212
CO2
Amount(t) 2,718
Waste
Final landfill(t)
9Volume (1,000 m³) 205
Waste water
COD(t) 10.1
Products

1,186 1,387 1,577 1,537
2,007 1,982 2,070 1,987
139
158
241
117
0.1
0.3
0.3
0.1
0.9
1.4 14.3
4.8
0.7
0.8
5.9
0.8
3,465 3,368 3,428 3,221
3,166 2,725 5,508 4,842
4
4
3
3
106
128
135
202
2.2
4.7
7.2
5.6

*1 Includes volume of technical grades used at other plants*2 Includes volume used by the departments of Nihon Nohyaku stationed at the
plant

33

CSR REPORT 2019

Address:
286, Hiraishitakada 4-Chome,
Nihonmatsu-shi, Fukushima
Number of employees:
70

8. Proactively disclose the results of our CSR activities
and major indicators through site reports and thewebsite. Encourage communication with thecommunity and further mutual understanding throughparticipation in community activities and social
contribution activities.

Land area:
approx. 119,000 m²

Plant Policy
1. Comply with related laws, regulations and rules,
proactively work on CSR activities and continuously
promote the “environment, safety, health, andcommunication with the community”. Properly
manage poisonous and hazardous materials andprevent harm to health and hygiene.
2. Continuously improve systems through management
reviews. Appropriately respond to legal and otherrequirements, establish systems, create and manage
documentation, collect information, handle audits andthereby work to improve the systems.
3. Work to reduce the discharge of chemical
substances, CO2 emissions and industrial waste frombusiness activities, and promote resource and energy
conservation as part of environmental protection
efforts with an eye on not only the areas surrounding
the plant, but also the global environment.
4. Add risk assessment items every month inconjunction with near-miss incidents. In conjunction
with these additions, revise procedure manuals, andenhance education and KY activities, to prevent
various types of accidents including fires, explosions,and chemical substance leaks. Operate theemployee safety confirmation system in case of
emergency such as large-scale disasters, and carryout disaster prevention trainings regularly.
5. Applying the OHSAS18001 system, we prevent workrelated injuries. Provide mental care for employees,
protect their safety and health and work to create apleasant, comfortable work environment.
6. To prevent logistics-related accidents, we conduct
appropriate labeling of product containers, and use
Yellow Cards, White Cards, etc., to provide productsafety information to all shipping and warehouse
operators. Share information with shipping operators
to eliminate incorrect shipments, delayed delivery
and other transport problems.
7. Conduct risk management for all processes related tothe handling of chemical substances at the plant.
Provide appropriate product safety information to all
workers, clients, and affiliate operators involved inhandling.
Work to maintain and improve safety, health andenvironmental aspects by sharing up-to-date risk andhazard information concerning chemical substancesand products handled at the plant.
Be sure to implement risk assessment at the time of
the introduction of new products and chemical
substances.

Environmental beautification around the plant Firefighting (rescue) training(June 19, 2018)(July 26, 2018)
Information and Topics of Each Facility

General Manager: Shigeyuki Sakao

CSR Activity Topics
1. Prepared for emergency situations through education
on past incidents, firefighting drills, drills forresponding to agrochemical substance leaks, anddrills for the safety confirmation system.
2. Conducted risk prediction training (KYT) anddiscussed measures to prevent past problems frombeing forgotten on the “Safety Day” implemented
every year. Newly instituted a Month of Strengthening
Detection of Potential Near Misses to nip risks in thebud by allowing departments to provide advice toeach other (number of cases submitted: 224).
3. Distributed our CSR Report to widely communicate
the activities of the plant and the Nichino Group to
employees and visitors from outside. Our corporate
activities were also featured in a Nihonmatsu City
Public Relations Report issued by Nihonmatsu City.
Allowed youth baseball teams
and registered groups to use ourgrounds (32 times) and regularly
conducted neighborhoodcleaning (four times a year).
Welcomed 24 groups totaling
271 visitors, including
agrochemical consumers, topromote an understanding of
agrochemical safety.
4. Continued to achieve zeroenvironmental accidents andzero environmental law
Nihonmatsu City Public Relations Reportviolations.
(June 2018 Issue)
Nichino Service Fukushima Plant environmental data
Items

Products

Content (unit)

FY2014 FY2015 FY2016 FY2017 FY2018

Agrochemicals(t) 4,323 4,155 3,914 5,138 5,232
Crude oil equivalent( ) 514
456
449
534
534
EnergyWater(1,000 m³)
8
9
7
8
8
SOx
(t)
0.2
0.2
0.0
0.9
0.2
Atmospheric NOx
0.2
0.0
0.3
0.2
(t)
0.2
emissions
Dust
0.0
0.0
0.0
0.0
(t)
0.0
(t) 1,209 1,083 1,043 1,214 1,201
CO2Amount
363
380
429
414
(t) 469
Waste
Final landfill
(t)
2
1
2
1
2
Volume (1,000 m³)
7
6
5
7
7
Waste water
COD
0.0
0.0
0.0
0.0
(t)
0.0

CSR REPORT 201934

Information and Topics of Each Facility

Company Overview and List of Nichino Group Companies

General Manager: Hideki Utaka
Address: 180-1, Aza Nihonsugi, Oaza Tsutsumi,
Kamimine-cho, Miyaki-gun, Saga
Number of employees: 87(7 are members of the Osaka
Storage / Delivery Group)
Land area: approx. 84,000 m²

General Manager: Yoshiaki Higashino(assumed the position on December 21, 2018)

Address: 2-30, Tsukuda 5-Chome, Nishiyodogawa-ku, Osaka
Number of employees: 24 (including Formulation ResearchGroup of the Manufacturing Technology Research Center, Osaka Storage/ Delivery Group of Nichino Service Saga Plant, Nihon Ecotech members)
Land area: approx. 30,000 m²
Floor surface area: approx. 15,000 m²

Plant Policy

Office Policy

1. Work to reduce CO2 emissions and industrial waste,
and promote resource and energy conservation as partof environmental protection efforts.
2. Promote the use of risk assessments to prevent fires,
explosions, chemical substance leaks, and otheraccidents.
3. Utilize the OHSAS18001 system to prevent workrelated injuries, provide mental care for employees,
and create a pleasant work environment.
4. Provide product safety information to all logistics andwarehouse operators to prevent logistics-related
accidents.
5. Through agrochemical production, we all engage inefforts to contribute to society to ensure safe andsteady food supply and improve the quality of life.

The premise of the Nihon Nohyaku Osaka Office houses
the Administration Group, the Formulation Research Groupof the Manufacturing Technology Research Center, theOsaka Storage & Delivery Group of Nichino Service Saga
Plant and Nihon Ecotech Co., Ltd.
Although the Osaka Office only has a small number ofstaff, amid development construction, the entire NichinoGroup is committed to contributing to society through CSR
activities.

CSR Activity Topics
1. Promoted energy conservation by replacing outdoor
lighting on the premises with LED.
2. Continued with successful achievement of zeroenvironmental accidents and zero environmental law
violations.
3. Monitored industrial waste processing contractors to
confirm proper treatment was being conducted.
4. Conducted trainings (such as firefighting and evacuation
trainings, agrochemical technical grade/product leakresponse trainings, tank leak response trainings, andwaste water treatment facility problem response
trainings) to prepare for emergency situations.
5. As part of our communication with the society to promote
understanding regarding agrochemical safety and usage
methods, we welcomed 53 groups totaling 760 visitors
including from universities,
agricultural colleges andagriculture officials. We also
accepted interns fromneighboring schools, providing
opportunities to learn about
agrochemical production,
Firefighting training
inspection to shipping etc.
(September 25, 2018)

Nichino Service Saga Plant environmental data
Items

Product

Content (unit)

FY2014 FY2015 FY2016 FY2017 FY2018

Agrochemicals(t) 6,438 5,466 4,891 5,288 7,706
Crude oil equivalent( ) 960
950
835 1,045
998
EnergyWater(1,000 m³)
13
14
13
14
13
SOx
(t)
0.2
0.1
0.1
0.3
0.3
Atmospheric NOx
0.3
0.4
0.8
0.8
(t)
0.5
emissions
Dust
0.0
0.0
0.0
0.0
(t)
0.0
(t) 2,213 2,204 1,840 2,099 1,933
CO2Amount
399
375
312
421
(t) 649
Waste
Final landfill
(t)
0
0
0
0
0
Volume (1,000 m³)
6
7
7
6
6
Waste water
COD
0.0
0.0
0.0
0.0
(t)
0.0

35

Osaka Office

CSR REPORT 2019

CSR Activity Topics
1. Reported removal of overage buildings and soil
improvement work of the project of the Tsukuda district
redevelopment to the Environment Bureau of the City ofOsaka and other authorities to carry out the construction
work. Provided an explanatory meeting for residents inthe neighborhood prior to the construction. Continuingenvironmental measurements (noise, vibration and dust)
during the construction.
2. Conducted safety patrols, identified potential near misses
and encouraged submission of near misses to promote
accident prevention and maintain zero accidents.
3. To prepare for emergency situations, conducted (1) fire
extinguisher training, (2) disaster prevention training(shutdown, evacuation), (3) leak response and otheremergency training, and (4) training on the use of mobile
powered pumps. Because the plant has a relatively small
number of staff for its large area, the staff members
confirmed the locations of equipment so that any of themcan conduct shut-down operations in case of emergency.
4. As part of our communication with society, cleaned thearea surrounding the plant, participated in community
activities in the Nishiyodogawa area (first-aid training
and group activities to watch
over children for traffic safety
and crime prevention) andparticipated in and supported
community activities in the
Tsukuda district (provision of aspace for rest for children’s
Taiko drum events and yearNeighborhood cleaning
end fire prevention activities).
(August 7, 2018)
Osaka Office environmental data
Items

Content (unit)

Crude oil equivalent( )EnergyWater(1,000 m³)
SOx(t)
Atmospheric NOx(t)emissions
Dust
(t)
(t)
CO2
Amount(t)
Waste
Final landfill(t)Volume* (1,000 m³)
Waste water
COD(t)* All treated as industrial waste

FY2014 FY2015 FY2016 FY2017 FY2018

203
1
0.0
0.0
0.0
370
89
6
0
0.0

164
2
0.0
0.0
0.0
334
109
4
0
0.0

106
1
0.0
0.0
0.0
213
81
1
0
0.0

68
1
0.0
0.0
0.0
132
88
5
0
0.0

49
1
0.0
0.0
0.0
88
113
15
0
0.0

Nihon Nohyaku Co., Ltd.
 roup companies
G(consolidated)Group companies(non-consolidated)Affiliated companies accounted
for by the equity method

Information and Topics of Each Facility / Company Overview and List of Nichino Group Companies

Nichino Service Co., Ltd. Saga Plant

Nihon Nohyaku Co., Ltd.
Head Office19-8 Kyobashi 1-Chome, Chuo-ku, Tokyo
address
104-8386
FoundedNovember 17, 1928
Capital14,939 million yen
Number of employees 1,443(consolidated)
Main business
Manufacturing, import, export, and sales ofagrochemicals, pharmaceuticals, quasi drugs,
veterinary products, wood preservative
agents, agricultural materials, and more

Head office andbranches

Research
Facilities
Manufacturing
plant (contracted)

Head office,Tokyo Branch (Chuo-ku, Tokyo)
Sapporo Branch (Sapporo-shi, Hokkaido)
Sendai Branch (Sendai-shi, Miyagi)
Osaka Branch, Tokai-Hokuriku Sales Office (Osaka-shi, Osaka)
Fukuoka Branch (Fukuoka-shi, Fukuoka)
Osaka Office (Osaka-shi, Osaka)
Research Center (Kawachinagano-shi, Osaka)
Naganuma Nursery (Yubari-gun, Hokkaido)
Nichino Service Co., Ltd.
( Fukushima Plant / Kashima Plant / Saga Plant)

Consolidated Group Companies
Nichino Ryokka Co., Ltd.

Sales of chemicals/pesticides for golf courses, home & garden, and greenification, sales Chuo-ku, Tokyoof turf and turf-related materials, planning and construction of gardens and amenity areas

Nichino Service Co., Ltd.

Manufacturing and sales of agrochemicals, contracted manufacturing,storage, and transport of agrochemicals, cultivation and management offields, real estate management

Fukushima Plant
Kashima Plant

Chuo-ku, Tokyo
Nihonmatsu-shi, Fukushima
Kamisu-shi, Ibaraki
Kawachinagano-shi, Osaka

Kawachinagano Center

Miyaki-gun, Saga

Saga Plant
Nichino America, Inc.

Agrochemical sales, promotion, development, and registration in the USA

U.S.A. / Wilmington

Nihon Ecotech Co., Ltd.

Agrochemical residue analysis, chemical substance safety testing, andrelated activities

Chuo-ku, Tokyo

Agrochemical sales and promotion in Taiwan

Taiwan/Taipei

Fukushima Analysis Center
Taiwan Nihon Nohyaku Co., Ltd.

Nihonmatsu-shi, Fukushima
Kawachinagano-shi, Osaka

Osaka Analysis Center
AgriMart Corporation

Sales of termite control agents/devices, pest control agents/devices

Chuo-ku, Tokyo

Nichino India Pvt. Ltd.

Agrochemical sales, manufacturing, development, promotion, import and export in India

India / Hyderabad

Nichino Chemical India Pvt. Ltd.

Agrochemical sales and manufacturing in India

India / Hyderabad

Sipcam Nichino Brasil S.A.

Agrochemical sales and manufacturing in Brazil

Brazil / Uberaba

Nichino Europe Co., Ltd.

Agrochemical sales, promotion, development, and registration in Europe

UK / Cambridge

Nichino Shanghai Co., Ltd.

Agrochemical sales and promotion in China

China/ Shanghai

Nichino do Brasil Agroquímicos Ltda.

Agrochemical development and registration in Brazil

Brazil / Sao Paulo

Nichino Vietnam Co., Ltd.

Agrochemical sales, development, promotion, import and export in Vietnam

Vietnam / Ho Chi Minh

Nihon Nohyaku Andica S.A.S.

Agrochemical sales, development, promotion, import and export in the Andes and Central America

Colombia / Bogota

Non-consolidated Companies

Affiliated Companies Accounted for by the Equity Method
Agricultural Chemicals (Malaysia) Sdn. Bhd.

Agrochemical sales and manufacturing in Malaysia

Malaysia / Penang

Sipcam Europe S.p.A.

Agrochemical sales and manufacturing in Europe

Italy / Milan

CSR REPORT 201936

Head Office19-8, Kyobashi 1-Chome (Kyobashi OM Bldg.),
Chuo-ku, Tokyo
104-8386

TEL+81-3-6361-1400

Websiteh t t p s : // w w w . n i c h i n o . c o . j p / e n /We practice Green Purchasing.

In Sep.2014, Nihon Nohyaku
received a Development Bankof Japan loan based on the DBJ
Environmentally Rated Loan
Program.