CSR Report 2018
Corporate Social Responsibility Report 2018

About the Nichino Group

Contents

About the Nichino Group
Information and Topics of Each Facility / Third-party Validation

CSR Report 2018

Editorial Policy ������������������� 02

About the Nichino Group*1

02

Editorial Policy

Basic Principles of the Nichino Group ��������������������������������� 02
The Nichino Group Action Charter ������������������������������������ 02
Trajectory of the Nichino Group Overview 90 years ����������������������� 03
About the Nichino Group Business Overview���������������������������

The Nichino Group Mission

05

07

Commitment of Top Management ������������������������������������� 07
The Nichino Group Vision�������������������������������������������������������

09

Mid-Term Business Plan �������������������������������������������������������� 10

Feature:Contributions to the Modernization of Agriculture and Economic
Development of Farmers in India which is the World Grain Belt 11
Corporate Governance ��������������������������������������������� 13
1. Corporate Governance Guidelines (Basic Approach) ���������������������������������� 13
2. Corporate Governance Diagram������������������������������������������������

13

1. RC Promotion Diagram �������������� 15
2. RC Global Charter ������������������ 15
3. Management System ���������������� 16
4. RC Mid-Term Targets and Activity Results/Plans ���� 161) About the Nichino Group RC Mid-Term Targets(FY2016-FY2020) ������������������� 162) FY2017 Activity Results and Internal Evaluation � 173) FY2018 Activities ������������������� 18

Environmental Protection �������� 19
1. Input of Resources and Energy and Output of
Products and Environmental Load ������ 19
2. Environmental Impact ��������������� 19
3. Environmental Accounting ������������ 21
4. Activities toward Green Purchasing andGreen Procurement ����������������� 22
5. Efforts towards Creating a Low-Carbon
Society �������������������������� 22

Occupational Safety & Health, Process
Safety & Disaster Prevention ����� 23
1. Occupational Safety & Health ���������� 23
2. Process Safety & Disaster Prevention ���� 24

Third-Party Verification
Basic Principles of the Nichino GroupWe also received advice on how toThe
improve
our Group
RC activities.
NichinoGroup
Action Charter[Scope of applicability]

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

[Data aggregation period]

Unless otherwise noted, the2017 agrochemical fiscal year
(October 2016 to September
2017, 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
2017. Information includes topics
through March 2018.

1. Logistics Safety �������������������� 26
2. Product Development Considering Environment /Safety and Animal Welfare ������������� 26
3. Raw Materials and Products Safety
Management ��������������������� 27

Communicating with Society[Issue]The Nichino Group also applies “Chemical Innovator for Crop & Life” as acorporate statement that further solidifies the principles of our Basic Principles andAction Charter. Through this statement, we challenge ourselves to ensure a safe andsteady food supply and to improve the quality of life for all through technicalinnovation.

April 2018
(Next: Planned for March 2019)

Site inspection(Nichino Service Saga - March 19, 2018)

�����

29

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.

About Sustainable Development Goals (SDGs)
Verification Day 3 (Head Office- March 22, 2018)

1. Distributing Information to Society ������ 29
2. Relationship to Society �������������� 30
Participation in the Project of JMAFF*2 ����� 32*1 Nichino Group = Nihon Nohyaku Group*2 JMAFF = the Japanese Ministry of Agriculture, Forestry and Fisheries
CSR REPORT 2018

An explanation of terminology
is indicated on the first page. Anyerrors in the calculation of pastdata have been corrected anddenoted with an ( ).

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
our
VerificationforDay
2 employees, always
respecting human rights and the diversity foundamongpeoplecultures.
(Nichino
Service
Sagaand- March19, 2018)
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.

Logistics Safety, Product Stewardship(Chemical Materials & Products Safety) � 26

The Nichino Group Global Sites ������� 33
Information and Topics of Each Facility �� 34
Third-Party Verification ������������� 38

01

15* Refers to consolidated Group companies and non-consolidated Group companies indicated on Page 5.

This CSR Report summarizes
the Nichino Group activities using
the following as references:● We contribute to society by ensuring a safe and steady food supply and improving theEnvironmental Reporting
quality of life for all.
In accordance
RC market
mid-term
targets(FY2016Guidelines(2012) by the with the Nichino Group● We fulfill
needs
by creatingsuperior values with innovative technologies.
Japanese we
Ministryof the2020),
received
an inspection fortheverification
of
this
newly
issued● We commit to being a trustworthy
company for all stakeholders through our fair andEnvironment,
Environmental
CSR
Report2018 (March 2018). Verification
was conducted
at our Headvigorous businessactivities.
Accounting
Guidelines(2003) by Service Saga Plant. The inspection entailed
Officeandat Nichino
the Japan Chemical
confirming
theIndustry
rationality of our calculation
and Principles,
the accuracy
Basedmethods
on this Basic
weofhave established the Nichino Group Action
Association(JCIA),
JIS performance
Z
Charter thatis applied
to all executives
and employees.
our figures forandthe
benchmarks(figures)indicatedin this26000: 2012 Guidance on Social
Report,as well as the accuracy of information other than numerical figures.
Responsibility, etc.

[Other]Responsible Care Activities Supporting Sustainable Development

The Nichino Group* has outlined the Basic Principles of the Nichino Group as
basic management principles shared by all executives and employees, and which
serve as the foundation for all our business activities.

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 andOpinion letter of third-party verification
the 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.

C S RC SRRE PR OE RP TO R2T0 12 80 1 8

0 23 8

Overview

Our history is deeplyintertwined with that of
the agrochemicalindustry in Japan.

years

1996 Taiwan Nihon Nohyaku Co., Ltd. established2011 Nichino Shanghai Co., Ltd. established1997 Nihon Nohyaku America, Inc. (currently
Nichino America, Inc.) established2012 Aquired a part of share of Sipcam Europe (Italy)
2013 Head Office relocated to Kyobashi, Chuo-ku, Tokyo,
Orthosulfamuron acquired from ISEM S.r.l. (Italy)

1999 Ecopart, Thunderbolt(pyraflufen-ethyl)launched

Ecopart2000 Bangkok Office opened

2002 Nagoya Branch integrated into Tokyo and Osaka Branch
A portion of Tomono Agrica’s business acquired
Mitsubishi Chemical Corp.’s agrochemical business acquired

In the early 1920s, Furukawa Electric Co., Ltd. began research and development on
agrochemicals as a platform for research using the by-products of copper refinement, thebusiness conducted by Furukawa Mining Co. Ltd. (currently Furukawa Co., Ltd.). Later,
this agrochemicals business was transferred to Asahi Denka Kogyo KK. (currently
ADEKA Corporation). Subsequently, in 1928, the Agricultural Chemical Department of
Asahi Denka Kogyo KK. and Fujii Seiyaku Co., Ltd. merged to form Nihon Nohyaku Co.,
Ltd., Japanese first agrochemical manufacturing company. Since then, as a company
dedicated to protecting food and nature, we have focused on the manufacturing andsales of safe and superior agrochemicals while working to revolutionize technology in ourcore business. Furthermore, working from the basis of agrochemical research,development and manufacturing, we have been expanding our business in fields such as
chemicals, pharmaceuticals and animal health care products.

2003 V-Get(tiadinil) launched
Acquired Isouron business from Bayer
Cropscience2014 All shares of Arysta Lifescience Agrimart Co., Ltd. (now AgriMart
Corporation) acquired
Nichino do Brasil Agroquímicos Ltda. established
Invested in Sipcam Agro S.A. (and changed name to Sipcam
Nichino Brasil S.A.)
2015 Danikong, Double Face(pyflubumide) launched
Acquired Hyderabad Chemical Ltd. (currently Nichino India Pvt.
Ltd.)2016 Sipcam Nichino Brasil S.A.
became our consolidated
subsidiary2005 Lulicon (luliconazole) launched2006 Invested in Philagro Holding (France)
2007 Phoenix(flubendiamide) launched
Zespart, Windom (lanoconazole) launched for
OTC useNichino Europe Co., Ltd. (UK) established

V-Get

2017 Nichino Vietnam Co., Ltd.
established
Danikong

Double Face

2008 Nichino Scholarship Fund established1928 Nihon Nohyaku Co., Ltd. established (Head Office, Osaka)

1978 Kashima Plant constructed in Ibaraki

1930 Kawachi Biological Research
Farm opened in Osaka

1979 Tohoku Sales Office (currently Sendai Branch)
opened2010 Axel(metaflumizone) launched in Japan
Tokai-Hokuriku Sales Office openedColt(pyrifluquinazon) launched

60,033 million yen

1983 Fukushima Plant constructed in Fukushima
1984 Tokyo Plant closed
Applaud(bupurofezin) launched
Kawachi Biological Research
Farm opened in Osaka

1934 Tsukuda Plant (currently
Osaka Office) constructed,
Kyushu Liaison Office (currently Fukuoka Branch) opened

1989 Japan House Tech Co., Ltd. (currently Nichino
Service Co., Ltd.) established1990 Japan EcoTech Co., Ltd. established1942 Korean Nohyaku Co., Ltd. established1991 Danitron(fenpyroximate) launched
Pharmaceutical Research Center constructed1948 Registered 1st agrochemical in Japan
1953 Tokyo Plant constructed in Saitama
1955 Hokkaido Liaison Office (currently Sapporo Branch) opened
1956 Chemical Research Laboratory constructed

Axel

1985 Nichino Rec Co., Ltd. establishedMoncut(flutolanil) launched
Kantec (malotilate) launched
Listed on Tokyo Stock Exchange, First Section

1938 Manchuria Nohyaku Co., Ltd. established1945 End of the World War II resulted in confiscation of all overseas assets

Phoenix
Applaud

Colt

Moncut1992 London Office opened
Naganuma Nursery opened in Hokkaido
1993 Research Center (Institute of Safety
Research) constructed

Danitron

1994 Astat (lanoconazole) launched

1959 Head Office relocated to Tokyo
1961 Daiichi Nohyaku Co., Ltd. established in Okinawa

1995 Research Center construction
completed1963 Listed on Tokyo Stock Exchange, Second Section
1964 Nagoya Liaison Office opened (consolidated into Osaka Branch in 2002),
began transactions with National Federation of Agricultural Cooperative
Associations
1969 Saga Plant constructed, Agricultural Chemicals (Malaysia) Sdn. Bhd.
established

Research Center

1973 Safety Research Center constructed
1974 Nichino Ryokka Co., Ltd. established1975 Fuji-One(isoprothiolane) launched

(FY)

1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973

Fuji-One

Transitions in net sales consolidated since FY1992.
03

CSR REPORT 2018

CSR REPORT 201804

Trajectory of the Nichino Group Overview 90 years

90

Trajectory of the Nichino Group

About the Nichino Group

About the Nichino GroupAbout the Nichino Group

Head office address

19-8 Kyobashi 1-Chome, Chuo-ku, Tokyo
104-8386

FoundedNovember 17, 1928

Capital10,939 million yen

Number of Employees 1,461(consolidated)
Total assets(consolidated)

88,713 million yen

Sales (consolidated)

60,033 million yen

Ordinary income(consolidated)

3,597 million yen

Profit attributable to owners
1,717 million yenof parent (consolidated)
Main Business

Head office andbranches

Research Facilities

Manufacturing, import, export, and sales ofagrochemicals, pharmaceuticals, quasi
drugs, veterinary products, woodpreservative agents, agricultural materials,
and more● Head office● Sapporo Branch● Sendai Branch● Tokyo Branch● Osaka Branch / Tokai-Hokuriku Sales
Office● Fukuoka Branch● Osaka Office● Research Center● Naganuma Nursery

Manufacturing plant(contracted)

Nichino Service Co., Ltd.
● Fukushima Plant● Kashima Plant● Saga Plant

Financial information (consolidated)
Consolidated Group Companies

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

56,696 56,930

47,6272013● Nichino America, Inc.
Agrochemical sales, promotion, development, and registration in
the USA

Domestic
agrochemical sales● Japan EcoTech Co., Ltd.
Agrochemical residue analysis, chemical substance safety testing,and related activities● Taiwan Nihon Nohyaku Co., Ltd. (Taiwan)
Agrochemical sales and promotion in Taiwan● AgriMart Corporation
Sales of termite control agents/devices, pest control agents/devices● Nichino India Pvt. Ltd. (India)
Agrochemical sales, manufacturing, development, promotion,
import and export in India● Nichino Chemical India Pvt. Ltd. (India)
Agrochemical sales and manufacturing in India● Sipcam Nichino Brasil S.A. (Brazil)
Agrochemical sales and manufacturing in Brazil

Non-consolidated Companies● Nichino Europe Co., Ltd. (UK)
Agrochemical sales, promotion, development, and registration in
Europe● Nichino Shanghai Co., Ltd. (China)
Agrochemical sales and promotion in China

50,641● Agricultural Chemicals (Malaysia) Sdn. Bhd.
(Malaysia)
Agrochemical sales and manufacturing in Malaysia● Sipcam Europe S.p.A. (Italy)
Agrochemical sales and manufacturing in Europe

9,375

6,137

7,143

4,715

5,625

1,717

1,035
2014

2015

2016

2013

2017

2014

2015

2016

2017

2013

2014

2015

2016

2017

Status by business division

Overseas
agrochemical sales

32.6%

53.8%

Sales

Asia

60,033 million yen

Other

3.2%

Other chemical products

Sales

Sales

Sales

(Increased

Americas

Other chemical
products

2.4%

32,303

million yen

0.1% YoY)(Increased(million yen)

EuropeOther regions

Overseas agrochemical sales

19,601

51.1%

10.4%

Domestic agrochemical sales

41.9%

4.6%

6,217

million yen

50.6% YoY)

(Decreased(million yen)

20,055 19,937 19,883 19,578 19,601

19,116

million yen

20.5% YoY)

(million yen)

26,139 24,655

32,303
21,446

6,577

8,814

10,646

7,821

6,217

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

1,9096.4

2013

million yen(Increased

2014

2015

2016

2017

2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

% YoY)

Non-financial information
Rate of female employees

Rate of female managers

Paid leave days used*1

Number of male employees taking paternity leave*2

(%)

(%)

(days)(persons)(Nihon Nohyaku Co., Ltd)

(Nihon Nohyaku Co., Ltd)

19.4 19.3
16.9 18.2 18.8

5.6
3.6

3.0

● Nichino do Brasil Agroquímicos Ltda. (Brazil)
Agrochemical development and registration in Brazil● Nichino Vietnam Co., Ltd. (Vietnam)
Agrochemical sales, development, promotion, import and export in
Vietnam

60,0339,361

3,864 3,597● Nichino Service Co., Ltd.
Manufacturing and sales of agrochemicals, contracted
manufacturing, storage, and transport of agrochemicals, cultivationand management of fields, real estate management

Affiliated companies accounted for by the equity method

CSR REPORT 2018

Ordinary income(million yen)

● Nichino Ryokka Co., Ltd.
Sales of chemicals/pesticides for golf courses, home & garden, andgreenification, sales of turf and turf-related materials, planning andconstruction of gardens and amenity areas● Nihon Nohyaku Andica S.A.S. (Colombia)
Agrochemical sales, development, promotion, import and export in
the Andes and Central America

05

Sales

About the Nichino Group Business Overview

Nihon Nohyaku Co., Ltd.

About the Nichino Group

About the Nichino Group Business Overview(Nihon Nohyaku Co., Ltd)

6.9

4.2

(Nihon Nohyaku Co., Ltd)

10.40 11.26
9.12 8.85 9.51

13

0
2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

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

16

17

1

0

17

13

0

2013 2014 2015 2016 2017
Female employee maternity leave usage rate was 100%

Number of patent applications filed

R&D expenses

Charitable donations

Number of employees(Number)(million yen)(thousand yen)(persons)(Nihon Nohyaku Co., Ltd)

92

Patent applications filed in Japan
Patent applications filed overseas*3

101

93

(Group consolidated)(Nihon Nohyaku Co., Ltd)5,143 5,527 5,197

4,104

5,014

10,5002

12,480 12,950 12,250

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

1,266

1,457 1,461

70

74

41

56

692

731

24

29

18

403

428

453

438

419

2015

2016

2017

2013

2014

2015

2016

2017

71

78

69

21

23

2013

2014

2013

8,400

2014

2015

2016

2017

2013

2014

2015

2016

2017

*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 since retired. 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

CSR REPORT 201806

The Nichino Group Mission

Established in 1928 as the first agrochemical
manufacturer in Japan, we will celebrate our 90th
anniversary in November 2018.
We constantly pursue innovation to reflect change ofthe times while continuously contributing to society.
The global population is expected to reach 9.8 billion
people by 2050. As a global company, the Nichino Groupfulfills our responsibility to provide safer and more
effective agrochemicals while contributing to ensuring
safe and steady food supply.
Our entire Group will actively engage in CSR activities,
which includes the establishment of a CSR promotion
system, to help society better understand our businessactivities.

Yosuke Tomoi
President

safe and steady food supply while fulfilling
agrochemical manufacturer.
The role of agrochemicals in thedevelopment of society
Nihon Nohyaku was established in 1928 as the first
agrochemical manufacturer in Japan with the objectiveof contributing to produce high-quality crops.
In truth, agriculture is artificial, and not the result of
natural processes. A diverse array of plants exist in thenatural environment but on agricultural field such as ricepaddies and crop fields, a single plant species iscollectively cultivated in order to achieve effective crop
production. As a result, agricultural lands have unstableecosystems and lead to environments that are highly
susceptible to pests and disease. These fields are also
susceptible to weed growth, which steals vital water andnutrients from crops and also prevent photosynthesis.
Agrochemicals are a safe and effective means ofeliminating the pests, disease, and weeds that competewith crops while also maintaining harvest volume andquality. There is data to show that if we didn’t use
agrochemicals, apple harvest volume would be reduced
to next to nothing and crops like cabbage andcucumbers would be reduced by as much as 60%.
When our company was founded, we did not havenumerous proprietary technical grades like we do now.
We started out as a sales company for multinational
manufacturers in Japan. With the end of WWII, thedissemination of agrochemicals enabled Japaneselabor forces to focus on driving economic growth as thecountry shifted from primary industries to secondary
and tertiary industries. With many of the youth moving
to urban areas for work, highly effective agrochemicals
and improved cultivation technology enabled us tooperate farms with a limited number of workers. From
this perspective, I believe that agrochemicals greatly
contributed to the period of rapid economic growth inJapan.

Responsibility to introduce safer
and more effective agrochemicals
Then, change came to the agrochemical industry.
Agrochemicals in the early days, particularly
insecticides, only focused on their high efficacy so many
products had strong toxicity against natural enemies ofcrop pests, such as frogs and spiders. This posed athreat to the survival of the small animals that consume
insects. However, 1962 saw the publication of Rachel
Carson’s “Silent Spring”, and also in 1971, theAgricultural Chemicals Control Act was revised inJapan, which required the development of low-toxicity
agrochemicals. In light of this global trend, our company
was also faced with the need to develop unique
agrochemicals that would promote company growth.
07

CSR REPORT 2018

Commitment of Top Management

We contribute to ensuring
our responsibilities as an

The Nichino Group Mission

Commitment of Top Management

We gradually shifted to becoming a R&D-focusedcompany with the introduction of safer and more
effective agrochemicals.
Safer agrochemicals are products that provide
selective efficacy on targeted pests with a low volume
and low-toxicity. As an example of such a product, wehave horticultural and rice paddy insecticide
Applaud(buprofezin). Applaud is an insecticide effective
against plant hoppers, a rice paddy pest, as well as thewhiteflies, scale insects, etc., that harm cotton and fruit
trees. Applaud is a practical realization of an IGR(insect growth regulator) concept appeared in the
1980s. Plant hoppers and other pests create chitin* andshed as they continue to grow. Applaud restricts the
production of chitin to inhibit shedding, demonstrating
efficacy on specific pests without harming natural
predators such as birds and frogs. While not having
rapid efficacy, it was proved that the use of Applaud onlarge surface areas has a high efficacy by preventing a
concentration of pests. With this superior efficacy andcharacteristics, Applaud has been well-accepted andcontinuously used by customers. By concentrating on
the development and dissemination of products which
are not only safely used to human and animals but also
have minimum adverse effect on natural enemies, suchas the horticultural insecticides Phoenix(flubendiamide)
and Colt(pyrifluquinazon), Nihon Nohyaku has beentrusted by the market as a company committed to thedevelopment of safe and highly effective new solutions.
* The main constituent of the insect exoskeleton

Contribution to ensuring a steadyglobal food supply
In the 1980s, Nihon Nohyaku shifted from being aformulator of technical grades developed by overseas
manufactures to be sold in Japan, to a R&D-focused
manufacturer. During this period, we also began
overseas expansion by providing sales licenses in
America and Europe. In the 1990s, foreign
manufacturers sought to increase their presence inJapan. They have begun the direct sales of products
they originally licensed to Japanese formulators. This
threat to their survival forced Japanese manufacturers
to reform their agrochemical businesses.
In 2002, Nihon Nohyaku expanded our humanresources and products portfolio by acquiring the
agrochemicals business of Mitsubishi Chemical
Corporation and the copper products business ofTomono Agrica Co., Ltd. We further expand our portfolio
by investing approximately 10% of annual net sales to
R&D. These movements laid the foundation for ourfull-fledged global business expansion based on thedevelopment of proprietary products and own sales
CSR REPORT 2018

08

The Nichino Group Mission

Nichino Group-

Growing Global
To become an outstanding globallycompetitive group

We contribute to the future of mankind through protecting
crops and improving our living environment by further
improvement of our technology that has arisen throughagrochemical business.
We contribute to society through supporting agriculture byproviding new agrochemicals & technology continuously

organization. In 2013, after much deliberation regarding
our vision for the future, we set the Group vision“Growing Global to become an outstanding globallycompetitive group”, which aims to challenge ourselves
to engagement in expanding global markets. This vision
is rooted in our corporate philosophy of contributing to asafe and steady food supply. This vision also meant
securing a significant R&D budget for the continuous
introduction of new technical grade was critical tosuccess. As one of the ways to continue our existence
as an R&D-focused company, we decided to expand
our operational capacity and grow globally.
The global population is currently 7.6 billion people
and this is expected to increase by 28% to 9.8 billion
people by 2050. At the same time, the surface area ofagricultural field dedicated to food production, althoughprojected to grow only in certain regions such as Brazil,
where they can convert plains field into agricultural field,
most regions have a limited amount of land that can beused for agricultural cultivation and there is little roomfor expansion. At a UN summit in 2015, SDGs
(Sustainable Development Goals) were adopted asinternational goals to be achieved by 2030. One ofthese goals is the elimination of starvation. For
example, in India, where there is a need to promoteincreased food production, rice is being cultivated onsome 40 million hectares, more than 25 times the 1.5
million hectares of rice production field in Japan.
However, agrochemicals are only used on some 50% ofthat land in India. Amid a growing global population, it
will prove vital that increase in harvest by securing
water resources and breed improvement, as well as
increase productivity by protecting crops from insect
pests and diseases. As such, we believe Nihon
Nohyaku has a major role to play in the global society.

09

CSR REPORT 2018

Mid-Term Business Plan
To be an R&D focused company: No.1 in Japan and
Top10 in the world in the future (Sales over 200 billion yen)
Ideal business model in 2021 and a passing point towards the future

1 Mid-Term Business Plan

Advance to Growing Global 2018 (2016-2018)(AGG2018)

To be a company where every employee has high motivation, pride
and wilt for their work
VisionTo globally deploy high value-added new products, existing
proprietaries and high quality generics

Early in our history, Nihon Nohyaku actively engagedin overseas markets by establishing manufacturing andsales subsidiaries in Asia. In 1997, we established
Nihon Nohyaku America, Inc. (currently Nichino
America, Inc.) and other subsidiaries as we focused on
expanding our business model based on the direct
sales of proprietary safe and highly effective
agrochemicals. Currently, overseas sales account for
more than 50% of consolidated net sales. This is due tomoves such as the acquisition of Hyderabad ChemicalLtd. in India (currently: Nichino India Pvt. Ltd.) in 2015
and the addition of Sipcam Nichino Brasil S.A. in Brazil
as a consolidated subsidiary in 2016. Through a global
structure that increases synergy and strengthens
manufacturing and sales structure for proprietaryproducts, we are able to increase profitability by
developing new products more in line with market
needs and reducing costs in manufacturing genericproducts.
In order for Nihon Nohyaku to fulfill our mission of
ensuring a safe and steady food supply, we must
continue to launch products that are superior in safety
and efficacy. At the same time, developing safe andeffective products also requires huge investment andlong development period. At Nihon Nohyaku, in addition
to traditional agrochemicals, we also are working on thedevelopment of chemicals that improve resistance toenvironment stress factors that can present plant
growth such as drying due to insufficient water, lowtemperatures, and heat. Making continued contributions
to a stable global food supply requires that we increase
our profitability and expand the size of our business.
With this in mind, we set our mid-term business plan
“Advance to Growing Global 2018” through FY2018, in
which we outline goals for achieving 100 billion yen in
annual net sales by FY2021, becoming No.1 in Japanand becoming a global Top10 R&D-focused company inthe agrochemical sector.

Growing Global● Strengthen capability of creating

new active ingredients
世界で戦える優良企業へ

To become an outstanding globally competitive group● Improve business competitiveness● Enhance Group capabilities

Improve profitability
Shift forGrowing Global
成長へのシフトTo be a leading agrochemical company in the market share,business scale & profitability by having solid domestic baseContinuing to make contributions
as a global company

Promote growth strategies

Nichino GroupTo achieve the target sales of 100 billion yen

To be a globally outstanding company by expanding bases fordevelopment, production & sales in worldwide major market

Commitment of Top Management

The Nichino Group Vision

The Nichino Group Mission

Commitment of Top Management

Advance toGrowing Global
Target sales of

70 billion yen● Improve profitability of domestic
businesses● Improve cost competitiveness● Optimize expenses

Strengthen businessplatform● Develop and utilize humanresources● Build platform global operations

2 Progress of the Medium-Term Business Plan
● In India, Nichino India Pvt. Ltd. (formerly Hyderabad Chemical Pvt. Ltd.) launched sales of the insecticide flubendiamide, launched exportsof the isoprothiolane technical grade (fungicide) and the buprofezin technical grade (insecticide), and begun providing the buprofezin
technical grade to existing sales companies in India.
● In Brazil, Sipcam Nichino Brasil S.A. launched sales of buprofezin (insecticide) and fenpyroximate (miticide). The company became aconsolidated subsidiary and launched full-scale sales of the herbicide orthosulfamuron.
● In Japan, Major (wide spectrum fungicide) was launched to market (July 2016) and we completed (November 2015) the registration
application process for Parade (wide spectrum fungicide).

To our stakeholders
For several decades, Nihon Nohyaku has worked toearn the trust of all our stakeholders, including
customers, society, shareholders, and our employees.
As a manufacturer of agrochemicals, chemicals,
pharmaceuticals, and animal health care products,
through our Responsible Care activities we work tocontribute to the environment, health, and safety. To
reduce the impact our products have on theenvironment, our passionate and dedicated employees
works daily on research and development. We also
conduct enlightenment activities to promote the safeuse of agrochemicals and engage in social contribution
activities, including supporting the next generation by
providing scholarships to students at agriculturalcolleges.
We are promoting diversity by setting a goal of
having females account for at least 10% of managerial
positions. In FY2017, we reached 6.9% and evenmarked the promotion of a female to the position ofGeneral Manager. We also are hiring foreign nationals
and developing internal systems to promote flexible
workstyles. We work to ensure adherence to our

Corporate Governance Code. In addition to engaging
with investors and other stakeholders, we also holdseminars on agriculture and the agrochemical industry
with the goal of receiving opinions from outside
directors that will contribute to company management.
In November 2018, we will celebrate our 90th
anniversary. As the first agrochemical manufacturer inJapan, Nihon Nohyaku has evolved into an R&Dfocused company that is committed to introducing safer
and more effective agrochemicals. By continuously
implementing reforms in line with changes in society, we
finally have grown into a company that is able to fulfill
our mission of ensuring a safe and steady global foodsupply. Year by year, developing new agrochemicals
requires more time and costs but we will effectively
distribute management resources to ensure our ability
to continue contributing to a sustainable society andsupport Sustainable Development Goals. We would likeall of our stakeholders to expect future activities of the
Nichino Group.

CSR REPORT 201810

5 major crops in South Asia

Contributions to the Modernization ofAgriculture and Economic Development ofFarmers in India which is the World Grain Belt

Wheat
Wheat and cotton

Hemp
Rice

Nichino India
CottonNearly half of India’s land mass, some 150 million hectares, is used as agricultural land. The country’s rice
and wheat production volume are second to the world only to China (2014) and India is the world’s No.1 rice
exporter (2012, 2013), making India one of the world’s largest grain-producing nations.
On the other hand, despite a population of approximate 1.3 billion people and nearly 50% of the working
Tea
Annual rainfall
population being engaged in the agricultural industry, agriculture only accounts for 15% of the country’s GDP. As
1,000 mm
such, the Indian government is advancing initiatives aimed at modernizing agriculture and increasing incomes of
farmers.
Nihon Nohyaku has long supported efforts in India to make agriculture more efficient through our efforts to help
disseminate agrochemicals. We later adopted the policy aimed at increasing our contribution to India’s agricultureindustry by establishing our own production and sales structure and conducting enlightenment activities for Indian markets to promote the appropriate
use of agrochemicals. Under this policy, in 2015 we acquired India’s Hyderabad Chemical Ltd. and made the company a consolidated subsidiary. In
2017, we changed the company’s name to Nichino India Pvt. Ltd. in hopes of increasing brand recognition of the Nichino Group.
Mitsuhiro Kishida, who served as president of the company, and Toshitomo Tanaka, who as General Manager of Sales Department, Asia, hasspent many years involved in the Group’s business in India, discuss past initiatives and future direction for the market.
Reference JMAFF “Status of Agriculture, Forestry, and Fisheries in India” -Updated July 3, 2017
http://www.maff.go.jp/j/kokusai/kokusei/kaigai_nogyo/k_gaikyo/ind.html

With farmers in India (January 2018)

Toshitomo Tanaka
General Manager ofSales Dept., Asia,
Overseas Division11

CSR REPORT 2018

Contributing to a steady global foodsupply by developing the Indian
agriculture industry
Kishida - Nihon Nohyaku’s mission is to disseminate theagrochemical technology we have developed over the years aroundthe globe in order to contribute to increased crop production
efficiency, thereby responding to the global food demand caused by
explosive population growth. By providing agriculture technology to
India, which has a growing population, we can contribute to themodernization of India’s agriculture production. Also, contributing toagriculture industry in India, one of the world’s largest grain
exporters, will allow us to address global food demand. Thus far, wehave sold agrochemicals developed in Japan through local
agrochemical companies but we recently identified strategy to headto India and to get to know the market so that we can increase both
our contribution level and our own presence. We began this byacquiring Hyderabad Chemicals
Ltd., a company located in the city ofHyderabad on the Deccan Plateau.
We chose this company for the easeof aligning corporate cultures with
Nihon Nohyaku as well as for theiradvanced production technology andWith farmers in India (October 2017)
sales network. We later changed thecompany name to Nichino India.
Tanaka - Nihon Nohyaku’s history of business in India goes backnearly 30 years. India and Japan have different climates, soil, crops,
and its variety, pests and diseases. Also, selling agrochemicals in
India requires agrochemical registration, a process that involves
study of harmful effect on crops, crop residue study, and soil residue
study in India. We launched Fuji-One, a rice paddy pest control
agent, in India in 1998, but actual development and registration tooknearly 10 years before launching. We partnered with local
agrochemical companies to begin supplying technical grades ofactive ingredients for formulation in India. For sales, we emphasizedworking together to provide technological advisory regarding

appropriate usage amounts and methods. Indian crops, particularly
rice, tea, and grapes, are exported to various countries. In
developed nations such as the USA and EU countries, they check
residual amounts of agrochemicals at the border. If agrochemical
residual amounts exceed criteria, the produce is shipped back to
India. No matter how superior an agrochemical is, use exceeding
stipulated amounts or frequency can exceed desired efficacy andincrease the risk of residual amounts in crops. This would make thecrops ineligible for export, which would mean lost revenues for the
farmers. Technological advisory to ensure the appropriate use ofagrochemicals is vital to improving farmer’s income.

The proper use of new agrochemicals
will lead to the development of India’s
agriculture industry
Kishida - Nichino India actively holds farmer seminars. The goal isto get farmers to purchase our products and use them correctly.
However, we also provide education on general matters that
promote the safe use and handling of agrochemicals. This includes
instructing farmers to store agrochemicals in locked locations and towear goggles, a hat, and mask when spraying agrochemicals.
Tanaka - The farming community in India is based on a pyramid
type of hierarchal structure. There are a few advanced farmers
followed by middle-class formers, and below them are the generalfarming populations. Compared to when we began doing business inIndia 30 years ago, proper agrochemical use has become moreprevalent but there is still much need for further education. One thing
I learned from spending time there was that even if we technologicaladvisory to the wealthy farmers who own the land, the people doing
the actual spraying are theemployees working the land. I thinkin the future we will need to conduct
educational activities for those
employees as well.
Kishida - Nichino India aims tobuild a network that would enable
The farmer seminars
them to provide information related
to the safe use of agrochemicals directly to the individuals using
Nihon Nohyaku products. Proper use will result in the production ofhigh-quality crops and prevent the overuse that can ruin an entire
harvest. In the event, proper use is more profitable.
Tanaka - Currently, conditions in India are similar to Japan’s periodof rapid economic growth. Social wealth is growing and wages are
increasing, causing working populations to flood to urban areas andresulting in a decline in farm laborers. Such conditions have brought
about an age that requires more efficient agriculture, an age in needof new agrochemicals. In most cases, new agrochemicals arehigher in price but provide greater efficacy in comparison toconventional generics. This means a reduction in spraying
frequency and thus reduces labor expenses, which is more efficient.
Kishida - Looking at the structure of India’s industry, the majority of
the country’s GDP is represented by IT and finance. Farm laborers
represent nearly 50% of the country’s overall working population but
agriculture, forestry, and fisheries only contribute some 15% to thecountry’s GDP. To improve agricultural productivity, in February

2017 the Indian government introduced policies for doubling farming
salaries by 2022. The government is also supporting the appropriate
distribution of agrochemicals that are safe and that contribute toincreased yield.

Enhancing the agriculture value chain
in response to the national policy ofMake in India

Feature Contributions to the Modernization of Agriculture and Economic Development of Farmers in India which is the World Grain Belt

FeatureThe Nichino Group Mission

Annual rainfall 1,000 mm

Kishida - In addition to promoting agricultural development, theIndian government also introduced the Make in India strategy, a plan
to develop the manufacturing industry, which accounts for nearly
25% of the GDP. This strategy involves promoting the importing of
raw materials without importing finished products and increasing
added value through the domestic manufacturing of these raw
materials into final products. India’s manufacturing industry, including
the agrochemical industry, is on the cusp of major change. The
Nichino Group must stay ahead of these changes and strengthen
our agrochemical value chain. Nihon Nohyaku will build a global
structure for taking the technology seeds researched and developedin Japan and transfer them to Nichino India from an early stage inorder to grow this technology within India.
Tanaka - India is also seeing changes in food culture anddistribution. In the past, people mainly ate rice and beans, and it wasthought that being overweight was a symbol of being wealthy.
However, youths today prefer slim figures in the same was as people
in western countries, which is driving health-conscious decisions.
This is creating greater demand for fruit and vegetables, which areviewed as healthier.
At the same time, there is data to suggest that due to an underdeveloped refrigerated distribution network, nearly 40% of producethat cannot preserved is not being delivered to consumers and ends
up as waste. We believe we must look beyond crop production andexpand our vision to include the entire food chain. By viewing all ofagriculture as a business opportunity, we will seek to actively expand
our business opportunities.

Mitsuhiro Kishida
Executive Officer, Division Manager of
Production Division (previously Nichino
India Pvt. Ltd. President)

CSR REPORT 2018

12

The Nichino Group Mission

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.

(Basic Approach)*

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.

Message from our External Directors

Activity Report from Independent Officers

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

2. Corporate Governance Diagram

We have established “Basic Principles of the NichinoGroup” as the base for all our activities. On the basis of
the “Nichino Group Action Charter” and the Group
Vision, both in accordance with the basic principle, wehave established a corporate governance system tobecome a group of companies earning the trust ofvarious stakeholders (see diagram below).

In establishing the system, we complied with themeaning and spirit of the corporate governance code,
which has been incorporated into the Securities Listing
Regulations of the Tokyo Stock Exchange in Japan, andestablished the “Nihon Nohyaku Corporate Governance
Guidelines” to follow (November 2015).

Corporate Governance Diagram
General Meeting of Shareholders
Governance Committee

Board of Directors

Board of Corporate Auditors

PresidentInternal Audit Department
Management Committee
RC Promotion Committee

13

CSR REPORT 2018

Compliance Committee

Accounting Auditor

Corporate Governance1. Corporate Governance Guidelines

The Nichino Group Mission

Corporate Governance

Iwao Toigawa
External Director(Governance Committee
Chairman)

We are promoting our growth strategy to achieve
our Group Vision of being an R&D-focusedcompany with net sales exceeding 200 billion yen
and positioning ourselves as a global Top 10
company.
To achieve these goals, it will be vital that wefurther improve our corporate governance structure
in order to ensure that our business activities givedue consideration to the interests of our
stakeholders. This makes the role of Independent
Officers more important than ever.
To contribute to the company’s sustainable
development, we strive to provide the Board of
Directors with advice and recommendations
backed by expertise and experience.
Independent Officers actively exchange opinions
and engage in close communication among
ourselves concerning the status of and issues
facing the company, and actively express opinionsfrom perspectives and positions differing fromthose of internal officers.
Our activities are materialized in discussions andreports at the company’s Board of Directors, which
we work to ensure are easily comprehensible forExternal Directors (the company also ensures weare able to freely discuss the management of theBoard of Directors).
As members of the Governance Committee, theAdvisory Body to the Board of Directors, we
provide opinions and recommendations on theselection of director candidates, on executive
salary, and conduct efficacy evaluations for the
Board of Directors.
We are committed to contributing to thecompany’s efforts to earn the trust of stakeholders
and society.

Risk Management Committee

CSR REPORT 201814

Responsible Care activities

3. Management System

What is Responsible Care (RC)?

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 andcommunication 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.
This is an initiative that the global chemical industry is integrally promoting to safely manage chemical products
over their life cycles through its activities, such that chemical products can contribute to improving the quality of lifeand sustainable development.
We have 6 items of implementation for Responsible Care, namely “RC codes”, consists of “Environmental
Protection”, “Occupational Safety and Health”, “Process Safety /Disaster-Prevention”, “Logistics Safety,” “ProductStewardship (Chemical Materials and Product Safety)” and “Communication with Society” in Japan, we work to
improve activities through the continued implementation of the PDCA (Plan→Do→Check→Act) cycle.
Together with our domestic Group companies, we are engaging in the Responsible Care (RC)
activities being promoted by global chemical industries.
Our Group has established RC Mid-Term Targets and are conducting planned activities based on
RC promotion policies established by each of our domestic companies.

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

Nichino Service Co., Ltd.
Hyderabad Chemical Pvt. Ltd.*1
Nectar Crop Sciences Pvt. Ltd.*2
Sipcam Nichino Brasil S.A.

ISO14001(Environment Management System)

Nichino Service Co., Ltd.
Hyderabad Chemical Pvt. Ltd.
Nectar Crop Sciences Pvt. Ltd.
Sipcam Nichino Brasil S.A.

OHSAS18001(Occupational Safety & Health Management System)

Nichino Service Co., Ltd.
Hyderabad Chemical Pvt. Ltd. (Balanagar)
Nectar Crop Sciences Pvt. Ltd. (Humnabad)
Sipcam Nichino Brasil S.A.
Japan EcoTech Co., Ltd. (Osaka Analysis Center)*1 Currently Nichino India Pvt. Ltd.
*2 Currently Nichino Chemical India Pvt. Ltd.

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

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 2018, the RC
Global Charter has been signed by 578 companies
around the world. The ICCA* maintains a list of
signatories on its website.

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

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)

Safety Promotion Panel

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

Environment Management Panel

Logistics Safety* International Council of Chemical Associations

RC Global Charter

Responsible Care Organization Diagram
President of Nihon Nohyaku
RC Promotion
Committee

Company name (applicable office)ISO9001(Quality Management System)

ISO17025(General requirements for the competence of testing and calibration laboratories)

1. RC Promotion Diagram 2. RC Global Charter
Our RC activities are conducted under our Corporate
Governance System. The RC Promotion Committee,
which also includes participation from therepresentatives of four of our domestic consolidated
subsidiaries, governs activities for the entire the NichinoGroup. Specific activities are promoted by five panels
based on specific RC categories (figure below). We are amember of the JCIA RC Committee and we haveregistered four domestic consolidated subsidiaries withthe committee as affiliate companies. The Environmental
Safety Department of Nihon Nohyaku conducts annual
RC audits of each plant, including those four companies.

Responsible Care activities supporting sustainable development

Supporting sustainable development

Safety and Health Supervisors Panel
Quality Management Panel

1. Continuing zero serious logistics accident (scattering/spillage)
2. Enhancement of logistics conference with logistics companies

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)

Poisonous Material Management Panel*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)

15

CSR REPORT 2018

CSR REPORT 201816

2) FY2017 Activity Results and Internal Evaluation

Responsible Care activities supporting sustainable development

Responsible Care activities supporting sustainable development

3) FY2018 Activities

We actively engaged in activities aimed at achieving our Group Vision and the 2nd year benchmarks for our RC
Mid-Term Targets.
FY2017

RC Activities

GeneralResults

1. Information exchange related to integrated RC 1. Visited Hyderabad Chemical Pvt. Ltd. (former name) to provide
activities into overseas plants
information on RC activities.

Evaluations
*1

Page

19-22

1. Achieving zero accident causing lost worktime, 1. Achieved zero accidents with workdays lost. Zero automobile
and achieving zero traffic accident during work
accident (including minor damage due to flying objects) has not
Occupational
commutingbeen achieved (previous year 47 accidents→38 accidents).
Safety & Health, 2. and
Maintaining zero serious accident on the
2. Zero serious accident in production facilities has been achieved
Process Safety production facilities
continuously.
& Disaster 3. Conducting comply of risk assessment
3. The information on risk assessment method of chemical
Prevention
corresponding to the revised Occupational
substances has been provided, and risk assessment has been
Safety and Health Law in Japan
conducted at each business site in Japan.

23-25

1. Continuing zero serious accidents (scattering/
spillage) in logistics
2. Strengthening of communication with logistics
companies
3. Continuation Yellow Cards and White Cards
4. Promotion of modal shift *4

1. Continue achieving zero serious accidents caused by scattering or
spillage has remained to be zero.
2. Information exchange meetings have been held among the SCM
Department of Nihon Nohyaku, each Nichino Service Plant andrelated logistics companies.
3. Continued all logistic companies and drivers Yellow Cards andWhite Cards which includes product safety information.
4. Increased small-lot shipments despite focus on modal shift.

1. Consideration of RC activities with focus on SDGs
1. Promoting energy conservation (goal: Reduction of 1% or more per year of energy consumptionunit), Continuation of study on the calculation methods for consumption unit, continuation of theevaluation of consumption unit based on the form of business, and reduction of CO2 emissions.
2. Maintain green purchasing rate of 95% or higher, improving green procurement rate
3. Promotion of 3Rs* for waste reduction, maintainance and expansion of zero emissions
4. Continuation of initiatives for a low-carbon society (Locavore), Consideration of Fun to Shareinitiatives
5. Grasp the energy conservation goals of the local governments group companies are located and thestatus of energy conservation activities of overseas group companies and its national goals ofenergy conservation
1. Maintaining zero accident with workdays lost, conducting of education and training aimed at

3. Visualization of risk assessment corresponding to the revised Occupational Safety and Health Law

Logistics Safety

1. Conduct of training to maintain zero serious accident caused by scattering or spillage
2. Strengthening of communication with logistics companies: holding regular logistics conferences withtransport and warehouse companies
3. Continuing to provide of Yellow Cards and White Cards
4. Continuing to promote modal shift

Product Stewardship (Chemical
Materials & Product Safety)

1. Continuing effort to eliminate PRTR inert ingredients in new formulated products. Substituting 50%
of NPE in existing products (We already stopped using NPE to new formulated products.)
2. Continuing of appropriate management of chemical substances, conduction necessary educationand training
3. Conduct risk assessment, Continuing of measures to prevent accidents due to chemical substances
4. Provision and sharing of SDS information internally and with domestic and overseas subsidiaries
5. Continuous providing information on new regulations of chemical substances

Communicating with society

1. Continuing of participating in community activities, Collaboration with the local community andimproving the environment condition around the establishment
2. Expanding RC activities to overseas subsidiaries
Investigation on development of activities to overseas group companies (RC information provision,
surveillance on environment and occupational safety, etc.)
3. Issuing CSR report
4. Receiving JCIA inspection for CSR report 2018
5. Participating and promoting activities towards VISION 2025 of JCPA (for example voluntary improving
product labels)26

1. Creation RC report 2017 with a view to CSR
1. Issued RC report (April 2017) and English version of RC reportreport and creation English version of RC report(September 2017).
2. Investigating the planing for JCIA inspection on 2. Planned of JCIA inspection on CSR report 2018(March 2018).
RC activites in each site or CSR report
3. Each business site supported local community welfare and3. Establishment of environmental maintenancecommunity events.
Communicating
and improvement around business sites
4. Participated in each committee of JCPA and conducted education
with Society
interacting and corroborate with local
ensure compliance and proper use of agrochemicals.
communities
4. Participating and promoting activities towards
Japan Crop Protection Association (JCPA)VISION 2025

29-32

*4
*5
*6
*7
*8

Major topics

achieving zero traffic accidents during work and commuting
Occupational Safety & Health,
Process Safety & Disaster Prevention 2. Conduct maintenance and inspections to keep zero serious accidents at production facilities

26-28

*3

GeneralEnvironmental Protection

1. Continue effort to eliminate PRTR*5 inert
1. 4 new products, not containing NPE have been launched. The
ingredients in new formulated products
NPE replacement study continued.
Substituting 50% of NPE*6 in existing products 2. Continued establishment of SDSs under GHS for export.
Product(We already stopped using NPE to a new
Collaborated with overseas subsidiaries with updating of SDSs
Stewardshipformulated products)
under GHS for their products, and creation of SDS-related(Chemical 2. Continue of the aggressive revision of MSDS*7
documents.
Materials &to SDS*7 under GHS*8
3. Provided SDS and other environmental and safety information to
Product Safety) 3. Promote SDS information provision anddomestic and overseas affiliates. Continued updating of SDS
sharing internally and with domestic andunder GHS
overseas subsidiaries in the Nichino Group*1*2

RC Activities—

1. Promoting efficient energy consumption
1. Energy consumption unit: Nihon Nohyaku (-3.4%), Nichino
Promotion of energy saving, reduction of energy
Service (-6.3%) CO2 emissions: Total for Nihon Nohyaku andconsumption unit 1% or more per year, reduction
Nichino Service (+3.8%). Evaluated method for correctingof CO2 emissions and considering evaluation
external factors related to fluctuations in the consumption rate at
the Research Center.
method for energy consumption efficiency
2. Registered by sites and facilities of the Nichino Group in Japan
2. Registration for national movement “Fun toduring FY2017.
being promoted by JME
Environmental 3. Share”
3. Waste amount increased
Promote waste reduction, Maintenance andProtection
Zero emissions: Nichino Service Saga Plant has continued to
expansion of zero emissions
meet the goal for over 10 years, Kashima Plant and Fukushima
4. Green Purchase Rate of 95% or higher
Plant for the fourth consecutive year.
5. Improvement of green procurement rate under
4. Green purchasing rate at 99.3% (previous year: 97.4%)
new standards
6. Expansion of in Locavore*2 activities in order 5. Green procurement rate at 94.6% (previous year: 91.9%)
6. Questionnaires continued on “Number of times of one pot dish”
for CO2 reduction and energy conservation
and “Energy conservation that can be done at home”*3.

Logistics
Safety17

Major topics* Stands for Reduce, Reuse, and Recycle of waste.

Internal evaluation of actual results:
Achieved
Partially achieved
Not achieved
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.
Switching the transportation of raw materials and products from trucking to rail freight and transshipment with less CO2 emissions.
Pollutant Release and Transfer Register
Polyoxyethylene nonylphenyl ether
Material Safety Data Sheet, Safety Data Sheet
Globally Harmonized System of Classification and Labelling of Chemicals

CSR REPORT 2018

CSR REPORT 201818

RC activities supporting sustainable development

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
*2

*3

*4

*5
*6

*7

*8

Purchased electricity calculated as
crude oil equivalent.
Amount of heavy oil, light oil, kerosene,
gasoline, city gas, LP gas, andpurchased steam are expressed in
crude oil equivalent.
Total sum of tap water, well water, andindustrial water for Research Center,
Osaka Office, and Nichino Service
Plants.
Product amount = (technical grade
production amount) + (formulation
production amount) - (technical grade
amount used for formulation production)
Used emission factors were referred to
the Act on Promotion of Global WarmingCountermeasures.
Includes data for Japan EcoTech(Fukushima / Osaka Analysis Center)(Aggregation period: April 2016 - March2017).
Containers and packaging amount ofagrochemical products for home andgarden use sold during the 2017 fiscal
year.
Amount consigned to the Japan
Containers and Packaging Recycling
Association

INPUT

OUTPUT
Products*4

Raw material

10,450 t

17,222 t

Atmospheric emissions

Packaging material

Dust 6.0 t NOx 17.3 t
SOx 1.4 t CO2*5 11,022 t

Production
Circulated
use forproduction
181 t

2,801 tEnergy (crude oil equivalent kl)

Due to a significant increase in production amount,energy consumption (crude oil equivalent) increase by
6.5% from the previous year and CO2 emissions
increased by 3.8%. Also, water consumption increasedby 10.3% from the previous year due to the increase inproduction amount. The 166,000 m³ of waste water
shown in the figure represents a 6.8% increase over theprevious year and the COD pollutant load of 7.3 t was
an increase of 41.7%.
Production amount (t)Energy consumption (crude oil equivalent kl)
CO2 emissions (t)Waste water
Volume 166,000 m³ COD 7.3 t

16,00011,910

Amount 6,543 t
Rate of recycling 86%
Final landfill 149 t

Water*3 212,000 m³

12,00011,2648,000

Released 0.2 t Transferred 47.8 t

4,000

0

Railway 322 t Ship 2,002 t
Truck 27,253 t

Logistics

Use/Disposal

Mandatory contains and packaging*7 1.3 t
Recycling*8 0.1 t

CSR REPORT 2018196

11,19911,022

10,545

11,404
6,774

244

9,830
5,606
168

900

10,450
9,005
5,427

5,780

192

212

Nihon Nohyaku

Nichino Service

Upper limit for goal achievement

110

100

90

93

FY2013

90

91

600

300

88

FY2014FY2015FY2016FY201770*1*2

NOx (t)SOx (t)Dust (t)

20

5

83

80

0

FY2013

FY2014FY2015FY2016Rate of recycling (%)

89

87

78

17.3

2,000

0

85

86

100

6,543
75

5,385
4,233

3,763

4,000

1,079

1,160

949

50

839

918

300

139

145

144

149

FY2013

FY2014FY2015FY2016FY201725

0(3) Survey and inspection of waste disposal contractors
We select contractors capable of the proper waste
disposal and conduct surveys and inspection of final
landfill sites periodically.

(4) Waste containing PCB
11.8
9.4
6.0

85

Total waste (t)Recycled (t)Final landfill (t)03) Emission to Atmosphere89
89

All plants separate waste and worked to reduce final
landfill by practicing the 3R(reduce, reuse, and recycleof waste) system. Final landfill amount from the
Research Center increased due to an increase intesting soil. The Nichino Service Fukushima Plant,
Kashima Plant, and Saga Plant all achieved zero
emissions.
The rate of recycling was 86%, representing a minor
increase compared to the previous year.

4,108

10

93

(2) Reduction of final landfill

6,000

15

102

The amount of waste increased by 74% due toincreased operations at the Research Center andincreased production at Nichino Service plants.

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

Nitrogen oxides (NOx) emissions derived fromexhaust gasses from boilers, etc., increased by 13.3 tfrom the previous year due to a major increase in facility
operation but we adhered to exhaust level standards.
Sulfur oxides (SOx) and dust emissions also increased
but both were at relatively low levels.

Index of efficiency of Energy Consumption *2(1) Amount of waste

8,000Transported by

1) Efficiency of Energy Consumption

19

6,014

PRTR Substances*6

2. Environmental Impact
Nihon Nohyaku and Nichino Service are promoting
energy conservation with the goal of lowering ourenergy consumption unit by 1% or more compared tothe previous fiscal year. During FY2017, bothcompanies achieved this goal (Nihon Nohyaku 3.4%
reduced and Nichino Service 6.3% reduced), indicating
favorable progress in our energy conservation efforts. In
particular, the five-year average of year on year changeof energy consumption unit at Nichino Service reached
the voluntary benchmarks defined by the government.
As a result, Nichino Service was officially recognized forexcellence in energy conservation (S Class) for thesecond consecutive year under the JMETI*1 BusinessClassification System. We also began conducting
efficiency of energy consumption evaluations at otherdomestic Group companies as part of efforts to optimize
energy consumption.

1,200
13,101

Waste

Electrics*1 3,646 kl
Fuel etc.*2 2,134 kl

Water consumption (1,000 m³)

4) Waste

Environmental Protection

1.

2) Status of Energy Consumption, CO2 Emissions,
Water Consumption, and Waste Water

RC activities supporting sustainable development

Environmental Protection

3.2

4.0

3.2

0.8

1.0

0.8
0.4

FY2013

FY2014FY2015

4.0
1.4

0.8
0.4
FY2016FY2017

We have stored strictly highly concentrated PCB
waste and waste containing minimum amounts of
PCB*, under strict leakage prevention system anddispose systematically in accordance with the Act on
Special Measures concerning Promotion of Proper
Treatment of PCB Wastes.
* Refers to electrical device waste products that unintentionally contain minimum
amounts of PCB, manufactured after the termination of PCB manufacturing.

FY2017

Japanese Ministry of Economy, Trade and Industry
Index for each fiscal year when the efficiency of energy consumption for
FY2010 is set as 100.

CSR REPORT 201820

RC activities supporting sustainable development(Cumulation period: April 2016 - March 2017)(1) Released*3 amountWith the increase in production amount and using fortesting and research, released amount increased by
12.4% compared to the previous year.

(2) Transferred*4 amountTransferred amount increased by 10.7% compared tothe previous year due to increased handling andchanges produced items.
Released (t)

2.0

80
55

49

50

48

43

53

60

1.0
0.5
0.0

*1

*2
*3
*4
*5

Rank
Current Y Previous Y
1
1
2
3
3
2
4
4
5
5
5
10
5
6
8
19
9
20
10
8

Transferred (t)

68

1.5

Released and transferred amount: Top 10 substances by amount

40
0.24

0.19

0.17

0.18

0.17

0.18

0.20

2010

2011

2012

2013

2014

2015

2016

20
0

(April to March)

PRTR is an abbreviation of Pollutant Release and Transfer Register, defined
under the Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances into the Environment and Promotion of
Improvements to the Management Thereof.
Scope of calculation includes Japan EcoTech Fukushima and Osaka
Analysis Center.
Release to atmosphere, public waters, soil, and landfill.
Transferred to sewer works, consignment of disposal to a waste disposal
contractor (excluding amount shipped as commercial products).
All agrochemical technical grades.

Rank
Current Y Previous Y
1
1
2
3
3
4
4
5
5
6
6
8
7
2
8
7
9
10
10

9

Released amount
Substance name(kg)n - Hexane
XyleneTriethylamine
Ethylbenzene
1,2-Dichloroethane
Isoprothiolane *5
Buprofezin *5
Fenitrothion *5
Tebufenozide *5
Acetonitrile
Other
Total

90.0
21.0
14.0
12.0
10.0
10.0
10.0
9.0
6.0
4.7
10.4
197.1

Transferred amount
Substance name(t)

Chlorobenzene
Xylenen - Hexane
Acetonitrile
Ethylbenzene
Isoprothiolane *5
Oxine-copper *5
Water soluble compound of zinc
Flutolanil *5
Poly (oxyethylene) = alkyl ether (limited tothose having 12 to 15 carbon atoms in thealkyl group and said compounds)
Other
Total

29.1
5.5
4.0
3.6
3.4
1.3
1.1
1.0
0.6
0.4

Total facilities investments related to upgrading toenergy efficient equipment and new productdevelopment were 78 million yen (down 69.4% fromprevious year). On the other hand, personnel, facility
maintenance, and related expenses*1 were 775 million

yen in total (up 5.3% from previous year). Of those
expenses, 521 million yen (68% of expenses) wererelated to environmental protection spending within R&D.
Environmental protection is one of the most importantsocial responsibilities of a corporation, and we willcontinue to allocate appropriate expenditures forinvestments and expenses.

Details of major initiatives(1) Pollution prevention
Prevention of air pollution, water pollutant, bad odor
1. Costs
within(2) Global environmental protection Prevent global warming by energy conservation
businessarea(3) Resource recycling
Industrial waste, general waste disposal

6(

-7)*2

122 ( -4)

48 ( +15)

8 ( +8)0 (-207)110 ( +4)

Cost of switching to environmental conservation type raw materials

00

3. Management activity

Research Center, office neighborhood greenification, environmental load monitoring0

13 ( +1)

4. R&D costs

R&D for products contributing to environment protection

24 ( +22)

521 (+31)

5. Social activity costs

Donations/support for organizations involved in environmental protection

0

6. Environment damage response costs Pollutant recovery costs

0

Total

78 (-177)*2

21

Investments (million yen) Expenses (million yen)

2. Upstream/Downstream*100775 (+39)

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).
( ) indicates change from previous fiscal year, no figures indicated if unchanged.

CSR REPORT 2018

DetailsYoY Changechange(%)

Item (unit)

Dust
(t)
NOx
(t)
SOx
(t)
COD
(t)
(t)
GlobalGreenhouse effect gas CO2
Energy (crude oil equivalent) (kl)environmental emissions Energy/
protection
water usage rates
Water(1,000 m³)
Amount(t)Resource
Waste
recycling
Final landfill amount (t)Air/water
Pollution
pollutantprevention
emissions

+5.1
+13.3
+1.0
+2.4
+477
+353
+20
+2,780
+5

+606
+337
+258
+48
+5
+6
+10
+74
+3

4. Activities towards Green Purchasing and Green Procurement
Nihon Nohyaku is enrolled in the Green Purchasing
Network, through which we proactively promote green
purchasing by our domestic Group companies. Our
green purchasing rate for our entire Group is 99%,
surpassing our goal (95% or higher). In addition toconsideration of quality and price, we will continue topromote the purchasing of items and materials
contribute to reducing environmental load. We also
improved our green procurement rate from 92% lastyear to 95%. This is based on new our green
procurement standards established in FY2016. We willcontinue efforts 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) Providing SDS (Safety Data Sheet) or equivalent GHS-related information.
B1) Actively promoting environmental conservation*1.
B2) Suppling products with less environmental impact and withouthighly hazardous substances*2.
B3) Not using any highly hazardous substances during processing
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
Classification

We worked to promote energy conservation but due
to an overall increase in work volume, particularly an
increase in production (116% YoY), we recorded
increases for all categories, including energy
consumption and CO2 emissions.

Effect
item

2.9
52.9

3. Environmental Accounting
1) Environmental Protection Costs

2) Environmental Protection Effect:
Improvement Achieved throughInvestments and Expenditures forEnvironmental Protection

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

RC activities supporting sustainable development

Environmental Protection

Since 2010, we complying with the Action Plan for
Low-Carbon Society led by the Japan Business
Federation (Keidanren). We promote CO2 emissions
reductions alongside with following initiatives.

(1) Supplying renewable energy
We installed a solar power generator in Nichino
Service Saga Plant. All power generated by the facility(1,676 MWh) is sold to power companies, which
contributes to CO2 emission reductions by reducing theoutput coefficient of the power company.

(2) Registration with Fun to ShareIn FY 2017, all our domestic Group companies
registered with “Fun to Share”, a national initiative
promoted by the Ministry of the Environment. Our
involvement in Fun to Share includes an activity
declaration that centers on our Group common theme of“Locavore”, our original social contribution activity. We
will continue to raise awareness of global warming
countermeasures and participate in environmental
protection activities.

(3) Promoting Locavore
We engage in “Locavore”, our unique Group social
contribution activity. We can reduce food mileage byincreasing consumption of agricultural and marine
produce for which the country has a high rate of selfsufficiency. To promote this initiative, we hold a contest in
the winter to see who makes a one pot dish (nabe) themost times. This year there were 366 participants andthe winner made a one pot dish meal 83 times(December to February).
In the summer, we conduct a survey on “Energy
conservation that can be done at home”, which had 533
participants (August). Participants increased from theprevious year and we contributed to raising awarenessfor CO2 reduction in the home.
Number of one pot dish contest participants.

400

305

341

350

FY2014FY2015394

366

FY2016FY2017200
0FY2013

CSR REPORT 2018

22

1.

Occupational Safety & Health

1) Efforts to Create a Pleasant Workplace
and Protect Human Rights
In addition to promoting opportunities for women in
the workplace (p.6, p.10), our Group respects
fundamental human rights, including rejection anddenouncing child labor, and we proactively pursue
globalization with a focus on diversity. We believe
mutual understanding and respect are key in anenvironment that involves in dealing with various
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
employee health and address the issue of work-lifebalance, we have established various programs,
including setting goals for using paid time off, providing
full physical examinations for employees over age 40,
allocating refresh vacations and travel coupons basedon the number of consecutive years of employment, along-term sick leave system, half-day paid 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 childnursing care leave, company-sponsored provision ofallowance during childcare leave period, etc.) shorter
working hours for childcare, shorter working hours for
expectant and nursing mothers, family care leave, andvolunteer leave. To respond to diversifying workstyles,
we adopted a flex-time system designed based on therecommendations of an expert committee. Moving
forward, we also will evaluate a telecommuter system.

2) Promotion of Safety and Health Management
All sites hold regular safety and health committee
meetings, through which we check on the status ofgoals, 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 tocreate a system that allows employees the opportunity
to consult with experts on mental health and otherissues. At offices without a dedicated industrial
23

CSR REPORT 2018

physician, we use web conferencing systems to enablesessions with the Head Office industrial physician. We
also use external contractors to establish the NichinoGroup Consultation Desk, where employees and theirfamilies can consult on all types of health issues,
including mental health. To address the stress checkmandated by the government in 2016 in Japan, we
conducted group analyses and provided sessions
conducted by external specialists for all employees ofcertain departments. These efforts promote a better
work environment for our employees. We also
proactively encourage and have a high level ofparticipation among applicable employees for the
specified health guidance and data health plan
sponsored by our Health Insurance Society.

3) Expenses for Safety & HealthIn FY2017, total expenses were 25.2 million yen,including 13.6 million yen for health examinations, 10.1
million yen for industrial physicians, and 1.5 million yen
for vaccinations, including influenza countermeasures,and mental health. We will continue to allocate
necessary expenses to improve safety and health, andtowards mental health.

4) Working Condition Improvement at
Production Sites
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” andvoluntary 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.

5) Incident Rate*1 and Record of Zero-Occupational Accident*2
There was no accident with workdays lost,
unfortunately there were six accidents without workdays
lost that occurred at domestic Group companies (sixaccidents in the previous year). The total incident rate
for the Research Center, the Osaka Office, and Nichino
Service was below the average levels for the
manufacturing industry and the chemical industry. We
will continue to promote the prevention of work-related
injuries as we aim for zero accidents.

Incident rate

0.20
0.15
0.10
0.05
0.00

Record of Zero-Occupational Accident
Total No. of Total hours(1,000 hours)
Days

Site
Nihon Nohyaku

Nichino Service

Research Center

2,620

297

Osaka Office426

8

Fukushima Plant

1,342

228

Kashima Plant

1,566

360

Saga Plant

6,575

2,752

Total for Research Center, Osaka Office, NS Plants
Chemical industry*3
Manufacturing industry*3

*1
*2
*3

0.036
0

0.003

FY2012FY20130
FY2014FY20150.006
FY20160
FY2017

Occupational Safety & Health, Process Safety & Disaster Prevention

Occupational Safety & Health,
Process Safety & Disaster Prevention

RC activities supporting sustainable development

RC activities supporting sustainable development

A scale for indicating the severity of work-related injuries calculated using
the formula [workdays lost/total work hours (per 1,000 hours)]
Record of No. of days and work hours without an accident with workdays lost.
Referenced from FY2016 Survey on Trends in Work-Related Accidents(Office survey (offices with 100 or more employees) and general
construction business survey) (April 25, 2017: MHLW).

2. Process Safety & Disaster Prevention
1) Disaster Preparedness

4) Training for Emergency

At Nihon Nohyaku and Nichino Service, we
conducted initial response training based on theassumption of a fire at Nichino Service Kashima Plant.
Training involved cooperation by several offices. We
established an emergency response headquarters at
the Nihon Nohyaku Head Office and confirmedfunctions and roles, and tested the safety confirmation
system to validate efficacy. (September 25, 2017)

We regularly conduct training at each site to ensure
our ability to respond appropriately in the event of an
emergency.
Topics are introduced below.

2) Created Overseas Risk Management System
With the goal of further enhancing the Nichino Groupoverseas risk management system, we createdregulations and procedures outlining detailed response
measures in the event of an emergency situation
involving employees traveling on business or assigned
overseas (October 25, 2017). We will work as a Groupto prepare for diverse and increasing risks overseas.

Nihon Nohyaku
At the Head Office, each year we participate in joint firefighting
drills held by our building to prepare for responses in the event ofan emergency.
At the Research Center, we conducted large-scale disasterprevention training, including training for calling the fire department,
and participated in firefighting skill improvement training held by thefire department.
At the Osaka Office, which took over the system in place by theformer Nichino Service Osaka Plant, in addition to disasterprevention trainings we also conducted leak response training toaccount for the site’s role as a logistics center.

3) Safety Management of Facilities
We conducted planned risk assessments andmandated inspections for facilities and equipment. We
monitor waste water based on voluntary 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.

Firefighting & evacuation drills (Head Office: July 21, 2017)

CSR REPORT 201824

Occupational Safety & Health, Process Safety & Disaster Prevention

Nichino Service
At each site, we conducted firefighting training and emergency
response training to address raw material or product leaks caused
by natural disaster or accidents.

RC activities supporting sustainable development

Logistics Safety, ProductStewardship (Chemical Materials & Product Safety)

RC activities supporting sustainable development

RC activities supporting sustainable development

Large-scale disaster prevention training (Research Center - November 2, 2016)

Emergency situation training (Nichino Service Fukushima Plant - September 6, 2017)

Firefighting skill improvement training (Research Center - October 19, 2016)

Disaster prevention training (Nichino Service Kashima Plant - September 5, 2017)1) 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. Since FY2010,
we created and provided White Cards that is printed
backside of invoice, indicates the similar information asa Yellow Card, enabling a uniform system ofmanagement that promotes logistics safety.

Transported amount of products and intermediate
agents increased from the previous year as CO2
emissions related to logistics were 2,324 t (153% YoY).
To reduce CO2 emissions, we are progressing with amodal shift to convert the method of transport between
Nichino Service Plants from trucking to railway freight or
marine transport. Our modal shift rate* in FY2017 was
9%, down 2 points from the previous year. This wasdue to an increase in the volume of small-lot shipments
via truck. We will continue to focus on transport thatemphasizes this modal shift.

(Front)(Back)* 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 (%)

18,58820,00015,00010,00014,384

13,762

10,923

9

0

20

15
11

10

9

9,288

9

5,000

Disaster prevention training (Osaka Office - September 28, 2017)

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

1. Logistics Safety

105FY2013

FY2014FY2015FY2016FY20170

Our original invoice with the “White Card” information
Emergency situation training (Nichino Service Saga Plant - July 12, 2017)5) Other Efforts for Safety Operation

Leak response training (Osaka Office - September 28, 2017)

The Research Center worked to increase overall
safety awareness, including holding a seminar by the
Research Center General Manager titled “4-4 Feel
Safety Day at Nihon Nohyaku” that reviewed past
accidents and safety driving training .

Safety driving training (Research Center - June 16, 2017)25

CSR REPORT 2018

2. Product Development Considering Environment / Safety and Animal Welfare1) Development of Safe Agrochemicals
Agrochemicals used today must not only protect
crops from pests and weeds, but also must give due
consideration to the impact on human andenvironmental organisms. We conduct R&D with thegoal of developing agrochemicals from the perspectiveof the environment, safety and health. In recent years,
we have been promoting an accelerated and multifaceted approach to safety research during the
exploratory research phase. This not only enables an
early evaluation of various risks, but also leads toincreased awareness regarding the environment,
safety, and animal welfare. During R&D, in addition to
performance of evaluations, we also conduct safety
evaluations based on testing for over 30 criteria basedon the latest science, including toxicity, environmental
impact, and residual effects. After this process,products must be approved and registered in each
respective country before being launched to market. To
ensure the safety of inert ingredients in agrochemical
agents, we also are conducting the planned response
for EU regulations for new and existing products(REACH*). Furthermore, we engage in broad-based RC
activities in every stage of our business activities, from
R&D to production, sales, logistics, use, disposal, andrecycling, to ensure product safety. With increased
operations overseas due to our expansion of overseas
offices, we are ensuring compliance with theenvironmental laws and regulations of each country andconducting environmentally, safety, and healthconscious R&D based on this registration systems.
* Registration, Evaluation, Authorization, and Restriction of Chemicals: EUcomprehensive system for the registration, evaluation, approval and restrictionof chemical substances.

CSR REPORT 201826

RC activities supporting sustainable development

R&D staff from Group companies in North and SouthAmerica, Europe, and Asia regularly gather in Japan toexchange information on the conditions in each country/
region to promote product development founded inmutual cooperation.
To promote environmental safety, we published“Chemical Development for Overseas Markets” asvoluntary global development standards. We alsoestablished advanced voluntary standards for countries
and regions where agrochemical registration
parameters related to safety do not meet the standards
outlined by the Organisation for Economic Co-operation
and Development (OECD). Through these standards,
we outline clear policies for ensuring the safety ofworkers and the environment (November 27, 2017).

3. Raw Materials and Products Safety Management
1) Management of Safety Data Sheet(SDS) for Globalization
We have created and provided SDS for
approximately 700 items with the goal of ensuring thesafe handling of our agrochemicals and other chemical
products, and preventing work-related injuries and otheraccidents. We also obtained and created digital
versions of SDS for all raw materials and products, tocreate a system that allows relevant departments at the
Research Center and Nichino Service to obtain andbrowse this information via our internal LAN.
For the products we have developed, we havecompleted SDS revisions based on the latest JIS
standards. Overseas, we are responding to theregulations of each country to address GHS response
requirements outlined in laws related to chemical
substances in the EU, Korea, China, and the USA. We
are cooperating with our Group company Nichino
Europe Co., Ltd. to revise SDS for the EU into REACHcompliant SDS based on the latest CLP regulations*.
* EU regulation on classification, labelling and packaging of substances andmixtures: Classification methods based on GHS were adopted and have
gradually been applied since December 1, 2010. There is a need to conformproduct labels, SDS, etc. for chemical substances distributed within the EU to
CLP regulations.

27

CSR REPORT 2018

What is GHS

Abbreviation for Globally Harmonized System ofClassification and Labelling of Chemicals, which isrecommended by the UN in July 2003, GHS outlines thefollowing.
1. Classifying the hazards of chemical substances andtheir mixtures in accordance with a methods anddefinitions that are globally common.
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 understandby the global standardization of these classifications
and labeling.

2) Agrochemical/Chemical Substance
Quality Management

4) Response to Poisoning andEnvironmental Accidents

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 has
obtained ISO9001 certification as part of its efforts tomaintain and improve quality. Pharmaceutical GMP(production management and quality control standards)
was an issue during the previous fiscal year. We
promoted use of the PDCA cycle to improve the GMP
management system for our production ofpharmaceutical raw materials. We underwent
reexaminations for GMP conformity by the
Pharmaceuticals and Medical Devices Agency and theIbaraki Prefectural Department of Pharmaceutical
Affairs, and were recertified as being GMP-compliant(November 29, 2016). We will continue working to
improve quality.
We use the internal visualization of response status
for claims received in relation to our products topromote rapid and accurate response. Although thenumber of claims has fallen compared to the 45 to 65
claims received several years ago but FY2017 productclaims did increase by 4 claims year on year to 31
claims.
We conduct risk management for product liability (PL)to prevent PL issues.

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 FY2017, there were 14 inquiries madeto the JPIC. We also received 5 inquiries for hazardous
information. We rapidly provide various information aspart of our efforts to use information to improve productsafety.
During FY2017 as well, we have no poisoning
accident or environmental accident, and no requiring
official report under the Consumer Product Safety Act.

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

2) Creating Environmentally-conscious Products Based on Global Standards

RC activities supporting sustainable development

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

Activities Promoting the Proper Use ofAgrochemicals
Practice Strict Compliance! 7 Basic Rules

1. Make sure to fully read labels and user manuals prior
to use.
2. Make sure to convey usage plans to neighbors prior
to use if planning to use in residential areas or othersurrounding areas.
3. Make sure to use agrochemical protective gear,
including masks and gloves.
4. Make sure products do not spray or run outside thefarm area.
5. Make sure to create a record of use.
6. Make sure to separate from food and store in locked
storage.

3) Eliminating NPE and Reducing
PRTR Substances

7. Make sure to properly dispose of empty containers
and other waste.
Japan Crop Protection Association

Poly(oxyethylene) nonylphenyl ether (NPE) is
categorized as an endocrine disrupting substance that
degrades into the environment. As such, we haveeliminated NPE as an inert ingredient in new products
and are progressing with the elimination of NPE fromexisting products. In FY2017, we released 4 new
NPE-free products and removed NPE from 1 existingproduct. We also are working to reduce PRTR
substances during new product development.

CSR REPORT 201828

Communicating with Society

2. Relationship to Society1) Customer Consultation Service
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 agrochemicals. Inquiries regarding
products other than agrochemicals are responded to by
the relevant department.

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

Pharmaceuticals, Animal Health Care products
TEL. +81-3-6361-1418

2) Disclosure of Business Information
To promote understanding of our business activities by
as many stakeholders as possible, we work to provide
accurate and timely information disclosure and toenhance disclosed information. We continuously review
information content and update information asnecessary.

Kawachinagano Local Manufacturers Exploration

Cooperation with the neighboring irrigation association in the canal cleaning

Our Research Center was introduced in a feature
titled “Kawachinagano Local Manufacturers
Exploration” in the Kawachinagano City Magazine (April2017). It is a series featuring a full-page article (backpage) for which the magazine visits the production sitesof businesses operating in the city to introduce theirtechnology and creativity. This issue marked the 18th
edition of this series. The article features an interview
with General Manager of Research Center and photos
for easy introduction. Approximately 48,000 copies ofthe magazine are printed and distributed to homes
throughout the city. The publication is also available forbrowsing on the Kawachinagano City website.

Once a year we cooperate with the irrigation
association, which supports our field tests, in thecleaning of the canal near the Research Center. Early
on a Sunday morning, the members of the irrigation
association and volunteers from the Research Centerand Nichino Service Kawachinagano Center gather.
Wearing gloves, long boots, and using hoes and othertools, the group removes the dirt, mud, and weeds thathave collected along the long water canal from thereservoir to the farmlands. This year we were blessedwith good weather but if it does rain then the volunteers
wear raincoats, which can make the task much tougher.
However, when the task is completed, volunteers not
only feel the fatigue of a hard day’s work but also withthe joy of achievement. The day is a good opportunity
for the volunteers to break a sweat for a good cause
and share in the bonding that comes with mutual effort.

Website: http://www.nichino.co.jp/en/ (top page)

Overseas Group
company website(top page)

Kawachinagano City Magazine April 2017 Issue(Kawachinagano City website:
http://www.city.kawachinagano.lg.jp/)(PHARMACEUTICAL DEPT.)

Cooperation with the neighboring irrigation association in the canalcleaning (Research Center - May 28, 2017)

Termiticide, Agrochemicals for turf and garden
TEL. +81-3-6361-1417(CHEMICAL PRODUCTS DEPT.)(Weekdays, 9:00 am - 5:25 pm)

Communicating with Society1) Community Service

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

RC activities supporting sustainable development

RC activities supporting sustainable development

Revitalizing the orange tree planted by Ieyasu Tokugawa
Right next to the statue of Ieyasu Tokugawa in the
Shizuoka City Sumpu Castle Park is an orange tree
planted by Ieyasu Tokugawa (Shizuoka Prefecture
Designated Natural Treasure). The tree is said to beover 400 years old but recently has suffered damage
caused by scale insects. Representatives from our
Shizuoka sales staff cooperated with local officials touse our agrochemical “Applaud” and “Spray Oil” to stop
the damage caused by the scale insects. Through ouractions, we contributed to the recovery andconservation of this treasured tree, and to the delight of
all involved. When you visit Shizuoka Prefecture, makesure to visit the statue of Ieyasu Tokugawa and theorange tree he planted.
* Ieyasu Tokugawa in the Edo era founder Shogun.

Responsible Care Report 2017
(available on our website)

Statue of Ieyasu Tokugawa and the orange tree
planted by Ieyasu Tokugawa

29

CSR REPORT 2018

recovered from damage caused by scale insects (December 22, 2017)
CSR REPORT 201830

RC activities supporting sustainable development

3) Contributing to Society

Tours by high school students

Dispatching lecturers and guest speakers

Six students from Eiai High School in Sapporo,
Hokkaido visited our Head Office as a part of theirschool’s carrier project. We provided explanations on
the necessity of agrochemicals and about our business
operations mixed in with 3 choices quizzes and productintroductions. The tour involved lively Q&A and students
left with a greater understanding of agrochemicals.

In FY2017, 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 scientific technology.

Agricultural college scholarship and workshops
In FY2008, we started the Nichino Scholarship Fund,commemorating the 80th anniversary of our founding.
This year marks the 11th year of the fund. Each year, we
provide scholarship funds to students from 9 agriculturalcolleges around Japan to support the agricultural
careers of more than 150 students. Scholarship students
are invited to participate in workshops of our ResearchCenter and other Group locations sites to provide themwith a better understanding of our business and toincrease their knowledge of agrochemicals. We hope
this system for providing promising students withscholarships will aid in the development of successors to
the future of Japan’s agriculture.
Student visit (Head Office: November 6, 2017)

Acceptance of visitors for factory tours and laboratory tours

Participation in the Project of JMAFF
1) Nougyou-Joshi* Project
We participate in the Nougyou-Joshi Project,
an initiative by JMAFF to raise an existence
sense of a female farmer in the whole society.
It’s to plan for increase of the lady of the young
people who chooses agriculture as occupation
through dissemination of related information.
This project aims to tie the knowledge and ideasof female farmers with corporate technology andknowledge to create new products and services,
and actively promote them throughout society.
We launched the “Nihon Nohyaku Thinking of
Future Female Farmer Project”. Specifically, as amember of the Women in Agriculture Project, weare planning to hold online seminars on
agrochemical efficacy and safety as well as
develop a convenient website for registeredparticipants.

* Nougyou＝agriculture / engagement in faming
Joshi＝girl / lady

In FY2017, the Research Center, Naganuma Nursery,
and the Nichino Service Plants were visited by 1,939
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
Osaka Office*2,065

Nichino Service Fukushima Plant
Nichino Service Kashima Plant
Nichino Service Saga Plant

2,295
1,926

1,685

1,963

1,716

1,939

1,500
1,000
500
0

FY2007FY2012FY2013

FY2014FY2015FY2016FY2017

Tour with Nichino Scholarship students (Research Center: July 21, 2017)

Cooperating with blood donations
The Research Center, Nichino Service Fukushima
and the Saga Plants cooperate with Japan Red Cross
blood drives. A blood donation truck visits sites andconducts blood drives for half a day. Although the breakrequired following donation requires some time, many
employees found time in between work to give blood.
We plan to continue cooperating with blood drives.

* Osaka Office includes figures for the former Nichino Service Osaka Plant throughJuly 2016.

(Research Center: July 10, 2017)31

CSR REPORT 2018

In November 2017, we held a kickoff meetings
with 14 members of the Nougyou-Joshi Projectfrom around Japan to prepare for the seminars
based on the themes of “How can we call crops
grown with agrochemicals safe?” and “Proper
agrochemical use for ensuring safe crop
production”. At the kickoff meetings, participants
exchanged opinions on seminar content.
Feedback included, “I learned new things”,“I wanted to know more about agrochemicals”,“I have more confidence in speaking with
consumers about the safety of agrochemicals”,
and “I enjoyed speaking with like-mindedpeople.”Through this project, we will contribute todeveloping an environment that provides more
opportunities for female farmers.

Communicating with Society2) Relationships with Stakeholders

RC activities supporting sustainable development

Communicating with Society

Kickoff meeting (Head Office: November 22, 2017)2) Participation in “AI-based pest infestation early diagnosis technology
development” consortium
We are a corporate member of the “AI-based
pest infestation early diagnosis technology
development” consortium, one of the JMAFFFY2017 sponsored research projects for thecreation of next-generation agriculture using
artificial intelligence. This project aims to develop
technology that will enable new farmers andinstructors on farms to use a tablet to diagnosis
pest infestations and implement
countermeasures. Specifically, the project
involves collecting image data to build a

database for crops that have been damaged bypest infestations or other problems related tocrop harvest. This database would be used todevelop a system comprising highly versatileuser-friendly applications that can be offered asa low-cost service for diagnosis of pest
infestations. Through this project, we willaddress one of our Basic Principles of fulfillingmarket needs by creating superior values with
innovative technologies.

CSR REPORT 201832

Information and Topics of Each Facility

The Nichino Group Global Sites / Information and Topics of Each Facility

The Nichino Group Global Sites

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

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

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

2. In 2017, we again participated in the Kawachinagano
City Citizen’s Festival. We provided flower andvegetable seedlings(raised at Research Center by
Nichino Service). The seedlings were provided as
prizes for the stamp rally conducted in the adventure& nature area, one of the multiple event areas. The
vegetable seedlings were more popular than theflowers. We hope seedlings will grow-up well.

Research Center Policy
Nihon Nohyaku Co., Ltd.
Head Office, Tokyo Branch

19-8, Kyobashi 1-Chome (Kyobashi OM Bldg.), Chuo-ku, Tokyo 104-8386

Sapporo Branch

10-2, Kitasanjounishi 2-Chome (Sapporo HS Bldg.), Chuo-ku, Sapporo-shi, Hokkaido 060-0003

Sendai Branch

10-17, Ichibancho 2-Chome (Sendai Ichiban Bldg.), Aoba-ku, Sendai-shi, Miyagi 980-0811

Osaka Branch, Tokai-Hokuriku Sales Office

6-18, Miyahara 4-Chome (Shin Osaka Wako Building), Yodogawa-ku, Osaka-shi, Osaka 532-0003

Fukuoka Branch

12-5, Tenjin 1-Chome (Daiwa Securities Fukuoka Bldg.), Chuo-ku, Fukuoka-shi, Fukuoka 810-0001

Research Center

345 Oyamada-cho, Kawachinagano-shi, Osaka 586-0094

Naganuma Nursery

Kita 2 Banchi, Higashi 7 Sen, Naganuma-cho, Yubari-gun, Hokkaido 069-1317

Osaka Office2-30, Tsukuda 5-Chome, Nishiyodogawa-ku, Osaka-shi, Osaka 555-0001

Group companies (consolidated)
Nichino Ryokka Co., Ltd.

14-4 Nihonbashi-Kodenmacho (Okaya Building 6F), Chuo-ku, Tokyo 103-0001

Nichino Service Co., Ltd. (Head Office)19-8, Kyobashi 1-Chome (Kyobashi OM Bldg.), Chuo-ku, Tokyo 104-8386

Nichino Service Fukushima Plant

286, Hiraishitakada 4-Chome, Nihonmatsu-shi, Fukushima 964-0981

Nichino Service Kashima Plant

19 Sunayama, Kamisu-shi, Ibaraki 314-0255

Nichino Service Kawachinagano Center

345 Oyamada-cho, Kawachinagano-shi, Osaka 586-0094

Nichino Service Saga Plant

180-1 Aza-Nihonsugi, Oaza-Tsutsumi, Kamimine-cho, Miyaki-gun, Saga 849-0124

Nichino America, Inc.

U.S.A. / Wilmington

Japan EcoTech Co., Ltd. (Head Office)12-2, Kyobashi 3-Chome (Kyobashi No. 2 Yuraku Bldg., 7F), Chuo-ku, Tokyo 104-0031

Japan EcoTech Fukushima Analysis Center
Japan EcoTech Osaka Analysis Center

Our mission is to create new agrochemicals meet theneeds of society to secure a safe and steady food supply,
and to improving the quality of life. We embrace our role
as a base for disseminating bioscience research
information related to fine chemical products for
agrochemicals and pharmaceutical products, fromfundamental research on chemicals, biological organisms,
and safety to research for product commercialization andindustrial application. We are dedicated to various social
activities, information disclosure, and open
communication and ensure our position as a research
center that is trusted by the community.

RC Activity Topics
1. We proactively accept tour requests to promotefurther understanding of agrochemical efficacy anduse, and agrochemical safety. In 2017, we welcomeda total of 774 visitors for tours. Visitors included
farmers who use agrochemicals as well as middle
school students and Nichino Scholarship students(agricultural college students).

345 Oyamada-cho, Kawachinagano-shi, Osaka 586-0094

Taiwan Nihon Nohyaku Co., Ltd.

Taiwan/Taipei

AgriMart Corporation

12-2, Kyobashi 3-Chome (Kyobashi No. 2 Yuraku Bldg., 6F), Chuo-ku, Tokyo 104-0031

Nichino India Pvt. Ltd.

India / Hyderabad

Nichino Chemical India Pvt. Ltd.

India / Hyderabad

Sipcam Nichino Brasil S.A.

Brazil / Uberaba

Nichino Europe Co., Ltd.

UK / Cambridge

Nichino Shanghai Co., Ltd.

China/ Shanghai

Nichino do Brasil Agroquímicos Ltda.

Brazil / Sao Paulo

Nichino Vietnam Co., Ltd.

Vietnam / Ho Chi Minh

Nihon Nohyaku Andica S.A.S.

Colombia / Bogota

Tour with middle school students (August 4, 2017)

Agricultural Chemicals (Malaysia) Sdn. Bhd.

Malaysia / Penang

Sipcam Europe S.p.A.

Italy / Milan

Information exchange session with Kawachinagano City (May 23, 2017)

Research Center environmental data
Items

EnergyWater

Affiliated companies accounted for by the equity method

CSR REPORT 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 our environmental
measurements (emissions, waste water, noise,
vibrations, etc.). We also provided a tour of the
facilities. Measurements showed there to be no major
issues. We received constructive questions andproposals, and we were able to promote mutual
understanding. This marked the seventh year since webegan holding the information exchange sessions at
the Research Center, and over that time we havewelcomed visits by some 50 city officials. We lookforward to continuing with these sessions in the future.

286, Hiraishitakada 4-Chome, Nihonmatsu-shi, Fukushima 964-0981

Group companies (non-consolidated)

33

Kawachinagano City Citizen’s Festival (May 14, 2017)

Tour with Nichino Scholarship students (October 26, 2016)

Content (unit)

FY2013 FY2014 FY2015 FY2016 FY2017

Crude oil equivalent (kl) 1,926 1,973 1,931 1,961 1,970(1,000 m³)
29
30
27
31
31
SOx
(t)
0.0
0.0
0.0
0.0
0.0
Atmospheric NOx
(t)
3.3
2.6
1.8
2.2
2.0
Dust
(t)
0.0
0.0
0.0
0.0
0.0
emissions(t) 3,549 3,881 3,913 3,912 3,871
CO2Amount(t) 197
184
196
202
206
Waste
Final landfill(t) 131
122
137
137
140
Volume (1,000 m³)
9
10
8
16
19
Waste water
COD
(t)
0.3
0.2
0.2
0.4
0.0

CSR REPORT 201834

Nichino Service Co., Ltd. Fukushima Plant

Nichino Service Co., Ltd. Kashima Plant
General Manager: Michihiko Kawaguchi
Address: 19 Sunayama, Kamisu-shi, Ibaraki
Number of employees:
44
Land area:
approx. 45,000 m²

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 chemical substances
and waste with business activities.
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.

RC Activity Topics

Overall Safety Inspection (June 5, 2017)

General Manager: Hitoshi Yamaguchi

1. We promoted the implementation of OHSAS18001,
worked to improve overall occupational safety &health, and achieved zero accidents.
2. In FY2017, we achieved zero environmental
accidents and zero environmental law violations,
goals outlined in ISO14001.
3. During the disposal of industrial waste, we applied ourelectronic manifest and reinforced legal compliance.
Furthermore, we conducted the planned monitoringof industrial waste disposal contractors to confirm
proper disposal was being conducted.
4. We conducted stress checks to ascertain the level ofmental stress felt by employees as part of efforts toprevent mental health problems.
5. As part of our safe operations initiative, we conducted
an Overall Safety Inspection involving inspections ofprocedures for agrochemical technical pesticide
products and risk validation.
6. We contributed to the local community by participatingin community cleanup conducted by the Corporate
liaison meeting in Hasaki District (twice per year)
7. As part of GMP management, we focused onvoluntary inspection education to improve the skill
levels of GMP internal audit staff.
8. We conducted a chemical substance risk evaluation
using BIGDr (chemical substance risk evaluation
support tool) provided by the JCIA.
Nichino Service Kashima Plant environment data
Items

Content (unit)

FY2013 FY2014 FY2015 FY2016 FY2017

Technical grades*1 /Products
1,142
bulk powder(t)
Crude oil equivalent*2 (kl) 2,398
EnergyWater(1,000 m³) 144
SOx
(t)
0.5
Atmospheric NOx(t)
8.0
emissions
Dust
(t)
3.2
(t) 4,148
CO2
Amount(t) 4,281
Waste
Final landfill(t) 155
Volume (1,000 m³) 134
Waste water
COD
(t)
5.6
*1
*2

Information and Topics of Each Facility

Information and Topics of Each Facility

1,339 1,186 1,387 1,577
3,025 2,007 1,982 2,070
192
117
139
158
0.6
0.1
0.3
0.3
6.1
0.9
1.4 14.3
4.0
0.7
0.8
5.9
5,212 3,465 3,368 3,452
2,718 3,166 2,725 5,508
9
4
4
4
205
106
128
135
10.1
2.2
4.7
7.2

Address: 4-286 Hiraishitakada, Nihonmatsu-shi,
Fukushima
Number of employees:
71
Land area:
approx. 119,000 m²

Plant Policy
1. Work to reduce chemical substances, CO2 emissions
and industrial waste from business activities, andpromote resource and energy conservation as part ofenvironmental protection efforts.
2. Conduct planned risk assessments, standard work
procedure education, and risk prediction activities toprevent fires, explosions, chemical substance leaks,
and other accidents. Also, conduct regular training toensure appropriate response to emergency
situations.
3. Applying the OHSAS18001 system, we prevent workrelated injuries. Protect the safety and health ofworkers and work to create a pleasant, comfortable
work environment.
4. We conduct to prevent logistics-related appropriate
labeling of product containers accidents, and use
Yellow Cards, White Cards, etc., to provide productsafety information to all shipping and warehouse
operators.
5. 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 to maintain and improve safety, health, andthe environment.
6. Encourage communication with the community andfurther mutual understanding through participation incommunity activities and social contribution activities.

RC Activity Topics
1. Prepared for emergency situations by conducting
firefighting drills and drills for responding toagrochemical substance leaks.
2. Worked to improve overall occupational safety &health by applying method of OHSAS18001, andreviewing preventive measures of past incidents.
3. Continued to achieve zero environmental accidents
and zero environmental law violations.
4. As part of community activities, we lent our ground foruse by youth baseball team registered (15 times),
and regularly conducted neighborhood cleaning (4times/year).
We welcomed 42 groups totaling 361 visitors,
including agrochemical consumers, to promote
understanding regarding agrochemical safety.
Nichino Service Fukushima Plant environment data
Items

Products
EnergyWater

Content (unit)

FY2013 FY2014 FY2015 FY2016 FY2017

Agrochemicals(t) 5,601 4,323 4,155 3,914 5,138
Crude oil equivalent (kl) 538
514
456
449
534
(1,000 m³)
8
8
9
7
8
SOx
(t)
0.2
0.2
0.2
0.0
0.9
Atmospheric NOx
(t)
0.2
0.2
0.2
0.0
0.3
emissions
Dust
(t)
0.0
0.0
0.0
0.0
0.0
(t) 1,227 1,209 1,083 1,043 1,221
CO2Amount(t) 436
469
363
380
429
Waste
Final landfill
(t)
9
2
1
2
1
Volume (1,000 m³)
6
7
6
5
7
Waste water
COD
(t)
0.0
0.0
0.0
0.0
0.0

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

Driving safety seminar (July 7, 2017)35

CSR REPORT 2018

CSR REPORT 201836

Information and Topics of Each Facility
Contents

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Address: 2-30, Tsukuda 5-Chome,
Address: 180-1 Aza-Nihonsugi, Oaza-Tsutsumi,
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Plant Policy

The Nichino Group Mission

Information and Topics of Each Facility / Third-party Validation

CSR Report 201807Office Policy

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explosions,chemical
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initiatives at the former Nichino Service Osaka Office andaccidents.
spent one year evaluating what types of activities could
3. Utilize the OHSAS18001 system to prevent workFeature:
be adopted. Although the Osaka Office only has a small
related injuries, provide mental care for employees,
number of staff, amid development construction, theand create a pleasant work environment.
entire the Nichino Group is committed to contributing to
4. Provide product safety information to all logistics andsociety through RC activities. 11
warehouse operators to prevent logistics-related
accidents.
5. Through agrochemical production, we all engage in
RC Activity Topics��������������������������������������������� 13
Corporate
Governanceefforts to contributeto society
to ensure a safe andfoodGovernancesupply andGuidelines
improve thequalityof life. ���������������������������������� 13
1.steady
Corporate(BasicApproach)
1. Provided seminars and announcements to local
residents regarding development
13 construction. During
2. Corporate Governance Diagram ������������������������������������������������
RC Activity Topics
the construction period, we checked construction
noise levels and work to implement noise prevention
measures to promote a better environment.
1. In FY2017, we achieved zero environmental
2. We conducted safety patrols, identified potential near
accidents and zero environmental law violations,misses and encouraged submission of near misses togoals outlined in ISO14001.
promote accident prevention and maintain zero
2. We monitored industrial waste processing contractors
accidents.
15
to confirm proper treatment was being conducted.
3. To prepare for emergency situations, we conducted
3. As part of our communication with the society to(1) fire extinguisher training,
promote understanding regarding agrochemical(2) Safetydisaster&prevention��������������
and usage
methods,
we welcomed 42
Occupational
Health, Process
1.safety
RC Promotion
Diagram
15 groups
training Prevention(shutdown, ����� 23
totaling
643
visitors
includingfromuniversities,
Safety&Disaster������������������
2. RC Global Charter
15
evacuation), and (3) leakagricultural colleges and Agriculture officials. We also���������� 23
1. Occupational
Safety &and
Health����������������
response
other3.acceptedManagement
two Systeminterns fromtwo neighboring 16
schools,
emergency
training.
���� 242.
Process
Safety&DisasterPrevention
providingopportunities
to
learn
about
agrochemical
4. RC Mid-Term Targets and Activity Results/Plans ���� 16
Furthermore, (4) we held
production, inspection to shipping etc.
1) About
the NichinoGroup RC Mid-TermTargetswe conducted
seminars
andStewardshipprovided
4. To
preparefor emergency
situations,
Logistics Safety,
Product������������������� 16(FY2016-FY2020)
training &toProducts
ensure thatmobile� 26
drills(firefighting and(Chemical Materials
Safety)Fire extinguisher training
powered pumps can be usedevacuation
drills,2) FY2017 Activity
Results and Internal Evaluation � 17
(August 3, 2017)�������������������� 26
1.
Logistics
Safetybyanyone.
agrochemical
technical grade/
3) FY2018 Activities ������������������� 18
2. Product Development Considering Environment /product leak response drills,������������� 26
tank leak response drills,
Safety andAnimalOfficeWelfareenvironment
Osaka
data
�������� 19
Environmental
Protectionwaste water treatment
facility
3. Raw Materials
andProducts
SafetyItems
Content (unit)
FY2013 FY2014 FY2015 FY2016 FY2017
drills,etc.). and1.trouble
Input ofresponse
Resourcesand Energy
Output ofDisaster prevention training
Management ��������������������� 27

Third-Party Verification
In accordance with the Nichino Group RC mid-term targets (FY20162020), we received an inspection for the verification of this newly issued
CSR Report 2018 (March 2018). Verification was conducted at our Head
Office and at Nichino Service Saga Plant. The inspection entailed
confirming the rationality of our calculation methods and the accuracy of
our figures for the performance benchmarks (figures) indicated in thisReport, as well as the accuracy of information other than numerical figures.
We also received advice on how to improve our Group RC activities.

Contributions to the Modernization of Agriculture and Economic
Development of Farmers in India which is the World Grain Belt

Verification Day 2(Nichino Service Saga - March 19, 2018)

Responsible Care Activities Supporting Sustainable Development

EnergyCrude oil equivalent (kl) 204
203
19 11, 2017)
Products and Environmental Load ������
(September
Water(1,000m³)
2
2. Environmental Impact ��������������� 19
Communicating with Society ����� 291
SOx

NichinoService Accounting
Saga Plant������������
environment data
3. Environmental
21

(t)

0.0

0.0

Volume* (1,000 m³)
COD
(t)

0
0.0

0
0.0

������ 29
1. Distributing
Information
Atmospheric
NOx to Society(t)
0.0
0.0
Items
Content
FY2014 andFY2015 FY2016 FY2017
4.
Activities
toward(unit)
GreenFY2013
Purchasing��������������
2. Relationshipto Society
30
emissions
Dust
(t)
0.0
0.0
�����������������
22 5,288
GreenAgrochemicals
Procurement (t)Products
5,701 6,438 5,466 4,891(t) 2 �����
362
370
CO2 of JMAFF*
Participation in the Project32
oil equivalent(kl) a830
960
950
835 1,045
Energy5. EffortsCrude
towards
Creating
Low-Carbon
Amount
(t)
80
89
Waste
WaterSociety ��������������������������
(1,000 m³)
13
13
14 2213
14
Final landfill
(t)
5
6

SOx
(t)
0.1
0.2
0.1
0.1
0.3
Atmospheric NOx
(t)
0.3
0.5
0.3
0.4
0.8
emissions
Dust
(t)
0.0
0.0
0.0
0.0
0.0
�������
33 2,159
The Nichino
Sites2,213(t) 1,764
2,204 1,840
CO2Group Global
�� 34
Amount392 Facility
649
399
375
312
Information
and Topics (t)of Each
Waste
Final
landfill
(t)
0
0
0
0
0
�������������
38
Third-Party Verification
Volume (1,000 m³)
6
6
7
7
6
water
*1 Waste
NichinoGroup = Nihon Nohyaku Group
COD
(t)
0.0
0.0
0.0
0.0
0.0
*2 JMAFF = the Japanese Ministry of Agriculture, Forestry and Fisheries

0 13 7C S RC SRRE PR OE RP TO R2T0 12 80 1 8

Waste water

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

Site inspection(Nichino Service Saga - March 19, 2018)

Verification Day 3 (Head Office- March 22, 2018)

Opinion letter of third-party verification* All treated as industrial waste

CSR REPORT 201838

Head Office19-8, Kyobashi 1-Chome (Kyobashi OM Bldg.),
Chuo-ku, Tokyo
104-8386
TEL+81-3-6361-1400
Websiteh t t p : // 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.