Tokuyama CSR Report 2010
Tokuyama CSR Report 2010

CSR
CSRReport
ReportIn In
Harmony
Harmony
withwithPeople,People,SocietySocietyandandthetheEnvironment
Environment

Corporate
Corporate
SocialSocialResponsibility
Responsibility
Division
Division
ShibuyaShibuyaKonno
Konno
Bldg.,Bldg.,
3-3-1,3-3-1,
Shibuya,Shibuya,Shibuya-ku,
Shibuya-ku,
TokyoTokyo
150-8383
150-8383
JapanJapan
Tel: +81
Tel: 3-3499-8478+81 3-3499-8478
Fax: +81
Fax: 3-3499-8961+81 3-3499-8961
URL http://www.tokuyama.co.jp
URL http://www.tokuyama.co.jp

Staying
Staying
with
with
you
you
allallthethetime
time
This This
reportreportis printed
is printed
on FSC-accreditedon FSC-accredited
paperpaperwith withpure pure
plantplant
oil ink,
oil whichink, whichcontains
contains
no volatile
no volatileorganicorganic
compounds
compounds
and inanda dry
in aprinting
dry printing
process
processthat usesthat uses
no water,no water,thus thus
precluding
precluding
releasereleaseof anyof harmful
any harmful
effluents.
effluents.
DateDateof issue:of issue:December
December
20102010

Next issue:
Next issue:
Scheduled
Scheduledfor December
for December
2011 2011

Contents
Tokuyama Group Code of Business Activities
All Tokuyama Group members will commit to operating in a
way that is compatible with society and to fulfilling the Group’s
corporate social responsibility, following the principles bellow
and endeavoring to achieve sustained growth by earning the
support of our clients.

❶ Compliance
We act with good corporate ethics and common sense,
based on the understanding that compliance with laws
and corporate rules is the most important requirement inpursuing any kind of business.

❷ Fair Business Activities• We aim to be moderate and reasonable in our businessthrough fair, free, and transparent competition.
• We will maintain fair and reasonable relation with
political and governmental organizations.

❸ Responsible Care
• We develop, produce and supply products and services
that have value to the community, with a constant focus
on safety requirements, so that we can satisfy our clientsand consumers and earn their trust.
• We voluntarily and proactively address environmental
issues based on an understanding of their significance toall mankind and their importance to the continuation ofbusiness activities.

Established: May 12, 2009

❹ Respect of Human Rights and Personality• We respect the basic rights of people in our business andwill do not discriminate on the bases of race, sexuality,
creed, nationality or religion.
• We value diversity in the workplace and will provide asafe and comfortable working atmosphere to provide
satisfaction and opportunity to each employee.

❺ Communications
We make fair and positive public disclosure of information
about our Group including its business activities andfinancial reports to maintain good communication withsociety.

Centennial Vision
February 16, 2018 will mark Tokuyama’s centennial founding anniversary.
The basic strategies in the Centennial Vision are to strengthen strategicallygrowing businesses and to strengthen international competitivenessthrough a process of concentrating on select areas. We will concentrate
our energies on human resources-based management and the promotion of
CSR activities, as we regard these as the foundations of our basic strategies.

■ Basic Strategies for the Centennial

Our ideal image“A manufacturing company that creates a brighter futurewith the vitality of its human resources and the creativity ofchemistry in harmony with society”❻ Social Contributions

Centennial
Vision• We actively seek to contribute to our community as agood corporate citizen.
• We contribute to the development of local regions in
our international business activities, respecting not onlyinternational rules, local laws and regulations but also
local cultures and customs.

Strengthning
ening Strengthe
f
of
o

y
inte
gicallscomp rnational
strate usinesse
etitiveness rowing bg❼ Exclusion of Antisocial Forces

Human resources-based management
・Promotion of CSR activities

Established: May 12, 2009

Each member of the senior management of Tokuyama Corporation and its Group companies is responsible for
embodying the spirit of Code of Business, and specifically for carrying out the following jointly and individually.
① Senior managers shall lead employees in complying with the Code of Business.
② Senior managers shall ensure that all employees in their organization comply with the Code of Business.
③ Senior managers shall establish appropriate internal systems to ensure that compliance with the Code ofBusiness operates effectively.
④ Senior managers shall take the following actions in dealing with any event that is not in compliance with the Codeof Business (“Violation”)· Demonstrate a clear commitment to solving the Violation.
· Make every reasonable effort to identify the cause(s) of the Violation and put in place appropriate measures toprevent any recurrence.
· Make public disclosure of the Violation quickly and accurately and with appropriate accountability.
· Clarify authority and responsibility with respect to the Violation and take strict action (disciplinary measures),including appropriate action against senior managers themselves.

Editorial Policy• CSR Report 2010 has been compiled with the aim ofbringing Tokuyama’s activities directed at meeting its
Corporate Social Responsibility in fiscal 2009 to theattention of all concerned, including shareholders,investors, trading partners, employees and theirfamilies, people living near its production sites andmembers of the public. As in the 2009 edition, CSR
Report 2010 has special features on three different
subjects: distinctive features of the Tokuyama Factory,
one of the Group’s overseas subsidiaries, and an
environmentally friendly product. In addition, itdelivers a more extensive report on social contribution
activities.
• As with the 2009 edition, Ms. Eriko Nashioka of theInstitute for Environmental Management Accounting
was asked to offer independent comments on thisreport. The purpose of the independent comments is tocontinuously seek feedback and ratings that are
helpful to Tokuyama’s efforts in fulfilling its social
responsibility. Details of Ms. Nashioka’s comments areavailable on page 51.
• CSR Report 2010 has been prepared based on theEnvironmental Reporting Guidelines (Fiscal 2007
edition) published by the Ministry of the Environment.
• CSR Report 2010 is also available via Tokuyama’s
website: http://www.tokuyama.co.jp/eng/enviro/

Scope of the Report
Period:All performance data are for fiscal 2009,
from April 2009 to March 2010. Activities
are for fiscal 2009 in general, with somefor fiscal 2010.
Companies: Tokuyama Corporation (Environmental
performance data relates to the Tokuyama
factory and the Kashima factory.) Part ofthe performance data also includes thetotal value of eleven main production
companies in the Group (See page 49).
Region:Activities in Japan (Including someoverseas companies in the Group)
Date of issue: December 25, 2010 (The next edition will
be issued in December 2011.)

Tokuyama CSR Report 2010

Tokuyama Group Code of Business Activities
Top Message
The Tokuyama Group at a Glance
In Your Everyday Life − Chemistry in harmony with Society −Fiscal 2009 Highlights

11

Special Feature 1

13

Special Feature 2

15

Special Feature 3

Integration in the Tokuyama Factory
Shanghai Tokuyama Plastics:

Expansion of Air-permeable
Film Business in China

Shikkui Lemarge:

An Interior Finishing Material
with Durability for the Future

Tokuyama’s CSR Activities
17
19
22

We will not enter into any business arrangement with
antisocial forces that threaten public order and safety.

Responsibility of Senior Management Under the Tokuyama Group
Code of Business Activities (“Code of Business”)

1

1
3
5
7
9

25

What Are Tokuyama’s CSR Activities?
The Foundation of CSR − Being a Trusted Company
RC Promotion Structure and Operation ofManagement Systems
Addressing the Plastic Window Sash Problem
toward Regaining Trust

Harmony with Society
26
29
33
35
36
37

Relationships with Customers
Relationships with Communities and Society
Relationships with Employees
Relationships with Shareholders
Relationships with Trading Partners
Process Safety, Disaster Prevention andOccupational Health and Safety

Harmony
with the Environment
39
40
42
44
45

Performance for Fiscal 2009
Environmental Accounting
Commitment to the Prevention of Global Warming
Reduction of Air and Water Pollutants
Waste Reduction and Recycling
Development of Environmentally Friendly Products
and Environmental Technologies

Site Report
47
48
49

Tokuyama Factory
Kashima Factory
Activities of Group Companies

51

Third-Party Comments / In Response to theThird-Party Comments
History of Tokuyama’s RC Activities
Editor’s Notes

52

Tokuyama CSR Report 20102

Top Message

Top Message

Steadily striving to promote our management policy,
to become a manufacturing company that is in
The Tokuyama Group will celebrate the centennial
anniversary of its founding in 2018. “A manufacturing
company that creates a brighter future with the vitality

President

Tokuyama CSR Report 2010

citizen. The Tokuyama Group is proud that its

trouble and inconvenience.

development of environmentally friendly chemical

At present, we are working hard to carry out

products and environmental technologies, including

repair work at customers’ buildings/houses to achieve

polycrystalline silicon, a material indispensable toharmony with society” is the ideal image of the Group

compliance, as we place top priority on providing

solar power generation, is encouraging active global

set out in our Centennial Vision, and all its members

peace of mind for our customers. We completed alluse of renewable sources of energy and spreading theare endeavoring to attain this vision. The basic strategies

urgent and short-term measures designed to prevent

practices of energy conservation.

in the Centennial Vision are to strengthen strategicallya recurrence of this dishonesty problem, which we

In addition, the Tokuyama Factory, the principal

growing businesses and to strengthen international

announced in March 2009. Now, we are working

production facility of the Tokuyama Group, has slashedcompetitiveness. We aim to do this by concentrating

actively on the medium-term measures, which are due

its unit energy consumption by exhaustively improving

on select areas, on the basis of a system that supports

to be finished by March 2011. I am convinced that wethe manufacturing processes and taking action to

the basic strategies comprising human resources-based

can consistently improve our record of compliance bysave energy. I expect that we will probably achieve

management and the promotion of CSR activities, in an

reviewing the strengths and weaknesses of the Groupour goal of cutting unit energy consumption by 22%

aspiration to maintain constant growth.

and by remedying any shortcomings in the process offrom the 1990 level in fiscal 2010. In addition, thetackling challenges one by one. And I understand that

Tokuyama Factory is unique in having two functionsof informing our stakeholders of the Tokuyama Group’s

my duty is to ensure that these efforts are not mereof chemicals production and cement production.

activities, which are conducted based on this vision

temporary solutions, but continue to produce positive

Taking advantage of this characteristic, it is actively

and with the aspiration of becoming a manufacturing

results over the long term. The Tokuyama Group isreusing the waste and by-products emitted from insidecompany that is in harmony with society, and earning

determined to continue all efforts necessary to regain

and outside the Company as raw material and fueltheir understanding.

your trust as soon as possible.

for cement production. Our focus on recycling open
to society contributes to the maintenance of our high

Aware that companies are required to fulfill their

Aiming to be a “manufacturing company thatsocial responsibility in relationships with stakeholders,is in harmony with society,” the Tokuyama Group

we understand that our CSR activities need tohas been engaged in Responsible Care activities forreview different processes of our operations. At themore than 15 years. As a chemical firm committed

Under these adverse business circumstances, I don’t

Tokuyama Group, the foundations for CSR have been

to protecting the environment, safety and health,believe a magic bullet for manufacturing exists. Rather,steadily built by these activities, which take the form

we voluntarily carry out these activities on a

we will take a comprehensive, step-by-step approach.

of Responsible Care activities and internal control

worldwide scale throughout the life cycle of chemical

All personnel, ranging from the management to shop-

activities internally called “Sunflower Activities”

substances, encompassing the stages of development,

floor workers, will unite, listen to stakeholders andcentered on ensuring and increasing compliance.

manufacturing, physical distribution, use, final

take the initiative in making sustained efforts under our

consumption and disposal.

management slogan, “Venture Spirit & Innovation.”

To our deepest regret, however, we fell short3

customers and stakeholders for having caused greatof its human resources and the creativity of chemistry inThis CSR Report has been prepared for the purpose

Kazuhisa Kogo

“Venture Spirit & Innovation,”
harmony with society

zero-emissions rate and to the creation of a recycling
society.

in our core commitment to ensure compliance.

First, we believe that safety is an essential part of

We will constantly review the social responsibility

As announced in January 2009, it was revealed

business activities and that ensuring safety is the firstof the Tokuyama Group, as we continue to strengthenthat Tokuyama and one of its subsidiaries, Excel

step in successfully coexisting with society. Based on

our CSR management. We invite readers to provide

Shanon Corporation, had been involved in a failure

this stance, I have taken the lead in promoting process

us with their feedback and remarks in relation to thisof compliance involving the fireproof/fire-resistantsafety and disaster prevention.

report.

grade models of plastic window sashes. I take thisWe understand that the fight against global

opportunity to again express my sincerest apology towarming is a key challenge for us as a corporate

July 2010

Tokuyama CSR Report 2010

4

The Tokuyama Group at a Glance (as of March 31, 2010)

History
1918 Feb. 1918■

Company Outline■

Launched a soda ash
business in Tokuyama(currently Shunan City),
Yamaguchi Prefecture

Tokuyama’s Global Network

Corporate Name: Tokuyama Corporation
Established: February 16, 1918
Capital: 53,458 million yen

Jan. 1936

Registered address: 1-1, Mikage-cho, Shunan-shi, Yamaguchi, Japan
Head office: Shibuya Konno Bldg., 3-3-1, Shibuya, Shibuya-ku, Tokyo, Japan

Mar. 1938
Mar. 1952

Germany

Branches and offices: Sendai, Nagoya, Osaka, Takamatsu,
Hiroshima and Fukuoka

France
Italy

Production and Research Sites: Tokuyama Factory,
Kashima Factory and Tsukuba Research Laboratory

Taiwan■● Tokuyama America Inc.

Thailand

Sales Breakdown by Segment[USA]● Figaro USA, Inc.

(Fiscal 2009)[South Korea]

Singapore● Tokuyama Korea Co., Ltd.

Total

273.1

[China]● Tokuyama Europe GmbH

● Tokuyama Trading (Shanghai) Co., Ltd.

● Tokuyama Dental Deutschland GmbH
<Sale of dental materials and equipment>● Shanghai Tokuyama Plastics Co., Ltd.
<Manufacture and sale of microporous films>[France]● Eurodia Industrie S.A.
<Design, manufacturing and sale ofelectrodialyzers>

Chemicals
93.6 billion yen(34.3%)<Manufacture and sale of photoresist developer><Manufacture and sale of precipitated silica>

applied products>● Tokuyama Chemicals (Zhejiang) Co., Ltd.
<Manufacture and sale of fumed silica>[Italy]<Manufacture and sale of high-purity chemicals● Tokuyama Dental Italy S.r.l.
<Sale of dental materials and equipment>

Sales by Region[Singapore]

Jul. 1984● Tokuyama Electronic Chemicals Pte. Ltd.
<Manufacture of high-purity chemicals for electronics manufacturing>● Tokuyama Asia Pacific Pte. Ltd.

Apr. 1985[Malaysia]

Apr. 1985

for electronics manufacturing>● Tokuyama Malaysia Sdn. Bhd.

[Taiwan](Fiscal 2009)

Dec. 1980
Aug. 1982
Aug. 1983● Tokuyama Siam Silica Co., Ltd.

<Manufacture and sale of gas sensors and● Taiwan Tokuyama Corporation* Europe andNorth America

Dec. 1985<Manufacture and sale of polycrystalline silicon ><Manufacture and sale of high-purity chemicals

1990 -

for electronics manufacturing>

Apr. 1994
Total

Japan
215.7 billion yen(79.0%)

billion yen

Asia
42.5 billion yen(15.6%)Net Sales

300
250
200

Consolidated

Non-consolidated
263.3

171.1

Aug. 2000
Sept. 2005■

(billion yen)
350

292.7

307.4

300.9

Operating Income(billion yen)
40

206.1

202.6

34.7

273.1
187.9

150
100

24.3
243
20

■

Non-consolidated

30
192.6

27.3

Consolidated

35.3
28.5
285
16.4
14.8

17.0

5

2006

Tokuyama CSR Report 2010

2007

2008

2009
(Fiscal year)0

Non-consolidated
4,630

4,852

5,057

5,444*

Aug. 2009

3,000
2,000

2,028

2,067

2,127

2,161

2,172

2006

2007

2008

2009
(Fiscal year)

0

Established Tokuyama Malaysia Sdn. Bhd.
in Malaysia as a manufacturing and sales
company of polycrystalline silicon

2010 -

1,000
2005

Commenced the recycling & environment
business
Established Tokuyama Chemicals(Zhejiang) Co., Ltd. in Zhejiang, China as

Consolidated
5,295

4,000

22.3 22.7

10

2005

The company name is changed to"Tokuyama Corporation"

Tokuyama’s first full-scale chemical plantoutside Japan

Number of Employees(persons)
6,000
5,000

50
0

Commenced building material operations
Entered the fine chemicals market
Commenced electronic chemicals
business
Commenced production of polycrystalline
siliconCommenced aluminum nitride (AlN)
business
Commenced business in the diagnostic
system market
Entered thesensor business2000 -

273.1■

Commenced polypropylene (PP) business
Commenced polypropylene film
operations
Entered the dental materials field

1980 -[Thailand]● Tokuyama Electronic Materials (Suzhou) Co., Ltd.

* See pages 7 and 8 for business descriptions.

Mar. 1978● Hantok Chemicals Co., Ltd.

[Germany]● Tianjin Figaro Electronic Co., Ltd.

billion yen

Other*
14.8 billion yen(5.4%)

Mar. 1970
Jan. 1976

Malaysia

Specialty Products
106.3 billion yen(38.9%)

Commenced petrochemicals activities
Commenced vinyl chloride business
Commenced ion exchange membranebusiness

1970 -<Sale of gas sensors and applied products>

Cement,building materials
and others
73.1 billion yen(26.8%)■

Jul. 1964
Sept. 1966
Mar. 1967

Japan

Number of Equity-Method Companies: 9

The company name is changed to"Tokuyama Soda Co., Ltd."
Commenced cement business
Commenced electrolytic chlor-alkalibusiness

1960 -USA

South Korea

China

Number of Consolidated Subsidiaries: 49

Established Nihon Soda Kogyo Co., Ltd.

Apr. 2010
2005

2006

2007

2008

2009
(Fiscal year)* Including 661 overseas employees in fiscal 2009

Established the Specialty Products
Business Division to consolidate the Si
Business Division and the Advanced
Materials Business Division
Tokuyama CSR Report 2010

6

In Your Everyday Life 社会と共鳴する化学
日々の暮らしのなかに

セメント
Cement・コンクリート
and concrete●− Chemistry in harmony with Society −（建設資材
・塩化ビニル）(polyvinyl
chloride resin and building materials)
Building exterior
建物の外装（ソーダ灰）(soda
ash)
Window glass
窓ガラス●
・湿式シリカ）(isopropyl alcohol and precipitatedsilica)
ペンキ
Paint（イソプロピルアルコール●

トクヤマはいつの時代も、社会に役立ち、人を幸せにするものづくりに真摯に取り組んできました。
Tokuyama has devoted
itself diligently
to manufacturing in an effort to serve society「暮らしの価値」に繋がる製品が、日々の暮らしの隠れたところでみなさんのお役に立っています。
and
to
bring
happinesstopeoplesince
its establishment.
気が付けばいつも、
トクヤマはみなさんのそばにいる存在です。
Although they may attract little attention, products that are valuable in everyday life help you in your daily life.
If you notice our products, you will find that Tokuyama is always beside you.

●

Shampoo
シャンプー●(isopropyl alcohol)（イソプロピルアルコール）

太陽電池
Solar cells（プロピレンオキサイド）(propylene oxide)
Bathtubs
浴槽
Water（塩化ビニル樹脂）
pipes (polyvinyl chloride resin)
水道管
●入浴剤
（重曹）
(sodium bicarbonate)
Bath salts●●

HOSPITAL

Outside街で●

the home（塩化ビニル樹脂）(polyvinyl chloride resin)
Medical gloves
医療用手袋●（塩化ビニル樹脂）
Intravenous
bags (polyvinyl chloride resin)
点滴バッグ●（医薬原薬・重曹）
Pharmaceuticalproducts
医薬品●

血液検査（試薬・臨床検査機器・システム）
Blood testing (diagnostic reagents, clinical analyzers and
歯科材料
・器材
laboratory information systems)(pharmaceutical ingredients and sodium bicarbonate)●

ＤＶＤレコーダー●(aluminum nitride)
DVD recorders（窒化アルミニウム）

●

●

Soap
石鹸

●

(caustic soda)（苛性ソーダ）住宅窓（樹脂サッシ）
Residential windows (plastic window sash)●新聞（苛性ソーダ）(caustic soda)
Newspapers●(propylene oxide)
Sofas（プロピレンオキサイド）
ソファ●(ion exchange membrane)
ワイン
Wine（イオン交換膜）(plaster sheet)

Dental materials and equipment(layered sodium・
disilicate
and soda ash)
（層状珪酸ソーダ
ソーダ灰）

polycrystalline silicon, high-purity chemicals for
電子工業用高純度薬品・フォトレジスト用現像液・
electronics manufacturing, photoresist developer and
封止材用シリカ）
silica for semiconductor encapsulant)

Clothing (caustic soda)
洋服（苛性ソーダ）
Dehumidifying agent（塩化カルシウム・微多孔質フィルム）
除湿剤(calcium chloride and microporous film)（漆喰シート）
内装材●
Interior
finishing material●

Laundry detergent
洗濯洗剤●(aluminum
nitride,LCD televisions（窒化アルミニウム
・多結晶シリコン
・
液晶テレビ

●

Toothpaste
歯みがき粉

●

(precipitated silica)（湿式シリカ）●（多結晶シリコン
携帯電話(polycrystalline
silicon, ・Cellular phones●

食品包装フィルム
Food wrapping film●

電子工業用高純度薬品
・
high-purity chemicals
for electronics manufacturing,
フォトレジスト用現像液
・封止材用シリカ）
photoresist developerand silica for semiconductor
encapsulant)

silica)
運動靴（湿式シリカ）
Sports shoes (precipitated●（苛性ソーダ）(caustic soda)
Aluminum wheels
アルミホイール●
Car navigation systems
カーナビゲーション●(aluminum nitride,・polycrystalline
silicon,（窒化アルミニウム
多結晶シリコン・high-purity chemicals forelectronics manufacturing,
電子工業用高純度薬品
・フォトレジスト用現像液
・
photoresist developer and silica for semiconductor encapsulant)
封止材用シリカ）

Glasses
めがね(precipitated silica)
Tires（湿式シリカ）
タイヤ●Hybrid cars (aluminum nitride)
ハイブリッド車（窒化アルミニウム）●●(plastic lens materials for glasses)（プラスチックめがねレンズ材料）

Gas detectors
ガス漏れ警報機
Low-salt減塩しょうゆ
soy sauce ・andtable salt
食卓塩

（微多孔質フィルム）
film)
Baby diapers (microporous
赤ちゃんのおむつ●（塩化ビニル樹脂）
chloride resin)
Toys (polyvinyl
おもちゃ

●

●

●

(ion exchange
membrane)（イオン交換膜）(aluminum nitride,
Personalcomputers ・（窒化アルミニウム
パソコン●

polycrystalline silicon, high-purity chemicals for
多結晶シリコン・電子工業用高純度薬品・
electronics manufacturing, photoresist developer andフォトレジスト用現像液
・封止材用シリカ）
silica for semiconductor
encapsulant)
キーボード（乾式シリカ）●Keyboards (fumed silica)

At
home
家庭
で

ＣＤ／ＤＶＤドライブ
CD/DVD drives●（窒化アルミニウム）(aluminum nitride)
光通信（窒化アルミニウム）

Optical communications (aluminum nitride)●

Business Segments and Major Products (including group companies)

Specialty Products

Chemicals

Our mainline electronic components-related
business chiefly serves the electronic
components market, in which IC chips are oneof the principal items. These days, it has closer
relations with the field of solar power
generation. The advanced materials businesssupplies a broad spectrum of domestic andoverseas customers with eyeglass-relatedmaterials, pharmaceutical ingredients,
permeable films, synthetic rubber reinforcing
agents, coating agents for printer paper andother functional materials.

Tokuyama commenced operations withsoda ash production. Soda ash is used inglass, soap and other products; calcium
chloride in an antifreezing agent; isopropyl
alcohol in solvents for paint and ink andantiseptic solutions; and caustic soda,
chlorine and its derivatives as basic
materials in many different sectors. The
vinyl chloride business manufactures andsells vinyl chloride resin and its raw
material, vinyl chloride monomers.

[Principal Domestic Group Companies]●A&T Corporation●Figaro Engineering Inc.

●Tokuyama Dental Corporation●ASTOM Corporation

7

Tokuyama CSR Report 2010

Solar cells(polycrystalline
silicon)Polycrystalline silicon is used as amaterial for solar cells in which silicon
substrates are used.

[Principal Domestic Group Companies]●Shin Dai-ichi Vinyl Corporation●Sun·Tox Co., Ltd.
●Sun Arrow Chemical Co., Ltd.
●Tokuyama Siltech Co., Ltd.

Cement, Building
Materials and Others

Food wrapping film
(polypropylene film)
Polypropylene films offer excellent
transparency and strength, and are highly
suitable to automatic wrapping, printing,and processing into bags. With advantages
in their resistance to chemicals and heatbased on the characteristics of polypropylene, they are widely used in food wrapping,
and wrapping for clothing and textile, as
well as in many other applications.

Cement is a key foundation material
supporting the social infrastructure and ourlifestyles. Tokuyama accepts waste frominside and outside the Company and reuses it
as recycled resources. The eco-friendly andnatural material of plaster is processed using
our unique technology and made available asa building interior material.

[Principal Domestic Group Companies]●Tokuyama Tsusho Trading Co., Ltd.
●Excel Shanon Corporation●Tokuyama Mtech Corporation

Cement and concrete
Ordinary Portland cement is so versatile that it isused in a broad array of applications, including
general civil engineering and construction works,
and cement secondary products. Ready-mixed
concrete is classified into ordinary concrete forgeneral works, road paving concrete, andlightweight concrete, which is lighter thanordinary concrete. Ready-mixed concrete mills
provide a wide range of concrete by changing theingredients and the formulas.

Tokuyama CSR Report 2010

8

oup
r
G
a
m
a
y
u
k
To

of
resents some
p
n
o
ti
c
se
is
Th
by
iatives taken
the major init
009.
up in fiscal 2
ro
G
a
m
a
y
u
the Tok

9
0
0
2
l
a
Fisc
s
t
h
g
i
l
h
g
i
H
2009

May

2009

Expanded the helpline bylaunching a contact point for
consultation with a lawyer inTokyo.

Aug.

P.20

2009
20
2
00
009
0
09
0
9

Sep.

Took part in the voluntary disaster relief activities
in the disaster-stricken area in Yamaguchi
Prefecture, after it was hit by torrential rain,
and offered a relief contribution for victims.

Jul.

P.30
Torrential rain caused a serious disaster in Yamaguchi Prefecture.

area achieve an early recovery, the Tokuyama Group offered a
relief contribution in addition to employee donations.

female lawyer, after some employees had indicatedthat they would find it easier to talk to a woman andthat a lawyer based in Tokyo would be closer andeasier to contact. Answering these opinions, this move

Initiative aimed at using Palm Kernel Shells
as a fuel.

(PKS) was conducted with the No. 7 boiler at the Central Power Plant in
the Tokuyama Factory. The test ended in March 2010.
As part of its efforts to prevent global warming, Tokuyama has been
researching alternative fuels to substitute for coal in power generation. This
mixed fuel combustion test confirmed the utility of PKS as a fuel that

reground) andells (foPalm kernel sh
the inlet

replaces coal. Tokuyama plans to introduce PKS as an alternative fuel,reducing carbon dioxide emissions.
In fiscal 2010, at least 10,000 metric tons of PKS will be used for power
generation. In the future, the Company will reduce CO2 by 70,000 metrictons on an annual basis by further utilizing PKS.

2009

The second-phase construction of a fumed
silica plant was completed at Tokuyama
Chemicals (Zhejiang) Co., Ltd.

Oct.

Many employees from the Company joined other volunteers fromdifferent places to carry out relief activities. Aiming to help theTokyo. This contact point allows users to contact a

A test on the combustion of a mixture containing palm kernel shells

P.20
2009

accepting notifications and inquiries was added in

was aimed at making it easier to use the helpline.

2009

Established the Tokuyama Group Code ofBusiness Activities and the Responsibility ofSenior Management Under the TokuyamaGroup Code of Business Activities.

An external contact point for the helpline services

Tokuyama Chemicals (Zhejiang) Co., Ltd. finished the secondphase construction of a fumed silica plant and a plant for special
matting silica, with a ceremony for the completion held on October
20, 2009. This increased annual production capacity of the subsidiary by 5,000 metric tons, to a total of 10,000 metric tons, including

2009

Aug.

that of the plant constructed during the first phase. In conjunction

Made a decision to build a polycrystalline silicon factory in Malaysia
and established Tokuyama Malaysia Sdn. Bhd.

with the Tokuyama Factory, which produces up to 20,000 metrictons, the Tokuyama Group now has Asia’s largest production
capacity, with total annual output of 30,000 metric tons.

Tokuyama decided to build a new factory for manufacturing
polycrystalline silicon for solar cells at the Samalaju Industrial Park in
Sarawak, Malaysia. In August 2009, a manufacturing and sales firm was set
up under the name Tokuyama Malaysia Sdn. Bhd. After a preparatory
period, construction will commence in 2011 and the factory will begin
operating in the spring of 2013, with production capacity of 6,000 metrictons a year.

2010

Mar.

Acquired certification under the Responsible Care
Global Charter.

The building of the new polycrystalline silicon factory in Malaysia is in

P.22

line with the Company’s basic strategies of strengthening strategicallygrowing businesses and strengthening its international competitivenessunder the Centennial Vision.

9

Tokuyama CSR Report 2010

2010

Apr.

Established the Specialty Products Business Division to consolidate
the Si Business Division and the Advanced Materials Business Division
Tokuyama CSR Report 201010

Special
FeatureSpecial Feature

1 Toward Building a Sustainable Society

Integration

Tokuyama’s CSR Activities

Harmony with the Environment

Harmony with Society

A highly efficient energy system based on in-house power generation
At the heart of the integration in the Tokuyama Factory is its in-house power plant, which boasts
one of the largest power generation capacities in Japan at 552,000 kilowatts. The electric power andsteam generated are supplied through power lines and pipes to the electrolysis plant and other plants.

in the Tokuyama Factory

The factory makes effective use of steam as well as electric power to attain high levels of energy
efficiency.
In-house power generation facilities with one of the largest power generation capacities in Japan

Tokuyama’s principal production facilities can be found in the Tokuyama Factory. Equipped with one of

An integrated, highly efficient production system

the largest in-house power generation facilities in Japan, this factory integrates diverse manufacturing
a zero emission rate of nearly 100%. The Tokuyama Factory is fully committed to building a sustainable
society, for instance by actively accepting waste from outside the Company in its cement business.
Higashi Plant

The Tokuyama Factory is located in the Shunan Petrochemical
Complex fronting the Seto Inland Sea in the southeastern partof Yamaguchi Prefecture. It is Tokuyama’s core production
base. With an area of 1.91 million square meters, it is one of
the largest factories in Japan. It is equipped with great harbor
infrastructure, including 22 in-house berths with the depth of
12 meters and one 14-meter-deep public wharf.

Produces polycrystalline silicon and organic chemicals

Undersea tunnel

products, by-products, waste and utilities reciprocally. It continuously
seeks to make more effective use of these materials and energy.
The Tokuyama Factory has been making exhaustive efforts torecycle by-products and waste generated from within. It has now
attained an outstanding green performance: in fiscal 2009, it effectively
utilized 94% of waste and achieved a zero emission rate of 99.9%.

Since it commenced operations in 1918, the Tokuyama Factory has
constantly pursued its vision of becoming an integrated production base,where energy, materials, and technologies support close links among
different businesses. The factory has built a sophisticated integration
system, in which multiple plants for inorganic and organic chemicals,
cement, electronic materials, and other products are arrayed in alayout designed to enable them to make effective use of raw materials,

processes in a highly sophisticated manner. With a highly efficient production structure, it has achieved

Sun·Tox Co., Ltd.

ShunanPetrochemical Complex

JR Tokuyama Station

Tokuyama Polypropylene Co., Ltd.

EDC

Nanyo Plant

Tokuyama Plant

Crude
salt

Produces cement

Produces inorganic chemicals

Shin Dai-ichi Vinyl
Corporation

VCM

Chloride

Cl2

Aluminum
nitrideTokuyama Siltech Co., Ltd.

Mitsui Chemicals,
Inc.

PO

IPA

Chloromethane

NaOH

Electrolysis
電解

Zero emission

Powergeneration facilities

Waste

Polycrystalline
silicon

Metallic
siliconH2

Fumed silica

Soda ash

Recycling operations open to society*1 Cement kiln: A rotary kiln used for sintering raw materials in the cement plant

11 Tokuyama CSR Report 2010

Waste

■ Trend in unit consumption of waste and by-products

Yamaguchi Eco-tech Corporation(kilograms per metric ton of cement)
500
400

420

425

430

424

Silicastone

Limestone

277

200

The Tokuyama Factory accepts a large amount of waste,
not only from neighboring areas but also from remote regions.
The waste is then treated for effective application.

No residue
generated

100

Community and Society

Reused

0

1991

2005

2006

2007

2008

Coal

Accepting waste from outside the Company

Post-combustion
ash

414

ShunanPetrochemical
Complex

Cement300

2009(Fiscal year)■ Trend in material and thermal recycling volumes(thousand metric tons)
2,500
2,143
2,000

2,144

1,947
1,561

82
70

1,000

0

(thousand metric tons)
125

1,550

1,500

500

2,100

70

80

75
70

50
25

4
1991

100

2005

2006

2007

2008

0
2009
(Fiscal year)

Thermal recycling volume

The cement plant in the Tokuyama Factory makes effective use of the byproducts from the Company’s soda ash plant and coal ash from in-house power
plants as raw materials. It also accepts a large amount of waste and by-products
from outside the Company, and takes a recycling approach that is open tosociety. A combination of this cement plant and the in-house power plants forms
the nucleus of integration at the Tokuyama Factory. A significant percentage of
waste and by-products can be used as raw materials for cement production, as
they contain certain elements that are identical to those contained in clay, oneof the raw materials for cement.
Combustible waste can also be used as an energy source. The temperaturein the cement kiln*1 reaches 1,000 to 1,800 degrees Celsius. At this hightemperature, combustible elements are reduced to ash, which is used as aningredient for cement. This makes the cement kiln quite unlike an incinerator,
in that it generates no residue. In fiscal 2009, the factory recycled 1.63 million
metric tons of waste and by-products, including 0.26 million metric tons
generated within the Company.
Committed to helping to create a recycling society, the Tokuyama Factory
continues with its steady efforts to turn itself into a more advanced production base.

Material recycling volume

Cement plant

Zero emission

Material recycling

Thermal recycling(into material): 1.56 million metric tons

(into fuel): 70,000 metric tons

Sludge, surplus soil, dehydrated
cakes of refuse incineration ash1),
coal ash, waste liquid, and slag

Waste plastics2) (excluding
polyvinyl chloride), heavy oil ash,discarded tires, animal residue,
wood waste, and waste liquid1）The factory accepts incineration ash generated from municipal refuse incineration facilities in
Yamaguchi Prefecture after pretreatment by Yamaguchi Eco-tech Corporation, a joint venture of theCompany and Ube Industries, Ltd.
2）A technology has been developed to enable the stable injection of crushed waste plastics in large
quantities from the front of the kiln. The crushing and combustion capacity is boosted each year tomeet the growing demand to accept the waste plastics.

Major types of waste handled*
Waste plastics (soft, hard), construction sludge, water supply sludge,
sewage sludge, paper sludge, fuel sludge, factory wastewater sludge,
construction waste soil, purification of contaminated soil, waste
incinerator ash, coal ash, heavy oil ash, waste tires, meat and bone meal,wood scraps, waste photographic developer, expired beverages,
flammable waste fluid, waste alkali, clinker ash, burnt residue and others* Other types of waste may be treated.
The above waste materials may not be treatable depending on the properties, conditions,shapes and/or components.

Tokuyama CSR Report 201012

Special
Feature2

With the Growth of
China’s Huge Consumption Market

Special Feature

Tokuyama’s CSR Activities

Harmony with Society

Harmony with the Environment■ Examples of applications of air-permeable film

Shanghai Tokuyama Plastics
Expansion of Air-permeable Film Business in China
The Tokuyama Group has set a goal of increasing overseas sales to 30% or more of total sales by 2018
in its Centennial Vision. Playing a role in the Group’s growing overseas market presence, specificallyin the field of functional materials, Shanghai Tokuyama Plastics was founded to supply high quality
sanitary materials in the Chinese city of Shanghai, supporting the Asian operations of disposable diaper
manufacturers. The second-phase project for adding a new plant will boost annual production capacity
to 4,500 metric tons in 2011. The company aims to achieve sustainable growth in China, a rapidly
growing consumer market, in step with the growth of the class of middle-income earners.

Shanghai Qingpu Industrial Zone

Basic Policy for Business
Development in China
Air-permeable film is actively used worldwide as aconstituent of sanitary materials for disposable diapers andother products.
The Chinese economy is growing at an impressive pace.
As its gross domestic product (GDP) rises, demand for
disposable diapers is climbing rapidly each year. We have theopportunity to expand our business. The company believes
that this growth will pave the way for extensive operations,
not only in the current field of sanitary materials, but also
in non-sanitary areas such as dehumidifying agents andagricultural mulching sheets.
Consistently working to cut costs while offering the quality
sought by customers and bolstering the stability of quality,
Shanghai Tokuyama Plastics will be taking timely action tocapitalize on opportunities to expand, with the aspiration ofachieving steady growth.
No business expansion like this can be achieved without
employee education. A duty performance and control
system based on the plan-do-checkact (PDCA) cycle is being usedthroughout the company to ensurethat individual employees takeresponsibility for results, as well as fortheir own acts (tasks).

Shinichi Kawahara
President, Shanghai Tokuyama
Plastics Co., Ltd.

13 Tokuyama CSR Report 2010

Shanghai Tokuyama Plastics Co., Ltd.
Corporate Profile
Business: Manufacture and sale of microporous films
Location: Qingpu Industrial Zone, Shanghai
Capital: 11.3 million US dollars(as of the end of May 2010)
Ownership: Tokuyama Corporation 100%
Site Area: 26,000 m2
Production Capacity: 4,500 metric tons a year after
completion of the second phase project
Date of Foundation: September 29, 2002
Number of Employees: 70(as of the end of May 2010)

1. Packaging materials: Dehumidifying agents, deoxidizing agents andfreshness preserving agents
2. Separation membrane: Films for mushroom cultivation
3. Sanitary materials: Disposable diapers for babies and adults andsanitary napkins
4. Medical care: Bed sheets, surgical gowns and medical tapes
5. Clothing: Simplified rain garments, work clothes and clothes forevents
6. Building materials: House wrap sheets and sheets for roofing
materials
7. Agricultural materials: Mulching sheets and composting sheets
8. Other: Sheets for outdoor use and sheets for pets

Water and other liquid

Water vapor, air and other gas
Microporous film sheet
Reinforcing material(e.g. nonwoven fabric)

Composition of the film (laminated)

CSR Commitment of Shanghai Tokuyama Plastics
It is said that disposable diapers begin to find widespread
application as per-capita GDP exceeds 5,000 US dollars.
Disposable diapers have found rapidly growing demand in large
cities such as Beijing, Shanghai and Guangzhou, where percapita GDP is around 10,000 US dollars, compared with thenationwide figure, which is still low at around 2,000 US dollars.
Shanghai Tokuyama Plastics supplies microporous films
as a material for disposable diapers and other products to
its client manufacturers. As a member of the TokuyamaGroup, which is trusted by society and whose members
are each the enterprise of first choice for their customers,
Shanghai Tokuyama Plastics understands that its mission is
to offer products and services with fine and stable quality.
This edition of CSR Report looks at the initiatives taken by
Shanghai Tokuyama Plastics as it seeks to boost its corporate
value in China, a huge and fast-growing consumer market.

•Respecting fundamental human rights
Any business with strong roots in its community mustof course follow not only local laws and regulations on
employment and labor, but also corporate ethics. Based onlaws and regulations, labor practices and labor-management
relations in China, Shanghai Tokuyama Plastics has adopted
a set of guidelines for its business, which call for respect
for fundamental human rights and dignity, specificallyprohibiting discrimination, guaranteeing the right to organizeand prohibiting forced labor. To improve the effectiveness of
its guidelines, employees carry out self-check activities.

•Employee safety education
Film forming is a hazardous process, as part of a worker’s
body may be caught
by the rolls, burnt
by a heated object
or cut in the processof using a cutter.
Shanghai Tokuyama
Plastics regularly
provides employeeswith safety education,such as hazard
prediction training
and improvements in indication using photographs. Since
fiscal 2009, it has been running a safety education programthat includes experience with danger, with the use of the Skills
Education and Training Center on the premises of Tokuyama
Corporation’s Tokuyama Factory. A total of nine employees

have completed the program. Emphasis is also placed on
expanding exchanges with Tokuyama’s technical personnel
on a broad variety of subjects, including manufacturing
technologies, quality and the environment.

•Commitment to the environment
Shanghai Tokuyama Plastics is taking action to protect theenvironment in its offices and on the factory floor. To reduceenergy consumption, lights are turned off during breaks andtemperature control with air conditioners is in place. In the film
production process, end portions that cannot be included in
products are crushed and melted so that they can be reusedas raw materials. This is part of our efforts to boost the waste
recycling ratio and achieve zero emissions. In addition to theseday-to-day efforts, the company has since fiscal 2008 beenworking with a non-profit organization in an afforestation initiativein the Huangtu Highlands in Datong, a city in the Chinese
province of Shanxi. By donating for this afforestation activity thecompany helps improve the local environment in China.

•Actions toward ISO 9001 and 14001

certification
Shanghai Tokuyama Plastics has beencertified with ISO 9001 since August
2006. It is preparing to gain ISO 14001
certification in November 2010.

Aiming to become an environmentally

Voice friendly organization

In rapidly growing China, environmental considerations are
emerging as increasingly important. In operating a factory, it isessential to reduce the impact on the environment while improving
quality. Shanghai Tokuyama Plastics understands its responsibility to
the local community, to society and to its customers.
Shanghai Tokuyama Plastics is endeavoring to build a structurewith the intention of attaining ISO 14001 certification in fiscal
2010, as part of its initiatives for minimizing its environmental
footprint. Given that it is people who work toward achieving goals,
we need to step up educational activities to change individual
mindsets. First, we will all ensure that
we do everything possible as individuals.
With this approach, we will aim tobecome environmentally aware people,
so that we can then make our factory anenvironmentally friendly one.

Haruo Kishita
Manager of the Technical Development
Department
Shanghai Tokuyama Plastics Co., Ltd.

Tokuyama CSR Report 201014

Special
Feature3

Evolution of Traditional Building Materials toOpen a New Environmental Era

Shikkui Lemarge
An Interior Finishing Material
with Durability for the Future
Plaster* originated in Egypt and was brought to Japan via Europe and China.
Tokuyama has incorporated new technologies into plaster with distinguished fireproof
properties and durability, after its evolution peculiar to Japan. Moving toward a new
era for the environment, Tokuyama will commercially promote this new plastermaterial as an eco-friendly building material originating from Japan for worldwide application.

Special Feature

Tokuyama’s CSR Activities

The key concept of the Shikkui Lemarge, “Durability for
the Future,” is associated with the Japanese virtues of using
good items for a long time with due respect and developing
an attachment to articles. It is also linked to the notion of
MOTTAINAI, the Japanese word used in the worldwide
resource conservation campaign of the United Nations
Environment Programme (UNEP).
Starting during the period of rapid economic growth, thescrap-and-build practice was taken for granted as people
placed great value on new construction. These values andattitudes have been changing in recent years. There is a

Harmony with Society

Harmony with the Environment

growing tendency to regard buildings as a social stock andto appreciate Japan’s traditional building materials as having
value lasting for years.
Reflecting these trends, Tokuyama has focused onplaster, as a material that has undergone a unique evolution
in Japan. The Company has applied a new technology tosuccessfully develop a flexible sheet with the thickness of
0.4 mm. This has changed plasterwork from a sophisticatedperformance by skilled plasterers to sheet application geared
to contemporary construction.

Today’s plastering method created using Tokuyama’s unique technology
With Shikkui Lemarge interior material, traditional plastering is doneusing a dry process. It suits today’s construction method, in which mostprocesses are performed dry, and is characterized by a unique threelayer structure. Plaster is coated on base paper, dried under pressure, anda protective sheet is laminated on top of it. After the lamination process,it is cut into predetermined sizes. In a tightly sealed state, the ratio of thechemical reaction of the plaster is around 60%. The material is delivered
to construction sites in this condition. Because of its low ratio of chemical
reaction, work can be done in a state in which the plaster is relatively
soft. After the work, it gradually hardens into a hard plaster finish.

■Production process■Product composition

Base paper

Slaked Pigment Waterlime

A protective sheet is laminatedon the surface of the plaster layer
and the finished sheet is rolled up.

Mixing
Paste

PlasterProtective sheet

Pressurization and drying

Structural View▶

Protective sheet

Rolling(to be removed after application)

Plaster layer
Base paper

▶

⬇⬇⬇⬇⬇
⬇⬇⬇⬇⬇

Coating

Product

Base paper

Wall

A hard and durable finish
As it touches the air after application, the Shikkui Lemarge
gradually hardens into a firm plaster finish. Over time, it
develops an increasingly attractive look to produce a highquality space.

mer
Custo ack
feedb
Shikkui Lemarge provides the comfort associated with traditional
townhouses in Kyoto.
Plaster is an interior material with abeautiful reflection of light. I first saw it
at my grandfather’s townhouse in Kyoto.
I still remember the unique atmosphereand ambience that I felt in my childhood.
When I happened to see Shikkui Lemarge
at an exhibition, I thought that it could add
the same comfort I saw in the traditional
townhouse to my own home.
After introducing it, I find that it looks
best in the evening twilight, when thelights come on. I see the gentle light in* What is plaster?

the well hole, and I feel a touch of class inthe time and atmosphere. As I touch thewall, I feel its natural texture. Since westarted living in this house, my son—who
has sensitive skin—has been consistently
healthy. I am happy with this new house,
which can be left to my children.

Mr. Shimada in Takatsuki, Osaka Prefecture(Adopted in 2008)

15 Tokuyama CSR Report 2010

The ratio of chemical reactionof the plaster (%)

60％

Timing

Surface hardness of the Shikkui Lemarge T(in pencil hardness grade)

Right after work
One week
after work
One monthafter work

85％
90％

3B
B
H

OfficeResidential house

An eco-friendly housing remodeling with lasting effect
After hardening, the Shikkui Lemarge has a hard surface,providing a semi-permanent finish. In contrast with wallpaper,
which is designed to ultimately be replaced, the surface of the
Shikkui Lemarge serves as a base when future improvements
are made. The fire prevention performance is certified in astate in which a second Shikkui Lemarge is applied over the
first Shikkui Lemarge, which becomes the base.
●At the time of new construction ●At the time of housing remodeling
Gypsum wallboard

First-applied
Shikkui Lemarge S

New construction 10 years later 20 years later 30 years later

WallpaperNew
constructionFirst
remodeling

Replacement

Shikkui
Lemarge

The first-applied
Shikkui Lemarge S
serves as a base.
A second-applied
Shikkui Lemarge S

Secondremodeling

Replacement

New
construction
If an improvement is sought▲▲▲

Plaster is a building material that excels in waterproof and humidity control properties, to the extent that it has long been used as a top coating material on the earthen interior and exterior
walls of storehouses and residential houses.
It is said to date back to 3000 BC, when it was used on the walls of Pyramids in Egypt. It was also found in buildings in the ancient Greek and Roman periods. In Asia, it was brought via
the Silk Road to China and to Japan. The Horyuji Temple is considered Japan’s oldest application of the material. In Japan, a unique technique was established during the Warring States
Period as a wall material for castle construction, according to which plaster is prepared by adding hemp and straw fibers as well as adhesives obtained from herbal plants and seaweeds,
water and other ingredients to lime. This method produces the refined whiteness that reflects the fine sensibilities of the Japanese people, while also providing outstanding fireproof
performance and durability.

After application, the plaster reacts with carbon dioxide in the air to become harder.
Right after the work, it is as hard as a 3B-grade pencil. One month later, it is as hard asan H-grade pencil.

Third
remodeling

Replacement

The first sheet
can be useduntil reconstruction.

Apply second sheet ●The base is not damaged.
over previous one. ●It is easy to adjust the base.
*The timing for wallpaper replacement shown above is provided as typical examples.

Tokuyama CSR Report 201016

Tokuyama’s
CSR Activities

The Tokuyama Group has a basic management policy of practicing
management in harmony with society so as to coexist with andachieve a shared success with society and thereby establish itself
as a business grouping which is trusted by society and whose
members are each the enterprise of first choice for their customers.

What Are Tokuyama’s CSR Activities?
Tokuyama approaches its CSR activities in accordancewith its basic policy of engaging in management in harmony
with society. We believe that CSR activities help give us thecontinuation of our business and enable us to work with society
to build a sustainable future. To increase stakeholder satisfaction,
we commit to corporate activities that are welcomed by thesociety of which each stakeholder is part.
We see bolstering management transparency as afundamental part of our CSR. We are also committed to a
program of promoting sound corporate governance and tobuilding an internal control system and a compliance system, toensure comprehensive risk management.
The Tokuyama Group has been pursuing an initiative that it
calls Sunflower Activities, designed to permanently instill within
the Group the essence of internal control.
Under the Tokuyama Group Code of Business Activities, weseek to practice management in harmony with society, to makethe Group into a business grouping whose members are eachthe enterprise of first choice for their customers, and to build
excellent relationships with all stakeholders.

Special Feature

Tokuyama’s CSR Activities

Harmony with Society

Tokuyama Group Code of Business Activities

Harmony with the Environment

Established: May 12, 2009

All Tokuyama Group members will commit to operating in a way that is compatible with society and to fulfilling the Group’s corporatesocial responsibility, following the principles below and endeavoring to achieve sustained growth by earning the support of our clients.
❶ Compliance

Message

We act with good corporate ethics and common sense, based on the understanding that compliancewith laws and corporate rules is the most important requirement in pursuing any kind of business.

Practicing
CSR Management❷ Fair Business Activities• We aim to be moderate and reasonable in our business through fair, free, and transparent competition.
• We will maintain fair and reasonable relation with political and governmental organizations.

Masao Fukuoka

p. 20 Promoting Compliancep. 36 Relationships with
Trading Partners❸ Responsible Care

General Manager,
Corporate Social Responsibility Div.

The Tokuyama Group follows a management policy ofpracticing management in harmony with society.
The incident involving plastic window sashes troubled
our customers and other stakeholders. Our Group has
been striving to regain trust by proceeding sincerely withaction to prevent a recurrence of the incident, based on therecommendations of an external investigative committee.
We have finished all short-term measures and our mediumterm measures are currently underway. I am convinced thatthese efforts have steadily improved the governance of theTokuyama Group.
We will continue to review our social responsibility andfurther strengthen our CSR management.

• We develop, produce and supply products and services that have value to the community, with a constantfocus on safety requirements, so that we can satisfy our clients and consumers and earn their trust.
• We voluntarily and proactively address environmental issues based on an understanding of theirsignificance to all mankind and their importance to the continuation of business activities.

p. 22-24 RC Promotion
Structure and Operation ofManagement Systems❹ Respect of Human Rights and Personality• We respect the basic rights of people in our business and will do not discriminate on thebases of race, sexuality, creed, nationality or religion.
• We value diversity in the workplace and will provide a safe and comfortable working
atmosphere to provide satisfaction and opportunity to each employee.

❺ Communications
We make fair and positive public disclosure of information about our Group including its
business activities and financial reports to maintain good communication with society.

p. 33-34 Relationships
with Employees

p. 35 Relationships
with Shareholders❻ Social Contributions• We actively seek to contribute to our community as a good corporate citizen.
• We contribute to the development of local regions in our international business activities, respecting
not only international rules, local laws and regulations but also local cultures and customs.

p. 29-32 Relationships
with Communities and Society❼ Exclusion of Antisocial Forces
We will not enter into any business arrangement with antisocial forces that threaten public order and safety.

■ Tokuyama’s CSR Approach■ Tokuyama’s Major Stakeholders

Basic Policy
Management in harmony with society• Think and act fromthe customers’ standpoint• Anticipate the trend of the times

Basic Philosophy

Basic Policy

Management inspired by denial

Management in harmony with society• Overcome stereotypes
and break free of precedents• Continue with reforms every day

Implementation of CSR activities

Management from a future perspective• Take a long-term perspective• Take advantage of the risks

Management with an emphasison personality• Aim to be a unique company• Cultivate the personalities ofindividual employees

17 Tokuyama CSR Report 2010

Creating valuethat is helpful tolife anywhere
and anytime

Build good relationships
with various stakeholders

CSR foundations

Corporate governanceInternal control (Sunflower Activities)
Strengthen the compliance system
Practice the basic philosophy (action objectives) ofresponsible care (RC) and RC activities
Tokuyama Group Code of Business Activities

Society

Relationships with Customers (p. 26)
Tokuyama conducts customer-focused
quality assurance activities based on
implementation of its ISO 9001-compliant
quality management system. Chemical
substances are comprehensively managed
to ensure safety at all stages of the
manufacturing process.

Customers

Harmony with the Environment (p. 39)
Tokuyama conducts environmentallyfriendly management operations with anemphasis on the environmental
perspective in every aspect of its businessactivities.

Globalenvironment

Relationships with Employees (p. 33)
Tokuyama strives to improve the working
environment so that every individual
employee can exhibit their abilities andperform their duties actively and with ahigh level of motivation. In fiscal 2009, we
focused our energies on bolstering ourfront-line capabilities, developing humanresources, and improving the mental andphysical health of our employees.

Employees

Relationships with Trading partners (p. 36)
Tokuyama is committed to creating relationships of trustwith all trading partners through honest business dealings.
Tokuyama also practices CSR in its purchasing activities.

Tokuyama

Trading
partners

Communities
and society

Shareholders

Relationships with Communities
and Society (p. 29)
Tokuyama is engaged in many different
activities directed at making a contribution
to society. They include financial support
for scientific development and technology,
activities to develop the next generationand local volunteer activities. We are also
working on communication with local
communities by providing opportunities for
local RC dialogues.

Relationships with Shareholders (p. 35)
Tokuyama offers information in a prompt
and appropriate manner to gain theunderstanding and trust of shareholders
and investors.

Tokuyama CSR Report 201018

Special Feature

Tokuyama’s CSR Activities

Harmony with Society

Harmony with the Environment

Tokuyama’s CSR Activities

The Foundation of CSR

Internal Control System— Being a Trusted Company
As a manufacturer, Tokuyama’s social mission is to develop, manufacture, and supply society with useful productswith full consideration given to the environment and safety. In pursuing this mission, we have adopted the basic
policy of practicing management in harmony with society. To follow our basic policy and fulfill our corporatesocial responsibility, and to make the Tokuyama Group into a business grouping whose members are eachthe enterprise of first choice for their customers, we understand that it is essential that we constantly improve
corporate governance, construct and improve an internal control system, and develop a compliance system.

Corporate Governance Structure
Corporate Governance Structure

Since fiscal 2006, the Tokuyama Group has been working
on an initiative titled Sunflower Activities. This is an effort
to continually improve the internal control system and toestablish internal control within the Group. Drawing ananalogy with a sunflower facing the sun, the name of theinitiative represents our sincere attitude and our determination
to discharge our duties.
The Sunflower Committee has been established as a bodyto ensure that the initiative is carried out throughout the Group.
Headed by the president, it discusses and makes decisions
on basic matters that relate to internal control, and strives
to create, develop, and operate the framework for ensuringthat operations are conducted appropriately. Responsible forhandling practical aspects of the initiative, the Corporate Social

Promoting Compliance

The corporate governance system is an essential partof improving corporate value. We believe that we need to
conduct daily inspections and to take the necessary steps toensure that the system always operates appropriately.
The Board of Directors meeting is held at least once amonth to make resolutions on basic Group policies and strategies, to discuss and make decisions on important businessmatters and to supervise business operations. As of the endof June 2010, the Board of Directors consisted of 14 directors
and was chaired by the chairman. A director’s term of office
is set at one year, to allow both a focus on the duties andresponsibilities of offices and a rapid response to changes
in the business environment. The Executive Committee has
been set up as a body advising the president on matters to bereferred to the Board of Directors and other critical issues ofmanagement. It is tasked with ensuring agility and efficiency
in business operations and in decision making. The Executive Committee consists of the heads of three major businessdivisions and those nominated by the president from among

the directors and associate directors. At least one auditor
participates in Executive Committee meetings to comment as
required. A framework for auditing the overall execution ofbusiness is thus maintained.
At present, the Board of Auditors has four members, twoof whom are external auditors. Auditors attend meetings ofthe Board of Directors and other key meetings to oversee thework of directors and ensure that it is appropriate. They also
regularly exchange information and views with the internal
auditing section and accounting auditors and work in mutual collaboration with them to increase auditing effectiveness and efficiency. In addition, auditors attend discussions
between accounting auditors and senior management toexchange opinions.
Our internal auditing framework consists of the Auditing
Department, with seven staff members. It is independent of
any line division and performs regular internal audits of thedivisions and group companies.

■ Corporate Governance Structure
Shareholders’ Meeting
Appointments anddismissals
ReportingAppointments anddismissals

Board of Directors
Decisions and supervision

Auditing

Appointments anddismissals

Accounting Auditors
Board of Auditors
Auditors

Collaboration

Financial statement audit
Internal control audit

The Tokuyama Group regards compliance as central to CSR
and internal control and indispensable to the continuation ofits business activities. Stepping up compliance efforts is part ofour key management challenges. We understand that the concept of compliance is not confined to merely observing laws
and ordinances, but that it has a broad sense including compliance with social and internal rules and sensible behaviors
based on corporate ethics. This is proclaimed in the TokuyamaGroup Code of Business Activities, which serves as action
guidelines for every single officer and employee in the Group.
The Responsibility of Senior Management under the
Tokuyama Group Code of Business Activities has been
established in writing, setting out strict rules to be followedby Tokuyama’s executives and counterparts in Group firms
as leaders of organizations. Moreover, Tokuyama Group’s
Five Conscience Clauses are instituted to help officers andemployees review their own behavior. They are provided in aform portable together with an ID card.
To put the Group’s actions to promote compliance into
tangible form, we have distributed a handbook containing the
Tokuyama Group Code of Business Activities, the Responsibility of Senior Management under the Tokuyama Group Code ofBusiness Activities, and the Tokuyama Group’s Five Conscience
Clauses to every officer and employee of the Group. To build
and instill compliance awareness throughout the Group, ourpresident directly e-mailed all of the officers and employees in
the Tokuyama Group on April 1 of this year with an instruction
to achieve superior compliance in a thorough manner.

Auditing

Business operations

Compliance
Committee

Executive Committee
Strategy Committee
Human Resources Committee

Instructions andthe raising of awareness

Sunflower Committee

President

RC Management Dept.
Auditing Department
Internal audit

RC auditBusiness divisions, back office divisions, research laboratories, factories and group companies

19 Tokuyama CSR Report 2010

Responsibility Division acts as the Sunflower Committee office.
Fiscal 2009 was the second year of work to implement theinternal control reporting system under the Japanese versionof the Sarbanes-Oxley Act (or J-SOX). We focused in particularon steps to construct and improve the system. Expanding thescope of the system to ensure that operations are appropriate,
we made refinements to the system in an
integrated manner for the whole Group.
The work involved a commitment to risk
management activities fundamental tointernal control and an understandingof the status of control of relevant laws
and regulations as well as the status ofcompliance.

Instructions andthe raising of awarenessTokuyama Group’s Five Conscience Clauses
Our behavior shall:➊ Comply with laws, regulations and internal rules;➋ Conform to the Tokuyama Group Code ofBusiness Activities;➌ Justify the trust of customers and trading partners;➍ Earn the respect of society and general
consumers; and➎ Be of a standard that can be spoken of with pridein front of family members and coworkers.

• Compliance Promotion System

We have established a Compliance Committee headed by
the president and consisting of six directors. The Committee
makes decisions on the basic philosophy, Company policies,
structures, and organizations related to compliance and offers
proposals to the Board of Directors. It provides guidance,
education and the raising of awareness on compliance acrossthe Group, while dealing with information and inquiries to thehelpline.

■ Compliance Promotion System
Auditing Department

Reporting and instructions(anonymously)

HelplineCommunication
Communication

Compliance
Committee
Reporting and instructions(Board of) Auditors

Board of Directors• Launch and Development of the Helpline

As part of its efforts to improve the compliance system,
Tokuyama launched a helpline in 2003. The helpline has since
been dealing with information and inquiries from officers
and employees within the Group. The scope of eligibility forservices was subsequently expanded to our trading partners
and to family members of our employees. We also set up an
external contact for notification and consultation services offered by a lawyer. This was increased to two in August 2009, aspart of our attempts to improve and expand the system.
The helpline strictly maintains the anonymity of informers
and advice seekers. The internal rules clearly stipulate thatany whistle-blower will not be subject to any disadvantageous
treatment in personnel affairs or other areas.
This system has been introduced in the belief that it will
help prevent violations of compliance and that it will enable
a self-correcting function to work effectively. Distributed toall employees and officers in the Group, the handbook of theTokuyama Group Code of Business Activities includes contact
details for the helpline. We will continue with activities tomake this system better known to those concerned.
Tokuyama CSR Report 201020

Special Feature

Tokuyama’s CSR Activities

Harmony with Society

Harmony with the Environment

Tokuyama’s CSR Activities The Foundation of CSR
Maintaining and Improving Information Security■Information Security Management Structure
Information Security Committee
Information Security Audit Group
System Control Manager

Information Security Secretariat

Company-wide Management

Tokuyama is proactive and consistent in deploying
information technology as one of the drivers of businessreform. We have been making an intensive effort to ensure
sound protection and advanced use of information, basedon the awareness that information security is of growing
importance as we become increasingly dependent on
networks following the IT-driven transition to electronic
information and the widespread use of the Internet.
In 2001, our top management made a commitment
to voluntary information security initiatives with theparticipation of all employees. In line with this move, we set
up the Information Security Committee as a body mandated
to develop and implement a comprehensive range of specificsteps.
The Information Security Committee was launched withthe mission of maintaining the security of our information
assets, namely information and information systems, andencouraging the active use of these assets. It plays a central
role in developing comprehensive security measures for
information assets and compiling them into Information
Security Policies. It also makes decisions about the Group’s
basic policies on overall matters relating to information
security and engages in activities to increase awareness.
Apart from the policies set out by the Committee,
Tokuyama’s individual departments carry out specificinitiatives in accordance with the Company rules instituted
in the Information Security Policies that came into effect inMarch 2002. Group companies create their own rules basedon the Information Security Policies. The Tokuyama Group is

united in its efforts to improve its security level.
Recognizing the recent growth in both the prevalence
and use of Internet technologies, we have been developing
hardware and software measures to prevent infections withcomputer viruses. We strictly forbid the use of any medium
brought into the Company in its network PCs without first
performing a virus check. We also have filtering in place toblock access to any website that is unrelated to business. As
a result of these protocols, we have experienced no serious
virus infection in the past several years. Every employee
is aware that a disruption in business activities due to thework required to disinfect computers would have a serious
negative impact on customer satisfaction. We believe thatthe effectiveness of these security measures is supported byour customer-oriented stance. In cyberspace, however, there
is no absolute or permanent security. We will continue withdiligent efforts without placing undue confidence in existingmeasures.

Director in charge of the Division,
the Head Office or the Factory

Information Security Manager
General Manager

Information Security Staff
Manager or Assistant Manager

System Staff

RC Promotion Structure andOperation of Management Systems
Tokuyama’s CSR activities center on Responsible Care
(RC) activities. A companywide promotion structure has
beencreated to soundly operate different management
Topicssystems. In this way we are continually improving ourenvironmental, safety, and quality management systems.

Basic Philosophy of Responsible Care
Basic Policy
As a member of the Japan Responsible Care Council,
Tokuyama Corporation carries out Responsible Care
activities that protect the environment and preserve safety
and health throughout the entire chemical substance life
cycle, from development and manufacturing to distribution,use, final consumption and disposal.
Our social mission is to aggressively tackle andsystematically solve environmental issues in particular,
which, in turn, will lead to sustainable corporate and social
development. Based on this recognition, we promote
Environmental Management, a management policy thatemphasizes the environment, in all of our business activities,
including development, manufacturing and sales.

Action Objectives

Information Security Management Officer
Departmental Management

The Tokuyama Group understands that information
represents not only a powerful tool but also—if it ismishandled—a serious threat to continuation of the company.
We place the focus of our security measures on an accurate
understanding of threats and risks and on securing a balanceamong confidentiality, integrity, and convenience, and we
define them as our guidelines in performing duties.

Personnel in charge of
departmental systems➊ Promote environmental protection• Implement an ISO14001-based Environmental

Management System and reduce environmental impacts.

➋ Observe the laws and regulations• Observe international rules, domestic laws and regulations

21 Tokuyama CSR Report 2010

Responsible Care refers to the voluntary management
activities of companies that manufacture and handle chemical
substances to protect the environment and maintain thesafety and health of members of the public and employees
in all processes covering the development, manufacturing,
distribution, use, final consumption and disposal of chemical
substances. RC also refers to publishing the results of theactivities and engaging in dialogues and communication withsociety. RC originated in Canada in 1985, and it is now inplace in 52 countries around the world. In Japan, the Japan
Responsible Care Council (JRCC) was established in 1995
within the Japan Chemical Industry Association (JCIA). It had 97
corporate members as of April 2010, Tokuyama being one of
the founding members. We actively work on RC activities as thebasis of our environmental management and CSR activities.

RC Promotion Systempeople’s safety and health.

■ RC Promotion System• Achieve top-class unit energy consumption in the industry
and the proper management of waste materials

sound management and use of personal information andin boosting awareness among all employees. Aimed at
encouraging all officers and employees to keep in mind
the importance of personal information in their activities,
our monitoring and awareness-building activities include
intranet-based education, regular workplace inspections andfact-finding investigations. Personal information owned byseparate departments is stored in a database. A mechanism
and a system have been established for regular revisions
and checks. These actions are designed to remind all ourofficers and employees of the importance of the protectionof personal information and to prevent personal information
leaks or other serious incidents.

Responsible Care

principles of safety self-management and self-responsibility.

materials under control.

➌ Promote energy conservation and curb global warming➍ Promote resource recycling and work toward reduction

Tokuyama regards the protection of personal information
as a symbol of the Company’s spirit of valuing individuals andas a key obligation in meeting its social responsibility. Basedon this view, Tokuyama has created a structure for improving
the level of personal information protection. Since the Personal
Information Protection Act came into full force in April 2005,
we have published our Personal Information Protection Policy
on our corporate website. According to the policy, specificactivities are carried out under the control of the Information
Security Committee. The head of the committee is in overallcharge of information security for the Company.
In the Company, individual departments have information
security management officers. They play a central role inIn support of the Responsible Care Global Charter instituted by the International
Council of Chemical Associations in 2006, Tokuyama signed the Charter to pledge thatits top management would back and carry out the Responsible Care initiative. In March
2010, Tokuyama acquired certification under the Responsible Care Global Charter.

Chaired by the president and consisting of members of the Boardof Directors, the RC Administration Committee is Tokuyama’s top
decision-making body in relation to its RC activities. It deliberates
and approves companywide policies and other environmental, safety
and quality measures. Under this Committee, there are a numberof subordinate bodies, including the Environmental Measures
Committee, the Safety Measures Committee, the Product Safety
and Quality Assurance Committee and the Product Assessment
Committee. They study specific action plans and conduct productsafety assessments. The Directors responsible for environmental,
safety and product quality matters throughout the whole company
work as the chairs of these committees, with the members consistingof the heads of the management divisions in charge of each matter.

and industrial standards.

• Thoroughly implement export management rules onfor each product.

Furthering the Protection of Personal Information

Acquisition of Certification
under the Responsible Care Global Charter• Promote the material recycling and thermal recycling of resources.
• Work toward achieving a paperless office.

➎ Promote process safety, disaster prevention
and occupational health and safety• Aim for zero accidents and disasters based on the• Achieve a comfortable working environment and protect➏ Ensure strict product safety standards• Offer environmentally friendly products that can beused with safety.

• Provide proper information on how to use products
and what care to take.

➐ Deepen the relationship of trust with society• Publicly disclose information on the Company’s activities

concerning environmental protection, process safety anddisaster prevention, occupational health and safety, andchemical product safety.
• Actively engage in dialogue with the local communities.

RC Administration Committee
Assessment Function

Decision-Making Function

Product Assessment Committee(Labeling Assessment Subcommittee)

Environmental Measures Committee

Safety and Environmental
Assessment Subcommittee

Product Safety andQuality Assurance Committee

RC Research Laboratory(support organization)
Checks safety of chemicals and assesses
their environmental impacts using
simulations. Environmental measurements,
working environment measurements andultra-trace analyses of controlled substancesand chemical pollutants are also carried out.

Responsible Care Management
Department (office)Promotes RC activities throughout theCompany and its group companies
covering areas of the environment, safety
and quality.

Safety Measures Committee

Tokuyama CSR Report 201022

Tokuyama’s CSR Activities

RC Promotion Structure andOperation of Management Systems

Tokuyama’s CSR Activities

Special Feature

Evaluation and Management System for RC Activities

Auditing Systems

Tokuyama adopts a three-year plan in the area of responsible
care and determines its policies and targets for separate fiscal
years to achieve the plan. Under these policies, the individual
departments create specific plans and engage in their activities. The
results of the activities are assessed at the end of the fiscal year sothat the plans for the following fiscal year will reflect the findings.
Tokuyama formulated a new three-year plan starting in fiscal
2008. Activities under the plan are now in process.

Tokuyama has an auditing system that aims at verifyingthat individual factories and offices engage in appropriate
activities in line with the companywide policies.

•ISO 14001 Environmental Management System

The Tokuyama and Kashima Factories have already acquired
ISO 14001 certification. ISO 14001 is an international standard
for environmental management systems. In line with thecompany-wide environmental policy, each factory sets out anenvironmental policy and the specific goals to be achievedin areas covering environmental impact reduction, energy
conservation, waste reduction and resource recycling.
At the head office, branch offices and research laboratories,
activities are underway based on their respective policies and goals
set out in response to their scales, covering energy conservation,
waste reduction, resource recycling and other activities.

Incorporate assessment ofactivities into the following fiscal
year’s goals and plans

Operation of Management Systems■ Evaluation and Management System for RC Activities(Environmental Preservation)
RC Activity Goals
Environmental Impact Reduction Goals

Medium-Term Environmental Plan

Tokuyama has also acquired ISO 9001 certification for its
quality management system that covers its principal products. Since
fiscal 2002, this system has been operated as a system covering
sales, development and all other divisions of the Company.

Tokuyama conducts this audit for the operation safety andenvironment on a yearly basis to verify the appropriateness of
its accident/disaster prevention measures and management
activities in relation to environmental conservation. The auditing
team is headed by the director, who chairs the Environmental
and Safety Measures Committees, and conducts audits ofall factories, laboratories and offices, authorized inspection
organizations under the High Pressure Gas Safety Act, theLogistics Dept. and the Health Management Center. The resultsof the audits are developed into reports and distributed to all
departments concerned. They are also presented to the president.

•Occupational Health and Safety Management System•Third Party Audit

Environmental Management Plan
Environmental Management Activities
Assessment of Activities

ISO14001
Environmental Management System
Safety and Environment Assessment System
RC Audit System
Environmental Accounting
Environmental Performance•ISO 9001 Quality Management System

In accordance with the Japan Chemical Industry Association(JCIA) New Occupational Health and Safety Guidelines,
Tokuyama has built and promoted occupational health and safety
management systems at individual factories and offices. In fiscal
2005, the Tokuyama Factory upgraded its system into a safety
management system covering various safety-related activities.

Assessment Systems
Tokuyama has set up several assessment systems in aneffort to reduce environmental and safety risks.

•Safety and Environment Assessment

Prior to installing, expanding or modifying any facility, we
assess safety and the environment. We check the safety design ofequipment, the safety level of the materials handled, compliancewith the laws and regulations and the impact on the environment,
thereby aiming to ensure that our facilities are safe, easy tooperate, easy to maintain and accident-free. The assessments
apply to three stages: Basic Plan Assessment, Design Assessment
and Pre-Operational Assessment. At these stages, assessments
are conducted to verify that the facilities have a safety- andenvironmentally oriented design, that they have been built to thedesign requirements and that they are ready for operation.

•Safety and Environment Audit

Tokuyama undergoes ISO 9001 and ISO 14001
examinations conducted by accreditation organizations. The
latest examination for renewal of the ISO 9001 certification took
place in April 2010, identifying
two minor deficiencies andmaking comments on threepoints. All have been remedied.

•Product Assessment and Labeling Assessment

To ensure product safety, Tokuyama conducts a productsafety assessment at each stage from research and development
to commercialization. We assess the risk evaluation andexamine compliance with the statutory requirements from awide range of perspectives, including the safety of the chemical
substances involved, the environmental impact and the effecton human health. We also assess the labeling to ensure that the
product information in catalogs, handling manuals, material
safety data sheets (MSDSs)*¹ and other types of labeling containno defects in relation to the instructions and/or warnings andthat there are no inappropriate expressions.

*1 A material safety data sheet (MSDS) is a document that deals with the hazard andtoxicity of a chemical substance. It is prepared to ensure the safe handling of aparticular substance, and provides information on the name of the substance, safetymeasures, the action to be taken in the event of an emergency, and suchlike.

The examination for renewal of theISO 9001 certification at the Tokuyama
Factory on Apr. 15, 2010

23 Tokuyama CSR Report 2010

we offer Kiken Yochi (hazard prediction)
training, hands-on experience training,
pre-work Kiken Yochi activities, safety
regulation education, internal special education on electricity,
oxygen deficiency, waste incinerators and other areas, foreman
education, troubleshooting training, training on use of fire
prevention and extinguishing systems, evacuation drills, general
disaster drills, traffic safety education, and training on aid
activities following external accidents and disaster prevention.
For quality management, every workplace separately organizes
safety meetings and other opportunities for ISO-related education.
Nineteen key personnel at different workplaces have completed
the ISO 9001 internal auditor development course. In July 2009,
we organized a skills seminar for auditors with in-house lecturers.

Harmony with the Environment•Internal Audit

Tokuyama conducts internal audit on a regular basis inaccordance with the ISO 9001 and ISO 14001 standards andwith the occupational health and safety management system.
The progress of the planned actions and the status of system
operations are audited. If a deficiency is found, it is identified
and corrective actions are instituted.

From formality to utility in QMS
I have been engaged in internal audits under ISO 9001 forseveral years. I audit different departments and find that many of
their quality management systems (QMS) do not work effectively,
as they think so much about formalities that they define
management items not suited to their operations. The ultimate
result is many different deficiencies. More than fifteen years havepassed since Tokuyama introduced the QMS. It is time to departfrom mere formality. We will be striving to perform an audit
based on an understanding of aspects
unique to the audited department, toimprove the convenience and usefulness
of QMS in each department.

Kazuo Tatebe (internal auditor)
Manager, Specialty Products Quality
Assurance Dept.,
Specialty Products Business Div.

■ Fiscal 2009 RC Activities – Priority Issues and Performance
Segment

Priority issues

Performance

Related pages

Management• Review by top management• RC Administration Committee• Safety and Environment Audit

Environmental conservation• Reduction in environmental impacts(air, water quality, etc.)• Reduction in the emission of PRTR substancesand hazardous air pollutants• Decrease in unit energy consumption• Promotion of zero-emission activities• Promotion of green purchases• Reduction in the emission of SOx, NOx, soot, etc.
• Promotion of energy conservation• Facilitation of the use of waste as raw materials
and fuel for cement• Green procurement of office supplies and lighting equipment• Unfailing operation of the environmental
management system

P42
P40
P11—12

Process safety• Zero accidents• Promotion of risk management• Promotion of independent safety management• Proper operation of the safety management system• Safety education and audit of the providers ofcontracted logistics

P37—38
P28

Occupational health and safety• Zero disasters• Efforts to prolong the disaster-free period• Promotion of risk assessment

P37—38Chemical product safety• Securing of product safety• Implementation of product assessment andlabeling assessment• Improving MSDSs and research for new raw materials

P26—27

Cultivation of a relationshipof trust with society andthe local communities• Participation in community activities• Harmonious coexistence with society
and the local communities• Participation in community volunteer activities• Dialogue meetings on RC activities with local
communities (held independently by the factory)• Organization of factory tours

P29—32

Promotion of RC programs
targeting group companies• Dissemination of RC activities• Safety, quality and environmental inspection• Encouragement of ISO certification acquisition• Sharing of RC-related information

P49—50•Environmental impact reduction•Energy conservation•Waste recycling

Education and Training
Employee education on responsible care activities areprovided for all members within the framework of level-specificgroup education.
Practical education and training in relation to environmental
management, safety management, occupational health and safety,
and quality management are offered as part of actual management
activities. To take environmental management as an example,
the Tokuyama Factory and the Kashima Factory have formulated
specific education and training plans in accordance with the
ISO 14001 environmental manual to offer education on theimportance of environmental conservation and compliance with
relevant laws and rules to employees and contracted workers alike.
In safety management and occupational health and safety,

Harmony with Society

P22—24

P36
P22—24Tokuyama CSR Report 201024

Tokuyama’s CSR Activities

Harmony with Society

Addressing the Plastic Window Sash Problem

toward Regaining Trust

The Tokuyama Group has been addressing the plastic window sash issue for a year. Placing top priority on
customers’ peace of mind, we are aiming to accomplish two missions. The first mission is to repair customers’buildings/houses as soon as possible to ensure legality and rebuild trust. The second mission is to takesincere and efficient steps to ensure that the dishonesty problem is not repeated.
More time is required to complete the two missions, and we will continue to seek the understanding andcooperation from those involved. Meanwhile, we will support Excel Shanon’s efforts with the collective
strength of the Group, to resolve the problem at the earliest possible time.

Actions to prevent recurrence
The table on the right lists the steps to be taken to preventa recurrence. The urgent measures, which were to becompleted within three months, were finished by June 2009.
All the short-term measures, which were to be completed
within a year, were finished by March 2010, as scheduled.
(Details about the status of the measures were published on
July 3, 2009 and April 1, 2010 on Tokuyama’s website. (inJapanese only))
http://www.tokuyama.co.jp/news/topics
The medium-term measures, which are to be completed
within two years, are currently in progress, with completion
targeted for March 2011. During this process, the TokuyamaGroup will be (1) improving the Group management
mechanism, (2) improving the auditing system and (3)enhancing the compliance system. Meanwhile, Excel Shanon
will be expanding the scope of its ISO 9001 certification tobolster its quality assurance system.

Based on implementation of the ISO 9001 quality management system, Tokuyama’s quality assurance activities
place first priority on the customers. The safety management of chemical substances is rigidly instituted at
all stages of the product process ranging from research and development to disposal and even includingtransportation.

TopicsAssessments for ensuring safety

Satisfaction and Security – Quality Assurance System

A furnace for testing fireproof/fire-resistant performancecompleted on Oct. 29, 2009

Progress of the recurrence prevention measures announced
in March 2009
Implemented
Urgent measures g Completedby➊ Total permeation of awareness of corporate ethics andcompliance➋ A fact-finding survey on ministerial authorizations at the Ministryof Land, Infrastructure, Transport and Tourism➌ Establishment of an application system for authorization of
fireproof/fire-resistant specifications➍ Education on the system for authorization of fireproof/fireresistant specifications➊ Adoption of management regulations on authorization of
fireproof/fire-resistant specifications➋ Internal communication of the compliance declaration and thequality assurance policy

Tokuyama

Excel Shanon➌ Bolstering of the quality assurance system

Short-term measures g Completed

Implementedby➊ Institution and distribution of the Tokuyama Group Code ofBusiness Activities➌ Development of the management system relating to relevant laws
and regulations

Tokuyama➍ Enhancement of the internal auditing system under ISO 9001
➎ Education for Group firms’ officers at the time of appointment➊ Compliance check and education➋ Revision of regulations on approval

Excel Shanon➌ Revision of the development system

Medium-term measures g Underway forcompletion in Mar. 2011
➋ Improvement of the auditing system

ImplementedbyTokuyama➌ Enhancement of the compliance system➊ Expansion of the scope of the ISO 9001 certification

As a company that is dedicated to its customers andthat is always preferred by customers, Tokuyama places
first priority on supplying customers with premium-grade
products and services to meet their needs and to reassure
them about their use.
Tokuyama implements quality management andquality assurance activities under the ISO 9001 quality
management system. Our actions to achieve compliancewith the ISO 9001: the 2008 edition, which was releasedin November 2008, have been completed.
Our management system covers the entire Company,
including its branches, sales force, and the researchsection. We make sound and quick responses tocustomers’ complaints and requests. Information from
customers is sorted by division and posted on thegroupware portal so that it can be shared.

Comprehensive Safety Management of Chemicals
Data Acquisition and Analysis on the Safety ofChemical Substances
Tokuyama collects and organizes safety data coveringchemical substances so that the safety of the chemicals canbe assessed. The data collected and organized is used toprovide safety data on products and waste.
We are working to gain information on the hazards
and toxicity of all chemical substances to be newly
used, manufactured and discarded by means of productassessment, waste surveys and the analyses of new raw
materials.

Risk Assessment and the Management ofChemicals➋ Improvement of the internal whistle-blowing system (helpline)➊ Improvement of the Group management mechanism

25 Tokuyama CSR Report 2010

Relationships with Customers

In fiscal 2009, Tokuyama carried out 57 product assessments and 288 labeling assessments.
Compliance with GHS has been secured with respect to the products containing any of the chemicals
subject to three laws (See “Compliance with GHS” below).

Action to repair buildings for ensuring legality
The repair of buildings/housese for ensuring legality
is based on two policies. The first is to acquire new
authorizations for fireproof/fire-resistant specifications andto use Excel Shanon’s newly authorized products in the
repair work if at all possible. The second is to use the existing
plastic sash frames to minimize the burden on customers
during the repair work. Tokuyama is offering personnel andfinancial support to Excel Shanon to facilitate repair andsupply of the newly authorized products for replacement.
However, the program for the repair and replacement has
regretably fallen behind schedule, as it has taken longer than
expected to obtain the new authorizations. Acquisition of therequired authorizations is nearing completion. We will thenbegin accelerating the repair process.

Tokuyama is committed to building good relationships withall stakeholders, to practicing management in harmony withsociety and to engaging in advanced CSR activities to pursue
growth together with society.

To eliminate any pollution to the environment, we monitor
the concentration of chemicals in effluents and gas emissions.
In addition, we simulate the distribution of theconcentration of chemicals and analyze in detail their
movement. Their risks are evaluated after combining thedata on concentration and the safety data. The resulting
assessment data are used to improve equipment safetymeasures and the manner of handling chemicals as well
as for the education of those who deal with chemicals.
They also serve to increase product safety and to provide
customers with accurate information.

Compliance with GHS
The Globally Harmonized System of Classification andLabelling of Chemicals (GHS)*¹ refers to a system promotedby the United Nations under which chemicals are sorted by
the type and level of hazard and toxicity in accordance withinternationally standardized rules to provide labels and safety
data sheets that can be understood at a glance.
For fiscal 2009, our quality control goal was addressing
GHS compliance. We performed GHS classification of all our
products, including those under development and molded
items, in an effort to create GHS-compliant labels andmaterial safety data sheets. In particular, for those productsthat contain any of the chemicals subject to the three laws
described below, we have already completed creating labels
and MSDSs to comply with GHS.
Chemicals that are subject to the three laws refer tothe poisonous and deleterious substances controlled by
the Poisonous and Deleterious Substances Control Law,
those subject to notification under the Industrial Safety
and Health Law and designated substances under the
Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof.
*1 GHS refers to the globally harmonized system of classification and labelling ofchemicals.

Excel Shanon

Tokuyama CSR Report 201026

Special Feature

Harmony with Society

Provision of Information on Chemical Products

Tokuyama assesses the safety of both the chemicals andequipment units that it manufactures, in every stage fromresearch and development through to commercialization. We
made 57 assessments of this kind in fiscal 2009.
We also conduct labeling assessments for our catalogues,
MSDSs and other technical documents. The appropriatenessand legality of the representations on labeling and packaging
of products, prototypes and sample products are examined
and any inappropriate representations are corrected. In fiscal
2009, we conducted 288 labeling assessments.
Process Flow in the Assessment Structure for Ensuring
Safety and Environmental Conservation
Product
Assessment

Commencementof Research

Development Dept.
General Manager
and others(primary assessment)

Commencementof Development

General Manager ofthe Research &Development Div.
and others(secondary assessment)

Study onCommercialization

Product Assessment
Committee(tertiary assessment)

Equipment Design

Prior to Marketing(operations)

After Operations

Safety andEnvironmental
Assessment

Labeling
Assessment

Labeling
Assessment
Subcommittee(prototypes)

Labeling
Assessment
Subcommittee(products)

Safety andEnvironmental
Assessment
Subcommittee(design)
Safety andEnvironmental
Assessment
Subcommittee(prior to operations)

Report on Actual
Conditions(environment)

Compliance with REACH and CLP Regulations
To comply with the European Union regulations on
registration, evaluation, authorization and restriction ofchemicals (REACH), which came into force on June 1, 2007,
Tokuyama carried out a preliminary registration of products
subject to the legislation by December 2008. Placing toppriority on three items subject to the first registration deadline
of November 30, 2010, we participate in the consortium
as necessary, collect information and hold internal liaison
meetings. To also ensure compliance with the regulations
on classification, labelling and packaging (CLP), which has
been in effect since January 20, 2009, we are making a listof controlled substances and gathering information ahead ofregistration in December 2010.

27 Tokuyama CSR Report 2010

Tokuyama offers MSDSs for all its products andprototypes to its customers and distribution agents. MSDSs
have been prepared for around 600 products as of March
2010. In particular, for the 37 products that are transported inlarge quantities and heavily used by our customers, MSDSs
are always made available on the Company’s website.
To deal with any problems in transit, we have created
Yellow Cards*² and each of our drivers carries them. They
include information on immediate measures to be taken incase of emergency. MSDSs and Yellow Cards for individual
products are published on our Intranet to ensure the sharingof safety information.
*2 A Yellow Card is a commonly used name for an emergency notification card
containing information on the immediate action to be taken by the driver, nearby
operators, firefighters and police officers in the event of any accident involving aparticular chemical substance in transit.

Safety Management of Waste

Safety andEnvironmental
Assessment
Subcommittee(basic planning)

Harmony with Society

Harmony with the Environment

Relationships with Customers

Assessment of Products and Labeling

Assessment
StagesTokuyama’s CSR Activities

Waste is handled in the same way as our products. We
prepare MSDSs for waste and distribute them to waste
disposal operators and distribution agents to ensure safety inhandling and transportation. Particularly in the case of highly
hazardous waste, Yellow Cards have been created to ensurethat every driver carries them and that they can deal with any
problem during transportation.

Promotion of Safety and Environmental Management in the Distribution Process
Guidance and Education on Safety Management toLogistics Contractors
At different locations, Tokuyama organizes periodical
safety meetings with logistics operators all over the country
under contract to transport its products. We perform logistics
quality audit for them to improve the level of logistics safety
management and quality management, and actively promote
the practice of accident reporting and anti-accident actions.
On the premises of the Tokuyama Factory, dedicated safety
managers perform regular patrols of loading points andworksites, and provide periodical guidance on-board for
freight vessels in collaboration with logistics companies toraise safety awareness.
To ensure that an appropriate emergency response
can be rapidly taken in the event of any accident during
land transport, relevant personnel always carry yellow
cards printed with emergency actions and the vehicles
are equipped with the necessary materials and devices. In
addition, an emergency communication network and an
emergency organizational formation have been formed.
Emergency communication drills and disaster drills are held
in preparation for possible accidents.

EH&S*3 Activities for Tokuyama’s Products
As part of the Responsible Care activities, the IC
Chemicals Department gives positive support to educational
activities for users concerning the proper use of Tokuyama’s
products.
The EH&S Promotion Team was set up to support these
activities. It organizes seminars for users of Metaclene,
our chlorinated solvent product (dichloromethane). Manydifferent laws and regulations specify this particular chemical
as volatile organic compounds (VOC) and require that its
emissions be cut. This substance cannot be used without
considerable knowledge and skill. The seminars offer
information about the environment, health and safety. The
team also gives suggestions on proper use based on anunderstanding of maintenance and management at individual
environments and facilities.

Risk Assessment
Before hazardous materials are transported, we conduct
risk assessments to verify the safety level of the mode oftransportation and the trucking route, and to verify the
emergency measures to be taken in the event of an accident.
If anything that presents a high level of risk is found, it isremedied methodically. Whenever any new logistics facility
is constructed or expanded inside or outside a factory, afacility safety assessment is conducted to assess the risk fromthe phase of facility design.
We continue our check on conditions at users and ouractivities to redress unsafe aspects, including malfunctioning
facilities at the tank truck delivery destination. In addition, we
work unfailingly to ensure full compliance with the Marine
Pollution Prevention Act. For instance, we ensure that theEmergency Action Manual for the Prevention of Hazardous
Liquid Contamination is always available at relevant groundfacilities.

Crisis Management System
We have established emergency response criteria to deal
with potential crises in logistics operations. The equipment
and materials necessary for disaster prevention are always
ready for use. Jointly constructed with logistics operators,
the mutual disaster control assistance system is in place atprincipal locations in Shunan, Kanto, Kansai, Chubu, andother key districts. We are encouraging our contracted freightcompanies to equip their trucks with global positioning
systems (GPS).

Environmental Preservation Measures and Energy
Conservation in Transportation
Yellow Card

*3 EH&S stands for environment, health and safety.

Tokuyama Logistics Corporation is the Company’s generalcontractor of transport services. It has renewed its green
management certification obtained in April 2009 and isactively promoting environmentally friendly operations.
Together with our related companies, we are introducing
vehicles that conform to exhaust regulations and energy
efficiency, as well as digital tachographs and other devices
that support environmentally friendly driving.
Following the Law Concerning the Rational Use of Energy,
we are actively making efforts to conserve energy as a
specified cargo owner. On a ton-kilometer basis, we havereached a modal shift ratio*4 of 95%, chiefly with marinetransport.

A safety meeting for relevant business operators in the Osaka district*4 The modal shift ratio is the ratio of freight or passengers transported by alternativemeans, specifically rail and ship in substitution for automobile and aircraft.

A disaster drill was held at AST Inc. in Osaka, in anticipation of ethylene
chloride leakage from a tank truck.

The Daisan Tokuyama

A workshop at the Osaka Branch on Apr. 16, 2010

Tokuyama CSR Report 201028

Tokuyama’s CSR Activities

Special Feature

Harmony with Society

Relationships with

Forest Volunteer Activities

Communities and Society
Tokuyama constantly aspires to be a company that is valued by local communities and broader society alike.
As part of its CSR activities, Tokuyama has been engaged in a broad array of activities directed at making asocial contribution. These activities include financial support for the development of science and technology,
volunteer activities for the restoration of a disaster area, and assistance to facilitate the sound growth of ourchildren. In addition, we hold RC community dialogues to communicate with local residents.

A project for creating a forest for water conservation, called
the Meeting for Exchange among the City, the Forest andthe Water, took place under the auspices of the Yamaguchi
Prefectural Shunan Agriculture and Forestry Office at themunicipal Fureai-no-Mori forest at Susuma-Hongo in the cityof Shunan. Aimed at securing a stable supply of high quality
water by creating a forest serving as a green dam, which isamong the multiple functions of forests, this volunteer program
included the removal of weeds that impede the growth oftrees, improvement cutting, thinning, and planting of broad
leaf trees. From Tokuyama, 151 staff members took part in the
project and worked under the guidance of forestry instructors.

Communication with the Local Community
RC Community Dialogue at the Tokuyama
Factory
Results of the pre-dialogue survey

Not answered%
Power plant

2

The Forest Volunteer Activities on Oct. 17, 20095%

Volunteer Activities for the Restoration of aDisaster Area

Electrolysis plant%

7

Polycrystalline
silicon44

11%

Cementresponses 55%

Soda ash%

20

With respect to environmental and safety matters involving
the industrial complex, respondents have day-to-day
interests in…

10
6 5

Odor

Dust, soot, etc.

Smoke fromsmokestacks

5
0

14

13

12

5

1 2

5 5

3

0

3

Not answered%9

Not sure
%
Other

2

2%

Odor
%

7

Water
pollution

9%Airpollution

29 Tokuyama CSR Report 2010

The Fifth Community Dialogue in the Shunan
District
The Fifth Community Dialogue in the Shunan District took
place at Tosoh Club in the city of Shunan. Sixteen companies
in the Shunan Petrochemical Complex organized this eventwith the aim of securing an understanding about theirenvironmental and safety actions from the local public. The
Dialogue attracted a total of 159 participants, including 51
from neighboring community associations. That was the firstevent in the series to offer a tour of the complex companies’
factories, in which the participants realized the tremendous
extent of the complex. The tour was followed by a keynote
lecture on the subject of waste and recycling, delivered byProfessor Kenzo Sekiya
of Yamaguchi Prefectural
University. This wasfollowed by an active
exchange of views among
local residents, corporate
organizers, government
officials and education
The Community Dialogue in theexperts.
Shunan District on Nov. 16, 2009

54

Dust,
soot,
etc.
%

31

responses
Smoke from

11% Noise smokestacks
17%
11%

Mochitsuki Zosan
Mochitsuki Zosan, a group of volunteers from among
Tokuyama’s staff members, participated in a civic activity
exchange meeting at the Yamaguchi Shunan Prefectural Office.
Its 19 members demonstrated the making of rice cakes anddistributed rice cakes flavored with grated white radish or
soybean flour or others. At times, small children participated in
the making of rice cakes. The event ended with great success.
Local volunteer activities
conducted by employees
are part of Tokuyama’s
CSR activities.

The civic activity exchange meeting on
Nov. 29, 2009

A volunteers group – Mochitsuki Zosan

0 0 1

Not specified

14 14

To support the recovery of the area afflicted by thetorrential rainfall that hit the Chugoku and northern Kyushu
Regions in July 2009, Tokuyama’s volunteers took part indisaster restoration activities to work with other volunteers. A
huge volume of earth and sand were removed using shovels
and wheelbarrows from around private houses and side
ditches inaccessible to heavy machinery. It was very tough totackle the mass of earth and sand under a scorching sun, but
the members worked diligently in the hope that local residents
would soon be able to resume a normal life.

93 responses collected
Fiscal 2008
Fiscal 2009

Other

11

Air pollution

10

Water pollution

15 15

19

Dioxins

23
19

Noise

20

Soil pollution(%) 25

Respondents perceive recent improvements in the situation
concerning…

The RC Community Dialogue at the Tokuyama Factoryon Aug. 20, 2009

Harmony with the Environment

Respondents associate Tokuyama with…

Fire and
explosion

On August 20, 2009, the Fiscal 2009 RC Community
Dialogue took place at Tokuso Kaikan. With anobjective of gaining the understanding of community
associations around the Factory about the environmental
and safety efforts at the Tokuyama Factory, this event
was the sixth of its kind. It drew 26 participants from
community associations and two from the Shunan
City Government. Mr. Ohno, deputy manager of the
Department of the Environment and Sewerage of the
Shunan City Government, delivered a presentation on theenvironment in the Shunan area. From Tokuyama, generalmanagers of the Cement Manufacturing Department,
the Steam & Power Generation Department, theChemicals Manufacturing Departments 1 and 2 and the Si
Manufacturing Department took part in the event to heardirectly from representatives of community associations.
A survey conducted prior to the event revealed that
their biggest concerns were dust, soot and odor among
other environmental issues, and that they still associatedTokuyama with cement and soda ash. This sixth RC
Community Dialogue offered an opportunity for a factory
tour centered on the plant manufacturing polycrystalline
silicon, which has now become Tokuyama’s core business.
We believe that the event, together with our presentations,have helped convey Tokuyama’s operations and its
commitment to environmental conservation, process safetyand disaster prevention.

Harmony with Society

A scene from restoration work

Working as a disaster relief volunteer after
the torrential rains in Yamaguchi Prefecture
In July 2009, a heavy downpour caused a landslide in
the Yamaguchi Prefecture city of Hofu. In answer to a callfrom a Tokuyama volunteer, I visited the affected district.
The conditions were beyond description.
The restoration work under a blazing sun
was exhausting, but we worked with theaspiration of returning local life to normal
as quickly as possible.

Muga Nakagawa
Specialty Products Quality Assurance Dept.
Specialty Products Business Div.

Mochitsuki Zosan started its activities in 1983. That year
was marked by an explosion at the Tokuyama Factory, whichcaused concern for local residents. We thought about a waythat we could give back to the community, and a dozen or
so volunteers launched the activities. We continue to visit
institutions in the city to demonstrate rice-cake making andgive theatrical performances.
I think that our activities over 27 years are not based on our
stance of offering something in accordance with volunteerism,
but are motivated by the sincere kindness that people in theinstitutions show to us. Our activities are a major asset as wellas an experience that changes our outlook on life.
I hope that young people will learn about
these invaluable non-business activities,
which help them broaden their perspectives
to the local community, and help sustain ourgroup’s activities.

Masaki Tsuchiya
Plant Maintenance Dept., Tokuyama Factory

Tokuyama CSR Report 201030

Special Feature

Harmony with Society

Tokuyama’s CSR Activities

Harmony with Society

Harmony with the Environment

Relationships with Communities and Society

Communication with Overseas
The Table For Two Program
The Tokuyama Factory launched the Table for Two (TFT)
program in December 2008. The cumulative total donations
raised by the program had reached 239,243 yen as of the endof March 2010. With every low-calorie TFT lunch purchased,a donation of 20 yen is made to a program that provides
school meals in developing countries. In addition, hand-madedonation boxes preparedby employees have been
set up in the Factory’s
workplaces so thatanyone can participate in
the program.

Tokuyama Science Foundation
Offering uniforms to children in Nepal
The program for donating and delivering to children in
Nepal our uniforms for female employees that are left unused
following a design change is now in its fifth year. In thefiscal year under review, we again delivered the uniforms to
Balwapati Primary and Secondary School in Nagarkot, Nepal,
with the help of Ms. Fumiko Kojima of Shunan Municipal
Shuyo Elementary School. We enjoyed seeing the smiles ofschoolchildren. She gave us a heartwarming message: “WhenI asked children when they wore the uniforms, they answeredthat they used them when coming to school in winter because
it was cold. I was quite moved.”

Twenty years of history

Children are vital to the future of our planet.
Visualizing them smiling happily, I eat the TFT
lunch every Wednesday. It is just once a week, notdoing one good turn a day, and so it is neither
a burden nor pressure. I hope that this activity
will be continued and expand to the rest ofJapan and the world.

❷ Financial support forinternational exchange:❶ Research grants:

65 million yen to 235 recipients

619 million yen to 318 recipients

The Foundation subsidizes theparticipation of young researchers aged
45 or younger in universities and research
institutions in Japan in international
meetings held outside Japan. After
returning to Japan, the recipients are
required to submit reports on the results.

The Foundation offers research grants toyoung researchers aged 45 or younger
in universities and research institutionsin Japan. After the financial support
period, a research presentation meetingtakes place with the participation of allrecipients.

I eat the TFT lunch every Wednesday.

the country, financial support for exchange at international
symposia and grants for campaigns to extend and stimulateinterest in science and technology among elementary andjunior high school children.
The Foundation has to date offered a cumulative totalof 741 million yen for 625 projects. Many who enjoyedsupport from the Foundation as youths are today leading
professors at universities nationwide.

The Tokuyama Science Foundation was established on
September 19, 1988, to commemorate the 70th anniversaryof Tokuyama’s founding. The mission of the Foundation is
to offer financial support for research into new materials
and related subjects in science and technology, and toraise awareness of science and technology, therby enablingsocioeconomic development and improving people’s lives.
In the more than two decades since it was established,
the Foundation has been offering research grants to young
researchers at universities and research institutions across❶

Cumulative total
financial support
from fiscal
1988 to 2009:
741 million yen❹

Shigehiro Kikuchi
Assistant Manager, General Dept.
General & Personnel Affairs Div.

16 million yen to 31 projects

The Foundation provides financial
support for the operations of international
conferences to enable researchers
to exchange information with peers
overseas.

41 million yen to 41 projects

Encouraging the Next Generation

The Foundation backs campaigns that present the excitement
and wonders of science and technology to children. The
Chugoku/Shikoku Branch of the Chemical Society of Japan playsa central role in organizing a series of exhibitions titled “An
Exciting World of Chemistry” in the summer vacation season.
In Yamaguchi Prefecture, there are invention clubs for boys andgirls operating in seven cities, towns and villages.

All recipients of research grants in fiscal 2008

Internship for high school students
Two pupils from the Tokuyama Commercial and TechnicalHigh School joined the Tokuyama Factory as business interns
from July 27 to 31, 2009. Fiscal 2009 was the third year of ourinternship program. It offered the interns a factory tour, an
opportunity to learn about business manners, experience in
office work and many other skills.

Cumulative total of grants and financial support(million yen)

800
700
600
500

Cumulative total financial support
from fiscal 1988 to fiscal 2009:

741 million yen

400
300
200
100

A scene from the internship training

The Foundation celebrated
its 20th anniversary andorganized a commemorative
ceremony.
It will continue to steadily
bolster its support programsfor the development ofscience and technology.

(FY)

0

2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988

An environmental event hosted by the Yamaguchi
Prefectural Government, titled Yamaguchi Iki-Iki Eco Fair,
took place at the Yamaguchi Kirara Expo Memorial Park in
Ajisu, Yamaguchi City, on October 17 and 18, 2009, attracting
approximately 40,000 visitors.
As a manufacturer of polycrystalline silicon for solar cells,
Tokuyama ran an exhibition booth to explain its efforts to
reduce energy consumption and to combat global warming
through the spread of solar cells. We provided parents andchildren visiting our booth with the opportunity to do a quizon solar cells and enjoy solar-operated slot cars.

❸❸ Financial support forinternational symposia:❹ Grants for campaigns on
science and technology

Schoolchildren at Balwapati Primary and Secondary School

Taking part in the Yamaguchi Iki-Iki Eco Fair as an
Exhibitor❷

Commemorative ceremony for the
20th anniversary on Dec. 4, 2008

Exchange meeting for
invention clubs for boys
and girls in Yamaguchi
Prefecture

Exhibition: An Exciting World of Chemistry

Visitors crowd Tokuyama’s exhibition booth

31 Tokuyama CSR Report 2010

Tokuyama CSR Report 201032

Tokuyama’s CSR Activities

Special Feature

Harmony with Society

Relationships with Employees

Work-Life Balance

Addressing the Development of Human Resources
Set up in 2007, the Skills Education and Training Center
offers manufacturing skills education centered on basic skills
and safety to operators with limited experience. It operates on
the educational slogans of “Experience, feel and learn” and“Education that encourages trainees to think by themselves
instead of teaching them.”
The basic skills education allows trainees to learn about
internal structures and detailed operations of systems by
disassembling, drawing, and reassembling actual equipment sothat they can study the basics of the systems. Safety education
focuses on experiences, such as getting caught in machinery,
being suspended with a safety belt, and observing the impactof an object falling from a height.
In fiscal 2009, the Manufacturing Skills Education Course
II was launched for operators in their seventh or more yearof service. It covers four subjects: identifying and solving
problems, electricity, instrumentation and mechanics. A
cumulative total of 146 trainees have taken this course or the
Manufacturing Skills Education Course I launched in fiscal
2008. Inaugurated in fiscal 2008, the hazard experience
course for group firms and contractors has been offered 20
times to a total of 326 trainees.
Called the Manufacturing Skills Education Course III, an
external education for candidates as future team leaders was
also launched. Eight trainees took part.

Globalization Initiatives
Tokuyama invited local staff from group firms
operating in Asian countries to its Asia Human Resources
Development Meeting. Based on the key concepts of linkage,communication and narrowing of gaps, the meeting notified
individual companies of the policies of the Company’s
top management, presented actual examples by local
personnel and included sessions with Japanese personnel for
discussions on a wide range of subjects, such as educating
new employees, stances on promotion and ways to motivate
workers.
The participants have few opportunities to speak with one
another in their day-to-day work, and the meeting gave themthe opportunity to share different issues and activities beyond
national borders and language barriers. We will provide similar
opportunities on a regular basis to stimulate the TokuyamaGroup.

Trend in the Number of Employees
on Childcare Leave

Set up in 2003, the Gender-Free Committee is dedicatedto encouraging the next generation of workers, promoting
affirmative action, and improving the working environment,
particularly to prevent sexual harassment. The Committee
meets regularly and carries out other activities. In fiscal 2009,it held four meetings and conducted a questionnaire on sexual
harassment to identify problems. The Committee will study
the findings and step up its efforts to boost awareness. In fiscal
2010, the Committee will support the childcare assistanceprogram and increase its affirmative action initiatives.

(persons)

Fiscal 2005

Fiscal 2006

Fiscal 2007

Fiscal 2008

Fiscal 2009

13

3

11

6

5

Actions toward Diversity (the employment of physicallychallenged persons and retiree reemployment
program)
In fiscal 2009, 1.80% of Tokuyama’s employees were
physically challenged persons, meaning that the Company had
satisfied the statutory employment requirement for physicallychallenged persons of 1.80% for the third consecutive year.
Going forward, we will expand opportunities for physicallychallenged workers, in an active effort to address theemployment issues.
Tokuyama instituted a retiree reemployment scheme infiscal 2001, one of the first companies in its industry to do
so. In fiscal 2009, 50 of the 100 employees who reached theage of retirement were reemployed. We anticipate that these
employees will continue to display their excellent skills andexpertise in their respective workplaces.

An activity of the Gender-Free Committee: Inviting employees onchildcare leave(%)

Fiscal 2005

Fiscal 2006

Fiscal 2007

Fiscal 2008

Fiscal 2009

1.80

1.65

1.93

1.98

1.80

Promotion of Improvements to Mental and Physical Health
Improvements to Health through the THP

Training on Counselors’ Perspectives
Based on individual psychology (Adlerian psychology) ,training on counselor’s perspectives was offered to persons
who had been newly appointed to managers. Through lecturesand exercises, the trainees realized that even trivial words oractions by a superior can have a significant impact on humanrelations in the workplace.
*1

33 Tokuyama CSR Report 2010

Activities of the Gender-Free Committee

To achieve an appropriate work-life balance, Tokuyama
is revising systems from many different perspectives. In fiscal
2008, we extended the period of childcare leave to allow
parents to remain on leave until their child turns two years old.
In addition, we introduced a shorter working hours program.
More than half of those who have returned from childcare
leave take advantage of this scheme. We have also addeda paid childcare leave program in fiscal 2009 that enables
any employee to take a maximum of five days’ leave withineight weeks of their spouse giving birth. To date, eleven male
employees have benefited from this program.

Trend in Employment Rate of Physically Challenged
Persons

Asia Human Resources Development Meeting on Mar. 15, 2010

A training session

Harmony with the Environment

Personnel Management System to Energize Human Resources

Tokuyama is committed to improving the working environment to ensure that individual employees can exhibit
their capabilities and engage in their everyday duties with motivation. In fiscal 2009, we focused energy again
on human resources development and on improving mental and physical health, with a view to improving ourfront-line capabilities and pursuing globalization.

Capitalizing on the Skills Education and Training
CenterHarmony with Society*1 Individual psychology (Adlerian psychology)
Refers to a system of ethics and treatment methods created by Austrian psychologist
Alfred Adler (1870-1937). Also known as the psychology of encouragement, it serves
to handle and support human relationships in education, communication between
parents and children, and other areas in safe and practical manners.

In accordance with the Guidelines for Health Improvement
under the Total Health Promotion (THP) Plan put forward
by the Ministry of Health, Labour and Welfare, Tokuyama
operates an extensive program of activities to address priority
issues in combating lifestyle-related diseases and promoting
mental health.
To tackle lifestyle-related diseases, our industrial physicians
and medical staff provide employees with individual
guidance on the basis of regular health checkups. Our healthmanagement personnel also visit workplaces to run Mini
Health Classes.
To promote mental health, we offer an online occupational
stress checkup service to encourage personal follow-ups andto improve the workplace environment.
In fiscal 2009, the target recipients of the mental training
were expanded from those in managerial positions to all
employees with the aim of building up stress tolerance ofindividual employees.

Supporting mental and physical healthTokuyama introduced the occupational stress checkup in2007 to identify employees with health issues at an early stage
based on the results of physical and mental examinations, toinform them and to provide the support they need to recovery.
Both mental and physical health are essential to vigorous
work. Some employees are unaware of their own healthissues. We will talk with them to help them
become aware of changes in their mental
and physical conditions, and we will help
them deal with any changes while they
are still minor.

Akemi Ozaki
Public Health Nurse,
Health Management Center (Tokyo),
General & Personnel Affairs Div.

Tokuyama CSR Report 201034

Tokuyama’s CSR Activities

Special Feature

Harmony with Society

Harmony with Society

Harmony with the Environment

Relationships with Shareholders

Relationships with Trading Partners

To earn the understanding of shareholders and investors and to respond to their confidence and expectations,
Tokuyama is actively committed to timely, appropriate, and fair information disclosure. Through such disclosure,
we seek to engage in a broad dialogue with society.

Tokuyama regards its suppliers as important and good business partners, and continuously strives to build
relationships of trust with them through fair transactions. The Purchasing & Distribution Dept. makes constantefforts to ensure compliance and fulfill its corporate social responsibility.

TopicsInformation Disclosure

The Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, commonly abbreviatedas the Subcontract Act, is vital to the Purchasing & Distribution Dept. in the context of compliance.
Tokuyama gives explanations about the legislation on its intranet and obliges purchasing personnel toparticipate in workshops to deepen understanding of the law among staff members and ensure compliance.

Communication with Investors
At Tokuyama, the president briefs institutional investors
and analysts in Japan on the company’s business on a regularbasis following the announcement of full-year financial resultsin May and the first half financial results in November. We
also offered explanations individually on 230 occasions infiscal 2009. As overseas IR activities, we organized meetings
with overseas institutional investors and analysts in London,Frankfurt, New York and Hong Kong. We seek to maximize
direct communications with investors and analysts in Japanand overseas.

Actions to comply with the Subcontract Act

Fair Transactions
On the basis of its fair and sound partnerships with
suppliers, Tokuyama carries out its purchasing operationsin accordance with its Basic Purchasing Policy, to supply

The financial results briefing

its customers with good products backed by outstanding
technologies.

Tokuyama’s Basic Purchasing Policy
Providing Information with Communication Tools
To disclose information to shareholders and institutional
investors, Tokuyama set up a web page, For Investors, on its
website to provide stock information, consolidated financial
data, IR reports such as financial summaries, electronic public
notices, financial statements, annual reports and presentationmaterials for financial results briefings, information on general
meetings of shareholders and an IR calendar. To facilitate
understanding, we remain determined to actively provide
timely, appropriate and fair disclosure of information.
For Investors on Tokuyama’s website

Annual Report

Optimum Transactions

Partnership

Tokuyama evaluates its suppliers from an overall perspectivethat includes quality, pricing, delivery dates, technicalcapabilities, credibility, safety, after-sales service, ease ofmaintenance, the ability to respond to incidents, compatibility
with existing facilities and business stability to choose
suppliers that best suit the Company.

Tokuyama aspires to be a good partner that shares with its
suppliers the common goal of creating good products. To
attain this goal, Tokuyama welcomes suppliers with uniqueproposals for creating an environment that gives new suppliers
easy access to opportunities for transactions.

Statutory Compliance

Promotion of Green Purchasing

In its purchasing activities, Tokuyama complies with theletter and with the spirit of the relevant laws and regulations.
Tokuyama also requires its suppliers to comply with them andchooses suppliers that meet the requirement.

Tokuyama views the Reduce-Reuse-Recycle (3R) perspective
as another possible criterion for choosing suppliers to promote
environmental conservation in its purchasing activities.

Note: The Basic Purchasing Policy does not constitute part of any agreement, nor does it indicate any offer to enter into an agreement.

Composition of Shareholders(as of March 31, 2010)
Financial instrument
brokers
11,594

Other Japanese corporations

3.3%

37,852

10.8%
Foreign corporations
and other foreign investors
65,004

18.6%

Financial
institutions
157,757

45.1%

Providing timely and easy-to-understandinformation
My assignment is website production. My job is to update
data such as business and financial information quickly andaccurately, and to produce web pages, to help improve public
understanding about our company.
This year, a new web page for CSR activities reports has
been launched to enable timely presentation of our social
contribution activities. We will continue our efforts to provide
rich contents.

Individuals
and others
77,462

22.2%(Unit: thousand shares)

Miwa Shimoozaki
Corporate Communications &Investor Relations Dept.,
Corporate Planning Div.

35 Tokuyama CSR Report 2010

Aiming to sign basic agreements about transactions
The Purchasing & Distribution Dept. continues its effort
to sign basic agreements setting out important generalprovisions with all suppliers. These agreements seek
to clarify the general terms and conditions and are notused to infringe on any particular contracts or provisions.
This initiative helps raise the quality and efficiency ofpurchasing agreements, and promotes internal control andcompliance efforts inside and outside the Company.

Committed to stable procurement
Our goals are to minimize purchasing risks and ensurestable procurement under fair and healthy partnerships with
suppliers. Our goals encompass not only the stability ofdelivery times but also quality, compliance and fair pricing.
We believe that regular audits are needed to assess suppliersin terms of quality and other factors, so that we can monitor
performance while achieving good partnerships with suppliers
to fulfill our mission. We are working on
day-to-day procurement activities withtransparency, fairness and soundness toattain more stable procurement.

Yasuhiro Kishimoto

General Manager,
Purchasing & Distribution Dept.,
Corporate Administration Div.

Tokuyama CSR Report 201036

Tokuyama’s CSR Activities

Special Feature

Harmony with Society

Process Safety, Disaster Prevention andOccupational Health and Safety
Tokuyama believes that safety is an essential part of business activities and that ensuring safety is the first stepin achieving coexistence with society. In taking this stance on safety, Tokuyama thoroughly conducts process
safety and disaster prevention activities as well as occupational health and safety efforts. With the aim ofpreventing accidents and disasters, the Company is striving to provide a favorable working environment.

Commitment to Safety and Disaster Prevention
All-Inclusive Safety and Disaster Prevention
Activities
Tokuyama has three safety principles. According to theseprinciples, safety is, in the first instance, a social responsibility
to be met as a corporate citizen. Second, safety is given priority
over all other business activities; and third, security can beachieved by the fact that all staff members have a responsible
attitude and engage in responsible activities.
The Company’s main factory, the Tokuyama Factory, islocated very close to the residential district of the city. We
understand that it is absolutely essential to ensure safe operationof the factory and we make painstaking efforts to ensure safety of
the facilities and the processes. Such efforts include, for example,
safety patrol operations, Kiken Yochi (KY) activities for hazard
prediction, Hiyari Hatto activities for accident control, the five-S
activities*1 and the practice of pointing and calling a name out
loud. These basic activities are strictly practiced with consistently
rising intensity. To enhance both risk management and crisis
management, we strengthen the security control system,
implement the plan-do-check-act (PDCA) cycle to improve ourlevel of security control, identify the sources of hazards andenrich our security education and training.
In preparation for any unexpected crisis, we review andupgrade our disaster prevention system, including the structure,communication, disaster control activities, materials andequipment for disaster prevention and rescue and first-aid
operations. In fiscal 2009, we introduced the earthquake early
warning system and installed additional security cameras fordisaster prevention to upgrade the system for early detection ofabnormalities.
We also conduct a number of different drills. These
specifically include general disaster drills jointly held with
the Shunan Fire Headquarters, departmental disaster drills,
emergency drills organized in collaboration with associatedcompanies and contractors, competitions in disaster control
skills held on the factory’s premises, the mustering of disasterprevention personnel, and resucue and first-aid drills. These drills
focus on the active use of materials and equipment for disasterprevention and on smooth links with headquarters. A desktop
command drill has been introduced to boost the ability to deal
with disasters as they happen.
The general disaster drills take place in view of local residents
so that they will be able to understand and place their trust in the
security activities of the factory.
*1 Five-S activities: An initiative toensure the five-S features at theworkplace. The five-S’s refer to
Seiri (tidy), Seiton (organized),
Seiketsu (clean), Seiso (cleaning)
and Shitsuke (disciplined).

Scene from a general
disaster drill

37 Tokuyama CSR Report 2010

Encouraging Voluntary Safety Activities
The Tokuyama Factory is accredited as a certified safety
inspection operator and a certified completion test operator
for twelve facilities pursuant to the High Pressure Gas Safety
Act and is qualified to continuously operate boilers and otherequipment. We ensure appropriate operations in compliance withthe accreditation requirements. We also follow the principle ofconducting voluntary safety activities under our own responsibility
to run the plan-do-check-act (PDCA) cycle in safety managementwith complete consistency. While raising the awareness of safety
among all employees, we will endeavor to prevent accidents anddisasters.
We encourage the management teams for operations to engage
in their voluntary safety activities. The facilities management
section is working to build up its engineering expertise in facilities
maintenance for maintaining the stable operation of the plants.

based on comprehensive line management and collaboration with
contractors. As a result, the factory did experience one on-the-job
accident that forced one employee to take a leave of absence,and two such incidents at contractors and other associates. Thismeans that despite a massive reduction in occupational accidents
compared with a normal year we failed to fulfill the target ofcompletely eradicating on-the-job accidents that resulted inworkplace absentees.

Tokuyama conducts audits of all its factories, laboratories andoffices to inspect the status of process safety, disaster prevention
and occupational health and safety. If the audit identifies any
nonconformance, it is specified and the necessary guidance isgiven to ensure corrective action. The audit results are reported to
relevant departments so that they will implement remediation. The
Safety Measures Committee is also informed of the results so thatit can formulate an action policy for the following fiscal year on
the basis of the findings.

Tokuyama has established Occupational Health and Safety
Management Systems for individual factories, laboratories andoffices and, in fiscal 2003, put them into operation. At the
Tokuyama Factory, its system was upgraded into the Safety
Management System in fiscal 2005 to additionally support process
safety activities. This factory continues to make improvements
by performing risk assessment in terms of work, facilities andprocesses with a view toward completely removing potential risk
factors. In fiscal 2009, the Company invested 120 million yen toenhance and strengthen occupational health and safety.
Trend in the Frequency Rate of Accidents Causing Absencefrom Work *2
Source: Japan Industrial Safety & Health Association (JISHA) Ratio of Industrial Injuries
and Deaths by Industry on the JISHA website
2.5

All industries

2.0
2.5

ChemicalAll
industries
industry

1.5
2.0

ChemicalTokuyama
industry

1.0
1.5

Tokuyama

0.0
0.5

2005

2006

2007

2008

2009

(Fiscal year)*20.0
The frequency rate of accidents causing absence from work refers to the number of(Fiscalyear)million cumulative
2005
2006absence
2007
workers
forced into
through 2008
industrial 2009
accidents
per oneworking hours. This reflects the frequency at which industrial accidents occur.

Trend in the Severity Rate of Accidents*3

All industries
0.25
Source:Ministry of Health, Labour and Welfare Survey on Industrial Accidents
0.20
0.25

ChemicalAll
industries
industry

0.15
0.20

ChemicalTokuyama
industry

0.10
0.15

Tokuyama

0.00
0.05
0.00

Safety Audit (Kashima Factory)

Safety and Environment Assessment
When installing, modifying or adding any facility, the director
in charge of safety calls internal experts to perform assessments
at the planning stage, at the design stage and at the stage before
starting operations. Each assessment includes a pre-emptive checkof latent hazards that may arise, to facilitate remediation andimprovement. This ensures the safety of facilities, processes andoperations and prevents accidents and disasters.

Efforts to Maintain the Safety Performance and to
Prolong the Accident-Free Period
Our safety activities have been conducted to meet the goalsof achieving a zero-accident and zero-disaster status by creating
and nurturing a safety-oriented culture, while ensuring the safetyof people, facilities and society. In fiscal 2009, the Tokuyama
Factory continued to engage in special safety activities under the
Safety Day initiative in addition to safety management activities

The Kashima Factory and the Tsukuba Research Laboratory
have maintained their zero-accident and zero-disaster status for 24
years and 20 years respectively since their inauguration.
In fiscal 2009, we spent 260 million yen on upgrading facilities
and on increasing disaster control equipment for the purpose ofsafety and disaster prevention. We will continue to step up ourefforts to protect all workers from accidents, whether they are
employed by Tokuyama or our contractors.

Promoting the Safety Management System

0.05
0.10

Safety Audit (Tsukuba Research Lab)

Harmony with the Environment

Commitment to Occupational Health and Safety

0.5
1.0

Safety Audit

Harmony with Society

2005

2006

2007

2008

2009

(Fiscal year)

2005

2006

2007

2008

2009

(Fiscal year)*3 The accident severity rate refers to the number of lost work days per one thousand
cumulative working hours. This reflects the magnitude of industrial accidents thathave taken place.

Implementation of Safety and Health Activities inConcert with Contractors
Tokuyama conducts safety and health activities incollaboration with its contractors to safeguard all personnel
working at its plants from accidents and disasters. These
activities include, first, information sharing and awarenessbuilding through joint safety and health meetings and theirdepartmental equivalents with the participation of Tokuyama’s
employees and those of its contractors; second, safety patrols
for enhanced safety checks and management and a knowledge
buildup through purpose-specific safety education andworkshops; and third, capacity development through hazard
experience education and training. Bearing in mind the basics ofsafety, we will be focusing our energy on education and training
and on the transmission of technologies to ensure compliancewith laws, regulations and internal standards, and also to prevent
similar accidents.

Boosting safety awareness and morale
At Section 1, Manufacturing Dept. 1 of the Chemicals
Business Division, individual members aim to remove any
possible hazard from the workplace before it develops into
an actual hazard, on the assumption that the shop floor has
many different latent hazards. We give advice and comments
on incidents during work with an uncompromising attitude.
This helps enhance sensitivity to hazards and maintainsafety discipline in the workplace. We have instituted action
guidelines for morale to practice greetings, clothing checks
and repetition, and to report the processes performed to boost
safety awareness and morale.
To date, 1,040 consecutive days havepassed without accident. Everyone in theworkplace will continue these activities toextend our accident-free record.

Yoshimi Tamaki

Assistant Manager, Subsection 1,
Manufacturing Section 1,
Manufacturing Dept. 1,
Chemicals Business Div.

Maintaining a Favorable Working Environment
With the goal of ensuring a comfortable working environment
conducive to good mental and physical health, we take constantmeasures to improve working environments where specified
chemical substances and organic solvents are handled. Our
industrial doctor inspects these workplaces and we take other steps
to improve the facilities and the working methods. At present, allworksites at every factory, laboratory and office fall under Control
Category I*4. We have introduced tighter voluntary standards forthe purposes of improvement. In fiscal 2009, we offered healthguidance and mini-education in the workplace to combat lifestyle
related diseases, secondary health checkups under the workers’
accident compensation insurance scheme and health advice toboost the ratio of those undergoing a thorough examination. These
measures have improved health awareness among employees
and resulted in a lower ratio of those with abnormalities found in
the companywide health checkup. In addition, we offer online
occupational stress checkups
for all employees and provide
Process Flow of Stress Relief through thefollow-up support to those
Use of Occupational Stress Survey Sheets
requiring consideration based
Occupational Stress Survey Sheets(with 57 questions)on the results of the checkup.
To be implemented
Through health checkups andat workplacescausal analysis for mental
Analysis of replies to selected questions
concerning health risks attributable tohealth, we are steadily building
factors associated with the workplaces
a strong support system.
*4 Control Category I refers to the state inwhich the concentration of hazardous
substances in the atmosphere does
not exceed the standard control
concentration in most (at least 95%)
of workspace units. There are threecontrol categories, namely I, II and III.
Control Category I corresponds to themost desirable condition.

Findings on individual workplaces
explained by the Health Management Center
to the managerial staff
Study on measures for improving
the working environment
Activities for improving
the working environment

Tokuyama CSR Report 201038

Harmony with
the Environment

One of our most important corporate social responsibilities is toprotect the global environment. Tokuyama practices environmental
management with an emphasis on environmental perspectives in allof its business activities.

Harmony with Society

environmental accounting since fiscal 2000.

Environmental Costs

Flow of Materials in the Business Activities

OUTPUT

Production Activity

CO2

1,630

Fuel

Carbon dioxide（CO2）6,420

Waste materials(incinerated and land-fill)

2,120(50,700 thousand GJ)

19

Raw material

Environmental
impact materials

5,910

Investments relating to pollution control accounted formore than 90% of the environmental investments while
investments in resource recycling and in management activity
accounted for several percent each. Approximately 60% of
the environmental costs were allocated to pollution control
and about 10% each to global environmental conservation
and resources recycling. In fiscal 2009, environmental
investments were made chiefly to install new neutralizing
facilities and to replace systems associated with electric dust
collectors.

■ Costs of Environmental Preservation
Classification of Environmental
Preservation Costs
Pollution
Control

41,800Management Activity Costs

Segment

Fiscal 2009 Target Fiscal 2009 Result

Items(Unit: 1,000 metric tons)

To analyze the economic benefits, we calculate nothing but thereal benefits of gains on reduction in energy consumption, gains
on the sale of valuable waste, gains on waste treatment cost-cutting
and raw materials and fuel cost-cutting by reusing waste. Assumed
economic benefits are not included in the estimates. In fiscal 2009,
we reaped about 1.3 billion yen worth of economic benefits, downaround 0.3 billion yen from the preceding fiscal year.

(Reference Fiscal Year: 2007) (Reference Fiscal Year: 2007)±0%

Atmosphere

Water Quality
Environmental
Impact Reduction
PRTR

EnergyConservation

Rating*Fiscal 2010 Target(Reference Fiscal Year: 2007)−28%

Soot and Dust

(Compared tothe average emission
from fiscal 2005 to 2007)

−45%

○

(Compared tothe average emission
from fiscal 2005 to 2007)

COD

−7%

−34%

○

−7%

Nitrogen

±0%

＋25%

×

±0%

Phosphorus

±0%

−20%

○

±0%

PRTR

−24%

−30%

○

−47%

Hazardous Air Pollutants(VCM, EDC)

−8%

−35%

○

−24%

Unit Energy
22.4% lower than
21% lower thanConsumption Index the level in fiscal 1990 the level in fiscal 1990○

22% lower thanthe level in fiscal 1990

94%○

To be kept at 94%

99.9%

○

To be kept at 99.9%

Global Environment
Conservation

Recycling

Rate of Effective
Utilization of Waste To be kept at 94%

Waste Reduction

Zero Emission

Zero-Emission Rate To be kept at 99.9%*Rating: The circle refers to success in attaining of the target and the cross refers to failure to attain the target.

The environmental preservation activities conducted in fiscal 2009 attained the targets in terms of atmosphere, water quality (COD and phosphorus), PRTR,
energy conservation, recycling and zero emission.
However, nitrogen emissions soared because of a slowdown in external recycling.

39 Tokuyama CSR Report 2010

■ Economic Benefits in Fiscal 2009
Item

Social Activity Costs

4，166

Environmental analysis
equipment etc.
Green space development
and production of CSR Report
Imposition and managementof the former mining site

8

854

36

１,040

0

0

46

292

0

17

1

18

0

147

1,819

6,534

Material Benefits(thousand metric tons)(JPY 100 million)
350
300
250

272

282

2005

2006

300

314

332

200

Economic Benefits(JPY million)

150

166
497

100

−
81

Gains on Waste Treatment Cost-Cutting

191

359

50

Gains on Raw Materials
Cost-Cutting by Reusing Waste

192

346

0

Total

1,728

■ Trend in Cumulative Total Environmental Investments (since fiscal 1990)

Gains on the Sale of Valuable Waste

Gains on Reduction in Energy Consumption(JPY million)* The data in the table shown above are based on Environmental Accounting Guidelines
2005 published by the Ministry of the Environment.
* The figures reflect the amounts incurred at all factories, laboratories and offices ofTokuyama Corporation.

Economic Benefits

Results of Environmental Preservation Activities in Fiscal 2009 at the Tokuyama Factory(JPY million)

Research and Development Costs
Costs for Environmental Damage

20,600(Coolant water andother types of effluent)

5,650

Amount Invested Total Amount Spent

Upstream and Downstream Costs

Total

Process effluent

Products

Principal Actions
Installing neutralizing facilities,
replacing control systems
for electric dust collectors, etc.

Costs
in theBusiness Global Environmental
Conservation
Areas
Resource Recycling Effective use of resources

10

Industrial water

Harmony with theEnvironment

To facilitate understanding and analysis of how much is invested in and spent on environmental preservationand for thus improving the effectiveness of environmental investment, Tokuyama has been implementing

Tokuyama strives to obtain accurate data on inputs and outputs in its business activities and reduce
the environmental impacts to meet its new goals.

Waste andby-products

Tokuyama’s CSR Activities

Environmental Accounting

Performance for Fiscal 2009
INPUT

Special Feature

１，
368

2007

2008

2009
(Fiscal year)

Commitment to the Preventionof Global Warming
Prevention of global warming is a key challenge to be addressed by corporate citizens. Tokuyama makes constantachievements through the conservation of energy in business activities and supports the conservation of energy inemployee households.

Promotion of Energy Conservation
Tokuyama consumes a huge amount of energy in theprocesses of manufacturing its core products, such as caustic
soda, cement and polycrystalline silicon. Carbon dioxide, oneof the greenhouse gases, is generated chiefly by burning fossil
fuels and also by the decarboxylation of limestone used as araw material in the cement production process.
Aware of the high priority of preventing global warming,
the Company is conducting energy conservation activities
to reduce carbon dioxide emissions. The Tokuyama Factory
is responsible for more than 99% of the Company’s energy
Tokuyama CSR Report 201040

Harmony with the Environment
consumption. In fiscal 2009, it achieved a 6.0% improvementfrom the preceding fiscal year to reach the level that is 22.4%
lower than the 1990 level after encouraging the use of fuelalternatives to coal, enhanced energy conservation, and arevision to the calorific power coefficient after the amendmentof the Act on the Rational Use of Energy. This means that thetarget of achieving unit energy consumption that is 22% below
the 1990 level by 2010 was met ahead of schedule.
In fiscal 2009, the Cement Manufacturing Dept., theManufacturing Dept. 1 and 2 of the Chemicals Business Div.,Si Manufacturing Dept. and the Steam & Power Generation
Dept. worked together on a project to improve unit energy
consumption. They developed a program for energy efficiency
improvement equivalent to a 1.0% reduction in energy
consumed in the factory, or to a reduction in CO2 emissions ofnearly 40,000 metric tons per year. The program is underway,
and in fiscal 2010, the activities will continue. The Cement
Manufacturing Dept., the Si Manufacturing Dept. and theSteam & Power Generation Dept. engage in improvement
efforts from a new perspective.

Special Feature

Commitment to the Preventionof Global Warming■ Trend in the Unit Energy Consumption Index (Tokuyama Factory)*
Reduction rate (%)
0
0
–5
–10
–15
–20
–25

–16.4

–18.4
–17.5

1990

2005

–22.4 –22 (Target)

–18.6
2006

2007

2008

2009

2010
(Fiscal year)■ Trend in Energy Consumption*(thousand GJ per year)
60,0003,500Tokuyama Corporation
Group companies
3,800
3,800
3,900
2,800
2,700
2,700

50,00040,00030,00020,00053,70053,90055,50052,50050,700

2005

2006

2007

2008

2009
(Fiscal year)

37,60010,00001990■ Trend in CO2 Emissions*

A meeting for reporting the efforts under the initiative for improving unit energy
consumption

Generated from fuels
Generated from raw materials(thousand metric tons per year)
Generated from waste
Group companies
9,000
280
280
250
210
260
8,000
220
210
200
250
250
230
230
7,000
2,100
20 2,110
6,000
2,130
2,000
1,620
5,000
1,930
4,000
3,000
5,000
4,840
4,820
4,730
4,570
2,000
3,290
1,000
0
1990
2005
2006
2007
2008
2009
(Fiscal year)

Tokuyama’s CSR Activities

Harmony with theEnvironment

Harmony with Society

Program to Encourage Anti-Global Warming Actions
Tokuyama set up a program that encourages employeesof the Tokuyama Group to take anti-global warming actionsin April 2008, as part of its environmental, energy savingand social contribution activities from the standpoint of CSR
promotion. This program covers part of the costs incurred by
employees purchasing and installing specific environmentallyfriendly products closely related to the Tokuyama Group’sbusiness, namely the plastic window sash for residential use
and the solar power generation system. Its objective is tohelp reduce CO2 emissions in the household sector by raisingawareness against global warming and by encouraging theGroup employees to save energy.
In its inaugural year in fiscal 2008, the program was used
to a certain extent for both solar power generation systems andplastic window sashes. In fiscal 2009, we saw a steady rise in
those benefiting from the program for solar power generation
systems after the resumption of public subsidization, while thenumber of those taking advantage of the program for plastic
window sashes remained at low level.
After two years of the program, it is clear that in a large
majority of cases the program is enjoyed for purchasing either
plastic window sashes or a solar power generation systemat the time of building a new house. In the future, it will
be necessary to propose a broader introduction to existinghouses at the time of remodeling, in an attempt to increase
the number of those using the program. The table on the rightshows the use of the program in the past two years.
Data like these is made available on the Tokuyama Group’s
intranet. In addition, we continue efforts to raise awarenessof actions on global warming, including the provision of
information about websites relating to global warming.

■ An Intranet Screen■ Number of the Use of the Program
Plastic window sashes

Solar power generation systems

Number of casesof subsidization(units)Number of casesof subsidization

Fiscal 2008

12

177

6

24.01

Fiscal 2009

7

141

8

33.35

Total

19

318

14

57.36

（kW）

* The calorific power and other figures have been recalculated retrospectively to 1990
following an amendment of the Act on the Rational Use of Energy.

Contribution to Action against Global Warming in the Consumer and Transportation Sectors
In supplying the Shanon plastic window sash, silica forenergy-saving tires and other products, the Tokuyama Grouphas been helping to reduce the emissions of CO2 in the
consumer and transportation sectors, in which CO2 emissions
have significantly increased. The Shanon is a powerful toolfor energy conservation in residential houses. We focus ourefforts on technical developments that contribute to trend
toward anti-global warming, including the construction of averification plant for polycrystalline silicon for solar cells, thedevelopment of electrolyte membrane for fuel cells, etc.

■ Cool Biz Benefit (At the Tokyo head office from June to September)(thousand kWh)450

Power consumption

400

419

350

358
336

300

336

340

328

We have equipped our boilers, cement kilns and othersources of air pollutants with emission control systems suchas flue gas desulfurizers, denitration equipment, low NOx
burners and high-performance dust collectors in an attempt
to reduce sulfur oxides (SOx), nitrogen oxides (NOx) andsoot emissions.
In fiscal 2009, we successfully lowered NOx and sootemissions, although SOx emissions rose slightly.

■ Trend in SOx, NOx and Soot Emissions
SOx emissions
NOx emissions

Soot emissions(metric tons)
14,00012,00010,0008,000

10,000
275

6,000
4,000

250

0

2004

2005

2006

2007

2008

(metric tons)
400

12,3002,890

11,10011,400
259
2,310

2,000

200

41 Tokuyama CSR Report 2010

Actively seeking to protect the environment, Tokuyama has a long track record of initiatives to reduce
environmental pollutants discharged into the atmosphere and into water environments.

Air Pollutants Emissions

Efforts at Our Offices
Tokuyama takes part in the Cool Biz campaign thatbegan as a national movement in the summer of 2005. In
addition to our conventional energy conservation efforts at
our offices, we have encouraged our employees to work inlight clothing and introduced thorough temperature controlof the air conditioners. As a consequence, Tokyo head officesucceeded in lowering its power consumption during thefour-month period from June to September 2009 comparedwith the level a year earlier.

Reduction of Air and Water Pollutants

1990

2005

267

10,100

350

8,800
8,800

223

250
200

161
137
1,940

1,930

2006

2007

300

1,190
2008

1,300
1,300

150
100

0
2009
(Fiscal year)

2009(Fiscal year)

Tokuyama CSR Report 201042

1

■ Trend in PRTR Substance Emissions(metric tons)
237
250

Tokuyama Corporation

Group companies

As a result of its exhaustive efforts to reduce waste and recycle, in fiscal 2009 Tokuyama put 94% of its waste toeffective use and diverted 99.9% of its waste from being dumped in landfills.

200
150
82

70

65

60

50
0

100

100

100

*1 The pollutant release and transfer register (PRTR) refers to a system of collecting andpublishing data on the sources of hazardous substances, the amounts of such substances
emitted into the environment or carried away from business establishments in the form
in which they are contained in waste.

70

50

29
1998

2005

2006

2008

2007

Waste Management

29

2009
(Fiscal year)

In fiscal 2009, Tokuyama generated 300 thousand metrictons of waste. It actively recycled them internally andexternally, mainly reusing them as raw materials and fuelfor cement production at the Tokuyama Factory. Packing
materials, pallets and other wood waste were crushed into
fuel so that they can be effectively used at power plants. As
we worked diligently to recycle waste into raw materials for
cement, we maintained the rate of effective use of waste at
94%. We stepped up our activities for reusing and reducing
waste to achieve a high landfill zero-emission rate of 99.9%.

Anti-Dioxin Measures
Waste incinerators, waste oil incinerators and part ofthe vinyl chloride monomer manufacturing facilities are
subject to regulations under the Special Measures Law forCountermeasures against Dioxins. The measured dioxin
concentrations in flue gas and wastewater remain far below
the control levels.

■ Process Flow of Industrial Waste Treatment
Waste generated

300■ Breakdown Graph of Industrial Waste Treatment in Fiscal 2009

■ Trend in Hazardous Air Pollutants Emissions(metric tons)
120

20.8
(6.9%)

Chloroethylene (vinyl chloride)
1,2-dichloroethane

21

Chloroform

80

Dichloromethane (methylene chloride)

0.4(0.1%)

7

20

25
12
9

28

0

3

1

12

3

2

12

3

2007

2006

2005

31
11

30
13

4

4

22
8
9

3

2009
(Fiscal year)2008

43 Tokuyama CSR Report 2010

Industrial effluent

180(metric tons)
200
153

166

30

20

10

0

21.4

23.0

109
22.9

20.6

14.3

100

50

1990

2005

2006

2007

0
2009
(Fiscal year)

2008■ Nitrogen and Phosphorus Emissions(metric tons)

Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009
Nitrogen95

Phosphorus emissions
4.0

260(86.6%)

ilization Rate 9

110

112

108

140

3.9

4.5

2.9

3.6

0

Waste generated

22.2

Incineration (externally)

1.0
Landfill (externally)

0.4
External Recycling
20.8

Landfill Volume (metric tons)(metric tons)
40,00036,26035,000%
3.5.9%(Unit: thousand metric tons)n Rate 99

Recycling Volume

Effective Utilization Rate (%) =[Zero-Emission Rate (%) = 1 −
150

120
24.9

Landfill (internally)■ Trend in Waste Landfill Volume, Effective Utilization Rate and Others

Internal Recycling(into materials and fuel for reuse)

COD emissions

COD emissions*2 Chemical oxygen demand (COD) is an indicator of the water pollution level and refers to
the amount of oxygen consumed by oxidizing organic substances in water.

157

2

Zer
o-Em
issio

■ Trend in Industrial Effluent and COD Emissions(million metric tons)
40

Internal Recycling
260*The figures represent relevant values for fiscal 2009. (Unit: thousand metric tons)

Total waste
generation
300

Eff
ect
ive
Ut

Industrial Effluent and Water Pollutants Emissions
Industrial effluent

17.9(internal and external)

Total Waste Generated
Landfill Volume(internal and external)

Total Waste Generated

]

x 100

x 100

30,00025,00099.8

93.9

Effective Utilization Rate

Zero-Emission Rate
99.9

99.9

99.9

94.3

94.1

94.1

82.4

95
93.5

90

80
75

76.9

10,000

70

5,000
0

(%)
100

85

20,00015,000

99.9

1990

680

520

520

480

2005

2006

2007

2008

65
440
60
2009
(Fiscal year)

Effective Utilization Rate / Zero-Emission Rate

1995

1

21
8
9

Incineration (internally)

Landfill

47

60
40

To meet the statutory limits as well as the limits agreed
with local governments, the Tokuyama Factory has set tighter
self-control limits to carry out stringent control with themonitoring of pollutants and purification with wastewater
treatment equipment. In fiscal 2009, the actual emission levels
did not exceed the self-control limits, let alone the statutory
limits. Chemical oxygen demand (COD)*2 as well as nitrogenand phosphorus emission levels are subject to regulation
with respect to total emissions for water quality. To ensurecompliance with these three indicators, emission reduction
efforts are conducted using activated sludge treatment facilities
and other equipment.
In fiscal 2009, we recorded a decline in COD emissions
due to a slowdown of operation of production facilities andan increase in nitrogen emissions as a result of a slowdown
in external recycling.

18.9(6.4%)

Landfill Volume

100

Incineration

External Recycling

103

Outside the Company

Hazardous Air Pollutants Emissions
Tokuyama sets out a voluntary reduction plan for four
substances that it produces, including chloroethylene,
among the 12 substances subject to voluntary control inaccordance with the Air Pollution Control Law in order totake continuous action.
In fiscal 2009, facility enhancement and other actions led
to a 29% reduction from the year-ago level.

Harmony with theEnvironment

Harmony with Society

Waste Reduction and Recycling

PRTR* Substances Emissions
Twenty-seven substances among those handled by
Tokuyama in fiscal 2009 are subject to notification under the
Pollutant Release and Transfer Register (PRTR) legislation. In
fiscal 2009, efforts to reduce emissions were undertaken at
different places to achieve substantial reductions, specifically
a 29% cut from the preceding year, to total emissions of 50
metric tons.

Tokuyama’s CSR Activities

Inside the Company

Harmony with the Environment

Special Feature

Reduction of
Air and Water Pollutants

Management and Treatment of PCB Waste
The Tokuyama Group has 82 transformers and capacitors
containing polychlorinated biphenyl (PCB)*1. All of them havealready fallen into disuse. In compliance with the Special
Measures Law for the Proper Treatment of PolychlorinatedBiphenyl Waste, they are retained and managed in an appropriatemanner. Legislation requires all PCB waste to have been treatedby July 2016. In accordance with the plan of the national
government, wide-area PCB treatment facilities are increasingly
constructed and coming into operation in succession. Taking
advantage of the early registration program, the Tokuyama Groupfinished its registration to Japan Environmental Safety Corporation(JESCO) in December 2005 and commenced the treatment infiscal 2009. In the future, we will be properly treating our PCB
waste in line with the timetables of the wide-area treatment
project in separate districts.
*1 Polychlorinated biphenyl (PCB) is an organic chlorinated compound that emits dioxins when burnt
in low temperature. Chemically stable and excelling in thermal resistance, chemical resistance,
insulation and other electric characteristics, it was formerly used in many different electric products
including transformers and capacitors. However, it has been banned from production or utilization
since 1972 because of its hazardousness to humans. Transformers, capacitors and other PCBcontained products that have already been distributed have to be retained at business establishments.

Tokuyama CSR Report 201044

Special Feature

Tokuyama’s CSR Activities

Harmony with theEnvironment

Harmony with Society

Harmony with the Environment

Development of Environmentally Friendly
Products and Environmental Technologies
The Tokuyama Group maintained its efforts to develop environmentally friendly products and recycling
technologies in fiscal 2009.

Development of an Electrolyte Membrane for Alkaline Membrane Fuel Cells•For Next-Generation, Environmentally Friendly Fuel Cells, a Test-manufacture Line To Be Built at the Tokuyama Factory

Tokuyama became the world’s first company tosuccessfully develop an anion electrolyte membrane foralkaline membrane fuel cells and an ionomer that serves as
an electrode catalyst. For the alkaline membrane fuel cells(AMFCs), iron, nickel and other general-purpose metals canbe used as an electrode catalyst in place of the costly rare
metal platinum, and ethanol and glycerol produced frombiomass is able to be used as fuel. AMFCs are thus seen as
environmentally friendly fuel cells for automotive and otherapplications and development is underway around the world.
In fiscal 2009, AMFCs were adopted to emergency power
supply units and portable power supply units with an output ofseveral hundred watts, and verification tests are being carriedout. Next spring, construction of a test-manufacture line forelectrolyte membranes will reach completion at the Tokuyama
Factory. The line will have an annual production capacity ofaround 10,000 m2. A system for supply to users will also beconstructed. As a pioneer of anion electrolyte membranes,
Tokuyama will seek further improvements in partnership withusers, contributing to the early commercialization of fuel cells.

•Clean Technologies that Help Prevent Environmental Pollution

ASTOM Corporation, a Tokuyama Group company, helps
resolve environmental problems with its separation technology
based on the NEOSEPTA ion exchange membranes and the
ACILYZER high-performance electrodialyzer incorporating
NEOSEPTA. Ion exchange membranes facilitate the selective
permeation of positive and negative ions dissociated insolution. Traditionally, ion exchange membranes havebeen used in salt production, food, fresh water generation,
pharmaceuticals and the treatment of waste liquids. Today,
they have application in the separation and collection of acidand alkali in waste liquids, the treatment of leachate at waste
disposal facilities and the removal of nitrate nitrogen fromgroundwater as part of initiatives to prevent environmental
pollution. Ion exchange membranes are therefore attracting theattention of the international community as a clean technologythat serves to prevent environmental pollution.
In fiscal 2009, our separation technology was adopted as
an approach to process improvement and reduction in waste
liquid treatment load at food and chemicals plants. Given
that this technology is being increasingly recognized as anenvironmentally friendly technology outside Japan as well,research efforts are being made for practical application of
the technologies for converting groundwater into drinking
water. In the future, it will be speeding up the actions to
expand technology across the globe.

The ACILYZER high-performance electrodialyzer based on ion exchange membranes

The ACILYZER EDR polarity reversal electrodialyzer

The "Triple Shanon" Plastic Window Sash
A fuel cell stack with the anion electrolyte
membrane•Material Recycling for Used Developers

45 Tokuyama CSR Report 2010

ASTOM Corporation

The anion electrolyte membrane
and the ionomer solution
developed by Tokuyama

A Closed System for Developers
Tokuyama and Sharp Corporation have been engaging incommercial operation of a closed system for the collection,
recycling and reuse of developing solutions between Sharp’s
Mie Plant in Taki-gun, Mie Prefecture and Tokuyama’s dedicatedplant for five years, since April 2005. Based on the material
recycling technology for used developers in liquid crystal panel
plants, the commercial operation has been very effective.
In pursuit of greater harmony with the environment,
Tokuyama now makes sustained efforts to improve its
technologies and reduce its costs so that not only liquid
crystal panel manufacturers but many users of developing
solutions will employ the technology without hesitation.
In parallel with that, we are actively working to develop
product-manufacturing and -disposal technologies withlow environmental footprints throughout a supply chain
encompassing production, customer use and the disposalof developing solutions, with an aspiration to expand thisbusiness not only in Japan but into the world.

Ion Exchange Membranes■ The Closed System for Developers at Sharp Corporation’s Mie Plant

Undiluted Developers

Dilution andPreparation
Equipment

Photolithography
Process
Used
Developers(Dedicated Plant)

Used Developers

Recycling
Equipment

Sharp Corporation’s Mie Plant

Excel Shanon Corporation•High-Performance Plastic Window Sashes Conserve Energy and Reduce Household CO

2

Excel Shanon Corporation, one of Tokuyama’s groupcompanies, manufactures and sells the Shanon Window
plastic window sashes with distinguished levels of airtight,
thermal insulation, sound proof, and moisture condensation
proof characteristics. To tackle global warming, reductions ingreenhouse gas emissions, especially of CO2 emissions, are being
considered and implemented in different sectors at different
levels. While some progress has been made in emission cuts in
the industrial sector, there is a large gap between the target andthe reduction actually attained in the household sector. Moreeffective measures are hence needed. The housing industry is
pursuing a number of initiatives. For instance, plastic window
sashes draw attention for their superior performance in reducing
energy consumption, as they add a high level of air-tightness andthermal insulation when used in residential houses.
In April 2008, Excel Shanon released the Triple Shanon, whichboasts the lowest K value of 1.23 W/m2k in the Japanese window
sash market. The K value*1 is a heat transmission coefficient. A
lower figure means higher heat insulation performance. With the*1 The K value is the heat transmission coefficient and represents the heat insulation
performance of the wall, floor or other parts of the building.
*2 The expression, “15% lower,” is based on the new reference unit cost for electric power set by
the Home Electric Appliances Fair Trade Conference under the SMASH simulation program.

Triple Shanon, electricity costs are about 15% lower*2 than they
are with ordinary aluminum-plastic composite window sashes.
This product helps achieve further reductions in CO2 emissions.

■ A Cross-sectional View of the Window Sash

Triple Glazing
Indoor Side

Outdoor SideK ValueHeat Insulation
Performance

1.23
W/m2k

SpacerTPS

Triple glazing including
two Low-E glasses
The Shanon plastic
window sash(with argon gas)

K value = 1.23 W/m2k
Tokuyama CSR Report 201046

Site Report
Tokuyama Factory■ Kashima
Factory

Location: 1-1, Mikage-cho, Shunan-shi,
Yamaguchi Prefecture
Employees: 1,694
Factory Area: 1,910,000 square meters (total area)

Main Products Cement, inorganic and organic chemical products, polycrystalline silicon,

fumed silica, vinyl chloride and others

Tetsushi Yamada* For further details about the Factory, see page 11-12

General Managerof the Tokuyama Factory

Location: 26, Sunayama, Kamisu-shi, Ibaraki Prefecture
Employees: 77
Factory Area: 101,000 square meters
Main
Tokuyama Corporation’s Kashima Factory
Products Pharmaceutical bulks (X-ray contrast agents, stomach

and duodenal ulcer treatment drugs); opticalmaterials (plastic lens monomer, light modulating
materials, hard coating solutions); materials forelectronic materials and metal washing solutions

Performance Data
Fiscal 2005

Fiscal 2006

Fiscal 2007

Fiscal 2008

Fiscal 2009

SOx Emissions

metric tons

2,310

1,940

1,930

1,190

1,300

NOx Emissions

metric tons

11,40012,300

11,10010,1008,800

Soot Emissions

metric tons

259

267

223

161

137

Industrial Water Consumption

mil. metric tons

49.5

45.8

41.1

40.6

41.8

Effluent

mil. metric tons

21.3

22.8

24.8

22.8

20.5

COD Emissions

metric tons

152

148

161

116

107

Total Nitrogen Emissions

metric tons

95

110

112

108

140

Total Phosphorus Emissions

metric tons

4.0

3.9

4.5

2.9

3.6

Waste Generated

metric tons

57

63

67

66

48

thousand metric tons

349

360

363

344

300

Waste Final Disposal Volume

metric tons

660

480

480

460

420

Energy Consumption*

thousand GJ

53,60053,90055,40052,40050,600thousand metric tons

4,820

4,840

5,000

4,730

4,570

5

3

6

0

1

CO2 Emissions (generated from fossil fuel)*
Complaints

complaints

Dental materials (restorative materials, adhesives,
denture relining materials, impression materials,
plaster materials and investing materials)●At the Kashima Factory, material recycling of solvent,from which relatively high-purity recovery was possible,
began in fiscal 2005. Today, the Kashima Factory
performs material recycling for six types of waste solvent.
In fiscal 2007, material recycling to recover iodine fromwaste fluid containing iodine compound commenced.
This was followed in the next fiscal year by material
recycling of waste silica gel.
In fiscal 2009, the rate of effective use of waste stood at its
highest level ever, specifically at 82%, reflecting a massive

Unit: metric tons
(mg-TEQ for dioxins only)■ PRTR Substances Emissions and Displacement by Substance in Fiscal 2009
Emissions

Government Ordinance
NumberTo Air

To Water

To Soil

Subtotal

Displacement

Cresol

67

0.0

14.9

0.0

14.9

0.0

1,2-Dichloroethane

116

8.6

0.0

0.0

8.6

0.6

Chloroethylene (Vinyl Chloride)

77

7.9

0.0

0.0

7.9

0.0

Chloromethane (Methyl Chloride)

96

6.9

0.0

0.0

6.9

0.0

Water-soluble zinc compounds

1

0.0

3.0

0.0

3.0

0.0
16.7

Toluene

227

2.9

0.0

0.0

2.9

Dichloromethane (Methylene Chloride)

145

1.1

0.0

0.0

1.1

0.0

Chloroform

95

1.1

0.0

0.0

1.1

0.0

1,2-Epoxypropane (Propylene Oxide)

56

0.5

0.0

0.0

0.5

3.0

1,2-Dichloropropane

135

0.5

0.0

0.0

0.5

238.2

2-Aminoethanol

16

0.0

0.2

0.0

0.2

2.2

Carbon Tetrachloride

112

0.1

0.0

0.0

0.1

0.1

2,2’-Azobisisobutyronitrile

13

0.0

0.0

0.0

0.0

0.0

Ethylene Glycol

43

0.0

0.0

0.0

0.0

0.0

Water-soluble copper salt

207

0.0

0.0

0.0

0.0

0.4

Hydrazine

253

0.0

0.0

0.0

0.0

0.0

Hydrogen Fluoride and its water-soluble salts

283

0.0

0.0

0.0

0.0

0.0

Benzene

299

0.0

0.0

0.0

0.0

0.0

Boron and its compounds

304

0.0

0.0

0.0

0.0

0.0

Dioxins

179

29.1

2.4

0.0

31.6

0.0

29.6

18.0

0.0

47.6

261.2

Total (excluding dioxins)

The substances are listed in descending order of emissions and, for substances that were not emitted at all, in order of government ordinance number.
Emissions to Water refers solely to the emissions released into public waters.
Displacement refers to the combination of the quantity displaced to sewerage and the quantity subject to intermediate treatment.
Total shows the value rounded to one decimal place after adding the values to three decimal places.

47 Tokuyama CSR Report 2010

rise from the previous year’s level at 73%. This achievement
is due chiefly to material recycling of waste chloroform.
●The Kashima Factory is also striving to cut its final landfill
disposal volume. The material recycling of waste silica
gel brought the fiscal 2009 figure to the lowest level ever,at 11 metric tons.
●Tokuyama Dental Corporation has changed the materials forsome products from dichloromethane to water-based materials.
It is endeavoring to expand this material shift to other products
to reduce dichloromethane emissions into the atmosphere.

■ Performance Data
Fiscal 2005

Fiscal 2006

Fiscal 2007

Fiscal 2008

Fiscal 2009

Industrial Water Consumption

thousand metric tons

Unit

112

110

107

78

44

Effluent

thousand metric tons

126

125

129

95

58

metric tons

5

5

5

4

2

* The calorific power and other figures have been recalculated retrospectively to 1990, following the amendment of the Act on the Rational Use of Energy.

Substance

General Managerof the Kashima Factory

Tokuyama Dental Corporation’s Kashima Plant
Unit

PRTR Substances Emissions

Shingo Matsuoka

COD Emissions
PRTR Substances Emissions

metric tons

2

3

4

5

4

Waste Generated

metric tons

749

779

965

770

560

Waste Final Disposal Volume

metric tons

15

34

32

27

11

Energy Consumption

thousand GJ

51

53

58

55

53

CO2 Emissions (generated from fossil fuel)metric tons

2,130

2,170

2,320

2,230

2,110

Complaints

complaints

0

0

0

0

0

■ PRTR Substances Emissions and Displacement by Substance in Fiscal 2009
Substance

Chloroform

Number95

Unit: metric tons
Emissions

Government Ordinance
To Air

1.7

To Water

0.0

To Soil

0.0

Subtotal

1.7

Displacement

39.7

Dichloromethane (Methylene Chloride)

145

1.3

0.0

0.0

1.3

3.5

Toluene

227

0.6

0.0

0.0

0.6

34.7

Acetonitrile

12

0.0

0.0

0.0

0.0

1.8

Ethylene Glycol

43

0.0

0.0

0.0

0.0

3.2

1,4-Dioxane

113

0.0

0.0

0.0

0.0

0.1

N,N-Dimethylformamide

172

0.0

0.0

0.0

0.0

8.7

2-Vinylpyridine

256

0.0

0.0

0.0

0.0

0.1

2,3-Epoxypropyl Methacrylate

316

0.0

0.0

0.0

0.0

0.0

Methyl Methacrylate

320

0.0

0.0

0.0

0.0

0.0

Alpha-Methylstylene

335

0.0

0.0

0.0

0.0

0.0

3.6

0.0

0.0

3.6

91.8

Total

The substances are listed in descending order of emissions and, for substances that were not emitted at all, in order of government ordinance number.
Emissions to Water refers solely to the emissions released into public waters.
Displacement refers to the combination of the quantity displaced to sewerage and the quantity subject to intermediate treatment.
Total shows the value rounded to one decimal place after adding the values to three decimal places.

Tokuyama CSR Report 201048

Site Report

Activities of Group Companies

Sun • Tox Co., Ltd. Kanto Plant

Sun • Tox Co., Ltd. Tokuyama Plant
Sun Arrow Chemical Co., Ltd. Tokuyama Plant
Tokuyama Polypropylene Co., Ltd.

■ ISO 9001 and ISO 14001 Certification Status of ElevenGroup Companies

Tokuyama understands that Responsible Care activities
should be conducted on a group-wide basis. The Company
has signed RC management agreements with TokuyamaGroup companies both inside and outside Japan engaging in
production activities to support their activities.
We collect data on the environmental impact of groupcompanies and their safety management indicators andconduct safety, environmental and quality audits at the rate ofseveral group companies per year. By means of these actions,
we monitor and enforce RC activities conducted at individual
group companies. The trend of statutory regulations and otherinformation are shared with our group companies.
We also provide our group companies with assistance inacquiring ISO 14001 and ISO 9001 certification.

Group Company

ISO9001

ISO14001●●

Sun•Tox Co., Ltd.
Excel Shanon Corporation●—

Tohoku Shanon Co., Ltd.

●●A&T Corporation●●

Figaro Engineering Inc.

●●

Tokuyama Dental Corporation—＊●

Tokuyama Siltech Co., Ltd.

●●Sun Arrow Chemical Co., Ltd.

—●●ASTOM Corporation●

Shin Dai-ichi Vinyl Corporation—●

Tokuyama Polypropylene Co., Ltd.

●●■ Sun Arrow ChemicalCo., Ltd.

Date of Foundation: February 1, 1999
Ownership: Tokuyama Corporation (100%)
Head Office: Kitahama Chuo Bldg., 2-2-22, Kitahama, Chuo-ku, Osaka
Business: Manufacture and sale of polyvinyl chloride compounds● Tokuyama Location: 1-2, Harumi-cho, Shunan-shi, Yamaguchi Prefecture
Employees: 24
Area: 3,280 square meters
Plant●＝Certified ●＝Included in the certified sites ＊＝Certified with ISO13485■ Sun•Tox Co., Ltd.
● Kanto
Plant

Date of Foundation: February 14, 1992
Ownership: Tokuyama Corporation (100%)
Head Office: Annex to Tokuyama Bldg., 1-4-5, Nishi Shimbashi, Minato-ku, Tokyo
Business: Manufacture and sale of biaxial-oriented polypropylene films and castpolypropylene films

Location: 3075-18, Shimasu, Itako-shi, Ibaraki Prefecture
Employees: 191

Area: 55,800 square meters● Tokuyama Location: 7-7, Harumi-cho, Shunan-shi, Yamaguchi Prefecture
Employees: 148
Area: 24,100 square meters
Plant

Shigefumi Kunihiro
Plant Manager■ Performance Data
Unit

Toshiyuki Yamaoka

Koji Tanaka

Plant Manager

Plant Manager

Located in the Itako Industrial Park in Ibaraki Prefecture, theKanto Plant produces 25,000 metric tons of biaxial-oriented
and cast polypropylene films per year. As a Type I Energy
Management Designated Facility, it has been taking steps toensure effective energy operation by introducing co-generation
systems and energy-efficient facilities, among other initiatives.
Placing top priority on safety, we are capitalizing on our
three management systems for occupational safety and health(OSHMS), for the environment (ISO 14001) and for quality (ISO9001), to make steady improvements throughout the plant.
For fiscal 2010, a new production line for castpolypropylene films will enter full-scale operation. We will
also be reconstructing the existing line as a model line interms of quality, energy conservation and safety.

■ Performance Data
Unit

Power Consumption
Fuel Oil Consumption

thousandkWhFiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009

28,48029,73029,21230,60031,697

Kl

910

600

639

745

632

SOx Emissions

metric tons

0.7

0.6

0.4

0.4

0.3

NOx Emissions

metric tons

0.9

0.5

0.7

0.7

0.5

Soot Emissions

metric tons

0.04

0.03

0.04

0.08

0.05

Industrial Water Consumption metric tons

63

59

66

77

60

Waste Generated

metric tons

22

52

60

34

43

Waste Final Disposal Volume metric tons

0

9

29

5

16

0.02

0.01

0.01

0.03

0.02

COD Emissions

metric tons

Located on the premises of Tokuyama Corporation’s
Tokuyama Factory, the Tokuyama Plant produces 21,000
metric tons of biaxial-oriented polypropylene films per year.
In environmental aspects, we work together with Tokuyama
Corporation’s Tokuyama Factory to address environmental
conservation and to carry out ISO 14001 activities. As a Type I
Energy Management Designated Facility, our plant is continuingwith its efforts to slash manufacturing losses and thereby lower
unit energy consumption. An activity is underway to recycle all
manufacturing losses generated.
It obtained certification for the Occupational Safety and HealthManagement System (OSHMS) in February 2008. In fiscal 2009,no accidents or disasters occurred at our plant. Going forward, it
will be developing safety and health activities centering on risk
assessment, and developing them into a management systemthrough a PDCA cycle. Under the slogan of “Take pleasure in
production, be stringent with quality and adhere to safety,” theTokuyama Plant aims to implement plant management in a manner

thousand
kWh

3,210

3,540

3,470

2,810

2,662

Waste Plastics Generated

metric tons

172

186

158

157

119

Effectively Used Waste
Plastics Volume

metric tons

172

186

158

157

119

Waste Final Disposal Volume metric tons

0.1

0

0

0.6

3.8

Steam Consumption

metric tons

240

240

240

240

240

thousandIndustrial Water Consumption metric
tons

65

65

65

65

65

■ Tokuyama Polypropylene
Co., Ltd.
● Tokuyama Location: 1-1, Harumi-cho, Shunan-shi, Yamaguchi Prefecture
Employees: 66
Area: 70,997 square meters
Plant

Hiroshi Horii
Plant Manager

that earns the trust of society, the customers and employees.

■ Performance Data
Unit
Unit energy consumption
index with fiscal 1990 as
the base year

Power Consumption

Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009

■ Performance Data
Unit%
thousandkWh

89
35,77087
34,23088
34,83087
31,08092
31,2500.3 MPa Steam Consumption metric tons

2,930

4,220

3,410

2,770

2,170

2.1 MPa Steam Consumption metric tons

44,83042,27043,83039,16039,690metric tons

160

180

200

120

90

Waste Final Disposal Volume metric tons

0

1

11

20

6

Waste Generated

49 Tokuyama CSR Report 2010

Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009

Power Consumption

thousandIndustrial Water Consumption metrictons

Fiscal 2005 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009

443

387

417

322

354

metric tons

85

161

141

158

134

Waste Final Disposal Volume metric tons

0

25*

4

16*

6.5

Unit Energy Consumption
Index (Fiscal 2002 = 100)

79

79

85

98

97

Waste Generated%*Year with periodic maintenanceRC activities of the Tokuyama Plant
Located on the premises of the Higashi Plant in Tokuyama
Corporation’s Tokuyama Factory, our Tokuyama Plant
manufactures polyvinyl chloride compounds for plastic window
sashes, which after the governmental housing eco-point program
are increasingly recognized as having energy conservation
effects. While it is common practice to add lead-based stabilizer
to polyvinyl chloride compounds, we continued our efforts todevelop a lead-free formula in fiscal 2009, as we did in thepreceding fiscal year, in response to the requests of users.
To protect the environment, we closely studied making
effective use of combustible waste in accordance with
Tokuyama Corporation’s Tokuyama Factory Environment
Management Program. As a result of our efforts, we nearly
established the formula to recycle the waste into fuel for cement
production. With respect to safety, health, security and disasterprevention, we carried out full-participation Five-S activities,
Hiyari Hatto (accident prevention) activities and Kiken Yochi(hazard prediction) training. As a result of these activities, wehave successfully maintained our zero-accident and zerodisaster record since the company’s start-up. As a member of theTokuyama Group, we will continue to operate the plant with acommitment to environmental conservation, safety and security.
Date of Foundation: April 2, 2001
Ownership: Tokuyama Corporation (50%) and Prime Polymer Co., Ltd. (50%)
Head Office: 1-1, Harumi-cho, Shunan-shi, Yamaguchi Prefecture
Business: Manufacture and sale of polypropylene resin and polypropylene compound resin

Our Tokuyama Plant is located on the premises of theHigashi Plant, which constitutes part of the Tokuyama Factoryof Tokuyama Corporation. The plant manufactures and sells
200,000 metric tons of polypropylene resins and 7,000 metrictons of soft polyolefin resins each year. This plant runs threesystems for safety management, environmental management,
and quality management and undertakes Responsible Care
activities in tandem with the Tokuyama Factory. With respect tosafety management, we perform risk assessments of processes,
facilities, and work. We are also introducing the Companywide Hiyari Hatto Kigakari (HHK) activities to eradicate
accidents and other concerns. As a result of these efforts, we
succeeded in maintaining the zero-accident and zero-disasterstatus that we have enjoyed for 35 years, since the days when
we operated as the Polypropylene Manufacturing Department.
We are working to renew the five-year accreditation obtainedin 2005 for the accredited safety inspection executed underthe High Pressure Gas Safety Act, as we need to renew it in2010. Periodic maintenance of facilities is made every otheryear, and will be carried out in fiscal 2010. We will be stepping
up Responsible Care activities in a bid to maintain our zeroaccident and zero-disaster record, to reduce our environmental
footprint, and to eliminate all customer quality complaints.
Tokuyama CSR Report 201050

Third-Party Comments
History of Tokuyama’s RC Activities

A Review on Tokuyama’s CSR Report
Eriko Nashioka
Certified Public Accountant and Director of the Institute for Environmental Management Accounting
A part-time lecturer in environmental accounting and environmental
auditing for the Faculty of Commerce of Doshisha University. In 1991,
she joined the Environmental Auditing Section, the Third Department at
the Osaka Office of Ota Showa & Co., currently Ernst & Young ShinNihon
LLC, where she worked as a consultant concerning accounting audits (theCommercial Code, the Securities Exchange Law and the Small and Mediumsized Enterprise Investment Business Corporation Act), environmental
accounting and environmental reports. She completed her studies inenvironmental management at the Doshisha University Graduate School of
Policy and Management in 1997. From April 2001 to March 2004, she waschief researcher in the Enterprises and the Environment project run by the
Kansai Research Center of the Institute for Global Environmental Strategies.
In April 2004, she joined the management of the Institute for Environmental
Management Accounting. She was involved in a number of committees,
including the technical subcommittee on sustainability information
disclosure in the Management Research Committee of the Japanese Instituteof Certified Public Accountants and other committees under the Ministry of
the Environment and the Ministry of Economy, Trade and Industry. She is amember of the primary screening committee for the Environmental ReportAward co-organized by Toyo Keizai Inc.

A readable review of Tokuyama’s past year
Fiscal 2009 Highlights displays the events during theyear in a chronological order. It is a good attempt based on
the fundamental concept that the CSR report is an annual
publication. The highlights are followed by three special
features. This structure makes clear the point on which theCompany puts the greatest emphasis and adds power tothe report. It focuses on advances in the highly efficient
production structure, globalization and the Company’s rolein cultural conservation. The report will better inform readersof the Company’s activities if these features are more closely
linked with the highlights showcasing the year’s events. It
would be advisable, for example, to give reasons why the
special features have been selected as such, or to specify thecurrent place in the Centennial Vision. I appreciate the efforts
to give plain presentations of Tokuyama’s businesses andproducts from readers’ standpoints by adding illustrations andexplanations of technical terms as needed.

Steady improvements
toward the Centennial Vision
The Centennial Vision toward 2018 defines CSR as afoundation that supports the Company’s strategy. The tenyear plan announced in 2008 was commenced recently,
yet the Company has made steady progress. The structurethat supports the plan needs to develop in parallel with theprogress in strategy implementation. It will be necessary to
institute an annual action plan specifying tangible actions
under the Tokuyama Group Code of Business Activities andto proceed to steady action.

Currently, numerical data excluding those on theenvironment look somewhat insufficient. It is hoped that theCompany will specify a goal on the process and management
for attaining the Centennial Vision, explicitly provide
numerical data and benchmarks if necessary and disclosethe current status and the review. For this purpose, it will benecessary to organize CSR activities in systematic form andto define a global management system for executing the CSR
activities.

More clear-cut definition of Tokuyama’s CSR
The essence of CSR in Tokuyama’s business operations
is already stated in the Code of Business Activities and in
the basic policy for management in harmony with society.
On the other hand, no specific action plan or benchmark
is shown. Now that the CSR foundation has been fully
developed, it is time to demonstrate Tokuyama’s CSR in
specific form in connection with its businesses. I think that
accepting external waste is a business that the community
needs. It is also vital to clarify the social needs being met
by Tokuyama. Interactive communication with stakeholders
including employees will remain indispensable. I hopethat the Company will make steady progress toward theCentennial Vision that sets out the ideal image for Tokuyama
in 2018, produce a CSR Report that clearly demonstrates the
progress, communicate with the use of the report and carryout CSR activities that respond to social needs.

In Response to the Third-Party Comments

In the process of producing Third-Party
Comments

Masao Fukuoka General Manager of the Corporate Social Responsibility Div.
We have received valuable and thought-provoking comments about the problems
and future directions of our CSR activities. In the past one year or so, we have focused
our energy on swiftly regaining the trust of stakeholders by consistently taking steps toensure that the plastic window sash incident is not repeated.
The Tokuyama Group now faces a challenge of clearly demonstrating CSR
promotion as a mechanism that supports the basic strategy toward the Centennial
Vision in a tangible form. The CSR Report is our key means of communicating withstakeholders. Based on the awareness that it is an interactive tool, we will continue toincrease its coverage in the hope that it will help boost our corporate value.

51 Tokuyama CSR Report 2010

Jul. 1991 Global Environmental Issues Committee establishedMar. 1993 Establishes the RC Administration CommitteeMar.		
Institutes a voluntary plan for Total Management of		
Environment, Safety and Quality
Apr. 1994 Acquires ISO 9002 certification for high-purity 				isopropyl alcohol
Jun.		Develops product warranty systems, including 				product and labeling assessments
Apr. 1995 Joins the Japan Responsible Care Council
May 1997 Acquires ISO 9001 certification for cement manufacturing
Sept.		Publishes the first edition of the RC Report
Apr. 1998 Acquires ISO 9001 certification for the manufacturing		of dental materials
Dec.		
Acquires ISO 9001 and 9002 certification for 				
aluminum nitride and functional powders and ISO 				
14001 certification for the Tokuyama FactoryJan. 1999 Acquires ISO 14001 certification for the Kashima FactoryJun.		
Acquires ISO 9002 certification for chemical 				
products, polypropylene, films and others
Dec.		
Sets up the Ecological Management Initiative Department
Dec.		
Acquires ISO 9002 certification for polycrystalline
		silicon, organic solvents and suchlike
Aug. 2000 Creates the Recycling and Environment Business 				
Department
Apr. 2001 Establishes Yamaguchi Eco-Tech Corporation
Apr. 2002 Acquires ISO 9002 certification for vinyl chloride 				
monomer and polyvinyl chloride
Jun.		The Kashima Factory becomes the recipient of the 				Award for Earth-Friendly Companies from the Ibaraki 				Prefectural Government.
Mar. 2003 Recipient of an award from the Director-General		
of the Industrial Science and Technology Policy
		and Environment Bureau of the Ministry of Economy,		Trade and Industry in the Award for Resource 				
Recycling Technologies and Systems

Apr.		
Renews ISO 9001 certification under 2000 standard 				
and concurrently extends its scope to the sales sector
Dec.		
Undergoes the Responsible Care verification process.
		
The Tokuyama Factory achieves a Type II zero		
accident record (8.1 million hours for the chemical		
industry) as defined by the Ministry of Health, Labour		and Welfare
Oct. 2004 Figaro Engineering Inc. acquires ISO 14001 certification.
Oct.		The Kashima Factory becomes the recipient of a prize		presented by the Director-General of Labor Bureau of		
the Ibaraki Prefectural Government.
Feb. 2005 The Tokuyama Factory becomes the recipient of a
prize presented by the Director-General of the Agency
		of Natural Resources and Energy for Factories with		Distinguished Energy Management (electricity sector).
Mar.		
Acquires Yamaguchi Prefecture Eco-Factory 				certification for the Tokuyama FactoryJun.		The Tokuyama Factory achieves a Type III zero-accident
		
record (12.2 million hours for the chemical industry) as		defined by the Ministry of Health, Labour and Welfare.
Sept.		ASTOM Corporation acquires ISO 9001 certification.
Aug. 2006 Shanghai Tokuyama Plastics Co., Ltd. acquires ISO
		9001 certification.
Oct.		
Tokuyama Mtech Corporation acquires ISO 9001 				
certification.
Dec.		The Kanto Plant of Sun·Tox Co., Ltd. acquires ISO 				
14001 certification.
Apr. 2007 Establishes the Corporate Social Responsibility Division
Jan. 2008 The Tokuyama Factory becomes the recipient of a		
prize presented by the Minister of Economy, Trade		and Industry in the Award for Excellent Energy		Management Plant.
Dec. 2009 Tokuyama Chemicals (Zhejiang) Co., Ltd. acquires 				
ISO 9001 and 14001 certification.
Mar. 2010 Acquires certification under the Responsible Care		
Global Charter

Editor’s Notes
This edition of the CSR Report has been producedwith an emphasis on giving shareholders a clearer
insight into Tokuyama’s CSR activities.

were continued from the previous fiscal year with theaim of offering a clearer picture of the Company.
We would be delighted to receive your frank

In this edition, the highlights have been introduced

feedback and suggestions so that we can continue tofor reviewing major events during the past fiscal year.

improve the CSR report as a tool for communicating

Our efforts to produce more informative special featureswith you.

For inquiries, please contact:

Corporate Social Responsibility Division

Shibuya Konno Bldg., 3-3-1, Shibuya, Shibuya-ku, Tokyo 150-8383 Japan
Phone +81-3-3499-8478

Fax +81-3-3499-8961* To ensure accessibility to as many readers as possible,
the CSR Report is also available via Tokuyama’s website.

http://www.tokuyama.co.jp/eng/enviro/
An interview with the Corporate Social
Responsibility Division

Tokuyama CSR Report 201052