Kasumigaseki Common Gate West Tower, 2-1, Kasumigaseki
3-chome, Chiyoda-ku, Tokyo 100-8983, Japan
Tel: +81-3-6205-4800

Fax: +81-3-6205-4886

www.tokuyama.co.jp/eng/
Corporate Social Responsibility Division
Tel: +81-3-6205-4835

CSR Report and Corporate Proﬁle2014

Fax: +81-3-6205-4882

Corporate Communications & Investor Relations Department
Tel: +81-3-6205-4832

Fax: +81-3-6205-4881

Published in August 2014

TOKUYAMA CSR Report and Corporate Profile 2014

Harnessing the Potential of Chemistry
to Support a Century of Useful
Manufacturing

Editorial Policy

For almost 100 years since its founding in 1918, the Tokuyama Group has been
earnestly pursuing a high level of craftsmanship in manufacturing that serves
society and benefits people.
The Group’s technologies and products have been used in a wide array ofgoods and services that are useful in people’s lives. Tokuyama’s products are
now making an impact in fields as diverse as IT, electronics, lifestyle goods,
healthcare, the environment and energy.
In order to generate long-lasting value and benefits for societies and people
everywhere, the Tokuyama Group will continue taking up challenges as it keeps
building a business driven by continuous innovation.

1

Shortly following the end of WorldWar I, Tokuyama was founded in
1918 in the town of Tokuyama (present-day Shunan City) in Yamaguchi
Prefecture. The Company went on toachieve domestic production of
soda ash, a key material that was
fundamental for Japan’s industrial
development at the time.

• The CSR Report and Corporate Profile 2014 has been compiled
for the purpose of providing stakeholders with clearly presented
information on the Tokuyama Group’s CSR initiatives and overallbusiness activities. It is an integrated report available as a printed
booklet or online PDF file. The PDF edition, available at the website below, includes more detailed numerical data and other information as well as other articles which could not be included in theprint edition due to space limitations.
www.tokuyama.co.jp/eng/csr/report/• Eriko Nashioka of the Institute for Environmental Management Accounting was invited to offer a third-party opinion on this report.
(Ms. Nashioka’s comments are presented on page 20 of the online PDF edition.)• The CSR Report and Corporate Profile 2014 has been produced
based on the Environmental Reporting Guidelines (Fiscal 2007
edition) published by the Ministry of the Environment of Japan.
Scope of the Report
Period covered: Performance data is from fiscal 2013 (April 1, 2013 to March 31,2014); certain activities carried out in fiscal 2014 are also included.
Companies covered: Tokuyama Corporation; environmental-related data is for
the Company’s Tokuyama Factory and Kashima Factory; some performance datain the online PDF version includes 11 main manufacturing subsidiaries in the
Tokuyama Group.
Areas covered: Activities reported on were mainly carried out in Japan, however,some activities include group subsidiaries outside Japan
Date of publication: August 31, 2014.
On the cover
The artwork on the front and back covers employs a color gradation technique toexpress a 24-hour day. The images show everyday scenes of Tokuyama’s products
in use, suggesting how they can be useful for creating value for people and societies
around the world in both the present and the future.

		CONTENTS

3

Message from the President

5

Special Feature 1: The Tokuyama Factory—Discovering the Secrets to Safety

		
7

		

Special Feature 2: Tokuyama’s Research and Development—Delivers Technologies That Make Society Safer

9

Tokuyama’s Pervasive Contribution to Everyday Life

11

Tokuyama’s Products

13

The Tokuyama Group’s CSR

15

Responsible Care

19

Accident Prevention and Occupational Health and Safety

21

Tokuyama’s Safety Training

23

Tokuyama’s Environmental Management

26

Company Outline

2

TOKUYAMA CSR Report and Corporate Profile 2014

Message from the President

Working Together as
a Group to Restructure
Businesses andEnsure Success in the
Global Market

Restructuring Businesses to Realize Our
Centennial Vision
As the Tokuyama Group approaches 2018, the 100th anniversary of
the Company’s founding, we are now preparing for a new era, guided
by our Centennial Vision and our motto of “Venture Spirit & Innovation.”Indeed, only companies that innovate internally will be able to thrive intoday’s global market.
In fiscal 2013, the Japanese economy continued to recover moderately as corporate earnings improved across the board, supported by thegovernment’s proactive economic measures and aggressive monetaryeasing policy. Against this backdrop, we began carrying out our Profit
Improvement Plan with a focus on restructuring the polycrystalline
silicon business, improving profits in existing and new businesses, andimproving companywide profitability.
As part of our efforts to improve companywide profitability, every
employee has been engaged in the effort to cut costs. We were able
to move forward with the plan ahead of schedule with the cooperationof our suppliers and contractors. As a result, the Company achieved
dramatic increases in profit figures.
If we look closely at the Company’s operating environment, however,
we foresee no change in the declining demand for our core products
in Japan, and although demand for polycrystalline silicon both forsemiconductor and solar cell applications is projected to rise, challenging conditions are expected to continue unless the pressing issueof the general oversupply is resolved.
Taking this into account, we have been working to break away fromour past dependence on the domestic market by transforming theCompany’s business structure so that it can successfully generate
profits under the challenging conditions of the global market andcontinue to drive growth for the Tokuyama Group.

We also recognize that Tokuyama’s employees are important stakeholders when it comes to succeeding with our corporate social
responsibility (CSR) initiatives. Accordingly, all Tokuyama people areencouraged to set career goals, which helps motivate them in theirwork, and to stay mentally and physically healthy by maintaining a
positive work-life balance. This is our approach to building a vibrantworkplace that enables employees to put our “Venture Spirit & Innovation” motto into practice.

Taking the Initiative in Environmental
Management and Giving Top Priority to Safety
Following a string of major accidents that occurred at chemical plants
in Japan in the past few years, the industry overall is working hard to
improve safety. At Tokuyama, we understand that safety must take top
priority in all business activities, and we see improving safety capabilities as the most important obligation of top management.
We put these beliefs into practice by conducting regular training anddrills for all workers at our factories and working as hard as we can toraise safety awareness. These efforts are the foundation required toensure safe and stable production operations, and ultimately to realize
Tokuyama’s mission of practicing true craftsmanship in manufacturing.
Tokuyama’s production sites follow the principle of safety first, while
striving to make improvements to manufacturing processes and toconserve energy in order to provide high-quality products with maximum efficiency. In this way, we can continue increasing both production capacity and product quality while earning a reputation as atrustworthy company in society. At the same time, we carry out
environmental management at every stage of operations, knowing that
putting greater emphasis on the environment will ultimately lead tosustainable growth for the Company and increase its corporate value.

Engaging with Stakeholders—The Key to Our
CSR Activities
Looking ahead, we will keep giving full attention to the obligations the
Tokuyama Group is expected to fulfill by society while striving toenhance our CSR-oriented management in a manner befitting a global
enterprise. I invite your feedback and would welcome a frank exchange of views on our activities and initiatives.

Centennial Vision
Profit Improvement Plan

Centennial Vision

As a prominent manufacturer, we will continue to be responsive
to society and create a better future through the vitality of ourhuman resources and the creativity of chemistry.
Tokuyama has formulated its Centennial Vision in preparation for 2018, the 100th anniversaryof its founding. The basic strategies under this vision are to bolster international competitiveness and to strengthen strategically growing businesses by identifying the most promising areas and concentrating investment and operational resources in them. Guided by its motto,“Venture Spirit & Innovation,” the Tokuyama Group has declared its commitment to developing
as a globally competitive enterprise.

Basic Strategies

Promotion

Human Resources and CSR: The Foundations
for the Basic Strategies of Our Centennial Vision

Profit Improvement Plan
Framework for pursuing basic strategies

At Tokuyama, we believe that it is essential to provide employees witha vibrant and dynamic working environment that enables everyone toexcel on the job. Training and developing outstanding human resources is the key to the ongoing growth of the Tokuyama Group.
Kazuhisa Kogo
President
Tokuyama Corporation

Having recorded a rapid decline in profit in its polycrystalline silicon business, Tokuyama
formulated its Profit Improvement Plan in fiscal 2013 with the objectives of restructuring
its polycrystalline silicon business, improving profits in existing and new businesses,
and improving companywide profitability. The plan is currently being implemented
group-wide.

1

Safe and Dependable Operations at Factories(See Special Feature 1)

One of the basic strategies of Tokuyama’s Centennial Vision is tobolster international competitiveness. As it approaches the 100th
anniversary of its founding, the Company has positioned the
Tokuyama Factory as its key facility for improving international
competitiveness, and will work to enhance the factory’s technologies, human resources, and systems as a product supply center.
Tokuyama’s basic policy is to take every necessary step to operate
all group factories without any occupational accidents, disasters orenvironmental accidents.

3

2

Profit Improvement Plan

Development of a High-Performance Scintillator
Material for Neutron Detectors (See Special Feature 2)

Another basic strategy is to strengthen strategically growing businesses. In connection with this strategy, Tokuyama has developeda scintillator material for neutron detectors by applying the single
crystal growth technology it has developed over many years. The
Company is now in the process of commercializing this revolutionary new material. Demand for detectors that can monitor neutrons
emitted from nuclear substances has grown sharply since the terrorist attacks in the United States on September 11, 2011.

4

TOKUYAMA CSR Report and Corporate Profile 2014

Special Feature 1: The Tokuyama Factory—Discovering the Secrets to Safety

Integrated operations

The Tokuyama Factory is Tokuyama’s flagship manufacturing
facility. About 3,000 employees as well as members of over 70
affiliated companies work at the site, which covers a vast area
almost as large as the country of Monaco. Producing a wide rangeof products through highly integrated operations, the Tokuyama
Factory is not only a world-leading facility in terms of production
capacity, but also in terms of safety.

Safety starts by equipping
workers on the shop floor with theskills to make improvements anda keen awareness of risks

Earning stakeholders’ trust for almost a century
Situated at the site where the Company was founded, the Tokuyama
Factory is the Group’s main manufacturing facility, and the products it
manufactures account for about 90% of non-consolidated sales.
Since the Company was established in 1918, the factory has been
producing a diverse range of products including soda ash, caustic
soda, cement, polyvinyl chloride, polycrystalline silicon, aluminum
nitride ceramics, and various kinds of chlorine-derived products.
Reflecting the Company’s business growth over almost 100 years,
operations at the Tokuyama Factory have become highly integrated,with many plants linked together and operational units working
seamlessly to effectively utilize raw materials, products, byproducts,
and waste matter. Moreover, the factory pursues an open integration
model that goes beyond in-house connections to involve the manyother companies at the Shunan Petrochemical Complex in terms ofelectricity, raw material supplies, and reuse of waste. This lean production system enables all of the companies to achieve a high level of
efficiency, which has become one of Tokuyama’s strengths.
Another one of the Company’s strengths is the relations of trust it
has built up with all of its stakeholders. Making the most of its business activities, Tokuyama continuously engages with employees,
affiliated companies and suppliers, as well as government officials andmembers of the local community. The Tokuyama Factory, in particular,
has been giving the highest priority to safety and accident prevention
initiatives as a long-established member of the community, while
continuously manufacturing products that are useful for peoples’ lives.

Tokuyama Factory General Manager Hideki Adachi (second from left) discusses safetywith employees from affiliated companies

Total site area: 1,910,000 m2
Number of workers: approx. 3,000

The factory carries out integrated
production of inorganic and organic
chemicals, cement, electronicmaterials, and other products

Polycrystalline silicon
Vinyl chloride“Zero emissions” of waste
Achievement of “zero emissions”
target:[see p.25]

Caustic soda

One of the country’s highest levels of
independently generated electricity:

552megawatts

The site includes a port with 22 berths, apublic pier, and a coal yard, as well as
an undersea tunnel connecting the
Tokuyama Plant and East Plant.

East Plant 1,020,000 ㎡

99.9％Highly efficientenergy system

Advanced infrastructurewith a port and undersea tunnel

CementSecurity andaccident
prevention

Soda ash

Ensuring safety by fostering goodcommunication among all levels of personnel
and affiliated companies
Working together with the local community, everyone at the Tokuyama
Factory accepts the important responsibility of ensuring safety. Witharound 3,000 workers onsite, including members of affiliated companies, the Tokuyama Factory practices safety based on the principlethat no one should ever leave the premises with an injury, following theslogan of “Going to work healthy and going home happy.”
Production lines operate 24 hours around the clock over three alternating shifts. During the changeover of shifts, workers closely share information about safety and accident prevention in addition to work duties.
Safety patrol teams also check production facilities on a daily basis.
The Occupational Health and Safety Committee holds meetings every
month for the entire site, including affiliated companies. Meeting participants discuss countermeasures based on reported cases of problems
and accidents both within and outside the Tokuyama Group, and sharesafety information within the site. Taking this information into account,each manufacturing division and section holds safety meetings every
month. Discussions regarding safety-related initiatives are also held
semi-annually with affiliated companies involved in equipment inspections
and maintenance. In these discussions, cases of near misses* that havebeen reported as well as proposals for specific improvements are being
effectively applied in efforts to avoid hazards and prevent accidents.

Nanyo Plant: 280,000㎡

Tokuyama Plant: 610,000㎡

Achievements of
the Tokuyama Factory

Everyday care and attention make safe andreliable operations possible
Located at the Tokuyama Factory’s East Plant, the Chemicals Manufacturing Department No. 2 produces organic solvents, which areessential for manufacturing polyvinyl chloride resin, as well as all kindsof products, which is made using ethylene dichloride and chlorine sentfrom the Chemical Manufacturing Department No. 1 via a pipeline in
an undersea tunnel. By diligently carrying out safety and accident-prevention activities every day, the department’s 95 workers haveachieved an accident-free record for eight consecutive years—equivalent to 1.5 million man hours.
While the Chemicals Manufacturing Department No. 2 makes
arrangements to ensure the safety of systems and equipment, it gives
the highest priority to individual awareness and actions as it strives toextend the accident-free record to 10 years, or 2 million man hours.
Working toward this goal, every year in May the department holds asafety workshop and invites experts from outside the Company tospeak. The workshops aim to raise awareness of safety, never forgetting the accident which occurred on May 22, 1983 at the plant’schloromethane production facilities, which had a major impact on thesurrounding environment. To ensure the stable manufacture of products that benefit people’s lives, safe and reliable production processes
are essential. Accordingly, Tokuyama asks all of its employees topledge to eliminate accidents as it strives to create new value.

Various safety activities carried out in routine work
Workers repeat the day’s safety procedure goals together when changing shifts (upper
left); a safety team on patrol at a production area (upper right); workers jointly operate acontrol panel (bottom left); a younger employee receives guidance at work (bottom right).

* Although near misses do not result in an accident or disaster, by identifying, recording, and sharing information on cases in which it is reasonable to assume that such
mistakes could have directly led to such an incident, activities can be undertaken toprevent serious accidents or disasters before they occur.

Operational manuals posted on each control panel
As a standard practice, operational manuals explaining procedures that have beenposted at a facility are also posted on each control panel. This improves operational
efficiency while also helping to ensure that younger, less familiar workers do not makemistakes and that experienced workers do not become careless.

The first step to safety is to be aware of hazardous environments
To put it bluntly, there is no safe place at a chemical plant.
Everyone is surrounded by many potential hazards, so keep-

Yukihiro Miyamoto
General Manager,
Chemicals Manufacturing
Department No. 2

5

Organic chemicals

ing aware that one is in a dangerous area should be the firstprecaution. Without that approach, I don’t think the plantcan be safe. Since there is always pressure on the shop floor
to increase production efficiency, everyone has a duty toensure safety. So there can be no individual variations in theway we perceive danger—each and every one of us must
properly recognize the dangers.
There are no magic tricks for guaranteeing safety. All we

can do is continuously stress the importance of safety, again
and again. Doing that increases our sensitivity toward risks
and encourages us to practice safety. As a manager incharge of safety, I believe that I must be this kind of safety
messenger. In my own words, I tell workers about accidents
and disasters that have happened not only in my own experience but also outside the company. By drawing on myown experience and convictions, I try to get the workers toappreciate the importance of safety so that they truly understand the dangers and make sure to avoid them.

6

TOKUYAMA CSR Report and Corporate Profile 2014

Special Feature 2: Tokuyama’s Research and Development—Delivers Technologies That Make Society Safer

What is a neutron-detection
scintillator ?

With the increasingly fast pace of globalization, issues
confronting societies are becoming global in scale; they
are common problems facing all humanity. Against thisbackdrop, Tokuyama is working to help find solutions
to these problems by making the most of the chemistry
capabilities it has built up over many years.

Neutrons

A scintillator is a material which
absorbs neutrons and converts
their energy to light. In combination with a photodetector, a scintillator can be used as a detector
in various applications.
6

Neutron-detection Scintillators
Leverage the Innovative Power ofChemistry to Make Society Safer

Light

Photodetector

Specializing in Key Areas and Speeding Up
Development

Based on its R&D principle of contributing to the development ofsociety through chemistry-derived technologies, Tokuyama is pursuing two overarching objectives in its research and development: tocreate unique, world-leading technologies by combining the Company’s established core technologies with all-new technologies, and to
produce original products by applying these technologies to meet theneeds of the market.
To achieve these objectives, Tokuyama is proactively expanding its
open innovation activities. The Company is collaborating in jointresearch projects with universities and research institutes while
focusing on fields it has developed over many years as a chemical
manufacturer. These fields include organic and inorganic material
synthesis, purification techniques, crystallization methods, electrochemistry, and polymer chemistry technologies. The Company is also
striving to accelerate its development of technologies and productsthat can help solve social issues and meet the need for new materials
that can contribute to clean energy and energy conservation.

Tokuyama is focusing its R&D resources on key areas that may
eventually lead to new kinds of value, materials and services that canbe beneficial for addressing changes in society, such as an aging
population and outdated infrastructure. In this way, the Company isaccelerating its creation of original technologies and products that other companies cannot imitate.

Leveraging Crystallization Technologies—One of
Tokuyama’s Strengths
As shown in the chronological chart below, Tokuyama has been
carrying out research and development on optical single crystals sincearound 2000. Over the years, Tokuyama has developed and accumulated a large number of original technologies regarding crystal growth,strain elimination, furnace design, optical evaluation and processing of
optical crystals.
Meanwhile, countries all around the world began to tighten homeland security to combat terrorism in the wake of the simultaneous

Tokuyama’s History of Fluoride Single Crystal Development

2001

2010

Large diameter
CaF2 (ø 300mm)
MgF2

terrorist attacks on the United States on September 11, 2001. In thiscontext, a lot of neutron detectors have been rapidly deployed,
especially in the United States, as a means to prevent the illicit proliferation of nuclear threats like plutonium and enriched uranium.
With the suddenly growing demand for neutron detectors, helium-3,
the gas mainly used for neutron detection up until that time, fell into a
supply crisis and became difficult to procure internationally due to thesoaring price in the market. Consequently, there were urgent demands
for the development of an alternative detector consisting of solidmaterial instead of helium-3.
In response to this situation, Tokuyama focused its research on
neutron-detection scintillators as a solid material to replace helium-3,
drawing on the crystal technologies accumulated in the past. This led
to the successful development of a special fluoride single crystal
containing lithium-6 (6Li), which has a high sensitivity to neutrons. This
fluoride single crystal can be handled and processed easily because it
is a solid material, and can detect neutrons with higher speed andsensitivity than conventional gas. Thanks to these advantages, users
can potentially utilize the material for a wide range of applications, notonly security, but also environmental monitoring and boron neutron
capture therapy (BNCT) for brain tumors and other forms of cancer.

Sapphire single
crystal wafer
for LEDs

Crystal evaluation

NdLaF3

LiCAF single crystal for neutron detection

Kentaro Fukuda

Doctor of Engineering
Senior Researcher,
Research & Development Department,
MOT Division

7

Equipment when
research commenced

Current equipment

LiCAF scintillator
LiCAF is a complex fluoride crystal
made of lithium, calcium, aluminum, and fluorine. A LiCAF crystal
scintillator can be used for neutron
detection in a wide range of applications because it contains a highconcentration of 6Li, which is highly
effective for capturing neutrons,
and it can be formed in complex
shapes and cover a large area.

BNCT is an advanced medical treatment which is expected to become
popular. Particularly for the treatment of brain tumors, BNCT canannihilate only the cancer cells, greatly lessening the concern aboutside effects associated with conventional radiation therapies.
Tokuyama is currently conducting demonstration tests in various
industries and trying to establish business models, aiming to commercialize its fluoride single crystal in fiscal 2015.

Gas has been used to detect neutrons for a long time,
and there was no progress made in switching over to asolid substance because there were no materials that
could detect only neutrons without reacting to X-rays
and gamma rays, which are released together with theneutrons. When solid materials were tried, they ended
up reacting in some way to the X-rays and gamma rays.
Therefore, our biggest challenge was to overcome thisproblem. We repeatedly carried out experiments whilechanging the combinations of materials, eventually test-≫ Crystal growth technology≫ Crystal Strain elimination technique≫ Furnace design technology≫ Optical crystal evaluation method≫ Processing of optical crystals

Furnace design

An example of a portabledetector module using of
the LiCAF scintillator

Practical skills lead to knowledge, and repeating that process brings about new things

Developed technologies

Strain elimination

A security gate using neutron detectors to check for nuclear substances

2013 年

Sapphire single
crystals for LEDs

Optical single
crystals

Crystal growth

EnergyScintillator

Creating New Technologies and Novel Materials
That Benefit Society

CaF2

Li

Single crystal under research anddevelopment.

Current single crystal

ing over 1,000 different materials.
Growing fluoride crystals is not simple, but Tokuyama
has very advanced technical expertise in crystallizationand excellent facilities. Furthermore, we incorporated
technologies from Tohoku University, with which we
had been conducting joint-research in the past, andsucceeded in drastically shortening the time required forcrystallization from the typical time of several weeks tojust one or two days. As a result, we realized a fluoride
crystal of sufficient performance after around one year.
As a researcher, I give about the same level of importance to practical skills as I give to theoretical thinking. Of
course, many experiments end up in failure or produce
different results than expected, but because of that, we
can change our ideas and see things in new ways. By
repeating this process over and over, anyone can learn
things he didn’t understand before, or develop skills that
he didn’t previously have. That is the true pleasure of
doing research and development.
Now we are finally moving ahead with commercialization. Since the technology can be used in various industries, I hope this research makes further progress and our
products contribute to society.

8

TOKUYAMA CSR Report and Corporate Profile 2014

Tokuyama’s Pervasive Contribution to Everyday Life

Leveraging the Power of Chemistry to Create a Safer, More Comfortable Future
Tokuyama pursues the highest level of craftsmanship in its manufacturing operations, aiming to deliver benefit
to people and value to society befitting a world-class chemical manufacturer.
As the Company strives to contribute to society with products that create new possibilities for the future,
everyone at Tokuyama is dedicated to taking on the challenges that lie ahead.

Sustaining People’s Lives Todayand Supporting theInfrastructure of Tomorrow

Helping Make Every Day
Comfortable and Healthy

Supporting Society and People’s
Lifestyles with High-Performance,
Highly Functional Products
Silicon encapsulant(fumed silica)
Fluorescent substancehigh-purity
aluminum nitride
powder（）

Package substrate
aluminum nitride
ceramics（

LED chipDegreasing for base
(METACLENE)）

Promoting a Recycling-Oriented
Society That Benefits People
and the Environment
Recycling plant for waste
gypsum board

IPA SE,（ TOKUSOTOKUSO SD Series）®

Insulating layer
aluminum nitride（ for fillers）

Tokuyama productapplications in an LED bulb:
product names in parentheses

9

Since its establishment in 1918, Tokuyama has been producing soda ash, a product used as a raw material for various
goods used in everyday life, including glass, soap, detergent,and food additives such as brine.* Among these items, foodadditive grade soda ash is made exclusively by Tokuyama
in Japan.
Tokuyama also produces hydrogen, which is a byproductfrom its caustic soda manufacturing process. Amid high expectations for the usage of hydrogen as a future energy
source, Tokuyama is working to popularize use of liquidhydrogen in society as a fuel cell material for next-generation
eco-vehicles, by exploiting its potential for stable storage
and transport.

Porum is Tokuyama’s brand of microporous film which repels
water but still allows air and moisture to penetrate. Because
Porum is soft and highly functional, it can be used as backsheets for disposable infant and adult diapers. Tokuyama has
been expanding its production facilities for Porum in responseto rapidly growing consumption of disposable diapers, notonly in Japan but also in emerging countries in recent years.
Products supported by Tokuyama technology can also befound in the medicine cabinet. Developed over many years,
Tokuyama’s organic synthesis technologies are helping people maintain their health through stable supply of the highquality active pharmaceutical ingredients.

*Brine is a solution of soda ash (sodium carbonate) or other type of salt
in water.

* Active pharmaceutical ingredients are contained in drugs, and are listed as
ingredients on the packaging of over-the-counter drugs.

Semiconductors are used in personal computers, LEDs, home
appliances, automobiles and a vast number of industrial machines. Their efficiency and processing speed slows, however,when heat builds up inside the components, so finding ways
to reduce this heat is an issue in the industry. Tokuyama’s
high-purity aluminum nitride ceramics effectively dissipate
heat owing to their superior thermal conductivity. Consequently, they are used in heat-dissipating substrates of power
semiconductors,* which generate particularly large amountsof heat. In this way, Tokuyama is helping raise energy efficiency and energy conservation.
Tokuyama is a leading manufacturer in Japan for polycrystalline silicon, a key material for semiconductors. Polycrystalline silicon is also used for solar cells and it contributes to facilitating the adoption of renewable energy.

* Power semiconductors are used to control and convert electricity in motors,
lighting systems and other devices. They are widely used in machinery for
manufacturing such products as personal computers, televisions, air conditioners, and automobiles.

As a basic material for social infrastructure, cement is essential for the development of society and public safety. At its
cement plants, Tokuyama is reusing waste matter* that had
mostly been incinerated or sent to landfills in the past as raw
materials or an alternative thermal energy source forcement production. In this way, the Company is helping topromote a recycling-oriented society.
In addition, Tokuyama has achieved a 100% recycling rate
for waste gypsum board by using its industry-first technologies. The Company’s active efforts to reuse raw materials are
attracting attention from various industries.

* For every ton of cement it produces, Tokuyama uses 460 kilograms of waste
matter or waste-derived substances as raw materials.

10

TOKUYAMA CSR Report and Corporate Profile 2014

Tokuyama’s Products

Contributing to Society with Products That Help Support People’s Daily Lives

Providing Materials Essential for a Wide Arrayof Industries
Tokuyama produces a large number of materials that industries depend on to make theproducts which support modern lifestyles.
The Company’s chemical products are transformed into many different types of products
which help people accomplish their better lives.

Soda Ash and Calcium Chloride Business

Soda ashCalcium chloride (liquid or granular)
Sodium bicarbonate
New Organic Chemicals Business

Isopropyl alcohol (IPA)
Chlor-Alkali and Vinyl Chloride Business

Soda ash

Caustic soda

Chlorine derivatives

Caustic soda (liquid or flakes)
Methylene chloride
Propylene oxide (PO)Ethylene dichloride (EDC)
Vinyl chloride monomer (VCM)

Electronic Materials BusinessDriving the Evolution of IT and the Future of Energy
and Environmental Technologies

Polycrystalline silicon
Fumed Silica BusinessFumed silica
High-purity fused spherical silica
SHAPAL Business

High-purity aluminum nitride powder andgranulesAluminum nitride powder for fillers

Tokuyama’s specialty products and technologies are among the world’s best for enabling theextremely high performance of today’s semiconductors, which are the central components
powering cutting-edge electronic devices and are used in products such as smart phones,
flat-screen televisions, and hybrid vehicles.

Polycrystalline silicon

Aluminum nitride

Chemicals for electronics
manufacturing

IC Chemicals and Cleaning System Business

High-purity chemicals for electronics
manufacturing (TOKUSO IPA® SE, METACLENE® SE)
Positive-type photoresist developer
METACLENE®, YUTORUNA

Soda ash is used in a wide range
of applications as a raw material
for glass, detergent, and food andbeverage additives, as well as amaterial used for the production of
inorganic chemicals and iron andsteel. Tokuyama is currently the only
company in Japan making food additive grade soda ash.

Caustic soda is an essential substance in the manufacturing processes of a broad array of products
including paper, synthetic fibers, foodseasonings, soap, and aluminum.
With Japan's second highest production capacity of caustic soda ata single production site, Tokuyama
is helping ensure a stable supply tovarious industries.

Chlorine, hydrochloric acid andother chlorinated substances areproduced through the electrolysis ofbrine, and are used as raw materials
for polyvinyl chloride, urethane, andvarious kinds of solvents, as well as
everyday items such as tap water
purifiers.

Drawing on the Full Potential of Chemistry to Make
People’s Lives Healthier and More Comfortable
Tokuyama is also engaged in the fields of healthcare and hygiene, providing countless people
around the world with high-quality lifestyle and medical products that help make every day
healthy and comfortable.

Microporous film

Plastic lens-relatedmaterials

Chemicals
Business
Division

Specialty
Products
Business
DivisionLife& Amenity
Business
Division

CementBusiness
Division

Bulk pharmaceuticals

NF Business

Microporous film

11

Photochromic dye materials protect
the eyes from the sun's ultraviolet
rays and change from transparent toeither gray or brown when exposed
to sunlight. In addition, the Company’s hard-coating solutions improveabrasion resistance on the surface oflenses and are used worldwide.

Tokuyama produces pharmaceuticalingredients and intermediates for
drugs. The Company is contributing
to achieving high-quality medicalcare as a good partner to pharmaceutical makers by ensuring a stablesupply of high-quality products fromits production facilities, which comply
with strict manufacturing and quality
control guidelines.

Aluminum nitride ceramics have ahigher rate of thermal conductivity andinsulation compared to other kindsof ceramics. Used as heat-dissipation materials, they support stable
operations of semiconductors usedin advanced devices such as LEDs
and optical transmission systems.
Tokuyama possesses the world’s top
market share of the powdered form.

As semiconductor devices become
increasingly higher performance,
extremely high purity is demandedof the chemicals used for cleaningin electronics manufacturing. In
response to these advanced requirements, Tokuyama provides various
kinds of high-purity chemicals forelectronics production applications,
including IPA.

Promoting a Recycling-Oriented Society with
Recycling Technologies That Are Ahead of Their Time
Tokuyama works to help maintain and improve social infrastructure by supplying good-quality
cement, and promotes a sustainable society by reusing industrial waste as a raw material in its
cement production.

Cement Business
Fine Chemicals BusinessPharmaceutical ingredients andintermediates for drugs
Plastic lens-related materials

Microporous film repels water but
allows air and moisture to penetrate.
It is used as an air-permeable material attached to non-woven fabrics,
moisture-absorption and drying
agents, disposable heat pads, andback-sheets for disposable diapers.

Tokuyama’s technologies for attaining
extremely pure polycrystalline silicon
contribute to bringing out the high performance of semiconductors. Having
a high standard of product quality andprocess sustainability, Tokuyama hasearned an excellent reputation andtrust in the semiconductor industry as
one of the world’s market leaders in the
production of polycrystalline silicon.

Cement Business

Recycling and Environment-related
Business

Portland cement
Cement for dam construction
Blast furnace slag cement
Ready-mixed concrete
Cement-type stabilizer
Plaster sheets for interior and inkjet printing

Products made by group companies

Recycling and Environment-related Business

Polyolefin film
Reagents, analyzers and systems for clinicaltests
Dental materials and equipment
Electro-dialyzers and ion exchange
membranes for desalination andcondensation
Sensing elements and devices
Plastic window sashes and related products,
and residential construction materials

Utilization of waste plastic for fuelUtilization of incinerated ash as a raw
material for cement
Recycling of waste gypsum boards

Boasting the second-largest single cement plant in Japan,
Tokuyama produces various kinds of cement for specificneeds both in Japan and abroad, including ordinary, early-strength, and moderate-heat Portland cement, as wellas blast furnace slag cement. It also produces productsthat are useful for structural foundation work, including
cement soil stabilizers for reinforcing soft ground.

As an environmental initiative far ahead of its time,
Tokuyama began effectively utilizing waste matter as araw material for cement in 1938. The Company has kept
this mindset up to the present day, continuously creating
new recycling businesses and technologies. For example,
Tokuyama has recently drawn attention from the industrial
waste processing industry for its continuous re-crystallization technology for industry-first waste gypsum board.

12

TOKUYAMA CSR Report and Corporate Profile 2014

The Tokuyama Group’s CSR

Pursuing Corporate Social
Responsibility by Practicing
Socially Responsive Management
Aiming to be a company that is always trusted bysociety, Tokuyama has organized its management
system to provide a foundation for conducting fairand impartial business activities, and is pursuing
CSR-oriented management encompassing
measures to ensure compliance and implement
Responsible Care activities.
Tokuyama has created the above symbol for CSR promotion. Depicting a sunflower, the symbol is intended to convey the Company’s active, healthy and honest stance toward CSR. Under this symbol, theTokuyama Group will not only pursue compliance and efficiency in its
business operations, but will also work to develop into a vibrant,sound corporate entity that is socially and environmentally beneficial
and is trusted by all stakeholders.

Basic Philosophy of Tokuyama’s
CSR-Oriented Management

Tokuyama’s CSR
BasicTaking Our CSR Initiatives to the Next Level

Tokuyama approaches its CSR activities
Philosophy
in accordance with a basic philosophyof continuously working with society
Basic Policy
to build a sustainable future andManagement that is responsive
practicing corporate conduct thatto society
is evaluated highly by its various
Implementation of CSR Activities
stakeholders, namely,
shareholders, customers,
Build good relationships with various stakeholders
employees, trading
partners, communities
CSR Foundations
and society as a
Ensuring sound corporate governancewhole.
Establishing effective internal control systems
Securing compliance
Strengthening risk management
Implementing Responsible Care activities
Tokuyama Group Code of Conduct
Tokuyama Group Guidelines for Business Activities
Tokuyama Group’s Five Conscience Clauses

Tokuyama Group’s
Five Conscience
Clauses
Our behavior shall:

I recognize that Tokuyama is expected to fulfill its corporatesocial responsibility while engaging with stakeholders. Accordingly, the Company determines the impact that each stage ofRepresentative Director,
Senior Managing Executive Officer(director responsible for the Corporate
Social Responsibility Division)① Comply with laws, regulations and internal rules② Conform to the Tokuyama Group Code of Conduct③ Justify the trust of customers and trading partners

ganizing our management structure to strengthen corporate

while holding itself accountable for its actions. Through thesegovernance, and improving management transparency while

activities, the Tokuyama Group is seeking to help create a sus-

emphasizing corporate ethics. Moving forward, we recognize

tainable future for everyone.

the need to expand our CSR platform globally as the Group
expands operations beyond Japan.
we are looking forward to launching a new era for the Tokuyama

activities began as voluntary initiatives for managing chemical
substances, they have driven the evolution of our environmen-

Group. We recognize that companies must continually trans-

tal management, resulting in considerable reductions in en-

new era, we intend to take our CSR initiatives to the next levelergy consumption on a per-unit basis, and the establishmentof a business for recycling materials used at the Company’s
cement factory.

as we live up to the basic principles of Tokuyama’s CSR-orient-≫ Basic Approach
Recognizing that corporate governance provides an essential foundation for raising its corporate value, Tokuyama prioritizes routine
inspections and periodic reviews as a means of continuously ensuring
a proper framework for the conduct of management. Accordingly, theCompany strives to fulfill the highest standards of corporate ethics andstrictly comply with laws and regulations as it works to improve
corporate value. With an awareness of its corporate social responsibility, Tokuyama practices “management that is responsive to society” in13

ed management.

⑤ Maintain standards that can be spoken of with pride in

front of family members and coworkers≫ Corporate Governance Framework
Board of Directors

Corporate Governanceform themselves if they are to thrive in the future. As part of our④ Earn the respect of society and general consumers

order to earn the trust of stakeholders, including shareholders,customers, trading partners, employees and local communities.

Tokuyama pursues CSR to build good relations with all of its stakeholders, in accordance with its basic philosophy of CSR-oriented
management and basic policy of “management that is responsive tosociety.”
Recognizing that internal controls are the basis for CSR, Tokuyama
is working to establish a CSR implementation structure that gives
equal weight to ensuring sound corporate governance, securing
compliance, strengthening risk management, and implementing
Responsible Care activities, which are vital endeavors for a chemical
manufacturer.
To achieve continuous growth as a group that is trusted by society
and always chosen by customers, the Tokuyama Group has formulated its Code of Conduct and Five Conscience Clauses for all employees and officers. It makes the content of these documents known to
all members of the Group by posting them on notice boards in theworkplace and distributing them as booklets. Furthermore, eachgroup company is setting its own action guidelines in an effort to forge
relations with every type of stakeholder.

As we approach the Company’s 100th anniversary in 2018,

out Responsible Care activities for many years. While these

CSR Promotion Council

Tokuyama’s Approach to CSR

system focused on compliance and risk management, reor-

its business activities has on communities and the environment

While aiming to remain a “prominent manufacturer that is responsive to society,” the Tokuyama Group has been carrying

Tatsuo Segawa

We have made progress in establishing a platform for pursuing CSR activities in recent years, setting up an internal control

Tokuyama’s Board of Directors deliberates and makes decisions onimportant matters concerning the execution of the Company’s business while supervising business operations. Tokuyama appoints two
external directors for the purpose of strengthening the supervisory
function of the Board of Directors. Moreover, the Company adopted
an executive officer system in April 2011 for the purpose of separating
the supervisory and executive functions.

Chaired by the president, the CSR Promotion Council was establishedto set CSR-related policies and goals, and ensure that activities aresmoothly carried out so such goals are achieved. Positioning corporate governance and internal controls as the basis for CSR activities,
the council deliberates on important matters concerning internal
control systems.
Risk Management and Compliance Committee
Operating under the CSR Promotion Council, the Risk Management
and Compliance Committee is chaired by the director responsible for
the Corporate Social Responsibility Division. The committee takes theinitiative in promoting risk management and compliance, which areboth core elements of internal control systems.

Audit & Supervisory Board

Helpline Committee

Tokuyama’s Audit & Supervisory Board reports on, discusses, anddecides on important matters related to auditing. Its members attend
meetings of the Board of Directors as well as other important company meetings while overseeing the execution of duties by the directors.

The Helpline Committee is responsible for operating Tokuyama’s
whistleblowing helpline, which was set up to enable internal

Human Resources Committee

Corporate Governance Structure

Comprised of representative directors and external directors, the
Human Resources Committee holds discussions on such matters as
remuneration for directors and executive officers and the selection ofcandidates for director and executive officer positions in advance ofBoard of Directors meetings.
Executive Committee and Strategy Committee
Established as advisory bodies to the president, the Executive Committee and Strategy Committee are comprised of executive officers
selected by the president. The Executive Committee drafts management plans and key strategies, discusses and decides on generalbusiness policies and plans, and provides the president with reports
needed for making decisions on business matters. The Strategy
Committee discusses important matters such as the pros and cons of
pursuing certain businesses and the manner in which to executethem. It also assists the president in determining the direction ofbusiness objectives.

reporting of legally questionable actions and behavior of executives or employees.
Departments Responsible for Internal Auditing
Tokuyama established the Auditing Department and the Responsible
Care Management Department as its organizations responsible forinternal auditing. Both departments conduct internal audits of all departments and divisions of the Company as well as group companies.

≫ Framework for Ensuring Risk Management and Compliance
As a framework for ensuring risk management and compliance,
Tokuyama has established the CSR Promotion Council, under which
important company-wide issues are handled by seven committees:
the Financial Reporting Committee, Fair Trade Compliance Committee, Foreign Trade Compliance Committee, Information Security
Committee, Environmental Measures Committee, Safety Measures
Committee, and Product Safety and Quality Assurance Committee.

Shareholders’ Meeting
Appoint/dismiss

ReportBoard of Directors
Audit

Human Resources Committee

Decide/supervise

Appoint/dismiss

Strategy Committee

Whistle-blowing
SystemAudit & Supervisory Board
Collaborate
Audit & Supervisory Board Members

Audit

Helpline

Audit

Business Operations
Executive Committee

Appoint/dismiss

Accounting Auditors

Helpline Committee
President
Departments Responsible
for Internal Auditing
Auditing Dept.
RC Management Dept.
Internal audit

CSR Promotion Council
Risk Management and Compliance Committee
Seven Committees Handling ImportantCompanywide Issues
Instruct / educate /raise awarenessBusiness Divisions, Back-Office Divisions, Research Laboratories, Factories and Group Companies

14

TOKUYAMA CSR Report and Corporate Profile 2014

Responsible Care

Protecting the Environment,
Ensuring Safety, and Promoting
Good Health for People and Local
Communities

Responsible Care activities are an essential
com-ponent of Tokuyama’s corporate social
responsibility. Tokuyama has put in place companywide infrastructure for promoting Responsible Care,and is incorporating this initiative in each of its
management systems as it strives to continuously
improve its environmental, safety, and quality
systems.

What is Responsible Care?

Framework for Promoting Responsible Care

As a framework for promoting Responsible Care, Tokuyama hasestablished a number of related organizations that pursue concrete
initiatives under its CSR Promotion Council, which is chaired by thecompany president. Specifically, it set up the Environmental Measures
Committee, Safety Measures Committee, and Product Safety andQuality Assurance Committee as decision-making bodies, and theProduct Assessment Subcommittee and several other subcommittees
as assessment organizations.

Responsible Care Evaluation and Management
SystemTokuyama formulates medium-term plans for its Responsible Care activities, and sets policies
and goalsCouncil
aimed at achieving the plan every
CSR Promotion
fiscal year. Individual departments then create and carry out specificplans
based on these policies and goals.
The results of initiatives are
Assessment Function
Decision-Making Function
evaluated at the end of each fiscal year and incorporated in plans for theEnvironmental Measures
Product Assessment
following
fiscal year.
Committee
Subcommittee(Labeling
Assessment
Subcommittee)
Tokuyama
is currently
carrying out Responsible Care activities under
Safety Measures Committee
a four-year plan launched at the beginning of fiscal 2011.
Safety and Environmental
Assessment Subcommittee

Responsible Care is a voluntary management initiative through which
companies that manufacture and handle chemical substances
undertake measures for protecting the environment and ensuring thesafety and health of their employees as well as members of the public.
It covers all operations, from the development of chemical substances
to their manufacturing, distribution, usage, final consumption anddisposal. Responsible Care also encourages the public disclosure ofthese activities along with dialogue and communication with membersof society. The Responsible Care initiative originated in Canada in
1985, and is currently used in 52 countries around the world. In 1995,
the Japan Chemical Industry Association (JCIA) set up the Japan
Responsible Care Council, and later renamed it the Responsible Care
Committee. As of April 1, 2014, the committee had 104 corporate
members. As one of the original members of the organization,
Tokuyama has been actively implementing Responsible Care activities
as the basis for its environmental management and CSR activities.

Responsible Care Promotion Structure

Product Safety and Quality
Assurance Committee

Responsible
Care Management
RC
Research DeptOperationof Management
Systems
Department (Secretariat)(support organization)
This laboratory checks the safety ofThis department promotes RC activities
chemicals and assesses their environthroughout the Group, covering the areas
mental impact using simulations. It alsoof the environment, safety and quality.
ISO
14001
environmental
management
systemcarries out environmental measurements,
working environment measurements and
The Company’s
Tokuyama
Factory and Kashima Factory have acquired
ultra-trace
analysis of substances
underregulationand chemical
pollutants an international standard for environmental
ISO 14001
certification,

management systems. Each factory sets an environmental policy andgoals in line with Tokuyama’s company-wide environmental policy, andundertakes related activities intended to alleviate environmental impact,conserve energy, reduce waste, and recycle resources.
Tokuyama’s head office, branch offices and research laboratories
also set policies and goals according to the scale of their respective
operations, and pursue such activities as energy conservation, waste
reduction, and resource recycling.

RC Activity Evaluation and Management System(Environmental Preservation)

CSR Promotion Council
Assessment Function

Decision-Making Function

Product Assessment
Subcommittee

Environmental Measures
Committee(Labeling Assessment Subcommittee)

Safety and Environmental
Assessment Subcommittee

Safety Measures Committee
Product Safety and Quality
Assurance Committee

RC Research Dept
(support organization)

Responsible Care Management
Department (Secretariat)

This laboratory checks the safety ofchemicals and assesses their environmental impact using simulations. It also
carries out environmental measurements,
working environment measurements andultra-trace analysis of substances underregulation and chemical pollutants

This department promotes RC activities
throughout the Group, covering the areasof the environment, safety and quality.

15

Incorporate assessment results into goals andplans for the following fiscal year

RC Activity Goals

Occupational health and safety management systems
In accordance with the New Occupational Health and Safety Guidelines issued by the Japan Chemical Industry Association (JCIA),
Tokuyama has established and is operating occupational health andsafety management systems at each of its workplaces. In fiscal 2005,
the Tokuyama Factory expanded its safety management system byincorporating a broader range of safety-related activities.

order to verify that the facilities have been planned to be safe andenvironmentally friendly, built according to design specifications, andcompletely ready for operation.

Product and labelling assessments
As a means to ensure product safety, Tokuyama conducts a productsafety assessment at every stage of operations, from the initial research and development stage through to market release. The assessments confirm compliance with legal requirements and evaluate
the level of various risks, including the safety of chemical substancesused in the product, their potential impact on the environment, andtheir effect on human health. The Company also checks all labelling in
documents such as product catalogs, safe handling manuals, andsafety data sheets in order to ensure that instructions and warnings
are complete and accurate.

Assessment Systems
Responsible Care Implementation Infrastructureand Management System Operations
Tokuyama has set up several assessment systems in an effort to
reduce environmental- and safety-related risks.

Safety and environmental assessments
Tokuyama conducts safety and environmental assessments before
newly installing, expanding or modifying any of its facilities. The
Company checks the safety design of equipment, the safety level ofmaterials to be handled, compliance with the laws and regulations, theimpact on the environment, and other factors with the aim of ensuring
facilities that are easy to operate, simple to maintain, and not prone toaccidents or disasters. The assessments are conducted at the three
separate stages of basic plans, designs, and preliminary operations, in＊ A safety data sheet is a document for recording information related to the risks and toxicity ofchemical substances. It is prepared to facilitate the safe handling of such substances, and includes
the names of the substances, safety measures, and procedures for responding to emergencies.

Auditing systems
Tokuyama has established an auditing system for the purpose ofverifying that each of its workplaces carries out their respective activities
in an appropriate manner in accordance with company-wide policies.

Safety and environmental audits
Tokuyama conducts safety and environmental audits on an annual
basis in order to verify the applicability of its environmental conservation management and accident- and disaster-prevention measures.
Led by the director chairing the Safety Measures Committee and theEnvironmental Measures Committee, auditing teams inspect each
workplace, including the Purchasing & Logistics Department, HealthManagement Center, and all organizations subject to inspection under

Basic Philosophy of Responsible Care
Basic Policy

3. Promote energy conservation and curb global warming

As a member of the JCIA Responsible Care Committee, Tokuyama Corporation carries out Responsible Care activities that protect the environment
and preserve safety and health throughout the entire chemical substancelife cycle, from development and manufacturing to distribution, use, final
consumption and disposal.
Our social mission is to aggressively tackle and systematically solve
environmental issues in particular, which, in turn, will lead to sustainablecorporate and social development. Based on this recognition, we promote
Environmental Management, a management policy that emphasizes theenvironment, in all of our business activities, including development, manu-• Achieve top-class unit energy consumption in the industry for eachproduct
4. Promote resource recycling and work toward reduction and the proper
management of waste materials• Promote the material recycling and thermal recycling of resources• Work toward achieving a paperless office
5. Promote process safety, disaster prevention and occupational healthand safety• Aim for zero accidents and disasters based on the principles of selfresponsibility and the self-management of safety• Achieve a comfortable working environment and protect people’s safety
and health

Medium-Term Environmental
Plan
Environmental Management
Plan

Assessment of Activities

Tokuyama has acquired ISO 9001 certification for its quality management
system, which has been operating since fiscal 2002 as a company-widesystem encompassing sales, development and all other operations.

facturing and sales.

Environmental Impact
Reduction Goals

Environmental
Management Activities

ISO 9001 quality management system

ISO14001
Environmental Management
SystemSafety and Environmental
Assessment System
RC Audit System

Action Objectives
1. Promote environmental protection• Implement an ISO 14001-based Environmental Management System
and reduce environmental impact
2. Observe the laws and regulations• Observe international rules, domestic laws and regulations and industrial
standards• Thoroughly implement export management rules on materials under control

6. Ensure strict product safety standards• Offer environmentally friendly products that can be used with safety• Provide proper information on how to use products and what precautions
to take
7. Deepen the relationship of trust with society• Publicly disclose information on the Company’s activities concerning
environmental protection, process safety and disaster prevention, occupational health and safety, and chemical product safety• Actively engage in dialogue with the local communities

Environmental Accounting
Environmental Performance

16

TOKUYAMA CSR Report and Corporate Profile 2014

Responsible Care

Japan’s High Pressure Gas Safety Act. The results of the audits arecompiled in reports and distributed to all departments concerned
along with the company president.

Audits by third parties
Tokuyama undergoes ISO 9001 and ISO 14001 examinations conducted by accreditation organizations. According to the most recent
examination for maintaining ISO 9001 certification conducted in April
2014, three items were designated as opportunities for improvement,
and the Company dealt with each accordingly. Likewise, examinations
for renewing ISO 14001 certifications were carried out at the
Tokuyama Factory in October 2013 and the Kashima Factory in
November 2013. A total of nine items were identified, seven of whichwere designated as opportunities for improvement and two as casesof minor nonconformity. The factories then undertook remedial
measures based on the findings.

Internal audits
In accordance with its occupational health and safety management
system as well as ISO 9001 and ISO 14001 standards, Tokuyama
periodically conducts internal audits covering the progress of its actionplans, the status of system operations, and other related matters. If
problems are uncovered, relevant personnel are notified and remedial
measures are taken.

Education and Training

Tokuyama provides all employees with general training on Responsible
Care within its multi-tier group educational programs. Moreover,personnel involved in environmental management, safety management, occupational health and safety, and quality management areprovided practical education and training in each of these respective
management activities.

Environmental management training
The Tokuyama Factory and the Kashima Factory have establishededucational and training programs based on ISO 14001 environmental
manuals. Offered to employees and contracted workers alike, thetraining focuses on the importance of environmental conservation andcompliance with relevant laws and regulations. In fiscal 2013, approximately 3,400 people participated in the training. In addition, 18 internal
auditors participated in training sessions aimed at enhancing theirauditing skills.

Safety management and occupational health and safety
training
Tokuyama provides its staff with training covering a wide range of
topics including: hazard prediction; practical education; pre-operation
hazard prediction; safety regulations; in-house specialized courses onelectricity, oxygen deficiency, waste incinerators, and other topics;
foreman skills; troubleshooting; usage of fire prevention and extinguishing systems; evacuation drills; general disaster drills; traffic
safety; and the provision of accident- and disaster-prevention assistance offsite.

Quality management training
Tokuyama provides training on ISO-related issues in each of its
workplaces. In fiscal 2013, eight key personnel from various workplaces completed an ISO 9001 internal auditor training course, and in

17

August 2013, 32 internal auditors participated in an auditor skills
improvement seminar led by company personnel.

Business Continuity Planning Initiatives

A business continuity plan (BCP) is an action plan prepared by abusiness for the purpose of minimizing the impact of a disaster,
accident or other state of emergency on its core operations, and forenabling the earliest possible recovery and resumption of operations
that have been temporarily suspended by such circumstances.
Tokuyama formulated a Basic Policy for Continuing Operations in the
Event of a Disaster (see p. 18, upper left), and established a BCP
based on a near-future scenario of a major earthquake occurring
directly below the Tokyo metropolitan area. The Company is also
drawing up BCPs to respond to such events as a major earthquake
along the Nankai Trough and new influenza pandemics.

Priority Tasks and Results of Responsible Care Activities in Fiscal 2013
Category

Priority tasks

Results

Management

Review of Responsible Caremanagement by top managers● Held meetings on promoting CSR● Comply with legal requirements and other● Strictly complied with legal requirements

regulations● Achieve zero environmental accidents● Achieve targets for reducing environmental
impact- Reduce emissions of substances that affectthe environment- Conserve energy- Maintain “zero emissions” of waste● Continue making improvements toenvironmental management systems● No environmental accidents

Safety and accident
prevention
Occupational health andsafety● Ensure no accidents or disasters occur● Achieved another year free of facility accidents● Enhance safety management systems● Two accidents which did not require employees to miss work

● Promote risk management and hazard

One contractor accident not requiring anyone to miss work and one requiring a leaveof absence● Enhanced safety management systems- Included near-miss reports in risk assessments- Improved safety management during changes- Utilized/shared safety-related information● Promoted risk and hazard management- Tested a BCP based on a major earthquake in the Tokyo metropolitan area
- Examined disaster prevention measures for responding to an earthquake andtsunami at the Tokuyama Factory- Held comprehensive disaster prevention and safety activities- Conducted various kinds of drills● Promoted physical and mental health
Implemented health management focusing on addressing mental health issues andlifestyle diseases

Chemical product safety● Ensure the safety of products

Environmental
conservation

Initial emergency response and BCP drills
As a part of BCP initiatives, in December 2013 the Company held an
initial emergency response drill to test its BCP based on the scenario
of an earthquake hitting Tokyo during regular business hours. Held fora second time following the first drill in the previous year, the drill
involved the Tokuyama Factory, the Kashima Factory, the Tsukuba
Research Laboratory and 13 group companies located in the Tokyo
metropolitan area.
During the simulation drill, an emergency response headquarters
was established in Tokuyama’s head office in Tokyo, and at the sametime, a Tokuyama support headquarters was set up at the Tokuyama
Factory, the safety of employees and officers was confirmed, communication channels were secured, information on damage sustained
was collected and shared, and relief supplies were distributed (seephotos on p. 18, upper right) .
In addition to the initial emergency response drills, a simulation drill
for continuing essential operations was carried out by the Chemicals
Business Division at the Tokuyama Factory in March 2014, based on
the scenario of a shutdown of the Tokyo Head Office. The drill tested
the Tokuyama Factory’s ability to transfer the chain of command andkey duties handled by the Tokyo Head Office to its sales and production departments at the factory, and, with these departments incharge, secure communication channels, share information, andprepare to continue operations.

Basic Policy for Continuing Operations in the Event of a Disaster① We shall ensure the physical safety of employees and officers, temporary

management● Promote physical and mental health⑤ We shall work to resume business activities as soon as possible and mini-

mize the impact on our stakeholders.

⑥ We shall provide regular training and education to employees and officers

and specify their roles in the event of a disaster.

(Established by the CSR Promotion Council on March 29, 2012)

Atmospheric emissions- SOx emissions reduced by 48% year on year
- NOx emissions increased by 9% year on year
- Beat target for reducing soot emissions by 14%
Water quality- Chemical oxygen demand (COD) amount increased by 6% over the targeted amount- Beat target for reducing nitrogen emissions by 37%- Beat target for reducing phosphorus emissions by 20%- Pollutant release and transfer register (PRTR)- Beat target for reducing emissions of PRTR designated substances by 2%● Promoted energy conservation- Reduced unit energy consumption by 20.6% compared to fiscal 1990
- Maintained effective utilization of waste rate of 94%● Maintained landfill to total waste rate of 1%● Continued to improve environmental management systems- Reviewed/simplified documents and systems● Conducted inspections of products and labelling● Complied with the Asian version of the Regulation on Registration, Evaluation,- Authorisation and Restriction of Chemicals (REACH)

ilies.

④ We shall assist local communities with recovery of social functions.

● Reduced emissions of substances that affect the environment● Actively participated in the JIPS*② We shall quickly confirm the safety of employees and officers and their fam-secondary damage.

● Conducted safety, environment, and quality audits● Revised safety data sheets

staff, and visitors to the Company.

③ We shall repair and maintain all worksites and take steps to prevent any

Damage in the surroundingarea was determined and theinformation was shared during
the simulation drill.

An emergency response headquarters was set up in the Tokyo Head Office and teams
were assembled to respond to
the disaster during a drill to test
the BCP based on a major
earthquake hitting the Tokyo
metropolitan area.

Build relations of trustwith local communities
and society● Participate in community events● Participated in community volunteer activities● Establish a good reputation in society● Held dialogues with the community on Responsible Care

Promote Responsible
Care to groupcompanies● Expand the scope of Responsible Care

● Held factory tours

activities● Conducted safety, environment, and quality audits● Distributed information related to

Responsible Care
- Provided monthly information via an online newsletter

The Japan Initiative of Product Stewardship is an initiative spearheaded by the Japan Chemical Industry Association with the aim of facilitating the independent management of chemicals. Its members
collect and analyze information on the hazardous properties of chemical substances and products in order to carry out risk assessments incorporating data on their usage and applications, comparing
levels of exposure and safety. The risk assessment results provide a basis for proper chemical substance management aimed at ensuring workers’ occupational safety, protecting consumers, and reducing
environmental impact. The outcomes of such management activities are then disclosed to the general public and suppliers across the supply chain.

18

TOKUYAMA CSR Report and Corporate Profile 2014

Accident Prevention and Occupational Health and Safety

Forging Strong Ties with Local
Communities while Buildinga Positive, Safe,
Accident-free Workplace
Recognizing that safety is the basis for its
business activities, Tokuyama practices safety as
the first step to maintaining good relations withthe communities in which it operates. Based on
this approach, the Company carries out stringent
accident prevention measures and occupational
health and safety initiatives in its efforts to create
a positive and safe work environment that is freeof accidents.

Tokuyama’s Commitment to Occupational
Health and Safety≫ Improving safety management systems

A New Year’s firefighting event on January 24, 2014

education and training, and utilizes systems for managing risks,changes, and crises as a means to raise the level of safety management and identify specific sources of risks.

≫ Disaster drills

Tokuyama’s Commitment to Safety and
Accident Prevention

Tokuyama conducts a variety of disaster drills, including general
disaster drills together with Shunan City.

≫ Comprehensive safety and accident-prevention measures≫ Working to maintain workplace safety and ensure
no accidents

Tokuyama has set three principles for ensuring safety: fulfill theobligations of a good corporate citizen, give safety priority over all
business activities, and ensure that everyone is aware of their responsibilities and acts accordingly. Based on these principles, the Company carries out exhaustive measures for ensuring safety in manufacturing activities and at its facilities. Specifically, worksites conduct safety
patrol operations and kiken yochi hazard prediction activities, examine
near-miss accidents, practice the 5S principles (a system in Japan for
promoting sorting, setting in order, systematic cleaning, standardizing,and sustaining discipline), and use a point and call-out method foraffirming onsite conditions. Furthermore, the Company provides safety

In fiscal 2013, no facility accidents occurred at any of Tokuyama’s
worksites, including the Kashima Factory and Tsukuba ResearchLaboratory. Consequently, the Tokuyama Factory maintained its
record of zero facility accidents for the sixth consecutive year. Accidents not requiring employees to miss work, however, occurred onceat the Tokuyama Factory and once at the Kashima Factory. In addition,
two accidents involving employees of contractors at the Tokuyama
Factory occurred, with workers not having to miss work in one case,but taking a leave of absence in the other case. Looking ahead,
Tokuyama will continue making steadfast efforts to ensure that noaccidents or disasters happen at its worksites.

Fiscal 2013 Company-wide Safety Management Policy

All of Tokuyama’s worksites have adopted safety management systems, through which they conduct risk assessments covering operation, equipment, and processes, and continuously make improvements in order to completely eliminate potential risks. The Company
also reviews its system for safety management during changes,
examining it for completeness and whether evaluation standards arenecessary for improvements. In light of serious accidents caused by
explosions at other companies’ chemical plants in recent years,
Tokuyama has begun revising its risk assessment methods to take into
consideration non-routine tasks (including unusual situations), since allof the recent explosions happened when the plants were not operating normally, such as during facility maintenance work or emergency
shutdowns and startups.

≫ Helping contractors promote health and safety
Tokuyama and its contractors carry out joint-patrols at the contractors’
worksites and actively engage in dialogue about safety in order to
identify hazardous work conditions and devise measures to deal withthem. In this way, employees and contractors work together to put
forward safety management initiatives.

≫ Promoting sound physical and mental health
In an effort to improve working methods and facilities, Tokuyama takes
measurements of working conditions at worksites where specified
chemical substances and organic solvents are handled, and has its
workplaces inspected by industrial physicians.
As a measure to combat lifestyle-related illness, Tokuyama provides
its employees with one-on-one health counseling that incorporates theresults of medical checkups. It also encourages employees who havenot completed a full checkup to do so with written reminders, which
resulted in 86.5% of such employees returning for a full checkup in
fiscal 2013. The company-wide employee absenteeism rate, which

Comparison of accident frequency rates *1

Policy Objectives

Recognizing that safety is the basis for its business activities,
Tokuyama practices safety as the first step toward maintaining good
relations with the communities in which it operates.

The objectives of the Safety Management Policy are to nurture andenhance a workplace culture of safety in order to operate without
any accidents or disasters, and to ensure the safety of facilities andpeople both onsite and in the community.

had been rising in recent years, also decreased in fiscal 2013 to 5.3‰
from 5.5‰ in the previous fiscal year. In addition, Tokuyama has beenenhancing its health management support system for personnel ittransfers overseas through such steps as dispatching an industrial
physician to Tokuyama Malaysia Sdn. Bhd.

Expenditures for accident prevention andoccupational health and safety
Earthquake andnatural disastercountermeasures

37（16％）

Total amountin 2013

224(Millions of yen)Accident prevention
measures111（50％）Occupational health andsafety measures
76（34％）

Comparison of accident severity rates *2

2.0

Basic Approach to Safety

A safety audit at the Kashima Factory on November 14, 2013

0.15

0.12

1.5

0.09
1.0

Our Three Safety Principles

Key Action Items

Safety for the community

Improve safety management systems

We shall fulfill the obligations of a good corporate citizen.
Prioritizing safety
We shall give safety priority over all business activities.
Responsibility for safety
We shall ensure that everyone is aware of their responsibilities and• Enhance risk assessments by reporting on near-miss accidents• Enhance safety management during changes• Utilize and share safety-related information
Make progress in risk management and hazard management• Incorporate a business continuity plan (BCP) based on the sce-

acts accordingly.

nario of a major earthquake in Tokyo• Establish a company-wide BCP to respond to a major earthquake or tsunami at the Tokuyama Factory
Promote sound physical and mental health

0.06
0.5

0.03

0.0

13 (FY)All industries in Japan

Tokuyama Corporation

Chemical industry in Japan*1 As an indicator of the frequency of industrial accidents, the accident frequency rate is calculated
as the number of workers forced to miss work due to an industrial accident per one million cumulative working hours.

19

0.00

13 (FY)All industries in Japan

Tokuyama Corporation

Chemical industry in Japan*2 As an indicator of the magnitude of industrial accidents that have occurred, the accident severity rate is calculated as the number of lost work days due to industrial accidents per 1,000 cumulative working hours.

20

TOKUYAMA CSR Report and Corporate Profile 2014

Tokuyama’s Safety Training

Promoting Independent Learningand “Thinking Before Doing” toImprove Skills and Safety

Handing Down Tokuyama’s Tradition of Safety≫ Equipping workers with the skills and knowledge required
to prevent accidents and stay safe

Amid growing calls for greater safety and security
in society, Tokuyama recognizes that raising theawareness of safety among its employees andequipping each of them with the skills needed to keep
safe are essential to enhance the corporate value of
the Tokuyama Group. Toward this end, the Company
is providing an effective combination of both on-thejob and off-the-job training intended to encourage
employees to appreciate their social obligation toproactively ensure safety.

Safety Training Programs
Learning how to hang from a safety harness

Using a ladder on the factory exterior≫ Encouraging self-initiative to improve employees’
motivation
For Tokuyama to achieve sustainable growth, it is essential to cultivate
human resources and enable workplaces to drive such growth going
forward. With this in mind, the Company is working to develop its
human resources by making the most of the individual talents of its
diverse employees and helping each person improve and fully display
his or her abilities, in order to improve motivation.
At the same time, Tokuyama is focusing on transferring technical skills
and capabilities in order to ensure that its long tradition of craftsmanshipas a chemical manufacturer is passed on to the next generation ofworkers. By encouraging employees to pursue independent study, takethe initiative to put ideas into action, an experience the benefits ofpersonal growth and improved performance, Tokuyama is aiming todevelop more proactive and creative employees and workplaces.

≫ Transferring Tokuyama’s tradition of safety toTokuyama Malaysia

Experiencing improperly fastened scaffolding

21

Making a habit of “thinking before doing” to keepfrom forgetting
Toyohiko Nagamura (photo above, left)
Chemicals Manufacturing Department No. 2
Since memorizing every single work procedure is difficult, we have to assume
that people will forget some things. Therefore, it is essential to think before doing.
Certain work procedures are specially thought out to ensure that no mistakes are
made, so I try to fully explain their importance to other workers.

Norio Nakamura (photo above, right)
Chemicals Manufacturing Department No. 2
I start work after checking the details of the day’s production operations in advance. I take notes at the production line and go over everything several times
afterwards to make sure I understand. I have only been assigned for one week,
so I try to think on my own, ask questions about what I don’t understand, and do
things over and over to improve my skills.

Unifying the team to improve awareness ofhazards and hand down skills and knowledge

Tokuyama is proactively extending its safety activities to Tokuyama
Malaysia Sdn. Bhd., which employs about 500 people at its head
office and factories, collectively situated on a vast plot of some 2
million m2. Aiming to achieve the same level of safe and reliable
operations as at its factories in Japan, Tokuyama is working hard toeducate and train local Malaysian workers and combine their skills
with Japanese staff stationed onsite so that the Company’s tradition ofgiving first priority to safety becomes rooted at Tokuyama Malaysia.

Getting sprayed by a leaky pipe

Training Programs at the Technical Education
and Training Center

Operation Expert Course
Third training course on production skills

Prerequisite for foremen

Operation Engineer Course II
Second training course on
production skills≫ Employees improve skills and become more aware ofsafety at the Technical Education and Training Center
Tokuyama established its Technical Education and Training Center in2007 for the purpose of raising the overall level of the capabilities andtechnologies it has built up over many years, and to transfer thisexpertise to young workers. The basic knowledge required at chemical plants, hands-on skills using the center’s training equipment andother useful topics are all covered in training programs, which areprovided to employees for the first 10 years after they enter theCompany, or before they are promoted to factory foreman, as well as
to workers hired at group companies.
Providing safety training is one of the key roles of the Center. It
carries out practical training on handling dangers, particularly for new
employees, by using facilities specially made for simulating dangerous
situations, which would be difficult to teach onsite or demonstrate inon-the-job training. Trainees directly experience things like the force ofa hammer falling from the second floor hitting their helmet, the impor-

While Tokuyama strives to transfer skills and capabilities related to
manufacturing to new workers, the Company also seeks to pass down
its tradition of giving first priority to safety and its techniques andknow-how for avoiding risks.
At Tokuyama’s production plants, safety meetings are held every day
before work begins to provide opportunities for each production line
team to discuss kiken yochi hazard prediction measures and usefulexamples of near-miss accidents and actual cases of accidents. In thisway, the meetings facilitate communication among experienced andyoung workers while raising awareness of hazards.
Many types of operations are handled on production lines, so it is
not easy for new and younger workers to learn precise procedures.
Therefore, younger workers are paired up with skilled personnel andthey repeatedly carry out work together. This ensures that younger
workers learn and master practical skills, including techniques andpointers that are difficult to teach outside of the shop floor, methods
for checking safety, and the importance of following proper sequencesof procedures and their effect on the processes that follow.
A relatively long time of one and a half to two years is needed for
new workers to learn operations. Therefore, Tokuyama employs
various methods designed to speed up the process of transferring thetechnical skills required for its original manufacturing techniques.

Masakazu Matsumura
Foreman, Chemicals Manufacturing Department No. 2
It is important to fully hand down the skills andknowledge needed for preventing accidents ordisasters from happening. To make sure thatnew employees and young workers are attuned
to dangerous situations, I am trying to makeeveryone in my work team aware of hazards. As
a foreman, I need to keep the team unified, so I
pay attention to the interactions between young
and experienced workers to make sure they arecommunicating effectively.

Years 7– 10 after
entering the Company

Operation Engineer Course I
First training course on
production skills

Years 1– 6 after
entering the Company

Production Engineer
CourseEstablishing safety awareness for trainees at STTC, TMSB Samalaju
Factory, Samalaju Industry Park, Bintulu, Sarawak, in Malaysia

Training on basic skills
including sessions on
handling dangers

1

Number of consecutive years

5

10

15

tance of wearing a safety harness for preventing injury when falling,
the feeling of losing one’s footing on an improperly fastened scaffolding board, being sprayed with liquids like solvents from loosely fastened piping, and getting caught in moving machinery. In this way, thetraining curriculum has trainees actually experience unsafe conditions
so that they properly learn correct procedures for ensuring safety andtake the initiative in keeping the workplace safe.

Misnah binti Lamat

Executive,STTC,TMSB Samalaju Factory,
Samalaju Industry Park, Bintulu,
Sarawak, in Malaysia

At the Samalaju Technical Training Centre (STTC), we
provide a safety training course to new hires, based on
the management policy, “Safety Is Our First Priority”. Anywrong move can lead a person to disaster, so everyone istaught to instil and apply safety practices like Hiyarihatto,
Kiken Yochi Training and using Personal Protective Equipment. To establish a good work environment and to boost
staff morale, 5S is also important for safety in the workplace.
The training includes case studies in global safety inci-

habits at all times. Safety is as simple as A, B, C (Always Be
Careful), but it takes constant attention. Trainees give grouppresentations on how to spot dangers, take early precautionary steps and eliminate accidents.
The trainees are very dedicated to the daily 5S, on-timeassignment submission, making good scores and sharing
safety work experiences. However, their English is not that
good and they are not used to taking notes. I believe that
this safety training course is greatly contributing to minimis-

dents and group activities to highlight mishaps if safety isignored. The trainees are encouraged to cultivate safety

ing errors, accidents and disasters and helping to achieve ahigh-class safety working standard. “Goannzenni!”

22

TOKUYAMA CSR Report and Corporate Profile 2014

Tokuyama’s Environmental Management

Implementing Environmental
Management to Reduce
Environmental Impact

Performance in Fiscal 2013

Environmental Accounting

Tokuyama works to accurately determine the input and output ofmaterials for production, and regularly sets new targets aimed at
reducing environmental impact.
Among its targets for reducing environmental impact in fiscal 2013,
Tokuyama did not meet its target for reducing energy consumption ona per-unit basis due to a decrease in the overall operating rate of its
factories. It also fell short of its target for reducing chemical oxygen
demand (COD) in water, owing to a greater burden on its treatment
facilities resulting from the increased operating rate of related facilities.
However, Tokuyama achieved its other water quality targets for
reducing nitrogen and phosphorous. It also met targets for reducing
soot and substances designated by the Pollutant Release and Transfer
Register (PRTR), as well as targets for recycling and reducing emissions of waste to virtually zero.
Tokuyama is in the process of reviewing and examining its numericaltargets, looking to set goals for performance data beginning in fiscal
2015. Tokuyama’s targets in the past have been more ambitious thanthose set in regulations and other standards. So, making thesetargeted amounts even more ambitious will not be easy. Moreover,these targets are greatly affected by the operating rates of facilities,
which, in turn, depend on changes in business conditions. Thispartially impairs the function of the targets as reliable indicators. At thesame time, the Company plans to study items that should be disclosed as key performance indicators in the future.

For Tokuyama, the pursuit of proactive
initiatives to protect the earth’s environment
is an important part of its corporate social
responsibilities. Accordingly, the Company
practices environmental management that takes
into account the natural environment inall business activities.

Measures to Help Combat Global Warming

Tokuyama has been carrying out environmental accounting since
fiscal 2000 in order to accurately determine and analyze the investment amounts and costs associated with its environmental conservation activities, thereby providing a sound basis for making environmental investments.

≫ Environmental costs
Of Tokuyama’s total environmental investment in fiscal 2013, 57% was
intended for resource recycling, followed by 28% for pollution control,
11% for global environmental conservation, and 4% for management
activities. The main investments were intended to improve the performance of neutralizing facilities, as well as to upgrade equipment andinstall facilities. Meanwhile, among environmental costs in fiscal 2013,
70% of the total was generated by pollution control, 17% by resource
recycling, and 6% by global environmental conservation.

≫ Economic Benefits of Environmental
Economic benefits are determined by calculating only monetary gains
on the reduction of energy consumption, the sale of valuable waste,
the reduction in waste disposal costs through waste recycling, and the
reduction in raw material and fuel costs through waste recycling. In
fiscal 2013, these economic benefits totaled almost ¥1.7 billion, a slightdecrease of ¥25 million compared to the previous fiscal year.

It is extremely important that every company take measures to curb
global warming. With this in mind, Tokuyama is making steady progress in conserving energy throughout its business activities, andsupporting efforts by employees to save energy at home.

≫ Promoting energy conservation
Tokuyama consumes a vast amount of energy to manufacture its coreproducts such as caustic soda, cement, and polycrystalline silicon. It
also emits carbon dioxide (CO2), one of the greenhouse gases,
primarily in its burning of fossil fuels and decarboxylation of limestone,
which is used as a raw material for cement production.
Recognizing the grave importance of combating global warming,
Tokuyama is working to keep its CO2 emissions in check by implementing energy conservation measures. The Tokuyama Factory, which
accounts for more than 99% of the Company’s total energy consumption, proceeded with switch from burning coal to alternative fuels, andmade improvements designed to save energy in fiscal 2013. The factory has reduced energy consumption on a per-unit basis by 20.6%
compared to the fiscal 1990 level; however, this was mainly due to adecrease in its operating rate. Having taken into account the businessenvironment in which it operates, Tokuyama has set a target for
reducing per-unit energy consumption by 3.0% compared to the fiscal
2005 level, effective from fiscal 2014 through to fiscal 2020.

Flow of Materials in Business Activities

OUTPUT

Waste and by-products

1,945

Carbon dioxide (CO2)
Production

Fuel

1,760

5,930
Waste

Tokuyama(incinerated and landfill)

21(43,700,000 gigajoules)

Raw materials

6,080

Products

5,910

Substances withenvironmental impact

10

Environmental Preservation Costs
Category

Costs in Business Areas

INPUT

Major Activities

Amount Invested(¥ million)

Costs (¥ million)

Pollution Control

Replacement of electric dust
collectors and neutralizing facilities,
etc.

238

4, 639GlobalEnvironmental
Conservation

Improvement of facilities for theeffective utilization of coal

95

395

Resource Recycling

Expansion of facility capacity tohandle increasing amounts ofwaste disposal

485

1, 126

0

1

32

267

Upstream andDownstream Costs
Management
Activity Costs

Process effluent

42,20022,100(Unit: 1,000 metric tons)

Coolant water and other types of eﬄuent

Reduction rate (%)

0

0

-5
-10
目標
-15

-18.4 -18.6

-17.5

-16.4

-20

Environmental analysis equipment,etc.

Research andDevelopment Costs00Social Activity Costs

Greenery development, productionof CSR report

069

Costs forEnvironmental Damage

Imposition, management of aformer mining site

0

144

850

6, 642

Total

-22.4

-25

90

05

06

07

08

Economic Benefits in Fiscal 2013

Gains on Reduction in Energy Consumption

Material Benefit(1,000 metric tons)

Economic Benefit(¥ million)-

196

Gains on Sale of Valuable Waste

74

200

Gains on Reduction in Waste Disposal
Costs through Waste Recycling

295

759

Gains on Reduction in Raw Material andFuel Costs through Waste Recycling

296

534

-

1, 689

Total

-21.8

-20.6

-24.6 -24.2

09

10

11

12

13 （FY）* The unit energy consumption index is calculated using a method recommended
by the Japan Chemical Industry Association (JCIA).

Energy Consumption(Thousands of gigajoules/year)

Category

Industrial water

Unit Energy Consumption Index* (Tokuyama Factory)

60,000

2,700

2,800

50,00050,70049,90040,0002,800
52,50037,600

2,600

2,800

44,20043,70030,00020,00010,00009009Tokuyama Corporation

10

11

12

13 （FY）

Group companies

Note: All amounts are for Tokuyama Corporation ona non-consolidated basis in fiscal 2013

23

24

Tokuyama’s Environmental Management

Company Outline
Financial Highlights

Local governments
Yamaguchi Eco-tech
Corporation

Company name:

Tokuyama Corporation

Location:

Tokyo Head Office
Kasumigaseki Common Gate West Tower, 2-1,
Kasumigaseki 3-chome, Chiyoda-ku, Tokyo 100-8983, Japan
Tel: +81-3-6205-4800 Fax: +81-3-6205-4886

Incinerated ash

The Nanyo Plant’s Cement
Production Recycling System

Raw material crusher
Preheater
Raw material dryer

Raw material powder silo

Outside corporations
Waste plastics

Local governments
Sewage sludge

Natural resources
Limestone
Silica stone

In-house

Coal ash

Organic sludge

Finishing crusher

Rotary kiln

SludgeConstruction waste soil
Coal crusher

Natural resources

Incombustible lime

Coal

SludgeCement silo

Outside corporations

Construction waste soil

Outside corporations

Waste carbon

Main energy source
Alternative energy sources

50

Established:

February 16, 1918

Capital:¥53,458 million (as of March 31, 2014)

Number of employees:

5,756 (consolidated basis; including 1,341 working overseas);
2,041 (non-consolidated basis) (as of March 31, 2014)

Main businesses:

Tokuyama makes exhaustive efforts to reduce and recycle the waste it
generates. As a result, the Company maintained a 94.7% effective utilization rate of waste and again hit its “zero emissions” target of 99.9%
in fiscal 2013.

≫ Waste Management
Tokuyama generated a total of 396,000 metric tons of waste in fiscal
2013. It actively worked to recycle this waste both in and outside theCompany, mainly by re-using waste matter as raw materials and fuel for
cement at the Tokuyama Factory. In addition, packing materials, pallets
and other wood waste were crushed and then used as fuel for power
plants. Through its diligent efforts to recycle waste as raw material for
cement, Tokuyama achieved an effective utilization rate of 94.7%, on parwith the previous fiscal year. Moreover, owing to progress made inreusing waste and reducing the amount generated, the Company again
achieved its “zero emissions” target of 99.9% in fiscal 2013.

Landﬁll amount

82.4
76.9

40,00030,000

93.5

93.5

99.9
94.4

99.9

99.9

94.7

94.7

（％）

100
80
60

36,26020,00040

10,000
0

90

440

430

500

330

280

09

10

11

12

13

Landﬁll amount (metric tons)

Eﬀective utilization rate

20
(FY)

0

“Zero emissions” rate

Manufacture and sale of the following chemicals and products
Chemicals: Soda ash, chlor-alkali, vinyl chloride and new organic
chemicals
Specialty Products: Polycrystalline silicon, fumed silica, high-purity
chemicals for electronics manufacturing and aluminum nitride
Cement: Cement, recycling and environment-related businessLife & Amenity: Fine chemicals, microporous films, synthetic resins,
ion exchange membranes and dental materials

Others¥ 47.2 billion(14.7%)(26.8%)

Life & Amenity¥ 57.0 billion

Total¥ 287.3 billion*(17.7%)

Specialty Products¥ 52.4 billion

Cement¥ 78.9 billion

4043 (First Section of the Tokyo Stock Exchange)(16.3%)(24.5%)* Segment sales results include inter-segment sales

Waste recycled
in-house(re-used as raw materials)

24.5
6.1%

350

“Zero emissions” rate
99.9％

88.７%

Total waste
generated

396

Effective utilization rate
94.7％

(Unit: 1,000 metric tons)

Effective utilization rate (%) =Amount of waste recycled (in-house and externally)
×100
Total waste generated“Zero emissions” rate (%) =Amount of landfilled waste (onsite and offsite)
1Total waste generated

Flow of Industrial Waste Treatment

Tokuyama’s main locations overseas

×100(unit: 1,000 metric tons)

Third-Party Opinion
Incinerated in-house

Recycled in-house

350.2

19.5

Landﬁlled onsite

0In-house
Waste disposed offsite

25.8

Recycled externallyOutside the Company

Chemicals¥ 86.4 billion

0.1%

5.2%

Waste recycled externally

24.5

177.8

Fiscal 2013 Sales by Business Segment

0.3

395.5

Eﬀective utilization rate / “zero emissions” rate

50,000

99.9

185.0

100

Waste sent to landfills

Total waste generated

Amount of Waste Sent to Landfills
and Rate of Effective Utilization
99.9

197.7

187.9

Breakdown of Industrial Waste Treatment in Fiscal 2013
20.5

258.6

164.2

Kazuhisa Kogo

Securities code:

Incinerated waste(metric tons)

200

President:

Cement shipment

Recycling and Reducing Waste

287.3

282.3

250

150

Plaster
Main raw materials

289.7

273.1

Number of Group companies: 87 (as of March 31, 2014)

Plaster
In-house

Alternative raw materials

Consolidated

(FY)

クーラー

In-house

Non-consolidated

300

Other facilities in Japan
Kashima Factory, Tsukuba Research Laboratory,
Osaka Branch, Takamatsu Branch, Hiroshima Branch,
Fukuoka Branch, Sendai Office and Nagoya Office6

Clinker silo

Waste liquid

In-house

Slag

Waste plastics

Preincineration

Organic sludge

Coal ash

Outside corporations

In-house

Outside corporations

Outside corporations

Tokuyama Factory
1-1, Mikage-cho, Shunan-shi, Yamaguchi 745-8648,
Japan (Registered address)
Tel: +81-834-34-2000 Fax: +81-834-33-3790

Net sales(Billions of yen)

Incinerated externally

1.0

Landﬁlled offsite

0.3

A Review of Tokuyama’s CSR Report and Corporate Profile 2014
Eriko Nashioka
Representative Director, Institute for Environmental Management Accounting, Certified
Public Accountant and Certified Tax Accountant, and part-time lecturer in environmental
accounting and environmental auditing for the Faculty of Commerce, Doshisha University.
The content of the third-party opinion is available on the Company’s website in the “ThirdParty Opinion” section in the online version of the CSR report, accessible via the URL shown
below or the QR code shown at right.

http://www.tokuyama.co.jp/eng/csr/report/pdf/2014csr_report_e_20.pdf
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