Chemistry with a heart

Tokuyama Corp.
Responsible Care Management Dept.,
Corporate Social Responsibility Division
Shibuya Konno Bldg., 3-1, Shibuya 3-chome
Shibuya-ku, Tokyo 150-8383 Japan
Tel: +81 3-3499-8478
Fax: +81 3-3499-8961
URL: http://www.tokuyama.co.jp/

CSR Report 2008
In Harmony with People,
Society and the Environment

Staying with you all the time

Mixed Sources
Product group from well-managed
forests and other controlled sources

This report is printed on FSC-accredited paper with pure plant oil ink, which contains
no volatile organic compounds and in a dry printing process that uses no water,thus precluding release of any harmful effluents.

Corporate Social Responsibility Report 2008

Top Message

Contents
1
3
5

We promote business operations under our management policy,“Venture Spirit & Innovation,” to create a company
that is in harmony with society.

7911On February 16, 2008, the Tokuyama Group celebrated
the 90th anniversary of its establishment. I hereby express
my gratitude to all stakeholders for their committed
support. We will promote business operations under ourmanagement policy, “Venture Spirit & Innovation,” as weapproach the centennial of our establishment.
On the occasion of the 90th anniversary, the TokuyamaGroup set out a corporate vision for the next ten years,
called the Centennial Vision. It defines the optimum form of
the Group as “a manufacturing company that creates abrighter future with the vitality of human resources andcreativity of chemistry in harmony with society.” The
Centennial Vision is based on the concept that theframework of its Human Resources-based management andPromotion of corporate social responsibility (CSR) activities
will be strengthened in a bid to achieve the vision.
On the basis of this principle, this report is designed toensure that all stakeholders have better insight into theactivities and future goals of the Group, which is aiming to
be a manufacturing company that is in harmony withsociety. Until two years ago, the report was entitledResponsible Care Report. Since last year, the report has
been prepared under the new title, CSR Report. This
reflects our desire to ensure consistency in our activities
from the perspective of stakeholders in accordance with
the CSR concept.
It is solely in the context of their relationships withstakeholders that companies receive recognition and are
required to meet their responsibilities. In the light of thisnotion, the company engages in activities to improve its
level of CSR to review individual processes in the businessactivities. The Tokuyama Group’s longstanding CSR
activities have three major pillars – Responsible Care
activities, environmental management and the assurance
and enhancement of compliance.
Responsible Care activities are voluntary, worldwide
activities performed by the chemical industry to safeguard
the environment, to ensure health and safety throughout
the lifecycle of chemical products including development,
manufacturing, distribution, utilization, final consumption
and disposal. We have been engaged in these activities formore than a decade.
Environmental management aims to reorganize allbusiness activities into an environmentally friendly form toincrease corporate value and to build a sustainable society.
The Tokuyama Group operates two businesses, one
engaged in the manufacture of chemicals and the other incement production. Taking advantage of this uniqueness,
we have been putting effort into recycling by-products andwaste. In addition, we are constantly working to help
create an environmentally friendly country through energy
conservation technologies, environmental technologies
and the development of environmentally friendly productson the basis of the vitality of human resources andcreativity in chemistry.
To improve our activities in ensuring and enhancing
compliance, we set up the Sunflower Committee twoyears ago as a body for encouraging the operation andmaintenance of internal control.
Based on these past achievements, we review these
activities from the stakeholders’ standpoint in accordancewith the concept of CSR to align the directions of theseTop Message
Summary of BusinessIn Your Everyday Life
- Chemistry in harmony with Society
Summary of the New Three-YearManagement Plan (for fiscal 2008-2010)
Topic 1Tokuyama’s 90-Year History– Venture Spirit & Innovation
Topic 2
An Ever-Evolving Integrated Production Base with
the Full Use of Resources - Tokuyama Factory

Tokuyama’s CSR Activities
13
15
18

What Are Tokuyama’s CSR Activities?
The Foundation of CSR – Being a Trusted Company
RC Promotion Structure and Operation ofManagement Systems

Harmony with Society
efforts, and further improve and augment the initiatives.
The Tokuyama Group wishes to continue to be a
corporate group that has the trust and respect of the
public. We believe the trust and respect can only bemaintained by continuous efforts. As we work toward thecompany’s centennial, the business environment isdrastically changing. Amid these changes, we arecommitted to carrying “Venture Spirit & Innovation” into
execution in relation to every process of our businessactivities to evolve into a corporation that is in harmony
with society. We would be grateful if you could provide us
with any comments and suggestions you have in relation
to this report.

21
24
27
29

July 2008

37
38
39

Shigeaki Nakahara
President

30

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

Harmony with the Environment
33
34
35

Performance for Fiscal 2007
Environmental Accounting
Commitment to the Prevention of Global
Warming
Reduction of Air and Water Pollutants
Waste Reduction and Recycling
Development of Environmental Products andTechnologies

Site Report
Editorial Policy
CSR Report 2008 has been prepared with the aim of bringing
Tokuyama’s activities directed at meeting its Corporate Social
Responsibility in fiscal 2007 to the attention of all concerned,
including shareholders, investors, trading partners, employees andtheir families, people living near its production sites and members of
the public. Reports concerning harmony with society are better
covered in this report than in the last issue, CSR Report 2007.

1

Tokuyama CSR Report 2008

Scope of the Report
CSR Report 2008 has been prepared based on theEnvironmental Reporting Guidelines (Fiscal 2007 edition)
published by the Ministry of the Environment.
CSR Report 2008 is also available via Tokuyama’s website:
http://www.tokuyama.co.jp/

4243Tokuyama Factory/Kashima Factory
Activities of the Group Companies

45
46
46

Comments from Third Parties
History of Tokuyama’s RC Activities
Editor’s Notes

Period:All performance data are for fiscal 2007, from April
2007 to March 2008. Activities are for fiscal 2007 ingeneral, with some for fiscal 2008.
Companies:
Tokuyama Corporation (Environmental
performance data relate to the Tokuyama factory
and the Kashima factory.) Part of the performancedata also includes the total value of the main
production subsidiaries (See page 43).
Region:Activities in Japan
Date of issue: October 31, 2008 (The next edition will be issued in
October 2009.)

Tokuyama CSR Report 20082

Summary of BusinessCompany Outline
Business Segments and Major Products(including group companies)

Corporate Name:

Tokuyama Corporation

Established:

February 16, 1918

Capital:29,975 million yen (as of March 31, 2008)

Registered address:

1-1, Mikage-cho, Shunan city, Yamaguchi
Japan

Head office:Shibuya Konno Bldg. 3-1, Shibuya 3-chome
Shibuya-ku, Tokyo 150-8383 Japan

Branchesand offices:

Sendai, Nagoya, Osaka, Takamatsu
Hiroshima and Fukuoka

Production andResearch Sites:

Tokuyama Factory, Kashima Factory and
Tsukuba Research Laboratory

Number ofConsolidated
Subsidiaries:

47

Number of EquityMethod Companies:

13

Chemicals

Specialty Products

Cement, Building Materials and Others

Caustic soda, soda ash, calcium chloride, sodium silicate, vinyl
chloride monomer, polyvinyl chloride resin, propylene oxide,isopropyl alcohol, methylene chloride, biaxial-oriented
polypropylene films, co-extrusion multi-layer films, castpolypropylene films, microporous films

Polycrystalline silicon, precipitated silica, fumed silica, aluminum
nitride, dental materials and equipment, pharmaceutical ingredientsand intermediates, plastic lens materials for glasses, ion-exchange
membranes and systems, metal washing solvents, high-purity
chemicals for the electronics manufacturing, clinical analyzers andsystems, gas sensors and gas detectors

Ordinary Portland cement, high early-strength Portland cement,
Portland blast furnace slag cement, ready-mixed concrete, plastic
window sashes, cement-type stabilizer and waste treatment< Principal Group Companies >Shin Dai-ichi Vinyl Corporation, Sun-Tox Co., Ltd. and Sun
Arrow Chemical Co., Ltd.

Sales Breakdown by Segment (Fiscal 2007)

Net Sales(billion yen)

Consolidated

Total:

Chemicals

250

118.3

200

(38.5%)

263.3
237.5

219.3
145.0

150

155.4

192.6

171.1

206.1

0

Non-consolidated

Consolidated

35

2003

2004

2005

2006

2007

(persons)

Non-consolidated

27.3

25

5,000

20
18.1

Consolidated

2,000

5

1,000

0

0

2006

2007
(Fiscal year)

Tokuyama CSR Report 2008

Asia
Tokuyama Trading (Shanghai) Co., Ltd., China
Shanghai Tokuyama Plastics Co., Ltd., China
Tokuyama Chemicals (Zhejiang) Co., Ltd., China
Tokuyama Electronic Materials (Suzhou) Co., Ltd., China

3,000

17.0

2005

5,057

4,000

10.2

2004

4,852

4,630

4,614

4,568

28.5

24.3

North
America
Tianjin Figaro Electronic Co., Ltd., China

35.3

34.7

30

Europe(Fiscal year)

6,000

2003

Tokuyama America Inc.,
United States
Figaro USA, Inc.,
United States

Number of Employees

Operating Profit

9.5

Tokuyama Europe GmbH, Germany
Eurodia Industrie S.A., France

50(billion yen)(billion yen)

13.1

Tokuyama’s Global Network

100

Specialty
products
101.2 (32.9%)

15< Principal Group Companies >Tokuyama Tsusho Trading Co., Ltd., Shanon Corporation andTokuyama Ready Mixed Concrete Co., Ltd.

307.4

292.7

300

307.4

3

Non-consolidated< Principal Group Companies >A&T Corporation, Figaro Engineering Inc. and Tokuyama
Dental Corporation

350

Cement,building
materials
and others
87.8 (28.6%)

10*For further information about the products, see also the following page.

2,113

2,004

2,028

2,067

2,127

Taiwan Tokuyama Corporation, Taiwan
Tokuyama Korea Co., Ltd., South Korea
Hantok Chemicals Co., Ltd., South Korea
Tokuyama Siam Silica Co., Ltd., Thailand

2003

2004

2005

2006

2007
(Fiscal year)

Tokuyama Electronic Chemicals Pte. Ltd., Singapore
Tokuyama Asia Pacific Pte. Ltd., Singapore

Tokuyama CSR Report 2008

4

In Your Everyday Life - Chemistry in harmony with Society
Tokuyama has devoted itself diligently to manufacturing in an effort to serve society and tobring happiness to people since its establishment. Although they may attract little attention,
products that are valuable in everyday life help you in your daily life. If you notice our
products, you will find that Tokuyama is always beside you.

Shampoo(isopropyl alcohol)

Bathtubs(propylene oxide)

Bath salts

Low-salt soy sauce and table salt

Water pipes

Gas detectors

Kitchen cleanser (sodium bicarbonate)

Outsidethe home(sodium bicarbonate)(ion exchange membrane)(polyvinyl chloride resin)

Tokuyama offers security andcomfort while paying attention
to the environment.

Clothing (caustic soda)
Dehumidifying agent (calcium
chloride and microporous film)

TrainsInterior finishing material(plaster sheet)

LCD televisions (aluminum nitride, polycrystalline silicon,

high-purity chemicals for the electronics manufacturing, photoresist developerand silica for semiconductor encapsulant)(aluminum nitride)

Solar cells

In Your Everyday LifeDVD recorders (aluminum nitride)(polycrystalline silicon)

Toothpaste (precipitated silica)

Window glass(soda ash)Laundry detergent(sodium silicate and soda ash)

Soap (caustic soda)

Residential windows(plastic window sash)

H

o

s

p

i

t

a

l
Paint (isopropyl alcohol and precipitated silica)
Building exterior(building materials and polyvinyl chloride resin)

Wrapping film for foods (polypropylene film)
Cement and concrete

Baby diapers (microporous film)
Toys (polyvinyl chloride resin)
Newspapers (caustic soda)

Personal computers (aluminum nitride, polycrystalline

Sofas (propylene oxide)silicon, high-purity chemicals for the electronics manufacturing,
photoresist developer and silica for semiconductor encapsulant)

Wine (ion exchange membrane)

Keyboards (fumed silica)

ConvenienceStor e

CD/DVD drives (aluminum nitride)
Optical communications (aluminum nitride)
Tires (precipitated silica)
Aluminum wheels

At homeTokuyama’s chemicals help toenrich everyone’s lifestyles.

(caustic soda)

DentalClinicCar navigation systems(aluminum nitride, polycrystalline silicon,
high-purity chemicals for the electronics
manufacturing, photoresist developer and silica
for semiconductor encapsulant)

Dental materials and equipment

Glasses (plastic lens materials for glasses)

Medical gloves (polyvinyl chloride resin)Sports shoes (precipitated silica)

Pharmaceutical products (pharmaceutical

Cellular phones (polycrystalline silicon, high-purity
chemicals for the electronics manufacturing, photoresist
developer and silica for semiconductor encapsulant)

ingredients and sodium bicarbonate)Intravenous bags (polyvinyl chloride resin)

Hybrid cars (aluminum nitride)

Blood testing (diagnostic reagents, clinical analyzers,
and laboratory information systems)

5

Tokuyama CSR Report 2008

Tokuyama CSR Report 20086

Summary of the New Three-Year Management Plan (for fiscal 2008-2010)

The Tokuyama Group’s Centennial Vision is to become “a manufacturing company that creates a brighter future with the vitality ofhuman resources and creativity of chemistry in harmony with society.” All members of the Group will strive to ensure that
the Group develops into this optimum form.

In ten years, on February 16, 2018, Tokuyama will mark the centennial of its establishment.
The basic strategies for the Centennial Vision is to strengthen its strategically growing businesses and international
competitiveness through a process of selection and concentration. We are committed to “Human Resources-based
management” and the “Promotion of CSR activities.” Their purpose is to support the basic strategies.
The new Three-Year Management Plan is seen as a medium-term management plan that serves as the first step
toward achieving the Centennial Vision. In accordance with the basic strategies for the Centennial Vision, thegrowth strategies described below will be implemented.

Growth Strategies under
the New Three-Year Plan

The first step in reform toward
the company’s centennial
Next
Three-Year
Plan

Start ofthe new
Three-Year
Plan
Fiscal 2008

Fiscal 2011

Centennial
VisionThree-Year Plan
after next

Fiscal 2014

Centennial of its establishment
2018

Growth Strategies under
the New Three-Year Plan

Basic Strategies for
the Centennial Vision- Selection and Concentration for Attacking- Creation of New, Globally Competitive Businesses- Strengthening of Competitivenessthrough Productivity Improvement- Strengthening of Strategically Growing
Businesses- Strengthening of International
Competitiveness

Schematic Representation of the Basic Strategies for the Company’s Centennial
Key Concept: Venture Spirit & Innovation

The Optimum Form
A manufacturing company that creates a brighter
future with the vitality of human resources andcreativity of chemistry in harmony with society

Basic Strategies

1. Selection and Concentration for Attacking
The scope of the Tokuyama Group’s businesses encompasses a widearray of products ranging from materials to components. The markets
served by the Group have a multi-polar structure. Through the use of
two criteria, namely international competitiveness and lifecycle, thesebusinesses are classified into four categories – growing materials
business, growing components business, foundation business andindependent component business. In each of the four categories, we willcontinue with a process of selection and concentration to take advantage of the strengths of each business and new business opportunities.

Strength
ening
of Inte ening Strength allyrn
icComp ational of Strateg esses
etitive
usin
ness
ing B
w
o
r
G

Foundations of
the Basic Strategies
Human Resources-based Management
Promotion of CSR Activities

Tokuyama CSR Report 2008

We will position the Tokuyama factory as the mother factory oftechnology and know-how, and link it to the Kashima factory andother plants in the Group and strive to realize an internationallycompetitive manufacturing infrastructure.

Restructuring of the Information Infrastructure

Providing polycrystalline silicon and other materials, the growing
materials business addresses the key challenges of increasing theworldwide market share and reducing the labor required in the
manufacturing processes. To increase competitiveness, we will continue
active investment of our management resources and will expand thescale as needed. We will also study production at optimal new sites.

A new mission-critical system will be put into operation in fiscal
2008. By developing the information infrastructure, we aim to
upgrade our managerial accounting and improve productivity ofthe manufacturing section and the office work section.

Growing Components Business
The growing components business, including fine chemicals, aims
at building a high profit structure through a process of selection andconcentration that are suited to each business characteristics. To reachthis goal, we will step up our marketing activities in close association
with the markets and move to a business model based on solution
proposals. To develop the business, we will also work actively on
collaborations with other companies.

In the foundation business, most production takes place at the
Tokuyama factory. By regarding the entire factory as a unit ofmanufacturing facilities, we will create a system to optimize the use ofenergy and human resources. For this purpose, we will engage in aprocess of selection and concentration with the aim of further
strengthening the Tokuyama factory.

Build Systems for the Growth
Strategies
We will build the systems and organizations that act as foundations
for implementing the basic strategies for the Centennial Vision and thegrowth strategies under the new Three-Year Plan and address thereform of human resources. To achieve these objectives, we will takeup the challenges listed below.

Independent Components Business2. Creation of New, Globally Competitive Businesses
To create a structure that ensures constant earnings into the future,
we will work to establish new profit drivers comparable with the Si
business from the perspective of medium- to long-term growth. We will
focus our efforts on surely bringing development projects that are close
to commercialization into commercial operation and on finding andcultivating new themes of development that are close to existing
strategically growing businesses.
Net 370 billion yen
sales or more

Securing Managerial Resources and Making the Optimum Allocations
We will enhance the system for making the optimum allocation ofmanagerial resources from the perspective of total optimization andpromptly invest managerial resources in growth areas.

Globally Competitive HR Development

A key challenge is to enhance the presence within the TokuyamaGroup while pursuing business continuity and uniqueness. We will
therefore consider cooperation with other companies.

Final Targets under the
New Three-Year Plan

7

Restructuring of the Manufacturing Infrastructure

Growing Materials Business

Foundation BusinessCentennial
Vision3. Strengthening of Competitiveness through Productivity Improvement
We will restructure both our manufacturing infrastructure andinformation infrastructure to boost our competitiveness throughimproved productivity.

Summary of the New Three-Year Management Plan

Position of the New Three-Year Plan

Ratio of operating 12% orincome to sales higher

We will systematically develop human resources that play a key rolefrom a global perspective with a view to overseas expansion.

Strengthening Corporate GovernanceTo establish governance that facilitates an immediate response to theexternal environment, we will consider introducing a system forexternal directors and operating officers.

Full Utilization of the Balanced Scorecard
We will work to establish the balanced scorecard as a mechanism
for running the PDCA cycle and to strengthen the functions for
implementing the strategies.

Overseas 22% orsales ratio higher

Operating income before 14 million yen
depreciation per employee or more

Tokuyama CSR Report 2008

8

Topic2005-2008

Spirit & Innovation

Period of “Venture
Spirit & Innovation”

In February 1918, the predecessor to Tokuyama Corporation was established in Shunan City in
Yamaguchi Prefecture. Having worked on innovations since that time, it marked its 90th anniversary thisyear. Its history represents a process of evolution for Tokuyama that is synchronized with changes inJapan and the rest of the world.

the petrochemicals business

1973: Following the
mercury contamination
scandal, the process ofmanufacturing caustic
soda is changed from theprocess using mercury to
the diaphragm process.

Founder: Katsujiro Iwai
Born in the Tamba region in 1863.
In 1875, he joined Iwai Bunsuke &Company as an apprentice.

Feb. 16, 1918:
Nihon Soda Kogyo Co., Ltd.
established

Period of growth for the specialty
and processing businesses

Operations on two fronts are launched.
Integration of businesses, spin-off,upgrades and restructuring
Development and strengthening of
new businesses

1974: Companywide
efforts are made to
reduce energy
consumption in
the factory.

Period of growth for the
inorganic chemicals business

Establishment and soda production

Business strengthening
and restructuring

1955-1964:
The petrochemicals
business is expanded.

1980: The long-awaited
Fujisawa Research Laboratory
reaches completion.

Corporation

1938: The cement
A precursor tobusiness is launched. environmental management

1916: Iwai Chemical
Experimental Factorybuilt at Kanzaki,
Osaka

April 1994: The Company
name changes from
Tokuyama Soda Co., Ltd.
to Tokuyama Corporation.

1985: Construction of theKashima factory finishes.
1910

1920

1930

1940

1950

1960

1970

1980

In the wake of the oil shock, fuel for the
power generation facilities and cement
factories was successively shifted fromheavy oil to coal. In addition to the threefoundation businesses, namely chemicals,
cement and plastic resins, the Company
made a decision to invest all management
resources in creating the specialty andprocessing businesses as a fourth pillar
that was relatively impervious to thevicissitudes of the oil market.
A factory was constructed in Tokuyama-cho in
Yamaguchi Prefecture. This location provided
advantages concerning the import of industrial
salt. This marks the forerunner of the company
later renamed Tokuyama Soda Co., Ltd., andsubsequently Tokuyama Corporation.
Soda ash is a product that Tokuyama has
handled since its establishment.
Determined to domesticate production of
soda ash, the Company worked to establish
manufacturing technology based on the
Solvay process, which was state-of-the-art
technology in those days.

9

Tokuyama CSR Report 2008

Centering on the initial product, namely
soda ash, the Company commercialized
gypsum, magnesium carbonate, calcium
chloride and sodium silicate. The
Company overcame the crisis ofcorporate dissolution after the effects ofWorld War II. It commercialized anumber of inorganic chemicals that werekeenly sought by Japanese industry atthat time, such as ammonium chloride
fertilizer, electrolytic caustic soda andwhite carbon.

1990

1989: Tsukuba ResearchLaboratory is inaugurated
as a new base for thedevelopment of new
businesses.

Commercialization in the growth phase of thespecialty and processing businesses
The Company put into
commercial production
propylene oxide, polyvinyl
chloride, chlorinatedsolvents, polypropylene,
isopropyl alcohol andsuchlike.

A succession of businesses that support
Tokuyama’s current revenues were launched,including biaxial-oriented film, dental materials
and equipment, plastic window sashes, finechemicals, high-purity chemicals for theelectronics manufacturing, polycrystalline
silicon, fumed silica, aluminum nitride, medical
diagnosis systems and gas sensors.

2000

October 2007: A full-scale
overseas chemical plant,
Tokuyama Chemicals(Zhejiang) Co., Ltd.,is inaugurated in China.

Tokuyama CSR Report 2008

Topic

1918-1944

Period of growth for

1975-1989

Tokuyama’s 90-Year History – Venture Spirit and Innovation

1945-1959

1960 -1974

1990-2004
TAKE OFF –Moving forward toward the Company’s Centennial–

Tokuyama’s 90-Year History – Venture

10TopicAn Ever-Evolving Integrated Production Basewith the Full Use of Resources – Tokuyama factory

Undersea tunnel
JR Tokuyama Station

Continuous Efforts Toward Integration
At the heart of the integration of the Tokuyama factory is its
private power plant that features one of the largest power
generation capacities in Japan, namely 552,000 kW. The electric
power and steam generated are supplied through power lines andpipes to the electrolysis plant and other plants. The factory makes
effective use of the steam as well as electric power to attain a highlevel of energy efficiency.

The Tokuyama factory is located in the Shunan Industrial
Complex fronting the Seto Inland Sea in the south-eastern part of
Yamaguchi Prefecture. As one of the largest factories in Japan,
occupying 1.91 million square meters, it is Tokuyama’s coreproduction center. It consists of three plants – the Tokuyama plantchiefly for manufacturing inorganic chemicals, the Nanyo plant for
manufacturing cement and the Higashi plant for polycrystalline
silicon and organic chemicals. These three plants are interlinked byour private undersea tunnel and bridge. The factory also has awell-developed port infrastructure that incorporates 22 internal
berths with a depth of 12 meters and one 14-meter-deep public
wharf.

Giving Form to an Unprecedented Level ofIntegration
Since its inauguration in 1918, the factory has been aspiring tobecome an integrated production base in which different
businesses are closely interlinked via energy, materials andtechnologies. Plants that manufacture inorganic and organic
chemicals, cement, electronic materials and other products are
deployed in a strategically integrated manner. They form a highly
integrated structure that enables the effective mutual use of raw
materials, products, by-products, waste and utilities.
The factory has been making a determined effort concerning
the recycling of by-products and waste generated from within. In
fiscal 2007, it effectively utilized 94.2% of waste and achieved azero emission rate of 99.9%.

A private power plant featuring one of the largest
power generation capacities in Japan

Integration in the Tokuyama Factory
Sun-Tox Co., Ltd.

Shunan Industrial
Complex

C2´

C3´

O2

N2

Tokuyama Polypropylene Co., Ltd.
IPA

EDC
Cl2

Sodiumsilicate

Yamaguchi Eco-tech Corporation

Silicastone

400
Fumed silica

300

401

406

420

425

430

Coal

ReusedFuels (thermal recycling):
80,000 metric tons

Sludge, surplus soil, dehydrated

Waste plastics2) (excluding
polyvinyl chloride), heavy oil ash,discarded tires, animal residue,
wood waste and liquid waste

cake of refuse incineration ash1),
coal ash, waste liquid and slag

1) The factory accepted incineration ash generated from municipal refuse incineration
facilities in Yamaguchi Prefecture after pretreatment by Yamaguchi Eco-tech Corporation,a joint venture consisting of the Company and Ube Industries, Ltd.
2) A technology for stably injecting a large amount of crushed waste plastics from theupper part of the kiln was developed. The crushing and combustion capacity increases
each year to meet the growing demand to accept such waste.

Trend in Material and Thermal Recycling Volumes(thousand metric tons)

1,962

2,000

2,004

2,143

2,144

125
2,100
100

1,550
80

85
85

82
82

70

1991

2003

2004

2005

2006

2007

(Fiscal year)

75

70

1,000

200

0

Raw materials (material recycling):
2.10 million metric tons

1,500

277

100
LimestoneNo
residue

2,500

Metallic
siliconShunan Industrial Complex

CementProduct
Postcombustion
ash

50

500

25
4

0

1991

2003

2004

2005

2006

2007

Thermal recycling volume

Power generation
facilities(The figures represent the relevant values for fiscal 2007.)(thousand metric tons)

500

Polycrystalline silicon

Soda ash
Waste

Trend in Unit Consumption of Waste and By-products(kilogram per metric ton of cement)

H2

Waste

Process Flow for the Recycling of Waste andBy-products in Cement Production

The cement plant constitutes another core of the integration in
the Tokuyama factory. As raw materials, it makes effective use of
by-products from the Company’s soda ash plant and coal ash
from private power plants. It also accepts a large amount of waste
and by-products from outside the Company and conducts
recycling operations that are open to society. A large portion of
the waste and by-products can be used as raw materials for
cement production as it contains some elements that are identicalto those contained in limestone, clay and silica stone, which areused as raw materials for cement. Combustible waste can also be
used as an energy source. The temperature in the cement kiln*1
reaches 1,000 to 1,800 degrees Celsius, a temperature is so highthat the combustible portion is completely burnt and theremaining ash after combustion is used as an ingredient forcement. This means that the cement kiln differs from an
incinerator in that it generates no residue. In fiscal 2007, thefactory recycled 2.18 million metric tons of waste andby-products, including 0.32 million metric tons generated within
the Company.
With a view to creating a recycling society, the Tokuyama
factory is making continuous efforts every day to improve itself
into a more advanced production center.

Shin Dai-ichi Vinyl Corporation

ChlorideElectrolysis

Recycling Open to Society – Active Acceptance of External Waste

Material recycling volume

Industrial
salt

VCM

Chloromethane

NaOH

Nanyo Plant

Shunan Industrial Complex

PO

Aluminum nitride
Tokuyama Siltech Co., Ltd.

Tokuyama Plant

A Highly Efficient Energy System Based on
Private Power Generation

Topic

Superiority in Infrastructure that Supports
a Leading Production BaseAn Ever-Evolving Integrated Production Base with the Full Use of Resources – Tokuyama factory

The Tokuyama factory is Tokuyama’s leading production facilities. Equipped with one of Japan’s largest private
power generation facilities, it represents the sophisticated integration of every manufacturing process. Using a highly
efficient production structure, it has achieved a zero emission rate of nearly 100%. Tokuyama is making every
effort to build a sustainable society. For example, its cement business actively accepts waste from outside the Company.

Higashi Plant

0(Fiscal year)

Terminology *1 Cement kiln: A rotary kiln used for sintering raw materials in the cement plant

11

Tokuyama CSR Report 2008

Tokuyama CSR Report 200812

Be honest enough to stand proud like a sunflower facing the sun.
Based on this notion, all the officers and employees at Tokuyama
devote themselves to their CSR activities every day.

Tokuyama’s CSR Activities

What Are Tokuyama’s
CSR Activities?

The Tokuyama Group has a basic management policy of practicing
management in harmony with society so as to coexist with society andthereby establish itself as a corporate group whose members are theenterprises of first choice by their customers.

Tokuyama’s CSR Approach

Basic Policy

Message

Management inspired by denial

essentially operate on the same principle as CSR
activities to the present.
The roles that enterprises are required to playconstantly vary with changes in the circumstances.
The nature of corporate activities should always
be questioned in terms of its relationship withsociety. In response to the change, Tokuyama willconsistently be seeking the sustainable growth ofbusiness and society from a long-term perspective.

Management from a future perspective

The Tokuyama Group
that continues to bepreferred by customers

Take a long-term perspective
Take advantage of the risks

Implementation of CSR activities
Management in harmony with society
Build good relationships
with various stakeholders

Think and act from thecustomers’ standpoint
Anticipate the trend of the times

CSR foundation
Management with an emphasis on personality

Internal control (Sunflower Activities)
Corporate governance
Strengthen the compliance system
Implement Responsible Care (RC) activities

Aim to be a unique company

The Philosophy behind CSR Activities
Tokuyama carries out CSR activities inaccordance with its basic policy of engaging inmanagement in harmony with society.
Understanding that they will help ensure
continuation of the business and establish asustainable future together with society, we are
striving to attain better marks from our stakeholders
and to earn the recognition and appreciation ofsociety, to which the stakeholders belong.
As a foundation for CSR activities, we willcontinue with sound corporate governance andcompliance to increase management transparency
and ensure thorough internal control and risk
management.
The Tokuyama Group is engaged in what it
called the Sunflower Activities. They refer toactivities aimed at ensuring that the essential factorsof internal control become permanently establishedwithin the Group.
In accordance with the Tokuyama Code of
Behavior, we will work to ensure good relations
with all stakeholders and engage in management inharmony with society in a bid to develop into a
Tokuyama Group whose members are theenterprises of first choice by their customers.

13

Tokuyama CSR Report 2008

Cultivate the personalities ofindividual employees

Tokuyama Code of Behavior
Fair Business Operations
We will compete with rival companies in a fair, transparent and liberal manner.
We will maintain strong, regular relationships with politicians and administrative organizations.
Compliance
We will comply with the laws, regulations and rules. We will remain resolute in ourdealings with antisocial groups that threaten the order and security of civilized society.
Responsible Care
- We will develop and manufacture products that are safe and that serve a valid use insociety and make them available to members of society to gain the confidence of ourconsumers and customers.
- Of our own volition, we will actively engage in addressing global environmental issues,
the recycling of resources and other activities directed at environmental conservation
for a wide-ranging perspective.
Communications
We will enhance communications with the various stakeholders in society, including ourshareholders, through the proactive and fair disclosure of information.
Social Contributions- We will make a positive social contribution in as a good corporate citizen.
- In our dealings in foreign countries, we will respect local cultures and customs andconduct our business operations in a manner that contributes to the development oflocal communities.
Solid Corporate Culture
We will strive to create a safe, uninhibited and comfortable work environment in which our
employees can achieve mental and physical well-being, where the personality andindividual characteristics of each employee are respected.
Roles of Management
Management is required to understand that its role is to comply with the philosophy
underlying this Code of Behavior, to take the initiative, to make an effort to improve theinternal system to collect internal and external opinions and to ensure strict compliancewith corporate ethics.
If a situation arises in which any of the provisions of this Code of Behavior are violated,management must immediately make public the relevant information in an appropriatemanner and be accountable. In this case, management must investigate the causes of theviolation, identify the people involved, adopt countermeasures to prevent any recurrence
and impose disciplinary actions on the people involved, including themselves.

Tokuyama’s CSR Activities

Tokuyama celebrated the 90th anniversary of its
establishment. Throughout its history, the Company
has always been aspiring to gain the trust andrespect of society. In 1994, we adopted a basic
policy of practicing management in harmony withsociety. The following year, we built a framework for
conducting responsible care activities and since
Etsuro Matsui
then, we have been enhancing the activities throughManaging Director
PDCA. Although the term CSR is relatively new, we
General Manager
Corporate Social Responsibility Div. have been constantly engaged in activities that

Continue with reform every day

What Are Tokuyama’s CSR Activities?

For sustainable growth of the business and society

Increase
corporate
value

Overcome the stereotype andbreak free of precedents

Tokuyama Code of Behavior

Tokuyama’s Major Stakeholders
Tokuyama conducts customer-focused quality
assurance activities based on implementation of
its ISO 9001-compliant quality management
system. Chemical substances arecomprehensively managed to ensure safety at allstages of the manufacturing process.

Society

Customers

Tokuyama conducts environmentally friendly
management operations with an emphasis on theenvironmental perspective in every aspects of its
business activities.

Globalenvironment

Harmony withthe environment (p. 33)

Relationships with customers (p. 21)
Tokuyama strives to improve the work
environment so that every individual employee
can exhibit their abilities and perform their duties
actively and with a high level of motivation. In
fiscal 2007, we focused on the development of
human resources, including the full-scale
operation of the Technical Education and Training
Center, and on more active initiatives to enhancemental and physical health.

Employees

Tokuyama

Relationships with
Communities and Society (p.24)

Relationships with employees (p. 27)
Tokuyama is committed to creating relationshipsof trust with all trading partners through honest
business dealings. Tokuyama is also committed tocomplying with CSR in its purchasing activities.

Relationships withtrading partners (p. 29)

Communities
and society

Tokuyama is engaged in many different activities
directed at making a contribution to society. They
include financial support for scientific development
and technology and support for the healthy growthof children. We are also working on communication
with local communities by providing opportunities
for local RC dialogs.

Trading
partners

Shareholders

Tokuyama offers information in a prompt andappropriate manner to gain the understanding andtrust of shareholders and investors.

Relationships with Shareholders (p. 29)

Tokuyama CSR Report 200814

Tokuyama’s CSR Activities

Corporate Governancedecision-making. The Executive Committee consists of the headsof four business divisions and those nominated by the president
from the directors and associate directors.
The Board of Auditors currently has four members, including
two external auditors. Each auditor attends the meetings of theBoard of Directors and other key meetings and exchanges
information with the internal audit section and accounting
auditors as needed in a bid to increase the effectiveness andefficiency of auditing. Standing auditors also join the Executive
Committee and provide opinions for maintaining a system formonitoring the general manner in which the directors discharge
their managerial duties.
The Auditing Department is an internal auditing body that is
independent of divisions engaged in business operations, andcurrently consists of six members. It performs regular internal
audits of different divisions and affiliated companies in theGroup.

The system of corporate governance is very important insuccessfully improving corporate value. We believe that we needto conduct everyday inspections and take the necessary steps toensure solid, ongoing operations. The Board of Directors meets atleast once a month to make resolutions on the basic policy andstrategy for management of the group, to discuss and decide
important matters concerning the manner in which business isconducted and to supervise business operations. As of the end ofJune 2008, the Board of Directors consists of 14 directors and ischaired by the president.
A director’s term of office is one year. The purpose is to clarify
his or her duties and responsibilities and to respond immediately
to changes in the business environment.
The Executive Committee is an advisory body to the president
for deliberating matters to be referred to the Board of Directors
and other critical managerial matters. It was set up to ensureagility and efficiency in business operations as well as quick

Shareholders’ Meeting
Appointments
and dismissals

Appointments
and dismissals
ReportingBoard of Directors
Decisions andsupervision

Board of Auditors
Auditing

Auditors

Business
operations

Appointments
and dismissals

Accounting Auditors
Collaboration

Executive Committee
Strategy Committee
Human Resources Committee

President

Sunflower Committee
RC Management Dept.
Auditing Department

RC
audit

Instructions and theraising of awarenessInternal
audit

Business divisions, back office divisions, research laboratories, factories and Group companies

15

Tokuyama CSR Report 2008

Accounting
audit

Auditing

Instructions
and the raisingof awareness

The Tokuyama Group is using the term Sunflower Activities
selected from the suggestions submitted by staff members in theGroup in order to create and continuously enhance the internal
control system and to ensure that the activities will be
implemented over a long period of time. This name represents
the attitude and determination of the officers and employees in
the Group to perform their duties by remaining cognizant of thefact that they should always behave in a manner that enables
them to stand proud.
The Sunflower Committee has been established as the body topromote the Sunflower Activities of the Tokuyama Group.
Headed by the president, this committee discusses and makes

decisions on basic matters that relate tointernal control, and it strives to create,develop and work under a framework
for ensuring that business operations are
conducted appropriately. The Corporate
Social Responsibility Division acts as an
office for the Sunflower Committee andis responsible for the practicalimplementation of the Sunflower
Activities. It also ensures compliance with the reporting system
for internal control that came into force in April 2008, better
known as the Japanese version of the SOX Act.

Compliance
The Tokuyama Group has adopted a basic management policyof placing an emphasis on compliance, and has included in its
code of behavior fair business activities and statutorycompliance. To improve the compliance framework, theCompany expanded the use of the helpline in fiscal 2007 after
enlarging it in the preceding fiscal year.

Tokuyama’s Compliance Vision
Stakeholders

Improvement of the compliance system

Socialresponsibility

The Tokuyama Code of Behavior was revised in July 2003. In
March 2004, the Tokuyama Behavioral Guidelines wasestablished and its copies were distributed to all employees. They
always carry a card printed with Tokuyama’s Five Conscience
Clauses prescribed in the Guidelines and act with an awarenessof compliance.

Structure for promoting complianceCorporate Governance Structure

Compliance Committee

Internal Control

Headed by the president, the Compliance Committee makes
decisions on the basic concepts, companywide policies,
structures and organizations related to compliance. The office for
the Compliance Committee plays a central role in theimplementation of activities for promoting compliance.

Launch and enhancement of the helpline
As part of its improvement of the compliance structure,
Tokuyama launched a helpline as a contact for consultation in
October 2003. It has since been dealing with information andinquiries from officers and employees in the Group. In fiscal
2006, the scope of access to the helpline was expanded toaccept notifications and consultations from trading partners. In
fiscal 2007, the coverage of the helpline was further expanded aspart of the ongoing system upgrades. It is now possible for thefamily members of employees to contact the helpline to report orseek advice.
We continue to develop and enhance the helpline system. For
example, an external contact for consultation has been
established in addition to the existing helpline.

Tokuyama’s CSR Activities- Being a Trusted Company

The Company’s social mission is to develop, manufacture and supply tosociety useful products as a manufacturer with full consideration given tosafety and the environment. We have adopted the basic principle of practicing
management in harmony with society. For the Tokuyama Group to follow thisbasic principle and evolve into a business grouping whose members are theenterprises of first choice by their customers and to meet its corporate social
responsibility, we believe that it is essential to continuously work to enhance
corporate governance, to construct and improve the internal control systemand to develop a framework of compliance.

Corporate activities
Compliance

The Foundation of CSR

The Foundation of CSR

Open corporate culture

Outline of the Compliance System
Informers and advice seekers
ReportingInformation and inquiries

Helpline

Auditing Department
Instructions
Contact(Board of)
Auditors

Contact

Compliance
Committee

Reporting
ReportingInstructions

Board ofDirectors

Tokuyama’s Five Conscience Clauses
Tokuyama’s Five Conscience Clauses
Our behavior shall
1 Comply with the laws, regulations and internal rules,
2 Meet the Tokuyama Code of Behavior and the Tokuyama
Behavioral Guidelines,
3 Be highly regarded by customers and trading partners,
4 Receive high marks from society and general consumers, and
5 Be of a standard that can be spoken of with pride in frontof family members and coworkers.

Tokuyama CSR Report 200816

Tokuyama’s CSR Activities

Maintaining and Improving Information Security
Tokuyama continues to actively introduce information
technology as one of the drivers of business reform. We
recognize that information security is of increasing importance as
we become more dependent on networks in a society that has
ever greater reliance on the Internet, and we have been taking
steps to use and protect information properly.
In 2001, our top management at that time declared thatvoluntary information security initiatives would be taken with theparticipation of all employees. The fact that we set up theInformation Security Committee in accordance with thisdeclaration is testament to our level of awareness of this issue.
The Committee has a mandate to develop and implement acomprehensive range of specific steps.
The Information Security Committee was launched with theobjectives of maintaining the security of information assets
consisting of information and information systems owned by theCompany, and encouraging the active use of these assets. It takes
the initiative in developing comprehensive security measures for
information assets into Information Security Policies. It also
makes decisions on basic policies on overall matters relating to
information security and strives to increase awareness.
Tokuyama’s individual departments separately engage in
specific initiatives in accordance with the policy set out by the

Information Security Committee
Information Security Audit Group
System Control Manager
Information Security Secretariat

Company-wide
management

Information Security Management Structure

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

Information Security Manager
General Manager

Information Security Staff
Manager or Assistant Manager

System Staff
Personnel in charge of departmental
systems

17

Tokuyama CSR Report 2008

Departmental Management

Information Security Management Officer

Committee and with the companywide rules set out in the
Information Security Policies that came into effect in March
2002. Group companies create rules based on the Information
Security Policies. The Tokuyama Group is united in its
commitment to improving security levels.
In addition, we have been developing hardware and software
measures to prevent the spread of viruses that accompany thegrowing use of Internet technologies. We strictly forbid the act of
opening any medium brought into the Company on a computerconnected to the network, without first performing a virus checkon that medium. We also have filtering in place to block accessto any website that is not related to work. As a result of these
protocols, no serious virus infections have been experienced overthe past several years. Every employee is aware that the task ofeliminating a virus infection will bring business activities to a
standstill and that there would be a serious impact on customer
satisfaction. We are proud that the effectiveness of the security
measures is supported by this sense of crisis and by ourcustomer-oriented commitment. In the Internet age, however, it is
impossible to attain absolute or permanent security. We will
diligently continue with our efforts without placing undue
confidence in the existing measures.

Furthering the Protection of Personal
Information
Tokuyama regards the protection of personal information as asymbol of the Company’s spirit of valuing individuals and as a
key obligation in meeting its social responsibility. Based on thiscommitment, Tokuyama has created a structure for enhancing
the level protection. With the enactment of the Personal
Information Protection Law in April 2005, we published our
Personal Information Protection Policy on the Company’s
website. We also established the Personal Information Protection
Promotion Committee and its office, and the section to contact
for inquiries from people inside and outside the Company. The
head of the Committee has been appointed general manager inthis area.
The promotion structure extends to every part of theCompany. At each department, a Personal Information Protection
Management Officer is appointed to ensure the soundmanagement and operation of personal information and to raiseawareness among all employees. We also conduct awarenessraising activities, such as Intranet-based education, and regularinspection tours and audits of workplaces to ensure that all ourofficers and employees are continually paying attention to theimportance of personal information in their activities.

RC Promotion Structure andOperation of Management Systems

Tokuyama’s CSR activities center on Responsible Care (RC)
activities. A companywide promotion structure has beencreated to soundly operate different management systems.
In this way we are continually improving our environmental,
safety, production safety and quality management systems.

RC Promotion System
Chaired by the President and consisting of the Board of
Directors, the RC Administration Committee is Tokuyama’s top
decision-making body in relation to its RC activities. It deliberates
and approves companywide policies and other environmental,
safety and quality measures. Under this Committee, there are anumber of subordinate bodies, including the Environmental
Measures Committee, the Safety Measures Committee, theProducts Safety and Quality Assurance Committee and theProducts Assessment Committee. They study specific actionplans and conduct product safety assessments. The Directors
responsible for environmental, safety and quality mattersthroughout the whole company work as the leaders of thesecommittees, with the members consisting of the Heads of the
management divisions.
RC activities: Responsible Care refers to the voluntary management

activities of companies that manufacture and handle chemical substances toprotect the environment and maintain the safety and health of members of
the public and employees in all processes covering the development,
manufacturing, distribution, use, final consumption and disposal of chemical
substances. RC also refers to publishing the results of the activities andengaging in dialogs and communication with society. RC originated in
Canada in 1985, and it is now in place in 52 countries around the world. In
Japan, the Japan Responsible Care Council (JRCC) was established in 1995
within the Japan Chemical Industry Association (JCIA). It had 101 corporate
members as of April 1, 2008, Tokuyama being one of the founding members.
We actively work on RC activities as the basis of our environmental
management and CSR activities.

Basic Philosophyof Responsible Care

RC Promotion System
RC Administration Committee
Assessment Function

Decision-Making Function

Production Assessment
Committee (Labeling
Assessment Subcommittee)

Environmental Measures
Committee
Safety Measures Committee

Safety and Environmental
Assessment Subcommittee

Product Safety and Quality
Assurance Committee

RC Research Laboratory(support organization)

Responsible CareManagement Department (office)Checks safety of chemicals andassesses their environmental
impacts using simulations.
Environmental measurements,
work environment measurements
and ultra-trace analyses ofcontrolled substances andchemical pollutants are also
carried out.

Promotes RC activities throughout theCompany and its group companies
covering areas of the environment,
safety and quality.

Tokuyama’s CSR Activities- Being a Trusted Company

In modern society, information can be a powerful tool, but it is now necessary
to also see it as a threat that may undermine corporate survival if it ismishandled. With a clear understanding of this threat and the risk, we aim to
implement security measures using the optimum balance of confidentiality,
integrity and convenience.

RC Promotion Structure and Operation of Management Systems

The Foundation of CSR

Action Objectives
Promote environmental protection
Implement an ISO14001-based Environmental Management System and reducethe burden on the environment.

Observe the laws and regulations

Basic Policy
As a member of the Japan Responsible
Care Council, Tokuyama Corporation
carries out Responsible Care activities that
protect the environment and preserve safety
and health throughout the entire chemical
substance life cycle, from development andmanufacturing to distribution, use, final
consumption and disposal.
Our social mission is to aggressively
tackle and systematically solve
environmental issues in particular, which, inturn, will lead to sustainable corporate andsocial development. Based on thisrecognition, we are promoting
Environmental Management, a management
policy that emphasizes the environment, inall of our business activities, including
development, manufacturing and sales.

Observe international rules, local laws and regulations and industrial standards.
Thoroughly implement internal export control rules.

Promote energy conservation and curb global warming
Achieve the lowest unit energy consumption in the industry for each product.

Promote resource recycling and work toward reduction
and the proper management of waste materials
Promote material recycling and the thermal recycling of resources.
Work toward achieving a paperless office.

Promote process safety, disaster prevention and occupational health and safety
Aim for zero accidents and disasters based on the principles of safety
self-management and self-responsibility.
Achieve a comfortable work environment and protect people’s safety and health.

Ensure strict product safety standards
Offer environmentally friendly products that can be used with safety.
Provide clear information on how to use products and what care to take.

Deepen the relationship of trust with society
Publicly disclose information on the Company’s activities concerning environmental
protection, process safety, occupational health and safety and chemical product safety.
Actively engage in dialogue with the local communities.

Tokuyama CSR Report 200818

Tokuyama’s CSR Activities

RC Activity Goals

Environmental Impact Reduction Goals

Environmental Management Plan

Environmental Management Activities

Medium-Term
Environmental Plan

ISO 14001 Environmental
Management System
Safety and Environment
Assessment System
RC Inspection and Auditing System

Assessment of Activities

Environmental Accounting
Environmental Performance

Operation of Management Systems
ISO 14001 Environmental Management System
The Tokuyama and Kashima Factories have already acquired
ISO 14001 certification. ISO 14001 is an international standard
for environmental management systems. In line with thecompany-wide environmental policy, each factory sets out anenvironmental policy and the specific goals to be achieved inareas covering environmental impact reduction, energy
conservation, waste reduction and resource recycling.
At company headquarters, branch offices and researchlaboratories, activities are underway based on their respective
policies and goals set out in response to their scales, covering
energy conservation, waste reduction, resource recycling andother activities.

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

Product Assessment and Labeling Assessment
To ensure product safety, Tokuyama conducts a product safetyassessment at each stage from research and development toproduct delivery to the market. We assess the risk evaluation andexamine compliance with the statutory requirements from a wide
range of perspectives, including the safety of the chemical
substances involved, the environmental impact and the effect onhuman health. We also assess the labeling to ensure that the
product information in catalogs, operation manuals, material safety
data sheets (MSDSs)*1 and other types of labeling contain no
defects in relation to the instructions and/or warnings and that
there are no inappropriate expressions.

management, safety management, occupational health and safety
and quality management are offered through actual management
activities.

VOICE
Under the slogan of conducting more stringent
auditing than that conducted by externalorganizations

Toshiyuki TamanoInternal Auditor
Manager
CF-10 Dept.
Research &Development Div.
Examination for maintenance of the ISO 9001 certification at the Tokuyama
Factory on April 16-18, 2008

In the internal auditing concerning quality
ISO 9001, we carefully scrutinize the key audit
items determined for the year as well as thestatus of other management activities incompliance with the ISO requirements. In
auditing our own operations, we face several
difficulties. For example, we are tempted to givea positive rating when it is difficult to determine
whether an ISO requirement has been satisfied.
If we include any negative remarks, the parties
being audited may experience feelings ofrejection. However, we conduct the audit under
the slogan of making the internal audits morestrict than auditing performed by externalorganizations. The auditors work hard in thehope that our internal auditing will help improve
our level of compliance with the ISO standard.

Fiscal 2007 RC Activities – Priority Issues and Performance
Segment

Priority issues

Performance

Related pages- Review by top management- RC Administration Committee- Safety and Environment Audit- Reduction in environmental impact(air, water quality, etc.)- Reduction in the emission of PRTR
substances and hazardous air pollutants- Decrease in unit energy consumption- Promotion of zero-emission activities- Promotion of green purchases- Reduction of the emission of SOx, NOx, soot, dust, etc.
- Promotion of energy conservation- Facilitation of the use of waste as raw cement materials
and fuels- Green procurement of office supplies and lighting equipment- Unfailing operation of the environmental management system- Elimination of accidents- Promotion of risk management- Promotion of independent safety
management- Sound operation of the safety management system- Renewal of the license for two-year continuous operation ofboilers and Type I pressure vessels- Safety education and auditing of the providers of contracted
logistics

Occupational healthand safety- Elimination of disasters- Efforts to prolong the disaster-free period- Promotion of risk assessment

Chemical product safety- Securing of product safety

Environmental conservation- Environmental impact
reduction- Energy conservation- Waste recycling

Process safety

Cultivation of a relationshipof trust with society andthe local communities

Education and Training

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

Third Party Auditing
Tokuyama undergoes ISO 9001 and ISO 14001 examinations
conducted by accreditation organizations.

Management

Tokuyama has set up several assessment systems in an effort to reduce environmental and safety risks.

Employee education and training covering the responsible
care activities are provided for each separate hierarchical group.
Practical education and training in relation to environmental

Safety and Environment Audit
Tokuyama conducts this audit for the operation safety andenvironment on a yearly basis to verify the appropriateness of its
accident/disaster prevention measures and management activities
in relation to environmental conservation. The auditing team isheaded by the director, who chairs the Environmental and Safety
Measures Committee, and conducts audits of all factories andoffices, authorized inspection organizations under the High
Pressure Gas Safety Law, logistics departments and the HealthManagement Center. The results of the audits are developed into
reports and distributed to all departments concerned. The results
are also presented to the president.

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

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

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

Tokuyama’s CSR Activities

Evaluation and Management System for
RC Activities (Environmental Preservation)

Incorporation into the following
year’s goals and plans

Tokuyama adopts a three-year plan in the area of responsible
care and determines its policies and targets for separate fiscal
years to achieving the plan. Under these policies, the individual
divisions create specific plans and engage in their activities. The
results of the activities are assessed at the end of the fiscal year
so that the plans for the following fiscal year will reflect thefindings.
Fiscal year 2007 was the final fiscal year of the previous
three-year plan. After conducting a review to identify thecontinuous improvements achieved and the problems
encountered, the Company formulated a new Three-Year Plan
starting in fiscal 2008 and has embarked on the activities it
included.

Auditing Systems

RC Promotion Structure and Operation of Management Systems

Evaluation and Management System for RC Activities

Promotion of RC programs
targeting group companies

P18~20P29
P18~20P30~32
P30~32
P23
P30~32- Implementation of product assessment and labelingassessment- MSDS preparation and research for new materials- Participation in community activities - Participation in community volunteer activities- Harmonious coexistence with society - Dialog meetings on RC activities with local communities(on a community-by-community and factory-by-factory or
and the local communities
office-by-office basis)- Organization of factory tours- Dissemination of RC activities

P37
P35
P11~12- Safety and environmental inspection- Encouragement of ISO certification acquisition- Sharing of RC-related information

P21~22

P24~26

P43~44

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

19

Tokuyama CSR Report 2008

Tokuyama CSR Report 200820

Tokuyama is committed to building good relationships with all stakeholders,to achieving business management in harmony with society and to engaging
in advanced CSR activities to pursue growth together with society.

Harmony with Society

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

As a company that is dedicated to its customers and that isalways preferred by customers, Tokuyama places first priority on
supplying customers with premium-grade products and services
to meet their needs and to reassure them about their use.
We engage in quality management and quality assurance
activities under the ISO 9001 quality management system. The

system covers the entire Company, including branch offices, sales
personnel and research groups, thereby ensuring a quick
response to customers’ complaints and requests in every case.
The information on complaints and requests is classified bydivision and stored on the groupware portal so that it can beshared.

Comprehensive Safety Management of Chemicals
Data Acquisition and Analysis on the Safety of Chemical
Substances
Tokuyama collects and organizes safety data coveringchemical substances so that the safety of the chemicals can beassessed. The data collected and organized is used to provide
safety data on products and waste.
We are working to gain information on the hazards andtoxicity of all chemical substances to be newly used,
manufactured and discarded by means of product assessment,
waste surveys and the analyses of new materials.
Risk Assessment and the Management of Chemicals
To eliminate any pollution to the environment, we monitor theconcentration of chemicals in effluents and gas emissions.
In addition, we simulate the distribution of the concentrationof chemicals and analyze in detail their behavior. Their risks areevaluated after combining the data on concentration and thesafety data. The resulting assessment data are used to improveequipment safety measures and the manner of handlingchemicals as well as for the education of those who deal withchemicals. They also serve to increase product safety and toprovide customers with accurate information.
Compliance with GHS
The Globally Harmonized System of Classification andLabelling of Chemicals (GHS)*1 refers to a system promoted by
the United Nations under which chemicals are sorted by the typeand level of hazard and toxicity in accordance withinternationally standardized rules to provide labels and safety
data sheets that can be understood at a glance.
In fiscal 2007, the promotion of GHS was defined as a quality
management goal. We work to provide GHS-compliant labelingand MSDS by classifying according to GHS the chemicals that fallunder the expanded scope of the three laws specified below.
Chemicals that are subject to the three laws refer to thepoisonous and deleterious substances controlled by the

Poisonous and Deleterious Substances Control Law, thosesubject to notification under the Industrial Safety and Health Law
and designated substances under the Law Concerning Reporting,etc. of the Release of Specific Chemical Substances to theEnvironment and Promotion of the Improvement of Their
Management.
Assessment of Products and Labeling
Tokuyama assesses the safety of both the chemicals andequipment units that it manufactures, in every stage fromresearch and development through to commercialization. We
made 56 assessments of this kind in fiscal 2007.
We also conduct labeling assessments for our catalogues,
MSDSs and other technical documents. The appropriateness andlegality of the representations on product labeling and packaging,prototypes and sample products are examined and any
inappropriate representations are corrected.
In fiscal 2007, we conducted 315 labeling assessments.

Process Flow in the Assessment Structure for
Ensuring Safety and Environmental Conservation
Assessment
Stages

Product Assessment

Commencementof Research

Development groupleaders and others(primary assessment)

Tokuyama CSR Report 2008

Labeling
Assessment

In step with its technological orientation, the Tokuyama Group iscommitted to protecting public health and safety and to protecting
the environment as a global enterprise that contributes to society.
As part of its responsible care activities, the IC Chemicals
Department embarked on actively providing users with guidance
concerning the proper use of Tokuyama products.
We launched a project team that supports this activity, called the
EH&S Promotion Team. It provides information on the environment,

The Preservationof HealthEnvironmental
Conservation- Provision of safety
information- Compliance with
control concentration- Reduction in
exposure- Discharge reduction
measures- Consumption
reductionmeasures

EH&S Promotion
Activities

Labeling Assessment
Subcommittee(prototypes)

Product Assessment Committee
Study on(tertiary assessment)
Commercialization

Safety and Environmental
Assessment Subcommittee(basic planning)

Equipment Design

Safety and Environmental
Assessment Subcommittee(design)

Prior to Marketing(inauguration)

Safety and Environmental
Assessment Subcommittee(prior to inauguration)

After Inauguration

Report on Actual Conditions(environment)

Labeling Assessment
Subcommittee(products)

Safety Management of Waste
Waste is handled in the same way as our products. We
prepare MSDSs for waste and distribute them to waste disposal
operators and distribution agents to ensure safety in handling andtransportation. Particularly in the case of highly hazardous waste,
Yellow Cards have been created to ensure that every driver
carries them and that they can deal with any problem duringtransportation.
We have so far created MSDSs for 73 types of waste andYellow Cards for 41 types of waste.

EH&S*3 Activities concerning Tokuyama’s Products

Tokuyama

Head of the Research andCommencement Development
Division and othersof Development(secondary assessment)

Terminology *1 GHS refers to the global standard system for the classification and labelling of chemicals.

21

Safety and Environmental
Assessment

Provision of Information on Chemical Products
Tokuyama offers MSDSs for all its products and prototypes to
its customers and distribution agents. MSDSs have been prepared
for around 560 products. In particular, for the 33 products thatare transported in large quantities and heavily used by ourcustomers, MSDSs are always made available on the Company’s
website.
To deal with any problems in transit, we have created Yellow
Cards*2 and each of our drivers carries them. They include
information on immediate measures to be taken in case of
emergency. MSDSs and Yellow Cards for individual products are
published on our Intranet to ensure the sharing of safety
information.

Harmony with Society

Satisfaction and Security – Quality Assurance System

Safety- Guidance on safetymeasures- Guidance on handling

Collaboration with
relevant bodies- The Ministry of the Economy,
Trade and Industry and theMinistry of the Environment- Japan Association for Hygieneof Chlorinated Solvents- Japan Industrial
Conference on
Cleaning

Relationships with Customers

Relationships
with Customers

and on the health and safety to users of Metaclene ®, our chlorinatedsolvent product (dichloromethane) and other products.
Dichloromethane is one of the volatile organic compounds that has
recently been subject to discharge control. We gather informationon conditions and equipment maintenance and on the management
status of individual users to provide recommendations on
appropriate use.

VOICE
Aiming to win trust from customers byoffering EH&S information and by striving
to raise awareness concerning proper use
Thirty years have elapsed since Metaclene® wasdeveloped as a chlorinated agent for the cleaning of
metal. As the public is nowadays increasingly
conscious of the environment, we often hearcomments based on misapprehension andunsubstantiated rumors resulting from the emphasison the toxicity of chlorinated cleaning agents.
Masaaki Nakashima placed
For example, some say that Metaclene® cannot be
Assistant Manager
used after obtaining ISO 14001 certification whileothers say that the use of Metaclene® will be
Development Dept.
identified
in the future as the source of problems.
Advanced Materials
The environmental impact of this particular productBusiness Div.
can be reduced by providing customers with advice
on proper use on the basis of technologies andexperience accumulated over time. In addition, it isa cleaning agent that features superior economic efficiency.
At the moment, we are positively engaged in EH&S activities aimed at improving
the work environment and slashing the amount of discharge so that ourcustomers can continue to use the products for a long time. We will work hard in
the future together with our customers to enhance their operating environment
and to reduce the discharge volume.

*2 A Yellow Card is a commonly used name for an emergency notification card containing information on the immediate action to be taken by the driver, nearby operators,
firefighters and police officers in the event of any accident involving a particular chemical substance during physical distribution.
*3 EH&S stands for environmental health and safety.

Tokuyama CSR Report 200822

Harmony with Society

Relationships with
Communities andSociety

The emergency drill in the Osaka district on October 6, 2007

Risk Assessment
Before hazardous materials are transported, we conduct risk
assessments to verify the safety level of the mode oftransportation, the trucking route and the emergency measures tobe taken in the event of an accident. If anything that presents ahigh level of risk is found, it is remedied methodically. Whenever
any new logistics facility is constructed or expanded inside oroutside a factory, a facility safety assessment is conducted toassess the risk in the phase of facility design.
The Company continues with efforts to enhance theconditions at users’ premises, such as remediation of defective
facilities at the delivery destination.
In addition, we work unfailingly to ensure full compliance withthe amended Law for the Prevention of Marine Pollution and Sea
Disasters. For instance, we ensure that the Emergency Action
Manual for the Prevention of Hazardous Liquid Contamination
always available at relevant ground facilities.
Crisis Management System
We have established emergency response criteria to deal withpotential crises in logistics operations. The equipment andmaterials necessary for disaster prevention are always ready foruse.
In the Shunan, Kanto and Kansai districts, we have establisheda mutual disaster assistance system in cooperation with related
logistics operators. The same system has recently been
established in the Chubu district as well.
We are encouraging our contracted freight companies to equip
their trucks with global positioning systems (GPS).
Environmental Preservation Measures and Energy Conservationin Transportation
Together with truck operators, Tokuyama is making efforts tointroduce vehicles that are compliant with the emission
regulations, as well as vehicles with high fuel efficiency anddevices that assist in environmentally friendly driving, such as
new digital tachographs.
Following the amendment to the Law Concerning the Rational
Use of Energy, we are actively making efforts to conserve energy
as a specified cargo owner. On a ton-kilometer basis, we havereached a modal shift ratio*1 of 94%, chiefly with marinetransport.

Tokuyama holds a community dialogue every year. This is a corporate briefing on RC activities given to local communities.
On August 21, 2007, Tokuyama held the Fiscal 2007 Local RC
Dialogues at the Tokuyama Factory. This event is organizedindependently by the Tokuyama Factory each year in collaboration with
the Shunan City Government for neighboring community associations,and is aimed at achieving greater understanding of the Factory’s
environmental and safety efforts. The meeting last year was the fourthsuch event and the attendees consisted of about 40 participants,

Number ofParticipants

Proceedings

37, including chairpersons of community associations
around the Factory (Seven of them participated in thecommunity dialogue for the second time.)

Briefing (37 participants)
Environment in the city of Shunan
Outline of the Tokuyama Factory
Efforts for environmental preservation,
safety and disaster prevention

Tokuyama Factory tour (31 participants)
Tokuyama, Nanyo and Higashi plants
Yamaguchi Eco-Tech Corporation

including the chairpersons of community associations thatneighbor the Factory. The dialogue included a briefing on the
Factory’s environmental, safety and security efforts, a factory
tour and an exchange of information. The participants
exhibited a great interest in environment and safety issues, andcommented that the dialogue and the factory tour reassured
them and gave them a good insight into Tokuyama’s sincerity.

Findings of the questionnaire conducted on the day

Harmony with Society

Guidance and Education on Safety Management to Contracted
Logistics Companies
At different locations, Tokuyama organizes periodic safety
meetings with its logistics subcontractors throughout the country
that it commissions to deal with product transportation. We
subject these companies to safety inspections with a view toimproving their level of distribution management. They represent
part of our positive efforts toward the horizontal expansion of
accident reporting and measures to prevent accidents. Within thepremises of our Tokuyama Factory, our safety specialists regularly
inspect loading terminals and conduct visits and provide
guidance aboard freight vessels in cooperation with the logistics
companies to increase safety awareness.
We also have a range of emergency measures in place. For
example, truck drivers are required to carry yellow cards printed
with emergency measures and their trucks must be equippedwith appropriate emergency tools so that the necessary action
can be appropriately and immediately taken whenever anincident occurs during land transportation. We have also
constructed an emergency communication network andassociated frameworks. We conduct emergency drills to train
ourselves to prepare for the initial action in the case of an
accident.

Working on Local RC Dialogues< Community dialogue on the day >a) Presentation

Comprehensible explanations 44%c) Time allotment for
explanationsd) Reception and others

Comments

Roughly understood 56%

Good 100%b) Screen and audio

Good 80%

Poor 20%

Good 100%
Relationships with Communities and Society

Promotion of Safety and Environmental Management in the Distribution Process

Tokuyama has been engaged in a broad array of activities directed at making asocial contribution. They include financial support for the development of scienceand technology and assistance to facilitate the sound growth of our children. In
addition, we hold local RC dialogues to communicate with local residents.

The event gave me a reasonable insight into environmental issues.
Both the city government and the company addressenvironmental problems. I realize that every single member ofthe public must increase their own awareness.

< Factory tour >a) Explanations

Comprehensible explanations 47%

Roughly understood 53%b) Other facilities that the respondents wish to see
Electrolysis plantComments

SE plant

North part of the Higashi plant

Inside the plant

I visited Yamaguchi Eco-Tech and deepen my understanding of theimportance of refuse separation. I hope the tour will be open toelementary and junior high schoolchildren.
I wish that the tour would last longer.

The dialogue with local communities helped us better understand their views
and requests.
RC Community Dialogue Held at the Tokuyama Factory

We will study their valuable comments to improve our corporate activities.

Tokuyama Science Foundation
Tokuyama Science Foundation was established in 1988 withthe aim of creating new fields of science, as part of the project forcommemorating the Company’s 70th anniversary. Each year, theFoundation grants research subsidies to young researchers in thearea of new materials studies. It runs various support programs,
including International Exchange Assistance, International
Symposium Assistance and Science and Technology Awareness

Building Assistance. As of March 2008, the Foundation had
financially supported a grand total of 283 research projects andprovided a total of 550 million yen in assistance.
Year 2008 marks the 20th anniversary of the establishment of
this Foundation. On December 4 and 5, it will be holding a
ceremony to commemorate the occasion and to present its
achievements.

Terminology *1 The modal shift ratio is the ratio of freight or passengers transported by alternative means, specifically rail and ship in substitution for automobile and aircraft.

23

Tokuyama CSR Report 2008

Tokuyama CSR Report 200824

Harmony with Society

Donation of Previous Uniforms to Nepal

Mikage Bunko

Exhibition of Environmental Events

In June 2007, two students from Tokuyama Commercial
High School participated in a 16-day internship program at theCompany. The program constitutes part of the Japanese versionof the Dual System organized by the Ministry of Health, Labourand Welfare and the Ministry of Education, Culture, Sports,
Science and Technology. The same program was run last year
as well.

As we did in 2006, we donated to Nepali children our old-styleuniforms for female employees, which became superseded after
we changed the design. This program was originally suggested by
one of our female employees as a means of making effective useof the resources after the uniform change. In 2007, we donatedwhite blouses and vests that were formerly worn at the head officeand branch offices to Balwapati Primary and Secondary School in
Nagarkot, which is situated at an altitude of 2400 meters.

In 2008, Tokuyama ran the 31st Mikage Bunko program. As
part of our CSR activities, this program donates book coupons toelementary schools and junior high schools in Shunan,
Yamaguchi Prefecture. On February 8, Tokuyama’s personnel
visited the mayor of Shunan and handed him the contribution for
51 elementary and junior high schools in the city. To
commemorate its 90th anniversary, Tokuyama also donatedbookracks this year.

Yamaguchi Iki-Iki Eco Fair
Wai Wai Monozukuri Kagayaki Festa

Aya ItoA third-year student,
Information andBusiness Course
Tokuyama Commercial
High School“I have learned the importance ofcommunication.”
The program gave me some practicalexperience of doing office work and made me
feel more like taking a clerical position in the
future. During the internship period, I
preformed various duties. I have learned thatthe clerical section has manydifferent tasks. The practicalexperience also taught me theimportance of smiling and greetingothers. I think that greetings arepart of communications in oursociety and a key part ofconnecting with people. I will
make the most of this lesson in mylife in future.

A Concert of the 12 Girls Band as a Project
Commemorating the 90th Anniversary
On February 16, 2008, Tokuyama marked the 90th
anniversary of its establishment. To commemorate the occasion,
we invited the 12 Girls Band from China and organized aspecial concert for the locals on April 5 in Shunan bunkakaikan.
The event attracted some 1700 visitors, who derived utmost
enjoyment from the great performance of the 12 Girls Band.

Schoolchildren at Balwapati
Primary and Secondary School

The Fourth Community Briefing on
Responsible Care in the Shunan District
On November 13, 2007, the Shunan District Environmental
Preservation Council organized the Fourth Community Briefing
on Responsible Care in the Shunan District at a meeting housecalled Pipi 510 in Shunan. With around 180 participants,
including those from community associations, the government
sector and the area of education, it had a keynote speechdelivered by the Environment and Life Department of the
Yamaguchi Prefectural Government and Japan Chemical Industry
Association (JCIA), followed by a report on the environment of
Shunan from the Environment and Life Department of the
Shunan City Government as well as presentations on RC
activities from three enterprises. Tokuyama made a presentation
entitled the Environmental Preservation of the Enterprises in the
Shunan Industrial Complex.
The Fourth Community Briefing was the first such event that
included a roundtable dialogue joined by governmental officials,
local residents and businesses in the Shunan Industrial Complex.
Opinions were actively exchanged on the problem of noise etc.
The event provided an opportunity to engage in communication
with the local community.

Exchange among People, the Forest and Water– Participation in Forest Volunteer Activities
The Project for Promoting the Development of Water Sourcesin Collaboration with Enterprises - Machi to Mori to Mizu no
Koryukai (meaning “the Exchange among People, the Forests andWater”) took place under the auspices of the Shunan Agriculture
and Forestry Office in the municipally owned forest at Iinoyama
in the city of Shunan. This volunteer activity is aimed at ensuring
the stable supply of good-quality water through the developmentof a green forest that has a high water-retaining capacity like adam. This includes weeding out grass that interferes with growthof trees, thinning of trees, pruning branches and planting
broadleaf trees. One hundred and forty staff members from
Tokuyama participated in the activity. Following the guidance ofa forestry instructor certified by the Yamaguchi Prefectural
Government, theparticipants cut
someundergrowth, cut
the vegetation to
make some
improvements
and pruned thebranches ofJapanese cedars.
Hard at work at the Forest Volunteer Activities

VOICE
Realizing the importance of actively tacklingenvironmental issues

Yuki Hajima
Personnel Dept.
(Tokuyama)
General & Personnel
Affairs Div.

The special concert to commemorate the 90th anniversary of establishment25

Tokuyama CSR Report 2008

The Community
Briefing in Progress

I took part in the cutting and pruning
activities at Iinoyama in Shunan on October
20, 2007. The work was in fact very
challenging. Especially in pruning, it isnecessary to saw off the branches straight at
the base. I was told that if they were not cut
straight the tree would grow crooked. It wasvery difficult to do the work on poor footing.
After only two hours of work, the forest
looked much nicer than it did before. I realizedthat it is possible to generate an indefinitely large
capacity by combining the small capacities ofeach individual and that it is significant forindividuals to actively address environmental
issues. It was a good experience that has enabled
me to elevate my awareness.

Environment quiz

Harmony with Society

Exchange with Neighboring Communities

VOICE

On October 20 to 21, 2007, the Yamaguchi Prefectural
Government organized an environmental event entitled Yamaguchi
Iki Iki Eco Fair at Yamaguchi Kirara Expo Memorial Park in Ajisu,
Yamaguchi City. On October 27, the Shunan City Government
held a festival called Wai Wai Monozukuri Kagayaki Festa at Pipi
510. Both events attracted a large number of visitors.
Tokuyama is a manufacturer of polycrystalline silicon for solar
batteries and is engaged in the development of electrolyte
membranes that are central to fuel cells. At these events, we ran an
exhibition booth to explain our efforts to combat global warming
and to reduce energy consumption. The booth provided theparents and children who visited with the opportunity of building
miniature solar cars and of trying their hand at a quiz. There was along line of people waiting to race the solar cars they created in
the exhibition. The children who participated in the race were
excited to see their cars racing toward the finish line.

Relationship with Communities and SocietyInternship for High School Students– A Japanese-Style Dual System

Solar car race

From Responsible Care Report to CSR Report
Tokuyama published its Responsible
Care Report from 1997 to 2006. In
2007, it was revamped to become the
CSR Report. We are working toenhance the coverage of the report toprovide many different stakeholders
with information on our attitudes
towards society, the environment,
health and safety as well as with anannual summary of our activities. In
addition, Tokuyama’s website has
sections that feature environmental
and social contributions, showcasing
the Company’s environmental andsocial activities.
URL

http://www.tokuyama.co.jp/eng/enviro/index.html

Tokuyama CSR Report 2008

26

Harmony with Society

Addressing the Development of Human Resources
Capitalizing on the Skills Education
and Training Center

Human Resource Development System (Fiscal 2007)
Core Positions

Due to the large-scale retirement of the
Functional Qualification System
Education Relating to Functions,Globalization, Practicalbaby-boomer generation, the manufacturing
Promotion System/
Goal Setting andCompetency Education
CDP*
Performanceand Specialist Skills
Level-Specific Training
Evaluation System
shop floor now faces two challenges. One is to
Illustrated Communication
Training for
Briefing for
GlobalHuman
Resource
pass on the skills from experienced workers toLifeTraining
Level 9 Personnel
Establishment
Development Program
DesignPromotion
Promotion to Level 9
the younger generation and the other is to train
Creative Task Building
Managers
SeminarTraining
Business Leader Development Program
Training before
new operators from the early stages. To meet
Promotion to Level 9
Training to Build
Training for
Capacity in Negotiations
Recruitment
these challenges, Tokuyama launched the Skills
Function-Specific Education
CareerTraining for
Examiners
Development
Level 6 Personnel
Business Coaching Training
Education and Training Center in April 2007.
SeminarII
Promotion to Level 6
On-Site Voluntary Learning
Goal Management
Under the slogan, Experience, Feel and Learn,
Training before
Evaluation System
Team Management Training
Promotion to Level 6
On-the-Job
Training
it offers practical training for acquiring the basic
Specialist Education
Career
Self-Empowerment Training
Development
Training forknowledge and operations required by new
Level 4 Personnel
Seminar I
Interprofessional Exchange
Logical Communication
operators through the use of an education plant
Promotion to Level 4
Training
Training before
and cutaway models of different devices as well
Responsible Care Education
Time Management Training
Promotion to Level 4
as safety education based on dangerous events
Self-Development
Support System
New Employee Training (introductory training, skill education and follow-up)
such as an object falling from above, an object
becoming airborne, exposure to liquids andobjects becoming snagged on each other or in* Carrier Development Programmachinery.
Expanding the Human Resource Development System
In fiscal 2007, the Center offered technicalto the Rest of the Group
training to some 90 new employees and provided education
concerning dangerous events to approximately 120 technical staff
Centering on personnel and the organization, Tokuyama’s
members in their second and third years of service. These programs
Human Resource Development System is designed to strengthen
are highly regarded by workers in manufacturing. They comment thatleadership development and managerial capability. In operating
the trainees can now be progress smoothly to specialist education at
this system, we secure a link from level-specific off-the-job
the workplace after basic skills training and safety education based
development (Off-JD) to on-the-job development (OJD). Thison the Experience, Feel and Learn principle and that their safety
approach is so highly regarded that we won the 19th JMA HRD
awareness is considerably improved by the education.
Award for Excellence in fiscal 2006. This award is presented by
In the first half of fiscal 2008 as well, we will be offering new
the Management Research Institute of the Japan Management
employee training to 100 newcomers and additionally offering
training in dangerous events to new employees in our group
Association (JMA).
companies.
At the same time, we are working to enhance morale
In the second half, we will bethroughout the entire Tokuyama Group towards human resource
launching skill training for young
development. In November 2007, we had the Group’s first-everpersonnel in their third year of
Human Resource Development Meeting (2007) to discuss theservice or later.
Advanced
PositionsIntermediate
Positions
Entry-Level
Positions

An experiment involving objects
becoming caught in machinery

VOICE
Making the most of what I experienced,
felt and learned at the training center in
my future work

Sho UchidaTechnical Sect.
Manufacturing Dept.
Si Business Div.

27

Tokuyama CSR Report 2008

At the Skills Education and Training Center,
I underwent one month of training on plant
operation and safety. The training provided trainees
with the opportunity to see the actual plant andequipment first hand. The trainees exchanged
opinions as we considered the mechanism, which
helped us to deepen our understanding. The
experience of dangerous events such as exposure
to liquid and objects being snagged in machinery
raised our awareness of the latent risk in the
Factory and the need to wear protective attire.
I will apply what I have experienced, felt andlearned through this training to my future work.

main topic for developing human resources that increasepractical abilities. Fifty-four people from 15 companies in theGroup participated, including management executives, staff
members engaged in personnel affairs and human resource
development, as well as front-line managers. They engaged inserious discussions concerning the optimum form that humanresource management should take.
The general meeting included presentations covering
outstanding examples of human resource development at Group
companies. It was followed by three separate focus sessions
lasting all day where there was serious debate concerning theideal form that humanresource development
should take inincreasing practicalabilities and enhancing
group management.
Human Resource
Development Meeting 2007

Personnel Management System toEnergize Human Resources

Promotion of Improvements to Mental
and Physical HealthWork-Life Balance

Improvements to Health through the THP

Tokuyama has implemented three institutional reforms,
detailed below, for the purpose of supporting its employees’
work-life balance and building an environment in which children,
who play key roles in the next generation, are born and raised ina healthy manner. First, we extended childcare leave for an
additional twelve months. This leave is now available until thechild reaches the age of two. Second, we have launched a
program permitting shorter working hours for employees caring
for preschool children in order to help them pursue their career
while engaging in childcare. Third, we have also launched a
program of family care leave in consideration of the burdens that
employees who provide family care must bear.

In accordance with the Guidelines for the Total Health
Promotion Plan (THP) backed by the Ministry of Health, Labourand Welfare, Tokuyama set up the THP Committee. The THP
Committee engages in a wide range of activities to address its
priority challenges of combating lifestyle-related diseases andenhancing mental health.
Its actions against lifestyle-related diseases include individual
guidance provided by industrial doctors and medical personnel
on the basis of the results of regular health checkups and asmall-scale health workshop conducted by visiting healthmanagement personnel at employees’ workplaces.
In fiscal 2007, the THP Committee provided employees withseveral opportunities to think about their diet. For example, in
cooperation with the company canteen as part of nutritional
education, it devised a plan to serve healthy lunches that were
low-sodium meals having good nutritional balance. To increasemental health, it launched the Genki Iki Iki Tokuyama Katsudo(the Initiative for an Energetic and Lively Tokuyama). Under thisinitiative, a provisional stress check was introduced using asimplified occupational stress checksheet. The check was
conducted for employees at the Tokuyama Factory to confirm
that the mental health check was an essential part of the efforts
to alleviate stress. As a result, it was expanded in fiscal 2008 toencompass the entire company. In this was, we are taking
positive action for protecting the mental and physical health ofthe employees.

Trend in the Number of Employees on Childcare Leave(persons)

Fiscal 2003

Fiscal 2004

Fiscal 2005

Fiscal 2006

Fiscal 2007

13

9

13

3

11

Employment of Physically-Challenged Persons
In fiscal 2006, regrettably, Tokuyama was unable to reach thestatutory rate for physically-challenged persons employment of
1.80%. Thereafter, in fiscal 2007, we actively recruited disabledjobseekers and increased the ratio to 1.93%, thereby achieving
the mandatory level.
In the hope that physically-challenged employee will develop
at their worksites and through business activities to contribute tosociety, the Tokuyama Group will maintain its stance concerning
the actively employing physically-challenged persons.

Trend in Employment Rate of Physically-Challenged Persons(%)

Fiscal 2003

Fiscal 2004

Fiscal 2005

Fiscal 2006

Fiscal 2007

1.39

1.59

1.80

1.65

1.93

Retired Employees Reemployment Program
Following the move to increase the age at which employee
pensions begin to be paid, Tokuyama set up an retired employees
reemployment program in fiscal 2001, ahead of the competitors.
This program serves another objective of passing on skills in
preparation for the retirement of the baby-boomer generation. In
fiscal 2007, 49 employees wanted to be reemployed andTokuyama reemployed 43 of them in various positions. They
have been displaying their superior skills and expertise cultivatedat the workplace.

Harmony with Society

Tokuyama is committed to improving the working environment to ensure that individual
employees can exhibit their capabilities and engage in their everyday duties with motivation.
In fiscal 2007, the Skills Education and Training Center commenced full-scale operations. The
Company endeavored to develop human resources and worked more actively on improving
their mental and physical health.

Relationships with Employees

Relationships
with Employees

Promotion of Internal Recreational Activities
With the aim of stimulating communication among employees
and creating a stress-free workplace that has a cheerful and lively
atmosphere, Tokuyama is promoting recreational activities.
As a production center, the Tokuyama Factory traditionallyprovides lunchtime recreational activities. In accordance with theannual plan, the recreational staff members at individual
workplaces take the initiative in actively promoting these
activities.
The Tokyo head office, branch offices and factories
individually arrange and organize activities that suit with theirrespective characteristics.

VOICE
Supporting the maintenance and improvementof health through diet and exercise

Misako Ushimi
Nurse
Health Care Center
General & Personnel
Affairs Div.

At the initiative of the Diet Group andExercise Group, the Health Management Center
is working to prevent employees from suffering
lifestyle-related diseases. The Diet Group
provided nutritional education in the company
canteen in fiscal 2007 in an effort to direct
employees’ attention to their everyday diet. The
Exercise Group introduced tests of physicalstrength at individual workplaces this year. The
objective is to ensure that employees understandtheir own physical strength and the importanceof exercise. Diet and exercise are two key pillarsof the initiatives to improve health. We take these
two approaches to support the maintenance andimprovement of their health.

Tokuyama CSR Report 200828

Harmony with Society

In a bid to gain the understanding and confidence of shareholders and investors, Tokuyama
is working to provide information in a prompt, appropriate manner.

Commitment to Safety and Disaster Prevention

To provide shareholders and investors with information, Tokuyama
has opened the section For Investors on its website. This section offers
stock information, consolidated financial data, financial reports
including financial summaries, electronic public notices, securities
reports, annual reports and presentations for IR meetings as well as
the IR calendar.

Composition of Shareholders(as of March 31, 2008)
Financial instrument brokers
Other Japanese corporations
1.9 %12.8 %

Individuals
and others
18.5 %

Financial
institutions

37.8 %

Foreigncorporations
and individuals

29.0 %For Investors on Tokuyama’s website
The financial results briefing on May 13,
2008

Relationships with
Trading Partners

Annual Report

URL

http://www.tokuyama.co.jp/eng/ir/index.html

Tokuyama is committed to engaging in fair transactions with all its trading partners forbuilding mutual trust with them and to meeting its CSR commitments in its purchasing
activities.

Fair Transactions
Maintaining good and honest partnerships with its trade partners,
Tokuyama makes purchased in accordance with its basic purchasing
policy, to ensure that it supplies its customers with good products
backed by outstanding technologies.

Tokuyama’s Basic Purchasing Policy

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

Optimum Transactions

Statutory ComplianceTokuyama evaluates its trade partners from an overall perspectivethat includes quality, pricing, delivery dates, technical capabilities,
credibility, safety, after-sales service, serviceability, the ability torespond to incidents, compatibility with existing equipment andbusiness stability to choose suppliers that best suit the Company.

In its purchasing activities, Tokuyama complies with the letter andwith the spirit of the relevant laws and regulations. Tokuyama also
requires its suppliers to comply with them and chooses suppliers thatmeet the requirement.

Partnership

Promotion of Green Purchasing

Tokuyama aspires to be a good partner that shares with its
suppliers the common goal of creating good products. To attainthis goal, Tokuyama welcomes suppliers with unique proposals forcreating an environment that gives new suppliers easy access toopportunities for transactions.

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

All-Inclusive Safety and Disaster Prevention Activities
Tokuyama has three safety principles. According to theseprinciples, safety is, in the first instance, a social responsibility to be
met as a corporate citizen. Second, safety is given priority over allother business activities; and third, security can be achieved by thefact that all staff members have a responsible attitude and engage in
responsible activities.
The Company’s main factory, the Tokuyama Factory, is locatedvery close to the residential district of the city. We understand that it
is absolutely essential to ensure safe operation of the factory and we
make painstaking efforts to ensure safety of the equipment and theprocesses. We rigidly implement and continuously upgrade thebasic safety activities, including safety patrol, activities to anticipate
danger, initiatives to prevent near-misses, 5S activities*1 and thepractice of checking things by pointing and speaking aloud. In
addition, we actively work to detect latent sources of danger or risks
and to reduce and eliminate them in an attempt to prevent accidents
or disasters.
We subject our disaster prevention system to review andimprovements to ensure readiness in the event of an emergency.
Specifically, the system includes a structure, as well as
communication, disaster control activities, materials and equipment
for disaster prevention and rescue and first-aid operations.
In fiscal 2007, in an attempt to improve the resources andequipment for disaster prevention, we upgraded the system so that it
was possible to transfer images from the site of the disaster. We also
installed more gate security cameras and standardized theindications of automatic fire alarms. These are part of our efforts tocollect accurate information and to speed up the process of being
able to respond to any accident.
In addition, we conduct a range of different drills in preparation
for an emergency situation. They include the general disaster drill
jointly held with the public sector, departmental disaster drills,
emergency drills organized in collaboration with affiliatedcompanies and contractors and a competition of skill in controlling
disasters held on the Factory’s premises.
We exhibited these drills to local communities to gain theirunderstanding and confidence concerning the Factory’s safety
activities.

The general disaster drill
at the Tokuyama Factoryon January 25, 2008

Encouraging Voluntary Safety Activities
The Tokuyama Factory is accredited as a certified safety
inspection operator and a certified completion test operator for
twelve facilities pursuant to the High Pressure Gas Safety Law
and is qualified to continuously operate boilers and otherequipment. We ensure appropriate operations in compliancewith the accreditation requirements. We also follow the principleof conducting voluntary safety activities under our own
responsibility to run the plan-do-check-act (PDCA) cycle insafety management with complete consistency. While raising theawareness of safety among all employees, we will endeavor toprevent accidents and disasters.
We encourage the management teams for operations toengage in their voluntary safety activities. The equipment
management section is working to build up its engineeringexpertise in ensuring safety for maintaining the stable operationof the plants.
Safety Audit
Tokuyama conducts audits of all its factories and offices toinspect the status of process safety, disaster prevention andoccupational health and safety. If the audit identifies any
nonconformance, it is specified and the necessary guidance isgiven to ensure corrective action. The audit results are reported
to relevant departments so that they will implement remediation.
The Safety Measures Committee is also informed of the results sothat it can formulate an action policy for the following fiscal year
on the basis of the findings.
Safety and Environment Assessment
When installing, modifying or adding any equipment, the headof safety calls internal experts to perform assessments at theplanning stage, at the design stage and at the stage before going
live. Each assessment conducts pre-emptive checks andexamines any latent risks that may arise for the purpose ofremediation and improvement. This ensures the safety ofequipment, process and operation and prevents accidents anddisasters from occurring.

Auditing at the
Kashima Factory

Safety Performance
In fiscal 2007, Tokuyama continued with its safety activities toachieve the goal of completely eradicating on-the-job accidents
that resulted in workplace absentees. The Tokuyama Factor
attained this goal in terms of its employees. In April 2008, its
accident-free period surpassed 5,400,000 hours to meet therequirement for certification of a Type I No-Accident Record.
However, it saw two accidents in which the employees ofcontractors were injured and were absent from work.
The Kashima Factory has maintained its zero-accident andzero-injury status for 22 years since its inauguration. The Tsukuba
Research Laboratory has also been free from accidents ordisasters for 18 years since it was launched.
In fiscal 2007, we spent 600 million yen on upgrading facilities
and on increasing disaster control equipment for the purpose ofsafety and disaster prevention. We will continue to step up ourefforts to protect all workers from accidents, whether they are
employed by Tokuyama or our contractors.

Harmony with Society

Information Disclosure

Tokuyama believes that safety is an essential part of business activities and that ensuringsafety is the first step in achieving coexistence with society. In taking this stance on safety,
Tokuyama thoroughly conducts process safety and disaster prevention activities as well as
occupational health and safety efforts. With the aim of preventing accidents and injuries,
the Company is striving to provide a favorable working environment.

Relationships with Shareholders/Relationships with Trading Partners
Process Safety, Disaster Prevention and Occupational Health and Safety

Relationships with
Shareholders

Process Safety,
Disaster Prevention
and Occupational
Health and Safety

Terminology *1 The 5S activities are an initiative to ensure the 5S features at the workplace. The 5S refers to Seiri (tidy), Seiton (organized), Seiketsu (clean), Seiso (cleaned up)
and Shukanka (putting these four actions into practice).

29

Tokuyama CSR Report 2008

Tokuyama CSR Report 200830

Harmony with Society

Commitment to Occupational Health and Safety
Tokuyama has established Occupational Health and Safety
Management Systems for individual factories and offices and, in
fiscal 2003, put them into operation. At the Tokuyama Factory, its
system was upgraded into the Safety Management System infiscal 2005 to additionally support process safety activities. Thisfactory continues to make improvements by performing risk
assessment in terms of work, equipment and processes with aview towards completely removing potential risk factors. In fiscal
2007, the Company invested 200 million yen to enhance andstrengthen occupational health and safety.

Implementation of Safety and Health Activities inConcert with Contractors
Tokuyama is working to safeguard all workers at its plants from
accidents and injuries in collaboration with its contractors.
Specific activities include efforts to share information and raiseawareness through joint safety and health meetings and theirdepartmental equivalents with the participation of Tokuyama’s
employees and those of its contractors. Other activities include
enhancing safety checks and management by means of safety
patrols, purpose-specific safety education and workshops forincreasing knowledge of the personnel and training programs toincrease the level of skill.

Trend in the Rate of Injuries Resulting in Lost Work Time*1
Source: Japan Industrial Safety & Health Association (JISHA) Ratio of Industrial Injuries and Deaths
by Industry on the JISHA website

All industries

(%)
2.5

Chemical industry

Tokuyama

Maintaining a Favorable Working Environment

Encouraging 5S Activities

For the purposes of preventing health problems and providing aworking environment that enjoys the full confidence of thepersonnel, Tokuyama has long been engaged in conducting
continuous environmental measurements on workplaces that
handle specified chemical substances and organic solvents,
thereby improving working procedures and facilities. At the
moment, all the worksites at every factory and office fall underControl Category I*3. We impose stricter voluntary standards tostimulate improvements. The Tokuyama Factory conducts
improvements to the working conditions in a broader sense
through the use of occupational stress survey results. The results of
the improvement are studied for the purpose of bettering
workplace conditions.
Although our environmental measurements have confirmedthat none of the locations where asbestos has been sprayed on thebuilding constitute any immediate hazard, all the asbestos removal
and detoxification work attained completion in fiscal 2006.

The Tokuyama Factory introduced the 5S model workplaceaccreditation program in 1991 in a bid to stimulate 5S activities.
Under this program, each workplace makes an application toundergo an assessment. If it is found that it meets thepredetermined requirements, it is accredited as a 5S model
workplace. As of the end of March 2008, a total of 200
workplaces had been accredited under this system. The 5S
activities are basic to safety. As in the case of work skills, 5S
activities will be passed down and intensified with the aim ofachieving accident-free status.
Harmony with Society

Promoting the Safety Management System

Occupational Stress Survey Sheets (with 57 questions)

1.5

Process Safety, Disaster Prevention and Occupational Health and Safety

Process Flow of Stress Relief through the Use of
Occupational Stress Survey Sheets

2.0

A plate for a 5S model workplace

To be implemented at workplaces
1.0
Analysis of replies to selected questions concerning healthrisks attributable to factors associated with the workplaces
0.5

0.0

(workplaces)

A safety meeting held by the Company’s contractors on July 2, 2007
’98

’99

’00

’01

’02

’03

’04

’05

’06

Trend in the Cumulative Number of Workplaces
Accredited as 5S Model Workplaces
200

200

188
169

’07
(Fiscal year)

Findings on individual workplaces explained by the
Health Management Center to the managerial staff

143

150
124

Trend in Severity Rate of Accidents*2
Source: Ministry of Health, Labour and Welfare Survey on Industrial Accidents

All industries

(%)
0.25

Chemical industry

Study on measures for improving the working environment

Tokuyama

52

50

VOICE

Activities for Improving the Working Environment
4

All personnel make an integrated effort toeradicate accidents and injuries

0.15

0.10

Kazunori Kaneda

0.05

’98

’99

’00

’01

’02

’03

’04

’05

’06

’07
(Fiscal year)

Assistant Manager
Manufacturing Sect. 1
Manufacturing Dept. 2
Chemicals Business Div.

At our Second Chemicals Manufacturing
Department, the safety management policy
stipulates that every single member take an active
part in the safety management activities. With theaim of achieving accident-free operations, thepolicy encourages us not to miss any risks
associated with the workplace and to address“Safety by Thinking” and “Safety by Visualization.”
To encourage and boost safety activities, we haveintroduced a safety personnel system for
conducting sophisticated safety activities. In the
future, we will make integrated efforts tocompletely eradicate accidents and injuries.

Terminology *1 The rate of injuries that result in lost work time refers to the number of workers forced into absence through industrial accidents per million cumulative working hours.
This reflects the frequency at which industrial accidents occur.
*2 The accident severity rate refers to the number of lost work days per one thousand cumulative working hours. This reflects the magnitude of industrial accidents that have taken place.

31

87
68

0.20

0.00

100

Tokuyama CSR Report 2008

0

4

5

10

14

20

25

35

41

’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07(Fiscal year)

A briefing onstress checks*3 Control Category I refers to the state in which the concentration of hazardous substances in the atmosphere does not exceed the standard control concentration in most (at least 95%) ofworkspace units. There are three control categories, namely I, II and III. Control Category I corresponds to the most desirable condition.

Tokuyama CSR Report 200832

Initiatives for preserving the global environment represent a significant social responsibility
that businesses are obliged to meet. Tokuyama practices environmental management with anemphasis on the environmental perspective in all processes of its business activities.

Harmony with the Environment

Tokuyama strives to obtain accurate data on inputs and outputs in its business activities and reducethe burden on the environment to meet its new goals. In fiscal 2007, the Company continued its
initiatives to conserve energy, and improved unit energy consumption to a level that is 19.2% lower
than the level of 1990. (The Company’s new target for fiscal 2010: 22% reduction compared withthe 1990 level.)

Environmental Costs* All figures represent the input and output amounts associated with Tokuyama Corporation alone in fiscal 2007.

Waste andby-products
1,860

Carbon dioxide
CO2

Fuel
2,200 (55,800,000 GJ)

INPUTProduction
Activity

Industrial water
41,200

(CO2)

7,230
Waste materials

OUTPUT(incinerated and land-fill)

Environmentalload materials
14
Process effluent
24,900

Products
7,150

Atmosphere

Environmental
Impact Reduction

Water Quality

Fiscal 2007 Target Fiscal 2007 Result Rating* Fiscal 2008 Target Fiscal 2010 Target(Reference Fiscal Year: 2004) (Reference Fiscal Year: 2004)

PRTR

±0%

±0%

-11%

-18%

○

(from the average inthe past three years)(from the average inthe past three years)

COD+5% or less

+14%

×

-7%

-7%

Nitrogen

±0%

+19%

×

±0%

±0%

Phosphorus

±0%

-43%

○

±0%

±0%

Hazardous Air Pollutants(VCM, EDC)

-15%

+3%

-35%

-3%

×
×

-24%

-50%

-36%

-38%

20%

22%

lower than the levelin fiscal 1990

lower than the levelin fiscal 1990

EnergyConservation

Unit Energy
Consumption Index

16.0%

19.2%

lower than the levelin fiscal 1990

lower than the levelin fiscal 1990

Recycling

Rate of Effective
Utilization of Waste

94.0% or more

94.2%

○

94% or more

94% or more

Zero-Emission Zero-Emission Ratio

99.8% or more

99.9%

○

99.9% or more

99.9% or more

Global Environment
Conservation
Waste Reduction(Reference Fiscal Year: 2007) (Reference Fiscal Year: 2007)

Soot and Dust

PRTR

Classification of Environmental
Preservation Costs

Principal Actions

Amount Invested Total Amount Spent(JPY million)

Replacement of denitration equipment,
replacement of bag filters and installationof wastewater treatment equipment

551

Pollution Control
Costs inthe Business
Global Environmental Installation of waste recycling equipment
Areas
Conservation
Relocation of general wastewater
Resource Recycling treatment equipment
Upstream and Downstream Costs
Installation of environmental
analysis equipment

Research and Development Costs
Social Activity Costs* The data in the table at the right are based on Environmental Accounting
Guidelines 2002 published by the Ministry of the Environment.
* The figures reflect the amounts incurred at all factories and offices ofTokuyama Corporation.

Costs for Environmental Damage

Planting in the factory premises
and production of CSR Report
Contribution and managementof the former mining site

Total

(JPY million)

3,513

377

1,130

817

1,198

0

0

30

293

21

60

2

17

0

196

1,798

6,407

(Coolant water and othertypes of effluent)Results of Environmental Preservation Activities in Fiscal 2007 at the Tokuyama Factory
Items

Costs of Environmental Preservation

Management Activity Costs(Unit: 1,000 metric tons)

Segment

Nearly 30% of Tokuyama’s environmental
investments were assigned to anti-pollution
measures, about 20% in global environmental
preservation and the remaining approximately
50% in resource recycling. The major
destinations of our environmental investments
include replacement of denitration equipment,
replacement of bag filters and the installation ofwaste recycling equipment.

22

Tokuyama

Raw material
7,620

To facilitate understanding and analysis of how much is invested in and spent on environmental
preservation and for thus improving the effectiveness of environmental investment, Tokuyama
has been implementing environmental accounting since fiscal 2000. In fiscal 2007, ourinvestment in the environment rose about 800 million yen from a year earlier while spending
and the economic benefits each grew some 500 million yen.

Harmony with the Environment

Flow of Materials in the Production Activities

Environmental
Accounting

Performance for Fiscal 2007 / Environmental Accounting

Performance for
Fiscal 2007○

Economic Benefits
To analyze the economic benefits, we calculate nothing but gains
on the sale of valuable waste, the costs of waste treatment for reuse
and the real benefits of gains on cost-cutting of fuel and energy
consumption. Assumed economic benefits are not included in theestimates. In fiscal 2007, we reaped 1.9 billion yen worth of
economic benefits, up by around 0.5 billion yen from the preceding
fiscal year.

Trend in Cumulative Total Environmental Investments(since fiscal 1990)(JPY 100 million)
300

300
272

250

282

246
228

200

Economic Benefit
Item

Material Benefits Economic Benefits(thousand metric tons)(JPY million)

Gains on Reduction in
Energy Consumption-

162

Gains on the Sale ofValuable Waste

91

761

Gains on Waste Treatment
Cost-Cutting

272

462

Gains on Fuel Cost-Cutting
after the Reuse of Waste

272

492

Total

1,877

Remark150

Earned by reducing the amount ofelectricity and steam consumed
Earned by selling scrap metal,
waste oil, waste acidand alkali and suchlike

100

Waste treatment costs
slashed by reusing waste

50

0

2003

2004

2005

2006

2007
(Fiscal year)*Rating: The circle refers to success in attaining of the target and the cross refers to failure to attain the target.

33

Tokuyama CSR Report 2008

Tokuyama CSR Report 200834

Harmony with the Environment

Prevention of global warming is a key challenge to be addressed bycorporate citizens. Tokuyama makes constant achievements throughthe conservation of energy in business activities and supports theconservation of energy in employee households.

Contribution by the Consumer andTransportation Sectors to Action against
Global Warming

Trend in the Unit Energy Consumption Index(Tokuyama Factory)

The Tokuyama Factory won a Minister of
Economy, Trade and Industry Award for
Excellent Energy Management Plant.

Reduction
rate (%) 0
0

–5

–10

–15

–16.7
–20

–16.9

–18.1

–19.1

–19.2

2006

2007

(Target)

–22
–25

1990

2003

2004

2005

2010
(Fiscal year)

Trend in Energy Consumption
Tokuyama Corporation(thousand GJ per year)
60,00051,90050,00040,0001,700Group companies

2,800

3,400

3,800

3,700

53,10053,90054,20055,80038,10030,000Tokuyama wins the prize
from the Minister of Economy,
Trade and Industry on January 30, 2008.

20,00010,000
0

1990

2003

2004

2005

2006

2007
(Fiscal year)

Trend in CO2 Emissions
Generated from fuels(thousand metric tons)
8,000

90

7,000

2,220

Generated from raw materials

Group companies

170
2,290

200
2,350

230

220

2,130

2,100

4,800

4,910

4,960

5,130

6,000
5,000

1,960
4,640

4,000
3,000

1990

2003

2004

2005

2006

2007
(Fiscal year)

Note on the Diagrams:
The Tokuyama Plant of SunTox Co. Ltd., constituted part of Tokuyama Corporation in fiscal
2004 and earlier years. From fiscal 2005 onwards, it is counted as a group company.

Tokuyama CSR Report 2008

Tokuyama takes part in the Cool Biz campaign that began as anational movement in the summer of 2005. In addition to ourconventional energy conservation efforts at our offices, we haveencouraged our employees to work in light clothing andintroduced thorough temperature control of the air conditioners.
As a consequence, for instance, the Tokyo headquarters stopped
its power consumption during the four-month period from Juneto September 2007 from soaring above the level of the preceding
year, although the average temperature was 0.7 degrees Celsius
higher during the period compared to a year earlier.

(At the Tokyo head officefrom June to September)

1,000
0

Efforts at Our Offices

Cool Biz Benefit

3,350

2,000

35

The Tokuyama Factory won a prize from the Minister of Economy,
Trade and Industry in Fiscal 2007 Award for Excellent Energy Management
Plant.
Presented by the Ministry of Economy, Trade and Industry, this award
recognizes outstanding energy management results of factories and otherbusiness establishments with the aim of fostering energy management.
There are three prize categories – one from the Minister of Economy,
Trade and Industry, one from the Director-General of the Agency for
Natural Resources and Energy and the other from the Director-General of
the Regional Bureau of Economy, Trade and Industry. The prize presented
to the Company, the Minister’s prize, is the most prestigious of the threeprizes. In this fiscal year, a total of six factories across the country won the
prize from the Minister of Economy, Trade and Industry.
Under the initiative of its Energy Management Committee headed by
the factory chief, the Tokuyama Factory makes painstaking efforts forrational use of energy. In the past three years, it has introduced ahigh-efficiency salt electrolytic cell, systematized the computation ofelectric and steam distribution for cutting the total fuel consumption of the
Factory’s private power plant units, and replaced the cement cooler with a
new model that offers superior heat recovery. With these actions, it
successfully reduced energy consumption that is equivalent to at least
30,000 kiloliters of oil. We understand that the prize was granted inrecognition of the activities
conducted by individual
manufacturing divisions led by
the Environment and Safety
Department chiefly forcontinuing its environmentallyfriendly safety operations.

In supplying the Shanon plastic window sash, silica forenergy-saving tires and other products, the Tokuyama Group has
been helping to reduce the emissions of CO2 in the consumer
and transportation sectors, in which CO2 emissions havesignificantly increased. The Shanon is a powerful tool for energy
conservation in residential houses. We focus our efforts ontechnical developments that contribute to trend towardanti-global warming, including the construction of a verification
plant for polycrystalline silicon for solar cells and thedevelopment of electrolyte membrane for fuel cells etc.

Program to Encourage Anti-Global Warming
Actions Launched in Commemoration of the90th Anniversary
Tokuyama has a basic policy of pursuing management in harmony withsociety. In accordance with this policy, the Company is stepping up its
environmental, energy conservation and social contribution efforts in aneffort to create a sustainable society.
As part of these efforts, Tokuyama launched a program to encourageanti-global warming initiatives in April 2008 in commemoration of the90th anniversary of the Company’s foundation.
This program covers part of the costs incurred by employees purchasing
and installing specific environmentally friendly products closely related to
the Tokuyama Group’s business, namely the resin window sash forresidential use and the solar power generation system. Its objective is tohelp reduce CO2 emissions in the household sector by raising awarenessagainst global warming and by encouraging householders to conserve
energy. The program is open to all employees of the Tokuyama Group andapplies to any of the specified products irrespective of the make.
To continuously increase awareness of the program within the Group,
we present the program in our in-house newsletter and intranet toencourage our personnel to take advantage of the public support program.
These internal media communicate a wide range of information on global
warming to ensure that the issue is better understood by the Group’s
employees.
Since the launch of the program, there have been a large number ofapplications from staff members in the Group. This shows their current
high level of interest in environmentally considered products. It is hopedthat the launch of this program will help to cultivate environmental
awareness among the Group’s employees on an ongoing basis.

VOICE
I have purchased a solar power
generation system.

(thousand kWh)500

Power consumption

Tokuyama consumes a huge amount of energy in theprocesses of manufacturing its core products, such as caustic
soda, cement and polycrystalline silicon. Carbon dioxide, one of
the greenhouse gases, is generated chiefly by burning fossil fuels
and also by the decarboxylation of limestone used as a raw
material in the cement production process.
Aware of the high priority of preventing global warming, theCompany is conducting energy conservation activities to reducecarbon dioxide emissions.
The Tokuyama Factory is responsible for at least 99% of ourenergy consumption. It finished replacing the No. 7 Unit in its
private power plant in fiscal 2007. After introducing circulating
fluidized bed combustion (CFBC) boilers, the new unit burns
waste tires and biomass alternative to coal by combining themwith coal. Moreover, it has introduced a steam-extraction turbine
to improve energy efficiency.
As a result of our energy conservation activities conducted in
the past, the unit energy consumption in fiscal 2007 was 19.2%
lower than the 1990 level. This means that we met our fiscal
2010 target of achieving a 17.5% reduction in the third straightyear.
In the future, the Company will be stepping up efforts to reacha new target of lowering the unit energy consumption to 22%
below the 1990 level by fiscal 2010.
The Tokuyama Factory received the Minister of Economy,
Trade and Industry Award for Excellent Energy Management Plant
in fiscal 2007. Its earlier efforts in energy management andenergy conservation have earned high marks.
We also take part in the Initiative to Develop the Hydrogen
Frontier Yamaguchi. The Hydrogen Town Model Project employs
hydrogen supplied from our plant, which is piped directly togeneral households.

400

Katsuhiro Takeo

419
358

300

336

336

2006

2007
(Fiscal year)

200
100
0

2004

2005

Harmony with the Environment

Promotion of Energy Conservation

Commitment to the Prevention of Global Warming

Commitment to the Preventionof Global Warming

Assistant Manager
Plant Maintenance
Dept.
Tokuyama Factory

When I was rebuilding my house, I heard that thesolar power generation system from the housing
manufacturer was of a silicon type. I was happy tolearn that because I used to work in the construction
and maintenance of polysilicon manufacturing
facilities. The system was a little expensive, but I think
the costs can be recovered in about two decades inview of the unit’s performance after installation. The
power generation volume at home and the amount ofelectricity purchased from the electric powercompany are continually displayed on the monitor
screen. It has drastically changed the attitude of all
my family members towards energy conservation.
I am thankful to be able to enjoy financial support
from the program for encouraging anti-global
warming activities. I hope that the program willcontribute to the expanded use of solar power
generation and help stop global warming.

Tokuyama CSR Report 200836

Harmony with the Environment

Waste Reduction
and Recycling

Tokuyama has always adopted a broad array of measures on a continuing basis to
reduce air, water and other environmental pollutants. In fiscal 2007, SOx, NOx andsoot emissions were successfully lowered.

Hazardous Air Pollutants Emissions

Waste Management

Management and Treatment of PCB Waste

Every boiler in Tokuyama’s private power plants is equippedwith a flue gas desulfurization system to reduce sulfur oxides(SOx) emissions. In fiscal 2007, as in the preceding year, we
continued environmentally considered operations of our private
power plants to successfully slash SOx emissions. To reduce
nitrogen oxides (NOx) and soot emissions, denitration equipment,
low-NOx burners and high-performance dust collectors areadded to the sources of NOx and soot emissions, namely boilers
and cement calcination furnaces. In fiscal 2007, the sluggish
cement market resulted in poorer operation of cement
manufacturing systems and in lower NOx and soot emissions.

Tokuyama devised a voluntary reduction plan and continuously
takes measures against chloroethylene and three other substances
it produces that are among the 12 substances subject to voluntary
management under the Air Pollution Control Law. Despite the efforts,
the emissions of the four substances increased slightly after anincrease in frequency of starting and shutting down the equipment.

In fiscal 2007, Tokuyama generated 360,000 metric tons ofwaste. It actively recycled them internally and externally, mainly
reusing them as cement material at the Tokuyama Factory.
Packing materials, pallets and other wood waste were crushed
into fuel so that they can be effectively used at power plants. As
we worked diligently recycling waste into material for cement,
our rate of effective utilization of waste stood at 94.1%. We
stepped up our activities for reusing and reducing waste toachieve a high landfill zero-emission rate of 99.9%.

The Tokuyama Group has 81 transformers and capacitors
containing polychlorinated biphenyl (PCB)*3. All of them havealready fallen into disuse. In compliance with the Special
Measures Law for the Proper Treatment of PolychlorinatedBiphenyl Waste, they are retained and managed in an
appropriate manner. Legislation requires all PCB waste to havebeen treated by July 2016. In accordance with the plan of thenational government, wide-area PCB treatment facilities are
increasingly constructed and coming into operation insuccession. Taking advantage of the early registration program,
the Tokuyama Group finished its registration to the Japan
Environmental Safety Corporation (JESCO) in December 2005.
In the future, we will be properly treating our PCB waste in linewith the timetables of the wide-area treatment project inseparate districts

10,0008,000

10,000275

10,90010,90011,50011,500(metric tons)
400

12,30011,40011,400

11,100
11,100

254

250

267

259

223

6,000
4,000

2,890

0

1990

1,880

1,720

2003

2004

200
150

2,310

2005

Incineration

47

60

1,940

1,930

2006

2007
(Fiscal year)

100
0

Of all the substances that the Company handled in fiscal 2007,
27 substances are subject to notification under the Pollutant Release
and Transfer Register (PRTR)*1 legislation. In fiscal 2007, our factories
and offices separately conducted emission control measures but the
total emissions climbed slightly after there was an increase in thenumber of times the equipment was started up and shut down.

Trend in PRTR Substance Emissions(metric tons)
250

21,000External Recycling

49
11

18,400
33
9

7

19

28

8
11

17

1995

2003

2004

20
0

Breakdown Graph of Industrial Waste Treatment in Fiscal 2007

Dichloromethane (methylene chloride)40

PRTR Substances Emissions

25
2
5

12

1
3

9
2005

21
8
9

(5.8%)(5.0%)

30
13
1
3

2006

12

2
3

500

Industrial Effluent and Water Pollutants Emissions

Total
waste
generation

At the Tokuyama Factory, the hydrogen ion concentration (pH)and the suspended solids (SS) concentration in industrial effluent
are under strict control. The Kashima Factory contracts with aterminal treatment plant to treat its effluent. To treat process
effluent that contains organic substances, activated sludge
process equipment has been installed to reduce the chemical
oxygen demand (COD)*2. Since fiscal 2004, our measurements
have been covering nitrogen and phosphorus as well. They are
subject to total volume control under the Water Pollution Control
Law. In fiscal 2007, we saw an slight increase in emissions due tothe high level of equipment operation, but the emission levels arestill considerably below the regulatory limits.

Tokuyama Corporation

200

Group companies(million metric tons)
40
180

98

110

100
68

50
1998

2003

2004

100

100
60
2005

65

2006

70

82

2007
(Fiscal year)

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

30

135

20

10

0

19.8

157

145

153

21.4

21.2

23.0

100

50

2003

2004

2005

2006

2007
(Fiscal year)

Nitrogen and Phosphorus Emissions

0

324,000
Ef f

ec t(89.1%)

ive

Zer

Utilization Rate 9

%

4.1

9%
o - Emission Rate 99.

25,000

99.8

99.9

99.9

94.8

94.3

93.9

94.3

94.1

82.4

15,000(Unit: metric tons)

Effective Utilization Rate (%)

76.9

Zero-Emission Rate (%)

1990

690

630

680

520

520

2003

2004

2005

2006

2007
(Fiscal year)

Recycling Volume
Effective Utilization Rate (%) =(internal and external)

Total Waste Generated

95
90

80
75
70

5,000
0

(%)
100

85
Landfill Volume (metric tons)

20,00010,000

65
60

×100

Landfill Volume

Zero-Emission Rate (%) = 1 -(internal and external)

Total Waste Generated

×100

Process Flow of Industrial Waste Treatment
Incineration (internally)

20,100Landfill (internally)0

Waste generated(metric tons per year)

Item

Fiscal 2004

Fiscal 2005

Fiscal 2006

Fiscal 2007

Nitrogen

94

95

110

112

Phosphorus

7.8

4.0

3.9

4.5

Incineration (externally)

Landfill (externally)

900

500

Waste generated

364,000

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

Tokuyama CSR Report 2008

30,000Internal Recycling(into materials and fuels for reuse)

99.8

36,26035,000364,000

99.8

150
24.9

14.3

1990

(metric tons)
40,000(0.1%)

166

COD emissions

100

Industrial effluent

150(metric tons)
200

Trend in Waste Landfill Volume, Effective Utilization
Rate and Others

Landfill

2007(Fiscal year)

Trend in Industrial Effluent and COD Emissions
237

0

Chloroform

Effective Use Ratio / Zero-Emission Ratio

2,000

21

350
300

272

1,2-dichloroethane

80

Soot emissions

Sox / Nox emissions

12,000Chloroethylene (polyvinyl chloride)

103
100

Landfill Volume(metric tons)
14,000Trend in Hazardous Air Pollutants Emissions(metric tons)
120

Harmony with the Environment

Air Pollutants Emissions

Trend in SOx, NOx and Soot Emissions

37

Tokuyama worked intensively to reduce and recycle waste. The rate of effective
utilization of waste reached 94.1% and the zero-emission rate 99.9%.

Reduction of Air and Water Pollutants / Waste Reduction and Recycling

Reduction of Air
and Water Pollutants

19,800Internal Recycling

324,000

Inside theCompany

Outside theCompany

External Recycling

18,400* The figures represent relevant values for fiscal 2007 (Unit: metric tons).

*2 Chemical oxygen demand (COD) is an indicator of the water pollution level and refers to the amount of oxygen consumed by oxidizing organic substances in water.
*3 Polychlorinated biphenyl (PCB) is an organic chlorinated compound that emits dioxins when burnt in low temperature. Chemically stable and excelling in thermal resistance, chemical resistance,
insulation and other electric characteristics, it was formerly used in many different electric products including transformers and capacitors. However, it has been banned from production or utilization
since 1972 because of its hazardousness to humans. Transformers, capacitors and other PCB-contained products that have already been distributed have to be retained at business establishments.

Tokuyama CSR Report 200838

Harmony with the Environment

The Tokuyama Group continued to develop environmental products andrecycling technologies in fiscal 2007. Initiatives included the developmentof technologies for mass producing polycrystalline silicon for solar cells,
demand for which has been increasing sharply, and operation of averification plant.

A Closed System for Liquid Developers

Joint development with Asahi Kasei Chemicals Corporation and preliminary development of anion electrolyte membranes

Material recycling for used liquid developers

Tokuyama develops hydrocarbon-based electrolyte
membranes for direct methanol fuel cells*1 (DMFCs*2) and anion
fuel cells. DMFCs look set to serve as power sources for cell
phones, laptop computers and other mobile electronic devices.
The development of cation type electrolyte membranes*3 for
DMFCs was conducted jointly with Asahi Kasei Chemicals
Corporation, and successfully produced a high output type and a
low methanol permeability type. The two companies achieved
substantially improved performance with their electrolyte
membranes for DMFCs and began supplying samples. The highoutput type produces output of at least 130 mW/cm2. The low
methanol permeability type is a revolutionary hydrocarbon

Tokuyama and Sharp Corporation finished developing material
recycling technologies for used liquid developers in liquid crystal
panel plants. In April 2005, a closed system to collect, recycle
and reuse development solutions between Sharp Corporation’s
Mie Plant in Taki-gun, Mie Prefecture and Tokuyama’s dedicatedplant have begun commercial operation. We conducted athree-year demonstration trial with a pilot plant to identify andaddress practical problems from a number of different
perspectives. As a result, the system has been operating at a highlevel of satisfaction for three years since the commencement ofcommercial operation.
Going forward, we aim to improve the technologies andreduce costs so that they can be used without anxiety, not only
by liquid crystal panel manufacturers but by many other liquid
developer users as well. We are also developing productmanufacturing and disposal technologies that have low
environmental impacts right through the supply chain,encompassing the use and disposal by manufacturers and usersof liquid developers.

electrolyte membrane with methanol permeation reduced to
one-twentieth the level of the fluorine electrolyte membrane.
We started supplying anion electrolyte membrane samples
two years ago. One of the advantages of anionic fuel cells lies in
the fact that non-platinum catalysts and different types of fuels
can be used. They have been attracting attention as the source ofthe next generation of fuel cells, which are both environmentallyfriendly and can be used in vehicles and elsewhere. At present,
new fuel cells incorporating Tokuyama’s anion electrolyte
membranes are being developed in many different locations
around the world. We are striving to achieve a de facto standard
for anion electrolyte membranes.

VOICE
For the day when a dream fuel cell will
become a reality

Kenji Fukuta

A cation-based electrolyte membrane for DMFCs
developed jointly with Asahi Kasei Chemicals Corporation

Manager
Corporate Development
Dept. (Tsukuba)
Research &Development Div.

Since I was a student majoring inelectrochemistry, the fuel cell has been a dreamtechnology for me. Every day, I feel proud andhappy to be working on the development ofelectrolyte membranes as a key material for fuelcells. A fuel cell consists of many different
materials. A number of issues must be addressed,with electrolyte membrane and other materials
alike. We work together with Asahi Kasei
Chemicals Corporation, our users and universities
to combine technologies and knowledge in aneffort to create a dream battery that has no
impact on the environment.

Clean technologies that help prevent environmental pollution

Polycrystalline Silicon for Solar Cells
Helping to prevent global warming through solar cells
The fight against global warming is an urgent issue that
confronts all humanity. Many countries are working to
manufacture solar cells for photovoltaic power generation with aview to effectively using solar energy, an environmentally cleansource of energy that is available to everybody equally. The power
generation capacity of solar cells produced in 2007 reached 3733
megawatts (Source: PV News, March 2008). This capacity exceeds
the 2001 level of 400 megawatts by a factor of 9.3.
Nearly 90% of solar cells are produced from polycrystalline
silicon. Tokuyama currently supplies some of its polycrystalline
silicon products as a material for its solar cells, as part of theanti-global warming initiative.
We expect to increase our production of polycrystalline silicon
for solar cells by an additional 500 metric tons a year in 2009.
Facility construction is progressing well and according to plan.
The use of solar cells will not increase and help prevent global
warming unless the cost of polycrystalline silicon, used as a

Ion Exchange Membranes

Verification plant for
manufacturing
polycrystalline silicon
for solar cells

material for solar cells, is reduced. We are now running averification test at a plant with an annual production of 200
metric tons using the VLD method that can in theory produce
polycrystalline silicon quickly and efficiently.

ASTOM Corporation, a Tokuyama Group company, helps
resolve environmental problems with its separation technology
based on the NEOSEPTA ion exchange membranes and the
ACILYZER high performance electrodialyzer incorporating
NEOSEPTA. Ion exchange membranes facilitate the selective
permeation of positive and negative ions dissociated in solution.
Traditionally, ion exchange membranes have been used in salt
production, food, fresh water generation, pharmaceuticals andthe treatment of waste liquids. Today, ion exchange membranes
have application in the separation and collection of acid andalkaline in waste liquids, the treatment of leachate at waste
disposal facilities and the removal of nitrate nitrogen fromgroundwater as part of initiatives to prevent environmental
pollution. Ion exchange membranes are therefore attracting theattention of the international community as a clean technologythat serves to stop environmental pollution.
In fiscal 2007, they were used to refine organic acid forbiodegradable plastics, for the high-efficiency resource recycling

The Closed System for Liquid Developers at
Sharp Corporation’s Mie Plant

Undiluted Liquid Developers

Dilution andAdjustment
Equipment

Photolithography
Process
Used Liquid
Developers

Harmony with the Environment

Development of Hydrocarbon-based Electrolyte Membranes for Fuel Cells

Tokuyama(Dedicated Plant)

Used-Liquid Developers

Recycling
Equipment

Sharp Corporation’s
Mie Plant

Development of Environmental Products and Technologies

Development of Environmental
Products and Technologies

ASTOM Corporationof pickling wastewater and for amine refinement from waste
amine catalysts emitted from petrochemical plants. These
separation technologies will be of increasing importance in thebattle against global warming. It is hoped that they will be
actively used in creating the recycling society of the future.

The ACILYZER
high performanceelectrodialyzer
based on ion
exchangemembranes

Terminology *1 A fuel cell is a chemical battery where the reverse of water electrolysis takes place. In other words, hydrogen fuel reacts with oxygen in the air to produce electric power.
*2 A direct methanol fuel cell (DMFC) is a fuel cell in which the catalytic electrode in the cell transforms the methanol fuel into hydrogen ions.
*3 An electrolyte membrane is a membrane that selectively conducts ions.

39

Tokuyama CSR Report 2008

Tokuyama CSR Report 200840

Site Report
Tokuyama Factory
Location:

Seiichi Shiraga

General Manager ofTokuyama Factory,
and Managing Director

Main Cement, inorganic and organic chemical products, polycrystalline
Products silicon, silica, vinyl chloride and others* For further details about the factory, see page 11.

The Triple Shanon Plastic Window Sash
Releasing higher performance plastic window sashes to serve energy conservation(CO2 reduction) in households
Shanon Corporation, one of Tokuyama’s group companies,
manufactures and sells the Shanon Window, plastic sashes, withexceptional levels of air tightness, thermal insulation, sound proof
and moisture condensation proof characteristics.
To prevent global warming, all companies and citizens are
required to reduce the emissions of carbon dioxide and othergreenhouse gases. While efforts to reduce emissions are continuing
apace in the industrial sector, there is a huge gap between the
reduction target and the actual results in the household sector.
Effective solutions are needed in this area. The residential
construction industry takes many different actions. Among others,
plastic window sashes are attracting attention for their superior
performance in reducing energy as they add a high level of
air-tightness and heat insulation when used in residential houses.
We now see some houses without heaters emerging in themarket. Their Q value*1 is low at 1.0 W/m2k. The lower the Q
value, the higher the level of heat insulation. In creating thesehouses, it is essential to improve the performance of plastic
window sashes for high-quality windows.
In April 2008, Shanon Corporation released the Triple Shanon,
which features the lowest K value at 1.23 W/m2k of any product in
the Japanese window sash market. A low K value*2 reflects a highlevel of heat insulation. With the Triple Shanon, electricity costs areabout 15% lower*3 than with an ordinary aluminum-plastic
composite window sashes. This product helps cut carbon dioxide
emissions.

Shanon Corporation

Performance Data
Unit

Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

SOx Emissions

metric tons

1,880

1,720

2,310

1,940

1,930

NOx Emissions

metric tons

10,90011,50011,40012,300

11,100

Soot Emissions

metric tons

254

272

259

267

223

Industrial Water Consumption mil. metric tons

47.1

50.1

49.5

45.8

41.1

Effluent

mil. metric tons

19.6

21.1

21.3

22.8

24.8

COD Emissions

metric tons

131

141

152

148

161

Total Nitrogen Emissions

metric tons

-

94

95

110

112

Total Phosphorus Emissions metric tons

-

7.8

4.0

3.9

4.5

PRTR Substances Emissions metric tons

95

66

57

63

67

Waste Emissions

thousand metric tons

383

395

349

360

363

Waste Final Disposal Volume metric tons

650

610

660

480

480

thousand GJ

51,80053,00053,90054,10055,700CO2 Emissions (in fossil fuel equivalents) thousand metric tons

4,640

4,800

4,910

4,960

5,130

4

5

5

3

6

Energy Consumption
Complaints

complaints

Kashima Factory
Location:
Employees:
Factory area:
A Cross-Section View of the Window Sash

26, Sunayama, Kamisu,
Ibaraki Prefecture
Osamu Iwamoto
81
General Manager ofKashima Factory
101,000 square meters

Tokuyama Corporation’s Kashima Factory
Main
Products
Pharmaceutical bulks (X-ray contrast agents, stomach andduodenal ulcer treatment drugs); optical materials (plastic lensmonomer, light modulating materials, hard coat solutions);
materials for electronic materials and metal washing solutions

Tokuyama Dental Corporation’s Kashima Plant
Dental materials (restorative materials, adhesives, denture relining
materials, impression materials, plaster materials and investment
materials)

A&T Corporation’s Kashima Works
Reagents for clinical analysis (electrolyte analysis reagents andglucose analysis reagents)

Tokuyama Dental Corporation has changed the materials for someproducts from dichloromethane to water-based materials. The
company will roll out the change of materials for other products to
reduce the level of dichloromethane emissions into the atmosphere.
Material recycling of waste acetone and waste toluene has been in
operation since fiscal 2005. In fiscal 2007, material recycling wascommenced to recover iodine from effluent containing iodine
compounds. In the same fiscal year, the percentage of effectively used
waste rose three percentage points, to 74%.
Plastic window sashes, “Shanon Window”

Government
Emissions
DisplaceOrdinance
Number To Air To Water To Soil Subtotal ment

Substance

Cresol67

0.0 24.0

0.0 24.0

1,2-Dichloroethane

116

13.1

0.0

0.0 13.1

0.0
0.1

Chloroethylene (Polyvinyl Chloride)

77

12.3

0.0

0.0 12.3

0.0

Toluene

227

6.8

0.0

0.0

6.8 160.8

1,2-Dichloropropane

135

4.5

0.0

0.0

4.5 211.8

Water soluble zinc compounds

1

0.0

2.4

0.0

2.4

0.0

Chloromethane (Methyl Chloride)

96

1.9

0.0

0.0

1.9

0.0
0.0

Dichloromethane (Methylene Chloride)

145

1.0

0.0

0.0

1.0

1,2-Epoxypropane (Propylene Oxide)

56

0.6

0.0

0.0

0.6

2.6

Chloroform

95

0.5

0.0

0.0

0.5

0.0

Carbon Tetrachloride

112

0.1

0.0

0.0

0.1

0.0

Benzene

299

0.0

0.0

0.0

0.0

0.0

2,2’-Azobisisobutyronitrile

13

0.0

0.0

0.0

0.0

0.0

2-Aminoethanol

16

0.0

0.0

0.0

0.0

3.6

Ethylene Glycol

43

0.0

0.0

0.0

0.0

0.0

Nickel compounds

232

0.0

0.0

0.0

0.0

0.0

Hydrazine

253

0.0

0.0

0.0

0.0

0.0

Di-n-Butyl Phthalate (DBP)

270

0.0

0.0

0.0

0.0

0.0

Hydrogen Fluoride and its water soluble salts

283

0.0

0.0

0.0

0.0

0.0

Boron and its compounds

304

0.0

0.0

0.0

0.0

0.0

Dioxins

179

99.4

4.8

0.0 104.2

0.0

Total (excluding dioxins)

40.9 26.4

0.0 67.3 378.9

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

Site Report

1-1, Mikage-cho, Shunan,
Yamaguchi Prefecture
Employees:
1,630
Factory Area: 1,910,000 square meters(total area)

PRTR Substances Emissions and Displacement
Unit: metric tons
by Substance in Fiscal 2007
(mg-TEQ for dioxins only)

Performance Data (in total of three companies)
Unit

Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

Industrial Water Consumption thousand metric tons

96

91

112

110

107

Effluent

thousand metric tons

109

107

126

125

129

COD Emissions

metric tons

4

4

5

5

5

PRTR Substances Emissions

metric tons

3

3

2

3

4

Waste Emissions

metric tons

634

769

749

779

965

Waste Final Disposal Volume metric tons

43

29

15

34

32

Energy Consumption

46

45

51

53

58

2,170

2,180

2,130

2,170

2,320

0

0

0

0

0

CO2 Emissions (in fossil fuel equivalents)
Complaints

thousand GJ
toncomplaints

Tokuyama Factory / Kashima Factory

Harmony with the Environment

PRTR Substances Emissions and Displacement by Substancein Fiscal 2007 (in the total of three companies)
Unit: metric tons
Substance

Government
Emissions
DisplaceOrdinance
Number To Air To Water To Soil Subtotal ment

Dichloromethane (Methylene Chloride)

145

1.6

0.0

0.0

1.6

6.9

Chloroform

95

1.1

0.0

0.0

1.1

12.6

Toluene

227

1.0

0.0

0.0

1.0

2.7

Methyl Methacrylate

320

0.0

0.0

0.0

0.0

0.0

Acetonitrile

12

0.0

0.0

0.0

0.0

2.5

1,4-Dioxane

113

0.0

0.0

0.0

0.0

0.1

Ethylene Glycol

43

0.0

0.0

0.0

0.0

4.6

N,N-Dimethylformamide

172

0.0

0.0

0.0

0.0

26.9

2-Vinylpyridine

256

0.0

0.0

0.0

0.0

0.2

Formaldehyde

310

0.0

0.0

0.0

0.0

0.0

2,3-Epoxypropyl Methacrylate

316

0.0

0.0

0.0

0.0

0.0

Alpha-Methylstylene

335

0.0

0.0

0.0

0.0

0.0

3.7

0.0

0.0

3.7

56.4

Total

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

Terminology *1 The Q value is the heat loss coefficient and represents the heat insulation performance of the entire building.
*2 The K value is the heat transfer coefficient and represents the heat insulation performance of the wall, floor or other parts of the building.
*3 The expression, “15% lower,” is based on the new reference rate for electric power set by the Home Electric Appliances Fair Trade Conference under the SMASH simulation program.

41

Tokuyama CSR Report 2008

Tokuyama CSR Report 200842

Site Report

Activities of Group Companies
ISO 9001 and ISO 14000 Certification Status of Eleven Group Companies
Sun Tox Co., Ltd.

●●

Shanon Corporation●

̶

Tohoku Shanon Co., Ltd.

●●A&T Corporation●●

Figaro Engineering Inc.

●●

Tokuyama Dental Corporation●●

Tokuyama Siltech Co., Ltd.

●●Sun Arrow Chemical Co., Ltd.

̶●Power Consumption

thousand kWh

2,790

3,020

3,210

3,540

3,470

ASTOM Corporation●●

Waste Plastics Emissions

metric tons

132

150

172

186

158

Shin Dai-ichi Vinyl Corporation̶●Effective Used Waste Plastics Volume metric tons

131

150

172

186

158

Tokuyama Polypropylene Co., Ltd.

●●

Waste Final Disposal Volume metric tons

0.3

0.2

0.1

0

0

Steam Consumption

metric tons

240

240

240

240

240

Industrial Water Consumption thousand metric tons

65

65

65

65

65

Tokuyama Plant

Annex to Tokuyama Bldg. 1-4-5, Nishi Shimbashi, Minato-ku, Tokyo

Business:

Manufacture and sale of biaxial-oriented polypropylene films andRC activities of the Tokuyama Plant
Located within the premises of Tokuyama Corporation’s Tokuyama
Factory, the Tokuyama Plant produces polyvinyl chloride compounds
for plastic window sashes. Because of their effectiveness in energy
conservation, plastic window sashes are in growing demand.
In fiscal 2007, as in the preceding year, it recycled waste plastics into
resources. Consequently, it succeeded in turning all such waste into
valuable resources and in reducing the final volume of disposed ofwaste to zero.
Ensuring health and safety and disaster prevention are part of the

7-7, Harumi-cho, Shunan,
Tokuyama Plant Location:
Yamaguchi Prefecture

Plant Manager:
Hideki Tanaka
Employees: 181
Area: 55,800 square meters

Plant Manager:
Toshiyuki Yamaoka
Employees: 148
Area: 24,100 square meters

Located in the Itako Industrial Park in Ibaraki Prefecture, the Kanto Plant
produces 25,000 metric tons of biaxial-oriented and cast polypropylene
films per year. As a Type I Energy Management Designated plant, it has been
making strides in energy conservation. In fiscal 2004, it introduced aco-generation system to ensure the effective use of energy. As a result, its
consumption of heavy oil in the boilers fell below half the level for fiscal
2004. In addition, the number of unanticipated shutdowns caused by power
failure was reduced to nearly zero.
In February 2008, the Kanto Plant obtained certification of conformity of
its occupational safety and health system from the Japan Industrial Safety
and Health Association. With ISO 14001 and ISO 9001 certification, it
adopts environmental, safety and quality management systems. Nominating
the thirtieth day of each calendar month as No-Garbage Day, it engages incleaning activities in the neighboring areas.

Located on the premises of Tokuyama Corporation’s Tokuyama Factory,
the Tokuyama Plant produces 23,000 metric tons of biaxial-oriented
polypropylene films per year. In conjunction with the Tokuyama Factory, it
addresses environmental preservation and maintains ISO 14001
certification. Since fiscal 2005, it has been slashing manufacturing losses asa means of reducing unit energy consumption. The plant is committed torecycling all generated manufacturing losses.
It obtained certification for the Occupational Health and Safety
Management System in February 2008. Going forward, it will be introducing
health and safety activities centering on risk assessment and developing
them into a management system through a PDCA cycle.
Under the slogan of “Take pleasure in production, be stringent withquality and adhere to safety,” the Tokuyama Plant aims to implement plant
management in a manner that earns the trust of society, the customers andemployees.

Performance Data
Unit

Power Consumption

Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

thousand kWh

27,81028,470 28,480

kl

1,460

1,470

910

Heavy Oil Consumption

Unit

Unit Energy Consumption

29,73029,271600

639Power Consumption

L/kL
thousand kWh

Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

481
36,170

489

465

453

457

35,740 35,770

34,23034,830SOx

metric tons

2.0

2.0

0.7

0.6

0.4

0.3 MPa Steam Consumption metric tons

3,080

2,610

2,930

4,220

3,410

NOx

metric tons

3.3

3.3

0.9

0.5

0.7

2.1 MPa Steam Consumption metric tons

42,27042,760 44,830

42,27043,830

Soot Particles

Waste Emissions

metric tons

0.3

0.3

0.04

0.03

0.04

Industrial Water Consumption metric tons

52

53

63

59

66

Waste Emissions

27

90

22

52

60

metric tons

Waste Final Disposal Volume metric tons
COD Emissions

metric tons

20

0

0

9

29

0.02

0.02

0.02

0.01

0.01

Kitahama Chuo Bldg., 2-2-22, Kitahama, Chuo-ku, Osaka

Business:

Manufacture and sales of polyvinyl chloride compounds

1-2, Harumi-cho, Shunan, Yamaguchi Prefecture

Plant Manager:
Shigefumi Kunihiro
Employees: 28
Area: 3,280 square meters

cast polypropylene films (including co-extrusion multi-layer films)

Performance Data

Tokuyama Corporation (100%)

Head Office:

Unit

Ownership: Tokuyama Corporation (100%)

Head Office:

Ownership:

Performance Data

● = Included in the certified sites

Date of Foundation: February 14, 1992

Kanto Plant Location: 3075-18, Shimasu, Itako, Ibaraki Prefecture

Date of Foundation: February 1, 1999

ISO 14001● = Certified

Sun・Tox Co., Ltd.

Sun Arrow Chemical Co., Ltd.

ISO 9001

metric tons

100

80

160

180

200

Waste Final Disposal Volume metric tons

4

2

0

1

11

Tokuyama Polypropylene Co., Ltd.
Tokuyama Plant

Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

responsibility that the plant has to meet. Implementing the managementof equipment and operations in compliance with applicable laws andregulations and implementing voluntary activities for 5S practice,
preventing careless mistakes, training in risk anticipation and the like,the plant successfully maintained the accident-free status. As a memberof the Tokuyama Group, it will place top priority on environmental andsafety considerations and constantly seek corporate development aswell as the coexistence and mutual prosperity with the local
community.

Site Report

Group Company

Date of Foundation: April 2, 2001
Ownership:

Tokuyama Corporation (50%) and Prime Polymer Co., Ltd. (50%)

Head Office:1-1, Harumi-cho, Shunan, Yamaguchi Prefecture

Business:

Manufacture and sales of polypropylene resins andpolypropylene compound resins

1-1, Harumi-cho, Shunan, Yamaguchi Prefecture

Performance Data
Unit

Plant Manager:
Hiroshi Horii
Employees: 65
Area: 70,997 square meters

Located within the premises of Tokuyama Corporation’s Tokuyama
Factory, the Tokuyama Plant engages in manufacturing and selling
200,000 metric tons of polypropylene resins per year and 5,000 metrictons of polypropylene compound resins per year.
This plant runs three management systems: the safety management
system, the environmental management system and the quality
management system. Its RC activities are integrated with those of theTokuyama Factory.
Its safety management activities are based on the risk assessment ofprocesses, equipment and work. Its zero-accident status has been
maintained for 33 years, including the period when it was the
Polypropylene Manufacturing Department.

Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

Industrial Water Consumption thousand metric tons

402

410

443

387

417

Waste Emissions

metric tons

106

85

0

0

161
25*

141

Waste Final Disposal Volume metric tons

134
20*

Unit Energy Consumption Index(Fiscal 2002 = 100)

86

87

79

79

85

%

4

* Year with periodic repairs

In fiscal 2007, it was highly commended for the presentation ofoutside examples regarding its efforts in non-routine work, the handing
down of techniques to future generations and anti-HHK*1 activities. The
plant was honored to receive an award from the president of the
Yamaguchi Prefecture Federation of Associations for the Safety ofHazardous Materials, winning the fiscal 2007 prize as a business withoutstanding handling of hazardous materials.
Fiscal 2008 is a year in which periodic repair work, which takes
place every other year. To meet its goals of maintaining its zero-accident
status, reducing its environmental impact and not receiving any
complaints concerning quality, it will be stepping up its RC activities.

Terminology *1 HHK stands for hiyari, hatto and kigakari and refers to careless mistakes and situations that cause concern.

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Tokuyama CSR Report 2008

Tokuyama CSR Report 200844

Activities of Group Companies

Tokuyama understands that responsible care activities should be
conducted on a group-wide basis. The Company has signed RC
management agreements with Tokuyama Group companies both
inside and outside Japan engaging in production activities tosupport their activities.
We collect data on the environmental impact of groupcompanies and their safety management indicators and conductsafety and environmental audits at the rate of several groupcompanies per year. By means of these actions, we monitor andenforce RC activities conducted at individual group companies.
The trend of statutory regulations and other information are sharedwith our group companies.
We also provide our group companies with assistance inacquiring ISO 14001 and ISO 9001 certification.

Comments from Third Parties

History of Tokuyama’s RC Activities

A Review on Tokuyama’s CSR Report 2008

July 1991
March 1993
March

Eriko Nashioka
Certified Public Accountant and Director of the Institute for Environmental Management Accounting
ProfileA part-time lecturer in environmental accounting and environmental
auditing for the Faculty of Commerce of Doshisha University. Aftercompleting her studies in environmental management at theDoshisha University Graduate School of Policy and Management in
1997, she joined the Environmental Auditing Section, the Third
Department at the Osaka Office of Century Ota Showa & Co.,
currently Ernst & Young ShinNihon LLC, where she worked as aconsultant concerning accounting audits (the Commercial Code, theSecurities Exchange Law and the Small and Medium Business andInvestment & Consultation Companies Law), environmental audits
and environmental reports. From April 2001 to March 2004, she waschief researcher in the Enterprises and the Environment project run by
the Kansai Research Center of the Institute for Global Environmental
Strategies. In April 2004, she joined the management of the Institutefor Environmental Management Accounting. She was involved in a
number of committees, including the technical subcommittee on
environmental accounting in the Management Research Committeeof the Japanese Institute of Certified Public Accountants and othercommittees under the Ministry of the Environment and the Ministry of
Economy, Trade and Industry. She is a member of the primary
screening committee for the Environmental Report Award
co-organized by Toyo Keizai Inc.

■ Evolving into a Company Based on CSR Management
Tokuyama’s CSR Report convinces me that Tokuyama is anhonest, diligent company with a long history. Independently of
CSR, I feel that the Company has long been taking a sincere
attitude towards its stakeholders. However, CSR management
in its optimum form today needs to combine individual actions
systematically. I understand that Tokuyama is aware of thatand is now striving towards it.
■ A Management Structure for Achieving theCentennial Vision
Envisioning the optimum form of the Company in its
Centennial Vision after marking the 90th anniversary,
Tokuyama has adopted CSR as a basis of its management. Thatreminds me of its strong determination to push ahead with
CSR activities. I think the Company’s continuation in the past
90 years and its aspiration toward its centennial are supported
by its ability to adapt to new times.
This report refers to several goals and plans. I believe they
are all backed by Tokuyama’s philosophy and that they are
implemented in a sound manner. However, I feel that theinterrelations among the separate plans are a bit toocomplicated. Among other things, it is an urgent priority toreorganize and integrate the principle behind the responsible
care activities that have long been avidly performed with the
new concept of CSR management. The Centennial Vision
deserves high marks as a statement of what the enterpriseshould be like in the future and I hope that it will be realized.
■ The Notion of Human Resources
Human resources are another foundation that can becompared to CSR. I realize that Tokuyama values people. The
slogan of “standing tall like a sunflower proudly facing the sun”
is a good phrase that depicts the ideal style of business frompeople’s standpoint. Tokuyama is surrounded by a broad arrayof human stakeholders including its employees. People
becomes assets through enhanced communications. It is a key
challenge in the future CSR management. I hear that
Tokuyama will be building a PDCA system for personnel andother social affairs. I expect that this will further enhance CSR
management.
■ Environmental Preservation Activities in the Core
Business
I see from CSR Report that Tokuyama has long been
actively engaged in environmental preservation activities. At
the Tokuyama Factory, the birthplace of the business, greater
environmental efficiency is consistently sought all through theprocesses, including installation of private power plants andintegration. The Company’s business operations are linked
with environmental conservation to ensure that its corebusinesses are matched with the age of the environment. For
example, Tokuyama makes use of waste generated by external
parties as an ingredient in its cement business and producesmaterials for solar cells and the development of materials forfuel cells. These domains are very promising in terms ofinitiatives to prevent global warming and it is hoped that
Tokuyama will contribute to the environment as well as the
economy.
■ Information Disclosure and Awareness-Raising
Activities
The report is of a length that can be easily digested andprovides footnotes for technical terms. It is very
reader-friendly. Showing how Tokuyama’s products are foundin everyday life, it is designed to stress Tokuyama’s close
involvement with the public. The report will be even easier toread if the color scheme and consistency are improved. I hopethat the CSR Report will be actively used as a means ofdeepening the understanding of employees and otherstakeholders and for developing them into human assets.

Global Environmental Issues Committee establishedEstablishes the RC Administration Committee
Institutes a voluntary plan for Total Management ofEnvironment, Safety and Quality
April 1994
Acquires ISO 9002 certification for high-purity
isopropyl alcohol
June
Develops product warranty systems, including productand labeling assessments
April 1995
Joins the Japan Responsible Care Council
May 1997
Acquires ISO 9001 certification for cement
manufacturing
September
Publishes the first edition of the RC Report
April 1998
Acquires ISO 9001 certification for the manufacturingof dental materials
DecemberAcquires ISO 9001 and 9002 certification foraluminum nitride and functional powders and ISO
14001 certification for the Tokuyama Factory
January 1999 Acquires ISO 14001 certification for the Kashima Factory
June
Acquires ISO 9002 certification for chemical products,
polypropylene, films and others
December
Sets up the Ecological Management Initiative
Department
DecemberAcquires ISO 9002 certification for polycrystalline
silicon, organic solvents and suchlike
August 2000 Creates the Recycling and Environmental Business
Department
April 2001
Establishes Yamaguchi Eco-Tech Corporation.
April 2002
Acquires ISO 9002 certification for vinyl chloride
monomer and polyvinyl chloride
June
The Kashima Factory becomes the recipient of theAward for Earth-Friendly Companies from the Ibaraki
Prefectural Government.
March 2003 Recipient of an award from the Director-General of theIndustrial Science and Technology Policy and Environment

Bureau of the Ministry of Economy, Trade and Industry in
the Award for Resource Recycling Technologies and Systems
April
Renews ISO 9001 certification under 2000 standard
and concurrently extends its scope to the sales sector
December
Undergoes the Responsible Care verification process.
The Tokuyama Factory achieves a Type II zero-accident
record (8.1 million hours for the chemical industry) as
defined by the Ministry of Health, Labour and Welfare
October 2004 Figaro Engineering Inc. acquires ISO 14001 certification.
October
The Kashima Factory becomes the recipient of a prize
presented by the Director-General of Labor Bureau of
the Ibaraki Prefectural Government.
February 2005 The Tokuyama Factory becomes the recipient of a
prize presented by the Director-General of the Agency
of Natural Resources and Energy for Factories with
Distinguished Energy Management (electricity sector).
March
Acquires Yamaguchi Prefecture Eco-Factory certification
for the Tokuyama FactoryJune
The Tokuyama Factory achieves a Type III zero-accident
record (12.2 million hours for the chemical industry) as
defined by the Ministry of Health, Labour and Welfare.
September
ASTOM Corporation acquires ISO 9001 certification.
August 2006 Shanghai Tokuyama Plastics Co., Ltd. acquires ISO 9001
certification.
October
Tokuyama Mtech Corporation acquires ISO 9001
certification.
December
The Kanto Plant of Sun Tox Co., Ltd. acquires ISO 14001
certification.
April 2007
Establishes the Corporate Social Responsibility Division.
January 2008 The Tokuyama Factory becomes the recipient of a
prize presented by the Minister of Economy, Trade andIndustry in the Award for Excellent Energy Management
Plant.

Editor’s Notes
This edition of the CSR Report has been produced with a focus on reporting
Tokuyama’s CSR activities in the clearest possible manner. This is our second edition of
CSR Report and we at the editing team worked to further enhance the reporting onsocial commitment.
Year 2008 marks the 90th anniversary of Tokuyama’s establishment as well as theinitial year of our new Three-Year Plan. Giving consideration to these factors, we havedesigned this CSR Report to promote an understanding of our initiatives in the lead-up
to the Company’s centennial.
On the other hand, we realize the need to continue improving the content of the
CSR Report as well as the activities themselves. We are happy to accept your frank
feedback and suggestions so that we can review your suggestions to produce anenhanced CSR Report in the future.

For inquiries, please contact:

Receiving Comments from Third Parties
I think that we have received on-target comments andremarks on our current circumstances and problems. In
particular, we realize that it is an important task to reorganize
and integrate the principle of responsible care and other past
activities and the principle of CSR management. We will be
reviewing these activities from the standpoint of stakeholders toclearly identify the direction of our CSR management. And wewill be building a mechanism for efficient operation of the
PDCA cycle with the aim of evolving into a manufacturing
company in harmony with society.

Etsuro Matsui,Managing Director and General Managerof the Corporate Social Responsibility Division

Responsible Care Management Department,
Corporate Social Responsibility Division

Tokuyama Corporation
Shibuya Konno Bldg., 3-3-1 Shibuya, Shibuya-ku, Tokyo 150-8383 Japan
Phone +81-3-3499-8478
Fax +81-3-3499-8961* To ensure accessibility to as many readers as possible,
the CSR Report is also available via Tokuyama’s website.

http://www.tokuyama.co.jp/enviro/

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Tokuyama CSR Report 2008

Tokuyama CSR Report 200846