1

Online PDF Version

Special Feature 1

Working Together with Local Communities

Detailed Data

Third-party Review

17

Environmental Data for Tokuyama

20

Third-party Review

17

Emissions of SOx, NOx, and Soot

20

In Response to Third-party Review

2

The Tokuyama Factory—Discovering theSecrets to Safety

11

Community Dialogues on Responsible Care

4

Tokuyama’s Research and Development—
Delivers Technologies That Make Society
Safer

Accident Prevention and Occupational
Health and Safety

17

Discharge of Nitrogen and Phosphorous

17

Waste Management

12

Tokuyama’s Commitment to Safety and
Accident Prevention

18

Energy Consumed on a Per-Unit Basis at
the Tokuyama Factory

12

Tokuyama’s Commitment to Occupational
Health and Safety

18

Amount of Waste Matter and By-Products
Used to Produce Cement

18

Material and Thermal Recycling Amounts in
Cement Production

18

Energy Consumption

Tokuyama’s Environmental Management
6

Performance in Fiscal 20137

Environmental Accounting

7

Measures to Help Combat Global Warming

Site Reports

9

Reducing Atmospheric Emissions and Water
Pollution

13

Tokuyama Factory

18

Emissions of CO2

10

Recycling and Reducing Waste

14

Kashima Factory

19

Emissions of PRTR-Designated Substances

15

Group Company Reports

19

Emissions of Hazardous Air Pollutants

19

Discharge of Industrial Effluent and Levelsof COD

19

Breakdown of Waste Treatment Methods

19

Landfilled and Recycled Waste

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Special Feature

Tokuyama’s Environmental
Management

Working Together with
Local Communities

Accident Prevention andOccupational Health and Safety

Site Reports

Detailed Data

Third-party Review

2

1 The Tokuyama Factory—Discovering the Secrets to Safety
2 Tokuyama’s Research and Development—Delivers Technologies That Make Society Safer
Integrated operations

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

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

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

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

The factory carries out integrated
production of inorganic and organic
chemicals, cement, electronicmaterials, and other products“Zero emissions” of waste
Achievement of “zero emissions”
target:99.9％

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

552megawatts[see p.25]

Security andaccident
prevention
Achievements of
the Tokuyama Factory

Tokuyama Factory General Manager Hideki Adachi (second from left) discusses safety with employees from affiliated companies>> Earning stakeholders’ trust for almost a century
Situated at the site where the Company was founded, the Tokuyama Factoryis the Group’s main manufacturing facility, and the products it manufactures
account for about 90% of non-consolidated sales. Since the Company wasestablished in 1918, the factory has been producing a diverse range of products including soda ash, caustic soda, cement, polyvinyl chloride, polycrystalline silicon, aluminum nitride ceramics, and various kinds of chlorine-derived
products.
Reflecting the Company’s business growth over almost 100 years, operations at the Tokuyama Factory have become highly integrated, with many
plants linked together and operational units working seamlessly to effectively
utilize raw materials, products, byproducts, and waste matter. Moreover, thefactory pursues an open integration model that goes beyond in-house connections to involve the many other companies at the Shunan Petrochemical
Complex in terms of electricity, raw material supplies, and reuse of waste. Thislean production system enables all of the companies to achieve a high level of
efficiency, which has become one of Tokuyama’s strengths.
Another one of the Company’s strengths is the relations of trust it has built
up with all of its stakeholders. Making the most of its business activities,

Tokuyama continuously engages with employees, affiliated companies andsuppliers, as well as government officials and members of the local community. The Tokuyama Factory, in particular, has been giving the highest priority
to safety and accident prevention initiatives as a long-established member ofthe community, while continuously manufacturing products that are useful for
peoples’ lives.

>> Ensuring safety by fostering goodcommunication among all levels of personnel
and affiliated companies
Working together with the local community, everyone at the Tokuyama Factory accepts the important responsibility of ensuring safety. With around 3,000
workers onsite, including members of affiliated companies, the Tokuyama
Factory practices safety based on the principle that no one should ever leave
the premises with an injury, following the slogan of “Going to work healthy andgoing home happy.”
Production lines operate 24 hours around the clock over three alternating
shifts. During the changeover of shifts, workers closely share information
about safety and accident prevention in addition to work duties. Safety patrol
teams also check production facilities on a daily basis.

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

Special Feature

Tokuyama’s Environmental
Management

Working Together with
Local Communities

Accident Prevention andOccupational Health and Safety

Site Reports

Detailed Data

Third-party Review

3

1 The Tokuyama Factory—Discovering the Secrets to Safety
2 Tokuyama’s Research and Development—Delivers Technologies That Make Society Safer

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

The Occupational Health and Safety Committee holds meetings every
month for the entire site, including affiliated companies. Meeting participants discuss countermeasures based on reported cases of problems andaccidents both within and outside the Tokuyama Group, and share safety
information within the site. Taking this information into account, each manufacturing division and section holds safety meetings every month. Discussions
regarding safety-related initiatives are also held semi-annually with affiliatedcompanies involved in equipment inspections and maintenance. In these discussions, cases of near misses* that have been reported as well as proposals
for specific improvements are being effectively applied in efforts to avoid hazards and prevent accidents.
* Although near misses do not result in an accident or disaster, by identifying, recording, and sharing information on
cases in which it is reasonable to assume that such mistakes could have directly led to such an incident, activities
can be undertaken to prevent serious accidents or disasters before they occur.

>> Everyday care and attention make safe andreliable operations possible
Located at the Tokuyama Factory’s East Plant, the Chemicals Manufacturing
Department No. 2 produces organic solvents, which are essential for man-ufacturing polyvinyl chloride resin, as well as all kinds of products, which ismade using ethylene dichloride and chlorine sent from the Chemical Manufacturing Department No. 1 via a pipeline in an undersea tunnel. By diligently carrying out safety and accident-prevention activities every day, the department’s
95 workers have achieved an accident-free record for eight consecutive
years—equivalent to 1.5 million man hours.
With the goal of extending the department’s accident-free record to 10
years, covering about 2 million man hours, experienced workers are making
efforts to hand down the skills and expertise needed to avoid hazards as wellas their safety-first approach to the next generation of workers. Every day
before work commences, the department holds safety meetings to raise eachmember’s awareness of hazards and to facilitate communication between
experienced and young workers. Furthermore, to enable everyone to correctly
and safely carry out the numerous operations conducted on production lines,
young workers are paired up with skilled personnel, and they repeatedly perform tasks together so that the younger workers can learn proper procedures.
In this way, new and young workers can learn and master practical skills,
including techniques and pointers that are difficult to teach outside of the shop
floor, methods for checking safety, and the importance of following proper
sequences of procedures and their effect on the processes that follow.

Young workers learn skills and knowledge about preventing accidents from experienced personnel

The first step to safety is to be aware of hazardous environments

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

Yukihiro Miyamoto
General Manager,
Chemicals Manufacturing
Department No. 2

To put it bluntly, there is no safe place at a chemicalplant. Everyone is surrounded by many potential hazards, so keeping aware that one is in a dangerous area
should be the first precaution. Without that approach, I
don’t think the plant can be safe. Since there is always
pressure on the shop floor to increase production efficiency, everyone has a duty to ensure safety. So there
can be no individual variations in the way we perceive
danger—each and every one of us must properly recognize the dangers.
There are no magic tricks for guaranteeing safety.

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

Special Feature

Tokuyama’s Environmental
Management

Working Together with
Local Communities

Accident Prevention andOccupational Health and Safety

Site Reports

Detailed Data

4

Third-party Review

1 The Tokuyama Factory—Discovering the Secrets to Safety
2 Tokuyama’s Research and Development—Delivers Technologies That Make Society Safer

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

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

Neutron-detection Scintillators
Leverage the Innovative Power ofChemistry to Make Society Safer>> Creating New Technologies and Novel Materials That
Benefit Society
Based on its R&D principle of contributing to the development of society
through chemistry-derived technologies, Tokuyama is pursuing two overarching objectives in its research and development: to create unique, world-leading technologies by combining the Company’s established core technologies
with all-new technologies, and to produce original products by applying thesetechnologies to meet the needs of the market.
To achieve these objectives, Tokuyama is proactively expanding its open
innovation activities. The Company is collaborating in joint-research projects
with universities and research institutes while focusing on fields it has developed over many years as a chemical
manufacturer. These fields include organic and inorganic material synthesis,
purification techniques, crystallization methods, electrochemistry, and polymer chemistry technologies. The Company is also striving to accelerate its
development of technologies and products that can help solve social issues
and meet the need for new materials that can contribute to clean energy andenergy conservation.

>> Specializing in Key Areas and Speeding Up Development

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

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

>> Leveraging Crystallization Technologies—One of Tokuyama’s Strengths
As shown in the chronological chart below, Tokuyama has been carrying out
research and development on optical single crystals since around 2000. Overthe years, Tokuyama has developed and accumulated a large number of original technologies regarding crystal growth, strain elimination, furnace design,
optical evaluation and processing of optical crystals.
Meanwhile, countries all around the world began to tighten homeland security to combat terrorism in the wake of the simultaneous terrorist attacks
on the United States on September 11, 2001. In this context, a lot of neutron
detectors have been rapidly deployed, especially in the United States, as ameans to prevent the illicit proliferation of nuclear threats like plutonium andWhat is a neutron-detection
scintillator?

Neutrons

6

Li
EnergyScintillator
Light

Photodetector

enriched uranium.
With the suddenly growing demand for neutron detectors, helium-3, the gas
mainly used for neutron detection up until that time, fell into a supply crisisand became diffi cult to procure internationally due to the soaring price in themarket. Consequently, there were urgent demands for the development of anSpecial Feature

Tokuyama’s Environmental
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Working Together with
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Accident Prevention andOccupational Health and Safety

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Detailed Data

5

Third-party Review

1 The Tokuyama Factory—Discovering the Secrets to Safety
2 Tokuyama’s Research and Development—Delivers Technologies That Make Society Safer

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

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

alternative detector consisting of solid material instead of helium-3.
In response to this situation, Tokuyama focused its research on neutron-detection scintillators as a solid material to replace helium-3, drawing on
the crystal technologies accumulated in the past. This led to the successful
development of a special fluoride single crystal containing lithium-6 ( 6 Li),
which has a high sensitivity to neutrons. This fluoride single crystal can behandled and processed easily because it is a solid material, and can detect
neutrons with higher speed and sensitivity than conventional gas. Thanks tothese advantages, users can potentially utilize the material for a wide range ofapplications, not only security, but also environmental monitoring and boron
neutron capture therapy (BNCT) for brain tumors and other forms of cancer.
BNCT is an advanced medical treatment which is expected to become popular. Particularly for the treatment of brain tumors, BNCT can annihilate only thecancer cells, greatly lessening the concern about side effects associated withconventional radiation therapies.
Tokuyama is currently conducting demonstration tests in various industries
and trying to establish business models, aiming to commercialize its fluoride
single crystal in fiscal 2015.

An example of a portable detector module using of the LiCAF scintillator

A security gate using neutron detectors to check for nuclear substances

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

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

Gas has been used to detect neutrons for a long time,
and there was no progress made in switching over to asolid substance because there were no materials that
could detect only neutrons without reacting to X-rays
and gamma rays, which are released together with theneutrons. When solid materials were tried, they ended
up reacting in some way to the X-rays and gamma
rays. Therefore, our biggest challenge was to overcome this problem. We repeatedly carried out experiments while changing the combinations of materials,
eventually testing over 1,000 different materials.
Growing fluoride crystals is not simple, but
Tokuyama has very advanced technical expertise in
crystallization and excellent facilities. Furthermore, we
incorporated technologies from Tohoku University, withwhich we had been conducting joint-research in thepast, and succeeded in drastically shortening the timerequired forcrystallization from the typical time of several weeks tojust one or two days. As a result, we realized a fluoride
crystal of sufficient performance after around one year.
As a researcher, I give about the same level of importance to practical skills as I give to theoretical thinking.
Of course, many experiments end up in failure or produce different results than expected, but because ofthat, we can change our ideas and see things in new
ways. By repeating this process over and over, anyone
can learn things he didn’t understand before, or develop skills that he didn’t previously have. That is the truepleasure of doing research and development.
Now we are finally moving ahead with commercialization. Since the technology can be used invarious industries, I hope this research makes further
progress and our products contribute to society.

Special Feature

Tokuyama’s Environmental
Management

Working Together with
Local Communities

Accident Prevention andOccupational Health and Safety

Site Reports

Detailed Data

6

Third-party Review● Performance in Fiscal 2013 ● Environmental Accounting ● Measures to Help Combat Global Warming● Reducing Atmospheric Emissions and Water Pollution ● Recycling and Reducing Waste

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

Flow of Materials in Business Activities

INPUT

Environmental managementof Tokuyama

Waste andby-products

Fuel(43,700,000 gigajoules)

Tokuyama works to accurately determine the input and output of materials for
production, and regularly sets new targets aimed at reducing environmental
impact.

>> Results of Environmental Protection Initiatives
in Fiscal 2013
Among its targets for reducing environmental impact in fiscal 2013,
Tokuyama did not meet its target for reducing energy consumption ona per-unit basis due to a decrease in the overall operating rate of its
factories. It also fell short of its target for reducing chemical oxygen demand (COD) in water, owing to a greater burden on its treatment facilities
resulting from the increased operating rate of related facilities. However,Tokuyama achieved its other water quality targets for reducing nitrogenand phosphorous. It also met targets for reducing soot and substances
designated by the Pollutant Release and Transfer Register (PRTR), as well
as targets for recycling and reducing emissions of waste to virtually zero.
After closely examining changes in the composition of its product portfolio,
Tokuyama set a new medium-term energy conservation target of improving
per-unit energy consumption by 3.0% compared to the fiscal 2005 amount by

1,760
6,080

Industrial water

42,200>> Flow of Materials in Business Activities

Carbon dioxide
(CO2)

1,945

Raw materials

Performance in Fiscal 2013

OUTPUT

Production

Tokuyama

Products

5,910

5,930

Waste

(incinerated and landfill)21

Substances withenvironmental impact

10

Process effluent

22,100

Coolant water and other types of eﬄuent(Unit: 1,000 metric tons)

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

Results of Environmental Protection Initiatives by the Tokuyama Factory in Fiscal 2013
Category

Items

Global Environment
Conservation

Goal not achieved

Soot

Emission target reset to 200 metric tons
per year to reflect operating forecasts
and characteristics of facilities-14%

200 metric tons per year (set at approximately 1.3
times the fiscal 2012 result to reflect operating
forecasts and characteristics of facilities)

COD

Same level as the fiscal 2010 result+6%

Same level as the fiscal 2010 result

N

Same level as the fiscal 2010 result-37%

Same level as the fiscal 2010 result

P

Same level as the average result for theprevious three years-20%

Same level as the average result for the previous
three years

PRTR

PRTR

Same level as the average target values
for the previous three years-2%

Same level as the average target values for theprevious three years

Energy Conservation

Energy consumption ona per-unit basis

24% improvement compared to fiscal
1990

20.6% improvement

Improve per-unit energy consumption of products

Recycling

Effective utilization rate

Maintain at 94%

94.8%

Maintain at 94%

Zero emissions“Zero emissions” rate

Maintain at 99.9%

99.9%

Maintain at 99.9%

Water Quality

RatingGoal achieved,

FY2013 Result

Atmosphere

Environmental Impact
Reduction

Symbols:

FY2013 Target

FY2014 Target

Waste Reduction

Special Feature

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Third-party Review● Performance in Fiscal 2013 ● Environmental Accounting ● Measures to Help Combat Global Warming● Reducing Atmospheric Emissions and Water Pollution ● Recycling and Reducing Waste

Practice of Environmental Managementfiscal 2020.
Tokuyama is currently in the process of reviewing and examining its numerical targets, looking to set new annual performance goals starting in fiscal
2015. Until now, the Company has pursued more ambitious targets thanthose set in regulations and other standards. It recognizes that making thesetargets even more ambitious will be challenging since, as performance indicators, they no longer reflect such factors as the considerable influence thatchanges in business conditions have on the operating rates of facilities.

Environmental Accounting

costs associated with its environmental conservation activities, thereby providing a sound basis for making environmental investments.

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

>> Economic Benefits of Environmental

Tokuyama has been carrying out environmental accounting since fiscal 2000
in order to accurately determine and analyze the investment amounts andEconomic benefits are determined by calculating only monetary gains on theEnvironmental Preservation Costs

Economic Benefits in Fiscal 2013

Costs in Business Areas

Category

Pollution Control

Major Activities
Replacement of electric dust collectors and neutralizing facilities, etc.

Global Environmental Improvement of facilities for theConservation
effective utilization of coal
Resource Recycling

Expansion of facility capacity tohandle increasing amounts of waste
disposal

Upstream andDownstream Costs
Management
Activity Costs

Environmental analysis equipment,etc.

Research andDevelopment Costs
Social Activity Costs
Costs forEnvironmental Damage
Total

Greenery development, production of
CSR report
Imposition, management of a former
mining site

Amount Invested(¥ million)
238

Costs (¥ million)

Material Benefit(1,000 metric tons)

Category

395

485

1, 126

0

1

-

196

Gains on Sale of Valuable Waste

74

200

Gains on Reduction in Waste Disposal Costs
through Waste Recycling

295

759

Gains on Reduction in Raw Material and FuelCosts through Waste Recycling

296

534

-

1, 689

32

267

0

0

Total

0

144

Reduction rate (%)

0

0

-5
-10

400

332

353

358

370

-15

-25

200

6, 642

09

10

11

-16.4
-18.6

-20

300

0

-18.4

-17.5

379

100
850

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

目標

Cumulative Total of Environmental Investment (Calculated from Fiscal 1990)（Billions of yen）

69

Measures to Help Combat Global Warming

Unit Energy Consumption Index* (Tokuyama Factory)

Gains on Reduction in Energy Consumption
4, 63995

0Economic Benefit(¥ million)

reduction of energy consumption, the sale of valuable waste, the reduction in
waste disposal costs through waste recycling, and the reduction in raw material and fuel costs through waste recycling. In fiscal 2013, these economic
benefits totaled almost ¥1.7 billion, a slight decrease of ¥25 million comparedto the previous fiscal year.

12

13

（FY）

-21.8

-22.4

90

05

06

07

08

09

-24.6

-24.2

10

11

12

-20.6

13

（FY）

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

Tokuyama’s Environmental
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Third-party Review● Performance in Fiscal 2013 ● Environmental Accounting ● Measures to Help Combat Global Warming● Reducing Atmospheric Emissions and Water Pollution ● Recycling and Reducing Waste

Practice of Environmental Management>> Promoting energy conservation>> Initiatives at offices

Tokuyama consumes a vast amount of energy to manufacture its core products such as caustic soda, cement, and polycrystalline silicon. It also emits
carbon dioxide (CO2), one of the greenhouse gases, primarily in its burning offossil fuels and decarboxylation of limestone, which is used as a raw material
for cement production.
Recognizing the grave importance of combating global warming, Tokuyama
is working to keep its CO2 emissions in check by implementing energy conservation measures. The Tokuyama Factory, which accounts for more than
99% of the Company’s total energy consumption, proceeded with switchfrom burning coal to alternative fuels, and made improvements designed tosave energy in fiscal 2013. The factory has reduced energy consumption ona per-unit basis by 20.6% compared to the fiscal 1990 level; however, thiswas mainly due to a decrease in its operating rate. Having taken into accountthe business environment in which it operates, Tokuyama has set a target for
reducing per-unit energy consumption by 3.0% compared to the fiscal 2005
level, effective from fiscal 2014 through to fiscal 2020.
Tokuyama is re-examining its per-unit energy consumption target for fiscal
2014, including a review of the base year for comparison, to account for its
operating environment.

In fiscal 2013, the Company’s Tokyo Head Office made energy-saving settings to computers, removed some lights, and strictly regulated air conditioning. It also continued to participate in the government-led Cool Biz campaign,
which encourages cooler, casual clothing in offices in the summer to reduce
the need for air conditioning.

Energy Consumption

CO2 Emissions(Thousands of gigajoules/year)

60,000

2,700

2,800

50,00050,70049,90040,00037,600The Tokuyama Group is working to help reduce household CO2 emissions
by providing its Shanon brand of plastic window sashes, which are highly
effective for saving energy in residences.
The Group is also making advances in the development of other technologies that can help combat global warming, such as polycrystalline silicon forsolar cells and electrolyte membranes for fuel cells.

>> Global Warming Prevention Support Program
As part of its CSR-based environmental, energy-conservation and social-con-Adoption of Environmentally Friendly Products
Plastic Window Sashes(1,000 metric tons/year)

9,000

2,800
52,500>> Contributing to efforts to combat global warming in the
consumer sector

2,600

2,800

44,20043,700

200
230
6,000

30,0003,000

20,000

20

1,930

210
230

200
240

1,620

1,420

4,570

4,510

1,550
4,730

3,290

190
210

200
230

90

09

Tokuyama Corporation

10
Group companies

1112

13 （FY）

0

90

09

10

■ Attributable to fuel ■ Attributable to raw materials

11

Number of casesof subsidization

Solar Power Generation Systems
Number of cases ofsubsidization(Units)(kw)

FY2009

7

141

8

33.35

1,570

1,680

FY20107

9130

129.41

4,020

4,020

FY2011

13

174

22

87.04

FY20126

61

23108.27FY20138

113

34

179.76

Total

53

757

123

561.8410,0000tribution initiatives, Tokuyama launched its Global Warming Prevention Support Program for all Tokuyama Group employees in April 2008.
The objectives of the program are to raise awareness of global warming
among Group employees, encourage them to save energy, and help them
reduce CO2 emissions from their households. The Company covers part ofthe costs incurred by employees for purchasing and installing environmentally friendly products closely connected to the Group’s business, namely
residential-use plastic window sashes and solar power generation systems.
Tokuyama continued to offer the program for the seventh year in fiscal 2013, a
year when it implemented measures to improve profitability. The usage of the
program by employees is described below.
In fiscal 2013, the number of subsidies for such product units was higher
than any of the previous six years of the program. Evidently, employees decided to purchase the environmentally friendly products covered by the program before Japan raised its consumption tax rate in April 2014, immediately
following fiscal 2013. The result also suggests that general households are
becoming increasingly aware of the need to combat global warming.
In addition, Tokuyama has set up a new groupware-based portal site for the
program, and is regularly updating it with product usage reports and helpful
information, such as recommended websites about global warming.

12

13 （FY）■ Attributable to waste ■ Group companies

Tokuyama’s Environmental
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Third-party Review● Performance in Fiscal 2013 ● Environmental Accounting ● Measures to Help Combat Global Warming● Reducing Atmospheric Emissions and Water Pollution ● Recycling and Reducing Waste

Practice of Environmental Management>> Amounts of PRTR-designated substances

Reducing Atmospheric Emissions and Water Pollution

Among all of the substances Tokuyama handled in fiscal 2013, 24 were subject to registration under the Pollutant Release and Transfer Register (PRTR)*
system. Every workplace handling these substances undertook measures toreduce emissions in fiscal 2013. As a result, the Company reduced its emissions to 35 metric tons compared to the previous fiscal year.

Tokuyama has been actively working to help protect the natural environment
from early on in its history, implementing a wide range of measures designed
to reduce pollutants into the atmosphere and water systems.

* The PRTR system collects and publishes data on the sources of designated harmful chemical substances and theamounts of these substances discharged in the environment or transported from production sites as part of waste>> Amounts of atmospheric emissions

matter.

>> Amounts of hazardous air pollutant emissions

In an effort to reduce emissions of sulfur oxides (SOx), nitrogen oxides (NOx),and soot into the atmosphere, Tokuyama equips its boilers, cement kilns, andother facilities that generate these substances with emission control systems,
including flue gas desulfurizers, denitration equipment, low-NOx burners, andhigh-performance dust collectors. In fiscal 2013, although emissions of NOx
increased year on year as a result of higher operating rates at manufacturing
facilities, the Company reduced emissions of SOx and soot compared to theprevious fiscal year. It made a considerable reduction of SOx, in particular,
by reducing the number of days that facilities with high emission levels werepermitted to operate.

Tokuyama generates chloroethylene and three other substances that areamong the 12 substances subject to voluntary controls in Japan’s Air Pollution
Control Law. Accordingly, the Company formulates a voluntary action planand carries out ongoing measures for reducing the emissions of these substances.

monomer manufacturing facilities are subject to regulations under Japan’sSpecial Measures Law for Countermeasures against Dioxins. Accordingly,
the Company measures the concentrations of dioxins in exhaust gases andwastewater emitted from these facilities while working to ensure that amounts
are below regulatory limits.

>> Amounts of industrial effluent and wastewater
The Tokuyama Factory follows a stringent system for monitoring industrial effluent and purifying wastewater using treatment equipment in order to comply
with regulatory standards and limits set by the local government, as well as theCompany’s own standards, which are even stricter. The factory also employs
activated sludge treatment facilities for reducing the discharge of nitrogen andphosphorous and meeting chemical oxygen demand (COD)* regulations foroverall water quality.
In fiscal 2013, the Tokuyama Factory reduced the nitrogen and phosphorous it discharged compared to the previous fiscal year. The level of COD,
however, was 6% above its target, owing to a greater burden on treatment
facilities resulting from increased production at related facilities.
* Chemical oxygen demand is an indicator used to measure water quality, and refers to the amount of oxygen>> Measures to reduce dioxins

required to oxidize organic compounds in water.

Tokuyama’s waste oil incinerators and certain equipment in its vinyl chloride

Nitrogen and Phosphorus Emissions (metric tons)(metric tons)
400

15,00012,0009,000
6,000

10,000
275

8,000
148

2,890

137
1,300

3,000
0

8,800

90

SOx emissions

09

1,630
10

NOx emissions

8,600
191
2,180

8,400
190
1,450

11
Soot emissions

12

9,200
174

750
13
（FY）

（metric tons）
120
103

320

200

240

150

80

160

100

60

80
0

100

50
0

98

29

09

FY2012

108

94

70

Phosphorus

3.6

2.3

2.8

2.7

2.4

Hazardous Air Pollutant Emissions（metric tons）
237
250

50

FY2011

110

38 39

34 40

40 41

35 39

40
20

10

■Tokuyama Corporation ■Group companies

11

12

13
（FY）

0

21

Industrial Effluent Amounts and COD Levels■ Dichloromethane (methylene chloride)■ 1,2-dichloroethane

7

95(Millions of metric tons)
180
40■ Chloroform■ Chloroethylene (vinyl chloride)

47

28

FY2013

22
8 3
2
9

24
10 1
10 3

21
11 1
1
8

09

10

11

27
11
3
10 3

9 2
10 2

12

13（FY）

23

30

109
20.6

20
10
0

（metric tons）
200
128

123

123

25.6

24.3

24.9

134
22.1

14.3

90

150
100
50

09
10
■Industrial effluent

11
COD level

12

13
(FY)

0

COD level

PRTR Substance Emissions(metric tons)

FY2010140

Industrial eﬄuentSOx, NOx and Soot Emissions

FY2009
NitrogenTokuyama’s Environmental
Management

Special Feature

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Third-party Review● Performance in Fiscal 2013 ● Environmental Accounting ● Measures to Help Combat Global Warming● Reducing Atmospheric Emissions and Water Pollution ● Recycling and Reducing Waste

Practice of Environmental Management>> Management and Treatment of PCB Waste

Amount of Waste Sent to Landfills and Rate of Effective Utilization>> Waste Disposal (Non-Consolidated Basis)* PCB is an organic chlorinated compound that emits dioxins when burned at a low temperature. It was formerly used intransformers, capacitors, and many other electric products because of its excellent electrical properties, including chem-

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

(metric tons)

50,00082.4
76.9

40,000Landﬁll amountTokuyama makes exhaustive efforts to reduce and recycle the waste it generates. As a result, the Company maintained a 94.7% effective utilization rate ofwaste and again hit its “zero emissions” target of 99.9% in fiscal 2013.

In fiscal 2013, the Tokuyama Group disposed 38 of its 68 transformers andcapacitors containing high concentrations of polychlorinated biphenyl (PCB).*
The Group has stopped using all of the remaining 30 items, and is storing andmanaging them in compliance with Japan’s Special Measures Law for theProper Treatment of Polychlorinated Biphenyl Waste.

30,000

5.2%

6.1%

0

90

1,550

Effective utilization rate
94.7％

350.2

Amount of landfilled waste (onsite and offsite)
Total waste generated

×100

19.5

Landﬁlled onsite

0

Waste disposed offsite

1-

100
80
60

440

430

500

330

280

09

10

11

12

13

Eﬀective utilization rate

20
(FY)

0

“Zero emissions” rate

(1,000 metric tons)

0

25.8

Recycled externally24.5

Outside the Company

1,564

1,430

1,610

1,720

70

54

67

1,879

66

125
100
75
50
25

4

91

09

10

11

12

13（FY）

0

Amount for thermal recycling

Incinerated in-house
Recycled in-house

In-house(Unit: 1,000 metric tons)

94.7

Amount for material recycling

395.5

88.７%

Amount of waste recycled (in-house and externally)
Effective utilization rate (%) =×100
Total waste generated“Zero emissions” rate (%) =500(unit: 1,000 metric tons)

396

94.7

70

Total waste generated

Total waste
generated

94.4

40

10,0002,000

350“Zero emissions” rate
99.9％

93.5

2,500

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

24.5

93.5

（％）

Amount of Recycled Waste

0.3

Waste recycled externally

99.9(1,000 metric tons)

Flow of Industrial Waste Treatment

0.1%

99.9

Landﬁll amount (metric tons)

Waste sent to landfills

20.5

99.9

20,000ical stability, thermal resistance, chemical resistance, and insulation. Because of its danger to the human body, however,it was banned from production and usage in 1972. Owners of transformers, capacitors, or other products containing
PCB are responsible for their storage at suitable facilities.

1,000

Incinerated waste

99.9

36,2601,500

Breakdown of Industrial Waste Treatment in Fiscal 2013

99.9

Eﬀective utilization rate / “zero emissions” rate

Recycling and Reducing Waste

Incinerated externally

1.0

Landﬁlled offsite

0.3

Amount of Waste Byproducts Used in Cement(Kilograms per metric ton of cement)

500
400
300

414

430

446

458

461

09

10

11

12

13

277

200
100
0

91

(FY)

Tokuyama’s Environmental
Management

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Third-party Review● Performance in Fiscal 2013 ● Environmental Accounting ● Measures to Help Combat Global Warming● Reducing Atmospheric Emissions and Water Pollution ● Recycling and Reducing Waste

Practice of Environmental Management

Working Together with Local Communities

Local governments
Yamaguchi Eco-tech
Corporation

Incinerated ash

The Nanyo Plant’s Cement
Production Recycling System

Raw material crusher
Preheater
Raw material dryer

Raw material powder silo

Waste plastics

Sewage sludge

Limestone
Silica stone
Outside corporations
Slag

Outside corporations

Outside corporations

In-house
Preincineration

Waste plastics

Coal ash

Waste liquid

In-house

In-house

Coal ash

Organic sludge

Finishing crusher

Rotary kiln

Construction waste soil

Incombustible lime
SludgeConstruction waste soil

Clinker silo

Organic sludge

SludgeIn-house>> Community Dialogue on Responsible Care Held

Outside corporations

Local governments
Natural resources

クーラー
Natural resources

Coal crusher

Coal
Outside corporations
Waste carbon

Cement silo
Outside corporations
Plaster
In-house
Plaster

Main raw materials

Main energy source

Alternative raw materials

Alternative energy sources

Community Dialogues on Responsible Care

Cement shipment

On September 27, 2013, Tokuyama held its fiscal 2013 Tokuyama Factory Community Dialogue on Responsible Care to provide members of a local residents’association with information on initiatives intended to protect the environment, ensure
safety and prevent accidents at the factory. Participants comprised 33 members of
the residents’ association, two officials from Shunan City, and 17 members of theCompany, including the Tokuyama Factory general manager.
The event was held for the tenth time since it began in 2004. To commemorate the occasion, in addition to
the presentations and factory tour given every year, the Company organized a boat tour to offer the participantsa view of the factory’s various facilities from the sea.
In the presentations, members of the Company explained the current status of measures for protecting theenvironment, ensuring safety and preventing accidents. After that, department heads expressed their determination to protect the environment, and led the visitors on the factory tour of the liquid hydrogen plant and onsite
power plant.
Members of the residents’ association expressed their appreciation for the event, and noted how it helped
them become more familiar with Tokuyama and understand the factory’s environmental and safety activities
and contributions to the community.
With the support of the local community, all members of the Tokuyama Factory are united in their commitment to protecting the environment and keeping the site safe and accident-free.

Presentations given during the Tokuyama Factory Community Dialogue on Responsible Care

A boat tour around the factory siteSpecial Feature

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12

Third-party Review

Accident Prevention and Occupational Health and Safety
Recognizing that safety is the basis for its business activities, Tokuyama practices safety
as the first step to maintaining good relations with the communities in which it operates.
Based on this approach, the Company carries out stringent accident prevention measuresand occupational health and safety initiatives in its efforts to create a positive and safe work
environment that is free of accidents.

Tokuyama’s Commitment to Safety and
Accident Prevention>> Comprehensive safety and accident-prevention
measures
Tokuyama carries out exhaustive measures for ensuring that its facilities andoperations are safe in accordance with the three safety principles of its Company-wide Safety Management Policy. Specifically, the Company’s worksites
conduct safety inspections and kiken yochi hazard prediction, examine nearmiss accidents, practice the 5S principles (a system in Japan for promoting
sorting, setting in order, systematic cleaning, standardizing, and sustaining
discipline), and use a point and call-out method for affirming onsite conditions.
Furthermore, the Company provides safety education and training and utilizes
systems for managing risks, changes, and crises as a means to raise the levelof safety management and identify specific sources of risks.

>> Working to maintain workplace safety and ensure
no accidents
In fiscal 2013, no facility accidents occurred at any of Tokuyama’s worksites,

Fiscal 2013 Company-wide Safety Management Policy
Basic Approach to Safety
Recognizing that safety is the basis for its business activities, Tokuyama practices safety as the firststep toward maintaining good relations with the communities in which it operates.

including the Kashima Factory and Tsukuba Research Laboratory. Consequently, the Tokuyama Factory maintained its record of zero facility accidents
for the sixth consecutive year. Looking ahead, Tokuyama will continue making steadfast efforts to ensure that no accidents or disasters happen at its
worksites.

Tokuyama’s Commitment to Occupational Healthand Safety

Safety for the community
We shall fulfill the obligations of a good corporate citizen.

All industries in Japan

Chemical industry in Japan

Tokuyama Corporation

2.0
1.5
1.0
0.5
0.0

05

06

07

08

09

10

11

12

13 (FY)*1 As an indicator of the frequency of industrial accidents, the accident frequency rate is calculated as the numberof workers forced to miss work due to an industrial accident per one million cumulative working hours.

Comparison of accident severity rates *2>> Improving safety management systems
Through its safety management systems, Tokuyama conducts risk assessments covering operations, equipment, and processes, and continuously
makes improvements in order to completely eliminate potential risks. The
Company also reviews its system for safety management during changes,
examining it for completeness and to determine whether evaluation standards
need improvement. In light of serious accidents caused by explosions andfires at other companies’ chemical plants in recent years, Tokuyama has begun revising its risk assessment methods to take into account periods whenits plants are offline (including during abnormal conditions).

Prioritizing safety
We shall give safety priority over all business activities.

Responsibility for safety
We shall ensure that everyone is aware of their responsibilities and acts accordingly.

Policy Objectives
Our Three Safety Principles

Comparison of accident frequency rates *1

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

All industries in Japan

0.15

Chemical industry in Japan

Tokuyama Corporation

0.12
0.09
0.06
0.03
0.00

05

06

07

08

09

10

11

12

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

Key Action Items
Improve safety management systems• Enhance risk assessments by reporting on near-miss accidents• Enhance safety management during changes• Utilize and share safety-related information

Make progress in risk management and hazard management• Incorporate a business continuity plan (BCP) based on the scenario of a major earthquake in Tokyo• Establish a company-wide BCP to respond to a major earthquake or tsunami at the Tokuyama
Factory

Promote sound physical and mental healthSpecial Feature

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Third-party Review● Tokuyama Factory ● Kashima Factory● Group Company Reports

Tokuyama Factory

Location:
Number of employees:
Total site area:
Main products:

1-1, Mikage-cho, Shunan City, Yamaguchi 745-8648, Japan
1,609
1.91 million m2
Cement, inorganic chemical products, organic chemical products, polycrystalline silicon, fumed silica, polyvinyl
chloride, and other products

Hideki Adachi
Tokuyama Factory General Manager

As Tokuyama’s main production center, the Tokuyama Factory is located on the site of the Company’s founding andnow manufactures products accounting for about 90% of non-consolidated sales.

Emissions and Transfer of Specific PRTR-Designated Substances in Fiscal 2013

Unit: metric tons (mg-TEQ equivalency for dioxins)

Amount of emissions
Substance name

Performance Data
Unit

FY2009FY2010FY2011FY2012FY2013

Regulatory number

Amount transferred
Atmospheric

Water

Soil

Subtotal

1,2-Dichloroethane

157

9.7

0.0

0.0

9.7

1.0

Chloroethylene (vinyl chloride)

94

9.3

0.0

0.0

9.3

0.0

Cresol

86

0.0

3.6

0.0

3.6

0.0

Chloromethane (methyl chloride)

128

3.5

0.0

0.0

3.5

0.0

Toluene

300

1.9

0.0

0.0

1.9

40.2

Water-soluble compounds of zinc

1

0.0

1.8

0.0

1.8

0.0

Dichloromethane (methylene chloride)

186

1.5

0.0

0.0

1.5

0.0
0.0

SOx emissions Metric tons

metric tons

1,300

1,630

2,180

1,450

750

NOx emissions

metric tons

8,800

8,000

8,600

8,400

9,200

Soot emissions

metric tons

137

148

191

190

174

Chloroform

127

1.1

0.0

0.0

1.1

Industrial water consumption

Million metric tons

41.8

40.5

43.8

41.3

42.2

1,2-Epoxypropane (propylene oxide)

68

0.5

0.0

0.0

0.5

2.4

Effluent discharged

Million metric tons

20.5

25.5

24.2

24.8

22.1

1,2-Dichloropropane

178

0.4

0.0

0.0

0.4

191.6

COD level

metric tons

107

124

119

119

132

Carbon tetrachloride

149

0.1

0.0

0.0

0.1

0.0

Total nitrogen discharged

metric tons

140

110

108

94

70

2,2-Azobisisobutyronitrile

16

0.0

0.0

0.0

0.0

0.0

Total phosphorous discharged

metric tons

3.6

2.3

2.8

2.7

2.4

Water-soluble copper salt

272

0.0

0.0

0.0

0.0

2.9

PRTR-designated substance emissions

metric tons

48

37

32

39

33

Hydrazine

333

0.0

0.0

0.0

0.0

0.0

Thousand metric tons

300

312

379

381

395

Hydrogen fluoride and its water-soluble form

374

0.0

0.0

0.0

0.0

0.0

Waste sent to landfills

metric tons

420

417

490

320

277

Benzene

400

0.0

0.0

0.0

0.0

0.0

Energy consumption*

Thousand gigajoules

50,60049,80052,40044,10043,700Boron compounds

405

0.0

0.0

0.0

0.0

0.1

CO2 emissions* (originating from fossil fuel)Thousand metric tons

4,570

4,510

4730

4020

4020

Dioxins

243

12.8

20.8

0.0

33.7

0.0

1

5

3

0

1

28.0

5.4

0.0

33.3

238.1

Waste generated

Complaints

Cases* In accordance with a revision of Japan’s Act on the Rational Use of Energy, figures basedon calorific values and other factors have been recalculated retrospectively to 1990.

Total (excluding dioxins)

Substances are listed in descending order of emissions levels; substances with no emissions are listed in order of the regulatory number
Water refers to public waters

Amount transferred indicates the sum of the quantity transferred to sewage systems and the quantity subject to intermediate treatment
Total figures have been rounded to the first decimal place

Special Feature

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Management

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Site Reports

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14

Third-party Review● Tokuyama Factory ● Kashima Factory● Group Company Reports

Kashima Factory

Location:
Number of employees:
Total site area:
Main products:

26 Sunayama, Kamisu City, Ibaraki 314-0255, Japan83
101,000 m2
Produced by Tokuyama Corporation: Bulk pharmaceuticals for stomach and duodenal ulcer treatment drugs;
optical materials (plastic lens monomer, light modulating materials, and hard coating solutions); raw materials
for electronic materials; metal cleaning solvents
Produced by Tokuyama Dental Corporation: Dental materials (restorative materials, adhesives, relining materials, impression materials and investment materials)

The Kashima Factory strives to recycle waste matter while placing the utmost importance on the proper
management and handling of chemical substances. As a result of this approach, the factory achieved
an 81% effective utilization rate of waste in fiscal 2013, maintaining the high recycling rate achieved in
the previous fiscal year. Looking ahead, the Kashima Factory is examining the feasibility of material andthermal recycling as it works to increase its effective utilization rate for all types of waste matter. Waste
sent to landfills for final disposal amounted to seven metric tons, matching the record-low level set in
the previous fiscal year. Consequently, the Company achieved its “zero emissions” target of 99.9%.
Meanwhile, Tokuyama Dental Corporation modified the operating conditions of treatment equipment toeliminate handling in certain processes in an effort to reduce its atmospheric emissions of exhaust gases. Consequently, its share of total atmospheric emissions from the factory fell from 50% in the previous
fiscal year to 20% in fiscal 2013.

Emissions and Transfer of Specific PRTR-Designated Substances in Fiscal 2013

FY2009FY2010FY2011FY2012

Substance name

FY2013Thousand metric tons

44

77

71

76

51

58

93

90

96

66

COD level

metric tons

2

4

4

4

3

PRTR-designated substance emissions

metric tons

4

2

2

1

2
919

Waste generated

metric tons

560

857

909

930

Waste sent to landfills

metric tons

11

12

7

7

7

Energy consumption*

Thousand gigajoules

53

60

57

59

36

metric tons

2,110

2,340

2,324

2,399

2,476

0

0

0

0

0

* In accordance with a revision of Japan’s Act on the Rational Use of Energy, figures basedon calorific values and other factors have been recalculated retrospectively to 1990.

Soil

Subtotal

Chloroform

127

0.8

0.4

0.0

1.3

12.7

300

0.4

0.0

0.0

0.5

12.4

Dichloromethane

186

0.4

0.0

0.0

0.4

1.9

Acetonitrile

13

0.0

0.0

0.0

0.0

2.2

-Methylstyrene

Thousand metric tons

Cases

Amount transferred
Water

Toluene

1,4-Dioxane

Industrial water consumption

Complaints

Regulatory number
AtmosphericEffluent discharged

CO2 emissions*

Unit: metric tons

Amount of emissions

Performance Data
Unit

Fumiaki Iwasaki
Kashima Factory General Manager

149

0.0

0.0

0.0

0.0

0.0

150

0.0

0.0

0.0

0.0

0.0

N,N-Dimethylacetamide

213

0.0

0.0

0.0

0.0

3.8

N,N-Dimethylformamide

232

0.0

0.0

0.0

0.0

10.8

Triethylamine

277

0.0

0.0

0.0

0.0

1.0

2-Vinylpyridine

338

0.0

0.0

0.0

0.0

0.3

Methacrylic acid 2,3-Epoxypropyl

417

Total

0.0

0.0

0.0

0.0

0.0

1.7

0.5

0.0

2.2

45.2

Substances are listed in descending order of emissions levels; substances with no emissions are listed in order of the regulatory number
Water refers to public waters

Amount transferred indicates the sum of the quantity transferred to sewage systems and the quantity subject to intermediate treatment
Total figures have been rounded to the first decimal place

Special Feature

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Management

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15

Third-party Review● Tokuyama Factory ● Kashima Factory● Group Company Reports

Tokuyama believes that its group companies should be involved in tackling the issues covered by Responsible
Care activities. Accordingly, it has concluded a Responsible Care Management Agreement with its manufacturingsubsidiaries in Japan and worldwide, and it is providing them with assistance to carry out these activities. The
Company collects data from group companies on their environmental impact, safety management, and otherindicators, and conducts safety, environmental, and quality audits every year at several subsidiaries. In this way,
Tokuyama is closely following the Responsible Care activities at each company and ensuring their completeness.
Tokuyama also shares news on regulatory trends and other relevant information with its group companies, andhelps them acquire ISO 9001 and ISO 14001 certification.

11 Group Companies with ISO 9001 and/or ISO 14001 Certification
Group Company

ISO9001

ISO14001

ISO9001

ISO14001

Sun·Tox Co., Ltd.

•

Tokuyama Siltech Co., Ltd.

•—Sun Arrow Kasei Co., Ltd.

—••ASTOM Corporation•

Shin Dai-ichi Vinyl Corporation—

Figaro Engineering Inc.

•
•
•
•*
•

—

Tokuyama Polypropylene Co., Ltd.

•

•
•
•
•
•

Tokuyama Dental Corporation—*

Excel Shanon Corporation
Tohoku Shanon Corporation
A&T Corporation

Group Company•• = Acquired certification • = Certification acquired by a worksite of the group company= Acquired ISO 13485 certification*

Sun ·Tox Co., Ltd.

Established: February 14, 1992
Shareholder: Tokuyama Corporation (100%)

Sun ·Tox’s Kanto Plant is located in an industrial park in the City of
Itako, Ibaraki Prefecture. The plant manufactures biaxial-oriented
polypropylene films and cast polypropylene films, which are used forfood packaging and other applications, totaling about 25,000 metrictons annually.
As a factory that gives first priority to energy conservation management, the Kanto Plant has established an energy conservationcommittee, sets medium- and long-term goals, and strives to cut
down on its overall energy consumption on a per-unit basis. The
plant also works to effectively use resources by reducing and recycling waste matter, and is achieving steady results. As it continues toimplement three management systems covering occupational healthand safety (based on Japan’s OSHMS certification), the environment(based on ISO 14001), and quality (based on ISO 9001), the Kanto
Plant is building on its achievements with the aim to be a community-based factory trusted in society.

Kanto Plant

Kazunori Shimada
Plant Manager

Head office:Tokuyama Building, 1-4-5 Nishi-shimbashi, Minato-ku, Tokyo, Japan
Business activities: Manufacture and sale of biaxial-oriented polypropylene films and cast polypropylene films

Sun·Tox’s Tokuyama Plant situated on the site of the East
Plant of Tokuyama Corporation’s Tokuyama Factory. The
plant manufactures environmentally friendly biaxial-oriented
polypropylene films, which are mainly used for food andbeverage packaging, amounting to about 23,000 metrictons annually.
As part of its environmental initiatives, Sun·Tox is actively
working to reduce production loss and increase its recycling rate in an effort to cut down on the waste it generates
going forward. With respect to safety, it has acquired
Occupational Safety and Health Management System(OSHMS) certification from the Japan Industrial Safety and
Health Association in 2008. Under the slogan, “Strictly
following safety procedures, making manufacturing enjoyable, and never compromising quality,” the plant aims tokeep its facilities operating safely so it can be depended
upon by the community, customers and employees.

Tokuyama Plant

Naoki Ueda
Plant Manager

Location: 7-7, Harumi-cho, Shunan City, Yamaguchi
Number of employees: 133
Total site area: 24,100 m2

Location: 3075-18 Shimasu, Itako City, Ibaraki, Japan
Number of employees: 187
Total site area: 55,800 m2

Performance Data
Unit

FY2009FY2010FY2011FY2012FY2013

Waste generated

metric tons

43

56

57

26

15

Waste sent to landfills

metric tons

16

38

43

7

4

Energy consumption

Thousand gigajoules

334

344

341

340

CO2 emissions

Thousand metric tons

18

19

19

Performance Data
Unit

FY2009FY2010FY2011FY2012FY2013

Waste generated

metric tons

90

80

70

67

66

360

Waste sent to landfills

metric tons

6

9

1

2

2

19

20

Energy consumption

Thousand gigajoules

414

434

448

445

463

Thousand metric tons

25

26

26

26

27

metric tons

0.1

0.1

0.0

0.0

0.0

Cases

0

0

0

0

0

SOx emissions

metric tons

0.3

0.3

0.4

0.3

0.2

CO2 emissions

NOx emissions

metric tons

0.5

0.6

0.7

0.6

0.7

PRTR-designated substance emissions

Soot emissions

metric tons

0.05

0.04

0.04

0.03

0.06

Complaints

Tokuyama’s Environmental
Management

Special Feature

Working Together with
Local Communities

Accident Prevention andOccupational Health and Safety

Site Reports

Detailed Data

16

Third-party Review● Tokuyama Factory ● Kashima Factory● Group Company Reports

Sun · Arrow Kasei Co., Ltd.

Tokuyama Polypropylene Co., Ltd.

Established:
Shareholder:
Head office:Business activities:

Established:
Shareholder:
Location:
Business activities:

February 1, 1999
Tokuyama Corporation (100%)
Nakanoshima Central Tower, 2-2-7 Nakanoshima, Kita-ku, Osaka, Japan
Manufacture and sale of polyvinyl chloride compounds

Operating on the site of the East Plant of the Tokuyama Factory ofTokuyama Corporation, Sun Arrow Kasei’s Tokuyama Plant manufactures polyvinyl chloride compounds used for pipes, joints, andother items essential for upgrading infrastructure, as well as resin
window frames, which are highly effective for saving energy.
The plant promotes ISO 14001 environmental management, andmakes proactive initiatives to reduce the use of substances listed in
the Pollutant Release and Transfer Register (PRTR), in particular. In
fiscal 2013, it reduced the use of these substances by 40% compared to the previous fiscal year.
To ensure safety and prevent accidents, the Tokuyama Plant has
all employees participate in activities designed to eliminate problems,
identify near-miss situations, and practice the 5S principles. Owing
to this approach, the company has maintained an accident- anddisaster-free record since it was established.
In fiscal 2014, the plant intends to strictly enforce internal controls
while carrying out Responsible Care activities based on a safety-firstpolicy for all operations.

Tokuyama Plant

Yasuto Yasuzawa
Plant Manager

April 2, 2001
Tokuyama (50%), Prime Polymer Co., Ltd. (50%)
1-1 Harumi-cho, Shunan City, Yamaguchi, Japan
Manufacture and sale of polypropylene resin and flexible polypropylene resin

Tokuyama Polypropylene’s Tokuyama Plant is locatedon the site of the East Plant of Tokuyama Corporation’s
Tokuyama Factory, which is the center of the TokuyamaGroup’s Responsible Care activities. As part of its safety management, the company carries out measures to
identify near-miss situations and points of concern, andconducts risk assessments in its processes, facilities, andproduction. The company has maintained a perfect accident- and disaster-free record since the time it was firstestablished as Tokuyama’s polypropylene film business 38
years ago.
The plant is preparing for the renewal of 15 certifications
that are due in fiscal 2014. At the same time, the Tokuyama
Plant is promoting Responsible Care activities with thegoals of extending its accident- and disaster-free record,
reducing its environmental burden, and eliminating customer complaints related to quality.

Tokuyama Plant

Hiroaki Endo
Plant Manager

Location: 7-7, Harumi-cho, Shunan City, Yamaguchi
Number of employees: 133
Total site area: 24,100 m2

Location: 1-2 Harumi-cho, Shunan City, Yamaguchi, Japan
Number of employees: 24
Total site area: 3,280 m2

Performance Data

Performance Data
Unit

FY2009FY2010FY2011FY2012FY2013

Power consumption

Thousand kilowatt hours

2,662

2,735

2,763

2,455

2,562

Waste plastic produced

metric tons

119

124

110

107

125

Waste plastic effectively usedmetric tons

119

124

110

107

124

Waste sent to landfills offsite for disposal

metric tons

3.8

12.5

10

15

7

Steam usage

metric tons

240

240

240

240

240

Thousand metric tons

65

65

65

65

65

Industrial water consumption

Unit

FY2009FY2010FY2011FY2012FY2013Thousand metric tons

354

329

366

343

411

Waste generated

metric tons

134

180

123

160

116

Waste sent to landfills

metric tons

6.5

3.8*

0

1.9*

15

%

97

86

88

88

84

Industrial water consumption

Unit Energy Consumption Index(Fiscal 2002=100)* Year with periodic maintenanceSpecial Feature

Tokuyama’s Environmental
Management

Working Together with
Local Communities

Accident Prevention andOccupational Health and Safety

Site Reports

Detailed Data

17

Third-party Review● Environmental Data for Tokuyama

Environmental Data for Tokuyama● Emissions of SOx, NOx, and Soot

Input (Unit: 1,000 metric tons)● Discharge of Nitrogen and Phosphorous

Waste and by-products

1,630

1,500

1,680

1,780

1,945

9.3%

● Waste Management

Fuel

2,120

2,020

2,270

2,150

1,760

-18.1%● Energy Consumed on a Per-Unit Basis at the Tokuyama Factory

Raw materials

5,910

5,390

5,880

5,650

6,080

7.6%

● Amount of Waste Matter and By-Products Used to Produce Cement

Industrial water● Material and Thermal Recycling Amounts in Cement Production

Output (Unit: 1,000 metric tons)● Energy Consumption

Carbon dioxide● Emissions of CO2

Waste (incinerated and landfill)● Emissions of PRTR-Designated Substances● Emissions of Hazardous Air Pollutants● Discharge of Industrial Effluent and Levels of COD● Breakdown of Waste Treatment Methods● Landfilled and Recycled Waste

FY200941,800FY2009FY201140,500FY2010FY2012

43,900FY2011FY201341,300FY2012Comparison with the previous fiscal year (%)

42,200FY2013

2.2%
Comparison with the previous fiscal year (%)

6,420

6,170

6,510

5,800

5,930

2.2%

19

20

21

20

21

5.0%

Substances with environmental impact
Process effluent

FY2010

10

10

11

10

10

0%

20,60025,60024,30024,90022,100-11.2%

Emissions of SOx, NOx, and Soot
Unit: Metric tons

FY2009FY2010FY2011FY2012FY2013Comparison with the previous fiscal year (%)

SOx

1,300

1,630

2,180

1,450

750

-48.3%

NOx

8,800

8,000

8,600

8,400

9,200

9.5%

Soot

137

148

191

190

174

-8.4%

Discharge of Nitrogen and Phosphorous
Unit: Metric tons

FY2009FY2010FY2011FY2012FY2013Comparison with the previous fiscal year (%)

Nitrogen

140

110

108

94

70

-25.5%

Phosphorous

3.6

2.3

2.8

2.7

2.4

-11.1%

Waste Management
Unit: 1,000 metric tons

FY2009FY2010FY2011FY2012FY2013Comparison with the previous fiscal year (%)

Waste recycled in-house

260

271

331

337

350

3.9%

Waste recycled externally

20.8

21.1

27.3

25.0

24.5

-2.0%

Incinerated waste

18.9

20

21

19.7

20.5

4.1%

Waste sent to landfills

0.4

0.4

0.5

0.3

0.3

0%

Special Feature

Tokuyama’s Environmental
Management

Working Together with
Local Communities

Accident Prevention andOccupational Health and Safety

Site Reports

Detailed Data

● Environmental Data for Tokuyama

Energy Consumed on a Per-Unit Basis* at the Tokuyama Factory● Emissions of SOx, NOx, and Soot

Unit: %● Discharge of Nitrogen and Phosphorous

Percentage reduced

18

Third-party Review* Figures are calculated using a standard conversion
method for products recommended by
the Japan Chemical Industry Association (JCIA)

Base year (1990)
0

FY2009FY2010-22.4

FY2011-24.6

FY2012-24.2

FY2013

-21.8

-20.6

● Waste Management● Energy Consumed on a Per-Unit Basis at the Tokuyama Factory

Amount of Waste Matter and By-Products Used to Produce Cement● Amount of Waste Matter and By-Products Used to Produce Cement

Unit: kg per metric ton of cement● Material and Thermal Recycling Amounts in Cement Production

Amount used

Base year (1991)

FY2009227

FY2010414

FY2011430

FY2012446

FY2013458

461● Energy Consumption● Emissions of CO2● Emissions of PRTR-Designated Substances● Emissions of Hazardous Air Pollutants● Discharge of Industrial Effluent and Levels of COD● Breakdown of Waste Treatment Methods● Landfilled and Recycled Waste

Material and Thermal Recycling Amounts in Cement Production
Unit: 1,000 metric tons

Base year (1991)

FY2009FY2010FY2011FY2012FY2013

Material recycling

1,550

1,561

1,430

1,610

1,730

1,879

Thermal recycling

4

70

67

70

54

66

Energy Consumption
Unit: 1,000 gigajoules

Base year (1990)

Tokuyama Corporation

37,60050,70049,90052,50044200

43,700

—

2,700

2,800

2,800

2,600

2,800

Group companies

FY2009FY2010FY2011FY2012FY2013Emissions of CO2
Unit: 1,000 metric tons

Base year (1990)

FY2009FY2010FY2011FY2012FY2013

Originating from fuel

3,290

4,570

4,510

4,730

4020

4,020

Originating from raw materials

1,930

1,620

1,420

1,550

1570

1,680

Originating from waste matter

20

230

240

230

210

230

200

200

210

190

200

Group companies

Special Feature

Tokuyama’s Environmental
Management

Working Together with
Local Communities

Accident Prevention andOccupational Health and Safety● Environmental Data for Tokuyama

Emissions of PRTR-Designated Substances*● Emissions of SOx, NOx, and Soot

Unit: Metric tons

● Discharge of Nitrogen and Phosphorous

Tokuyama Corporation● Waste Management

Group companies● Amount of Waste Matter and By-Products Used to Produce Cement

Emissions of Hazardous Air Pollutants● Energy Consumed on a Per-Unit Basis at the Tokuyama Factory● Material and Thermal Recycling Amounts in Cement Production● Energy Consumption● Emissions of CO2● Emissions of PRTR-Designated Substances● Emissions of Hazardous Air Pollutants● Discharge of Industrial Effluent and Levels of COD● Breakdown of Waste Treatment Methods● Landfilled and Recycled Waste

Site Reports

Unit: Metric tons

Detailed Data

19

Third-party Review* Figures are calculated using a standard conversion
method for products recommended by
the Japan Chemical Industry Association (JCIA)
Base year (1998)

FY2009237

Base year (1995)

Dichloromethane (methylene chloride)

FY2010FY2011FY2012FY2013

50

38

34

40

35

29

39

40

41

39

FY2009FY201028

2Chloroform

7

1,2-Dichloropropane

47

Chloroethylene (vinyl chloride)

21

FY2011FY2012FY2013

3

1

3

2

3

1

1

3

2

9

10

8

10

10

8

10

11

11

9

Discharge of Industrial Effluent and Levels of COD
Base year (1990)

FY2009FY2010FY2011FY2012FY2013

Industrial effluent (million metric tons)

14.3

20.6

25.6

24.3

24.9

22.1

COD (metric tons)

180

109

128

123

123

134

Breakdown of Waste Treatment Methods
Unit: 1,000 metric tons

FY2008FY2009FY2010FY2011FY2012

Waste recycled in-house

304

260

271

331

Waste recycled externally

FY2013
337

350

20.5

20.8

21.1

27.3

25

24.5

Incinerated waste

20

18.9

20

21

19.7

20.5

Waste sent to landfills

0.5

0.4

0.4

0.5

0.5

0.3

Total waste generated

345

300

313

380

382

396

Landfilled and Recycled Waste
Base year (1990)
Landfilled waste (1,000 metric tons)

FY2009FY2010FY2011FY2012FY201336,260

440

430

500

330

280

Effective utilization rate (%)

77

93.5

93.5

94.4

94.7

94.7

“Zero emissions” rate (%)

82

99.9

99.9

99.9

99.9

99.9

Special Feature

Tokuyama’s Environmental
Management

Working Together with
Local Communities

A Review of Tokuyama’s
CSR Report and Corporate Profile
2014

Eriko Nashioka
Representative Director, Institute for Environmental Management Accounting, Certified Public
Accountant and Certified Tax Accountant, andpart-time lecturer in environmental accounting
and environmental auditing for the Faculty ofCommerce, Doshisha University

Accident Prevention andOccupational Health and Safety

Site Reports

Detailed Data

Third-party Review

20

In Response toThird-party Review
and reliability at the Tokuyama Factory, which has continued to expand
as a massive complex on the original site where the company began.
Demonstrating how human resources are developed at Tokuyama, thesection describes how trust is earned by building on small achievements and passed down to younger workers.
The second special feature shows how the development of a scintillator material for high-performance neutron detectors is related to solutions for new social problems. Through the application of Tokuyama’s
new technologies, these detectors are expected to change the way
security is conducted. The company’s approach of preserving andpassing down its beneficial traditions from the past while developing
new systems for society provides a solid basis for practicing CSR-oriented management. I believe Tokuyama can play an important socialrole in this way.

Toshihiko Annaka
Executive Officer, and General Manager,
Corporate Social Responsibility Division>> Environmental conservation>> Tokuyama is reinforcing its business foundations in
the run-up to its 100th anniversary
In this year’s report, Tokuyama positioned its Profit Improvement Plan
at the base of its Centennial Vision pyramid concept. With this framework for supporting its basic strategies, Tokuyama seems very intent
on renewing and stabilizing its business foundations ahead of 2018,the year of the company’s 100th anniversary. As Tokuyama pursues
its Centennial Vision amid rapidly changing business conditions, I hopethat it continues to help make society more sustainable by serving as
a company that responds to the needs of the public, and constantly
evolves its business activities in response to the changing businessenvironment while staying true to its credo of “Venture Spirit & Innovation.”>> Safety and stability with “Venture Spirit& Innovation”
One of Tokuyama’s business foundations is its remarkably safe, stable
operations at production facilities, as described in the first special
feature. This section presented the company’s efforts to ensure safety

The online PDF version of the report presents extensive performancedata connected to Tokuyama’s environmental conservation activities,
and clearly shows that the company is making steady progress on its
related targets. Its main facility, the Tokuyama Factory complex, is fully
integrating waste treatment and recycling, and managing inflows andoutflows in a comprehensive manner with neighboring companies andthe local government. In this way, the factory is working to achievea considerably low impact on the environment relative to its scale ofoperations by putting in place a highly efficient production system. Thisis highly commendable. In the future, Tokuyama should extend thisapproach to affiliated companies in other regions and to its factories
outside Japan, and develop highly efficient production facilities in eachlocation.
On another note, the amount of performance data presented in thereport was quite large. For that reason, it was difficult to determine
which items were of greatest priority for the company.
If Tokuyama were to specify priority items from two perspectives,
specifically their importance for the company and importance for society, and use indicators that clearly show the level of progress being
made, I think it could create a clearer way to present progress. I lookforward to learning more about each step Tokuyama takes toward its
Centennial Vision.

We have been combining our CSR Report and Corporate Profile
since fiscal 2013. For our report this year, we tried to clearly present
Tokuyama’s aims and the basis for pursuing our targets, hoping tostimulate greater interest in the Company among stakeholders andprovide them with an accurate description of our activities and results.
As Ms. Nashioka mentioned, 2018 marks an important year for us asour 100th anniversary. In preparation, Tokuyama is aiming to transform
its business structure to enable continuous growth by applying its“Venture Spirit & Innovation.”
We created a special feature in the report about Tokuyama’s
long-established traditions and safety training initiatives in order toshow how we pass on the trust we have built up to younger workers
and how we develop human resources. As Ms. Nashioka noted, thissection offers readers insights into Tokuyama’s approach.
We also presented environmental conservation activities with a focus
on waste treatment and recycling initiatives taken at the Tokuyama
Factory. As pointed out by Ms. Nashioka, however, we need to introduce and expand our activities group-wide to other factories, groupcompanies and subsidiaries overseas in the future.
Finally, we will try to present performance data in a way that moreclearly shows which items are of highest priority, taking into accountMs. Nashioka’s suggestion.