DENKI KAGAKU KOGYO KABUSHIKI KAISHA CSR REPORT 2012www.denka.co.jp/eng

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CSR Report 2012

S 0010 IC
Published in November 2012by Denki Kagaku Kogyo Kabushiki Kaisha

03
04

06
08
10
11

About DENKA
Corporate Data/Board of Directors/
Shareholder Information
Consolidated Financial Highlights
CSR Initiatives

12
13
14

Coverage

Initiatives with Employees
Occupational Safety and Health
Security and Disaster Prevention
Development of Comfortable Workplaces/
Respect for Diversity
Human Resource Development
Good Company Program Initiatives

16
18
20
22
24

Initiatives in Society
The DENKA Group’s Social Contributions
Educational AssistanceSocial Contributions

26
28
29

To Investors and Shareholders
Communications with Shareholders andInvestors

36

Third-Party Opinion
38
Dialogue Sessions Held Prior to the Preparationof the Third-Party Opinion/Response to theThird-Party Opinion
39* Responsible Care as it pertains to the chemical industry is defined as an
approach to business activities in which manufacturers and handlers ofchemical substances, in line with the principles of self-determinationand individual responsibility, conduct the self-management of environmental and safety issues surrounding aspects of chemical substances,from development through to disposal.

Directors (Board of Directors)
Election/Dismissal

Supervise

Representative Director
Executive Directors
Executive Officers
Various Business Sectors
Affiliates
Internal Audits

DENKA CSR REPORT 2012

Corporate Auditor’s
Dept.

Internal Auditing Dept.

Conduct Audit/Auditing Staff

Audits within Business Units(Including Administrative Dept., Legal Dept., Environment and
Safety Dept., and Quality Management Dept.)

Compliance Hotline

Financial Auditor (Auditing Firm)

CSR Promotion Structure
To support its CSR activities, DENKA formulated the CSR promotion
structure. When a major issue occurs, the department in charge of
CSR activities addresses that issue. Daily operations are handled by■ CSR Promotion Structure
President

With the aim of facilitating the understanding of all employees withregard to CSR activities so that it can more keenly engage in such

Responsible Care (RC) Committee
Safety Measures Headquarters

the CSR & Corporate Communications Dept.
CSR & Corporate
Communications Dept.

Product Liability (PL) Committee
Ethics Committee

activities, the CSR & Corporate Communications Dept. has painstak-Security Export Control Committee

ingly developed an in-house structure to promote CSR. In addition,

Risk Management Committee

the CSR & Corporate Communications Dept. publishes the CSR

Internal Auditing Dept.

Report to deepen the understanding of people outside the DENKA

Investor Relations Dept.

Group of its CSR activities and their status.

2

Corporate Auditor(Board of Auditors)

Appointment/Dismissal

35

General Stockholders’ Meeting
Appointment/Dismissal

Audit

Award Commendations

corporate governance initiatives.

ReportCollaboration with External Institutions• DENKA100 Corporate Philosophy (Full Version)• Corporate Governance/Compliance• The DENKA Group Guidelines• ‌Information Control/System Administration/Response to Insider Trading
Regulations• ‌Breakdown of Consolidated Net Sales by Principal Business Segment• Research and Development Activities• Financial Statements• Rationalizing Logistics• Input, Output• Utilization of Environmental Related Subsidies• Environmental Accounting• Occupational Safety and Health Management System• ISO 14001 and 9001 Management System• Product Safety Control and Management System• Environment-Friendly Product Development• Site Reports
Domestic Business Sites: ‌Omi, Omuta, Chiba, Shibukawa, Ofuna, Isesaki
and Denka Innovation Center
Overseas Business Sites: ‌M erbau, Seraya, Tuas, Suzhou and Denka
Chemicals Development Suzhou
Major Affiliates: ‌DENKA Polymer, DENKA SEIKEN, CRK, Hinode Kagaku
and DENKA Azumin

To remain a company that deserves social respect and support by meeting the expectations of the stakeholders, we are pursuing the following

Assistant

34

The following references for the CSR Report 2012 are presented on our
website.
(URL: http://www.denka.co.jp/eng/csr/report/index.html)

Corporate Governance Overview

Appointment/Dismissal

CSR Procurement/Quality and Safety

Website-Only Content

For a more detailed look at thesix DENKA100 areas of activity,
please see page 1 of the webbased CSR Report references.

ReportInitiatives with Customers and Suppliers

Unless stated otherwise, the data in this report is based on informationon the business sites of DENKA and key affiliates. These sites are theOmi, Omuta, Chiba, Shibukawa, Ofuna and Isesaki plants and theCentral Research Institute. The key affiliates are Denal Silane Co., Ltd.,
Denak Co., Ltd., JUZEN Chemical Corporation at the Omi Plant, andChiba Styrene Monomer Limited Company, TOYO STYRENE Co., Ltd.,and Taiyo Vinyl Corporation at the Chiba Plant.
Financial information presented on page 13 and references thereto is
consolidated data.

To guide our CSR activities, we established the DENKA Group Guidelines
underpinned by the DENKA100 corporate philosophy. We introduce the
Guidelines on page 5 of the web-based
CSR Report references.

Audit

33

Scope

To Become aCompany That Creates
New Value from
Resources by
Fully Employing
Our Technological
Capabilities

Implementation30
32This report generally covers fiscal 2011—April 1, 2011, through March
31, 2012—however, it also includes numerical targets and performancestatistics from dates preceding that period as well as information on
subsequent events.

Taking on New Challenges
as We Near Our Centennial

Appointment/Dismissal

Environmental Initiatives
Environmental Activities/
Responsible Care Activities*
Recycling Business at Cement Plants
CO2 Reduction, Energy-Saving andInitiatives in Logistics

DENKA set up its CSR Promoting Dept. in April 2007 as part of
DENKA100, a Companywide initiative to meet new challenges whileheading toward its centennial in 2015, and has reported all of its CSR
activities since October 2007. (In January 2012, the CSR Promoting
Dept. was absorbed by the CSR & Corporate Communications Dept.)
The CSR Report 2012 features the DENKA Group’s response to theGreat East Japan Earthquake, which we believe must be given priority ofplace in our reporting, along with a timely report on our international contributions. In addition, we improved the structure of the CSR Report,
placing focus on occupational safety and health in light of an unfortunate
increase in occupational accidents in fiscal 2011. Furthermore, to facilitate investors’ and shareholders’ understanding of DENKA, we included
consolidated financial highlights.
In preparing this publication, we referred to the Environmental
Reporting Guidelines 2012 by Japan’s Ministry of the Environment andVersion 3.1 of the Sustainability Reporting Guidelines of the Global
Reporting Initiative.

Report

DENKA100 Corporate Philosophy/
Corporate Governance Overview/
CSR Promotion Structure
Message from the President
Highlights:•‌Our Response to the Great
East Japan Earthquake•‌Initiatives to Secure Our Electricity Supply•‌Products for Social Contribution•‌CSR Activities Overseas

DENKA100
Corporate
Philosophy

Editorial Policy

CONTENTS

As of January 2012

DENKA CSR REPORT 20123

Message from the President

To All of Our Stakeholders

Ongoing Support for the Reconstruction of theDevastated Area
It has been over a year since the Great East Japan Earthquake
struck. Once again, we would like to express our heartfelt sympathy
and deepest condolences to those who suffered due to the earthquake and sincerely wish for the earliest possible recovery of thedevastated areas. Right after the earthquake, we began providing
relief aid, supporting the early recovery of railway tracks and otheractivities. At present, we are promoting reconstruction through ourbusiness activities, including the provision of countermeasuresagainst soil liquefaction, products that increase earthquake damage
resistance and a fertilizer that improves the fertility of farmland thathas suffered salt damage. Moreover, in summer 2011, we launched
the Disaster Area Support Program, and over 150 employees haveparticipated in volunteer activities through this program in the areas
ravaged by the earthquake and tsunami, including the MinamiSanriku district. Driven by a desire for the earliest possible recoveryof the devastated areas, we will further pursue such support activities together with our employees.

Developing and Improving a Structure That Can
Respond to Change
While bringing untold destruction, the Great East Japan Earthquake
also prompted us to reconsider our social responsibility as a company.
Therefore, in addition to safety and disaster prevention measures,
our management issues have expanded to include such matters as
the stability of the supply chain and energy saving. Moreover, therapid escalation of problems associated with nuclear power generation forced the country to take steps against radioactivity and deeply
impacted the energy supply. Along with the poor recent economic
conditions reflecting such factors as the European sovereign debt
crisis and appreciation of yen, these issues helped deepen uncertainty in the management environment.

4

DENKA CSR REPORT 2012

Given the circumstances, DENKA is strategically implementing
DENKA100 Companywide initiatives. We are upholding the strategic
goals of developing high-margin products in high-growth market
segments and regions to attain further growth, especially overseas.
In particular, we newly established and expanded facilities producing
heat-resistant modifiers, electronic materials and polymer processing
products in Singapore and China. R&D bases were also inaugurated
in these two countries. Moreover, we appointed staff to be in chargeof special cement additives in regions where social infrastructure is
rapidly developing as an emergent sector. We will adapt to this ageof change by promptly and accurately assessing trends in the needsof the growing Asian region.

Fulfilling Our Corporate Social Responsibility as a
Chemical Company Operating on a Global Basis
As a chemical company, DENKA creates products of value by consuming resources and energy. Accordingly, we have a responsibility
to take into consideration such issues as environmental preservationand the reduction of environmental burdens.
To ensure that we can continue to steadily operate production
plants that handle a variety of chemical substances, we must implement safety measures that make workers as well as neighboring residents feel at ease. Furthermore, the products we manufacture mustsatisfy safety requirements and be of high quality to gain the trust ofcustomers. DENKA is participating in Responsible Care (RC) activities
promoted by the Japan Chemical Industry Association and striving to
improve its operations in light of the entirety of products’ life cycles
from the perspectives of environmental preservation and safety.
In fiscal 2011, however, we saw an increase in the number ofoccupational accidents that may lead to grave accidents. In
response, we newly established the in-house Safety Countermeasure
Committee to analyze such accidents and to implement recurrence
prevention measures. In implementing such measures, moreover, weSincerely Striving to Conform with ISO 26000
Introduced in 2010, the international ISO 26000 CSR standard places emphasis on labor-related CSR and communication with stakeholders. We recognize that a company’s growth is dependent on the
personal growth of its employees. Accordingly, we uphold “humanresource development” as one of the DENKA100 management
plan’s goals. In line with this goal, we are enhancing education programs, improving human resource management and creating working environments that enable workers to develop their potential. We
are also focusing on measures against mental health problems byadditionally appointing personnel to take charge of such problems.
Moreover, we are developing a training system that will nurture
employees who are capable in overseas operations and planning tohire human resources with broader backgrounds.

At our plants and our research facility, we are holding a variety ofevents intended to facilitate exchanges with people in local communities. In fiscal 2011, we focused on providing chemistry lessons andplant tours especially for elementary school students. It is hopedthat such events, by encouraging the interaction of DENKA employees with children and their parents as well as teachers, will facilitate
greater understanding of the DENKA Group’s business operations
as well as nurture interest in chemistry.
As for initiatives to deepen communication with stakeholders,plans call for completing the construction of the “DENKA Innovation
Center” in Machida City, Tokyo, by spring 2014. Aiming to create afacility that is open to society, the center will furnish a space where avariety of people will be able to meet and exchange views. For
example, the center will host researchers with new ideas or excellent
techniques from Japan and overseas. By doing so, we will strive toattain technological innovation in broader fields, including energy
and life science, and thus contribute to society.

Business Performance and Social
Responsibilities—Inextricably Linked
Thanks to the support of its stakeholders, DENKA has been able tocontinue its operations up to the present. Remaining a company
with earnest attitude and maintaining sincere dealings are our essential traditions as a manufacturer. DENKA’s vision of supporting social
development has been a driving force of its business since its founding. In line with this vision, we have been monitoring market needs
through close communications with stakeholder, while continuously
enhancing our technologies and creating products with value. We
must ensure that this vision continues to inspire us for the next 100
years. We recognize that improving business performance and fulfilling our responsibilities as a member of society must be realized intandem—neither pursuit can be taken on by itself; the two are inextricably linked. Gaining the trust of society is our motivation as we
strive to achieve further growth as a company.
We would be delighted to hear your frank opinions with regard
to this CSR Report. Based on your continued support, we will further promote our CSR activities.

Shinsuke Yoshitaka
President & CEO

Pursuing New Challenges through DENKA100 for Our Centennial
The Value of a Company That Endures 100 Years Is
Attributable to the Efforts of Each Employee

We will construct plants in various locations and conduct large-scale
manufacturing in the future. In doing so, we will meet the demandfor chemicals, which is rapidly increasing year by year, while
anticipating the future export of our products abroad. Moreover, we
will pursue a range of chemical manufacturing operations.
The prospectus drawn up prior to the Company’s founding in
1915, expresses an ambitious attitude toward the chemicalindustry, which at the time was expected to develop dramatically.
To the present day, a similar attitude has driven our growth.
DENKA’s corporate value is something that has been and continues to be created, supported and added to by a great number of
employees as it is passed onward from generation to generation.

This is the secret of DENKA’s long and lasting operations. We
also believe that this will be key to creating our path in the next
100 years.

Toward Our 100th Anniversary
Aiming to make DENKA a company that creates new value fromresources by fully employing its technological capabilities,
DENKA100 involves Companywide activities across six pillars inwhich specific action plans formulated by each business unit are
pursued.
Recognizing the current era as a time of market and technological change, we will open our way to the future as a chemical
manufacturer by providing growing markets with products that
contribute to society accurately and in a timely manner. By doing
so, we hope to secure our growth for the next 100 years.
DENKA CSR REPORT 20125

Message from the President

Background: A painting entitled “Sankyozawa hydroelectric power plant.”*
Sankyozawa is where the calcium carbide mass-production method was first developed and applied in Japan.
*Bernard Buffet ©ADAGP, Paris & JASPAR, Tokyo, 2012
D0063

will thoroughly review our organization to prevent occupational accidents. Also, we promoted grassroots efforts at the worksite level
aimed at, for example, implementing the Good Company Program(GCP), which covers a number of initiatives aimed at ensuring greater
safety by rejuvenating communication and by raising awarenessamong workers. We will strive to eliminate occupational accidents bynurturing a safety-oriented corporate culture.
At the same time, we are aware that the expansion of our business overseas entails compliance with the laws, regulations andsocial ethics of each country in which we operate. We decided not
to appeal against the European General Court’s judgement in
February 2012 pertaining to an allegation of EU Competition Law
violation with regard to sales of polychloroprene (see news releases
as of January 15, 2008, February 3, 2012, and March 26, 2012,
posted on our website). Upon serious reflection, we have resolved toreview the existing in-house education system with the aim of deepening employees’ understanding of the legal systems enforced ineach country. Moreover, we will strive to nurture each employee’s
legal awareness and thus regain the trust of society.
On the other hand, we licensed our calcium carbide-related
technologies to a Chinese company in autumn 2011. Accumulated
over many years, DENKA’s environmental and energy-saving technologies are expected to significantly contribute to water resource
preservation as well as CO2 reduction. On top of that, among othermeasures we are augmenting our hydroelectric power plants’ generation capacity and strengthening recycling operations at our cement
plant. Looking ahead, with the goal of furthering global environmental preservation, we will proactively pursue actions that are uniqueand can be undertaken only by DENKA. We believe that this is how
the DENKA Group will fulfill its social responsibility.

Highlights: Our Response to the Great East Japan Earthquake● Comprehensive emergency drill at Headquarters(November 2, 2011)

Workers wearing
disaster prevention
helmets practicing
evacuation
procedures‌The Extent of Damage Sustained by the DENKA
Group in the Tohoku Region and Support
Activities Undertaken by Niigata Branch
Fortunately, the offices of our Tohoku Branch (Sendai City, Miyagi
Prefecture), which is located in the midst of the devastated region,sustained no damage, and the branch’s staff and their families werealso spared. However, inventories stored in warehouses in Sendai
and Hachinohe were submerged and one company vehicle wasdamaged by a fall from a multistory car park.
At the Sendai Branch of DENKA Group member Yamatomi
Trading Co., Ltd. (currently, YK Inoas Co., Ltd.), shelves fell andthere was flooding in the upper levels due to the fracturing of a pipe
connected to the building’s rooftop water tank. It took the branch amonth to fully recover its business functions.
None of the employees of DENKA Azumin Co., Ltd. (Hanamaki
City, Iwate Prefecture) or their families saw any damage. On theother hand, stores of lignite (brown coal) at the Ofunato Port andinventory in the Ishinomaki Port warehouse were both damaged by
the tsunami that followed the earthquake. A transformer in the
power house at DENKA Azumin was damaged as well. However,there was no significant damage to facilities and the company
resumed operations on April 4, 2011.
Right after the earthquake struck, the Niigata Branch delivered
aid supplies to the Tohoku Branch in tandem with the Hokuriku
Branch and the Omi Plant. Drawing on the experience of the
Chuetsu and Chuetsu-Oki Earthquake, housewares, including premoistened tissues and tabletop-type portable gas stoves weredelivered on three occasions.

A special edition of the in-house Japanese-language newsletter “Gunbai” wasissued in May, 2011, with the title “Two months after the Great East Japan
Earthquake” and featuring notes written by staff working at each office

Donations
On March 17, 2011, the DENKA Group donated ¥20 million to theJapanese Red Cross Society, with the hope that the areas strickenby the Great East Japan Earthquake would recover as soon as
possible.
Moreover, the contributions spontaneously provided by staff at
all our business sites, including the Headquarters, branches andplants totaled ¥4,466,146. The Company distributed ¥2,300,000of this amount as disaster relief for 22 staff stationed in the devastated areas and donated the remaining ¥2,166,146 to theJapanese Red Cross Society.

6

DENKA CSR REPORT 2012

Countermeasures to Ensure Supply Chain MaintenanceAlthough the DENKA Group’s production facilities sustained no significant damage, some of the Group’s suppliers of raw materials
were forced to temporarily suspend production due to earthquake
damage as well as such factors as shortages of materials and parts
and the planned power outages following the earthquake. Even so,thanks to the early recovery of such suppliers’ capabilities, which
was attained within a period from several weeks to a couple ofmonth after the disaster, the impact on our production was minimal.
Nonetheless, we are currently working to figure out countermeasures against such vulnerability in our supply chain.
• ‌Formulation of a Business Continuity Plan (BCP) to ensure continued procurement when major disasters strike• Increase the number of (and secure at least two) suppliers for each‌type of raw material while seeking out alternative raw materials• ‌Review existing standards with regard to raw material stocks• ‌Strengthen the overseas procurement capability• ‌Update detailed information on raw materials as well as suppliers

Volunteer Activities in the Devastated Areas
In July 2011, DENKA launched the “Disaster Area Volunteer
Support Program,” in which the Company and employees engage
in support activities together. As of August 2012, the number of
employees participating in the program exceeded 150 and support
activities were held on 19 occasions, mainly at Minami Sanriku-Cho,
Miyagi Prefecture, one of towns that suffered grave damage fromthe Great East Japan Earthquake and tsunami.

It has been over a year since the earthquake, however, it should
be noted that the devastated areas still need a great deal of help.
Together with our employees, we will continue to stand by those
who were devastated by the earthquake and contribute to therecovery and reconstruction of the devastated areas through continued support activities.

The first round of volunteers dispatched to the devastated areas

The ninth round of volunteers: Two female staff participatedBCP Initiatives
DENKA is reviewing and strengthening its disaster prevention structures, taking lessons from a number of the events that accompanied the Great East Japan Earthquake. We relocated computer
servers that are important to operations, moving them from
Headquarters to specialized facilities with an assured higher level ofsafety. This was undertaken with the aim of developing a decentralized and networked system in preparation for the earthquake that is
expected to occur someday directly beneath the Tokyo Metropolitan
Area. We also equipped the Omi Plant with backup head office
functions, to ensure greater resilience in the face of disaster.
Meanwhile, we conducted a survey of the earthquake resistance of buildings at each plant. Based on this, we are developing
our disaster prevention systems, focusing on countermeasuresagainst wide-area disasters as well as business continuity.
We are also assessing potential risk at each phase of operations from raw material procurement to the delivery of products.
This will allow us to evaluate the impact on business activities as awhole that such risk poses and implement countermeasures against
significant risk. Through such efforts, we are continuously striving toenhance durability of our entire business structure.

● Energy-Saving Measures
In 2011, the Japanese Government requested that all business
operators cut energy consumption 15% due to an expected electricity supply shortage in the summer. In response, for office workers the Headquarters, branches and sales offices implemented“Cool Biz,” which encourages male employees to forgo wearing
jackets and ties while excluding the vest from the female staff uniform. We also suspended the use of refrigerators. We once again
made sure that all the office equipment was set to energy-saving
mode. In addition, we shifted days off and specified periods inwhich the utilization of paid leave is encouraged, aiming to achieve
greater energy efficiency by adjusting employees’ work schedules.
Thanks to all these efforts, we successfully attained the abovementioned energy-saving target.

The first round of volunteers: Volunteers getting rid of mudfrom a strawberry farm greenhouse (July 31, 2011)

Employees participating in the 12th round ofvolunteer activities (February 25, 2012)

Supporting Reconstruction and Disaster Preparation
DENKA is supporting the reconstruction of areas devastated by theGreat East Japan Earthquake and tsunami by ensuring prompt andstable supplies of its products, including construction materials andfertilizers.
Right after the earthquake struck, we responded to urgent calls
for cement and special cement additives as efforts were made to
restore the Tohoku bullet train service as quickly as possible. We
were given a letter of appreciation from the East Japan Railway
Company for our swift response to such needs.
In fiscal 2011, we established the Disaster Reconstruction
Support Division to support efficient reconstruction. We provide
products that will be sought-after items as reconstruction moves
forward, including; TOYODRAIN, a drainpipe used in civil engineering; TOYO GUTTERS, which can be installed on temporary housing
as well as regular housing; DENKA CSA, a special cement additivethat reduces dry shrinkage and cracks in concrete structures;
DENKA PRETASCON, which is used in seismic strengthening;

DENKA ES, which is designed to strengthen unstable ground andreinforce it against earthquake; and DENKA NATMIC for use in tunnel construction. We believe these products will contribute significantly to the reconstruction and restoration of social infrastructure in
the devastated areas. Moreover, we are ready to promptly releasenew products in response to unmet needs as they are identified.
In addition, it has been confirmed that “Azumin” a fertilizer produced by DENKA Azumin Co., Ltd., has a beneficial effect on farmland that has suffered salt damage due to tsunami flooding. If thisproduct is mixed into desalinized soil, it will reduce such soil’s inhibitory effect on growth and revitalize the roots of agricultural crops.
Azumin is expected to contribute to the restoration of the agricultural industry in the devastated areas.
Looking ahead, we will further strive to provide the materials
and technologies needed in the devastated areas in order to speedreconstruction.

A pier of the Tohoku bullet train’s
elevated railway between MizusawaEsashi and Kitakami stations, which
was damaged by the earthquake

Shinsuke Yoshitaka, president of
DENKA, receiving the letter of appreciation from Mr. Mitsuharu Mizuno, deputy director of Facilities Department of
the East Japan Railway Company

A restored pierReinforcing the ground against
earthquake damage using DENKA ES
DENKA CSR REPORT 20127

Highlights: Our Response to the Great East Japan Earthquake

Contributing to Reconstruction in the Devastated Areas
while Developing Emergency Response Structures

Highlights: Initiatives to Secure Our Electricity Supply‌
Utilizing
Clean Energy—Hydroelectric Power
Generation

Highlights: Initiatives to Secure Our Electricity Supply

Striving to Secure a Stable Electricity Supply while
Promoting Clean Energy
History of Hydroelectric Power Generation
Having established hydroelectric power plants during the Taisho andAccounting for 30% of DENKA’s total electricity consumption,

early Showa eras (1921–1945), DENKA currently owns one hydro-hydroelectric power largely contributes to the reduction of CO2

electric power plant along the Omi River system, five along theemissions as a clean energy source while helping to secure a stable

Himekawa River and four along the Umikawa River. In addition,

power supply in the midst of tight electricity demand.

Kurobegawa Electric Power Company, which was jointly establishedby DENKA and Hokuriku Electric Power Company, maintains five

Breakdown of Electricity Use by Power Source
DENKA uses electricity generated by 15 hydroelectric power plants,
which include five that are jointly owned, four thermal power plants
and a cement waste heat recovery power plant,* as well as purchased electricity. The in-house power generation ratio is approximately 55% of total electricity use. At thermal power plants, wehave been changing over the fuel used from heavy oil to natural gas
in an initiative to reduce CO 2 emissions. In addition, we have
improved the efficiency of natural gas power generation by adopting
cogeneration** facilities.

hydroelectric power plants. The total maximum output of all thesefacilities is approximately 110,000kW.
The natural inflow type hydropower generation system
employed at our in-house hydroelectric power plants uses themomentum of water drawn from a river and flowing downward
through a conduit to rotate a turbine runner that generates electricity.
As the flow of water is very strong, the facilities in this type of hydromaintenance necessary. Moreover, over their long history of operation, some of our plants have suffered grave damage due to mudslides. In sum, maintaining and managing hydroelectric power plants* Cement waste heat recovery power plant: A power generation facility using
waste heat from cement factories** Cogeneration: A system using waste heat generated from gas turbine power
generation that simultaneously produces steam to enhance the energy efficiency
of fuelrequires constant vigilance as it may mean battling with nature.
Itoigawa
Omigawa

Kajiyashiki

Umikawa

Omi

Hayakawa

Himekawa■ Power Sources in Fiscal 2011

Kubiki-Ono 10
9Oyashirazu
1

8

55%

7

12

Hydroelectric

45%

Total
consumption
1.98 billion
kWh

30%

13

(clean)

Nechi
Kotaki(clean)Cement waste
heat recovery power

1%2%(clean)Initiatives for the Next 100 Years● Renewal at Oami Power Plant
At this plant, we are enhancing efficiency of the facilities, specifically,

With the first having been established 90 years ago, our hydroelec-

we are renewing the water turbine runners and generators. In fiscal

tric power plants are a valuable legacy handed down from our pre-2011, we renewed a second generator and water turbine runner atdecessors. Hydroelectric power generation is a low-cost energy

Oami Power Plant. As a result, the Plant’s maximum power genera-

source that generates minimal CO2 emissions. As part of efforts

tion capacity increased by 800kW to 25,900kW since April 2012.

marking the 100th anniversary of our founding, we plan to imple-

Looking ahead, we will work to further improve the existing facilities

ment comprehensive upgrades so that these valuable facilities con-while planning the construction of a new hydroelectric power plant.

tinue operating for the next 100 years. Moreover, our plans call for a
10% increase in these hydroelectric power plants’ total output by
2015 compared with that of fiscal 2007.

11

4
Hiraiwa

Thermalpower(natural gas)

22%
Thermal power(heavy oil)

14

Total generated in-house2

Electricity
purchased

Oami Power Plant

electric power plant are subject to severe abrasion, making constant

3

5
6
15

Kitaotari
Kita-otari
1
2
3
4
5
6
7
8

Omigawa Power Plant (3,300kw)
Kotakigawa Power Plant (4,200kw)
Oami Power Plant (25,900kw)
Otokorogawa Power Plant (8,400kw)
Yokokawa Power Plant No. 1 (10,000kw)
Yokokawa Power Plant No. 2 (16,000kw)
Umikawa Power Plant No. 1 (3,800kw)
Umikawa Power Plant No. 2 (4,700kw)

9 Umikawa Power Plant No. 3 (2,600kw)
10 Umikawa Power Plant No. 4 (900kw)
11 Himekawa Power Plant No. 6* (26,000kw)
12 Takigami Power Plant* (15,000kw)
13 Nagatsuga Power Plant* (5,000kw)
14 Sasakura Power Plant No. 2* (10,200kw)
15 Kita-otari Power Plant* (10,700kw)* Jointly owned with Hokuriku Electric Power Company

Oami Power Plant, where facility renewal took place‌Summertime
Energy-Saving Measures at
Production Sites● Energy-Saving Measures in Fiscal 2011
We introduced diesel generators at some plants to maintain operaThe Kotakigawa Power Plant, operating for 90 years

tions without the need to adjust production. In addition, we shifted● Maintenance and Management of Power Plants

operating hours to nighttime and holidays while executing produc-

In winter, transmission lines are checked using helicopters, while at the plants snow must be removed.

tion plans ahead of the initial schedule to keep down daytime energy consumption in summer. At the same time, to save energy inoffices we turned up the temperature settings on air conditioners
and removed some of the lighting.

● Measures Implemented to Date in Fiscal 2012
We continued to implement summertime energy-saving measures infiscal 2012. To suppress daytime energy consumption in summer,
we executed production plans ahead of the initial schedule and suspended operations of some machinery during the day. Also, in our
offices we turned up the temperature settings on the air conditionA helicopter heading to patrol

8

DENKA CSR REPORT 2012

Snow piled up on a power plant facility

A generator at the Kotakigawa Power Plant with an output of 4,200kW

ers and did without unnecessary lighting.
DENKA CSR REPORT 20129

Highlights: Products for Social Contribution

Highlights: CSR Activities Overseas

Products for Countermeasures against Subsidence and Soil Liquefaction

DENKA Will Fulfill Its Role in the Growing Asian
Economies by Undertaking CSR Activities Groupwide
Calcium Carbide-Related Technologies Licensed to China

The Great East Japan Earthquake brought to light the importance ofpose construction methods and combinations of products that

During the year under review, DENKA initiated licensing in China of

100,000 tons or more. Given that the estimated annual nationwide

taking countermeasures against subsidence and soil liquefaction. In

effectively prevent subsidence and liquefaction. More information on

its dry acetylene generation technology (dry process) for generatingproduction capacity of China is 10,000,000 tons or more, it is

response, DENKA is strengthening its operating structure to provide

the topic of DENKA products for use in countermeasures against

acetylene from calcium carbide. If this water-saving technology—

expected that the dry process will be widely adopted. Moreover,countermeasures against such phenomena. With a focus on

soil liquefaction is available on our website in an article entitledwhich decreases the moisture content of the slaked lime that is the

DENKA has received a number of requests from calcium carbide

cement, special cement additives and other related products,“Shin-chaku Jouhou” posted on August 4, 2011.

byproduct of the process to 10% or less—is widely adopted for

manufacturers for the licensing of its technologies. In response,

including water permeable pipes made of polypropylene, we pro-(http://www.denka.co.jp/konwazai/topics)*

acetylene gas production, considerable energy and water savings

DENKA has begun providing some other manufacturers with techni-

can be expected, particularly with regard to drying slaked lime,

cal guidance on the stable operation of an electrical furnace,

which is recycled as a cement raw material.

improvement of energy consumption intensity and energy saving.

Products Overview Examples of application: 1 Airport 2 Port 3 Railroad 4 Construction of housing 5 Road 6 River 7 Sewage 8 Housing land
DENKA
Applications:
4 5SP20,
6 7 8
1 SOIL
2 3 PACK

DENKA Silica Balls

SP2000 series

An injection material in slurry form
incorporating an ultra fine silica powder comprising particles with a maxistrengthens soft ground by causing
mum diameter of 1μm and boasting
dehydration.
SimplyApplications:
4 5 7
8 by mixing it with
Examplesof soil,
application:
AirportRiver 7 permeability.
Sewage 8 Housing land
2 Portsoft
3 Railroad 4 Construction of housing 5 Road 6
excellentthethe user1can
improve
A soil stabilization material that
Applications:
1 2 3 5 7

The agreement covers the licensing of technology for polyvinyl

Looking ahead, we will continue to contribute to the solution ofchloride production facilities with an annual production capacity ofthe environmental and energy-related issues as we aim to gain agreater presence in the global industrial sector.

●Calcium Carbide-Based Product Manufacturing Process

Calcined
Examples of application: 1 Airport 2 Port 3 Railroad 4 Construction of housing 5 Road 6 River
7 Sewagelime
8 Housing land

ground.
Applications: 1 2 3 4 5 6 7 8

Cokework used for construction.

Applications: 1 2 3 4 5 6 7 8Applications: 1 2 3 4 5 6 7 8

DENKA provides
technology forthis process

Applications: 1 2 3 4 5 6 7 8
Heated in electrical furnace
Applications:
1 ES-L
2 3 5 7
DENKA ES,A cement-based quick-hardening
Calcium carbide
Applications: 1 2 3 5 7Applications:
5 7 a8low-pollution
material that4boasts
DENKA CG1000, CG2000
Reaction with water
characteristic as well as high durabilCavity sealantApplications:
4 material
5 7 8with plasticity.
ity. It was especially developed to
Examples of application: 1 Airport 2 Port 3 Railroad 4 Construction of housing 5 Road 6 River 7 Sewage 8 Housing land
accelerate the solidifying and hardAcetylene gas
Slaked lime
Examplesof application:
2 Port3 Railroad 4 Construction of housing 5 Road 6 River 7 Sewage 8 Housing landeningof cement1inAirport
terrestrial
grouting

Ingredients of such materials as polyvinyl chloride

Applications: 1 2 3 5 7Signing ceremony held in Pingdingshan City, Henan Province, China(October 20, 2011)

Applications:
1 2 3Super
5 7
DENKA Colloidal
Applications: 4 5 7 8In addition to strength and high duraApplications:
4 5 7 powder
8
Support for the Department of Japanese Studies of the National University of Singapore (NUS)
bility, this super-finecementTOYODRAIN TDZ50—TDZ200
additive boasts excellent permeability(Spirally Reinforced Structure)and is easy to inject.
With high strength and excellent
Denka Chemicals Holdings Asia PacificMessage from NUS
Examples of application: 1 Airport 2 Port 3 Railroad 4 Construction of housing 5 Road 6 River 7 Sewage 8 Housing land
water permeability, this product isPte. Ltd. (DCHA)
Established in 1981, the Department of Japanese Studies at NUS
Examplesof application:
1 Airport 2 Port
composedof polypropylene
non-3 Railroad 4 Construction of housing 5 Road 6 River 7 Sewage 8 Housing land
Deputy Managing Director
is one of the leading Japanese study institutions in Asia. Japan isApplications: 1 2 3 4 5 6 7 8
woven cloth with a spirally ribbed
a country from which Singapore has much to learn, and it is endMuneatsu Miidasupporting structure.
Applications:
4 5 6 7to 8
1 2 3 Impervious
Applications: 1 2 3 5 7lessly interesting to us. In particular, Singapore is home to manysoil, TOYODRAIN smoothly absorbs
DENKA S pack
In Singapore, the DENKA Group supports
water
along
its
entiresurface.
Non-shrink
grout
additive
developed
long-established Japanese companies. We are greatly interested
Applications:
1
2
3
5
7
Applications: 4 5 7 8
the Department of Japanese Studies into be used as the primary injection
in such companies’ secrets of success. In November 2011, Ms.
NUS’s Faculty of Arts and Social
Applications: 4 5 7 8material in the dual-tube double
Elly Chia, who is currently an employee at DENKA and an alumnus
packergrouting1method.
Sciences. Some of the university’s profesExamples
of application:
Airport 2 Port 3 Railroad 4 Construction of housing 5 Road 6 River 7 Sewage 8 Housing landof this Department, presented a lecture on the corporate culture ofMore information on the topic of DENKA products for use in countermeasures
Applications: 1 2 3 4 5 6 7 8Applications: 1 2 3 5 7against soil liquefaction is available on our website in an article entitled “Shin-chaku
Jouhou” posted on August 4, 2011. (http://www.denka.co.jp/konwazai/topics)** Japanese only

sors were interested in DENKA, which, over its 32 years in
Singapore, has been developing businesses encompassing a broadarray of subjects from petrochemicals to inorganic chemicals.
Invited by these professors, I was given the opportunity to deliver a

Applications: 4 5 7 8

lecture at NUS on March 14, 2012. Over the course of the lecture,

CO2-SUICOM** CO2 Absorption Concrete

which approximately 100 undergraduates attended, I talked about

CO2-SUICOM is an environment-friendly concrete jointly developed

adoption of CO2-SUICOM and thereby help-

DENKA’s business as well as the characteristics and future direction

by DENKA, Kajima Corporation and the Chugoku Electric Power Co.,ing reduce environmental burdens.

of Japanese companies. The undergraduates were enthusiastic,

Inc. The usual concrete manufacturing process generates emissions**‌CO2-SUICOM: CO2-Storage Under Infrastructure
by COncrete Materials

asking me about matters such as the career prospects of nationalamounting to between 200 and 400 kilograms of CO2 per cubic
meter of concrete. With CO2-SUICOM, we have succeeded in reduc一般的なコンクリート●Environment-Friendly Concrete

staff in Japanese companies and for an overview of Japanese-style
CO2-SUICOM Paneling the volume of emissions generated virtually to zero or less, for thismaterial hardens itself by absorbing CO2. Moreover, we achieved

Emissions halved by reducing
the amount of cement usedgreater durability by suppressing neutralization and chloride penetration, which both cause the deterioration of concrete. In fiscal 2011,
セメント工場

CO2-SUICOM was used for the first time for general housing conセメント

struction. In response to growing interest in the reduction of CO2
emissions in the construction industry, DENKA is expanding the
トータルCO2排出量 200〜400kg/ｍ3

10

DENKA CSR REPORT 2012

Thermal Power Plant

Cement Factory

Coal Ash

CementForcibly absorbing CO2
Total CO2 Emissions: Below 0kg/ m3

Japanese companies. This was followed by Mr. Miida’s lecture in
March 2012 on the history of DENKA and factors that have contributed to its success in Singapore. It was gratifying to directly
hear the voices of corporate executives, who we seldom havecontact with. We would like to ask DENKA for continued understanding of and support for our studies and activities, for the sakeof friendship between and mutual growth of Singapore and Japan.

Reduce the amount of cement
by using coal ash

corporate governance. Looking ahead, the Company plans to provide the Department with as muchsupport as possible. By doing so,
we would like to contribute to thefriendly relationship between Japanand Singapore, if only by a modest
amount.

Head of Department,
Associate Professor

Deputy Head,
Associate Professor

Dr. Hendrik Meyer-Ohle

Dr. Thang Leng Leng

Tour of the Seraya Plant of Denka Singapore Pte. Ltd
DENKA CSR REPORT 201211

Highlights: Products for Social Contribution/ CSR Activities Overseas

Products That Provide Measures against Earthquakes
and Contribute to CO2 Reduction

About DENKA
Corporate Data/Board of Directors/Shareholder Information

Board of Directors (as of June 22, 2012)(Millions of yen)

Established: May 1, 1915

Directors, Corporate Auditors and Executive Officers

Paid-in capital: ¥36,998,436,962

Shinsuke Yoshitaka........ President and Representative Director, Chief

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

Net sales

363,996

334,130

323,875

357,893364,712

Tetsuro Maeda............... Representative Director, Chief Operating officer

Operating income

29,912

10,302

21,655

24,61820,713

Hitoshi Watanabe.......... R epresentative Director, Senior Managing

Ordinary income

24,9183,094

16,88823,052

18,996

Net income

6,660

1,439

10,474

14,355

11,330Total assets

375,364

377,912400,407402,046

402,552

Total net assets

161,870

150,142

160,316

168,182

172,737

Total shareholders’ equity ratio (%)

41.6

39.1

39.4

41.2

42.3

Net income per share (yen)

13.57

2.89

21.33

29.24

23.22

Net assets per share (yen)317.91300.60321.46337.35353.64

Employees: ‌4,921 (consolidated) and

Executive Officer

2,800 (non-consolidated)
Sites

Executive Officer● Head Office:	Nihonbashi Mitsui Tower, 1-1,

Nobuyoshi Sakuma....... Director, Senior Managing Executive Officer

Nihonbashi-Muromachi 2-chome,
Chuo-ku, Tokyo 103-8338, Japan
Tel: +81-3-5290-5055

Head Office(Nihonbashi-Mitsui Tower)● Branches

Kenichi Ono................... Director, Managing Executive Officer
Daiichiro Uematsu......... Director, Managing Executive Officer
Mitsukuni Ayabe............ Director, Managing Executive Officer	Osaka, Nagoya, Fukuoka, Niigata, Hokuriku (Toyama),

Kozo Tanaka.................. Outside Director

Sapporo and Tohoku (Sendai)

Tadashi Hashimoto........ Outside Director● Sales Offices
Nagano, Gunma, Hiroshima, Shikoku (Takamatsu), Akita● Research Institutes

Hideo Oishi.................... Standing Corporate Auditor
Jiro Hiroe....................... Standing Corporate Auditor	Central Research Institute (Machida, Tokyo)
Polymer & Processing Technology Institute (Ichihara, Chiba)● Net sales● Operating income● Ordinary income(billions of yen)(billions of yen)(billions of yen)

30

30

Toshiaki Tada................. Outside Corporate Auditor● Plants

Tsunehiro Sasanami....... Outside Corporate Auditor	Omi (Itoigawa, Niigata), Omuta, Chiba (Ichihara, Chiba),

Tatsuhiro Aoyagi............ Senior Executive Officer

Shibukawa, Ofuna (Kamakura, Kanagawa) and Isesaki

Shotaro Fujii.................. Senior Executive Officer

400
357.9 364.7

364.0
334.1

300

Shohei Tamaki............... Senior Executive Officer

New York, Düsseldorf, Singapore, Shanghai, Beijing, Suzhou,

Hideyuki Udagawa......... Senior Executive Officer

Hong Kong, Taiwan and Seoul

Norihiro Shimizu............ Senior Executive Officer

21.7

20

23.1
20.7

20

19.0
16.9

200
10

Manabu Yamamoto ...... Senior Executive Officer

Major Affiliates

24.9

24.6

323.9

Shinji Sugiyama............. Senior Executive Officer

Overseas Subsidiaries & Offices

29.9

10

10.3

100

Toshiharu Kanou............ Executive Officer

DENKA Polymer Co., Ltd. (Koto-ku, Tokyo)

3.1

0Kazuyuki Koyama.......... Executive Officer

DENKA SEIKEN Co., Ltd. (Chuo-ku, Tokyo)

07

Akihiko Okuda............... Executive Officer

CRK Corporation (Takasaki, Gunma)

Kenji Nakano................. Executive Officer

DENKA Azumin Co., Ltd. (Hanamaki, Iwate)

08

09

10

Masaharu Suzuki........... Executive Officer

Net income
Net income per share(billions of yen)

200

11 (Fiscal year)07● Net income/Net income per share

Sanshiro Matsushita...... Executive Officer

Hinode Kagaku Kogyo (Maizuru Kyoto)

0

08

09

10

11 (Fiscal year)07● Total assets/
Total shareholders’ equity ratio
(yen)

60

Total assets（%）
Total shareholders’ equity ratio(billions of yen)400

400.4 402.0 402.6

60(billions of yen)

200

Total number of authorized shares

1,584,070,000

Shares of common stock issued

505,818,645

Number of shareholders

Other domestic corporations
6.3%

Securities companies
3.1%

Individuals and others
25.8%

Financial institutions
40.1%

300
41.6

The Master Trust Bank of Japan, Ltd.
(Trust Account)

36,165

7.50

Japan Trustee Services Bank, Ltd. (Trust Account)

33,816

7.01

National Mutual Insurance Federation ofAgricultural Cooperatives

15,965

3.31

10.5

10

39.4

41.2

42.3

10

11 (Fiscal year)

45

150

Total net assets
Net assets per share
321.46300.60160.3

337.35168.2

353.64
172.7

270

150.1

29.2

30

200

30

100

180

15

100

15

50

90

0

0

0

0

21.3
23.2

6.7

5
13.6
1.4

0

2.9

07

08

09

10

Japan Trustee Services Bank, Ltd. (Trust Account 9)15,755

3.26

Trust & Custody Services Bank, Ltd., as trustee forMizuho Bank Ltd. Retirement Benefit Trust Accountre-entrusted by Mizuho Trust and Banking Co., Ltd.

15,275

3.16

Mitsui Life Insurance, Co., Ltd.

11,908

2.47

Trust & Custody Services Bank, Ltd. (Securities
Investment Trust Account)

8,613

1.78

9.1%

Mitsui Sumitomo Insurance Co., Ltd.

6,916

1.43

SSBT OD05 OMNIBUS ACCOUNT - TREATY CLIENTS

6,840

1.41

Functional Materials
and Plastics

Trust & Custody Services Bank, Ltd. (Specified
Annuity Trust Account)

6,490

1.34

11 (Fiscal year)

07

08●Consolidated net sales by segment

09

10

0

11 (Fiscal year)

07

08

09

10

11 (Fiscal year)●Consolidated net sales by Japan and overseas

Others

20.9%
Electronic Materials

11.9%

Overseas
Fiscal 2011
consolidated
net sales¥364.7 billion

Organic Materials

44.8%

27.7%

Fiscal 2011
consolidated
net sales¥364.7 billion

Japan

72.3%

Inorganic Materials

13.3%

2. Percentage‌of shareholding is calculated excluding treasury stocks.
DENKA CSR REPORT 2012

(yen)

360

39.1

11.3

Number of Percentage
shares held of shares(thousands) held (%)

Notes: 1. Treasury‌
stocks (23,940,311shares) are not accounted for in theabove list of principal shareholders.

12

45

14.4

Major Shareholders

42,433(Reference) Shareholder Composition

Foreign corporations andindividuals
24.0%

317.91
161.9

15

09

● Total net assets/
Net assets per share

375.4 377.9

Shareholder Information (as of March 31, 2012)08

DENKA CSR REPORT 201213

About DENKA

Corporate Data (as of March 31, 2012)

Consolidated Financial Highlights

About DENKA
CSR Initiatives
About DENKA

Society• Local communities• Human rights• Employees’ happiness

DENKA Group’s CSR

CSR Vision
CSR activities are positioned as a key DENKA100 initiative. The
DENKA Group is systematically promoting such activities andfaithfully addressing various issues, including those related to theenvironment, safety, employment, compliance and social contributions. In order to continue its operations, it is essential that the
DENKA Group be accepted by society. We acknowledge that
improving business performance and fulfilling our responsibilities
as a member of society are pursuits that must be realized in tandem. Neither pursuit can be taken on by itself; the two are inextricably linked.
We recognize as stakeholders all those that our business
operations touch, including employees, suppliers, shareholders,Compliance/Social contribution/Product safety

Toward our CSR vision, “pursuing lasting
trust as an outstanding manufacturer,”the DENKA Group promotes its CSR

Pursuing lasting trust as an outstanding manufacturer

activities from the economic, social andenvironmental perspectives.

EconomyEnvironment

In fiscal 2011, we categorized core

• Concern for the
global environment• Security andDisaster Prevention• Returns to shareholders• Better customer
satisfaction

holder type to better set our goals

Zero accidents

Corporate governanceand allow the self-evaluation of ourEnvironmental preservation

Risk management

Green Innovation

Information disclosure

CSR issues from the abovementioned
three perspectives as well as by stake-performance.

investors, governmental institutions, NPOs and society as well as
the environment. In tandem with our stakeholders, we will strive tofulfill our responsibility as a member of society. In addition, we recognize that our initiatives for stakeholders are, in practice, con-

Mitsukuni Ayabe

ducted through our employees, for they are on the front lines of

Director, Managing Executive Officer
In charge of CSR & Corporate Communications Dept.

CSR activities. Because of this, we position our employees as primary stakeholders.

launched DENKA100 Companywide activities, the
DENKA Group’s CSR encompasses initiatives that proactively aim to achieve greater corporate value along

2015
DENKA1002010

Established the Environmental Burdens
Reduction Promoting Dept.

2009

2005
2000

Launched the Second Medium-Term
Environmental Plan

2007

2005

2007

Published the first
Environmental Report

2003

2000
1995

2003

2012
2011
2011
The Great East Japan Earthquake
Launched the Disaster Area Volunteer Support Program
Introduced Disaster Area Support Volunteer Leave Plan
Established Disaster Reconstruction Support Division

Commenced the Companywide DENKA100 initiative
Established the CSR Promoting Dept.
Launched the Third Medium-Term Environmental Plan
Published the first CSR Report

Launched the First Medium-Term Environmental Plan

1995
Japan Responsible Care Council (JRCC) established;
we became a member, created our Responsible Care policy andorganized the Responsible Care (RC) Committee
14

2010

DENKA CSR REPORT 2012

Major Challenges and Goals
in Fiscal 2012 and Beyond

A: Achieved significant results
B: Observed some results

scale CSR activities. Since 2007, the year in which we

Revised the personnel system

Results

History of CSR Activities

lished our first Environmental Report and launched full-2012

Performance

History of Responsible Care andEnvironmental Activities

Responsible Care Council. At the same time, we pub-2009

Fiscal 2011

Challenges• ‌Established the Safety Countermeasure
Committee (in response to increasing• ‌Securing occupational safety
accidents)and health (elimination of• ‌Securing occupational safety• ‌Augmented  occupational safety andoccupational accidents)C:and healthhealth activities focusing on facilitating• ‌Developing human resources
Increase• ‌Comfortable and rewarding • ‌Developing human resources
communication(nurturing a CSR mindset)
Employeesofworkplaces(nurturing a CSR mind-set)• ‌Implemented mandatory job level-based• ‌Ensuring information disclosure• ‌Ensuring information disclosure
training and specialist courses themed on accidents
about CSR activities atabout overseas business bases
nurturing proactive and spontaneous
overseas business bases
employees(China and Singapore)• ‌Released data on Singaporean subsidiary’s
CSR activities• ‌Decided not to appeal against theEuropean General Court’s judgement
pertaining to an allegation of violation of
the EU Competition Law in sales ofpolychloroprene• ‌Ensuring thorough compliance• ‌Maintain thorough• ‌Ensuring thorough compliance • ‌Improved the internal auditing system(review of educational
General public compliance as a good(reviewing internal auditing(strengthened cooperation between
programs and strengthening ofC
corporate citizen andsystem)Internal Auditing Dept. and Information
Legal Dept.’s authority)and local
reinforce communication• ‌Stepping up communications
System Dept.)• ‌Holding a Companycommunities
with local communities
with local communities• ‌Communicated with local communities
sponsored “chemical
through chemical experimental science
experiment” show
Societyclasses at each plant• ‌Contributed to social welfare througheducational and cultural initiatives involving
music (supported the Fureai Trio)• ‌Cooperated with local governments on
holding local community forums (Omuta• Pursuing R&D that utilizes
Governmental/
and Ofuna)• ‌Engage in public policies• ‌Participating proactively insubsidy systems and initiatives
A• ‌Drew on the Government’s subsidy system
External
and activities
public policies and activities
to improve production
to conduct R&D aimed at facility
Institutions
technologies
improvements that contribute to energysaving and environment conservation• ‌Prevention of global warming• ‌Promoting RC activities• ‌Implementing the Medium-Term • ‌Missed targets set forth in the Medium(CO2 emissions reduction),• ‌Implementing the MediumC
Environmental Plan
Term Environmental Plan (reduction in
curbing chemical substanceTerm Environmental Plan andMissed• ‌Conducting a review of RC
energy consumption intensity and PRTR*
The Environment
emissions, waste reduction,
formulating a plan for the next
targets
activity structure (application ofdesignated substances)
technological innovation forfiscal period (fiscal 2013 andsubcommittee system)• ‌Promoted RC activities
energy conservation
beyond)• ‌Developing and disseminating• ‌Developed technologies and products that• ‌Development and provisionenvironment-friendly products• ‌Developing environment-friendly provide countermeasures againstof high-quality, economic• ‌Achieving stable quality andCustomers andProducts
earthquakeBproducts
supplying safe products• ‌Considering the promotion of• ‌Contributed to society by providing energySuppliers• ‌Business activities through• ‌Preparing for the establishment
CSR procurementsaving technologies, including calcium
fair and open tradeof a CSR procurement
carbide manufacturing methods
structure• ‌Ensuring responsiveness to• ‌Secure returns tointernal control reporting systemshareholders through stable• ‌Enhancing CSR-related• ‌Securing credibility of disclosed • ‌Conducted internal control report
Shareholders andbusiness performance
information disclosure andB
information (enhancement of• ‌Improved CSR Report (ensured reliability• ‌Establishment of
ensuring reliability
Investors
CSR Report contents)
by introducing third-party opinions)relationships of trust through• ‌Executing the business plan
• ‌Implementing the CS13
information Exchanges
business plan

In 1995, we became a member of the Japan

Launched the Fourth Medium-Term
Environmental Plan

Stakeholders

Goals

History of CSR Activities

with such protective initiatives as regulatory compliance.

CSR Promotion Challenges, Goals and Performance

C: No results were observed
D: The level of activity deteriorated*Pollutant release and transfer register

DENKA CSR REPORT 201215

Initiatives with Employees
Occupational Safety and Health

Adhering to the Basics of Safety to Raise Each One’s AwarenessFiscal 2011 Occupational Safety and Health Plan

Safety Countermeasure Committee
In the latter half of fiscal 2011, major accidents occurred at several

1) adherence to the “fundamental actions required to maintain safe-

plants. In response, in February 2012 DENKA urgently establishedty;” 2) ensuring that tasks performed while machinery is operating

the Safety Countermeasures Committee, which is chaired by theare safe; and 3) raising each operator’s safety awareness. To elimi-

senior managing executive officer (the person in overall charge ofnate all occupational accidents, we have pursued these initiatives

technology), with deputy general managers in charge of securingwhile we facilitate worksite communications. However, the number

safety at each business site and the general manager of theof people involved in occupational accidents requiring time off

Personnel Dept. participating. To reform employee’s safety aware-

increased from five in fiscal 2010 to nine in the year under review.

ness and create a safety-oriented corporate culture, theIn the area of occupational health, in contrast to the relatively

Committee held fundamental debates to determine what washigh frequency of heat-related illnesses seen in fiscal 2010, fiscal

being missed in the effort to secure occupational safety. Safety

2011 saw only one such occurrence thanks to the implementation ofissues were discussed, with participants taking an approach thatcountermeasures. In addition, recognizing mental health problems

differed from the usual taken in an ordinary environment and safety

are increasing among employees we continued to work to prevent

meeting. Reflecting these debates, in May 2012 we began taking

and counter their development by, for example, holding seminars.

steps to thoroughly identify problems related to occupational safe-

Occupational Safety Record
The number of people involved in occupational accidents requiring

introduced initiatives to facilitate communication among staff withother staff in light of their heightened concern over radiation after

the aim of nurturing human resources. In order to be able to set

the Great East Japan Earthquake.

aside a specific day once a month on which we could suspend all

At the lecture, such topics as the basics of what radiation is,

production at the plant to conduct safety activities involving allits impact on human health and how it is measured were dis-

staff, we first worked to increase productivity by 5%. Then, on thatcussed and a broader range of staff gained deeper understanding.

day, we provide safety and quality education and training andengage in cleanup activities. Also, once every six months we hold

Healthcare and Mental Health Initiatives

departmental joint meetings for exchanging opinions, wherein our
staff is divided into small groups of eleven in order to foster a

In January 2012, we introduced the Employee Assistance Program

sense of participation. These meetings have resulted in improve-(EAP), providing access to external specialists, for employees

ments in the plant’s productivity. Looking ahead, we will strive toworking at business sites under direct control of Headquarters

enhance our capabilities, including with regard to safety tech-(including Headquarters, branches and the DENKA Innovationniques, by encouraging a broader exchange not only among theCenter). The program encompasses 24-hour free-of-charge tele-

departments, but with other business sites as well as other com-phone healthcare consultation and mental health counseling.

panies situated in Shibukawa and neighboring areas.

24-hour free-telephone healthcare
consultation service

Mental health counseling service

Healthcare, medical issues, familycare, childcare, mental health andinformation on medical care facilities

Counseling on the phoneCounseling on the web
Face-to-face counseling● The Ofuna Plant: Treasure Box of Safety Tips
At the Ofuna Plant, we are promoting safety activities under the slogan “cultivating safety-conscious employees who do not get hurt orty and to counter such problems. The steps entail the verification

In fiscal 2012, plans call for conducting mental health training ses-cause others to be harmed,” with the 100% participation ofof the status of each worksite, including the level of safety aware-sions at business sites under the direct control of Headquarters. At

employees. Specifically, we have introduced a “safety-conscious

ness among employees, as well as a comprehensive review of thethese sessions, we plan to provide training on stress management

employee” qualification test that involves a practical exam as wellCompany organization, including of the personnel system.

tailored for employees at every level, for example, training for man-as a paper test and on-site training that incorporates “sensory

time off in fiscal 2011 was as follows. The figures in parentheses

agers and self-care training for regular staff members, with external

experience” to raise safety awareness. To date, 96% of the plant’s

are the accident frequency rates.

specialists making presentations on this subject.

on-site workers have passed the safety conscious employee test.

Heat-Related Illness Prevention Seminar

DENKA: 3 (0.56) Subcontractors: 6 (0.92)[

Number of deaths and injuries
Accident
frequency ＝Total number of working hours
rate

×（1 million）

]

DENKA
Subcontractors

safety training session, which is fast becoming a place to exchange

comply with summertime energy saving requirements, concerns

tips of safety. We will promote activities that deeply adopt funda-

over heat related symptoms among employees seemed to bemental safety under the mottoes of perseverance and evolution.

as “what are heat-related illnesses” and “symptoms, basic treat-

Accident Frequency Rates
2.5

ness sites as well as local children’s associations to take part in theheld at the DENKA Innovation Center. Due to the expected need toheightened. With 50 employees attending the seminar, such topics

The rate if 1.7 people per 1,000 DENKA employees suffered accidents would be about 0.6.

(Frequency rate)

In addition, the Ofuna Plant is welcoming workers from other busi-

On July 26, 2011, a seminar on heat-related illness prevention was● The Isesaki Plant: Elimination of Unsafe Behaviors

ment and prevention” were presented using video clips and other
Manufacturer average
Chemical industry average

At the Production Dept. I of the Isesaki Plant, we vigorously identi-

presentation materials that are easily understandable. In this man-fied operating procedures that were not being strictly observed atner, we provided employees with accurate data on heat-related ill-

2.0

the worksite and figured out countermeasures against such non-nesses as well as proper preventive methods.

observance, with the aim of encouraging operators to proactively

1.5

implement safety activities. In addition, we promoted five-S activi-

Lecture on mental health (Headquarters: May 14, 2012)

1.0

ties. In particular, the plant’s female office workers conducted onsite patrols and implemented such improvements as clarifying

0.5

Occupational Safety Topics

0

where tools and materials should be stored and enlarging work

In fiscal 2011, DENKA’s occupational safety record was virtually● The Shibukawa Plant: Nurturing human resources
through communication and education

unchanged from fiscal 2010. However, our subcontractors saw theAt the Electronic Materials Dept. of the Shibukawa Plant, we have

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 (Fiscal
year)

spaces. Looking ahead, we will strive to eliminate unsafe behaviors
through active communication between the production site andoffices.

number of workers involved in occupational accidents rise fromzero to six. Of the total, more than 60% of the accidents were

● Training Sessions on Occupational Safety

caused by a worker becoming clamped or caught in machinery;sustaining a cut or scrape; or coming in contact with a hazardous
substance. This is a continuing trend in incident type dating backto fiscal 2006. In addition, among those who suffered occupational

An external lecturer making a presentation at the Heat-Related Illness
Prevention Seminar (DENKA Innovation Center: July 26, 2011)accidents, the ratio of workers with less than ten years’ on-siteexperience is increasing. In response, we are focusing on developing and introducing accident prevention measures throughout all
worksites, including at subcontractors’ sites, while strengthening
education for those with less experience.

Education on Radiation
On July 21, 2011, at the DENKA Innovation Center, a lecture on
radiation was held for concerned personnel as well as other staff.
The Center houses radiation facilities, and, accordingly, its personnel who regularly handle radioactive materials or equipment receive

16

DENKA CSR REPORT 2012

Safe forklift operation (Shibukawa Plant; December
6, 2011)First aid training (Shibukawa Plant; August 4, 2011)

Safe driving training: Tested participant’s driving
aptitude using a simulator (Headquarters;
September 6, 2011)
DENKA CSR REPORT 201217

Initiatives with Employees

To maintain worksite safety, we renewed our focus on the following:

mandatory education. However, we extended this education toInitiatives with Employees
Security and Disaster Prevention

Creating Worksites That Safely Produce High-Quality Products
Security and Disaster Prevention in Fiscal 2011

Safety Networking Meetings
Aiming to enhance level of safety activities, safety networking meet-

manufacture high-quality products while ensuring safety. It is impor-ings are held to inform employees about safety activities undertaken

tant that everyone understands that ensuring safety in day-to-day

awareness, we began issuing the safety activity newsletters fromat other business sites and encourage them to incorporate best

operations eventually contributes to long-term gains. Participants

April 2011. Focusing on these topics, the opinions of staff working

practices gleaned from these activities.

made a commitment to prevent recurring accidents at their own

at each business site are posted along with articles as on such top-

One such meeting was held at the Isesaki Plant on February 21

hazardous materials that would significantly affect the communities

ics as a worksite with long-term zero-disaster record, safety tips

and 22, 2012. Following discussions on how to avoid recurringin which we operate. There were nine safety-related problems in theand business sites’ occupational

accidents, we once again confirmed that the Company is called toarea of equipment control, fewer than the 16 recorded in fiscal 2010.

safety records.

Of these nine, the number of small fires that were put out using fire

By helping to nurture a

extinguishers increased from four in the previous fiscal year toshared awareness of safety

seven. Two fires were due to the aging of equipment and the others

issues among employees, thewere caused by such factors as lack of experience, operational

newsletter is expected to encour-errors or a combination of various factors. To minimize such acci-age employees to adopt anddents, we will work to appropriately maintain, manage and renew

apply other business sites’ safety

our facilities while implementing emergency response training.

initiatives at their own worksite. In

worksites by adopting tips for preventing accidents similar to thosepresented in discussions.

● Best Practices Presented at the Meeting

Shuichi Murayama, Film Section,

Ikuo Inomata, Special Cement
Additives Dept., Omi Plant

Production Dept. 1, Ofuna Plant

Implemented countermeasures based on an analysis of prior accidents; continuously provided safety
education including accident simulations, andoffered tips for safety. As a result, safety activity
was firmly adopted at the worksite.

Ensuring the continued zero-accident status byimplementing Shitsuke (discipline) training, which
is based on accident analysis that thoroughly
enforces such rules as attach guard covers to
blades, wear protective equipment, prepare operation procedures and adhere to operation rules.

Hideki Seki, Environment and Safety
Dept., Omuta Plant (substitute presenter for
2nd Production Dept. of the Plant)

Akira Miyama, Advanced Materials

fiscal 2011, the 15th edition of

Safety Review Meetings

the newsletter was issued.

All six of the Group’s main plants as well as the DENKA Innovation

DENKA Safety Activity Newsletter

Analyzed recurring accidents that happened overa certain period of time and implemented countermeasures, having obtained prior notification forsupervisor. Such countermeasures are also
spread horizontally throughout production lines.

Center hold annual safety review meetings with the aim of hearing
directly from on-site employees and thereby uncovering the background and root causes of accidents. At these meetings, issues
that each site is confronting are discussed while employees
exchange opinions with each other as well as with representativesof labor unions and subcontractors.
In fiscal 2011, safety review meetings were held in October andNovember. Following lively discussions, the Company and the labor
unions agreed to work together to conduct safety activities, underscoring the importance that the union also attaches to safety.
Also to ensure safety, we constantly emphasize the importanceof communication and proactively promote a campaign in which
employees of all ranks, from managers and supervisors to operators,
verbally alert each other to ensure safety awareness during suchactivities as workplace patrols. Moreover, we make sure that issues
discussed at meetings and matters that have been decided on are
followed up on.

Research Dept., Central Research Institute
Undertaking safety activities in a unique workplace that involves a variety of tasks as well as
stand-alone work and handle new materials.
Safety countermeasures are spread horizontally
throughout worksite.

● Distribution of Safety Booklet
We compiled a safety booklet that aims to address areas of weakness that were identified through an analysis of our experience ofTakamasa Mazaki, Electronic
Packaging Materials Section, Production
Dept. III, Isesaki Plant

Tetsuo Hirokawa, OPS Production

accidents and disasters over the past six years. The booklet

Section, 3rd Production Dept., Chiba Plant

includes:Confirmed that 90% of film roll production
machinery can be cleaned safely only when operations are suspended. Thoroughly disseminatedamong operators a cleaning procedure that suspends the operation of such machinery to securesafety.

1. ‌A note to those who work with us—essentials for safety andhealth2. ‌Case studies from prior incidents: accidents wherein a machine
operator was clamped, caught or cut
3. ‌Case studies from prior inci-

Prepared easily understood education materials.
Pursuing safety through such activities as HiyariHatto for accident control and risk assessment.
As a result, zero-accident status has been maintained.

Kazuya Sugimoto, Polymer
Processing Research Dept., Isesaki Plant

Tomonori Suda, Thermal Interface

dents: accidents wherein an

Material Production, Performance Material
Dept., Shibukawa Plant

operator came into contact
with a hazardous substance,

Stabilized safety at worksite by securing andmaintaining the flow of personnel through five-S
activities* and teaching the staff about previous
accidents.

We implemented initiatives to facilitate active
communication among staff using safety activity
newsletters and safety booklet.

got burned and suffered someother accident
The booklet was made a* ‌Five-S activities: An initiative to ensure the five-S features at the workplace. The
five-S’s refer to Seiri (tidy), Seiton (organized), Seiketsu (clean), Seiso (cleaning)
and Shitsuke (disciplined)

portable size with the aim ofenabling operators to utilize it
when performing safety activities

Fire Drills

at any time, any place and in any
situation.

A safety booklet for young operators

We conduct comprehensive emergency drills at
each production facility. At the DENKA Innovation
Center, fire drills and rescue training were conducted with the cooperation of the local fire
department.
At the Chiba Plant, a fire drill that incorporates

Safety review meeting at the Chiba Plant (October 25, 2011)

the lessons and reflections from the Great East
Japan Earthquake was conducted.

‌Reformin Awareness on Security and Disaster
Prevention

Employees practiced making emergency
calls, treating injured persons, evacuation guid-● Safety Activity Newslettersance and processing a container of radioactive

Aiming not only to respond to natural disasters, but also to secure

substances. With the drill as a springboard, we

the safety of neighboring residents and raise employee safety

renewed our determination to prevent disasters.

Rescuing people from a building
rooftop using ropes(At DENKA Innovation Center:
November 4, 2011)

Practicing firefighting with a fire truck(At the Chiba Plant: September 30, 2011)

Case studies from prior incidents

18

DENKA CSR REPORT 2012

DENKA CSR REPORT 2012

19

Initiatives with Employees

During fiscal 2011, we experienced no fires, explosions or leaks ofInitiatives with Employees
Development of Comfortable Workplaces/Respect for Diversity

We Are Striving to Create Comfortable and Rewarding Workplaces
Personnel Systems that Can Respond to Change
In our efforts to create comfortable and rewarding workplaces we also
aim to encourage employees to dare to take on new challenges. Thisenhances the Group’s profitability. At the same time, it puts us on thepath to achieving the goals set forth in the DENKA100 management
plan. Also looking to these goals, in April 2012 we revised our personnel system. While preserving the strong points of the former personnel
system, the revision is intended to improve our responsiveness in theface of today’s rapidly changing business environment.

Kenji Nakano
Executive Officer, General Manager of Personnel Dept.
In charge of Secretary Dept., Administrative Dept.,
Legal Dept., and DENKA100 Promoting Dept.

Development of Comfortable Workplaces
We have prepared an action plan that covers the period fromfiscal 2011 to 2013 under the Law for Measures to Support theDevelopment of the Next Generation.

Targets Set Out in the Action Plan (fiscal 2011 to 2013)● Raise the average utilized annual paid leave (per employee) to
12 days● Reduce overtime working hours by enhancing operational
efficiency● Encourage a positive attitude among young people toward
long-term employment through the provision of an internshipprogram and plant tours● Provide further help for high school students wanting to attend
colleges or universities through DENKA Scholarship System

DENKA promotes the development of comfortable workplaces in

We have formulated policies for sexual harassment prevention andfull consideration of the need to balance both work and family life.

are thoroughly disseminating such policies through in-house news-

Since fiscal 2010, employees can take paid leave on a half–day

letters as well as by displaying them on electronic signboards. As abasis. At Headquarters and branches, we encourage employees topart of our in-house legal compliance training program, we maintainleave work on time every Wednesday on No Overtime Work Day

ongoing education on sexual harassment prevention. We estab-while striving to enhance operational efficiency.

lished the internal consultation service operated by the Ethics
Committee as well as an external consultation service outsourced tolawyers. By doing so, we assure that consulters’ privacy and inter-

Diversity

ests are protected and are addressing a variety of inquiries, consul-

The revision included amendments to the wage system and the for-We are accelerating recruiting activities to secure human resources

mulation of an overseas training program as well as an engineering

tations and anxieties. In addition, the Group’s rules of employment

with broader backgrounds. In addition to proactively hiring female

education system aimed at providing advanced skills and techniquesand labor agreement explicitly set forth sanctions imposed on those

employees we widely expanded our scope of recruitment toand thus enhancing on-site capabilities. In addition, we reinstated ourwho violate the rules prohibiting sexual harassment.

include foreigners in response to globalization. Moreover, we con-overseas study support plan. In order to fully utilize a wide range oftinue to employ people with disabilities and reemploy retirees.

employees to voluntarily apply to change their job types while hiring● Employing People with Disabilities● Maintaining Good Relationships

In strengthening the functions of our Human Resource

We are creating safe workplaces so that people with disabilities canManagement maintains positive relationships with employee orga-

Development Center we also enriched a variety of other training sys-

realize their potential. In fiscal 2011, the percentage of employees

nizations, regularly meeting with officials of The Denki Kagaku

tems. The Center also came to take on the function of preventing andwith disabilities stood at 2.21%, exceeding the statutory employ-

Labor Union and The Head Office Labor Union in an atmosphere ofaddressing mental health problems.

ment rate.

mutual good faith. We hold regular meetings with these bodies

people with broader backgrounds.

three times in a year to communicate with and disclosure informa-

The Disaster Area Volunteer Support Program and Disaster Area
Support Volunteer Leave Plan, which were established to support theareas devastated by the Great East Japan Earthquake, also aim to help
employees to gain wider experience that makes them grow in character.
By enhancing our human resources through a variety of initiatives,
we will further contribute to society and thus remain a company thatdeserves trust.

DENKA CSR REPORT 2012as needed.

In April 2004, DENKA launched a program to rehire retirees in orderto harness their technological knowledge and skills and pass themon to younger employees. Endeavoring to hire as many retirees
who desire to stay working at DENKA as possible, we reemployed
90% of retirees in fiscal 2011.

I am in charge of R&D and technical services
related to DENKA’s chloroprene rubber (CR). This
product, a synthetic rubber with an excellent balance of properties, is a sought-after item worldwide, and DENKA is the largest CR manufacturer. My task is to promote
CR product R&D while keeping up to date on the latest market trends
and consumer needs. Because of that, my job involves direct discussions with engineers of customers mainly in China and Europe.
I will assiduously develop upgraded high-value-added CR products
while enhancing the quality of my technical services to give more customers greater satisfaction.

On August 24, 2011, with the sponsorship of the Head Office
Labor Union, we held the “Dinner Time Cruise,” inviting a number
ational events as a summer party are held annually at each plantwith the co-sponsorship of labor unions and management todeepen exchange between the two sides.

Rate of reemployment (right)

Number of mandatory retirees (left)
Number of reemployed personnel (left)

Ikuka Hashimoto,
Organic Materials Research Dept.,
Omi Plant● Labor Management Exchangesof employees, including non-union members. Also, such recre-■ Retirees Reemployment Rate

(%)
100

99
90%

80

81%

76%
75

20

tion to them. We occasionally hold other meetings and negotiations● Reemploying Retirees(Persons)
100

We are helping to enhance the DENKA Group’s
quality assurance and technological capabilities
across the board by employing statistical analysis
techniques. In cooperation with sections incharge of R&D, manufacturing and quality assurance at Headquarters
and each business site, we are painstakingly identifying technologicalchallenges. By working with each section to address such challenges,
we help them to find solutions while preventing quality-related problems.
Moreover, we are assiduously developing and implementing training programs to nurture engineers who are capable of leading quality management activities and thus enhancing on-site capabilities.
Because what we do directly affects product safety and quality, we
frequently are under a lot of strain. On the other hand, every time weovercome a challenge we feel a great sense of achievement. As such,working in this unit is very rewarding.

Initiatives with Labor Unions

human resource, moreover, we established a system that allows

Successful Female Staff Members Speak Up
Naoko Hikuma, Group Leader,
Materials Characterization Dept., DENKA
Innovation Center

Initiatives for Sexual Harassment Prevention

78

83

80
75

63

60

60

40

40

20

20

0

0

2009

2010

2011

(Fiscal year)

150 people participated in the Dinner Time Cruise to deepen friendship(August 24, 2011)

DENKA CSR REPORT 201221

Initiatives with Employees

approach leads to increased productivity in each operation and thus

Work-Life BalanceInitiatives with Employees
Human Resource Development

Nurturing Employees Who Can Independently Think, Learn
and Take Action

Networking Meetings and Presentation Meetings—
Helping Employees Grow

Human Resource Development‌Technological
Networking Meetings for
Young Engineers

Initiatives in Fiscal 2011
We entirely reviewed our mandatory job level-based training and shifted

and the key element determining DENKA’s future growth. Upon thisto an emphasis on developing proactive and spontaneous humanbelief, we positioned human resource development as one of the six

resources. This approach will allow us to systematically nurture

pillars of DENKA100. To ensure success, it is essential for us to retain

employees who can independently think, learn and take action, which

employees those who have the ability, motivation and energy to endure

are our ideal for DENKA’s human resources to achieve the goals of thesevere market circumstances and who are capable of accurate judg-

DENKA100 management plan.

Educational Objectives of the Human Resource Development Center
Anticipated Fruits of Training
1 Personal Growth:■
Harness greater skills, knowledge, techniques and performance toboost profits
2 Organizational Growth:■
Improve team performance through collaboration within and between
business units
3 Corporate Growth:■
Enhance DENKA’s profitability, brand and reputation

knowledge, the greater the improvements we can make to our pro-is to facilitate friendly competition among young staff who entered theduction technologies. Therefore, DENKA holds networking meetings

Company at the same time.

with external engineers representing machinery and equipment manufacturers. In fiscal 2011, meeting themes included technologies pertaining to twin screw extruders and stirring techniques.

engaged in lively discussions covering technological issues and theAlso, theme-driven technological networking meetings are held toproposals that the participants had brought in. Another meeting on

exchange information on technologies that are common to engineers

October 14, 2011, brought together 18 engineers who had been inworking at different plants. One such meeting on adhesion and

DENKA for five years.

cementing technologies was held on August 22, 2011, at the

We are aiming toward further enhancing these meetings and so

Shibukawa Plant. With staff members from Headquarters as well as

distributed questionnaires to the participants. We received such com-

the Chiba Plant, Ofuna Plant and Shibukawa Plant participating, thements as “It was good to know other plant’s research themes as it

information exchange had a vibrant atmosphere.

helps me to figure out my future career” and “It was inspiring that I
could ask questions that could not be asked in the field.” To improveyoung engineers’ field capabilities and R&D prowess as well as theircharacter by facilitating their self-development, we will further expand

Specific Initiatives

these meetings.

Mandatory Job Level-Based Training

Educational Support

Under these programs, employees acquire the knowledge they needto fulfill their duties. Specifically, we have set the theme of nurturing
proactive and spontaneous employees as we train employees who
have been at the Company for three years or less. Positioning “three
years after entering the Company” as the period for acquiring basic
business skills as defined by the Ministry of Economy, Trade andIndustry, we connected all programs implemented for such employeeswith the abovementioned theme. In fiscal 2011, some 416 employees
from all ranks took these programs.

●Skill Acquisition

We support those seeking to acquire certain formal qualifications. In
addition, we are enhancing our educational support system covering
overseas training and correspondence courses.

●Business Unit Training

Each business unit identifies areas needing improvement and focuses
on establishing and executing original educational and training programs according to each operation to help improve the knowledge
and skills of every employee.

Specialist Courses●DENKA Techno Schools

In fiscal 2011, a total of 587 employees took accounting, legal affairs,
information technology skill, corporate social responsibility, quality
management, distribution and trade courses, with the purpose of
acquiring the specialized knowledge and language skills required toundertake business operations.

Each business unit has opened a techno school to provide employeeswith our technological and skill resources as well as expert and practical knowledge.

Mandatory Job Level-Based
Training Programs

General managers
Managers
Medium-ranking staff
members

Incumbents
New appointees

DENKA CSR REPORT 2012

In-house academic
meetings and others

cipal R&D approaches and has contributed to the creation of new
products based on all kinds of materials, even materials commonlyused in our daily lives for other purposes. Moreover, this method is

Isesaki Plant: Technological deliberation networking meeting with the theme
twin screw extruders, with 50 staff participating (May 19, 2011)

also utilized in production technologies, quality improvement and environment preservation.
Analysis research presentation meetings are positioned as inhouse academic meetings in which techniques for the analysis of

DENKA Techno Schools

Research presentation
meetings, technological
symposia, analysis

New appointees

information technology,

research presentation

logistics, trade, quality

meetings, quality

management, guided andsymposia, process

self health care, analysis

symposia, DENKA100

3rd year employees

techniques, engineering,presentation meetings and2nd year employees

languages (English andothers, overseas training,

Chinese)overseas study,

New employeesmaterial is researched. Today, this method is deemed one of the prin-question and answer sessions.

legal affairs, accounting,

6-month employees

in which the relationship between the structure and the nature of atations were given, mainly by young engineers, followed by lively

Incumbents

Assistant managers

Our R&D activities largely involve the analysis of structural properties,

duced. At the 18th meeting, which was held in fiscal 2011, 23 presen-Internal control, CSR,

5th year employees

Young members

Specialist Courses

The 18th Analysis Research Presentation Meeting

structural properties that support frontline R&D activities are intro-

Systems for Human Resource Development Activities

22

tion facilities, machinery and equipment and how to fully utilize suchinformation on current research. A secondary goal of these meetings

who had been working at DENKA for three years participated. They

curricula to cultivate such employees.

We recognize that the more we know and understand about produc-

logical networking meetings aimed at promoting the exchange of

The first meeting was held on May 20, 2011, and 23 engineers

ment and prompt action. Accordingly, DENKA is developing training

Personnel Requisites
1. Strive constantly to better yourself through business and social activities
2. Always respect others and remain humble and positive
3. Always be selfless
4. Drive change through teamwork
5. ‌Gain broad insights, superior problem-solving skills and the ability totransform potential into reality
6. Be cost-conscious

To nurture young engineers, in 2011 DENKA started to hold techno-correspondence courses

Shibukawa Plant: Technological deliberation networking with the theme stirring
techniques (May 30, 2011)

Business unit training
Omi Plant, Omuta Plant,

Shibukawa Plant: “Jishu-Hozen” Education

Chiba Plant, Shibukawa
Plant, Ofuna Plant, Isesaki

At the Shibukawa Plant, education for acquiring Jishu-Hozen-Shi

Plant, DENKA Innovation

qualification (engineering qualification for autonomous maintenanceCenterof plant facilities)* is offered at DENKA Techno School. In fiscal 2011,
all DENKA Techno School trainees studying for this qualification
Analysis research presentation meeting held at Isesaki Plant(November 22, 2011)attained it.
*Certified by the Japan Institute of Plant Maintenance
DENKA CSR REPORT 201223

Initiatives with Employees

We believe that employees are the Company’s most important asset‌
Networking
Meetings with External Engineers
and Theme-Driven Meetings

Initiatives with Employees
Good Company Program Initiatives

Aiming to Be a Good Company by Pursuing Steady Efforts
DENKA100 Presentation Meeting

GCP—Nurturing the Corporate Culture of a “Good Company”

At the root of Good Company Program (GCP) activities is a desire to2011 year-end. The meetings include presentations pertaining to such

Company Program (GCP) activities hone on-site capabilities by raising the awareness of eachmaintain awareness toward seeking “a better way” for performing

topics as safety, quality, human resource development, the improve-

employee and encouraging autonomy and proactiveness under the goals set out on a team as well as

day-to-day tasks and a drive to steadily move forward. Since 2005,

ment of the worksite environment and communication activities, which

a worksite basis.

we have been holding DENKA100 presentation meetings encompass-are all basic to the creation of a “Good Company.” By enabling theing Headquarters, branches, plants, research institute and all Groupexchange of perspectives and initiatives at these meetings, we aim tomembers to present and share data on GCP activities being under-

embed a proactive attitude toward creating a “Good Company” in our

To Establish a Corporate Culture of “Enhancing Capability through Endurance”

taken throughout the Group. We have been holding this series ofcorporate culture.

Over the nine years since 2004, we have been continuously implementing GCP

meetings for eight years, for a total of 15th meetings as of the fiscal

activities under the mottoes the “responsibility is on managers” and “100% participation of employees.” At present, GCP activities are pursued by 142 teams

GCP—Corporate Culture of a “Good Company”● Under the GCP, everyone associated with DENKA takes action to push the company to the next level, making it a “Good Company.”● We strive to be a company in which all employees feel motivated and rewarded as well as to be a company recognized as a reliable corporate citizen.
● GCP activities aim to decisively adopt GCP as part of DENKA’s corporate culture and must be pursued as long as its business continues.

Groupwide in Japan and overseas.

● The 15th DENKA100 Presentation Meeting

Introduction of Activities■ Presentation Themes(June 6, 2012)
Focusing on the improvement of the worksite environ-● DENKA100 Promoting Committee
The Committee members, including a number chosen from staff at Headquarters, plants, research institute and branches, exchange their opinions
at periodic meetings and, working in close cooperation, strive to promote DENKA100 initiatives.

ment and undertaking initiatives that foster a sense ofunity, 12 groups chosen from business sites in Japanand overseas presented initiatives that have resulted inpractical improvements that made conditions betterand more pleasant for staff. In addition, the meeting
was broadcast via a video teleconference system toother business sites in Japan and overseas with theaim of providing staff throughout the Group with usefulsuggestions for implementing similar activities.

No
1
2
3

Theme
Improvement of worksite environment
Improvement activities centered on dialogue with production site
Confirmation and adoption of basics
4 Safety and communication activities from the viewpoints ofoperators
5 Enhancement of safety, security and quality
6 Safety activities utilizing Hiyari Hatto accident control method
7 “3S” safety activities coordinated with small group activities
8 Improvement of worksite environment through a campaign
entitled “S-Undo Minna De Pirika”
9 Initiatives to reduce the malfunctioning of tapping machines
10 Let’s study Hong Kong
11 Let’s nurture the Uruoi (moisture) cosmetic brand, rallying
female staff members throughout DENKA
12 Support for the Fureai Trio

● The 15th DENKA100 Presentation Meeting

Presenter
Central Research InstituteShibukawa Plant
DAS (Suzhou, China)
Isesaki Plant
Omuta Plant
Chiba Plant
Ofuna Plant
Sapporo Branch
Omi Plant
DCH (Hong Kong, China)
Female project team of
Headquarters
CSR & Corporate
Communications Dept.

● Information Sharing (Japanese only)

Female staff members from Headquarters andOsaka Branch led the meeting as co-MCs

DENKA100 News

DENKA Safety Activity News

DENKA100 Website (in-house only)

Issued periodically, this newsletter presents topics of interest related to DENKA100 initiatives,
including those undertaken at the department
level by Group members. “Eye on DENKA,” acolumn written by staff members is also regularly posted.

A regularly issued in-house newsletter that presents information for maintaining and raisingsafety awareness.

The in-house website is utilized to share information that is beneficial for DENKA100 activities, such as examples of activities gatheredfrom the entire Group. Reflecting the opinions of
DENKA100 Promoting Committee members,
the website was renewed in fiscal 2012, becoming more user-friendly and attractive.

Venue of the meeting

Presentation

A presenter who had implemented an excellent GCP activity was commended by the president

24

DENKA CSR REPORT 2012

DENKA CSR REPORT 201225

Initiatives with Employees

For society, for the environment, for customers and shareholders, and for DENKA associates, Good

Initiatives in Society
Communication with Local Communities

Striving to Gain the Trust of All Society

The DENKA Group’s Social Contributions
Focusing on contributing to local communities in the areas ofeducation, academics, the arts and culture, DENKA Group
promotes social contribution in ways that utilize the characteristics
of its business to develop even stronger relationships of trust withsociety and local communities and to realize a better society.

● The Omi Plant: The 19th Hisui-no Sato Mountain Marathon
We sponsor this marathon

We participate in local communities by engaging them in dialogue andevent in tandem with 12

promoting activities that contribute to their development.

local associations. Held in

On August 29, 2011, the “Omuta Machizukuri [local development]

June 2011, this was the

Symposium” was held in Omuta City, and Shohei Tamaki, General

19th such marathon andManager of the Omuta Plant participated as a panelist. Mr. Tamaki

welcomed a record-highshared his opinions about the future of local development, “a number

830 participants fromof products are manufactured in Omuta and are earning high praise allwithin and outside ofaround the world. Going forward, it will be important to draw public

Niigata Prefecture.

attention to this fact. By doing so, Omuta will become a city that its
residents are even prouder of and a place that people want to live in.”

● The Ofuna Plant: The Fujimicho Town Association Summer Festival

The Ofuna Plant participates in the “Local Environmental Seminar”

To support the town association, the plant opens a portion of its

sponsored by the Kanagawa Prefectural Government to facilitate

premises and facilities to the public for use during summer festivals.

understanding of business operators’ environmental activities and to

The labor union and employee volunteers offer their enthusiastic coop-

deepen mutual understanding with local residents. At the seminar ineration as well.

February 2012, the plant reported on its environmental activities andhosted a plant tour. Situated in Kamakura City, one of Japan’s historical cities, the plant is striving to gain the understanding of local resi-

To contribute to the development ofdents with regard to its ongoing environmental preservation activities.
On October 13, 2011, the Chiba Plant held a plant tour and invited

local communities, we support activities

20 people who serve as the presidents of local clubs belonging to thethat enrich people’s lives, such as

Goi first branch of the Ichihara City Federation of Senior Citizen’s

cleanup and community events.

Clubs. Tour participants closely studied the products being manufactured at the tape finishing plant. A vigorous question and answer session followed the tour. Afterward, we received such comments as “It
was good chance to gain a deeper understanding of the plant” fromparticipants.

Social Contributions in Tandem with Local Communities● The Shibukawa Plant: Cleaning up irrigation channels

The DENKA

Education

Group’s Social
Contributions

Scholarships,
the Arts and Culture,
Volunteer Activities

By holding experimental science

We have continued such initiatives

classes for children, inviting themas offering scholarships andon plant tours and providing job

sponsoring the Fureai Trio

experience, we are nurturing their

Concert. Moreover, we began ainterest in chemistry throughvolunteer program to support

our business.

reconstruction after the Great
East Japan Earthquake.

26

DENKA CSR REPORT 2012The Ofuna Plant: 40 people from the local community and government
participated in a plant tour, which was held as a part of the “Local Environment
Seminar” (February 2, 2012)

Supporting Community Events● The Omuta Plant: Exhibiting Daija-Yama

Cleanup event at Nakamura District (April 28, 2011)● The Shibukawa Plant: Improvement of the Flower Road
Since 1999, we have been helping to plant flowers in tandem with the

To demonstrate our dedication to being a community-based plant, we

local association ofhave been considering exhibiting the some of the local attractions atNakamura District,

our plant. Learning that the Miike Shinmachi Yatsurugi Shrine waswhere the plant ishoping to retire its old Daija-Yama parade float, which resembles asituated. As a part

daija (a gigantic serpent) andof our social contri-

was used in Omuta City’s sum-bution efforts, we

mer festival, we took overcooperate in the

responsibility for the float andyear-round mainte-

have put it on display on ournance of the Flower Weeding and pruning hydrangeas along the medianpremises.

Road.

strip of route 17, with 23 employees from the
Shibukawa Plant participating (July 2, 2011)

DENKA CSR REPORT 201227

Initiatives in Society

Local Communities

Dialogues with Local Communities

Initiatives in Society
Educational AssistanceSocial Contributions

Facilitating Greater Interest in Chemistry in the Next Generation‌Experimental Science the Fun Way—
Using SBC Resin Film

● The Shibukawa Plant: Experimental Science ClassThe Shibukawa Plant is holding Experimental Science Classes in

Supporting the Development of Local Communities
DENKA Scholarship System‌Lending Our Support to Concerts for People
with Disabilities

spring and autumn, aiming to make children feel closer to chemistry

We established the DENKA Scholarship System in fiscal 2006 as aand have fun with it.

way to show our appreciation to the local community. This scholarship

On December 17, 2011, the Fureai Trio performed a concert at the

The Omi Plant participated in the “Youngsters’ Science Festival” heldis open to high school students who live in areas where DENKA’s

Recital Hall of Tokyo Bunka Kaikan (situated in Ueno Park in Taito

on November 5, 2011, in Itoigawa, Niigata Prefecture, sponsoring adomestic plants are located (Omi, Omuta, Chiba and Shibukawa) andWard) for people with disabilities. 26 volunteers including DENKA

booth where children got to personalize PET bottles using CLEAREN,

are seeking admission to colleges or universities through a prescribed

employees assisted with the concert. An audience of over 400 people

an SBC resin film that shrinks when exposed to hot water. Children

application and selection process.

fully enjoyed the live performance.

● The Omi Plant: Youngsters’ Science Festival in Itoigawa

Scholarship recipients are provided with accommodations desig-

participating in the experiment were able to take home PET bottles

nated by DENKA and cash to assist in the payment of rent during thedisplaying their creativity.

period of their university studies, which must be accomplished within
the normal number of years. Nine students received this scholarship in
fiscal 2011.

Message from a Recipient

Some members of the audienceenjoyed participating in a violin playing
workshop

Initiatives in Society

Personalized PET bottles made by children, decorated
with pictures they have painted

A view of the concert venue

Voices of DENKA volunteers
DENKA’s booth in roaring success

The Fureai Concert Enriched the Hearts of All Participants
Yoshinori Takashima,
DENKA100 Promoting Dept.
Mizuki Tatebe, Fiscal 2011 Scholarship Recipient
Graduate of Itoigawa High School,
pharmacy student at the University of Chiba

Making super bouncy rubber balls using readily available
household materials

Seeing some of the members of the audience enjoying the chance to play the violinas their family members happily looked on,
and joining in body-percussion workshop

do my best despite the many hours I must spend every day studying

in which everyone participated, I felt thatcore and other subjects because it takes lots of knowledge to be

Enthralled, children gaze at films shrinking as hot water
is applied.

a pharmacist.

Observing ants and dragonflies using electron microscopes

Providing Job Experience and InternshipPharmacology is not an easy subject. However, I am determined to● The Shibukawa Plant: Plant Tour for School Teachers
As a part of a workshop held by the Shibukawa City Teaching

the concert was spiritually nourishing for allparticipants. It was an unforgettable experience for me to holdIn the days ahead, my studies will involve experimental classes

peoples’ hands as I ushered them up and down the stairs. Also, I

and because of that I will be even busier. Nevertheless, I intend to fur-

was thanked when I was showing the way to people, and it

ther apply myself to my studies, always grateful for the assistance I

became a precious memory.

have received through the DENKA scholarship system and from myfamily. I look forward to a future in which I will be a pharmacist andhelp many people.

I Experienced “Fureai” (Interaction) with the Audience
Hidetoshi Iwasaki,
Investor Relations Dept.

We offer work experience and an internship program to students fromLaboratory, the plant hosted a tour in August 2011 for 47 teachers inlocal schools, mainly technical high schools and junior high schools.

Shibukawa City, where the plant is well known as it is mentioned in theThrough on-site training, we help students learn what it means to havesupplementary reader for social studies used in elementary schools.

Formed by three professional classical music performers with desire totunity to directly interact with people withan occupation while trying to teach them the joy of a job well done.

Among the participants’ remarks we heard, “It was good to see thehelp people know the joy of classical music through hands-on experi-disabilities through violin performance

DENKA Azumin Co., Ltd. has been offering this job experience pro-latest technology up close. I would like to incorporate this tour in theence, since 2003 the Fureai Trio has performed 330 concerts before aworkshops and during the body-percussion

gram since 2005, and two participants in the program had joined thecurriculum” and “I would like to have students participate in this tour.”cumulative total of more than 80,000 people. In support of the trio’s

section of concert and am always touched

company by fiscal 2011.

Looking ahead, we will strive to gain further understanding of DENKA

purpose, DENKA and six other companies provide assistance. In fiscal

by these interactions, which I could never experience in theand establish relationships of trust by holding more plant tours.

2011, DENKA staff, mainly from the DENKA Innovation Center, sup-course of my usual tasks.

Participating in the Fureai Trio Concerts

This was third time for me to take part in
the Concert. I have been given the oppor-

ported two concerts at Machida Dai-Yon Elementary School on

Plant Tours

November 21, 2011, and at Machida Citizen’s Hall on December 3,● The Ofuna Plant: Plant Tour for Elementary School Students

2011.

Blood Donation Activities

The Plant held a tour for 109 third graders from the nearby Yamazaki

At the Omuta Plant, in June and December 2011 blood donation cam-Elementary School in October 2011. When one of the plant staff

paigns were held, with a record-high (cumulative total of) 427 employees

showed the children products manufactured in the plant for use inparticipating. At the Shibukawa Plant as well, in April 2011, 49 employ-

packaging ice cream, the students voiced surprise. The tour went wellees volunteered. We have observed that not only do such activities con-and we are confident that it improved the students’ understanding oftribute to those in need, such participation has a beneficial effect on

DENKA, especially after they got to get a close look at production andemployees’ day-to-day health management. We will promote further

test the fit of wigs in the Synthetic Fiber Laboratory.

28

DENKA CSR REPORT 2012

Teachers listen intently to an employee’s explanation

A Fureai Trio performance led by violinist Kyoko Yoshida at Machida Dai-Yon
Elementary School

cooperation with the blood donation campaigns.
DENKA CSR REPORT 201229

Environmental Initiatives
Environmental Activities/Responsible Care Activities

DENKA Engages in Environmental Preservation Mainly
through Responsible Care (RC) Activities

Fiscal 2011 Responsible Care Objectives and Achievements
Fiscal 2011

Medium-Term Environmental Plan

Prevent global
warming andconserve energy

Until fiscal 2009, DENKA had been continuously reducing its environmental impact. Aiming to further improve our environmental
initiatives, we are implementing the Fourth Medium-Term
Environmental Plan over the fiscal 2010 through fiscal 2012 period.
Moreover, we will enrich our RC activities, broadening the scope of

Page

SOx: 154t
NOx: 4,660t
Soot and dust: 131t
COD (BOD): 944t

SOx: 217t
NOx: 4,240t
Soot and dust: 128t
COD (BOD): 1,295t
[Air]
SOx:
Reason: Missed target despite such initiatives as utilization of natural gas forthe cement kiln and boilers.
NOx: Reached target due to the decreased production of silica.
Soot and dust: Reached target despite a small increase due to the increased
use of recycled resources at cement plants.
[Water]
COD (BOD): Missed target despite a decrease thanks to continued monitoring
and adjustment at wastewater treatment facilities. Plans call for the improvement of the treatment capacity of such facilities.

B

Total waste generated
99,500t

Total waste generated: 138,000t
Reason: The amount of slurry generated in the cleansing process increased,reflecting the increased mining of limestone that contains clay.

C

In-house and external reuse:
90,000tIn-house and external reuse:
124,800t
Promoted in-house reuse at cement plants as well as the external reuse.
Reuse will be further promoted.

A

Recycle resources
In-house and external landfill:
337t

Recycle resources
In-house and external landfill:
228t
Reached target set forth in the Medium-Term Environmental Plan due to thesignificant reduction achieved by the promotion of recycling at the Omi andOmuta plants.
As a result, the Group attained zero-emissions.

A

Further enhancement of recycledresource usage intensity from417kg/t in fiscal 2008

Recycled resource usage intensity: 570kg/t
Reached target by promoting recycling, putting the focus on industrial waste.

A

including by utilizing waste as a valuable resource; maintenance ofHitoshi Watanabe
Representative Director and Senior
Managing Executive Officer

Fiscal 2011

Fiscal 2012

ActualTargetActualTargetEnergy consumption intensity(fiscal 1990 base)

0.91

0.87

0.91

0.86

Emissions of PRTR* substances(tons)

122

90

139

88

Final waste disposal (tons)

304

337

228

374

Conservation

zero emissions activities; securing of logistics safety; and promotion of communication with local communities.

Reduce waste(zero emissions)*Pollutant release and transfer register

DENKA Group aims to reduce environmental burdens at every

Chaired by the person in overall charge of technology, the RC

stage of operations, from R&D to the use and eventual disposal ofCommittee, a decision-making body that includes management

its products, while striving to ensure safety and stable production.

officers, discusses and decides on RC-related matters. The poli-

To this end, we are implementing the following RC activities:

cies on occupational safety and health activities as well as security

1. ‌To prevent accidents involving fire or explosions at our produc-and disaster prevention activities are laid out in the annual safetytion sites, we properly maintain and improve production facilities

and health management plan. Environmental and other activities

while adhering to safe operation methods. We manage andare implemented in line with the Medium-Term Environmental Plan

ensure the security of such facilities by always strictly complying

and annual RC activity policies. The status of implementation iswith safety standards during operations.

monitored and managed by an in-house monitoring system, which

2. ‌To support environmental preservation, we pursue investment

involves such steps as safety inspections and RC audits.

Use resources
efficiently

Appropriate
compliance withchemical
substance
management
policies

Participation in the Japan Responsible Care Council

technologies while implementing education and training toSince 1995, DENKA has been participating in the Japanenhance employee capabilities.

Responsible Care Council (JRCC). We actively promote voluntary

4. ‌To contribute to local communities and society in general, we

RC activities based on JRCC programs. In addition, we received

hold and strive to enrich events aimed at engaging them in dia-certification from the International Council of Chemical Associations

logue, including briefings for local residents and chemistry(ICCA) in 2010 after becoming a signatory to the declaration ofclasses for elementary school students.

support for the Responsible Care®

5. ‌To optimize logistics, we continually strive to accelerate energy-

Global Charter.

Occupational
Safety and Healthrisk in operations at production sites by improving facilities andand processes, we proactively utilize our technologies.

Certificate awarded by the ICCA

30

DENKA CSR REPORT 2012

Union’s Registration, Evaluation,
Authorisation and Restriction of •Took steps to respond to the new regulations on chemical substances insuch countries as Australia and Turkey.
Chemical Substances (REACH)•Revised materials safety data sheets (MSDS) with consideration for GHS to•Accommodate Globallyensure smooth exports to EU and China.
Harmonized System ofClassification and Labeling ofChemicals (GHS) in each country

Constrain and reduce waste
Countermeasures:
Use of better limestone mining techniques

Promotion of reuse

Cut final landfill waste
374t

32

By further enhancing the use of waste and byproducts
per ton of cement (recycled resources usage intensity), we will contribute to the development of a recycling-oriented society.

A

Website Continued to supply MSDS and other product safety
information and identify and consider complying with19, 20 overseas chemical regulations, including REACH

Website Emissions of PRTR substances: 88t
12-14 Countermeasures: Improve the facilities on schedule

Companywide emissions of PRTR substances: 139t
Reason: The year-on-year 14% increase was due mainly to the landfill disposal, which was a one-time only event. Because of this disposal, the figure
is projected to cease to increase in fiscal 2012.

C

Ensure safe
transportation•Target a zero accident rate forin-house and off-site logistics•Step up our Safe Transportation
Code of Conduct as a Shipped
Goods Owner•We continued to revise our yellow card system and yellow cards for containers (labels).
•We evaluated and analyzed transportation safety levels and instituted
improvements.

A

Eliminate occupational accidents

Conduct risk assessments andidentify and eliminate unsafe
facilities and work practices

Manage employee
healthMaintain and improve health

DisasterPrevention

6. ‌To contribute to the natural environment through our products

Website12-14

NOx: 4,670t
Soot and dust: 133t
COD(BOD): 564t

Website12-14

Companywide emissions of PRTR
substances: 90t

Eliminate major
accidents

Community
Relationssaving initiatives and to ensure safety at all stages, from themoment a product leaves a plant to its delivery.

CO2 emissions intensity (from energy sources): 1.00t/t
Energy consumption intensity (fiscal 1990 base): 86%
and below
Countermeasures: Achieve target by accelerating
implementation of the energy-saving theme
SOx: 153t
Countermeasures: Promote further changeover fromheavy oil to natural gas

Manage chemical
substances andsuppress emissions

that promotes energy- and resource-saving at our facilities.
3. ‌To ensure worksite safety, we continually endeavor to mitigate

33

in Fiscal 2011 and Beyond(Initiatives and Final-Year Targets)•Comply with the European

Product Safety

By improving and optimizing its production technologies, the‌The DENKA Group Environmental Protection
Promotion Structure

B

Major Challenges and Goals

Maintain com­munity trust

All business sites continued to conduct risk assessments and identified andaddressed unsafe work practices.
Number of incidents of lost work time due to accidents in Group:
3 (3); accident frequency of 0.56 (0.57)
Number of incidents of lost work time due to accidents among subcontractors:
6 (0); accident frequency of 0.92 (0.00)
Note: Numbers in parentheses are for fiscal 2010.
Reason: Mainly, it was operators with less experience that had accidents. The
proportion of the following types of accident increased: accidents wherein an
employee was clamped or caught in machinery; accidents wherein an
employee was cut, scraped, or had contact with a hazardous substance.
Continuously implemented countermeasures against mental health problems
and metabolic syndrome (education and development of follow-up structures).

•There were no major accidents.
•The number of problems impeding operations (such as an electric outage)
Eliminate major accidents, notably
decreased from 16 to 9.
explosions, fires and large leaks•Based on analysis of previous accidents, we implemented measures to preof chemical substances
vent recurrences and stepped up preliminary safety assessments andchange management.
•We addressed complaints about noise and odors by setting up response
desks at each business site, deploying countermeasures and responding ingood faith to complaints to obtain understanding.
Continue to engage communities
and build trust•We hosted business site tours and held children’s chemistry classes,
engaged in community dialogue and participated voluntarily in social activities to maintain community trust.

and thus reduce emission volume33
Website Fulfill responsibilities as an owner of shipped goods
11

B

16-19

Eliminate occupational accidents through educationand safety management systems
Attain zero accidents requiring employees to take timeoffCountermeasures: Strengthen training for operatorswith less experienceA16, 17

Undertake activities to maintain and improve healthA

18, 19Eliminate major accidents, notably explosions, fires
and large leaks of chemical substances, and improve
production stability (in keeping with the characteristics
of specific plants, target more stable operating conditions, enhance operational techniques and facilities)

A

26-29

Target ongoing corporate activities that secure andmaintain community trust

References are available in the Web-based CSR Report references (http://www.denka.co.jp/eng/csr/report/index.html).
DENKA CSR REPORT 201231

Environmental Initiatives

Promoting RC Activities

Evaluation

CO2 emissions intensity: 1.11t/t
Energy consumption intensity (fiscal 1990 base): 91%
Reason: Despite the reduction achieved thanks to the improvement of
cement facilities and PVA facilities, the emissions intensity increased, reflecting the production adjustment at the Chiba Plant.

Prevent air andwater pollution

sions to prevent global warming; reduction of waste generation,

Achievements

CO2 emissions intensity(from energy sources):
1.00t/tEnergy consumption intensity(fiscal 1990 base): 87%

activities to include such initiatives as the reduction of CO2 emis-

Fiscal 2010

Relevant

Key Area
Goals

Items

（Assessment code: A = Reached target B = Partially missed target C = Missed target）

Environmental Initiatives
Recycling Business at Cement Plants

CO2 Reduction, Energy-Saving and Initiatives in Logistics

Aiming to Contribute to a Recycling-Oriented Society

Measures to Prevent Global Warming

Overview of Recycling System●Response to Local Government Ordinances

Wastes and byproducts

Used tires

Sewage sludge

Waste plastic

Waste oil

Coal ash

Limestone

Foundry sandClay

Fly ashGypsumbyproducts

Blast furnace slag

SludgeRaw materials

Construction soil
Ironmaterials

Finishing millRotary kiln
Biomass
boiler for
in-house
power
generation

Scrap wood

Slag

CementDryer andraw materials
grinder

Incinerator ash

SilicaRecycling Systemwent into effect in April 2010. The Omi Plant has been increasing theamount of carbide produced from sewage sludge and household
waste that it accepts from neighboring local government bodies in
addition to soil displaced from construction sites. Moreover, theplant installed chlorine removal and other related facilities in fiscal
2011 to allow it to accept greater amount of waste materials containing chlorine.
Also in 2011, The Omi Plant was commended as an excellent
recycling operator by the Niigata Prefectural Government for its history of initiatives and accomplishments in cement recycling. Looking
ahead, we will proactively augment the capacity of our facilities andincrease the amount of waste material we process to further contribute to the realization of a recycling oriented society.

1,000

Emissions
intensity(kg/ton)External sources

570

600

800

480

CO2 emissions intensity index (right)
（%）

100

100
1.47
85

1.2

76

1.20

72

* CO2 emissions intensity: In order to present figures in a unified manner, the CO2
emissions intensity target for each DENKA product is translated into terms of the Omi
Plant’s CO2 emissions volume divided by its calcium carbide production volumes.
** Trial Emissions Trading Scheme: Companies that participated in both the targetsetting group and the voluntary action plan of the Nippon Keidanren set in-housetargets and reduction targets based on their organization’s fiscal 2010 targets, andreceived verification from the Japanese government after the activity.

1.05

50

0.4

25

0.0

0

90

08

09

10

11 (Fiscal
year)■Production Volume and Energy Consumption
Intensity Relative to the Fiscal 1990 Level
Production
Production;
Energy intensity
1.4

1.16

1.20

1.0

Energy intensity

1.36

1.31

1.2

Since introducing life cycle assessment (LCA) in 2009, we have proactively enriched the lineup of our products that are subject to the LCA calculation. Involved in this business are six business sites and one
subsidiary.

1.20

0.94

0.90

0.90

0.90

05

06

07

0.94

360

592
400

240

200

120

0

0

01

32

02

03

04

05

06

DENKA CSR REPORT 2012

07

08

09

10

11 (Fiscal year)

1.29

1.25

Target

1.07

1.00

0.90

0.91

09

10

0.91
0.86

0.8

0.6

0.4

0.2

0.0

Staff members of the Cement Dept. of the Omi Plant with the certificate ofcommendation presented by the Niigata Prefectural Government

In fiscal 2011, at 34,700 tons (total transportation volume: 521 milliont-km) the CO2 emissions volume from logistics was down 12,900 tons
compared with the fiscal 2007 level. Meanwhile, energy consumption
intensity increased by 4.8% compared with the previous year due to adecrease in the number of cargo vessels with high transportation efficiency. Looking ahead, we will continue to work to rationalize logistics
and further promote energy-saving, to attain the reduction of total CO2
emissions as well as the targets on energy consumption intensity.

90

04■CO2 Emissions

4%
5%

9%
Amount 34%
accepted
24%

888

thousandtons
24%■ Sludge■ Slag■ Fly ash
■ Surplus soil
■ Waste oil, and plastic

1,750

Energy derived

Non-energy derived*

1,710

Target

1,500
1,250

Pursuing Rationalization at the Logistics Ability Enhancement Project

1,000

and wood chips■ Other

In fiscal 2012, we launched the Logistics Ability Enhancement Project
while establishing the Logistics Dept., aiming to comprehensively
improve DENKA’s logistics. To reduce distribution costs as well as CO2
emission volume, we will review the distribution flows of main products,
introduce a comprehensive warehouse control system and improve thetransportation and distribution control system. Simultaneously, we will
undertake logistics training, develop safety procedures and establish an
emergency response structure.

year)

2,000

Message
Yoshihiro Ishikawa, General Manager, Logistics Dept.

12 (Fiscal

11

Emissions(thousands of tons)

1,410■Fiscal 2011 Recycled Material by Category

08(Base year: Fiscal 1990)

1,440
1,240

1,340

1,320

1,380

990

970

1,340

Target

1,130

600

75

1.11

0.8

1.32

LCA Initiatives

71

1.07

Initiatives to Rationalize Logistics

888
295

DENKA’s CO2 emissions intensity target for fiscal 2010 was 1.14 t-CO2/tCaC2. Thanks to the promotion of fuel conversion and various kinds ofenergy-saving activities, the target was achieved in fiscal 2010—in fact,
we recorded a CO2 emissions intensity of 1.05 t-CO2/t-CaC2, beating thetarget by 7.8%. In fiscal 2011, however, our CO2 emissions intensity was
1.11 t-CO2/t-CaC2, slightly up but still well ahead of the abovementioned
target. These results reflected an increase in CO2 emissions intensityfrom stepped up electricity generation due to the damage caused by theGreat East Japan Earthquake.

As part of its activities to reduce environmental burden and to save energy, DENKA actively utilizes subsidy systems established by the Japanese
Ministry of the Environment and the Ministry of Economy, Trade andIndustry. In fiscal 2010 and 2011, we received approval for four subsidies.

■Recycled Resources Accepted
Emissions
intensity

CO2 emissions intensity (left)（t-CO 2 /t-CaC 2 ）1.6

●Response to Trial Emissions Trading Scheme**

Utilization of Subsidy Systems

Akihiko Okuda, General Manager of Omi
Plant, receiving the certificate ofcommendation (November 23, 2011)

In-house sources

In accordance with ordinances regarding the prevention of and measuresagainst global warming set forth in Gunma and Kanagawa Prefecture,
DENKA is submitting a CO2 emission reduction plan as well as an emission status report. Although CO2 emission volume rises and falls in reflection of production volume, the Group’s overall CO2 emissions intensity* issteadily decreasing.

■CO2 Emissions Intensity

1,010

750
500
250
0

07

08

09

10

11

12

(Fiscalyear)* Non-energy derived CO2 emissions are generated from raw materials
processing and waste disposal during the manufacturing process.
DENKA CSR REPORT 201233

Environmental Initiatives

The waste material recycling business at the Omi Plant’s cement
plant involves the utilization of coal ash produced by thermal power
stations as a raw material. In addition, the plant receives used tires
and waste plastic for use as fuel sources. Furthermore, the fly ash
from the incineration of such fuel is itself used as a cement raw
material. As a result, the cement plant’s recycling system ensuresthat all waste materials are completely consumed.
In fiscal 2011, DENKA used 570 kilograms of recycled materials
for every metric ton of cement produced, the largest proportion
recorded to date. DENKA promotes the use of such alternative fuels
as scrap wood and waste plastics, which effectively reduces theconsumption of fossil fuel.
On Japan’s western seaboard, DENKA was the firstcompany to obtain permission
to operate a processing business in accordance with therevised Soil Contamination
Countermeasures Act, which

Amount processed(thousands of tons)

Promoting Variety of Initiatives to Protect the Global Environment

Initiatives with Customers and Suppliers

Collaboration with External Institutions

CSR Procurement/Quality and Safety

Award Commendations

Striving to Improve Quality in Concert with Suppliers

Manufacturing That Contributes to Social Development

CSR Procurement

Award Winning Product Development

Commendations of Business Partners● ALONBRIGHT Won the Harushige Inoue and the
Tanahashi Award● The 2011 Japan Ceramics Award
Hid e hiro Ta na k a, Ino r g a nic Ma t e r ia ls
Research Dept. of the Omi Plant received theTo achieve the goals set forth in the DENKA100 corporate philoso-With the aim of nurturing mutual relationships of trust, our Omuta

phy, the DENKA Group believes it is indispensable to maintain good

Plant gives excellent business partners commendations. On therelationships with the suppliers that form our supply chains. The

occasion of the anniversary event to celebrate DENKA’s 96th year

The β SiAlON Phosphor for white LED

in 1971, he has consistently engaged in the

DENKA Group considers its suppliers to be valuable partners inof founding, April 1, 2011, Special Commendations were given by(product name: ALONBRIGHT), whichdevelopment of cement additives that

operating its business, and looks forward to attaining sustainable

the general manager of the plant to three business partner compa-

was commercialized by DENKA basedenhance properties of concrete. The Awardgrowth in tandem with them by establishing mutual relationships ofnies to express gratitude for their long-term cooperation and under-

on the research of the National

was given for his dedication to developing

trust. In our procurement activities, including the purchasing of raw

standing of DENKA’s business.

Institute for Materials Science (NIMS)

new products in tandem with customers.

materials, machinery and equipment as well as contract construc-of Japan, won the 36th Harushige

tion, therefore, we always strive to be fair and equitable while com-Inoue Award. The award was given for

Initiatives to Improve Quality and Safety

prehensively taking into account issues related to quality andsustainable supply as well as cost when selecting our suppliers. We

Aiming to maintain and improve product quality in order to assure

also place emphasis on suppliers’ compliance with laws and regula-customer satisfaction, DENKA undertakes ongoing initiatives totions as a precondition to building mutual relationships of trust.

enhance its quality management techniques.

Tetsuro Maeda, Chief
Operating officer, receiving theaward certification (right)

saving as well as the improvement it● Supplier Award for Superior Quality Given from Toyota

has made in video monitor picture

DENKA received the Supplierquality when used in the backlights of liquid crystal televisions.

Award for Superior Quality from

Moreover, DENKA together with NIMS, received the Tanahashi

the Hirose Plant of Toyota Motortures and quality symposia aimed at disseminating statistical quality

Technological Award. This award, which has long history, was given

Corporation at the fiscal 2012

control methods and promoting improvement activities.

by the Electrochemicalcommendation ceremony. This

Masato Mitani, General Manager, Quality

Moreover, QC circle activities for those who work on the pro-Society of Japan forhighest commendation for theControl Management Dept., Technology

duction site were held in the electronic materials manufacturing sec-

contributions both par-plant’s suppliers was given forDiv.

tions in Isesaki and Omuta Plant, contributing to the improvement ofties have made through

DENKA HITTPLATE, which the

product quality.

the development of the

Aiming to Earn and Nurture the Trust of Customers with Quality

Under our Companywide Quality
Policies, we are aiming to earn and nurture the trust of customers through initiatives to stabilize and enhance quality bystrengthening our worksite capabilities.
In addition, DENKA formulates itsthat must be eliminated from or minimized in use at every stage,
from R&D to raw material procurement to manufacturing. By doing
so, we are strictly complying with environment- and chemical substance-related regulations as well as customers’ voluntary stan-

Fiscal 2011 Companywide Quality Policies
1. Strengthened‌
response to product liability and related laws andregulations
Prepare‌
product labels and package inserts as well as reportingand notification documents
2. Enhancement‌of technologies to ensure built-in quality
Develop‌
technologies that meet customer needs and create products that vary minimally in quality
3. Raising‌awareness of employees engaged in manufacturing‌Voluntary management by frontline employees to maintain stable

quality

4. ‌Adopting statistical quality control (SQC) method
R&D‌
staff and manufacturing chief must adopt SQC method inpractical operations

β SiAlON Phosphor.

The Materials Characterization Dept. of the Central ResearchInstitute and the Performance Material Dept. of the Shibukawa Plant
won the 2010 Japan Institute of Electronics Packaging Technicalyears since joining DENKA, was given the2011 Safety Contributor Award from thecertifications were given to representatives

Japan Cement Association in recognition of
his significant contribution for continued
zero-disaster status over 30 years.

they have newly developed are expected to
be widely used in such products as energyFrom the left: Kenji
Monden and Katsunori
Yashima of Central
Research Institutesaving component materials and contribute● The Mining Safety and Health Association of Japan
President’s Awardto the electronics industry in the future.

Kazuhiko Yamada of the Mining Subsection, Mining Section,● The Adhesion Society of Japan Award
DENKA received the 33rd Adhesion Society of Japan Award for the
DENKA HARDLOC SGA series, a two-component low-odor type

5. Outsourced
Processing
and Production

adhesive. With the new material design, we have succeeded in
reducing odor while suppressing cure shrinkage, which is a charac-

Manufacturing
vendor audits

teristic of acrylic. This product is best suited for stylish structures
7. Products

8. Logistics

9. Customers

Management ofenvironmentally hazardous
substances in products(Negative List)

Yellow cards
Container labels

Material safety
data sheets (MSDS)
MSDSplus
AIS

Waste contractor
audits* For detailed information regarding product safety management, please see page 19 of the Web-based CSR Report references(http://www.denka.co.jp/eng/csr/report/index.html).
DENKA CSR REPORT 2012

the Cement Technological Section for many

ducting materials with insulating properties■ Materials Safety and Management Flowchart

6. Disposal

Kazushi Tahara, who has been working atof these departments. High thermal con-

The second quality symposia, in which 10
employees presented the fruits of their initiatives(February 14, 2012)

ISO 14001,
ISO 9001 andGood Manufacturing
3. Raw Materials
Practices (GMP)
Outsourced(Maintain and improvematerials production
environmental
Manufacturing vendor protection and quality)
audits● The Japan Cement Association Awardmal materials. In May 2011, the award

comes into contact with our products.

4. Production

Omi Plant: Award for Security and Disaster Prevention

ductivity and application of the percolation theory on complex ther-

information on safety to safeguard everyone who deals and/or

1. Development

four consecutive years.

Award for the development of materials that have high thermal con-Material Safety Data System (MSDS) and formats for indicating

Green Procurement
Purchasing specifications

the Plant with zero-defects for● The Japan Institute of Electronics Packaging Technical Awarddards while securing product quality and safety. We also prepare

2. Raw Materials

Company has been supplying toPhosphor Research Dept. (Central ResearchInstitute) staff members winning the Tanahashi
Award

From the left: Hiroyuki Miyata, General
Manager of Nagoya Branch; Mikio
Yamaguchi, General Manager of the
Quality Assurance Dept. (Electronic
Materials Div.); Ryoichi Ide, General
Manager of the Quality Assurance Dept.
in the Shibukawa Plant (April 17, 2012)and enables weight-saving by simplifying bond construction andResources Dept. of the Omi Mine, who has
been working on the front lines of mining
since joining DENKA in 1975, was commended for his significant contribution tosecuring safety and disaster prevention asa member of the safety staff and operations supervisor.

reducing board thickness. It● Nationwide Mine Security Award (Safety Staff Award)

also greatly contributes to envi-

Fumio Matsuki, who has been with the Mining Subsection and hasronmental conservation by

an impressive zero-accident

obviating organic solvents pre-t r a c k re c o rd s in c e jo inin gviously used in the adhering

DENKA in 1971, was given theAward for his remarkable con-process.
The commendation ceremony

tributions to disaster prevention.
DENKA CSR REPORT 201235

Initiatives with Customers and Suppliers / Collaboration with External Institutions

own “negative list” to clearly identify environmental load substances

34

Awards for Quality Assurance

In fiscal 2011, during “Quality Month (November)” we held lec-

Message

Verify raw material safety
Verify necessary quality level
Production process design

the product’s contributions to energy-

Japan Ceramics Award. Since joining DENKA

To Investors and Shareholders
Communications with Shareholders and Investors

Striving to Promote Greater Understanding of DENKA
In addition to the timely disclosure of information, DENKA undertakes a wide variety of investor relations

coverage of our business performance by analysts and institutional investors and hold briefings for

activities with the aim of maintaining effective communications with shareholders and investors.

individual investors in important locations throughout Japan. Through these activities, DENKA is working toAlong with results briefings convened in tandem with financial results announcements, we respond to

Results Briefings

showcase its products while actively promoting the greater understanding of its business operations.

Briefing for Individual Investors in Niigata

DENKA holds results briefings for analysts and institutional inves-

DENKA held a corporate briefing for individual investors on

Many individual investors listened to our presentation with greattors. A results briefing for the fiscal year ended March 31, 2012

September 21, 2011. After presenting DENKA’s overview and histo-

interest, taking down notes. Attendees asked us a wide variety of

was held on May 9, 2012, with more than 100 analysts and institu-

ry, we introduced our calcium carbide business, which has beenquestions up until the last minutes. We believe that the briefing suc-tional investors attending.

our mainstay business since our founding, as well as the Omi Plant,

ceeded to deepen investors’ understanding of DENKA.

During the briefing, we presented the Company’s fiscal 2011

our main factory in Niigata Prefecture, where the briefing was held.

financial results, performance forecasts for fiscal 2012 and ourWe also explained the basic principle underlying our corporate

growth strategies. During the Q&A session, we answered various

management, namely, that “improving business performance” andquestions from attendees about key product trends and manage-“sincerely fulfilling our responsibilities to stakeholders through thement’s forecasts.

pursuit of quality, safety, environmental conservation and compli-

In addition, on our website we posted an audio file of the presi-ance” are inextricably linked. At the meeting we presented our com-dent’s presentation at the briefing along with summary of andmitment to earnestly and sincerely pursuing operations aimed atmaterials used in the briefing (available only in Japanese).

The fiscal 2011 results briefing (May 9, 2012)

Shinsuke Yoshitaka, president of DENKA, presenting an overview of
performance results

Business briefing given by Manabu Yamamoto, general manager of Electronic
Materials Div.

ensuring that our business continues to thrive for the next 100
years.

DENKA products exhibited at the briefing: Chloroprene rubber (used in wetsuits:left) and pharmaceutical products (macromolecular sodium hyaluronate
preparation: right)

Despite the poor weather, a number of individual investors participated

DENKA products drew attention of attendees

Site Tour for Chemical Industry Newspapers
On November 11, 2011, five reporters representing newspapers

shown the limestone mine and visited the Oami Hydroelectricthat cover the chemical manufacturing sector were invited to a tour

Power Plant.

of the Omi Plant. In addition to plant facilities, reporters were

Briefings for Individual Investors in Nagoya
On November 12, 2011, another corporate briefing for individual
investors was held in Nagoya, attended by about 80 individual
investors.
After we presented our overview of DENKA, we introduced ourbusiness sites in Japan and overseas, the limestone mine at theOmi Plant, our hydroelectric power plant and the manufacturing

To Investors and Shareholders

process that produces chloroprene rubber from limestone.
Moreover, we presented our commitment to achieving the management goal of operating income of ¥60 billion in fiscal 2015, as
set forth in DENKA100 in the lead up to our centennial, by rallying
the Group’s entire strength. We also promised to never forget thelongstanding trust we have built with customers over our nearly 100
years of business, and to strive to remain a manufacturer that

Briefing for individual investors in Nagoya (November 12, 2011)

deserves such trust into the future as we aspire to continue to thrive
At the limestone mine

36

DENKA CSR REPORT 2012

At the Oami Hydroelectric Power Plant

for the next 100 years.

DENKA CSR REPORT 201237

Third-Party Opinion

A CSR Report That Positions Employees as Primary Stakeholders

38

DENKA CSR REPORT 2012business scope. It has been five years since DENKA went beyond
protective CSR to launch proactive CSR initiatives aimed at achieving greater corporate value. It looks as if it is time for DENKA toclarify its areas of emphasis and make a leap. If possible, along withthe abovementioned verification, I also recommend that theCompany prepares roadmap for 2015, which is the centennial of its
founding.
Second, I would like DENKA to establish a structure thatenables it to generate synergies between the Good Company
Program (GCP) and its CSR initiatives. The theme of GCP, which it
has pursued since 2004, is “to be a company in which all employees feel motivated and rewarded as well as to be a company recognized as a reliable corporate citizen.” This aspiration is very
essence of CSR. It should be noted that the DENKA100
Companywide initiative commenced in 2007 includes both GCP
and CSR in the six pillars representing initiatives to be pursued toachieve the goals of DENKA100. To create the synergies I spoke of,
I recommend that the Company clearly define the relationships
between DENKA100, GCP and CSR initiatives.
Third, I would like to close this third-party opinion by presenting
a recommendation for DENKA’s CSR activities with regard to labor
related issues including information disclosure. I agree that, asshown in CSR Report 2012, a certain degree of progress in
DENKA’s initiatives for labor related issues has been made, owing
to the dedication of related sections’ staff; however, it must be said
that even greater efforts are required in light of the statement in thepresident’s message “ISO 26000 places emphasis on labor-related
CSR.” Japan’s labor practices, among the economically advanced
nations, are quite singular, causing a number of social issues.
Taking into account the importance of labor-related issues in society, I expect that DENKA will accelerate its labor-related CSR initiatives and expand the scope of its information disclosure, utilizing
such tools as relevant key performance indicators (KPIs).

Tamio Yamaguchi
Representative of Junkan
Workers Club NPO*Junkan Workers Club is a citizens group that examines ways tofoster the harmonious coexistence of society and natural
ecosystems from a global perspective to benefit future
generations. In addition, this organization strives to conduct
research, provide assistance and undertake measures that will
create a recycling society in tandem with the members of the local
community, business and governments. Pursuing the ideal for CSR
activities, it also holds CSR workshops and makes a variety of
proposals.
URL: http://www.nord-ise.com/junkan/ (Japanese only)

To enhance reliability of its CSR Report, since fiscal 2007 DENKA
has been subject to third-party audits by specialists in the chemicalengineering field and, since fiscal 2011, has been engaging CSR
experts in dialogue. The results of such audits and dialogue are presented as third-party opinions in the CSR Report. In fiscal 2011, asin the previous year, we invited Mr. Tamio Yamaguchi, a leading
authority on CSR who serves as a representative of Junkan Workers
Club NPO, to join us in dialogue as well as to present a lecture on
CSR.
On July 26, 2012, Mr. Yamaguchi lectured on the theme of“Advancing CSR,” presenting such topics as the corporate trend
toward business and CSR integration; what stakeholders expect in
the ideal CSR report; and information disclosure initiatives taken byother companies.
During a dialogue session held on September 3, 2012, we had
discussion regarding the CSR Report 2012 that summarized ouractivities. Mr. Yamaguchi mentioned that among the things thatdraw his attention in a CSR are: a message from the president thatincorporates a review of activities and statement of commitment to
the future; the positioning of employees as primary stakeholders;
and the disclosure of negative information. The lecture was followed
by a lively question and answer session that covered to such matters as CSR activities undertaken by overseas companies, theimportance of activity reports, whistle-blowing systems and environmental accounting.
Participants in the abovementioned lecture and dialogue sessions included officers, standing corporate auditors and the headsof the Administrative Dept., Legal Dept., Personnel Dept., Internal
Auditing Dept., Information System Dept., Environment and Safety
Dept., Technology Div., Quality Control Management Dept.,
Environmental Burdens Reduction Promoting Dept., Electric Power
Dept., Technology Planning Dept., DENKA100 Promoting Dept. and
CSR & Corporate Communications Dept..

Mr. Yamaguchi presenting the lecture

Lecture on CSR held at Headquarters on July 26, 2012

Third-party dialogue held at Headquarters on
September 3, 2012

Response to the Third-Party Opinion
First of all, we would like to express our appreciation to Mr.
Yamaguchi for his invaluable comments and beneficial advice withregard to our CSR Report 2012.
As in fiscal 2011, we had meetings with Mr. Yamaguchi thatinvolved the heads of relevant sections. Prior to the meetings, hepointed out some areas for improvement in the first draft of thisCSR Report. At the meetings we exchanged opinions with regard
to our approach and response to said recommendations. We
strove to reflect his recommendations to the greatest extent possible in this CSR Report.
In line with recommendations given in fiscal 2011, we strove toimprove the entire structure of this report, which begins with amessage from the president that gives an overview of DENKA’s
Groupwide CSR activities and its level of commitment to carrying
them out and ends with reference materials (available only on thewebsite). We are grateful that this met with Mr. Yamaguchi’s
approval. Of course, we will further accelerate our ongoing efforts
for information disclosure while pursuing initiatives with stakeholders, especially initiatives with employees, our primary stakeholders.

In addition, we note that Mr. Yamaguchi pointed out things it
might be good to incorporate as follows: verifying the progress of
our CSR activities utilizing the ISO 26000 standard; preparing aroadmap for CSR activities; and establishing a structure to realize
synergies between GCP and CSR activities. We recognize thatthese things are essential to CSR promotion and will seriously consider if we could implement them. As for information disclosure onlabor-related CSR, we will work to communicate more accurate
and realistic pictures of each activity while working with the departments involved to tackle related issues with reference to the relevant guidelines.
We would be delighted to hear your frank opinions with regard
to this CSR Report. Spurred by the guidance and advice of our
stakeholders, we will further advance Groupwide CSR activities
and thus fulfill our social responsibility as a company.

Mitsukuni Ayabe
Director, Managing Executive Officer
In charge of CSR & Corporate Communications Dept.

■ For More Information
CSR & Corporate Communications Dept. DENKI KAGAKU KOGYO KABUSHIKI KAISHATEL. +81-3-5290-5511 FAX. +81-3-5290-5149
Nihonbashi-Mitsui Tower, 1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo 103-8338, Japan
www.denka.co.jp/eng
DENKA CSR REPORT 2012

39

Third-Party Opinion

I prepared this third-party opinion taking two dialogue sessions I
had with the Company into account. First of all, I hereby report thatthese sessions involved people in responsible positions, including
directors and corporate auditors, representing a variety of departments. The lineup of personnel clearly demonstrated DENKA’s
determination to step up its CSR activities by preparing and issuing
CSR Report, which impressed me a lot. I was also given a list outlining steps the Company intends to take in light of 68 recommendations I made with regard to the first draft of the report. This list
detailed improvements made to this report as well as items that are
to be improved in the next report, along with the names of the sections responsible for each step. I believe that DENKA will be served
well by this earnest attitude and will succeed not only in continuously improving its CSR Report, but also in enhancing all its CSR
activities.
Compared with that of the previous year, there were remarkableadvances in this report.
First, reference materials (web-based report only) wereenriched. In combination with a booklet and reference materials, the
CSR Report comprises a considerable volume of information. I
believe that this has enabled DENKA to present a realistic picture to
readers. Hereafter, the remaining issues to be addressed are how
to select information in accordance with its materiality and towhether to allocate such information to the booklet or the archive of
web-based reference materials.
Second, the Message from the President was enriched andclearly expresses the president’s determination as a promulgator of
CSR to aggressively tackle issues. Moreover, the message covers
broader topics, most of which are discussed further in later sections of the report. As a result, the CSR Report reads as an organically composed whole and it is clear that the report was prepared
under the president’s strong leadership.
Third, the Company frankly presents negative information,
including a violation of the EU Competition Law, an increase inoccupational accidents causing absence from work as well as
mental health problems, the occurrence of several severe accidents
at plants and a slight rise in the number of minor accidents. This
open attitude makes it easier to find solutions to problems and will
eventually kick-start a new cycle of improvement.
Fourth, it is stated that “we position our employees as primary
stakeholders” (Mitsukuni Ayabe, Director, Managing Executive
Officer). This shift in positioning is affecting many other articles
around the report. For example, Initiatives with Employees appears
ahead of the articles pertaining to other stakeholders. I believethese changes represent that the Company’s awareness of “stakeholder engagement (a concept on which ISO 26000 places greatemphasis) with employees was even more heightened. Moreover, I
expect that DENKA will seek a variety of other stakeholders withwhom to establish relationships in which by working together they
will reap benefits.
On the other hand, I would like to point out some matters that I
expect DENKA to improve to enhance its CSR activities and toenrich its CSR Report.
First, I would recommend that DENKA verify the progress of
CSR activities by applying the ISO 26000 standard. In fact, a number of companies are starting to examine their own CSR activities
according to this standard, using a check sheet tailored to their

Dialogue Sessions Held Prior to the Preparation of the Third-Party Opinion