CSR
CSRReport
ReportMITSUBISHI
MITSUBISHIGASGASCHEMICALCHEMICALCOMPANY,COMPANY,INC.
INC.
Mitsubishi
Mitsubishi
Building,
Building,
2-5-2
2-5-2
Marunouchi,
Marunouchi,
Chiyoda-ku,
Chiyoda-ku,
Tokyo
Tokyo
100-8324
100-8324

Corporate
Corporate
Communications
Communications
Division
DivisionTel:Tel:+81-3-3283-5041+81-3-3283-5041
Fax:
Fax:
+81-3-3287-0833+81-3-3287-0833
Environment
Environment
andand
SafetySafetyDivision
Division Tel:Tel:+81-3-3283-4828+81-3-3283-4828
Fax:
Fax:
+81-3-3283-4840+81-3-3283-4840
URL
URL
http://www.mgc.co.jp/eng/
http://www.mgc.co.jp/eng/

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“Morino“MorinoChonai-Kai”
Chonai-Kai”(Forest(ForestNeighborhood
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Association)— —Supporting
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2017
2017

Contents

Interview with the President

Editorial Policy

2Profile of Mitsubishi Gas Chemical (MGC)
Company Overview
MGC in Our Daily Lives

5
7

MGC Group and CSR(1) Starting with our Philosophy and
Behavior Guidelines(2) With an Eye to Our Vision for 2021
FY 2016 TOPICS

11
13
15

Stakeholders and MGC
Together with Customers
Together with Our Business Partners
Together with Employees
Together with the Community
Together with Shareholders and Investors

17
17
17
21
22

CSR Management
Corporate GovernanceCompliance and Risk Management23
24

Responsible Care and MGC
Results and Plans for RC Activities at MGC

27
29

Occupational Health and Safety, Process
Safety and Disaster Prevention

31

Environmental Impacts Accompanying
Business Activities (Domestic MGC Group)

33

Environment and Safety Management

Environmental Impacts Accompanying
Business Activities (Overseas MGC Group)
Preservation of Biodiversity (MGC Alone)34
34

Initiatives for the Prevention of Global Warming(MGC Alone)
35
MGC Group Eco-friendly Products Becoming
Widespread
Reducing Chemical Substance Emissions(MGC Group)
Reduction of Waste (MGC Group)
Conservation of Water and Atmospheric
Environments (MGC Group)
Environmental Accounting (MGC Alone)
Safety Management of Chemicals andProducts
The MGC Group Environment and
Safety Council
Responsible CareAt every stage of their operations, companies
dealing with chemicals must ensure that theenvironment, safety and health aresafeguarded. This starts with the development
and manufacturing of chemicals, and goes all
the way through to distribution, use and final
disposal after consumption. It also involves
publishing the results of those activities, being
engaged and willing to communicate with society. The chemical industry
refers to this conscientious activity as Responsible Care (RC).

1

MITSUBISHI GAS CHEMICAL COMPANY, INC.

36
39
40

About This Report
The purpose of the CSR Report 2017 is to provide
stakeholders with information about Mitsubishi Gas
Chemical Company, Inc. (MGC) and our corporate social
responsibility (CSR) activities, to broaden understanding
about MGC and its activities.
The following guidelines were referenced during thecreation of this report to provide an easier to understandlayout using clear and concise language. The MGC
Group’s Eco-friendly Products Permeating Our Daily Lives
section features seven products and technologies that
contribute to reducing environmental impact and creating
a positive environment in such ways as cutting food waste
and reducing substances that pollute the atmosphere. In
addition, our vision for CSR activities based on ourphilosophy and initiatives and outcomes toward “Creating
values to share with society” are highlighted in the MGC
Group and CSR section. We openly welcome your honest
opinions and feedback about the contents of this report.
MGC stands firmly committed to promoting further
stakeholder engagement through the appropriate sharing
of information.

Interview with the President

MGC will pursue the Group Vision of “Creating values
to share with society” to fulfill the expectations of all of
our stakeholders

Q1
A1

Scope of This Report
Organizations included
All MGC offices in Japan. The activities of the entire MGC
Group and individual subsidiaries are also covered in certain
sections of the report.
Reporting period
April 1, 2016 through March 31, 2017 (includes some
activities after April 2017).
However, Responsible Care (RC) activities are included fromJanuary 1, 2016 – December 31, 2016 (includes some RC
activities after January 2017).

Q2
A2

Reference Guidelines

43
45

Publication Information

Toshikiyo Kurai

Date of publication: December 2017

President andRepresentative Director

Disclaimer:This report contains past and present facts, in addition to information
about expectations regarding social conditions, management plansand policies of the company together with anticipated results. Theseassertions or assumptions are based on the information available atthe time of drafting, however unforeseen circumstances may lead to
unexpected social conditions or result in changes to businessactivities which are different to those expressed here.

We recorded all-time high profit due to an
improvement in the revenue balance thanks to
structural reform and other measures.

MGC Group supplies creative products and technologies,
primarily in our four core business segments called the
Natural Gas Chemicals Company, Aromatic Chemicals
Company, Specialty Chemicals Company and Information& Advanced Materials Company under the MGC
Philosophy for Being, which states “MGC contributes tosocietal growth and harmony by creating a wide range ofvalue through chemistry.”
In FY 2016, we experienced substantial profit growth asordinary income and net income recorded all-time highs.
While this was due in part to the blessing of an upturn inmarket conditions for commodityproducts, it can also be
said that it is the outcome of continuous efforts to date,including the improvement in our revenue balance throughthe advancement of structural reform. Going forward, we
will concentrate our efforts on building a resilient corporate
structure that is not affected by the external environment
with a desire to achieve stable growth.

• Ministry of the Environment, “Environmental Reporting
Guidelines (2012)”• Ministry of the Environment “Environmental Accounting
Guidelines 2005”• ISO 26000

4142First, could you provide an overview of MGC
Group’s business and tell us about its
business performance in FY 2016?

Could you tell us about the progress of the
mid-term management plan MGC
Advance2017?
We promoted a revision of our businessportfolio aimed at stable growth.

Under MGC Advance2017, our mid-term management
plan, we are aiming to achieve a balanced businessportfolio (optimization of the business structure) byenhancing the profitability of existing businesses, especiallycore businesses, in addition to concentrating efforts on
restructuring underperforming businesses and developing
and creating new businesses. In FY 2016, with the aim ofenhancing profitability, we expanded production capacity
for special polycarbonates and decided to increase
production capacity for glycidyl methacrylate. We also
promoted the restructuring of underperforming businesses
and concentrated efforts on establishing structures that will
accelerate the creation of new businesses.
MITSUBISHI GAS CHEMICAL COMPANY, INC.

2

Interview with the President

Q3
A3

Could you tell us about progress in “creating
new businesses” in more detail?
We have promoted organizational
restructuring aimed at the speedy creationof new businesses, primarily in the“medical/food” field.

MGC Group has established the five target fields ofenergy, information/communications, mobility, medical/
food, and infrastructure as business areas to focus on.
Of these, we are concentrating in particular on the fieldof “medical/food,” which goes a little beyond an extensionof our existing businesses. MGC Group has previously
leveraged the culturing technology it has nurtured todevelop businesses related to health food ingredients andmonoclonal antibody pharmaceuticals. In order to further
speed up business development in this field going
forward, we established a new Life Science Division in the
Natural Gas Chemicals Company in October 2016 (seepage 16). We are also developing an array of “medical/
food” related businesses such as oxygen absorbers, foodpackaging materials, and medical packaging materials at
our other companies. Thus, we aspire to amass thesetechnologies and products across the Group, without
being restricted by organizational territories, thereby
achieving synergies.
In order to promote the creation of new businesses,
and not only in the “medical/food” field, it is important toadopt an approach of “learning about technology we do
not have from others” rather than insisting on closed
innovation. In FY 2016, we implemented alliances withexternal partners, including participation in an investment
partnership run by Universal Materials Incubator Co., Ltd.,establishment of a monoclonal antibody pharmaceuticals
manufacturing company in a joint venture with Nippon
Kayaku Co., Ltd., and investment in Veritas In Silico Inc.,
which conducts research into nucleic acid
pharmaceuticals.
As for internal organization, meanwhile, we establishedthe Business Strategy Division in April 2016 following theAdvanced Business Development Division established in
FY 2015. There are many cases of overlap in the fields of
new businesses and existing businesses. Therefore, going
forward, the Business Strategy Division will perform
coordination from the perspective of total optimization,
including determination of the department in charge andthe allocation of management resources.

3

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Q4
A4

Could you tell us about Groupmanagement?
We are implementing measures aimed atachieving our vision in each of the areas ofmanagement streamlining, governance, anddiversity of human resources.

We have been working on the introduction of the Business
Management Unit (BMU), which regards MGC divisions andGroup companies that have closely related businesses assingle units in order to ensure the Group’s best awarenessand action based on shared values and objectives at Group
companies, which are responsible for different businesses indifferent regions worldwide. Moreover, we have alsoestablished an integration study committee aimed at the
integration of the three main trading companies. We willfurther strengthen and enhance the functions of the trading
companies, positioning them on the frontline of the MGC
Group, which translates the strength of chemicals into
solutions for social challenges. Going beyond mere
streamlining, we expect the trading companies to become
MGC Group’s powerful partners, which will include gathering
information from around the world.
In addition to strengthening MGC Group management inthis way, we aim to be a corporate group that continues togain a high level of trust from society due to highly
transparent management through corporate governance.
We also value the diversity of human resources, which isthe source of our capacity for growth. We would like to makeuse of “differences” such as nationality, language, culture,age, sex, expertise, and values in enhancing competitivenessand growth. For example, at present, for MGC alone about
80% of our employees are technical-related. While this canbe a strength, a uniformity of ideas is also a weakness.
Corporate development requires human resources that playa diversity of roles. We also need to have a broad perspectivewith multi-faceted viewpoints and ideas in order to continue
producing technologies and products that are useful tosociety. Therefore, we promote human resource exchanges
and technical collaboration between Group companies. At
the same time, we have been increasing the opportunities for
employees to encounter different ideas and cultures throughsuch means as providing marketing training to technicalrelated human resources and having them take advantage ofthe program for short-term training overseas.
Through these initiatives, we will foster a corporate
culture in which people working at MGC Group respect
diversity and collaborate with partners inside and outside
the Group that have diverse strengths, enabling the creationof synergies.

Q5

Could you tell us what kind of results there
have been with regard to “Creating values toshare with society”?

A5

We have been able to provide society withnew value in diverse areas, including
technical innovation, solution ofenvironmental challenges and contribution
to local communities.

It could be said that “Creating values to share with society,’stated in our Group Vision, is the essence of “MGC
contributes to societal growth and harmony by creating awide range of values through chemistry,” which is MGC
Group’s Philosophy for Being. The flip side of this seems
harsh, but we have a sense of crisis about whether society
really needs products that keep losing money, and we havepromoted structural reform.
Meanwhile, as an example of the value created throughour products, in 2016 our special polycarbonate used forsmart phone camera lenses and other applications received
the Ichimura Prize in Industry for Outstanding Achievement,
which is presented to products that have made outstanding
and extensive contributions to society (see page 15). This
product has a high share of the global market as a plastic
that contributes to the miniaturization and high resolution ofcamera lenses, and it was an excellent boost for the entire
company that the results of some ten years of persistentresearch and development have been highly rated by society.
In addition to taking pride in this award, we are considering
whether we can take any initiatives that utilize the prize
money in some form for social contribution.
As for products that help solve social challenges, wehave selected and published “MGC Group environmental
contribution products” (pages 36-38). Achieving internationaltargets under the Paris Agreement and the Sustainable
Development Goals (SDGs) will require innovation, andchemicals have great potential for making a contribution tothis innovation. We expect that presenting how MGC Group’s
chemicals are helping to reduce environmental impact forms
the first step in unlocking this potential.
Further, QOL Innovation Center Shirakawa commenced
operations in Shirakawa City, Fukushima Prefecture in April
2017 (see page 16), raising expectations that it will generate
local employment, not to mention developing andmanufacturing products that will lead to QOL (quality of life)
improvements. In Fukushima Prefecture, we are also taking
part in a natural gas thermal power generating project inSoma City, and we hope that these projects overall will
support reconstruction from the earthquake disaster which
occurred in 2011.

Q6
A6

Could you tell us about initiatives to ensure
safety, including at Group companies
outside Japan?
We will share our safety philosophy
throughout the Group and continue working
to be accident- and disaster-free.

MGC has been promoting the Bridge safety project under
the safety philosophy that the top priority of our businessis ensuring safety. In conjunction with this, the MGC Grouphas been working together with the goal of achieving zeroaccidents and zero occupational injuries by sharing casestudies of accidents and occupational injuries as well as
best practices at individual companies through the MGC
Group Environment and Safety Council.
Thanks to these efforts, all MGC plants were completely
accident-free* in 2016. This is certainly something to be
proud of, but past safety is no guarantee of future safety.
Going forward, it is important to strengthen our efforts toensure safety and maintain our awareness of continuing tobe accident- and disaster-free.
Furthermore, as the ratio of overseas production rises, it
is essential to share our safety philosophy and put it into
practice at overseas sites as well. We will expand the efforts
at our domestic sites, which are the mother plants, overseas,too, to foster a Group-wide culture of prioritizing safety.
*Zero accidents, both with and without lost working time.

MGC Group hopes to realize sustainable growth inprosperous coexistence with a wide range ofstakeholders, including customers, shareholders andinvestors, employees, business partners such as suppliers
and alliance partners, and local communities. We willcontinue to welcome honest feedback and requests fromour stakeholders.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

4

Profile of Mitsubishi Gas Chemical (MGC): Company Overview

Operating a Global Business in a Truly Wide Range of Segments,from Basic Chemicals to Fine Chemicals and Functional Materials

Businesses and Main Products — Operating Eight Businesses through Four Companies

Corporate Information (as of March 31, 2017)

Domestic Network

Company name MITSUBISHI GAS CHEMICAL COMPANY, INC.
Head office address Mitsubishi Building, 2-5-2 Marunouchi,
Chiyoda-ku, Tokyo 100-8324
Established
January 15, 1918
Incorporated April 21, 1951
Capital ¥41.97 billion
Number of employees
8,034 (consolidated), 2,323 (non-consolidated)
Number of consolidated subsidiaries 71
Main business sites in Japan
Branch Osaka BranchOverseas offices Shanghai Office, Taiwan Office
Research institutes
Tokyo Techno Park (Tokyo Research Laboratory, MGC Chemical
Analysis Center, Research and Development Center), Niigata
Research Laboratory, and Hiratsuka Research Laboratory
PlantsNiigata Plant, Mizushima Plant, Kashima Plant, Yokkaichi Plant,
Yamakita Plant, Naniwa Plant, and Saga Plant• Head Office• Yamakita Plant• Niigata ResearchLaboratory• Yokkaichi Plant• Niigata Plant• Naniwa Plant• Kashima Plant• Mizushima Plant• Tokyo Techno Park

• Saga Plant• Osaka branch

Net sales/operating income/ordinary income
Net sales(Millions of yen)International Network• AGELESS (THAILAND) CO., LTD.
• BRUNEI METHANOL COMPANY SDN. BHD.

600,000
500,000

593,502534,443

Ordinary income(Millions of yen)

529,570

100,000

467,979

400,000

43,762
14,996300,000
200,000

120,000

556,480

11,488

11,42162,37845,43242,000

2012

2013

2014

2015

Net income attributable to owners of the parent/
return on equity (ROE)
Net income attributable to owners of the parent(Millions of yen)
50,00040,000

11.9%

12

-2.8%
2014

2015

2016

(FY)

Equity ratio

57.7%

600,000
500,000

46.2%

47.5%

47.8%

51.0%

400,000
300,000

294,895

323,858

422,851

423,135

(%)
60

50

476,74940
30
20

200,000

10

100,000

0

0

2012

2013

2014

2015

2016

• SAMYOUNG PURE CHEMICALS CO., LTD.
• SUZHOU MGC SUHUA PEROXIDE CO., LTD.

Net assets/equity ratio
Net assets(Millions of yen)

• PTM ENGINEERING PLASTICS (NANTONG) CO., LTD.
• SAUDI METHANOL COMPANY (AR-RAZI)

-3

2013

• MITSUBISHI GAS CHEMICAL EUROPE GMBH

6

0

2012

• MITSUBISHI GAS CHEMICAL ENGINEERING-PLASTICS (SHANGHAI)
CO., LTD.

9

3-7,793-10,000• MITSUBISHI GAS CHEMICAL AMERICA, INC.

• POLYXYLENOL SINGAPORE PTE. LTD.

5.0%

0

The chemical principle of oxidation,
where iron reacts with oxygen andrusts, has been put to use in a barrier
film to absorb oxygen in a completely
sealed container to protect foods
against oxidation and deterioration.
This product concept led to thedevelopment of AGELESS, the world’s
first oxygen absorber, which made
MGC the pioneer of oxygen absorption
technology.

• MGC PURE CHEMICALS AMERICA, INC.

• PT PEROKSIDA INDONESIA PRATAMA

14,921

10,000Our Electronics Material Businesssupplies materials for electronics
including laminates for printed circuitboards (PCB) and support materials fordrilling in the PCB manufacturing
process. These products meet thestringent requirements of the PCB
industry. In particular, BT laminates,
which led to plastic semiconductor
packages, have contributed to theevolution of semiconductor.

• MGC MONTNEY HOLDINGS LTD.

(%)

9.0%

20,000Engineering plastics, such aspolycarbonate and polyacetal, havecontributed to reducing the weight ofautomobiles and machinerycomponents. Our Engineering Plastics
Business also offers special
polycarbonates for optical applications
and polycarbonate sheet (film) which
has advantages for surface processing
technologies.

• MGC ELECTROTECHNO (THAILAND) CO., LTD.

• MITSUBISHI GAS CHEMICAL SINGAPORE PTE. LTD.

34,13430,000

Our Inorganic Chemicals Businesssupplies hydrogen peroxide forindustrial use, chemicals for use in theelectronics industry and environmental
chemicals based on hydrogen
peroxide which have low environmental
impact and diverse functions such as
bleaching, disinfecting, oxidizing, andmetal etching. We also offers
monomers for ultra-high refractive
index lenses and photoresist
monomers.

• MGC ADVANCED POLYMERS, INC.

Return on equity (ROE)
15

(FY)

* Some MGC affiliates outside of Japan have been using International Financial Reporting Standards (IFRS) since

Our foamed plastic provides a range ofperformance benefits such as shock
absorption, thermal and sound insulation
with structural strength, chemical
resistance and recyclability and very
low weight. It is widely used in daily life
and typical uses are food containers,
residential insulation materials,
industrial packaging materials, andautomotive components, contributing
to energy and resource savings, andconservation of the environment.

Oxygen Absorbers Business• MITSUBISHI GAS CHEMICAL SHANGHAI COMMERCE LTD.

47,95843,346
12.6%

Our highly original product portfolio,
which includes aromatic aldehydes,
primarily metaxylene chains, andaromatic polycarbonates are used inintermediate materials forpharmaceuticals, agricultural chemicals
and aromatics, resin raw materials, andadditives. MX-Nylon helps to retain the
freshness of food and beverages andreduce the weight of packaging.

Electronics Materials Business• MGC TRADING (THAILAND) LTD.

(FY)The Energy & Resources businesspromotes operations inside andoutside of Japan in search of energy
for chemical manufacturing, including
exploration and development for natural
gas and oil in Niigata Prefecture. The
Energy & Resources business isconducting a development project forclean, renewable geothermal energy in
Akita Prefecture as well as new
geothermal energy developments in
Hokkaido and the Tohoku region.

Engineering Plastics Business• MGC PURE CHEMICALS TAIWAN, INC.

2016

The Methanol and Organic Chemicals
business has an extensive line up of
products that are useful for people’s
lives ranging from methanol andammonia and their various derivatives
which are basic chemical raw materials
through to functional materials thatform the raw materials for plastics,
coating compounds, synthetic fibers,
adhesive agents, artificial leather,pharmaceuticals, and agriculturalchemicals.

Inorganic Chemicals Business

40,000

0

Foamed Plastic BusinessInformation & Advanced Materials Company• MGC PURE CHEMICALS SINGAPORE PTE. LTD.

0

Aromatic Chemicals BusinessSpecialty Chemicals Company

60,00020,000

Energy & Resources Business• JSP INTERNATIONAL GROUP LTD.

80,00030,80427,651

100,000

34,018

Methanol and Organic
Chemicals Business• KOREA ENGINEERING PLASTICS CO., LTD.
• METANOL DE ORIENTE, METOR, S.A.

Operating income

Aromatic Chemicals Company• Hiratsuka ResearchLaboratory• CARIBBEAN GAS CHEMICAL LTD.

Financial Highlights (consolidated)

Natural Gas Chemicals Company• TAI HONG CIRCUIT INDUSTRIAL CO., LTD.
• THAI POLYACETAL CO., LTD.
• THAI POLYCARBONATE CO., LTD.

Research and Development Strategy and Structure
MGC’s research and development
activities are divided into Company R&D
and Corporate R&D. Company R&D
assesses changing market needs, andbrings research laboratories and centers,
plant research and technology divisions
and marketing divisions together toundertake research and development inline with each company’s businessstrategy. Corporate R&D aims to create
new core businesses through theAdvanced Business Development Division
with a focus on research and development
centered on Five Target Fields (See page14) that leverage Group strengths from a
medium- to long-term perspective.

R&D goals and targets
Creation of new businesses peripheral to existing businesses/
brushing-up production processes/environmental impact reduction

Niigata
Research
Laboratory

Catalyst
technology
Superacid
Solid catalyst
High-pressure technique

Tokyo Research
MGC Chemical
Laboratory
Analysis
Advanced BusinessCenterResearch Center
Research andDevelopment Center

Plant Research
DivisionsTechnology platform
Synthesis
technology
Air oxidation
Liquid phase oxidation
Hydrogenation

Polymer technology
Condensation polymerization
Bulk polymerization
Oxidative polymerization
Films/sheets
Resin processing

Compounding
technology
Oxygen absorber
Resin varnish
Electronics chemicals

Hiratsuka
Research
Laboratory

Biotechnology
Continuous culturing
Breeding

FY 2015.

5

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

6

Profile of Mitsubishi Gas Chemical (MGC): MGC in Our Daily Lives
MGC is a chemical company engaged in a truly wide range of segments, from basic chemicals to finechemicals and functional materials.
In this section, we showcase MGC’s products and technologies in energy, information/communications, mobility, medical/food, and infrastructure, which are the five target fields listed in the
mid-term management plan MGC Advance2017.

Energy/Infrastructure

Mobility

Methanol

Geothermal power
generation

Used in plastics, coatings, andpharmaceuticals as a basic chemical,
with diverse applications forderivatives too. MGC has methanol
plants outside of Japan, supporting
much of global demand.

MGC is developing clean
geothermal energy with low CO2
emissions during generation andpromoting power generating
projects (See page 38).

Glycidyl methacrylate

Foamed plastic

Used in automotive topcoat
paints.

Widely used in automotive
interiors and exteriors, including
bumpers and seats. Light-weightfoam with high shock absorbing
properties has helped to enhancecollision safety performance andimprove fuel economy.

Metaxylenediamine(MXDA)
Used in coatings forstructures such as
bridges, plant pipes,
and tanks to prevent
metal deterioration(See page 37).

1,3-Bis (Aminomethyl)
cyclohexane
Outstanding weatherability,
used in coatings and paints.
Helps to extend the life ofbuilding walls and floors andwind turbine blades.

7

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Phthalic anhydrideand Isophthalic acid

Miscellaneous
engineering plastics

Used in plasticizing agentsfor softening PVC water
pipes.

Used as a component in door
mirrors, headlights, car navigation
systems, automotive interiors,
and the camera lenses of drive
recorders.

Polyacetal
Used in interior components andfuel pump modules.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

8

Profile of Mitsubishi Gas Chemical (MGC): MGC in Our Daily Lives

Information/Communications

BT materials forsemiconductor packages
MGC was the first in Japan to develop
this plastic PWB material that helps tomake mobile devices more compact
and high performance.

Medical/FoodDrying and de-oxydation
agent (PharmaKeep)

MedicalSector

Maintains low oxygen
concentration levels and low
humidity for pharmaceuticals,
which ensures longer lasting
quality.

Polycarbonate (Iupilon)
Used in touch panels and liquid
crystal displays for mobile devices.

EL chemicals
Used during the manufacture ofsemiconductors, flat panel displays,
and printed wiring boards.

Epoxy printed wiring board(PWB) material
Used in motherboards.

Food
SectorAnaerobic culture system (AnaeroPack)

Peracetic acid (Diapower)

This system is used in microorganism testing at
clinical labs to speed up diagnosis and contributing
to research and development in the medical sector.

Used in the disinfectant andsterilization of medical devices
and equipment.

Oxygen absorbers(AGELESS, AGELESS OMAC)
Absorbs oxygen in sealed containers to maintain a longshelf life, taste and freshness. Maintains the quality offood and helps reduce wastage (See page 36).

Miscellaneous engineering plastics

Pyrroloquinoline quinone (PQQ)
A new food ingredient considered to be not only
beneficial for the brain but also for beauty as well(See page 16).

Purified Isophthalic acid

SuppliUsed in the outer casings, internal gears andphotoreceptor drums of printers, copy machines,
and other office automation equipment.

Used in PET bottles.

Polyamide（MX Nylon)
Special Polycarbonate(Iupizeta EP)
Used in camera lenses. Features
excellent optical properties,
such as high transparency and ahigh refractive index, which
contributes to higher resolution
cameras (See page 15).

9

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Used for hot tea and carbonatedbeverage bottles because of its
excellent gas barrier properties.

Heat-resistant polyester(ALTESTER)

Hydrogen peroxide(Diapower HP)

Aromatic
aldehydes

Used for containers for jelly
and the like because it iseasily molded and is highly
transparent.

Used to clean and disinfectfood and beverage containers
allowing longer shelf lives atroom temperature.

Used as raw material
for agriculturalchemicals.

Neopentylglycol
Used in the outer film for PET
bottles.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

10

MGC Group and CSR (1) Starting with our Philosophy and Behavior Guidelines

We work on CSR activities as a corporate group that “contributes tosocietal growth and harmony by creating a wide range of value.”

MGC Philosophy

Innovative Technology andResearch and Development

Philosophy for Being
MGC contributes to societal growth and harmony by creating awide range of value through chemistry.

Management Concept
MGC management is striving to create a place where there is job
satisfaction and a dynamic group in which motivations and abilities
are respected.
Marketing that watches the world to ascertain needs, andexpands/creates markets
Creative research/development that deeply understands needs, andrefines the seeds that will bring forth success
Production activities that work toward improved technology,
environmental preservation, ensure safety, and provide better products
An open corporate culture in which each person can share their goals
and actively participate

Principles of Conduct
As a Professional Group
1. Courage that does not shy away from change
2. Aim for lofty goals
3. Perseverance in achieving goals
4. Build team spirit with communication

Safety Philosophy
Ensuring safety is the top priority of our business activity.

MGC Corporate Behavior Guidelines
Mitsubishi Gas Chemical Company, Inc. (“MGC” or “the Company”)
aims to be a company that acts with sound judgment and maintains
the trust and understanding of society. The Company operates undersix behavioral principles, presented and explained below, and will shareknowledge of these principles widely throughout Group companies.
Senior managers recognize that it is their role to embody the spiritof these principles, and while ensuring that they have a fullunderstanding of the necessary information inside and outside theCompany, they will take the initiative to promote a high level ofcorporate ethics, and strive to develop and operate an effective
framework for this purpose through the internal control system.
Furthermore, if an incident takes place in contravention of theseguidelines, they will take command and fulfill their obligations forinternal and external disclosure, strive to identify the cause of theincident and prevent its recurrence, and deal with the matter strictly
and fairly in respect to all parties, including management itself.
(1) MGC will ensure customer and consumer satisfaction and trust byproviding high-quality products and services that are useful, safeand reliable.
(2) MGC will voluntarily and proactively address environmental issues.
(3) MGC will comply with laws, regulations and rules, and will conduct
fair, transparent, appropriate and open business activities.
(4) MGC will endeavor to ensure broad-ranging communication withsociety through appropriate disclosure of information.
(5) MGC will engage in business activities that are useful for society,and actively contribute to society as a responsible corporate citizen.
(6) MGC will provide comfortable and productive working conditions
for employees, and will ensure a safe and rewarding working
environment.

Environment-related expenses in
R&D (FY 2016)
For environmentally friendly products

2

Product Development to
Meet Social Needs
Product varieties
Approx.

150

Offering Highly Safe and Reliable
Products and Services toEnhance Customer Satisfaction

See pages 7-10 for MGC in Our Daily Livesbillion yen

For environmentally friendly
production methods

Being a Corporate Group that
Continues to Gain a High Levelof Trust from Society
As members of society, corporations aresupported by diverse stakeholders, including
business partners, local communities, andemployees. As a corporate group that
continues to gain a high level of trust fromsociety, MGC Group ensures the soundness ofcorporate activities through the implementationof compliance and exhaustive risk managementin addition to actively promoting environmental
and safety activities.
We formulated the MGC Philosophy and the
MGC Corporate Behavior Guidelines as theguiding principles for putting these beliefs into
action. Going forward, every single employee
will strive to put corporate social responsibility(CSR) into practice in order to earn the trust andsupport of stakeholders.

0.9

Customer companies

billion yen

See page 6 for Research and Development Structure

Approx.

Promoting Fair and Appropriate
Transactions
Suppliers
Approx.

2,500(domestically)

See page 17 for Together with Our
Business Partners

13,000(domestically)

The number of manufacturers, domestically, who use and consume
MGC products. Trading companies not included.

See page 17 for Together with Customers

Creating Safe andComfortable Workplaces
Employees (consolidated)

8,034

Appropriate Information
Disclosure and Dialogue

See pages 17-20 for Together with Employees

Promoting Social
Contribution Activities

Shareholders

19,843See page 22 for Together with Shareholders
and Investors

Donations of chemistry experiment kits
Approx.

10,000See pages 21 and 22 for Together with the Community

Contributing to Conservationof the Global Environment
CO2 emissions reduction*1

26% (over FY 1990 levels)

Chemical substance management andair pollutant emissions*2

14Strengthening the CSRManagement System
Employees receiving grade-specific training

329

(MGC)

See page 23 for Corporate GovernanceSee pages 24-26 for Compliance and Risk Management% reduction (over FY 2014 levels)*1 GHG emissions intensity (CO2 equivalent) *2 PRTR substances

See pages 27-46 for Responsible Care and MGC

11

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

12

MGC Group and CSR (2) With an Eye to Our Vision for 2021

We are working on measures one by one based on the mid-term
management plan aimed at “Creating values to share with society.”

MGC Group’s Strengths
Unique proprietary
technologies

Global marketing structure

Development structure tomeet customer needs

Wide range of businesses

Strong relationships
with leading clients

Production system consistingof multiple locations

Mid-term Management Plan–Five
Basic Strategies
1 Enhancing the profitability of existing
businesses, especially core businesses
Mainly invest management resources in core businesses tofurther enhance profitability.
Core Businesses

Semi-Core Businesses

Natural Gas Chemicals Segment Methanol/Natural resources and energy
Aromatic Chemicals Segment

MXDA & MX Nylon/Foamed plastic

Aromatic aldehydes

Specialty
Chemicals Segment

Hydrogen peroxide & electronic
chemicals (EL chemicals)/
Polycarbonate & functional sheet film

Polyacetal

Information & Advanced
Materials Segment

BT materials/AGELESS

2 Restructuring underperforming businesses
We will find exit strategies for underperforming businesses.

3 Developing and creating new businesses
Create business in new areas meeting future market needs, inaddition to surrounding areas of existing ones.

New Business Development Measures• Establish Advanced Business Development division• ¥50 billion for R&D investment• Pursue M&A for growth• Utilization of QOL Innovation Center Shirakawa

4 Improving group-wide operational efficiency

We will create values to sharewith society and realize
sustainable growth.
Based on our Philosophy for Being, which is“MGC contributes to societal growth andharmony by creating a wide range of value
through chemistry,” we have constantly tried tocreate new technologies and value to grow inpartnership with society.
In tandem with the globalization of recent
years, the rapidly changing economic
environment and social structures around us
have become increasingly complex. While
providing value to society based on our four
companies, MGC aspires to continually create
new businesses to solve social issues that arisein the future and deliver new value.
Based on these aspirations, MGC
established “Creating values to share withsociety” as the Group Vision in FY 2015.
We will create not only economic but alsosocial value, that is, value that is shared withsociety, and aim to realize sustainable growth.

Maximize corporate value through group management action.

5 Improving total enterprise quality insupport of sustainable growth
Achieve further improvement in quality that continuously
enhances MGC Group’s competitiveness.
Main Themes• Minimizing losses using safe and stable operations• Strengthening internal control and compliance systems• Securing and training human resources for the future of the Group• Realizing a healthy and strong financial position

13

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

14

FY 2016 TOPICS

We achieved success in various projects aimed
at realizing our vision for 2021.

Received the Chemical Industry's First Ichimura Prize in Industry for
Outstanding Achievement for the Development of Special Polycarbonate
In April 2017, we received the highest level Outstanding
Achievement prize at The Ichimura Prize in Industry
from the New Technology Development Foundation,
which is presented to a technology developer or groupthat has made contributions and achievements toward
progress in industry. The technology for which we

received the prize is the Development ofHigh-refractive-index & Low-birefringence Special
Polycarbonate Resin, and it is the first time the prize has
been received by a chemical manufacturer which
produces basic chemicals and derivatives.

Established Manufacturing Company for Monoclonal Antibody
Pharmaceuticals Aimed at Strengthening the Life Science BusinessIn October 2016, MGC established a new Life Science
Division in order to speed up business development in
the “medical/food” field in which growth is expectedgoing forward. The division engages in the integrated
management of the life science business centered on
monoclonal antibody pharmaceuticals andmicroorganism culturing system products, primarily
pyrroloquinoline quinone (PQQ) and yeast containing
S-adenosylmethionine (SAMe).
In the area of monoclonal antibody pharmaceuticals,
in advance of the establishment of our new Life Science
Division, we set up Cultivecs Inc. for the contracted

manufacture of monoclonal antibody pharmaceuticals
including biosimilars in a joint venture with Nippon
Kayaku Co., Ltd in June 2016. Bio-pharmaceuticals,particularly monoclonal antibody pharmaceuticals, aregrowing significantly in the pharmaceutical market in andoutside Japan. However, as manufacturing anddevelopment costs are high in comparison withconventional low molecular-weight drugs, the burden on
patients themselves and medical insurance is an issue.
Cultivecs Inc., will contribute to the proliferation ofbiosimilars in Japan by developing a contracting businessfor monoclonal antibody pharmaceuticals.

Monoclonal antibody pharmaceuticals research facility

PQQ

Commemorative trophy for the Ichimura Prize
in Industry for Outstanding Achievement

We also received the following awards
for this technology.
•48th JCIA Technology Award: Grand Prize(Japan Chemical Industry Association)•65th Chemical Technology Award(The Chemical Society of Japan)

Yeast containing SAMe

Commemorative banquet for the Ichimura Industrial Prize

What is High-refractive-index & Low-birefringence Special Polycarbonate Resin?
Iupizeta EP series special polycarbonate developed by MGC is amaterial that combines optical performance, processability, andenvironmental performance which has a high market share as a resinthat helps with miniaturization and high resolution, such as forcamera lenses in smart phones and tablets. In addition to the
Kashima Plant, it has been produced at the Niigata Plant since 2014.
Going forward, expansion is expected into diverse applications,
including on-board automotive cameras, surveillance cameras, game
consoles, medical devices, and drones, and we are increasing
production capacity in line with demand, which includes boosting the
production capacity of the Kashima Plant in 2016.

Pictures are images

Main Features of Iupizeta EP SeriesHigh refractive index

High refractive index helps to thin the lens

Low birefringence

Low birefringence reduces optical distortion and helps to increase image clarity

Excellent moldability
and processability

High fluidity and suitability for thin-wall molding process helps to thin the lens

Reducing
environmental impact

Helps to reduce environmental impact using manufacturing method that does not
require solvents and does not produce wastewater

Established QOL Innovation
Center Shirakawa

Launched Sales ofTransparent Polyimide Varnish

In April 2017, we established the QOL Innovation
Center Shirakawa as a new manufacturing andresearch and development site for MGC Group. QOL
is an acronym for Quality of Life, and MGC has
positioned it as “the major site for realizing the Group
Vision of ‘Creating values to share with society’ ininnovating an array of differentiated products toimprove the quality of life.”
After the completion of the first phase of
construction, we have begun operating a plant for
AGELESS, an oxygen absorber that prevents thedeterioration of food and medicines, and functionalfilm sheet used in the information and electronics
sectors.

We launched sales of Neopulim, a transparent
polyimide with outstanding heat resistance, lowthermal expansion, and optical characteristics. We
have already launched mass production for use in
optical components.
We also promoted marketing of Neopulim for use
in a variety of display
substrates, including
flexible organic EL
displays. Neopulim,
which offers an
outstanding balanceof heat resistance toover 400°C, lowthermal expansion,and opticalcharacteristics, is the
subject ofconsiderable
expectation.

QOL Innovation Center Shirakawa

15

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Transparent polyimide varnish

MITSUBISHI GAS CHEMICAL COMPANY, INC.

16

Stakeholders and MGC

Together with Stakeholders
As a member of society MGC contributes to the community, and by fulfilling its responsibilities tovarious stakeholders, the company will earn society’s trust and sympathy.

Together with Customers

Together with Employees

Number of employees/managers who are foreign nationals(non-consolidated)

We work hard to provide safe and highly reliable products
and services to all of our customers, from direct business
partners to the end consumer. As part of these efforts, all ofour plants have acquired an ISO 9000 series of certificationin quality management.
If problems related to the Product Liability Law (PL Law)
occur, the designated staff person in charge of complaints ateach Company will work with the business division inquestion, the production divisions, research divisions, or
logistics divisions, to investigate the source of the problem
and design countermeasures. At the same time, the Product
Liability Committee, which received a report from thedesignated staff person in charge of complaints, formulates
and implements company-wide preventive measures.
It should be noted that problems related to the Product
Liability Law have not occurred at MGC so far.
In addition to these company-wide activities, we are also
striving to raise customer satisfaction in each particularbusiness division.

Respect for human rights

Employees who are foreign nationals(People)Together with Our Business Partners
We carry out fair and open procurement activities in fullcompliance with applicable laws and we are building
relationships of trust with our business partners to help build
an environmentally-friendly and safety-minded supply chain.

Compliance with the act against delay in paymentof subcontract proceeds, etc. to subcontractors
All of our business transactions with business partners arein full compliance with the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors. Every year
we check the entire company for compliance with thisimportant law. We have also created a check sheet toverify the applicability of this law during new business
transactions and regularly hold in-house training sessions
on the law to ensure complete compliance.

At MGC, we strictly adhere to our Corporate Behavior
Guidelines and MGC Code of Conduct, to respectindividual personality and human rights, to not hurt anyone
by discriminating against them based on their race,
gender, nationality, age, religion or place of origin. We
provide separate training courses on human rights for new
employees and managers to raise awareness of humanrights among all employees. Our Code of Conduct also
articulates that sexual harassment and power harassment
are prohibited. We are committed to preventing themwithin our company, and reinforce this principle throughtraining sessions, internal communications and a special
consultation desk.
These guidelines and code—along with the four
fundamental principles* of the International Labor
Organization (ILO)—have been communicated to ourGroup companies overseas.

We are working closely with the shipping providers of ourpartner companies to ensure safety during transportation,
to enhance logistics quality, andto carry out a modal shift.
Additionally, we also carry out
audits of our partner companies
from the standpoint of
Safety education at the firstcompliance and to build moredelivery due to our modal
positive, lasting relationships.
shift.

17

MITSUBISHI GAS CHEMICAL COMPANY, INC.

8

8

7

6

5

1

1

1

1

2012

2013

2014

2015

Re-employment of retirees
The re-employment rate for retirees desiring re-employment
has reached 100% for eight years in a row from FY 2009 to
FY 2016 as a result of our re-employment opportunities for
retirees. In FY 2016, 47 of the 69 workers who reachedretirement age wanted re-employment, and all of them werere-employed. Providing mechanisms that enable employees
to continue working actively regardless of age contributes tocreating a vibrant workplace.

80

40

9

150
100

7

12
8

50

12
9

0

2012

2013

2014

2015

100.0

100.0

100.0

100.0%

42 42

39 39

44 44

47 47

47 47

1865.91860.7

1856.4

1861.41867.5

(%)

2012

2013

2014

2015

2016

1,000

100
500
50
0
(FY)

0

2012

3

0

100.0

0

6

5

(Hours)

2013

2014

2015

2016

(FY)

Employment of people with disabilities
MGC’s employment rate for people with disabilities was
2.32% as of the end of FY
2016, which exceeded thelegally mandated rate of 2.0%.
We will continue working tocreate a workplace environmentthat allows people with various
disabilities to display their
Employee with a disability at
capabilities.
work.

Percentage of annual paid leave being taken (average forlabour union members)
(%)
100

87

87

91

91

2012

2013

2014

2015

86%

80
60
40
20
0

2016

(FY)

15

237

224

Total annual working hours (average for labour union members)

20

Number of managers*Excludes forwarded employees (People)

225

Efforts to reduce working hours
Total working hours were 1,867.5 hours per employee in
FY 2016. In order to reduce working hours, we are making
efforts that include establishing a no-overtime day andmeasures to encourage employees to take their annual
leave through such groups as the Shorter Hours
Committee established by labour and management.

1,500

Re-employment rate for workers
desiring re-employment

60

More active role for women
We have prepared an action plan ending in FY 2021 thattargets a four-fold increase in the percentage of female
managers over FY 2015. Under the action plan, we are
implementing measures to support career development
and working to enhance systems that assist withbalancing work and family life.

231

2016 (Fiscal year end)

*Excludes forwarded employees

Promoting diversity

210

1

0

2,000

We are putting effort toward creating an environment that
respects diversity and enables our employees, whothemselves are diverse individuals, to display their uniquecapabilities and approach work with a sense of purposeand meaning.

250

5

2

Workers desiring re-employment
Re-employed workers(People)

200

5

4

Re-employment of retirees

Number of female employees/managers (non-consolidated)

Working with partner companies

10* 1. Freedom of association and the effective recognition of the right tocollective bargaining; 2. Elimination of all forms of forced or compulsory
labour; 3. Effective abolition of child labour; and 4. Elimination of
discrimination in respect of employment and occupation.

Female employees(People)Number of managers*

Work-life balance
We have introduced a flextime system with the aim ofrealizing work-life balance. We have also established asystem for accumulating annual leave (up to 40 days) for
effective utilization of otherwise expired annual leave as wellas various types of special leave, including leave for marriage,
bereavement, a spouse giving birth, work transfers,
volunteering, donation, and self-care. In FY 2016, usage ofannual leave was 86.5%. We have maintained a high rate ofannual leave usage for many years, and a climate that makes
it easy to take annual leave has been created.

2016 (Fiscal year end)

Employment rate for people with disabilities
(%)
2.5
2.0

2.13

2.22

2.18

2.26

2.32%

2012

2013

2014

2015

2016

1.5
1.0
0.5
0
(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

18

Stakeholders and MGC
Together with Stakeholders

Childcare and nursing care
We have established a system for child care thatexceeds the statutory requirements, including childcare
leave until a child reaches two years and one month anda system of shorter working hours until a child enterselementary school.
We have achieved a 100% return to work afterchildcare leave for five years in a row. In FY 2016, weadded fertility treatment to theintended uses of accumulated annual
leave and prepared a pamphlet on ourchildcare systems.
We have established a system thatexceeds the statutory requirements fornursing care leave. This includes
allowing a maximum of one year,
Pamphlet on ourchildcare systems
which can also be split.

Number of employees using reduced working hours for childcare(People)
20

19

15

14

13

2013

2014

15

10

10
5
0

2012

2015

2016

(FY)

* Number of users during the FY

Number of employees taking nursing care leave

Personnel system
MGC’s personnel system is a multi-stream vocational
qualification grading system based on management by
objectives. Up to the standard age of 28, employees
belong to the same basic career path regardless of genderor educational background, and then move on to selectcourses that will help them in their career. We support all
employees equally, providing them with a range of career
opportunities in line with individual aspirations that meettheir role, achievements and capabilities.

Employees taking nursing care leave(People)
3
2

2
1

1
0

2012

2013

0

0

0

2014

2015

2016

(FY)

Development of human resource capabilities
In order to create an environment for each employee towork toward achieving individual goals, we are working toenhance systems that support career development andskill development based on grade-specific anddepartment-specific training and distance education.

Union/labor-management relations
Over the years MGC and the Mitsubishi Gas Chemical
Workers Union have built up mutual trust and respect between
each other based on positive labor-management relations,which allows them to work together to solve various issues.
We regularly hold management council meetings with the aimof sharing awareness of issues related to management and thebusiness environment, including such themes as theworkstyle, welfare, and treatment of employees, and meetingsof the Personnel System Review Committee and othercommittees for joint labor-management discussion of various
systems. Together we have revised the personnel system, there-employment system, and retirement plans. Other issues
such as wages and bonuses are determined through yearlycollective bargaining and other negotiations.
Number of labor union members (as of March 31, 2017)(People)Health management

Acquisition of next-generation support
certification logo “Kurumin”

20

20
19 (2)

16
12

7
7 (0)

6
6 (0)

9
8 (1)

8
8 (1)

MGC’s human resource development

4
0

2012

2013

2014

2015

2016

19

MITSUBISHI GAS CHEMICAL COMPANY, INC.

OJT* Parenthesis indicates the number of males who took childcare leave* For women, the fiscal year of child care leave is determined by the firstday of maternity leave.

(FY)

Our people are our greatest asset. Based on our humanresource development philosophy, MGC strives to create
mechanisms which enable individual employees to raise theirpersonal knowledge and capabilities as a professional whilefurthering individuality, as well as a working environment thatis invigorated with employees’ self-fulfillment.

1,967

1,917

1,877

2012

2013

2014

2015

2016

1,000

(FY)

• Global human resource development training andoverseas short-term training• Logical communication and negotiation strategies• Technology networking events (production, research andengineering departments)• Patent study sessions (research promotion departments)• Placements at research institutions, such as universities• Safety and health, environmental management, quality
control-related training• Other specialized education and in-house seminars

Employee tenure (as of March 31, 2017)
Male

FemaleTotal

Average age

40.4

39.7

40.3

Number ofyears worked

18.3

16.5

18.2

Retention of new employees (third year after joining)
Number of new employees
Number of employees at third year after joining, as of April(People)

100.0

100
80

94 96

94

98.4

97.9

95.8

Retention
(%)

98.0%

100

95

92 97

80

64 63

60

60

50 49

40

40

20

20

0

2011

2012

2013

2014

2015

0
(FY hired)

Turnover(People)Self-education

8

1,996

* The participation rate is 100% due to the union-shop system.

• New recruit training• New recruit follow up training

Number of employees on maternity leave before & after birth
Number of employees on childcare leave*(People)Junioremployees

1,980

1,500

0

• Mid-level employee training• Career development training

Maternity leave

Managerlevel• Beginner manager training• Manager training

It is important that our employees maintain their
physical health, and at MGC we have implemented
programs to ensure mental healthcare as well. The
Employee Assistance Program (EAP) is one of these, inwhich employees can freely contact external professional
institutes by e-mail, telephone or in person to discuss
concerns. In addition, in order to effectively implement thestress checks stipulated under Japan’s Industrial Safety
and Health Act, we conduct an annual “mental health”
diagnosis for self-evaluation of stress conditions in addition
to striving to raise stress awareness through workshops
and other means.
We also conduct mental health training during
sessions designed for new employees and employees
receiving a promotion.

GeneralManagerlevel• Organizational
management training

Care for mental healthMid-level
employees

2,500
2,000

500

Occupation-specific training

In June 2016, MGC acquired the next-generation
support certification logo “Kurumin” in recognition ofsystems and initiatives to support a balance
between work and family.
Kurumin certification is a system for enterprisesthat formulate and implement an action plan basedon the Act on Advancement of Measures to Support
Raising Next-Generation
Children and meet thestandards for certification toreceive recognition from the
Minister of Health, Labor, andWelfare as a company that
Kurumin logo
supports child raising.

Managementgrade

Grade-specific training

We provide regular health checkups every year for all
officers and employees, and the checkup rate is practically
100%. When the results of tests indicate the need forretesting or there are any findings, we work to promote
employee health through health guidance provided byindustrial physicians and public health nurses.

MGC company-wide education and training system• Language qualifications and language training (includes
English, other languages, and theme-specific training)• Management and business skills• Finance, accounting, tax, and law• Basic chemistry and basic safety technology• Other communications training• Practical OJT training

40

35

30
20

20

26

25

23

10
0

2012

2013

2014

2015

2016

(FY)

* Number of labor union members and managers retiring at their own
accord (including completion of leave of absence period, supportchanging job type, and excluding job transfers)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

20

Stakeholders and MGC
Together with Stakeholders

Together with the Community
Interaction with local communities
Involvement in community activities
We participate in community festivals, blood donation
drives, and traffic safety campaigns on local roads toencourage interaction with the local community.

Beautification activities, etc. in the local community
At each of its sites, MGC participates in the preservationof nearby coastal forests and cleanup activities for roads,
nearby riverbeds, and other activities.

Initiatives for the next generation

Basic policy on profit distribution

We host student visits and internships involving local juniorhigh schools, high schools, technical junior colleges anduniversities. Throughsuch initiatives, weare stimulating aninterest in chemistry
among children andstudents who are the
A student tour
next-generation.

MGC places the improvement of corporate value throughbusiness expansion and growth as a challenge of the greatest
importance, takes into consideration investment and lendingplans, financial health, and future business trends in order torealize future business growth, and works to achieve an optimal
allotment of retained earnings and returns to shareholders.
Regarding dividends, the decision to continue steady
dividends is made taking into account trends in business results.
In addition, MGC’s basic policy on the repurchase of its
own shares is to consider the market environment, etc. while
conducting such purchases in a flexible manner in order toenhance returns to shareholders and improve capital efficiency.
The year-end dividend for FY 2016 was ¥22 per share.
(Taking into account the 2 for 1 share consolidation conducted
on October 1, 2016, this was an increase of ¥6 per share.
With a dividend of ¥11 per share without taking the shareconsolidation into account, it is an increase of ¥3 per share.)Taking the share consolidation into account, the interim
dividend for FY 2016 was ¥16 per share (¥8 per share without
taking the share consolidation into account). Therefore, theannual dividend was ¥38 per share (¥19 per share without
taking the share consolidation into account).

(Hiratsuka Research Laboratory)

Coastal forest preservation activities(Niigata Plant)

Taking part in local traffic safety activities Taking part in a local festival(Niigata Research Laboratory)(Yamakita Plant)

Supporting “Fukushima Sakura Project”
Together with the completion of the
QOL Innovation Center Shirakawa in
Shirakawa City, Fukushima
Prefecture, we supported
Fukushima Sakura Project’s Haruka
2017 – Shirakawa Hana Kagari.
The project, which began in 2013 with the hope ofrecovery following the Great East Japan Earthquake,carries out activities that include sending seedlings ofHaruka, a new variety of cherry tree, from Fukushima
Prefecture to all parts of Japan. At the event, which
was held in Nanko Park and attended by Kozo
Yamamoto, then Minister of State for Regional
Revitalization, Masao Uchibori, governor of Fukushima
Prefecture, and Kazuo Suzuki, mayor of Shirakawa
City, the coming of a new spring was presented
through a performance of taiko drumming together
with a water screen and projection mapping as well asa chorus of recovery support song Hana wa Saku
(Flowers will Bloom), renewing the vision forreconstruction with the 6,500 people present.

Chorus of NHK’s recovery support song Hana wa Saku

21

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Site cleanup activities(Yokkaichi Plant)

Environmental and disaster preparedness
activities in the local community
To deepen understanding of our environmental conservationand process safety activities by local communities, MGC
has continued to participate in local dialogue meetings heldby the Japan Chemical Industry Association (JCIA).
In addition, we are working together with local
communities to promote safety and disaster preparedness
through joint drills with fire
departments and othermeans. All of MGC’s plants
have obtained ISO 14001
certification and continually
strive to improve the qualityof their environmental
Okayama District Responsible Caremanagement systems.
local dialogue meeting (Mizushima Plant)

Commendation from Virginia, U.S. inrecognition of performance in reducing
environmental impact
In August 2016, MGC Advanced Polymers, Inc., anoverseas subsidiary, gained approval for E3 (Exemplary
Environmental Enterprise) in an environmental program
promoted by the state of Virginia, and received acommendation. Approval under the program has threestages from E2 to E4, and E3 approval requires excellent
track record in environmental conservation, as well as
implementation of the rigorous environmental
management
system specified by
the E3 program anda pollution
prevention program.

MGC Advanced Polymers, Inc.

Ten years since starting to provide
chemistry experiment kits
MGC has continued
to provide chemistry
experiment kits tojunior high schools
near our facilities
since 2008 with theaim of helping
Commendation from mayor of
students to realize
Hiratsuka City
that chemistry isuseful in every-day life and preventing declining
interest in science. To mark the 10th anniversary of
the program, we received a commendation from themayor of Hiratsuka City.
The kits help students understand the oxidation ofiron by making pocket heating pads, and so far a totalof more than 100,000 kits have been used in juniorhigh school classes in 16 municipalities. We havereceived such comments as, “Students gained anunderstanding of the workings of an every-day item
and we were able to deepen their interest” and “Allthe students carried out the experimententhusiastically” from junior high school teachers that
we have provided the kits to.

Together with Shareholders and Investors
To ensure shareholders and the investment community
correctly understands MGC, we strive to disclose
information in a fair and transparent manner throughinformation disclosures in accordance with laws and therules of stock exchanges, the announcement of
information on our website or through media outlets, andthrough reports to shareholders.

General meeting of shareholders
The annual shareholders meeting is held avoiding peakdays so that as many shareholders can attend as possible.
MCG is also endeavoring to send the convocation noticeearlier as well as posting the information on the company
website before sending the convocation notice to give
shareholders more time to consider what to vote. We alsotranslate the convocation notice and other documents into
English and have adopted an electronic voting platform inorder to improve convenience for shareholders.

Briefings for institutional investors andsecurities analysts
For institutional investors and securities analysts, we holdearnings briefings, as well as business briefings. In addition,
we posted reference material from our earnings briefings, aswell as business reports, on our website in an effort to share
information about MGC in a timely fashion.
Composition of shareholders (as of March 31, 2017)

Individuals and others
18.0%
Foreign investors
33.7%
Other companies
in Japan
9.9%

Financial institutions
37.1%
Securities companies
1.3%
MITSUBISHI GAS CHEMICAL COMPANY, INC.

22

CSR Management

Corporate GovernanceCompliance and Risk Management

We strive to operate an effective corporate governance system and to continually reinforce andenhance our system in order to fulfill the expectations of all stakeholders.

In our aim to earn the trust and understanding of the community, MGC practices compliance while
readying and strengthening systems for responding to any manner of risk.

As a member of society, MGC strives to operate aneffective corporate governance system and to continually
reinforce and enhance our system in order to fulfill the
expectations of all stakeholders, including shareholders.

Basic policy(1) We ensure the rights and equality of shareholders.
(2) We cooperate properly with stakeholders other thanshareholders.
(3) We ensure appropriate information disclosure andtransparency.
(4) We fulfill the responsibilities of the Board of Directors, etc.
(5) We engage in constructive dialogue with shareholders.

Overview of Corporate
Governance Structure
For the sake of appropriate management supervision andcounsel from an external perspective, and to raise ourmanagement transparency and fairness, MGC appoints
two outside directors. Our management structure as ofJune 30, 2017 consists of 12 directors, including two
outside directors, and 24 executive officers (including
people who concurrently serve as directors).
Any important matters affecting MGC are to bereviewed and decided with a broader perspective at theManagement Council where management policy may be
discussed, and at the Operations Council where definitive

MGC Group Compliance
Compliance at MGC Group involves not only abiding bylaws and company rules, but also widely upholding fair,transparent and free business activities based on its
responsibilities to society as a group of companies. Basedon this understanding, we have summarized the actions to
be taken by executive officers and employees in the “MGC
Corporate Behavior Guidelines” and the “MGC Code of
Conduct” and we make revisions to these guidelines andcode of conduct as necessary based on changes thattake place in society.
To ensure thorough compliance across the entire MGC
Group, we distribute the “MGC Compliance Handbook” toall of our employees in Japan. For
overseas Group companies, we also
created English, Chinese and Thai
language versions of the “MGC
Corporate Behavior Guidelines” and the“MGC Code of Conduct” to ensure thephilosophy of MGC Group is madeMGC complianceknown to and practiced by all.
handbook
MGC compliance concepts
Compliance Regulations
MGC Corporate Behavior Guidelines
Toward a more concreteStandard of Conduct
MGC Code of Conduct

Corporate governance framework
General Meeting of Shareholders
Election/Dismissal
Board of Directors

Auditing

Audit & Supervisory Board
Audit & Supervisory Board members
Auditing

Compensation and Nominating Committee
Election/Dismissal
Crisis Management

Auditing/Supervision

Business Execution

Ad hoc organization

Election/Dismissal

Independent Auditors

Inspection/Reporting/Auditing

ChairmanPresident

Main committees related to internal controls

Internal Control Promotion Committee

Crisis Response
Headquarters

Compliance Advisory Committee
Management Council
Operations Council

Risk Management Committee
Internal Audit DivisionCorporate Groups/Company Groups
Auditing, management and guidance through MGC’s internal control system
Group companies

23

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Compliance System
MGC has established a Compliance Committee tosupervise matters concerning the Group’s complianceprogram, headed by the Chief Compliance Officer andreporting directly to the President. The Compliance
Committee also includes a director (as vice-chairperson),heads of compliance-related departments, and others.
The roles of the Committee are as follows:
1. Formulating and deliberating on the framework,
policies, and implementation measures of MGC
Group compliance.
2. Understanding the implementation status of MGC
Group compliance, and providing necessary
guidance and supervision.
3. Inspecting instances of noncompliance, andformulating and deliberating on measures forrectification and prevention of recurrence.

MGC compliance structure
Board of Directors
Report (as required)

President

Audit & Supervisory
Board

ReportReportCompliance Committee

Contact

action plans may be discussed. In addition, MGC draws
upon the expertise of legal counsel and other experts
when required in the decision-making process and thebusiness execution of the company.
There are four Audit & Supervisory Board members,
two of whom are external. They attend important meetings
as well as board meetings, conduct audits ofdepartments, inspect subsidiaries, and strive tounderstand the decision-making process and status ofbusiness execution. In addition to ensuring a rational
decision-making process and compliance with the law andcorporate ethics, the Audit & Supervisory Board members
conduct inspections of our business operations. They
regularly exchange opinions with directors and receive
status reports on business execution from directors andemployees on a regular basis, or immediately when
involving material matters. Members request explanations
as required and state their views. They also inspect
important documents concerning business execution, andrequire information from directors and employees.
Moreover, in order to ensure transparency, objectivity
and appropriateness in the processes for determining
compensation for directors and executive officers andthose for determining the nomination and election of
directors, Audit & Supervisory Board members, andexecutive officers, proposals on compensation and theappointment of officers are reviewed by the Compensation
and Nominating Committee composed of the Chairman,
the President and the outside directors before submission
to the Board of Directors.

Basic Approach to Corporate Governance

Chairperson: Chief Compliance Officer
Vice-Chairperson: One director
Members:General Manager of Internal Audit Div.
General Manager of Environment &Safety Div.
General Manager of Corporate
Communications Div.
General Manager of General Affairs Div.,
Administrative & Personnel Center
Temporary members: Ad hoc appointment
Observers: Audit & Supervisory Board members

Instructions forcorrections

Relateddivisions

ReportCompliance Consultation Desk
Compliance Committee Secretariat(Internal Audit Division)
ReportInternal contact
desks

External contact
desks

General contact:
Compliance Committee
Secretariat
Individual contact:
designated withineach division

Compliance attorneys(Contracted attorneys’ office)Consultation andnotification

Inspection
requests

Consultation andnotification

MGC executives and employees
People involved in the MGC Group’s business activities(family of MGC executives and employees,
affiliated companies, partner companies, trading partners, others)

Compliance implementation measures, guidance andsupervision, and steps taken to rectify and prevent
recurrence of noncompliance, which are formulated anddeliberated on by the Compliance Committee, arereported to the MGC President and Audit & Supervisory
Board, then implemented after following specified internal
procedures.
In addition, MGC has set up a “Compliance
Consultation Desk” to achieve early detection andundertake preventative steps against unethical practices.
Our internal contact desks are staffed by internal audit
departments, while external contact desks can be foundat the offices of specialized attorneys, including access tofemale attorneys. These specialized attorneys also provide
advice to the Compliance Committee and assist with thetraining of various related departments.
Reports and consultations brought to the attention of
the Consultation Desk and deemed as potentially serious
compliance violations are promptly reported to the
MITSUBISHI GAS CHEMICAL COMPANY, INC.

24

Stakeholders and MGC
Corporate GovernanceCompliance Committee chairperson. The Compliance
Committee decides on necessary rectification orrecurrence prevention measures after investigating therelated facts. Investigation results and the details of saidmeasures are also reported back to the party responsible
for the consultation or report.
In FY 2016, we once again raised internal awarenessabout the Compliance Consultation Desk.

Compliance Education
MGC sets aside October each year as “Ethics Month” toconduct compliance training for employees. The president
also sends out a circular to all business sites to raiseawareness about compliance issues.
In FY 2016, we chose specific items of timely nature fromamong the 40 different types of legal compliance training
materials contained on our intranet. These items were
provided to employees, through our e-learning system.
Given rising need to respond to compliance issues, suchas cartel involvement or illegal payoffs, at Group companies
affiliated with our overseas businesses in emerging countries
and other locations, MGC is also working to enhance thequality of its compliancetraining for staff that are
dispatched as officers tooverseas affiliates. In FY
2016, in addition to raisinginternal awareness about
overseas bribery regulations
once again, we distributed
reference materials to
Screenshot from thee-learning systembusiness divisions.

Risk Management in MGC GroupIn response to the various risks related to our businessactivities, MGC launched company-wide, comprehensive
risk management activities in 2006 with the establishment ofa Risk Management Committee. To disseminate knowledge
at the start of our activities, we conducted seminars for top
management and for employees at all workplaces on the
topics of the importance and practice of risk management.
Presently, we are reviewing measures for the highest
priority risks out of those risks listed in the identification andassessment of latent risks and formulating a business
continuity plan (BCP) when necessary. BCPs created byeach department are centrally managed by the secretariat of
the Risk Management Committee to ensure otherdepartments have access for use as reference.

25

MITSUBISHI GAS CHEMICAL COMPANY, INC.

In addition, with regard to risks at Group companies, theMGC department that supervises each company sharesinformation and responds when necessary. The risks with amajor impact on MGC are reviewed by the Risk
Management Committee.

Risk Management Framework
The four Companies conducting business activities and all
corporate divisions actively assess and prioritize risk
situations and devise risk reduction measures. The Risk
Management Committee, headed by the Chief Risk Officer,
provides direction and supervision for each department aswell as deliberates on problems that require a companywide response.
In terms of risks associated with project implementation,
we have developed an action plan to identify and evaluate
risks inherent in our operations or internal control systems.
We then take the appropriate measures. In the event that a
serious risk is identified, we set up a special group to copewith it according to internal rules.

President

Risk Management Committee
Chairperson: Chief Risk Officer
Members: Appointed heads of each corporate division
Others designated by the Committee Chairperson
Observers: Audit & Supervisory Board members

Secretariat(Division in charge of General Affairs)

Risk Related
Departments

Risk
Supervising
Departments

Risk Related
Departments

Among the risks that accompany our business activities,
we have identified earthquakes, toxic or hazardous
substance leaks, fire and explosion, and information leaks
as four that must be handled with priority on acompanywide basis. Our workplaces are also examining
countermeasures related to these priorities.
In FY 2016, we actively pursued major annual policy
points that included those listed below.
1. To confirm and ensure countermeasures for largescale natural disasters
2. To study what function the Risk Management
Committee should have
3. To continue subcommittee activities throughindependent setting of issues (including follow up
of risk management at Group companies)

causing injuries should a large-scale earthquake occur,
which were found as a result of the earthquake resistanceassessments conducted up until last year. Additionally, we
increased the plants covered in the examinations into
improving plant-wide seismic performance, including
manufacturing equipment, at the model plants which we
conducted in the previous fiscal year.
In FY 2016, we re-assessed the MGC Head Office,
MGC sites, and the main sites of Group companies for risk
related to various disasters that included not only
earthquakes but also eruptions and flooding with reference
to hazard maps published by local governments and otherresources to check on the implementation ofcountermeasures and verify their suitability.
Going forward, we will continue efforts to review theeffectiveness of measures through exercises and drills
related to disaster prevention and business continuity tostrengthen our preparation for a large-scale natural disaster.

Major Initiatives in Risk Management
Activities
Measures against large-scale natural disasters

Risk management promotion system

Risk
Supervising
Departments

Risk Management Committee’s Annual
Plan for FY 2016

Responding to individual
risks and crisis situations as
the department withresponsibility

Cooperating with the risk
supervising department, thisdepartment works towardrisk reduction.

MGC has deployed a company-wide safety confirmation
system to cope with a large-scale natural disaster, such as aNankai Trough earthquake or an earthquake directly below
Tokyo, which is the subject of the Cabinet Office’s Large-Scale
Earthquake Disaster Prevention and Mitigation Measures. In
addition, we have provided offices with emergency devices,such as wireless communication devices, so as to enablecommunication among workplaces even when regulartelephone communications become disabled or restricted.
Furthermore, as part of our Business Continuity Plan
(BCP), we conduct emergency training sessions using thesesystems and equipment each year, so that even if
headquarters becomes paralyzed due to a large-scale natural
disaster, each of our facilities, such as plants and research
centers, may continue supporting customers and maintaining
other services, supplementing the headquarters’ function.
We also are pushing forward initiatives for first
responder training at each workplace, as well as gatheringstocks of reserve supplies. To cite examples of otherinitiatives, we have planned for scenarios in which working
employees and guests visiting MGC face difficulties
returning to their homes after a disaster. We have stocked
food, drinking water, and other materials to allow persons in
the company to remain in offices for at least three days.
In FY 2015, MGC progressively carried out seismic
reinforcements, steadily moved forward with responses tobuildings which are old and have a greater potential of

Wireless communication device for
emergency use

Disaster reserve supplies

Measures against information leakages
Regarding the prevention of information leaks—one of the risk
issues we have targeted for priority treatment—we examinedways to manage technical information and other measures.
Going forward, in addition to issuing warnings andstrengthening our information management practices, wethink it is important to minimize information leakage risks
based on scenarios where secrets were leaked and toaddress the challenge of striking the right balance between
the prevention of information leakages and effectively sharing
this information within the company.

Risk management of group companies
As a risk management measure including Group companies,
we are carrying out requests for enhanced risk management,
while also exchanging information after investigating on eachcompany’s initiatives and practices. In FY 2016, we
promoted a review into upgrading risk management at Group
companies given the increasing need for internal control as acorporate group. As a result, we worked to further strengthen
PDCA cycles through mutual collaboration between Group
companies and the MGC department in charge thatsupervises the particular companies.
MITSUBISHI GAS CHEMICAL COMPANY, INC.

26

Responsible Care and MGC

Environment and Safety Management
We at MGC conduct business activities with sustainable development, building a recycling-based society,and safe operations as critical management issues, and promote Responsible Care (RC) throughout MGC
as the means to assure environmental and safety activities.

Message from the Director in Charge of Environment and Safety
This year, 2016, was the second year of our three-year RC Medium-Term Plan 2017. The key points of this plan
are to eradicate accidents by strengthening and enhancing risk assessment, prevent the reoccurrence of similar
accidents and occupational injuries, and to evaluate our contribution to preserving biodiversity and the

The MGC Group Policies on Environment and Safetycontribution by MGC products to the environment. This year, MGC was able to carry out our activities with zero
lost time injuries and zero serious injuries. Having overcome several incidents in the past, we have put effort into
preventing the occurrence of similar incidents, and we have progressed with strengthening risk assessment as

As an important member of the community, the MGC Group makes an effort to earn social trust byrecognizing our responsibility to contribute to the community, to secure the environment and safety of thecommunity, and to put our corporate activities in harmony with the protection of the global environment
under the principle of sustainable development.
Environmental and Safety Targets Zero Accidents, Zero Occupational Injuries, and Environmental Preservation■ Ensuring health and safety in our operations
Fundamental Policies■ Ensuring process safety through the improvement of self-maintenancetechnologies and on-site competency■ Reducing environmental impacts and contributing to sustainable social
development■ Ensuring safety in the handling, use, and disposal of chemical products■ Ensuring environmental conservation and safety in the logistics ofobtaining raw materials and storing and delivering our products■ Strengthening relationships with stakeholders■ Promoting the MGC Group’s environmental and safety activities■ Continuously improving environmental and safety management systems

stipulated in the medium-term plan. I feel these numbers show a certain amount of success for our efforts. You
could say that risk assessment is evidence of a shift regarding accident and disaster countermeasures in wider
society from “preventing reoccurrences” of disasters that have already happened to “preventive measures” fordisasters that could happen. Predicting and identifying disasters beyond the scope of normal reasoning
challenges the abilities of companies and work places. Alongside the continued promotion of Bridge self-led
safety activities at business sites in the medium-term plan, I also want to create safety guidelines that will lead tothe assessment and improvement of safety-related abilities at the work sites that make up MGC’s safety base.
emissions, and waste in accordance with the RC medium-term plan, and we are working to lighten ourenvironmental footprint. Through these everyday efforts, MGC received an extremely positive A- (A minus) rating from the CDP* following its 2016
climate change questionnaire. We will aim to increase our presence as “a superior and distinctive chemicals company” by steadily implementing theremaining year of the medium-term plan, and continue with initiatives to ensure safe and stable production.
* CDP: Acronym for the former Carbon Disclosure Project, a project by institutional investors to encourage companies to form climate change
strategies and disclose specific greenhouse gas discharge volumes.

Responsible Care Promotion System

MGC’s RC Medium-Term Plan 2017
* The descriptions of distribution safety, dialogue with society, and RC in general have been omitted.
RC CodeOccupational Health and Safety

RC Medium-Term Plan (2015–2017)
Working toward zero occupational injuries and accidents■	Enhance everyday safety activities (Kiken Yochi: hazard prediction; Hiyari Hatto: near-miss incident identification
activities; the 5Ss; etc.)■	Enhance communications.
■	Prevent the occurrence of similar occupational injuries and similar incidents.
■	Prevent occupational injuries in partner companies.
■	Perform risk assessments for handled chemicals.
■	Establish a framework for activities (Bridge) to eliminate accidents, as the core constituent of safety activities at plants.
■	Adopt and operate the safety competency assessment system of the Japan Society for Safety Engineering.

Process Safety and Disaster
Prevention• Construct frameworks enabling plants themselves to practice PDCA.
■	Strengthen and deepen risk assessment (RA).
• Establish activities composed of identification, reduction, and periodical review of risks.
■	Establish PDCA in education at business sites, including OJT.
■	Analysis and horizontal communication of case studies from other companies, past case studies, HH case studies, etc.
■	Enhance disaster readiness framework.
■	Enhance equipment management and improve self-maintenance technologies.
■	Formulate “MGC Safety Standards” applicable to the entire MGC Group.
■	Reduce energy consumption intensity to 85% or lower compared with FY 1990 levels.

• Implementation of energy saving measures and reduction of equipment problems.
■	Reduce greenhouse gas emissions intensity to 72% or lower compared with FY 1990 levels.

Environmental Preservation■	Reduce emissions of PRTR substances by 10% compared with FY 2014.
■	Maintain Zero Emissions of wastes (Zero Emissions at MGC: 0.3% or less final disposal of generated wastes, by weight).
■	Reduce generated waste volume by 10% compared with FY 2014.

Kenji Inamasa
Senior Managing Executive Officer

Regarding the environment, we have set numerical targets in areas such as energy, greenhouse gas

All of MGC’s divisions, at both the segment and corporate
level, follow fundamental environmental and safety principles
that promote Responsible Care. Every December, MGC
holds environment and safety meetings, which are chairedby the President and consist of all executive officers, division
heads, and plant managers. MGC also takes steps to makecontinuous improvements in the PDCA cycle based on the
RC medium-term plan targets and annual activity targets.

In 2016, we audited the status of 1) implementation of
measures to prevent recurrence of similar accidents andinjuries (including the prevention of falls), 2) partnercompanies’ initiatives to prevent occupational injuries, 3)
implementation of the safety competency assessment
system (plants), and 4) the establishment of risk
assessment related to chemical substances.
■ Audit period

August – October, 2016
■ Auditees

President
Director in charge of environment and safety

Environment and safety meeting
MGC Group Environment
and Safety Council
GHG task force

Administrative divisions
Companies

Business divisions
Planning and development divisions

Responsible Care audit

PlantsEnvironment andsafety departments

Audit of certified
high pressure gas plants

Researchlaboratories

Environment andsafety departments

Environment andsafety inspection

 plants, 3 laboratories (including Tokyo Techno Park),
5business divisions of 4 segments, Purchasing &Logistics Center■ Audit findings
Full conformity (32 cases) Non-conformity (no cases)
Improvement orders (6 cases) Comments (29 cases)■ Follow-up issues identified in previous year
We audited the handling of items identified atworkplaces in the previous year to confirm that proper
measures have been taken.

Corporate headquarters
Environment and safety division (Administrative office of RC)

Environment andsafety manager meeting■	Promote initiatives related to conservation of biodiversity.
■	Formulate methods for evaluation of environmentally friendly products.
■	Provide up-to-date safety information on handled chemical products and incorporate information into SDSs (safety

Chemical and Product Safety

data sheets).
■	Risk management for handled chemical products.
• Participate in JIPS.*• Risk management for new products.
■	Adapt to EU REACH regulation and other overseas regulations.

* JIPS: Japan Initiative of Product Stewardship, a voluntary initiative advanced by the Japan Chemical Industry Association (JCIA) for strengthening chemical
product management. JIPS is the Japanese version of the GPS (Global Product Strategy), international voluntary initiative for chemical product management.

27

MITSUBISHI GAS CHEMICAL COMPANY, INC.

RC Audits in 2016
The director in charge of environment and safety, together
with an auditing team, conducts the RC audit. This audit
assesses the implementation status of RC action plans at
each of our sites while deciding upon and auditing highimportance audit items for the year.

RC audits (Kashima Plant)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

28

Responsible Care and MGC

Results and Plans for RC Activities at MGC: Achieved

RC Medium-Term Plan
2015–2017

Occupational Healthand Safety

1. Enhance everyday safety activities (Kiken Yochi: hazard prediction; Hiyari
Hatto: near-miss incident identification activities; the 5Ss; etc.)
2. Enhance communications.
3. Prevent the occurrence of similar occupational injuries and similar
incidents.
4. Prevent occupational injuries in partner companies.
5. Perform risk assessments for handled chemicals.

Process Safety andDisaster Prevention

1. Establish a framework for activities (Bridge) to eliminate accidents.
2. Adopt and operate the safety competency assessment system of theJapan Society for Safety Engineering.
• Construct frameworks enabling plants themselves to practice PDCA.
3. Strengthen and deepen risk assessment.
•	Firmly establish activities composed of identification, reduction, andperiodical review of risks.
4. Establish PDCA in education at business sites, including in OJT.
5. Analyze and horizontally communicate case studies from othercompanies, past case studies, Hiyari Hatto (near-miss) case studies, etc.
6. Enhance our disaster readiness framework.
7. Enhance equipment management and improve self-maintenancetechnologies.
8. Formulate “MGC Safety Standards” applicable to the entire MGC Group.

Environmental
Preservation

Chemical and
Product Safety

1. Reduce energy consumption intensity to 85% or lower compared withFY 1990 levels. (Implementation of energy saving measures andreduction of equipment problems)
2. Reduce greenhouse gas emissions intensity to 72% or lower comparedwith FY 1990 levels.
3. Reduce emissions of PRTR substances by 10% compared with FY 2014.
4. Maintain Zero Emissions of wastes (Zero Emissions at MGC: 0.3% orless final disposal of generated wastes, by weight).
5. Reduce generated waste volume by 10% compared with FY 2014.
6. Promote initiatives related to conservation of biodiversity.
7. Formulate methods for evaluation of environmentally friendly products.

1. Provide safety information for chemical products handled (reflecting thelatest safety information in SDSs, etc.)
2. Risk management for handled chemical products.
• Participate in JIPS.
• Risk management for new products.
3. Adapt to EU REACH regulation and other overseas regulations.

2016 RC Action Plan

2016 Achievements

Assessment: Mostly achieved: Further efforts required2017 RC Action Plan

We will firmly establish the safety culture that was fostered through Accident Zero (AZ) activities,
and will share this culture with partner companies to eliminate industrial accidents.
1. Steadily continue daily safety activities (hazard prediction, Hiyari Hatto [near-miss] incident
identification activities, 5Ss, etc.) to prevent these from becoming routine and stagnant.
2. Enhance communication within business sites.
3. Analysis of past case studies, case studies from other companies, HH case studies, etc. andhorizontal communication of these to prevent the occurrence of similar incidents.
4. Activities to prevent occupational injuries at partner companies• Improve equipment, support education, conduct risk assessment in work and construction,enhancement communication, etc.
5. Entrench the implementation of surveys of risks and hazards to workers from chemical
substances (adapt to the Amendment of the Industrial Safety and Health Law).

1. Continued to energize daily safety activities (hazard prediction, Hiyari Hatto [near-miss] incident identification
activities, 5Ss, etc.) through participation in training sessions, holding presentations, campaigns, and other measures.
2. Enhanced communication by implementing regular patrols, holding exchange events both within and between
departments, on-site traffic supervision, encouraging greetings, and other measures.
3. Shared accident information both within the company and externally, and provided education by analyzing past
accidents and near misses.
4. Established committees, task forces, and the like with partner companies and practiced mutual interaction amongOccupational Health and Safety Committee members to enhance communication. Held campaigns and supported
partner companies in addition to daily activities.
5. Adjusted chemical substance risk assessment rules in response to an amendment to the Industrial Safety and Health
Act, and worked to promote risk assessment.

To achieve the targets of the RC Medium-Term Plan 2017, we will
firmly establish the safety culture that was fostered through the
AZ activity in which all employees took part, and will share thisculture with partner companies to eliminate occupational injuries.
1. Steadily continue daily safety activities (hazard prediction,
Hiyari Hatto [near-miss] incident identification activities, 5Ss,etc.) to prevent these from becoming routine and stagnant.
2. Enhance communication within business sites.
3. Analysis of past case studies, case studies from othercompanies, HH case studies, etc. and horizontal
communication of these to prevent the occurrence of similar
incidents.
4. Activities to prevent occupational injuries at partner companies• Improve equipment, support education, conduct risk
assessment in work and construction, enhancement
communication, etc.
5. Conduct surveys of risks and hazards to workers fromchemical substances (adapt to the Amendment of theIndustrial Safety and Health Law).

Work toward the strengthening of on-site competency and safety competency, and the eliminationof accidents and irregularities.
1. Establish the Bridge framework.
2. Adopt the safety competency assessment system of the Japan Safety Competency Center.
3. Enforce risk assessments for non-steady-state situations (emergencies, startup, shutdown,
operational errors, personnel changes, etc.)
4.	Steadily implement RC education and training according to education guidelines
Enhance education and training (improve operational capability and emergency response
capability)
5. Prevent the occurrence of similar accidents through analysis of our and other companies’ pastcase studies (use of the JCIA’s Safety and Accident Prevention Guidelines, etc.)
6. Enhance our disaster readiness framework.
7. Enhance equipment management and prepare for the renewal of high pressure gas
certification.
8. Start formulation and application of MGC Safety Standards (Head Office).

1. We are establishing the Bridge framework and each task force is engaged in activities.
2. Only a few plants still require the introduction of the safety competency assessment system. We have begun
initiatives to counter weak spots identified through assessments at plants where the system has already been
introduced.
3. In accordance with the Safety and Accident Prevention Guidelines, we have completed non-steady-state risk
assessment for risks similar to the three major accidents. Furthermore, we are advancing non-steady-state situation
risk assessments to further enhance comprehensiveness. We are also introducing HAZOP*1 as a risk assessment
method.
4. We are providing education in line with the education plan and practicing the PDCA cycle. We are enhancing
education and training by introducing driving simulators to improve driving skills and using external training courses,
such as Sanyo Personnel Development courses and Keiyo Coastal Industrial Complex Personnel Development
courses.
5. We carried out surveys of understanding concerning troubles*2, analysis of trouble diaries, checks of theeffectiveness of past measures, analysis and communication of major Hiyari Hatto (near-miss) incidents, and the like,
and worked to communicate these horizontally across the company.
6. We performed drills simulating what we call a “medium-scale” disaster, where multiple locations of a single site haveemergency situations simultaneously.
7. We are conducting equipment management according to MOSMS*3 priority.
8. We are creating MGC Safety Standards.

Work toward the strengthening of on-site competency and safetycompetency, and the elimination of accidents and irregularities.
1. Finish establishing the Bridge framework and continue
operations under said framework.
2. Adopt the safety competency assessment system of theJapan Safety Competency Center.
3. Enforce risk assessments for non-steady-state situations(emergencies, startup, shutdown, operational errors,
personnel changes, etc.)
4. Steadily implement RC education and training according to
education guidelines
Enhance education and training (improve operational
capability and emergency response capability)
5. Prevent the occurrence of similar accidents through analysis
of our and other companies’ past case studies (use of the
JCIA’s Safety and Accident Prevention Guidelines, etc.)
6. Enhance our disaster readiness framework.
7. Enhance facility management.
8. Formulate and start operation of MGC Safety Standards.

Undertake social contribution through the environment, while continuing to reduce environmental
impacts.
1., 2. Further improve our energy consumption intensity and greenhouse gas emissions intensity.
3. Continue notifications in accordance with the PRTR Law and reduce emissions
4., 5. Continue Zero Emissions initiatives.
6. Encourage initiatives toward the preservation of biodiversity.
7. Consider methods for evaluation of environmentally friendly products.

1., 2.	As the result of initiatives to reduce energy consumption and GHG emissions, the Plant Manufacturing Division
was able to reduce energy consumption by 3% and GHG emissions by 7% in FY 2016. Energy consumption
intensity improved 0.4 points on the previous year to 91% of 1990 levels, while GHG emission intensity improved
0.5 points to 74% of 1990 levels.
	We implemented around 50 energy saving measures, including changing the source of energy for compressors,and changing heating methods.
3. The PRTR substance emissions volume for MGC alone in FY 2016 was 256 tons, a reduction of approximately 14%
from FY 2014.
4. The Zero Emissions Rate for MGC alone in FY 2016 was 1.34%, meaning we have not achieved the Zero Emissions
since FY 2014.
Final disposal increased in FY 2016 due to a one-off surplus soil disposal at Mizushima Plant, and MGC as a whole
failed to achieve Zero Emissions criteria.
5. Waste generated by MGC alone in FY 2016 amounted to about 78,600 tons, a 3% reduction on FY 2014.
6. We carried out activities such as planting and maintaining trees at plants and participating in cleaning activities in theareas surrounding these plants.
7. In FY 2016, seven MGC Group products and businesses that contribute to reducing environmental impact wereselected as “MGC Group Eco-friendly Products” and we designed an introductory panel for them.

Undertake social contribution through the environment, while
continuing to reduce environmental impacts.
1., 2.	Improve our energy consumption intensity andgreenhouse gas emissions intensity.
3. Continue notifications in accordance with the PRTR Law andreduction of emissions.
4., 5. Continue measures to reduce wastes.
6. Promote initiatives toward the preservation of biodiversity.
7. Publicly announce the eco-friendly products, select second
round of products and create an introductory panel
8. Identify apparatus with high-concentrations of PCB

We will carry out risk management of products.
1. Provide up-to-date information through SDSs.
2. Risk management of handled chemical products.
•	Participate in the JIPS initiative of the JCIA and creation of Safety Summaries.
•	Promote risk assessment for new products.
3. Adapt to overseas regulation.
•	Adapt to EU REACH regulation.
•	Collect information regarding regulations in non-EU countries.

1.	We created a list of SDSs that needed reviewing due to an amendment to the Industrial Safety and Health Act andare carrying out these reviews (248 of 320 reviews completed).
We obtained the latest SDSs for chemical substances handled such as raw materials.
2.	We submitted one Safety Summary.
Internal safety studies for new products conducted in 2016 consisted of 3 acute toxicity studies, 7 Ames
mutagenicity studies, 6 primary skin irritation studies, and 1 pathogenicity study, for 17 in total (compared with arespective 11, 12, 14, and 1 studies, for a total of 28, in 2015).
3. In preparation for REACH registration, we created the analysis reports for 6 substances scheduled for registration in 2018
(analysis reports for 20 substances have been created in total).
With regard to non-EU foreign regulations, we provided by email, information obtained from industry associations, etc.
4. Korea REACH
We carried out a survey of substances to be registered in September, and started registration preparations from
October.

We will carry out risk management of products.
1. Provide up-to-date information through SDSs.
2. Manage risks in handled chemical products.
•	Participate in the JIPS initiative of the JCIA and creation of
Safety Summaries.
•	Promote risk assessment for new products.
3. Adapt to foreign regulations.
•	Adapt to EU REACH regulation.
•	Collect information regarding regulations in non-EU
countries.

*1 HAZOP: Abbreviation of Hazard and Operability Studies. A method of conducting risk assessment on processes.
*2	Surveys of understanding concerning troubles: A tool for educating and preventing negligence that uses troubles that have occurred in the past to survey
an individual’s understanding of safety.
*3	MOSMS: Maintenance Optimum Strategic Management System. A plan-led mechanism for facility maintenance, advocated by the Japan Institute of Plant
Maintenance.

29

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

30

Responsible Care and MGC

Occupational Health and Safety, Process Safety,
and Disaster Prevention
MGC’s top priority is to ensure safety, and we have a proactive approach aimed at zero accidents and zero
occupational injuries.

Safety Philosophy

Process Safety and Disaster Prevention
Activities

Ensuring safety is the top priority of our business activity.
Safety is the basis of our business activity and ensuring safety is our duty to society.

Occupational Health and Safety Initiatives
To achieve our objective of no occupational injuries, ourworkplaces continuously engage in everyday safety
activities such as 5S activities, hazard prediction, andproposals to address Hiyari Hatto (near-miss) incidents.
Our worksites also advance various safety activities suchas safety related education and drills, and occupational
health and safety risk assessments.

Hiyari Hatto (near-miss) activity report(Yokkaichi Plant)

5S patrol(Saga Plant)

Lost time injury frequency rate*1
2012

2013

2014

2015

2016

MGC

0.80

0

0

0.27

0

Chemical industry

0.85

0.82

0.76

0.81

0.88

Manufacturing industry

1.00

0.94

1.06

1.06

1.15

*1 Frequency rate: Number of occupational injury casualties per one
million working hours

Lost time injury severity rate*2
2012

2013

2014

2015

2016

MGC

0.03

0

0

0

0

Chemical industry

0.12

0.12

0.17

0.04

0.03

Manufacturing industry

0.10

0.10

0.09

0.06

0.07

To prevent the occurrence of accidents and injuries, it isimportant to continue stable operation by ensuring safety of
production processes and soundness of equipment. In
each plant, we utilize equipment maintenance (M3) andother systems to conduct checks and make renewal plans,
and perform checks, repairs, and renewals with priority set
according to risk and the importance of facilities.
We are also using case studies of past accidents toverify the effectiveness of countermeasures and engaging ininitiatives aimed at preventing the occurrence of similar
accidents. We are also carrying out facility risk assessmentsthat simulate non-steady-state operations, such as
emergency shutdowns.
Furthermore, in addition to converting standards
manuals to “Know Why,” we are also introducing operation
simulation training.

Certified high pressure gas plants
Niigata Plant and Mizushima Plant, which are high pressure gas
safety management code certified plants, are audited by the
Director in charge of environment and safety (Process Safety
Management General Controller) under the company rules for“High pressure gas certification safety management”. The aim of
our audits is to objectively evaluate the high pressure gas safety
management system and the certified inspection management
framework to ensure that they are working effectively.
Certified process safety management system for high pressure gas
President
Environment and safety meeting (Safety Measures Headquarters)
Director in charge of environment and safety (Process safety management general controller)
Environment and safety division at the Head Office (Administrative action for certified self-maintenance)
Audits of certified plants
Audit of supervisory organization
for certified facility inspection

Audit of process safety management system
Certified plant

Supervisory organization for certified
facility inspection

Plan
Act Safety management system Do
Check

Chief supervisor(appointed by the President)*2 Severity rate: Number of lost working days per 1,000 working hours

Appropriate certified facility inspection
Confirmation of status of implementation

Certified facility
inspection
department

Management departments· Process safety management department· Operational management department· Facility management department

Preventing Occupational Injuries at Partner
Companies
Education using younger
employees as instructors(Niigata Research Laboratory)

Education on handling high-pressure
gas canisters(Hiratsuka Research Laboratory)

Safety PerformanceWith no serious accidents last year, we have managed tomaintain an excellent track record of zero occupational
injuries for over two years running. Although there were no
lost time injuries at MGC, there were five occurrences atpartner companies.
MGC realizes that we have a serious responsibility toensure the safety of people at our partner companies andwe will provide even further support and assistance inmultiple areas going forward.

We share information on occupational injuries, perform risk
assessments, provide safety education, and carry out joint
disaster reduction training aimed at industrial accident
prevention in partner companies, while we work to enhance
our cooperative frameworks. In some plants, we also
conduct audits and safety inspections of partner companies.

Protective tool training for partnercompanies(Mizushima Plant)

Danger experience training forpartner companies(Niigata Plant)

Safety Record (MGC and partner companies)
MGC lost time
(Incidents)
40

MGC non-lost time

Partner lost time

Regular maintenance patrol(Mizushima Plant)

Lecture by former employees on
improving safety competency(Kashima Plant)

HAZOP training(Kashima Plant)

Operation simulation training(Niigata Plant)

Responding to emergencies
In preparation for accidents, we establish a self disasterreadiness framework at each business site and carryout various disaster reduction drills according to sites’
annual plans.

25
20

Partner non-lost time

15
10

12

15

5
3

5

9
2

5
0

2008

31

Zero injuries for 860 days

4

2009

5
3
4
1

2010

9

9

7

3
6
3

5
2

2011

2012

Zero injuries continuing

6
1
9
0

2013

MITSUBISHI GAS CHEMICAL COMPANY, INC.

3
6
2
0

2014

6
2
4
1

2015

6
4
3
0

2016 (Year)

Following on from six years of Accident Zero (AZ) activities,
we are now in the third year of Bridge activities and selfled safety activities are being carried out under theframeworks established at each plant.
Assessments using the Japan Society for Safety
Engineering’s safety competency assessment system areprogressing smoothly, and once weak spots are identified,improvements are being made. We are also holding
company-wide improvement presentation meetings where
excellent reports are commended, and promoted to share
information on environment and safety, such as casestudies of successful improvements.
Safety Competency Assessment Results (Mizushima Plant)
Assessment item
1: Process safety management
2: Plant safety base information
3: Safe design
43
16
4: Operation
3
5: Maintenance15
42
6: Construction
7: Disaster and accident prediction and response1
8: Process risk assessment
1450
9: Change management
10: Education
11: Organizational leadership
6
13
12: Proactive participation
13: Asset management
14: Motivation
12
7
15: Transmission of learning
8
11
16: Crisis recognition
9
10
17: Mutual understanding
The level required for a certified high-pressure gas plant is three points Red items: Areas that need strengthening

1-17: Assessment item number
17

35
30

Accident Elimination (Bridge) Activities

KY (hazard prediction) training forpartner companies(Niigata Plant)

Emergency drill with partnercompanies(Yokkaichi Plant)

Fire hose drill(Tokyo Techno Park)

Disaster preparedness drill(Yamakita Plant)

0-5: Assessment score

5

1

2

MITSUBISHI GAS CHEMICAL COMPANY, INC.

32

Responsible Care and MGC

Environmental Impacts Accompanying Business Activities(Domestic MGC Group)
Member companies of the MGC Group Environment and Safety Council in Japan make efforts to contributeto the reduction of environmental impacts and the sustainable development of society, in accordance with
the MGC Group’s fundamental environmental and safety principles.
The table below displays the environmental impact of the MGC Group’s operations in Japan in FY 2016.

Total for the Domestic MGC Group*1
FY 2016

FY 2015*2

FY 2016

Sites tabulated: 66

Sites tabulated: 66

Sites tabulated: 13

Sites tabulated: 13

INPUTS

Units

1,000 kL

2015

2016

567

INPUTS

548

Water usage

Overseas MGC Group Companies*3

2015

2016

1,000 kL

472

455

Tap water

1,000 m3

397

413

Industrial water

1,000 m3

19,022

18,975Groundwater

1,000 m3

452

427

Water usage

9,131

9,978

2015*22016

Sites tabulated: 16*4

Sites tabulated: 15*4

Water usage

Tap water

1,000 m3

1,070

646

Industrial water

1,000 m3

22,06022,235Groundwater

1,000 m3

River water

1,000 m3

9,131

9,978

River water

1,000 m3

Others1,000 m3

1,240

1,154

Others1,000 m3

898

1,018

1,000 m3

34,86035,2371,000 m3

29,90030,811

Total water intake

OUTPUTS

Units

1,358

2015

1,224

Greenhouse gas emissions(CO2 equivalent)

Total water intake

2016

OUTPUTS

Emissions to atmosphere

Units

2015

2016

1,000 tons

1,280

1,191

SOx

tons

72

71

NOx

tons

628

Soot and dust emissions

tons

19

Greenhouse gas emissions(CO2 equivalent)

INPUTS

Units

2015

2016

1,000 kL

260

249

Tap water

1,000 m3

317

302

Industrial water

1,000 m3

4,757

5,013

Groundwater

1,000 m3

10

9River water

1,000 m300

Others1,000 m3

2,117

2,315

1,000 m3

7,200

7,638

Units

2015

2016

1,000 tons

2,430

2,277

1,000 m3

4,115

3,922

Amount generated

tons

10,1909,883

Amount recycled (including amount sold)

tons

7,236

7,779

Final disposal

tons

1,039

1,132

Energy consumption(crude oil equivalent)

Total water intake

Emissions to atmosphere1,000 tons

1,052

975

SOx

tons

54

58

Emissions to atmosphere

536

NOx

tons

576

488

24

Soot and dust emissions

tons

8

13

Greenhouse gas emissions(CO2 equivalent)

Released to water area

OUTPUTS

Drainage volume

1,000 m3

30,92832,321

Drainage volume

1,000 m3

27,58528,852

COD emissions

tons

196

234

COD emissions

tons

174

182

Total nitrogen emissions

tons

282

207

Total nitrogen emissions

tons

263

191

Total phosphorus emissions

tons

46

69

Total phosphorus emissions

tons

45

68

Generation of waste

Drainage volume
Generation of waste

Notified substances under PRTR (TRI) Law

Amount generated

tons

126,358

120,311Amount generated

tons

78,49678,607

Emissions (air)

tons

93

108

Amount recycled (including amount sold)tons

37,88442,208Amount recycled (including amount sold)tons

20,67520,909Emissions (water)

tons

27

43

Transfer to off-site

tons

34,18826,641

Transfer to off-site

tons

8,472

8,305

Emissions (soil)

tons

0

0

Final disposal

tons

1,968

2,239

Final disposal

tons

700

1,054

Total amount emitted

tons

120

151

Total amount transferred

tons

797

910

Notified substances under PRTR Law

Notified substances under PRTR Law

Emissions (air)

tons

1,242

827

Emissions (air)

tons

257

241

Emissions (water)

tons

20

15

Emissions (water)

tons

20

15

Emissions (soil)

tons

0

0

Emissions (soil)

tons

0

0

Total amount emitted

tons

1,262

842

Total amount emitted

tons

278

256

Total amount transferred

tons

628

1,100

Total amount transferred

tons

237

352

*1 The total for the domestic MGC Group is the sum of environmental impact data for the MGC Group’s main domestic manufacturing and processing
businesses (member companies of the MGC Group Environment and Safety Council; see pages 45 to 48) and MGC itself (production sites such as plants
and non-production sites such as laboratories and sales offices, with MGC training centers and company-owned recreation facilities together treated as theequivalent of one site. Furthermore, aggregation of MGC Ageless Co., Ltd., is planned from FY 2017 results onwards).
The environmental impact values shown in the table for the Group as a whole capture over 90% of the scope of consolidated accounting for the MGC Groupin Japan.
*2 FY 2015 data may appear differently in CSR Report 2016 because it has been revised.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Endorsing the aims of the Keidanren (Japan Business
Federation) Declaration of Biodiversity, MGC signed on asa promotional partner of the Declaration in 2009.
In 2014, MGC became a member of the Keidanren
Nature Conservation Committee with the aim of engaging
in activities to protect the natural environment andconserve biodiversity.
The chemical industry handles a large volume andvariety of chemical substances and among these aremany which may have a severe impact on human healthand ecosystems if unintentionally released into nature.
Carrying out its business activities with a keenawareness of this, MGC will strive to maintain a richnatural environment and preserve biodiversity throughmeasures such as chemical management founded on
responsible care, environmental preservation, conservationof resources and energy. Furthermore, we will contributeto sustainable development through the development oftechnology that can be assessed as eco-friendly products,
and the proliferation of these products.
We are undertaking activities related to biodiversity
through close-at-hand activities at each plant, such as
flower campaigns within the plants and maintenance offorest preserves in surrounding areas.

Released to water area

Released to water area

Generation of waste

33(MGC Alone)(Overseas MGC Group)

Units

Energy consumption(crude oil equivalent)Preservation of Biodiversity

MGC surveys and compiles environmental impact data forgroup companies sited overseas that engage inmanufacturing.

MGC Alone

FY 2015*2

Energy consumption(crude oil equivalent)

Environmental Impacts
Accompanying Business
Activities*3 Targeted companies: Ageless (Thailand) Co., Ltd.; Korea Engineering
Plastics Co., Ltd.; MGC Advanced Polymers, Inc.; MGC Electrotechno(Thailand) Co., Ltd.; MGC Pure Chemicals America, Inc.; MGC Pure
Chemicals Taiwan, Inc.; Mitsubishi Gas Chemical Engineering-Plastics(Shanghai) Co., Ltd.; MGC Pure Chemicals Singapore Pte. Ltd.; P.T.
Peroksida Indonesia Pratama; Samyoung Pure Chemicals Co., Ltd.;
Suzhou MGC Suhua Peroxide Co., Ltd.; Te an Ling Tian (Nanjing) Fine
Chemical Co., Ltd. (excluded in 2016); Thai Polyacetal Co., Ltd.; Thai
Polycarbonate Co., Ltd.
*4 As some data is not collected for some companies, data may not be
available for all locations.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

34

Responsible Care and MGC

Initiatives for the Prevention of Global Warming (MGC Alone)

MGC Group Eco-friendly Products Becoming Widespread

MGC is aware of the major risks to its business associated with global warming and, is making efforts toprevent it.

MGC products can be useful in reducing environmental impact in various areas of society.
These kinds of products are being designated by MGC as “MGC Group Eco-friendly Products.”

GHG emissions and GHG emissions rate

Greenhouse Gas Reduction Targets

GHG emissions

The Plant Manufacturing Division accounts for 97% of
MGC greenhouse gas (GHG) emissions and is engaged ininitiatives to reduce these emissions. It has set thefollowing targets.
Energy consumption intensity*1:
Reduce to 85% or lower compared with FY 1990 levels by
FY 2017 (89.5% or lower compared with FY 2014 levels)
GHG emissions intensity*2:
Reduce to 72% or lower compared with FY 1990 levels by
FY 2017 (88.7% or lower compared with FY 2014 levels)*1 Energy consumption intensity: The amount of energy consumption
per unit of production volume*2 Greenhouse gas emissions intensity: The amount of GHG emissions
per unit of production volume

GHG emissions in FY 2016
Energy consumption(1,000 kL crude oil
equivalent)Greenhouse gas
emissions (1,000 tons
CO2 equivalent)

Plant Manufacturing Division

449.3

963.5

Transportation Sector (shipper)

10.7

28.4

Office Area

6.0

11.7

466.0

1003.6

Business activities overall

GHG emissions rate

Prolonged preservation of

Oxygen absorbers (AGELESS) food freshness and taste

Target rate for FY 2017

GHG emissions(1,000 tons CO2 equivalent)

GHG emissions rate
(FY 1990 = 1)

1.00

2,500

1.0

2,000

0.83 0.87 0.82 0.83 0.84 0.81
0.79 0.78 0.76 0.81 0.79
0.74

0.8

1,500

1,562 1,560 1,490

0.6

1,184

1,334

1,166 1,275

1,303 1,330 1,268 1,184

1,040 964

0.4

500

0.2

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0.0
(FY)

1,000

1990

Reduction of food waste
Disposal of food due to mold, discoloration,
Environmental and change in taste is reduced. Furthermore,advantages maintaining deliciousness and freshness forlong periods can reduce CO2 emissions in
distribution by reducing the frequency of
production and transport.

Initiatives in the Transportation Sector
In our transportation sector, we have undertaken energy
saving initiatives focused on enlarging the volume that canbe transported in a single shipment, and making a modal
shift to environmentally-friendly transportation methods
such as rail.
As an example of this modal shift, in FY 2016 wereduced energy consumption by 17% and GHG emissions
by 10% by shifting from truck transportation to railtransportation.

Mold colony generation test

CO2 emissions
By truck

Initiatives in Plant Manufacturing Division
In FY 2016, we implemented around 50 measures
including changing the source of energy for ourcompressors, changing heating methods, reviewing
refining methods, strengthening heat recovery, andefficiently using by-products as fuel. The energy conservedby these measures is equivalent to around 6,000 kL ofcrude oil and the reduction in GHG emissions was
equivalent to around 6,000 tons of CO2. Total cost
reductions were equivalent to about 600 million yen.
Looking ahead, we are planning measures including
the adoption of new-model co-generation systems, andreviews of refining methods.

By ship

CO2 emissions(1,000 tons)
1.000
40
0.980
30
20
10

2%
30%

68%

By rail

CO2 emissions rate
(FY 2006 = 1)
0.990

0.969

68%

0.926

0.940

0.942

0.951

1.0

0.965
0.928

0.9

2%
30%

0.945

2%
33%

65%

3%
37%

61%

3%
33%

65%

2%
34%

2%

2%

2%

35%

35%

35%

2%

2%

38%

39% 0.8

2007

2008

2009

2010

AGELESS
Nitrogen gas
flushing(at least 99.9%)
In air

0.7
64%

63%

63%

63%

60%

2011

2012

2013

2014

2015

0

59%

0
2006

No mold colonies
form even after
20 days.

CO2 emissions rate

2016

0.6
(FY)

2

4

6

8

10

12

14

16

18

20 days

Test method: Inoculate castella sponge cake with blue mold and compare effect on
growth suppression of AGELESS pack and nitrogen gas flushing packaging

Oxygen absorption mechanism

Inside sealed bag

Effect of AGELESSThe main component inWith AGELESSAGELESS is speciallyprocessed iron powder.

OxygenEnergy consumption and consumption rate
Energy consumption

Energy consumption rate

Energy consumption(1,000 kL as crude oil equivalent)
1,000

1.00

400

1.0

569 562 577 531
550 556 531
491 465 449
493 533

0.6

430

0.4

200

0.2

0

0.0
(FY)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MITSUBISHI GAS CHEMICAL COMPANY, INC.

when rusting absorbs
oxygen in a sealed bag

Absorption

0.8

1990

35

Absorption

Energy consumption rate
(FY 1990 = 1)

800
600

Applying iron’s functionof bonding with oxygen

Target rate for FY 20170.95 1.00 0.95 0.95 0.92 0.91 0.95 0.95 0.91

0.87 0.89 0.89

NitrogenWithout AGELESS

and prevents adverse
effects on products dueto oxygen such as

AGELESSoxidation.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

36

Responsible Care and MGC
MGC Group Eco-friendly Products Becoming Widespread

Meta-xylenediamine (MXDA)

An environmentally- and health-friendly paint component

Reduces organic solvent emissions to zero!
Used as a health- and environmentally-friendly
Environmental water-based epoxy coating, it reduces
advantages emissions of organic solvents that cause
atmospheric pollution to zero.
Using meta-xylenediamine allows a 20%
reduction in the volume of epoxy hardener
used, so it also helps to conserve oil resources.

Comparison of hardener content in formula

20% cut

Metaxylenediamine
Ordinary
curing agent

Ultra-violet
light Oxygen Moisture

Salt

Paint
(Top coat)

Steel material(metal)A clean fuel

Reduced NOx emissions and zero SOx
and PM emissions during combustion

A resin that contributes significantly to reducing weight and increasing fueleconomy of automobiles

Zero atmospheric pollutant emissions

INPUT(NOx, SOx, and particulates)
Because it generates electricity through a chemical

OUTPUT

MethanolEnvironmental reaction, it is quiet and does not pollute the air. It canadvantages provide electricity continuously for at least several days

*Refers to CO2 emissions over the life of a power station.
10 times

Door pad
Bumper

DMFC power generation mechanism

20 timesSeat
30 times

40 timesHigh

Geothermal power is a renewable energy utilizing
Environmental subterranean steam that can generate power in aadvantages stable manner that is not dependent on changes in

Front duct

Generator

The generator
Injection
uses steam to
wellturn the turbine.

Production
well(as foamed PP)

ToolboxAquifer

Rear bumper
Rear seat*Products of JSP, a member of the MGC Group.

37

MITSUBISHI GAS CHEMICAL COMPANY, INC.

An environmentally-friendly bleaching agent

Hydrogen peroxide is a chemical that has been used
Environmental as a bleaching agent and an oxidizer for many years.
advantages As it does not create harmful by-products forming

Tibia padFloor spacer

Injectionwell
Hot water andwater returnto the stratum
via the injection
well.

Magma

water and oxygen even when it decomposes, it is indemand in diverse areas as an environmentally-friendly
chemical.

Floor duct

Cooling
tower

Door pad

MGC Group
global share

60%

The separator separates the hot water andsteam that are drawn up.

The production
well draws up
subterranean
hot water andsteam.

the seasons and weather. It reduces CO2 emissions
during generation to a great extent.

Hydrogen peroxide

Sun visor Headrest
Front
bumper

Air+CO2

The DMFC uses methanol and air to make electricity through achemical reaction. Electricity can be produced for as long as the
supply of methanol is maintained.

Expansion ratio

Automotive parts inwhich foamed
plastic is used

Water

Power
generation

Air

Separator

Low

Toolbox

DME can be used as a clean
diesel fuel.

Mechanism of geothermal power generation
Lifecycle CO2 emissions* Less than 1/50
Compared with Coal fired power generation

Applications vary according to expansion ratio

Tibia pad*Warming while also supplying CO2
required for growth.

Geothermal power generation Renewable clean energy

20-30% reduction in weight Rear seat example (comparison with previous products)
Foamed plastic, which is very lightweight andEnvironmental rigid, is widely used in automotive parts, playing
advantages a role in improving fuel economy and reducing
CO2. In addition, it is an environmentally-friendly
material that can be recycled.

DME is being investigated forcommercialization as a fuel for boilers
in plastic greenhouses and a plant
growth auxiliary*.

A quiet clean generator

and is becoming increasingly common as an
emergency power source.

Foamed plastic

DME is used as a propellant in sprays
replacing CFCs.

MGC makes methanol and DME from natural gas that isEnvironmental produced as a by-product during the extraction of oil, so it
advantages has advantages in terms of efficient utilization of resources
and the environment. Moreover, its practical use is being
promoted due to the fact that it is a clean fuel that avoids
generating the sulfur oxide (SOx) and particulate matter(PM) emitted when burning light oil and kerosene.

Direct methanol fuel cell (DMFC)
Meta-xylenediamine(MXDA) is used as a
coating raw material
to prevent thecauses of rust.

Epoxy resin
paint(Undercoat)

Dimethyl ether (DME)

Pulping

Wood chips

InkremovalProcessing

Pulp before
bleaching Bleaching

Paper
goods
Bleached pulp

Waste paper

Chlorinefree
bleachingprocess

Waste paper pulp

Pulp before
bleaching

MGC’s hydrogen
peroxide is used as a
bleaching agent for
paper.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

38

Responsible Care and MGC

Reducing Chemical Substance Emissions (MGC Group)

Reduction of Waste (MGC Group)

Each MGC Group company assesses and issues notifications on substances subject to the chemical
substance emission notification system of the country in which it is based (PRTR in Japan), while working to
reduce the amounts released and transferred.

Each MGC Group company is striving to reduce waste by promoting the 3Rs of waste (Reduce, Reuse,
Recycle), and to undertake the proper disposal of wastes in accordance with law.

Substance emissions and transfer intensity (in accordancewith the PRTR Law) over consolidated net sales

Substances Subject to Notification under
the PRTR Law
Many countries have systems that require notifications
regarding chemical substance emission in a similar way toJapan’s PRTR Law (TRI in the US, etc.) We haveaggregated substance emissions reported by overseas
group companies that also fall under Japan’s PRTR
system into our totals.
Our annual emission of these substances totaled 993
tons, a decrease of about 28% from 1,382 tons in theprevious year. The primary reason for the reduction was
the plan undertaken by JSP Corporation, a Group
company, to replace a PRTR-targeted blowing agent usedin the manufacture of a portion of its products with a
non-PRTR-targeted blowing agent.
Substance emissions (in accordance with the PRTR Law)
MGC alone

Domestic MGC Group

Overseas MGC Group

Number of notified substances in Japan
Amount (tons)
2,000
1,800

89

86

1,600
1,400

90

89

86

90

90
80

136

61

96

Number of substances
100

98

70

1,200

60

120

1,000

50

1,212

1,130

800

151

1,173

1,266

985

600

586

400
200

339

0

2011

312

307
2012

2013

298
2014

278
2015

256
2016

40

10
0
(FY)

Amount (tons)
2,500

2,000

910
328

1,000

188

633

484

500

551

447

0

2011

39

2012

281

251

664

505

235
2013

797
748

363

MITSUBISHI GAS CHEMICAL COMPANY, INC.

391

237
2015

3.0
2.0

3.38

3.21

2.96

3.34

2.33
2.39

2.23

2.21

2.11

2.40

3.68
1.78

1.0
0

2010

2011

2012

2013

2014

2015

2016

Amount of waste generated
MGC alone

PRTR Law Substances with High Levels ofEmissions (Domestic MGC Group)
Among the substances registered under the PRTR Law,
those listed below are emitted by the domestic MGC
Group in amounts of 10 tons or more.
■ Chloromethane* (534 tons)■ 1,2,4-Trimethylbenzene (75 tons)■ Dichloromethane (58 tons)■ Xylene (18 tons)■ Toluene (13 tons)* There was an error in the figure listed for chloromethane in CSR Report2016. The correct figure was 923 tons

Domestic MGC Group

2016

6,000
4,000

1,138
1,252
1,411
130

2,000
0

2011

16

2.7
45.3

100

90.7

10.0

83.6

122

84

1,086

2013

2014

1,132

1,039
1,255
700
2015

1,185
1,054
(FY)

2016

MGC alone

13.55
8.70

8

10.2

58.9

86.0

84.9

2,383

13.63

6.18

9.9

47.8

81.2

41.7

78.5

5.04

4
0

50

5,278

12

9.5

76.4

5,179

2012

200

2.7

2,035

1,273

(kg/million yen)

(1,000 tons)

150

Overseas MGC Group8,000

MGC Group total (including overseas)
Overseas MGC Group

78.6

0.37

0.33

0.20

2011

2012

2013

2.82

2.25

2014

2015

6.06
3.52
2016

(FY)

0

2011

2012

2013

2014

2015

(FY)

2016

Zero Emissions (MGC Alone)

Recycled amount
MGC alone

Domestic MGC Group

Overseas MGC Group

Final disposal volume and Zero Emissions Rate (MGC alone)(1,000 tons)

Final disposal volume

60
50

Japan Chemical Industry Association
PRTR-Targeted Substances (MGC Alone)

Domestic MGC Group(tons)

Final disposal intensity compared to net sales

(FY)

0.5

40

19.4

30

5.9

0.7

20.5

15.8

7.2

7.2

7.8

19.2

17.2

21.3

(%)

1,200

1.6

900

1.2

0.89

25.0

22.7

21.0

20.7

0.8

1,086

20.9

0

300

2011

1.34

600

25.7

10

Zero Emissions Rate

(tons)

1.34

20

2012

2013

2014

2015

2016

(FY)

130

1,054
700

122

0.14

0.14

2011

2012

0.4

0.10
84

0

2013

2014

2015

2016

0
(FY)

* Past data regarding waste has been reviewed and corrected.

Input and Output Related to Production in FY 2016 (Domestic MGC Group)

Input

Output* Past emissions and transfer figures have been reviewed and corrected.

390
2014

3.46

The Japan Chemical Industry Association (JCIA), of which
MGC is a member, has specified 328 Class I DesignatedChemical Substances stipulated by the PRTR Law, and a
JCIA specified 90 substance plus 1 substance group as
voluntary PRTR-targeted substances (with only
atmospheric emissions calculated for the JCIA-specified
substances). The entire chemical industry is working
toward the reduction of emissions of these PRTR
substances.
The amount of the substances emitted by MGC in FY
2016 totaled 75 substances and 336 tons, a decrease ofabout 9% from 371 tons in the previous fiscal year.

Overseas MGC Group

1,500

4.03

30

Substance transfers (in accordance with the PRTR Law)
Domestic MGC Group

5.0
4.0

MGC alone

FY 2016 waste amounts totaled about 130,200 tons
Group-wide, a decrease of about 6,300 tons, or about
5%, from the previous year.
Final disposal for the Group totaled 3,370 tons, anincrease of about 400 tons from the previous year. The
increase in final disposal amounts since FY 2014 for MGC
alone was due to one-off increases associated with review
of business and surplus soil disposal.

Transfer intensity

20

Overseas totals for each calendar year have been added to thecorresponding fiscal year on the graph.

MGC alone

Emissions intensity
Intensity (kg/million yen)

Final disposal amount

Waste Reduction Achievement

Products

1,490,000t

Raw materials

840,000t

CO2 emissions

1,190,000t-CO2

Energy (crude oil equivalent)

548,000 kL

Wastewater

32,000,000m3

Water intake

35,000,000m3

Waste transferred off-site

27,000t

Waste recycled

42,000t(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

40

Responsible Care and MGC

Conservation of Water and Atmospheric Environments

Environmental Accounting (MGC Alone)(MGC Group)
To preserve the soundness of the water and air resources so vital to the Earth and to use them sustainably,
MCG Group companies monitor water intake and wastewater volumes, as well as the volume of substances
within this wastewater that impact the environment.

Through environmental accounting in accordance with guidelines by the Ministry of the Environment, MGC
has quantitatively calculated and released the investment amount and costs of environmental preservation
required for the business activities of MGC (alone), as well as the real economic benefits obtained.

Emission of total nitrogen

Water Intake / Wastewater Volume

MGC alone

The increase in wastewater in FY 2012 and FY 2013 in ourdomestic Group was a one-off event due to the intensive
processing of wastewater stored in tanks associated withthe decommissioning of facilities.

Domestic MGC Group(tons)
500
250

22
231

0

2011

Water intake
MGC alone(1,000 m3)
60,00040,000

Domestic MGC Group

2012

2013

20

428

316
2014

16
191

263
2015

(FY)

2016

802
5,489

39,67738,91520,000

4,599
5,664

6,864
5,034

37,38233,800

0

2013

2014

Domestic MGC Group

100

7,200
4,958

7,638
4,427

29,90130,811

2015

2016

50

4.6

2.1
53

0

(FY)

2011

4.6

69
2012

61
2013

2014

0.5

0.4
45

2.4
35
2015

68
2016

(FY)

Domestic MGC Group

Preservation of Atmospheric Environment(Domestic MGC Group)

Overseas MGC Group(1,000 m3)
80,00040,0000

114
3,626
33,0262011

171
29,782

3,459
27,21733,67834,8032012

2013

Emission of SOx
3,928
8,905
33,394

3,922
3,469
28,852

4,115
3,342
27,5852015

2014

Investment amountThe total amount of investment related to environmental
preservation activities in FY 2016 was approximately 800
million yen. Major investments include converting thepower supply for compressors at the Mizushima Plant.

MGC has been undertaking environmental preservation
investments since FY 2015.
Environmental preservation investments are thoseinvestments which are difficult to adopt in conventional
investment projects for reasons including long return on
investment periods, but for which we are internallysoliciting projects with large environmental burden
reduction effects, and projects connected to theconservation of biodiversity, aiming for execution on a total
scale of about 100 million yen.
As an example, investment to replace air conditioning
equipment with new energy-saving, fluorocarbon-free
types has the dual effects of energy conservation andpreventing damage to the ozone layer. Moreover, replacing
mercury-vapor lamps and fluorescent lights with LED
lighting is a promising step to conserve energy and reduce
equipment containing mercury.
In FY 2016, we switched mercury-vapor lamps in ourplants and surrounding street lights to LED lighting,upgraded air conditioning equipment, and switched the fuelused in our boilers. This had an effect of reducing electric
power consumption by approximately 200,000 kWh over
the year.

2016

MGC alone

Domestic MGC Group

Economic benefit(tons)(FY)

Expenses
Total expenses related to environmental conservation
activities in FY2016 were 7.8 billion yen. Of these, thehighest expense was 2.7 billion yen for research anddevelopment, accounting for 34% of the total.
Economic benefits
The reduction of expenses through energy saving
measures and the income from the sale of unneeded
items generated in our business activities were recorded
as real economic benefit.

Wastewater
MGC alone

Environmental Preservation Investments(MGC Alone)

Emission of total phosphorous

Overseas MGC Group

MGC alone

2012

23
149

(tons)

800
5,192

2011

19

22

Environmental Preservation Cost andEconomic Benefits

300

Title

200

Global water intake / wastewater volume intensity
compared to consolidated net sales
Water intake intensity(m3/million yen)
150
136

101

100
50

81

89

86

0

2011

2012

0

2011

122

2013

2014

93

112

Wastewater volume intensity

87
97

36

100

72
76

65
2012

2013

77

59

65

2015

2016

MGC alone(FY)

Environmental preservation cost

Domestic MGC Group

60

66

73

606

625

673

2011

Emission of COD

400

2012

300

202

194

238

22

52
182

576

488

2013

2014

2015

2016

Upgrade of exhaust gas treatment facilities

212.9

736.1

Water pollution
prevention

Installation, reinforcement, and maintenance of wastewater treatment facilities and measuring
equipment

102.6

1,627.4

8.4

0.3

114.7

1,323.4

Soil, Noise

Onsite cost
(FY)

Expenses

Air pollution prevention

Prevention of soil infiltration

Global environmental preservation cost

Upgrade of air conditioning equipment, replacement of mercury-vapor lamps and other lightingwith LED lighting

Resources recycling costMaterial and thermal recycling of waste

7.1

873.5

Up or down stream cost

Retrieval and reuse of product containers; yellow card management

0.0

52.3

Maintenance of green spaces and environmental-related analysis

33.9

516.5

R&D cost

Research and development of energy-saving technologies and environmentally friendly products

283.6

2,899.8

Social contribution cost

Greening of surrounding areas; support for environmental conservation organizations

0.0

11.1

40

Environmental damage cost

Pollution impacts levy

0.0

75.4

763.1

8,115.9

Domestic MGC Group

18
31
2011

174

600

48

Investment

Management activity cost

MGC alone

0

232

52

(millions of yen)

Main areas of activity(tons)
60

20(tons)

100

69

Pollution
prevention
cost

Emission of soot and dust

Domestic MGC Group

28

355.7

(FY)

0

The increase in nitrogen seen during FY 2013 and FY 2014
was a one-off increase due to processing of wastewaterassociated with the decommissioning of facilities.

63

25.9

Effects due to energy saving

1,000

Preservation of the Water Environment(Domestic MGC Group)

66

2016

Profit on sale of valuable waste, etc.

Reduction of expenses

Breakdown

250

31

2015

Income(tons)

500

200

2014

13
58

Emission of NOx
71

750

MGC alone

19
54

13
53

Amount(millions of yen)

Item

2012

6

3

21

22
2013

Total

2014

* Past data has been reviewed and corrected.

11

11
8

7
10
2015

13
2016

(FY)

Compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005
Period: From April 1, 2016 to March 31, 2017
Scope: MGC alone
Methods: Investments were proportionally related to the approved or enforced amount of capital expenditure to environmental preservation. Expenses were
proportionally related to the ratio of environmental preservation and include depreciation allowance.

0

2011

41

2012

2013

2014

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2015

2016

(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

42

Responsible Care and MGC

Safety Management of Chemicals and Products
As a responsible provider of chemical products, MGC clearly explains properties, safety, and handling of its
chemical products, as well as deploying various activities to protect the environment and to ensure thehealth and safety of all who use our products.

Basic survey

Safety Assessment of Chemical Substancesand Products•• Acquisition
Acquisition ofof SDSs
SDSs forfor raw
raw materials
materials•• Survey
Survey ofof literatureliterature related
related toto safety
safety•• Survey
Survey ofof requirements
requirements forfor areaarea ofof usage
usage•• Applicability
Applicability survey
survey forfor new
new substances
substances

At the development stage of products, MGC first conducts basic surveys
and safety assessments. When products correspond to new chemical
substances, we submit the notifications required by law and conduct
necessary safety testing. We then classify products according to whether
they do or do not come under each legal regulation, as well as according totheir degree of hazard under standards such as GHS,* and create safety
information such as safety data sheets (SDSs). Based on these, we
perform risk assessments (based on hazards of the substances themselves
and exposure) for all product processes, from manufacture to disposal, andoffer the products after appraisal.

Safety assessment• Physicochemical hazard assessment• Assessment of hazard to health• Assessment of hazard to the environment

Hazard classifications• Survey of applicable laws
• GHS classification• United Nations classifications* GHS: The Globally Harmonized System of Classification and Labeling of Chemicals. Chemicalhazards are classified under fixed standards and are indicated clearly with pictograms on labels
and SDS documentation. Ultimately, the information contributes to accident prevention, humanhealth, and environmental preservation.

Providing Safety Information

Preparation of safety information

MGC provides safety information on chemicals through means including
submission of product SDSs, placement of product warning labels on
containers, and distribution of Yellow Cards.

• Preparation of SDSs
• Preparation of warning labels(product labels)• Preparation of Yellow Cards

SDSs are documents that convey detailed
information about the handling and safety ofchemicals, and are submitted to companies that
handle MGC’s chemicals, such as customers,
sales agents, and shipping companies. SDSs
that conform to GHS-compliant JIS (JIS Z 7253)
are available for all of our products; we are now
working to further enhance the listed safety
information.

43

Premarketing investigations• Assessment of risk management• Determination of marketability
Product supply

Providing product information• Provision of safety information• Compliance with applicable laws
• Rationalization of product logistics• Collection of customer information

LabelsYellow Cards

Easy-to-understand GHScompliant warnings and safety
information for users are
printed on labels affixed to ourchemical products. We arerevising the SDSs by reviewing
the safety information, and arerevising labels as well.

A Yellow Card is a cardreadied in preparation for an
accident during domestic
shipment. It briefly lists a
product’s properties, laws that
apply to the product, andemergency response
measures, as well as contact
information including fire
departments, police
departments, and MGC. We
distribute these cards to shippers of chemicals, andensure that they are carried during product shipments.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Emergency Responses in Distribution

MGC conducts chemical and product safety education
within its product liability (PL) training at each businesssite. In FY 2016, we conducted education on companies’
stances toward and handling of PL.
The scope of chemical substances that became
subject to mandatory risk assessments grew under theJune 1, 2016 amendment to the Industrial Safety and
Health Act, and substances continue to be added. We
conducted education on risk assessment methods for use
in the handling of various chemical substances to ensure
safety within the company and deepen knowledge
regarding the handling of products.

At MGC workplaces, we have set up a wide-area support
system that includes supplying emergency goods andapparatus to production sites and establishingcommunication between sites to facilitate emergency
responses to accidents that occur during transportation.
Because of our preparation of response systems andsupplies, we cooperate with local police or fire
departments upon request, should an accident occur
during another company’s transport of product in thevicinity of our workplaces.
We conduct training for scenarios that include
terrorism, logistics accidents, and shipping accidents withmarine spills that require oil barrier deployment.

Marine hose drill(Mizushima Plant)

Customer information

Safety data sheets (SDSs)

Chemical and Product Safety Education

Logistics disasterprevention drill (Niigata Plant)

Chemical substance risk assessment (Kashima Plant)

Compliance with EU REACH Regulationand Extending it to JIPS
As one adaption to the EU’s REACH regulation forchemical product management, we are registeringchemical substances that are exported to Europe. Since a
portion of this registeredinformation meshes with theactivities of the Japan Initiative of
Product Stewardship (JIPS)
initiative of the JCIA, we aretaking the hazard information
and risk (exposure) information
used for REACH registration andextending it to JIPS as well, while
also making active use of it in our
GPS/JIPS Safety Summary
management of chemical
substances.

GLP certified testing facility
The MGC Niigata Research Laboratory is recognized by
the Japanese government as conforming to GLP* test
facilities for Ames mutagenicity study. GLP test reports
command high confidence internationally. In addition, as
GLP test reports can be used in notifications under the
Industrial Safety and Health Law and the Law
concerning the Evaluation of Chemical Substances andRegulation of Their Manufacture, etc., we conduct GLP
tests when notifications are necessary for new chemical
substances that are part of our product development.
We conduct testing to assess the safety of thechemicals handled by the MGC Group, including acuteoral toxicity studies, primary skin irritation tests studies,and pathogenicity studies.
* GLP (Good Laboratory Practice): GLP is a system which
ensures the reliability of test results, through government
recognition of excellent testing facilities that demonstrate GLPbased management, testing equipment, test planning, internal
auditing systems, reliability assurance systems, and compliancewith test result standards.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

44

Responsible Care and MGC

The MGC Group Environment and Safety Council
MGC Group manufacturing companies in Japan are promoting environmental and safety initiatives within
the MGC Group Environment and Safety Council.
MGC Ageless Co., Ltd. joined in May 2017, making a total of 13 domestic affiliates.

RC Medium-Term Plan

2017 RC Action Plan■	Strengthening of communication■	Sharing and horizontal

with domestic and overseas
Group companies (conferences,audits, liaison meetings)■	Group-wide practice of process
safety and disaster prevention
activities and labor safety
activities■	Group-wide practice ofenvironmental management

communication of information onabnormal occurrences andoccupational injuries■	Audit of domestic and overseas
affiliates■	Support for the environmental
and safety activities of domestic
and overseas affiliates■	Setting of environmental impact
reduction plans by the domestic
MGC Group

Environmental and Safety Audits
We oversee audits at domestic and overseas affiliates withthe environment and safety director as team leader. We
conduct 4 or 5 domestic and 5 or 6 overseas audits eachyear in support of the Group companies’ environment andsafety activities.
In 2016, the 12 companies below were audited.

MGC Advanced Chemical Inc.
Manufacturing of chemical products andlife science-related materials
Address: 4061-2, Tayuhama, Kita-ku, Niigata-shi, Niigata 950-3112,
Japan
Tel: +81-25-259-7187
URL: http://mgc-ac.jp/ (Japanese only)■ 	Fudow Company Limited■ 	Japan Finechem Company, Inc.
■ 	Japan U-PiCA Company, Ltd.
■ 	Toyo Kagaku Co.Ltd.
■ 	MGC Electrotechno Co., Ltd.

MGC Group Environment and Safety
Council Meeting
The Council meets twice a year to exchange ideas and toreport on topics including MGC’s and member companies’
annual plans for environmental and safety activities, theresults of the activities, and the status of accidents andoccupational injuries.
Since 2012, the Council meets not only at the MGC
headquarters, but also at MGC business sites and thebusiness sites of Group companies, which provides anopportunity to raise the bar of environmental and safety
activities by visiting the business sites of each company
firsthand.

A meeting at JSP Kanuma Plant■ 	MGC Pure Chemicals Taiwan, INC. (MPCT/Taiwan)■ 	MGC Electrotechno (Thailand) Co., Ltd. (ETT/Thailand)■ 	Thai Polyacetal Co., Ltd. (TPAC/Thailand)

MGC Ageless engages in customer
service at our Tokyo business site, andAgeless manufacturing at our Shirakawa
business site, thereby playing a role in
MGC’s oxygen absorber business.
Ageless extends the best-before date andexpiration date of customers’ products,
contributing to the safety and stability offood and medical products, and reducing
waste and the use of additives.
We are also committed to complianceconscious management, environmentallyfriendly manufacturing, working closely
Yoshihisa Sakakibara with communities, and ensuring safe andstable operations.
President & CEO■ 	MGC Advanced Polymers, Inc. (MAP/US)■ 	MGC Pure Chemicals America, Inc. (MPCA/US)

AED course

Firefighting drill

Eiwa Chemical Industry Co., Ltd.

MGC Electrotechno Co., Ltd.

MGC Filsheet Co., Ltd.

Manufacture and sale of blowing agents

Manufacture of copper-clad laminates

Manufacture of polycarbonate film and sheet

Address: Daido Seimei Co. Kyoto Bldg. 9F, 595-3 Manjuya-Cho, Sanjosagaru, Karasuma-dori, Nakagyo-ku, Kyoto-shi, Kyoto 604-8161, Japan
Tel: +81-75-256-5131
URL: http://www.eiwa-chem.co.jp/en/

Address: 9-41, Aza-Sugiyama, Oaza-Yone, Nishigo-mura,Nishishirakawa-gun, Fukushima 961-8031, Japan
Tel: +81-248-25-5000
URL: http://www.mgcet.jp/ (Japanese only)

Address: 4-2242, Mikajima, Tokorozawa-shi, Saitama 359-1164,
Japan Tel: +81-4-2948-2151
URL: http://www.mgcfs.jp/en/

Kuniaki Jinnai
President & CEO

Eiwa Chemical Industry’s blowing agents
have a wide range of applications in
automobiles, construction materials,
electronics, and other industries. Ourstrength is our technical ability to realize
required attributes, which contribute tosociety by adding characteristics thatlead to reduced environmental impact,
such as weight reduction, heat insulation,and damping. Regarding safety, we are
steadily engaging in activities such as
KYT and risk assessment with an eye tobreaking records for zero accidents andzero injuries, and will continue to stably
supply products.

Firefighting drill using powderbased extinguishers

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Address: Ryowa Building, 3-6-1 Kanda Surugadai, Chiyoda-ku,
Tokyo, 101-0062, Japan
Tel: +81-3-3251-0761
URL: http://home.mgc-ageless.co.jp/■ 	AGELESS (THAILAND) CO., LTD. (AGT/Thailand)

Sharing Safety Information across the
MGC Group

45

President & CEO

Ageless manufacturing and technology services■ 	Thai Polycarbonate Co., Ltd. (TPCC/Thailand)

JSP Kanuma Plant observation tour

If an accident or occupational injuries occur at an MGC
Group company, information is immediately distributed
across the Group using the safety information conveyancesystem to help prevent similar incidents from occurring.
Furthermore, excellent examples of environmental andsafety initiatives at MGC Group companies are introduced
and shared across the Group as good practices.

Takafumi Abe

As a member of the MGC Group, we
have the manufacture of life sciencesrelated materials and organic chemicals
as our primary business. Through thepractice we term “Safety assurance takes
priority over all business activities,” weendeavor daily to take environmental
preservation into account and maintainsafe and secure operations, so that wemay be a presence trusted by the market
and the community.

MGC Ageless Co., Ltd.

Nobuhisa Ariyoshi
President & CEO

MGC Electrotechno aims to become theworld’s leading copper-clad laminate
supplier, trusted by customers. We
possess equipment that spans prototype
research to mass production, and are
improving our competencies inmanufacturing technology, quality control,
quality assurance, maintenance,
procurement, and other areas.
While giving consideration to theenvironment, we are also taking action to
become a safe and accident-freecompany that is trusted in the community.

Switching fuel to LNG toconserve energy and reduce
environmental impact

Tsuneaki Iwakiri
President

MGC Filsheet operates functional film and sheet
production plants in Tokorozawa, Shirakawa, andOsaka, three locations blessed with abundantnature. Our products have a wide range ofapplications, particularly in the fields ofinformation devices and automobiles.
In addition to regular safety and industrial andenvironmental accident prevention activities, we
engage in environmentally-friendly productdevelopment, reducing environmental impact,conserving energy and resources, reducing
emissions, preventing environmental pollution,and other measures. We will continue striving toharmonize with nature, cooperate with local
communities, and contribute to the creation of anabundant society and sustainable global future.

(Left) Shirakawa Plant(Right) Basic life-saving training

MITSUBISHI GAS CHEMICAL COMPANY, INC.

46

Responsible Care and MGC
The MGC Group Environment and Safety Council

Japan Finechem Co., Inc.

Japan U-PiCA Co., Ltd.

Manufacture and sale of fine chemicals, for industrialuse, and electronic products

Manufacture and sale of unsaturated polyester resinand coating resins

Address: 148-58 Yufutsu, Tomakomai-shi, Hokkaido 059-1372, Japan
Tel: +81-144-55-7337
URL: http://www.sskc.co.jp/ (Japanese only)

Address: Uchisaiwaicho Tokyu Bldg. 9F, 3-2 Uchisaiwaicho 1-chome,
Chiyoda-Ku, Tokyo 100-0011, Japan
Tel: +81-3-5511-4600
URL: http://www.jfine.co.jp/eng/

Address: Madre Matsuda Bldg., 4-13 Kioi-cho, Chiyoda-ku, Tokyo
102-0094, Japan
Tel: +81-3-6850-0241
URL: http://www.u-pica.co.jp/en/

Shin Sanso Kagaku is the only manufacturerof hydrogen peroxide in Hokkaido. We havebeen operating our production site inTomakomai, an area surrounded byabundant nature, for 30 years. Since the endof FY 2016, we have been producing
AdBlue, a high-quality urea solution thatsuppresses the amount of nitrogen oxide
discharged in diesel vehicle exhaust fumes,
further enhancing our line-up ofenvironmentally-friendly products. We arestrengthening the environmental awarenessof each individual employee and working
toward stable production with zeroaccidents and zero occupational injuries.

Japan Finechem continuously works onsafety activities under the slogan thatsafety comes before all else. Our goal ismore than just preventing accidents fromhappening. We are endeavoring to ensure
safe and stable operations byimplementing facility and work process
improvements identified through self-led
activities, risk assessments and Hiyari-KY(hazard prediction) proposals, in order toestablish a presence trusted by themarkets and society for our strengths insafety practices.

JSP Corporation

Shin Sanso Kagaku Co.

Manufacture and sale of foamed plastics

Manufacture of hydrogen peroxide

Address: Shin-Nisseki Bldg., 4-2 Marunouchi 3-chome, Chiyoda-ku,
Tokyo 100-0005, Japan
Tel: +81-3-6212-6300
URL: http://www.jsp.com/en/

As a dedicated manufacturer of foamed
plastics, we supply the world withproducts that meet the needs of thetimes with respect to energy
conservation, resource conservation, andenvironmental preservation. As aninternationally competitive company thatprioritizes safety and adaption to theenvironment, we engage in businessactivities that earn the trust andsatisfaction of stakeholders as stipulated
in our responsible care (RC) policies onenvironment and safety.

Yukio Sakai
President & CEO

Yasushi Hiramatsu
President & CEO

Kyushu Plant volunteers
participating in activities forconserving forests that protect
water sources

Toyo Kagaku Co., Ltd.
Address: 51-497 Aza-Doudou, Oaza-Morowa, Togo-cho, Aichi-gun,
Aichi 470-0151, Japan
Tel: +81-561-39-0531
URL: http://www.toyo-kagaku.co.jp/ (Japanese only)

Address: 3-32 Tamura 3-chome, Hiratsuka-shi, Kanagawa 254-0013,
Japan
Tel: +81-463-53-8300
URL: http://www.japan-pionics.co.jp/en/

President & CEO

Drill for hazard prediction
during transport by hand truck.

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Japan Pionics Co., Ltd.

Resinous molding processing

Masanori Shimuta

MITSUBISHI GAS CHEMICAL COMPANY, INC.

President & CEO

Masaaki Iijima
President & CEO

We believe that safety assurance andenvironmental preservation are our social
responsibilities and that they are
fundamental to our business activities. While
working continuously toward zero accidents
and zero occupational injuries, productquality assurance, and strengthening of risk
management, we participate actively incommunity activities as we aim to become acompany trusted by the community.
We hope to strengthen these activities
and, as a member of the MGC Group,
contribute to the improvement of theGroup’s corporate value.

Participation in community
activities (greening and cleaning
activities around the Sagami
River together with local
elementary school students)

Yoshihiro Yamane
President & CEOFire extinguisher training led by
the Kita fire department as partof integrated disaster preparation
training at the Niigata Plant

Participating in commuter roadcleaning as part of an associationof coastal companies

Manufacture and sale of gas purifiers andabatement system

Toyo Kagaku manufactures plastic molded
products under the basic policies of“safety first, environmental conservation,and stable production.”
We engage in safety activities including
identification and improvement of
hazardous locations and on-site traffic
supervision.
Regarding the environment, we takeenergy conservation and other factors into
consideration by adopting energy saving
equipment and reducing waste throughthe improvement of material yields.

Shigenobu Ono

Japan U-PiCA is aiming for further
improvement in the areas of environment,
safety, and health under our philosophyof “aiming to be a materials manufacturer
that contributes to realizing an abundantsociety.” Regarding safety, we arestrengthening our ability to identify andhandle potential causes of danger andare working to achieve zero accidents
and injuries. In regard to environmentallyfriendly products, we are developing
materials for CFRP that will contribute tolower weight and energy conservation,and expanding production of bioplastics.

Yonezawa Dia Electronics Co., Inc.

Fudow Co., Ltd.
Manufacture and sale of molding resin
Address: NOF Shin-Yokohama Bldg. 5F, 15-16 Shin-Yokohama
2-chome, Kouhoku-ku, Yokohama-shi, Kanagawa 222-0033, Japan
Tel: +81-45-548-4210
URL: http://www.fudow.co.jp/en/

Hideaki Matsumoto
President & CEO

U-PiCA safety convention

Fudow has managed to maintain a record of
no injuries at our Gamagori Plant for 13
years and we also received a goodevaluation during our environment andsafety audit by MGC.
We submitted a team consisting primarilyof new employees into the Fujinomiya City
Firefighting Skills Competition andrecaptured the grand prize after conceding it
two years ago.
We are aware that safety needs to besustained as a long-term investment, andwe will continue to advance environmental
and safety activities centered on theworkplace and involve participation by all
employees.

Fudow employees work torecapture the grand prize at
the Fujinomiya City Firefighting
Skills Competition

Manufacture of printed circuit boards, auxiliarymaterials for processing
Address: 446-3 Hachimanbara 3-chome, Yonezawa-shi, Yamagata
992-1128, Japan
Tel: +81-238-28-1345

Nobuhisa Ariyoshi
President & CEO

YDE manufactures, and carries out R&D
for, printed circuit boards and auxiliary
sheets for drilling. We use a variety ofchemicals in these activities.
Making preservation of the rich natureof Yonezawa our top priority, we perform
risk assessments and planned
maintenance of facilities to prevent leaks
and other accidents that impact theenvironment. We also engage in KYT,
Hiyari Hatto (near-miss) incident
identification, and 5S activities, with theaim of achieving zero accidents.

Ongoing median strip greening
activity

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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