Denka GroupCSR Report

2015
References

CONTENTS
2

Denka Principles /The Denka Group Guidelines

3

Human Rights and Compliance

4

Information Security / Information Disclosure5

ISO 14001 and 9001 Management Systems

6

Responsible Care (RC) Activities

7

Environmental Conservation

10

Product and Labor Safety Management Systems /Optimizing Logistics

14

Environment- and Energy-Related Subsidies

15

Environmental Accounting

16

The Denka Group’s Environment-Friendly Products
and Technologies

20

Initiatives with Our Stakeholders

22

Corporate Officers

23

Consolidated Financial Statements /Non-consolidated Financial Statements

27

Global Reporting Initiative (GRI) Content Index

Possibility of Chemistry.

Reference

Reference

Denka Principles / The Denka Group Guidelines

Human Rights and ComplianceDenka Principles

To Maintain the Trust of Society, We Will Seek Greater
Transparency and Ensure Integrity in All Our Endeavors.

Denka Principles
We:• Boldly confront challenges with• Deliver new values, and inspire customers
through innovative monozukuri.
• Respect the environment and create adetermination and sincerity.

cheerful workplace that prioritizes safety.

• Think and take action today with the future• Contribute to a better society, whilst taking

in mind.

pride in being a trusted corporate citizen.
(As of April 1, 2015)

Our Stance on Human Rights
In line with Article 1 of the Universal Declaration of Human
Rights established in 1948, the Group’s management
approach is based on the principle that “All human beings areborn free and equal in dignity and rights.”
In addition, the Denka Group Ethics Policy stipulates
that “We will respect individual’s human rights while helping
employees maintain favorable human relationships at
workplaces” and the Denka Group Guidelines state that
“We will maintain safe, clean and comfortable workplaces
and respect all basic human rights” (Article 6). Moreover, we
actively work to instill this policy of respect for human rights inall employees, especially newly appointed managers, by, forexample, providing training in domestic and international laws
and regulations, the eight fundamental conventions covering
four principal areas of labor as defined by the International
Labour Organization and the UN Global Compact’s Ten
Principles.
In fiscal 2014, we conducted in-house surveys toassess compliance with the Ethics Policy and the upholdingof human rights. No human rights violations were foundanywhere within the Group.

Compliance
The Denka Group Guidelines
Based on its corporate philosophy, “to become a company that creates new value from resources by fully employing our technologicalcapabilities,” the Denka Group established CSR action guidelines.

1. We will promote sustainable social
and business development out ofa conviction that corporate social
responsibility is the essence ofbusiness.
2. While constantly ensuring quality
to maintain customer trust, we willcontribute to sound social progressby developing and supplying products and services that are safe andenvironment friendly.

6. We will maintain safe, clean andcomfortable workplaces and respect all basic human rights.
7. We will use, reuse and recycle
resources to help protect the environment.
8. We will maintain security and disaster prevention measures, participate in environmental protection
activities and communicate withsociety.

3. We will operate fairly.
4. We will maintain a good level ofcommunication with society anddisclose appropriate information.
5. We will comply with laws and regulations and operate fairly according to social norms.

2

Denka Group CSR Report 2015

9. We will contribute to society as agood corporate citizen.
10. We will contribute to social development as a good member of the
global community.
Established April 1, 2007

Our Stance against Corruption and Antisocial Forces
The Denka Group Ethics Policy prohibits employees fromengaging in bribery or other illegal activities as well as fromproviding or receiving entertainment or gifts of excessive valueor the nature of which violates social norms. In fiscal 2014,
we sent out alerts reminding employees to take particularheed of the prohibition against bribery when engaged intransactions overseas or trying to penetrate into new market
areas. We intend to also implement such employee education
at overseas subsidiaries that have been newly established or
recently acquired.
In addition, employees are strictly prohibited from acting
in any way to benefit antisocial forces, and we ensure thatevery business contract incorporates a clause requiring theseverance of any relationship with such entities.
Security Trade Control
Current international regulations on trade aim to prevent the
proliferation of weapons of mass destruction by prohibiting
exports of products and technologies that could help thedevelopment and manufacture of such weapons. In line with
this, the Denka Group Ethics Policy requires adherence toJapan’s Foreign Exchange and Foreign Trade Act, the Export
Trade Control Order and other related regulations as wellas the Company’s in-house rules on security trade control.
Reflecting this, our fiscal 2014 initiatives aimed at ensuring
security trade control included internal audits undertaken
at eight departments of two divisions and participation inexternal seminars in addition to product classification as wellas end-use and end-user verification in the course of our daily
operations.
Protection of Intellectual Property Rights
In line with the Denka100 new growth strategies, we arefocusing on accelerating global expansion and facilitating
open innovation. Therefore, the protection of intellectual
property (IP) rights is becoming ever more important in termsof compliance. With this in mind, we are implementing thefollowing key initiatives on an ongoing basis.
First, we continually strive to ensure patent clearance.
While respecting the IP rights held by other companies, wework to confirm that our products cause no infringement ofsuch rights through patent clearance search and other means.

Second, we continually improve employee education.
In fiscal 2014, we provided training sessions themed on theprotection of IP rights, the content of related contracts, theutilization of trademarks, the latest IP related issues overseas
and the exercise of property rights, targeting personnel atsales, corporate planning and administrative departments. For
fiscal 2015, we are assiduously and systematically providing
training programs aimed at raising employees’ complianceawareness regarding the protection of IP rights.
Prevention of Insider Trading
In recent years, the incidence of insider trading and illegal
use or leakage of privileged information has increased. In
response, Japan’s Securities and Exchange SurveillanceCommission is stepping up efforts aimed at cracking down
on such illegal activities. Given this, in December 2014 Denka
revised its in-house rules regarding internal information control
and the prevention of insider trading. Moreover, we hosted
study sessions in March 2015, with specialists from stock
exchanges serving as lecturers. Utilizing case studies, thesesessions provided approximately 170 participants, including
some joining via teleconferencing, with basic knowledge on
insider trading as well as information on specific actions thathave recently become subject to regulations.
Going forward, we will implement periodic employee
education while sending alerts through our intranet andother media, thereby ensuring the proper management of
information and the prevention of insider trading.
Fair Trade
In line with the stipulations of the Denka Group Ethics
Policy requiring adherence to competition laws (e.g., theantimonopoly laws), we are holding in-house compliancetraining sessions while conducting internal audits, thereby
ensuring even stricter compliance. In fiscal 2014, to ensure
the smooth acquisition of synthetic rubber-related operationsin the United States, we submitted mandatory notification to
the relevant trade competition authorities.
Thanks to these and similar efforts, Denka has not been
charged with any violation of competition laws since 1993 in
Japan and 2002 overseas. As we aim to remain in this status,
we are stepping up such initiatives as employee education aimed
at ensuring compliance with fair trade and competition laws.

Denka Group CSR Report 20153

Reference

Reference

Information Security / Information Disclosure

ISO 14001 and 9001 Management Systems

We Will Ensure Information Security through Proper Control while
Maintaining Timely and Appropriate Information Disclosure.

The Denka Group Is Pursuing Ongoing Improvement
Using Quality and Environmental Management Systems.

Information Security

Status of ISO Certification Acquisition

Information Management Policy
The Denka Group Ethics Policy established in 2002
encompasses guidelines under the headings the Safe
Management of Personal Information/Confidential Information
Management and Respect for Intellectual Property Rights,
both of which are strictly complied with. As subordinate
regulations of these guidelines, Denka established anddeveloped the Personal Privacy Policy and the Regulation
for Protecting Information regarding Corporate Secrets,
which are thoroughly disseminated through lectures and inhouse newsletters. Furthermore, Denka strictly manages andrespectfully handles confidential information provided by third
parties in accordance with the Denka Group Ethics Policy.

Structure of Information Management Rules
Denka Group Ethics Policy

Information System Management
In recent years, the volume of information digitallyprocessed by the Group’s information system has been
rapidly expanding on the back of drastic advances in IT
technologies. Accordingly, it is increasingly important tosecure our information management system. Denka createdthe Information System Management Guidelines in 2006 andthe Information System Work Manual in 2008 based on theRegulation for Protecting Information regarding Corporate
Secrets. In cooperation with managers and persons in charge
at each relevant department, we are appropriately handling
digitized information.

ISO 14001 (Environment)

Omi Plant

Omuta Plant

ISO 9001 (Quality)

Date Certified

Registration Number

Date Certified

Registration Number

Products Covered

October 16, 1999

3320229-2A(BV)

August 19, 1994

2936857(BV)

Chloroprene, acetaldehyde, POVAL, ASR, SAKNOHOL,
special cement additives, cement, alumina fiber,
monochloro acetic acid, sodium monochloroacetate, caustic
soda, monosilane, dichlorosilane, hexachlorodisilan

October 28, 2000

2832519(BV)

November 7, 1998

3066427(BV)

Fused silica, special cement additives, nitride powder,ceramic substrates, steel additives, acetylene black,calcium aluminate cement, FIRELEN, boron, boron carbide
powder, thermally conductive materials, heat sinks,
phosphor

Chiba Plant

May 31, 1999

3181497(BV)

March 22, 1995

2985010(BV)

Polystyrene, acr ylonitrile styrene resins, methyl
methacrylate styrene resins, methyl methacrylatebutadiene styrene resins, methyl methacrylate acrylonitrile
butadiene styrene resins, acrylonitrile butadiene styrene
resins, styrene-maleimide copolymers, styrene-butadiene
copolymers, styrene methyl methacrylate copolymer resins,
ethylene-vinyl acetate copolymers, acrylic synthetic rubber,polystyrene sheet, styrene monomer, ethyl benzene, rain
gutters, vinyl tape, corrugated pipes, duct hosing, piping
covers, polyvinyl chloride, acetylene black

Shibukawa Plant

May 21, 2001

2944628(BV)

October 23, 1996

3119550(BV)

Metal substrates, adhesives, emitters, thermallyconductive spacers, thermally conductive adhesive sheets,
electromagnetic shields, ELEGRIP tape, electric power

Ofuna Plant

November 9, 2001

JQA-EM1895(JQA)

October 25, 1996

JQA-1429(JQA)

Packaging tape, plastic films, polyvinyl chloride fibers

Isesaki Plant

September 30, 2003

2770789(BV)

February 28, 2008

3038095(BV)

Stretch films, food packaging sheets, electronic packaging
sheets, cover tapes, DX FILMs

Denka Innovation
CenterJuly 5, 2004

2988036
(BV)

-

-

-

DSPL MERBAU

June 8, 2001

SNG0190016(Lloyd's)

November 29, 2000

SNG0160194(Lloyd's)

Acetylene black

DSPL SERAYA

May 1, 2003

SNG0190023(Lloyd's)

September 27, 2001

SNG0160242(Lloyd's)

Polystyrene, methyl methacrylate styrene resins, styrenebutadiene copolymers, styrene-maleimide copolymers

DAPL TUAS

March 2003

2003-0194(TÜV SÜD PSB)

April 2000

99-2-0984(TÜV SÜD PSB)

Fused silica filler

DAPL SOUTH--

March 16, 2015

2015-2-2293(TÜV SÜD PSB)

Synthetic fiber for hair wigs and hair pieces

DAV PVC Tape Plant--

July 20, 2015

VN/24/
0607866941

PVC adhesive tape

Denka Advanced
Materials (Suzhou) Co.,Ltd.

May 20, 2008

310092-UK（BV）

September 19, 2007

310799-UK(BV)

Electronic packaging sheets, cover tapes

Denka Polymer Co., Ltd.

--

June 25, 2014

JUSE-RA-1970 (JUSE)

Plastic food packaging and plastic sheets

Denka Seiken Co., Ltd.

June 23, 2000

3359017(BV)

July 13, 2005

12 100 25631
TMS(TÜV SÜD PSB)--

November 19, 2009

2862476(BV)

August 1, 2012

KES2-0622*--

Information System Management Structure
President

Chief Control Officer

Code of specific behavior

Safe Management of Personal Information/Confidential Information
Management and Respect for Intellectual Property Rights

The status of our ISO certification acquisition as of August 31, 2015 is as follows:

Directors in Charge Chief control officer at each relevant department

Subordinate regulations

Personal Privacy Policy and Regulation for Protecting
Information regarding Corporate Secrets
Management of information
related to information system

Information System Management Guidelines(established in 2006)

Lectures on Information Security
To disseminate in-house rules pertaining to information
security, our information technology specialist course,
covering the Information System Management Guidelines
and basic rules, is provided annually at Headquarters as wellas each branch and plant.
With classes of about 10
employees, the course
aims to ensure the adoptionof proper information
management methods
through practical training as Lecture on information management
for younger employees
well as active discussion.

General Managers General administrator at each relevant department

Managers

Administrator at each section or area in charge

Protection of Electronic Data
To secure the reliability and efficiency of information systems,
we are utilizing external specialized data centers to manageand operate our information system equipment. As a part ofemergency preparations, in fiscal 2012 we established an
information system operational structure that links two data
centers (located in the east and west of Japan) capable ofsupplementing each other’s operational capacity at the timeof wide-area disaster, including earthquake and tsunami,
thereby securing the continuity of our business operations.

Information Disclosure
Our Stance on Information Disclosure andOnline Information Management
In accordance with Japan’s Financial Instruments and Exchange
Law and timely disclosure rules set forth by the Tokyo Stock
Exchange, Denka appropriately discloses information with theaim of ensuring the transparency of its management. It is also
our policy to proactively disclose information that does not fallunder these regulations whenever such information is consideredhelpful to our shareholders and investors.
Moreover, using such opportunities as results briefings,
corporate briefings for individual investors and the General
Meeting of Shareholders, we are enhancing communication with
our shareholders and investors while reflecting their feedback inmanagement decisions and business activities.

4

Denka Group CSR Report 2015

Denka makes sure that corporate information subject tothe timely disclosure rules is protected from unauthorized accessor theft prior to release through the Tokyo Stock Exchange’s
timely disclosure network (TDnet) service. The Company
uploads such information to its website only after confirmingthat the information has been successfully disclosed throughthe aforementioned service. The number of personnel handlingthe management of the website is strictly limited, with theirworkspaces being set apart from other facilities and equippedwith protection systems. We have also established a procedure
to handle emergencies, such as unintentional information
disclosure and leakage.

CRK Corporation
Hinode Kagaku Kogyo

Clinical chemistry diagnostic reagents, immunologicaldiagnostic reagents, bacteriological and virologicaldiagnostic reagents, sterile cotton swabs
Rubber compounds, rubber tape, rubber molding-* Hinode Kagaku Kogyo acquired KES Step 2 certification, which comprises management items that are virtually identical with ISO 14001, thereby improving its environmental management.

Denka Group CSR Report 20155

Reference

Reference

Responsible Care (RC) Activities

Environmental Conservation

Fiscal 2014 RC Objectives and Achievements

Environmental Conservation

Prevent global
warming and saveenergyGoals

Achievements

Evaluation

Key Area

CO2 emissions intensity(from energy sources) : 1.22t/t
Energy consumption intensity: 98% or lower(fiscal 2012 base)CO2 emissions intensity (from energy sources) : 1.25t/t
Energy consumption intensity (fiscal 2012 base) : 95%- Missed the target for CO2 emissions intensity due to the increaseof CO2 emission coefficient of purchased electric power

B

SOx: 116tNOx: 4,250t
Soot and dust : 125t
COD (BOD) : 1,150t

Prevent air andwater pollution

Total waste generated: 139,000t
Reduce waste(zero emissions)Final landfill waste: 178t
Raise the amount of waste andbyproducts used in cement (recycledresource usage intensity) to contributeto a recycling-oriented society (554kg/t
in fiscal 2013)

Use resources
efficiently

Product Safety

Compliancewith chemical
substance
management
policies

Continuously provide sufficient
information on product safety, such as
through SDSs,* while complying withinternational regulations on chemical
substances, including REACH**

Chemical
substance
Companywide emissions of PRTR
management and substances: 92t
emission reduction

Occupational Safety and HealthAchieve zero occupational accidents
Action policies:- Facilitate worksite communication tocreate a lively and vibrant workplace- Involve everyone in safety activities- Thoroughly implement safety
education- Implement safety activities tailored to
local needs

Eliminateoccupational
accidents

Community Relations

Disaster Prevention

Manage employee
healthMaintaincommunity trust* Safety Data Sheet

6

Total waste generated: 119,000t- Waste reduction efforts at each plant continue to progress
In-house and external landfill: 156t
- Maintained zero-emission status thanks to waste reduction efforts
at each plant

Recycled resource usage intensity: 590kg/t- Promoted recycling of industrial waste into raw materials and fuels

Promoted initiatives to ensure strict compliance with each relevant
country’s chemical substance regulations, submitting notifications toauthorities and developing a database for such documents as SDS

76t- Emissions of PRTR substances decreased 16% year on year,
reflecting the suspension of the Chiba Plant’s vinyl acetateproduction facility

Eliminate facility-related and otheroccupational accidents in logistics- The Logistics Safety Working Team, consisting of appointees
operations
from various logistics sections, carried out safety inspections- Promote safety assurance activities
encompassing all plants, assessing the status of logistics
undertaken by the Logistics
operations and related facilities. Potential risks were identified andSubcommittee
countermeasures formulated. Findings were shared with each
- Promote risk assessment, prepare
plant to ensure logistics safety.
manuals, educate transporters,- We are rolling out countermeasures against forklift accidents
maintain thorough legal compliancewhile developing standard procedures for handling accidents
using checklists and ensure the safety
during transportation.
of employees who engage in loading
and unloading

Ensure safe
transportation

Eliminate major
accidents

SOx
: 65t
: 4,250t
NOx
Soot and dust : 72t
COD (BOD) : 760t
- SOx emissions decreased approximately 23% year on year due tothe switchover of fuels at the Omi and Chiba plants from heavy oil
to natural gas- NOx emissions decreased approximately 5% year on year
reflecting a decrease in cement production at the Omi Plant- Soot and dust emissions fell even more than targeted due tofacility upgrades involving dust collectors and other equipment infiscal 2012
- COD (BOD) emissions fell approximately 12% year on year due
to the augmented capacities of the Omi Plant’s wastewater
treatment facilities

Achieve zero sick leaves attributable towork

The number of facility construction-related accidents decreased
year on year from four to zero. This was attributable to the successof safety assurance activities focusing on improved worksite
communication, in which all plant workers were engaged as a partof ongoing initiatives introduced in fiscal 2010 to create a lively andvibrant workplace. However, the total number of accidents amounted
to 22, decreasing only slightly from the previous year’s 23. The
majority of incidents were similar to previous incidents.

Provided mental health education programs at each plant
while promoting the Mental Health Promotion Plan as part ofcomprehensive countermeasures at Headquarters, branches andthe Innovation Center

Facilitated communication with people from communities
surrounding each plant and business site while proactively
participating in local festivals, events and cleanup activities andhosting experimental chemistry classes to maintain relationships oftrust with community members- Sponsored sports promotion activities at the DENKA BIG SWAN
STADIUM while implementing ongoing volunteer activities to help
reconstruct areas around Minami Sanriku-cho that were hit by theGreat East Japan Earthquake- Enhanced the quality of RC activity-related information disclosure
through the issuance of the CSR report and utilization of the
Carbon Disclosure Project scheme

C = Missed target

Major Initiatives and Goals for Fiscal 2015

Print
32, 33CO2 emissions intensity (from energy sources) : 1.20t/t
Energy consumption intensity (fiscal 2012 base) : 97% or lower- Promote CO2 reduction taking advantage of subsidy systems to
implement projects aimed at improving production processes
and yields

Web
8, 9

SOx
: 69t
NOx
: 4,040t
Soot and dust : 125t
COD (BOD) : 770t
- Reduce soot and dust emissions while maintaining fiscal 2014
levels for other emission items, thereby achieving the goals of
the Fifth Medium-Term Environment Plan

We Are Striving to Monitor Environmental
Data at Each Business Site and Affiliate.
Production Volume and Energy Consumption Intensity(Relative to the Fiscal 2012 Level)
Production(Production;
Energy intensity)
1.5

1.00

1.0
Total waste generated: 133,000t- Increase yields ratios as well as the volume of waste sold,thereby reducing the volume of total waste generated as wellas landfill waste
In-house and external landfill: 176t
- Promote in-house and external recycling and thereby promote
the effective utilization of resources- Step up recycling initiatives throughout the Group, including
those at affiliates

A

Print
32

A

Print
32
Web
9

A

Print
35

Raise the recycled resource usage intensity, thereby contributing
to the development of a recycling-oriented societyAWeb
10, 11

Fiscal 2015 Companywide Quality Policy
To enhance the level of quality management and assurance
activities, we will prioritize the following, depending on the
product.
1. Improve quality assurance levels Companywide
2. Strengthen compliance with laws and regulations andenhance customer satisfaction
3. Raise awareness of employees engaged in manufacturing
4. Enhance technologies to ensure built-in quality
5. Facilitate the adoption of quality control technologies andmethods at each production site

A

Print
32, 33
Web
7-9

A

Web
12, 13Companywide emissions of PRTR substances: 88t- Continue reducing VOC emissions at the Chiba Plant

Fiscal 2015 Policies for RC Activities
Promote collaboration between departments in chargeof logistics management and environment and safety at
Headquarters and each business site while:- Ensuring the safety of workers engaged in loading andunloading- Enhancing capabilities to handle transportation accidents

B

Print
28, 29
Web
13

A

Print
38, 39

B

Print
28-31
Web
13

A

Print
41, 43Web
21

Companywide target: Eliminate major accidents while continually
reducing the number of occupational accidents
Priority initiatives:
1) Create a lively and sound workplace- Facilitate worksite communication to ensure the ongoing
reduction of potential dangers and eliminate accidents
attributable to operator action- Promote safety activities in which each worker is able tograsp the worth of their efforts
2) Step up hazard prediction systems aimed at preventing major
accidents and facility-related incidents- Leverage case studies of accidents at Denka and othercompanies- Utilize systems developed by industrial associations toassist with safety assurance operations
Promote comprehensive countermeasures against mental
health issues through the provision of employee training and thedevelopment of in-house structure

1.10

Note:

PRTR Substances

Energy consumption intensity

Denka

1.13

120

0.99

0.98

0.95

0.97

80

5
6

115

125

103

0.5

90

0

12

14

14

15 （FY）

TargetResultTarget0

CO2 emissions intensity

CO2 emissions intensity index
(%)
120

1.07

71

1.25

1.20

1.06
83

0.8

1.24

82

82

From energy sources

30

（%）
1.0

1,450
0.8%
0.8

955

1,010

1,038

971

994

704

800

10

11

12

13

14

0
15（FY）
Target

0

300

10

11

12

13

14

15（FY）
TargetIn fiscal 2014, the CO2 emissions intensity was equal to the fiscal 2012 level, failing tomeet the reduction target of 98% or less. Factors contributing to this result included
an increase in the CO 2 emission coefficient of purchased electric power, which
outpaced the effect of energy-saving facility upgrades. We will continue to promoteenergy-saving initiatives while improving the efficiency of in-house power generation.

Constantly facilitate interaction with people from each businesssite’s neighboring community, thereby maintaining relationshipof trusts with the public** Consisting of 12 major affiliates in charge of production:
Denka Singapore Pte. Ltd. (Merbau and Seraya), Denka Advantech Pte., Ltd. (Tuas and Tuas South), Denka
Advanced Materials (Suzhou) Co., Ltd., Denka Chemicals Development Suzhou Co., Ltd., Denka Inorganic
Materials Tianjin Co., Ltd., Denka Polymer Co., Ltd., Denka Seiken Co., Ltd., CRK Corporation, Hinode Kagaku
Kogyo and Denka Azumin Co., Ltd.

0

10

0.6

0.4

0.2%

0.2%

400

773

0.3%

304
0

0.6% 0.6%

900

600

0.4

Denka emission ratio*
Affiliates** final landfill waste

1,200

990
60

15（FY）

14(Tons)
1,500

1,130

79

70

13

Group total emission ratio
Denka final landfill waste

From non-energy sources(Thousand tons)
1,600

1,200

12

Waste Emissions Ratio

1,340 1,380 1,330 1,330 1,320
90

11

Emissions of PRTR substances, such as toluene,
decreased approximately 16% year on year (on a nonconsolidated basis), reflecting such factors as thesuspension of the Chiba Plant’s vinyl acetate production
facility. In fiscal 2015, we will work on the systematic
reduction of these substances, especially at the Chiba
Plant, despite an expected increase in production
volume.

CO₂ Emissions(t-CO2/t-CaC2)
1.6

10

TargetIn fiscal 2014, energy consumption intensity was 95% of the
fiscal 2012 level, better than our initial target of 98%. This was
mainly attributable to steps taken to enhance the efficiency of
our chloroprene rubber production facilities, upgrades of styrene
monomer production facilities and an increase in output from
our in-house hydroelectric power plants. Looking ahead, we will
upgrade our manufacturing facilities while enhancing the efficiency
of in-house power generation.

CO₂ Emissions Intensity(from energy sources)

88

76

40

1.2

Affiliates**（Tons）
160

Companywide target: Reduce major facility-related accidents to
zero
Priority initiatives:
1) Step up hazard prediction systems aimed at preventing major
accidents and facility-related incidents- Leverage case studies of accidents at Denka and othercompanies- Utilize systems developed by industrial associations toassist with safety assurance operations

Proactively communicate with stakeholders through theappropriate disclosure of information on RC activities throughthe CSR report and other materials

Figures for fiscal 2013 and 2014 include theenvironmental data of affiliates. Also, we post
data on emission ratio trends in addition to theamount of final landfill waste.

5
1.00

1.25

The number of accidents that resulted in lost work time during fiscal
2014 (fiscal 2013 for comparisons):- Denka: two (one); accident frequency: 0.19 (0.18)- Among subcontractors: one (six); accident frequency : 0.17 (1.06)

Eliminate major facility accidents suchas explosions and fires- Ensure the security of each production
No major facility accident during fiscal 2014
site, including overseas plants, by- Experienced three minor facility-related accidents andimplementing steps tailored to theimplemented steps aimed at preventing recurrencescharacteristics of individual facilities- Carried out objective evaluations of facilities at the Chiba Plant- Apply a security evaluation system
employing a security evaluation system, with plans calling forGroupwide and step up facility
rolling out the evaluation to the Omi and Omuta plants
improvement based on evaluations
while creating a safety-oriented
corporate culture

Facilitate communication with
community residents and local society
to maintain their trustA

B = Partially missed target

Relevant
Pages

Assessment code: A = Reached target

Fiscal 2014 (the interim year of the Fifth Medium-Term Environmental Plan)

0.1% 0.1%

0.1%
228
11

180
12

210
13

156
14

0.2

176

0.0
15 (FY)
Target* Emissions ratio (%) = amount of final landfill waste/
amount of waste generated X 100 (In Denka’s definition,“zero emissions” means an emission ratio lower than 1%.)

In fiscal 2014, the amount of final landfill
waste was down 49% year on year. Thiswas mainly attributable to the absenceof the disposal of aged facilities that was
carried out during fiscal 2013. To maintainz e ro - e m i s s i o n s s t a t u s a t a l l G ro u pmembers, including affiliates, we will strive
to reduce the volume of waste generated
while effectively utilizing resources throughrecycling operations.

** Registration, Evaluation, Authorisation and Restriction of Chemical Substances

Denka Group CSR Report 2015

Denka Group CSR Report 20157

Reference

Environmental Conservation

SOx

NOx

（Tons）
300

Denka

Affiliates*

250

Soot and Dust

（Tons）
10,000Denka（Tons）
300

Affiliates*

Denka

250

8,000

200

200

129
12 9

6,000
150

124

260

103

103

10

11

12

4,000

2,000 4,330 4,240

84

65

13

14

840

69
0

15（FY）

10

4,460
4,040

11

12

13

4,250

SOx emissions decreased approximately
19% year on year. This was attributable toefforts to systematically reduce emissions
from Hinode Kagaku Kogyo and the
Omi Plant and the ongoing utilization of
byproduct gas with lower sulfur content
at the Chiba Plant. We will continuously
reduce SOx emissions in fiscal 2015 andbeyond.

COD (BOD)
Denka

132 130880

Affiliates*

50

4,040

0

15（FY）

14

Target（Tons）
1,600

150

111 128

10

11

125

93

12

73

72

13

14

TargetIn fiscal 2014, NOx emissions intensity
decreased due to the improved
combustion efficiency of the Omuta
Plant’s fused silica production facilities.
Although we expect production volume
to increase in fiscal 2015, we will strive tofurther reduce NOx emissions, especiallyat the Omi and Omuta plants.

Units
10,000t

In fiscal 2014, soot and dust emissions
remained virtually unchanged from theprevious year. We will strive to reinforce
dust collection facilities at Denka AzuminCo., Ltd. and the Omi Plant’s cement andcalcium carbide production lines, thereby
reducing soot and dust emissions.

Omi

Omuta

85

16

Innovation
Merbau Seraya
CenterChiba Shibukawa Ofuna Isesaki

27

0.8

0.8

2.3

0.2

0.4

3.3

Tuas
South

Tuas

2.0

DCD

DPK

Denka
SeikenCRK

0.4 0.0754 0.0074 0.0126

1.3

1.6

0.08

2.2

0

DAS

DIT

Hinode Azumin

0.6

PRTR substanceemissions

t

14

8

50

3

0.5

0

0

0

0

0

0

1.4

0

0

0

0

4.2

0

NOx emissions

t

3,209

786

245

11

1

0

0

0.5

4.6

590

1.4

0

0.1

0

0

3.6

0 237.6

26

SOx emissions

t

45

1

16

3

0

0

0

0

0.9

0

0

0

0

0

0

1.5

0 103.3

0.8

Soot and dust
emissions

t

65

6

1

0

0

0

0

0

0

0

0.1

0

0

0

0

0

1,000m 62,925 1,205 3,457 2,294

10.1 1.786 0.377

Water used

15（FY）

TargetItems
CO2 emissions(from energy sources)

100

116

50

0

730

217

100

Fiscal 2014 Environmental Performance by Denka Business Sites and Affiliates

Affiliates*

42

433

12

3

0

0

93,768 12,903 11,719

384

137

171

2

14

0

3

COD (BOD)
discharges

t

Waste

t

Final landfill waste

t

743

60

2

25

55

PRTR substance emissions
Hinode

Chiba

0

0

118 315.4 2,065 331.1 403.6000 305.8

0

0.41

29.9

702

0

0

0

0

109

8

23 146.1 935.1

109

8

7

0

0

47.5

74.3 2741.7 602.9
0

2.1

2.4

80

54

43.1

30

3.6

37.3

SOx emissions

Tuas
12%
Omuta

82 tons

62%

3.5

0.1

6.6 122.9

Hinode5%

17%Shibukawa4%

105 83.66

0NOx emissions

Omi

5%

7 50.917

0

10%

5,087 tons

169 tons

Omi

63%

Omuta
15%

Fiscal 2014 PRTR Substances Emissions and Transfers
The following table shows PRTR substances emitted and transferred in amounts
exceeding one ton.

26%

60%

Chiba

5%

Omi

HinodeChiba

9%

Unit: tons (excluding dioxin)

PRTR Substances
1,200

n-Butyl acrylate
1010800 1,600

10

1,300
860

400

0

10

11

12

860

13

760

14

770

15（FY）

TargetDespite the rise in production volume, COD(BOD) emissions in fiscal 2014 decreased
approximately 11% year on year, thanks
to the reinforcement of the Omi Plant’s
treatment facilities for wastewater from thechloroprene rubber production process.
We will strive to maintain efficient facility
operations in fiscal 2015 and thereby
steadily reduce emissions.

No.
7

Emissions
Air
0AmountTransferred

Water

Soil

Landfill

Total

0

0

0

0

2

Acrylonitrile

9

2

0

0

0

2

11

Acetaldehyde

12

0

4

0

0

4

0

Aniline

18

0

0

0

0

0

13

Ethyl benzene

53

3

0

0

0

3

46

Ferric chloride

71

0

0

0

0

0

59

Vinyl acetate

134

6

0

0

0

6

0

N,N-Dimethylformamide

232

0

0

0

0

0

14

Styrene

240

16

0

0

0

16

132

Water soluble copper salt

272

0

6

0

0

6

39

Toluene

300

20

0

0

0

20

29

Carbon disulfide

318

2

0

0

0

2

0

Hydrogen fluoride and its water-soluble salt

374

0

1

0

0

1

30

n-Hexane

392

0

0

0

0

0

3

Boron compounds

405

0

10

0

0

10

14

2-Ethylhexyl methacrylate

416

0

0

0

0

0

0

Methyl methacrylate

420

2

0

0

0

2

14

Total (tons/year)
Dioxin (mg-TEQ/year)

243

Water used

Soot and dust emissions

COD (BOD) discharges(to the outside)

51

21

0

0

72

404

21

56

0

0

77

0

Azumin61%

Omi

Hinode4%

Shibukawa
3%
Chiba

32%

5%

202 tons

73,357,000 m

3

Omuta
3%

768 tons

Omi

84%

Omi

97%

Hinode3%

Final landfill waste
CRK
4%

Azumin
5%

15%

9%

Omuta

4%

Denka Seiken
7%
DAS

Omi

704 tons

Chiba
8%
Ofuna
2%

Omi Plant

Denka Advanced Materials (Suzhou) Co., Ltd. (DAS; China)

Omuta Plant

Denka Inorganic Materials Tianjin Co., Ltd. (DIT; China)

Chiba Plant

Denka Chemicals Development Suzhou Co., Ltd. (DCD; China)

Shibukawa Plant

Denka Polymer Co., Ltd. (DPK)

Ofuna Plant

Denka Seiken Co., Ltd. (Denka Seiken)

Isesaki Plant

CRK Corporation (CRK)

Denka Innovation Center

Hinode Kagaku Kogyo (Hinode)

Denka Singapore Pte. Ltd. Merbau Plant (Merbau; Singapore)

Denka Azumin Co., Ltd. (Azumin)

Denka Singapore Pte. Ltd. Seraya Plant (Seraya; Singapore)
Denka Advantech Pte. Ltd. Tuas Plant (Tuas; Singapore)
Denka Advantech Pte. Ltd. South Plant (Tuas South; Singapore)* Consisting of 12 major affiliates in charge of production:
Denka Singapore Pte. Ltd. (Merbau and Seraya), Denka Advantech Pte., Ltd. (Tuas and Tuas South), Denka Advanced Materials (Suzhou) Co., Ltd., Denka Chemicals
Development Suzhou Co., Ltd., Denka Inorganic Materials Tianjin Co., Ltd., Denka Polymer Co., Ltd., Denka Seiken Co., Ltd., CRK Corporation, Hinode Kagaku Kogyo
and Denka Azumin Co., Ltd.

8

Denka Group CSR Report 2015

Tuas

43%

Denka Group CSR Report 20159

Reference
資料編

Productand Labor Safety Management Systems / Optimizing Logistics
製品マネジメントシステム

We Consider Safety, Environmental Protection and Quality in All Our Processes, from Raw
Materials Procurement to Research, Production, Logistics, Consumption and Disposal.
Product Safety Management
Flowchart

We ensure product safety at each phase—from development and production touse by customers—while focusing on maintaining and improving quality.
1. Development

Verify raw material safety
and required quality level
Production process design

1. Verify the Safety of Raw Materials and Required Quality Level and Engage in
Production Process Design
We select and use raw materials for which safety can be verified while developing
products that conform with customer and legal demands. We establish production
processes that ensure consistent quality and thus trust in the products we develop.

2. Raw Materials

2. Green Procurement and Purchasing Specifications
We purchase and use raw materials based on the Negative List, which takes into
Green procurement
Purchasing specifications consideration Japanese and international environmental management regulations, aswell as purchasing specifications that outline the required characteristics of purchased
raw materials. Consequently, we are striving to manufacture superior products from
quality raw materials and production processes.
3. Outsourced Raw
Material Production

3 & 5. Manufacturing Vendor Audits
We outsource some raw material production processes and the manufacture of semiprocessed goods. We regularly audit manufacturing vendors based on our in-housestandards for quality, logistics, environmental management and product safety.

Vendor audits

4. Production

ISO 14001, ISO 9001 andGood Manufacturing Practices (GMP*1)① 原材料
5. Outsourced
Processing and
Production

6. Disposal
Waste contractor
auditsVendor audits

7. ProductsManagement of environmentallyhazardous substances(Negative List)

8. Logistics
Yellow cards
Container labels*2

9. Customers
Safety data sheets (SDS)

MSDSplus*3
AIS*3

10

Denka Group CSR Report 2015

4. Maintain/Improve Environmental Protection and Quality
We are undertaking environmental and quality management operations; gradually
expanding the scope of our efforts to include new products; and working to maintainand improve quality, environmental protection and safety.
6. Waste Contractor Audits
We commission waste contractors in line with the Waste Management and Public
Cleansing Law, requiring them to issue manifests and confirm collection. We regularly
evaluate the operations and financial positions of these vendors and visit their waste
processing sites.
7. Management of Environmentally Hazardous Substances in Products
We established the Negative List, which lists substances that are considered tobe harmful to people and the environment. We are taking steps to ensure productquality and safety while reducing environmental load by placing restrictions on usage
during the raw material phase and by decreasing the residual volume of harmful
substances in our products. The Advanced Technologies Research Institute analyzes
the amount of residual substances harmful to the environment contained within raw
materials and products. Analytical data verifying that the amount of such substances isbelow regulatory limits is shared with the production, sales, and analysis and productmanagement departments.
8. Displaying Yellow Cards and Yellow Card Container Labels
We require drivers to carry yellow cards that explain post-accident procedures. We alsolabel containers to ensure swift and proper remediation. We regularly inform drivers of
our requirements and conduct emergency drills.
9. Safety Data Sheets (SDS)
We produce these sheets for all products to ensure proper handling according tophysical and chemical hazards and health and environmental risks. The sheets informcustomers and help educate employees. We have begun disseminating information on
environmentally hazardous substances contained in our products to customers throughthe Material Safety Data Sheet plus (MSDSplus)—which supplements information
conveyed on SDS sheets—and Article Information Sheet (AIS) systems.

Quality Symposia and SQC Education
In line with Companywide quality policy, Denka aims tobetter employ the statistical quality control (SQC) method
to promote R&D and quality engineering. With this in mind,
the Company implements education programs focused on
SQC while holding quality symposia aimed at sharing quality
management techniques.
Employee Education on the SQC Method
Four years ago, we began providing training in statistical
data analysis, and a cumulative total of 72 employees haveparticipated. Thanks to these efforts, a number of engineers
and researchers have become capable of employing the SQC
method to resolve technological issues while taking the leadin rolling out best practices beyond sectional boundaries.
We have also appointed SQC leaders at each businesssite to serve as trainers and are providing them withadvanced expertise through quarterly training sessions aimed
at enhancing their teaching skills. Simultaneously, we makesure that personnel at all business sites are equipped withan adequate level of SQC skills through uniform education
programs.
In fiscal 2014, we began promoting the “design ofexperiment” (DOE) method to accelerate our R&D. With
lectures centered on the purpose and benefit of the method
as the starting point, we will strive to help employees apply
this method in their day-to-day operations.

Quality Symposia
On February 13, 2015, we held our fifth quality symposium,with representatives from Denka plants, R&D and quality
assurance sections and affiliates’ manufacturing sections
giving a total of nine presentations on the theme of SQC
application and quality improvement best practices. The
success of this symposium attests to the steady progress
we have made with SQC through our ongoing employee
education programs. Building on this success, we willencourage discussion between young engineers by hosting
in-house academic meetings centered on the practicalapplication of SQC methods.

Giving a presentation at the quality symposium

Collaborating in Chemical Industry Initiatives
HPV (High Production Volume) Program
Denka has been participating in the HPV program, in which
chemical companies collaboratively evaluate the safety ofaround 1,000 substances that are used heavily worldwide
and are designated as priority substances by the Organisation
for Economic Co-operation and Development (OECD). The
Company also takes part in the Japan Challenge Program,a similar initiative undertaken by the domestic chemicalindustry. Since fiscal 2011, Denka has participated in JIPS,*4
an initiative sponsored by the Japan Chemical Industry
Association (JCIA) in support of GPS.*5 Under JIPS, we collectand disclose information on hazardous substances while
carrying out risk assessments. This initiative also resulted in
preparing and posting GPS/JIPS Safety Summaries for threesubstances on the GPS portal site run by the JCIA.

LRI (Long-range Research Initiative)
The JCIA, the American Chemistry Council and the European
Chemical Industry Council oversee this program. The program
entails conducting long-term basic research to correctly
determine if and/or in what manner chemical substances
affect human health and the environment. Currently, thesebodies are engaged in long-term basic research studies
exploring such issues as the impact of exposure to chemicals
on human health as well as the ecological (environmental)
toxicity of chemicals while promoting the development andevaluation of novel risk assessment methods. In fiscal 2015,
we continue to participate in this initiative.

*1. Good Manufacturing Practices (GMP) refers to standards that Japan’s Ministry of Health, Labour and Welfare established in its Ministerial Ordinance on Standards for
Manufacturing Control and Quality Control for Drugs and Quasi-drugs.
*2. The Japan Chemical Industry Association created a labeling format to augment the Yellow Card system. The labels present emergency guideline numbers and United
Nations identification numbers for different chemicals transported simultaneously in relatively small amounts on the same vehicle. The labels aid in the proper handling ofthese chemicals in emergencies.
*3. The Joint Article Management Promotion-consortium (JAMP*)’s Material Safety Data Sheet plus (MSDSplus) and Article Information Sheet (AIS) systems provide
standardized formats for presenting information on substances subject to management. MSDSplus is mainly for substances and agents that are upstream in the supply
chain. Article manufacturers produce AISs based on that information. JAMP aims to spread its systems throughout Japan and Southeast Asia.
* JAMP is a cross-industry association established in Japan in 2006 to encourage companies to properly manage information on substances and compounds as well as
on chemical substances in parts, plastics and other articles. JAMP also establishes mechanisms to disclose and present information on supply-chain products.
*4. Japan Initiative of Product Stewardship (JIPS): Domestic chemical manufacturers’ voluntary initiative to control the risk chemical substances pose encompassing their
supply chains.
*5. Global Product Strategy (GPS): A voluntary initiative promoted by the International Council of Chemical Associations (ICCA) to control the risk chemical substances pose.

Denka Group CSR Report 201511

Reference

Product and Labor Safety Management Systems / Optimizing Logistics

Introducing a System for Handling Customer Complaints
In May 2014, we introduced a system for handling customer
complaints on a Companywide basis. Employing a centralized
database that contains such information as the content ofcustomer complaints, our responses and steps taken toprevent recurrences as well as the verification of steps taken,
the system is helping us confirm the status of each complaint

on a real-time basis, thereby speeding up information sharing
and response time. Moreover, we analyze the database tofurther enhance product quality and customer satisfaction.
By addressing all negative customer feedback, including
complaints, we are doing our best to accommodate requests
for even greater product quality.

Optimizing Logistics Operations
Response to the Revised Law Concerning the Rational
Use of Energy

0.02460.02440.0247104.8%

98.3%

99.1%

101.6%

38,50034,70034,80036,70734,061* Crude oil equivalent divided by cargo volume

OHSAS18001

2797888

February 6, 2007

Omi Plant

OSHMS

10-15-6

March 8, 2010

OHSAS18001

SNG6011133

January 23, 2011

DSPL Seraya Plant

Change Management
This encompasses establishing rules to assess risks andimplement measures where needed for changes in the
4Ms* during production. Preliminary safety assessments
are important when building plants that use new processes.
Change management comes into play when we upgrade
or modify facilities. Facilities and operations departments
conduct preliminary safety assessments and meet with inhouse third parties to discuss risks relating to fires, explosions
and worker safety. In particular, we emphasize preventing
key lapses in areas concerning disaster prevention andoccupational health.
* 4Ms: Man, Machines (facilities, equipment, tools), Materials (raw materials andcomponents) and Methods (including work methods/operations, processing
conditions and formulas)

Consider ways to reduce safety and security risks
and incorporate them in detailed designs
and equipment production specifications

Assess process suitability
at planning stage

Commercial operation

0.025099.6%

Chiba Plant

Test operation

0.0239Acquisition Date

Additional precautionary work2014
518,700

Certification
NumberConfirmation upon completion

2013
567,484

Certification
SystemPlant Name

Construction and equipment production

2012
532,709

management and promotion activities equivalent to thoseprescribed by a certified system.

Detailed designs and orders

2011
521,131

Denka conducts risk assessments to monitor the degreeof risk at each plant. Based on assessment results, we
comprehensively manage risks and implement improvements.
The status of certification acquisition from external institutions
is as in the following table.
Although the Shibukawa Plant has not acquired
certification for its occupational safety and healthmanagement system, the plant is implementing safety

Preliminary safety assessment

CO2 emissions (t-CO2)

2010
605,609

Occupational Safety and Health Management System

Approval(FY)
Shipment volume(1,000t-km)
Energy consumption
intensity*
Change from fiscal 2012

Streamlining Chloroprene Rubber Transportation
Previously, when transporting chloroprene rubber, which
is produced and boxed at the Omi Plant and shipped to
Yokohama Port, the loaders have avoided stacking it on thetruck bed due to problems with “blocking,” in which rubber
tips adhere to each other when weight is applied to them fromabove. Recently, however, we devised a loading method thatuses cushioning materials to prevent blocking from occurring.
Thanks to this method, the products are now shipped indouble-stacked
boxes, improving
loading efficiency
approximately 6%
and in turn leadingt o re d u c t i o n s i nboth environmental
burdens and transportation costs.

Loading raw material coal

Deliberation

Energy Saving Status

Isesaki Plant employee wearing a power-assist
suits

Loading products into a rail container

Decision on facilities outline and budget* Designated under the Revised Law Concerning the Rational Use of Energy:
Business operators whose annual transportation volume exceeds 30 million
t-km are obligated to fulfill specific requirements under said law, including
submitting reports on their energy-saving targets and achievements.

Logistics Safety Working Team/
Logistics Safety Inspections
Select members from logistics sections throughout all
domestic sites carry out annual safety inspections encompassing all production sites to assess the status of logistics
operations, such as shipping, loading and unloading, as well
as related facilities. In fiscal 2014, inspections at the Isesaki
Plant involving thetrial introductionof “power-assist
suits” that employ
compressed air toreduce the burden
on onsite operators
confirmed thesuperiority of thisequipment.

The Omuta Plant has been shipping calcium cyanamide to
the Company’s logistics bases in Ibaraki Prefecture usinglarge trucks. In response to recent growth in transportation
volume, we are promoting a modal shift, switching overfrom truck to railtransportation. In
fiscal 2014, thevolume of products
transported
using the lattermethod totaled
approximately
2,000 tons.

Streamlining the Marine Transportation of “Hon Gai Coal”
Until fiscal 2014, the Omuta and Omi plants had been
separately purchasing and shipping “Hon Gai Coal,” anunprocessed coal from Vietnam. The two plants have nowcommenced collective procurement, transporting the coalfrom Vietnam to their respective sites using a single vessel.
As a result, CO2 emissions and transportation costs bothdecreased significantly.

Process review

As a designated shipper,* we are continually working to further
streamline such logistics operations as the transportationand storage of products to reduce environmental burdens
while striving to improve customer satisfaction. In recent
years, the domestic transportation industry has been facing
a chronic manpower shortage affecting trucking and coastal
shipping operations. Denka thus considers securing stabletransportation channels as essential as the streamlining of its
logistics operations.
In line with its new growth strategy under the Denka100
Companywide initiative launched in 2013, Denka is striving
to scrutinize every cost element, implementing various steps
aimed at optimizing logistics operations. Specifically, weare striving to enhance the environment-friendliness, costeffectiveness and efficiency of operations in a bid to create anext-generation logistics structure.
In fiscal 2014, the Company’s total shipment volume wasapproximately 519 million t-km, down 8.6% compared withfiscal 2013, with CO2 emissions attributable to transportation
decreasing 7.2% year on year. However, energy consumption
intensity deteriorated 1.6% year on year, reflecting a fall inthe volume of cement transported by sea, which is a highly
energy efficient method. We will continue striving to reduceenergy consumption intensity while optimizing our logistics
operations.

Initiatives Undertaken by the Logistics Subcommittee
In addition to reviewing our distribution structure, we are
striving to reinforce our logistics platform.

Modal Shift in Calcium Cyanamide Fertilizer Transportation

Confirm that instructions havebeen implemented and order
additional precautionary work

Double-stacked chloroprene rubber

12

Denka Group CSR Report 2015

Denka Group CSR Report 201513

Reference
資料編

Reference

Environmentand Energy-Related Subsidies
製品マネジメントシステム

Environmental Accounting

We Proactively Utilize Subsidy Programs to Develop Technologies
That Lead to Ecological and Energy-Saving Solutions.

We Apply Environmental Accounting Covering Investments andSpending and Their Environmental and Economic Effects.

Initiatives under the Government Subsidy Programs

Conservation Costs

As part of its activities to reduce the environmental burden
as well as energy consumption, Denka actively utilizes
subsidy programs provided by the Japanese Ministry of theEnvironment (MOE) and the Ministry of Economy, Trade andIndustry (METI). It also utilizes subsidies aimed at facilitating
public-private cooperation in advanced technology pilot
projects as well as at encouraging Japan-based production
and R&D facility construction. During the fiscal 2010 to 2014
period, Denka received subsidies and approvals for subsidies
for 14 projects, all of which have proven effective in achieving
their objectives. In fiscal 2014, the value of subsidies to which
Denka was entitled totaled ¥1,895 million. Here, we introduce
details of projects subsidized during fiscal 2014.
Energy-Saving Initiatives
The installation of high-performance freezing equipment andan ingredient feeding machine, at the Omi Plant’s chloroprenerubber and cement production facilities, respectively, wascovered by a METI subsidy program for the rationalization ofbusiness operators’ energy use. Similarly, the upgrading of
the Chiba Plant’s styrene production facility to reduce steam
and fuel consumption and the installation of a highly efficientdehydrator in the plant’s ABS production facility were granted
subsidies under the aforementioned scheme. Efforts are now
under way to further reduce energy consumption at both plants.

1
2

Advanced Technological Development, etc.
Utilizing the Subsidy for Advanced Technology Demonstrationand Evaluation Facility Development and the Novel
Semiconductor Power Electronics Project Realizing Low
Carbon Emission Society, the Omuta Plant pursues theverification of cutting-edge boron nitrate (BN) technologies
while developing SiC power modules. Also, the Denka
Innovation Centers’ Advanced Technologies Research Instituteis engaged in the R&D of ground-breaking technologies fornext-generation lithium ion secondary batteries backed bya subsidy under the Program for Accelerating BreakthroughInnovation for Practical Applications. Meanwhile, in 2015, theChiba Plant successfully launched its ultra-pure acetylene
black production facility constructed utilizing the Subsidy for
Domestic Location Promotion Projects.

Category

Project

Business site

Subsidy title, relevant authority

Fiscal year

Energy saving

Introduction of energy-saving burners for cement calcining,etc.

Omi Plant

Subsidy program for the rationalization of business
operators’ energy use (METI)FY2011Introduction of the latest technologies at petrochemical plants(styrene monomer-related facilities)

Chiba Plant

Subsidy program for the rationalization of business
operators’ energy use (METI)FY2011FY2012

Energy saving

The Company’s environmental investments in fiscal 2014 were mainly accounted for by the following items: implementationof environmental burden reduction measures (48%); introduction of energy-saving facilities (33%); R&D spending focused on
developing energy-saving products (10%); and investments for the effective use of resources (9%).
Conservation Cost Category

Conservation Costs (millions of yen)

Details1) Business site costs

Investments

Expenses

1,616

2,767

(Subtotal)a) Pollution prevention

Environmental burden reduction

871

2,141

b) Environmental conservation

Energy saving

591

100

c) Recycling resources

Effective use of resources

154

526

2) Upstream and downstream costs

Change of raw materials, etc.

003) Administrative costs

Educational activities

0224) R&D costs

Development of energy saving products, etc.

180

951

5) Social activity costs

Educational activities

0116) Environmental damage costs

Community relations

0

94

0

0

1,797

3,845

7) Others
Total

Conservation Effects
We have calculated our environmental load data. For more details, please also refer to the CSR Report 2015 (print or online version)and site reports.
Environmental LoadUnits

CO2 emissions (from energy and non-energy sources)

10,000t

FY2013 Results

FY2014 Results

234

Effects

229

SOx emissions

t

84

65

19

t

4,460

4,250

210

Energy saving

The improvement of heat recovery at the Omi Plant’s POVAL
production facilities

Omi Plant

Subsidy program for the rationalization of business
operators’ energy use (METI)FY2012FY2013

4

Energy saving

The introduction of high-performance burners for cement
production

Omi Plant

Subsidy program for the rationalization of business
operators’ energy use (METI)FY2013

5

Energy saving

Introduction of the latest steam and fuel consumption
reduction technologies at petrochemical plants

Chiba Plant

Subsidy program for the rationalization of business
operators’ energy use (METI)FY2014FY2016

6

Energy saving

Introduction of high-performance freezing equipment forchloroprene rubber-related facilities and upgrade of cement
production-related facilities

Omi Plant

Subsidy program for the rationalization of business
operators’ energy use (METI)FY2014FY2015

7The
environment

CO2 emissions reduction initiative through a fuel changeoverfrom A-class heavy oil to town gas and LPG

Shibukawa Plant

Voluntary Emissions Trading Scheme (MOE)

FY20108The
environment

Development of a method to recycle slaked lime generated
from acetylene manufacture into cement products

Omuta Plant

Environment Research and Technology Development
Fund (MOE)

FY2011FY20129The
environment

Promotion of CO2-SUICOM environment-friendly concrete

Omi Plant

Subsidy program for verification of carbon dioxide
capture and storage (CCS) technologies (METI)FY2014FY2016

10

Advanced
technology

Demonstration of a high-frequency induction furnace forsilicon nitride

Omuta Plant

Subsidy for Advanced Technology Demonstration and
Evaluation Facility Development (METI)FY2012FY2013

11

Advanced
technology

Demonstration of a boron nitride production facility (for use innext-generation high-heat conductive fillers)

Omuta Plant

Subsidy for Advanced Technology Demonstration and
Evaluation Facility Development (METI)FY2013
FY2014

Category

Item

Details

Effects (millions of yen)

12

Advanced
technology

Establishment of an R&D facility for next-generation LiBs

Advanced
Technologies
Research Institute

Program for Accelerating Breakthrough Innovation for
Practical Applications (METI)FY2014

Profits

Proceeds from selling waste from core operations and income from recycling
waste

Sales profits

565

13

Advanced
technology

Development of high-output and high-density SiC power
modules capable of withstanding high voltage

Omuta Plant

Novel Semiconductor Power Electronics Project
Realizing Low Carbon Emission Society (METI)FY2014FY2016

Energy saving

728

Domestic
business
location

Establishment of a facility for producing a high-performance
conductive agent (acetylene black) for use in lithium ion
batteries

Effective use of resources

36

Chiba Plant

Subsidy for Domestic Location Promotion Projects (METI)FY2013
FY2014

Denka Group CSR Report 2015

5

NOx emissions

3

14

14

Environmental Load Reduction
Launched by a consortium consisting of The Chugoku ElectricPower Co., Inc., Kajima Corporation, Denka (Omi Plant)
and LANDES Co., Ltd., a project aimed at facilitating the
popularization of CO2-SUICOM environment-friendly concrete
was selected for METI’s subsidy program for verification ofcarbon dioxide capture and storage (CCS) technologies. In
addition, the product won the 2014 Environment Minister’sAward for Global Warming Prevention Activity.

Soot and dust emissions

t

73

72

1

COD (BOD) discharges

t

860

760

100

1,000m3

Water used
PRTR substance emissions
Waste
Final landfill waste
CO2 emissions from transportation

76,75070,360

6,390

t

90

76

14

1,000t

123

119

4

t

210

156

54

1,000t37

34

3

Economic Effects
To present the actual economic effects of our environmental conservation measures, we calculated proceeds from selling andrecycling waste as well as cost reductions in the form of energy savings and reductions in waste treatment costs.

Costreductions

Lowering energy costs by conserving energy
Reducing waste treatment costs by conserving or recycling resources
Total

1,329

Denka Group CSR Report 201515

Reference
資料編

The Denka Group’s Environment-Friendly Products and Technologies

Employing Proprietary Technologies, We Offer Products and Solutions
That Contribute to Environmental Protection and Social Development.
Category:
Category:

Protect the environment/
Improve the operational environment

Reduce GHG emissions

Reduce weight offinished goods

Save resources and energy

Contribute to society

Category

Department

Product Name

Application

Denka AN Plate
Denka SN Plate
ALSINK

Rolling stock, industrial
instruments, electric and hybrid
vehiclesCeramic-based electronic circuit substrates with superior heat dispersion
capabilities that, when used in such components as inverters and drive
transistors, facilitate downsizing while ensuring greater reliability and superiorenergy efficiency

Advanced Specialty
Materials Dept.

ALONBRIGHT

Phosphor for LEDs

A phosphor for white LEDs used in LCD TV backlights and various types of LED
lighting that helps to significantly reduce energy consumption and greenhousegas emissions

Electronic circuit substrates for
air conditioners and automotiveparts

An electronic circuit substrate used in invertors that effectively disperses theheat emitted by drive transistors to protect electronic circuits and facilitates theirdownsizing while enhancing energy efficiency

Electronic circuit substrates for
LEDs

Electronic circuit substrates that help improve LED luminous efficiency byeffectively dissipating the heat generated during use

Automotive parts, smartphones
and tablets

Silicon materials packed with ceramic filler that boast high thermal conductivity
for use in hybrid and electric vehicles as power semiconductor heat dissipaters,
facilitating the downsizing of automotive parts and enhancing their energy
efficiency

HITT PLATE
Electronic Products
Dept.

Electronic Products
Dept.

Advanced Specialty
Materials Dept.

Silicon nitride

Advanced Specialty
Materials Dept.

Molded BN products

Advanced Specialty
Materials Dept.

Spherical fused silica filler

Bearings for wind power
turbines, mold-release agentsfor manufacturing silicon ingots
for solar cells

High-strength ceramic material used in the bearings of wind power turbines toenhance durability while significantly reducing facility maintenance workload. It
is also used as a mold-release agent in the manufacture of silicon ingots being
processed into solar cells.

LED manufacturing equipment

Used in LED chip manufacturing equipment as an excellent, easy to castinsulation material

Semiconductor encapsulant
fillers

LEDs

Added to a resin matrix as a heat-conducting filler for the purpose of dissipating
the heat generated by LED chips and thereby enhancing LED’s luminous
efficiency

Adhesives &Solutions Dept.

HARDLOC (SGA)

Metal adhesive (substitute forwelding)

A room-temperature hardening adhesive that can be substituted for conventional
metal welding, reducing energy consumption significantly while eliminating theneed to reshape heat-deformed metal

Adhesives &Solutions Dept.

TEMPLOC

Temporary adhesives forthe processing of glass insmartphones

A temporary UV-curing fixing adhesive that can be removed with hot water
rather than solvents, thereby reducing environmental burdens attributable towastewater treatment and heat processing while facilitating cost reductions byenabling “laminated-glass cutting”

Adhesives &Solutions Dept.

SOLARLOC

Temporary adhesives used
for slicing silicon ingots being
processed into solar cells

A two-component type adhesive removable with hot water rather than organic
solvents, thereby reducing environmental burdens attributable to wastewater
treatment and heat processing

Denka Group CSR Report 2015

Product Name

Application

Special Cement
Additives Dept.

EIEN/SUICOMEIEN: Embedded concretemolds, radioactive waste
containers
SUICOM: Vegetation blocks,
foundation blocks

Save resources and energy

Contribute to society

Benefits
Incorporating special cement additives, EIEN can densify the internal structureof concrete by reacting with carbonate ions. In addition to absorbing CO2 during
production, by helping prolong the lives of buildings it reduces the need for CO2emitting demolition and construction processes.
During production, SUICOM absorbs CO2, working to harden concrete throughthe carbonization of a special cement additive made using slaked lime, which
generates no CO2 even at the raw material stage. SUICOM thus contributes
significantly to CO2 reduction throughout its life cycle.
- These products effectively utilize industrial byproducts emitted from steelworks
and thermal power generation plants as raw materials.

Special Cement
Additives Dept.

Denka Σ1000, 2000, 6000

Concrete piles, propulsive pipes,
box culverts, high-strength
piles, pillars for buildings,
concrete secondary products,
cast-in-place concrete- When supplemented with Σ1000 and 2000, high-strength concrete canbe made through steam curing. These products also perform well with blast
furnace cement made of recycled steel slag. Concrete made of blast furnace
cement supplemented with Σ1000 realizes approximately 40% or lower CO2
emissions intensity than autoclave cured cement.
- Σ6000 reduces high-strength concrete’s CO2 emissions intensity by morethan 30%. Moreover, the concrete produced boasts superior abrasion
resistance and durability and can be recycled multiple times.
- This product effectively utilizes the industrial byproducts of steelworks andthermal power generation plants as raw materials.

Special Cement
Additives Dept.

F-DAC

Additive used for vibratingcompaction- F-DAC helps shorten time required for the pre-curing and steam curing
processes, thereby contributing to the reduction of CO 2 emissions. It
also performs well with blast furnace cement made from recycled steelslag. Concrete produced using blast furnace cement and F-DAC realizes
approximately 40% lower CO2 emissions intensity than steam-cured concrete.
- This product effectively utilizes industrial byproducts emitted from steelworks
and thermal power generation plants as raw materials.
- NATMIC hardens quickly and thus is used as a shotcrete for tunnel
construction. It also performs well with blast furnace cement made withrecycled steel slag. When this product is added into blast furnace cement, theresulting concrete’s CO2 emissions intensity is approximately 50% lower thanthat of other types of concrete supplemented with the product.

Special Cement
Additives Dept.

NATMIC (T-10)

Shotcrete (high strength and low
dust generation)

Special Cement
Additives Dept.

Denka slurry shot method(NATMIC US-32, US-50)

Shotcrete for tunnels

This method applies quick-hardening cement as a shotcrete for tunnel
construction. It reduces dust and concrete splash during the spraying process,thereby helping to improve the workplace environment while decreasing material
loss.

Special Cement
Additives Dept.

Clear shot method(NATMIC LSA, USS)

Shotcrete for tunnels

Employing quick-hardening cement with a low alkaline content, this method
improves the workplace environment in tunnel construction. By reducing dust
and concrete splash, it also helps to decrease material loss during the spraying
process.

Special Cement
Additives Dept.

Electrochemical repair

Countermeasure against
concrete deterioration due toneutralization and salt damage,etc., Denka TECHNOCRETE
SystemDesalination (electrochemical repair) is an environment-friendly repair
method capable of reducing CO 2 emissions by approximately 30%
compared with conventional surface repair methods. Moreover, a surface
coating applied after a repair reduces the need for future repairs as well as
CO2 emissions over a structure’s useful life.

Cement Department

Denka Cement

Utilization of industrial waste

With the aim of contributing to a recycling-oriented society, this product utilizes
waste produced by nearby municipal bodies and industrial byproducts as raw
materials and fuels for cement production. It also utilizes scrap wood in abiomass boiler that powers the Omi Plant’s production system.

Special Cement
Additives Dept.

Super Cement

Emergency repair of roads,
railways and airports

This ultraquick-hardening concrete gains practical strength over a short time
period, helping to restore the transportation infrastructure quickly at times of
emergency.

An incombustible filler with form- and size-modified particles that is mixed into
the encapsulant used for semiconductors. Capable of protecting circuits fromtemperature fluctuations, it can be used to reduce the need for hazardous flame
retardants.

Spherical alumina

Advanced Specialty
Materials Dept.

16

Thermally Conductive Sheets

Department

Benefits

Electronic Products
Dept.

Electronic Products
Dept.

Reduce weight offinished goods

Infrastructure & Inorganic Materials Division
Category

Electronics & Innovative Products Division

Protect the environment/
Improve the operational environment

Reduce GHG emissions

Denka Group CSR Report 201517

Reference

The Denka Group’s Environment-Friendly Products and Technologies

Category:

Protect the environment/
Improve the operational environment

Reduce GHG emissions

Reduce weight offinished goods

Save resources and energy

Contribute to society

Infrastructure & Inorganic Materials Division
Category

Department

Application

Benefits

F-DAC, B-FORM

Concrete secondary products

Facilitating the hardening and solidification of concrete, this cement additive
shortens curing time while reducing fuel use, thereby enhancing production
efficiency and cost effectiveness.

Special Cement
Additives Dept.

SUNTIGHT T-K, T-F

Repair and maintenance ofsewage systems

This acid-resistant mortar for repair and maintenance use can enhance sewage
systems’ durability, preventing the deterioration of concrete due to sulfuric acid
exposure.

SUQCEM

Cement Department

Denka SOIL PACK SP20,
SP2000

Soil stabilization materials that strengthen soft ground by causing dehydration
when mixed directly into the soil.

Special Cement
Additives Dept.

ES, ES-L

Boasting high durability, these cement-based quick-hardening materials
accelerate the solidification and hardening of cement in terrestrial grouting work
performed during construction.

Denka Colloidal Super

Concrete precast products

Soil liquefaction
countermeasures

CG1000, CG2000

Agri-Products Dept.

AZUMIN (Magnesium humate
soil fertilizer)

Category

Special Conductive
Materials Dept.

When mixed into desalinized soil, AZUMIN humic acid fertilizer improves
agricultural yields, thereby helping restore farmland damaged by tsunami.

Inorganic Products
Dept.

Inorganic Products
Dept.

18

Denka Group CSR Report 2015

Contribute to society

Save resources and energy

Calcium cyanamide

Synthetic FLUX COMPOUND

Denka ALCEN

Alumina cement

Fertilizer, agrochemicals*A study conducted by the National Agriculture and Food Research Organization
has estimated that the use of supplemented fertilizer in tea plantations
countrywide would have a GHG reduction effect equivalent to the planting of
200 million cedar trees. (The global warming potential of N2O is approximately
300 times greater than that of CO2)

Desulfurizing agent,deoxidizing agent

Product lineup includes Eco FLUX, which contains no fluorine.

Automobile parts (catalyst holder),materials for heating furnaces
and industrial furnaces

This alumina fiber, which is used to hold catalysts that purify automobile
exhausts, helps reduce the weight of automotive parts by facilitating the switchfrom cast iron to aluminum, thereby enhancing fuel efficiency.
It is also used as a thermal insulator for furnaces and is helping reduce heatloss. When used in fire-resistant linings, the product reduces the need for repair
work as it boasts greater heat resistance than that of ceramic fibers.

Steelmaking and refining of
non-ferrous metals

Product Name

DENKA BLACK

DENKA BLACK

Application
Lithium-ion secondary
cells (conductive aid,
activating agents forelectrodes)

Tire bladders

Boasting superior heat resistance, this product is used in fire-resistant materials
for such equipment as steel ladles, helping enhance their heat insulating
properties.

Benefits

Ultra-pure electro-conductive carbon black used as a conductive aid forelectrodes to enhance battery performance

Incorporated into bladders* used in the manufacture (vulcanization) of tires toimprove heat conductivity and thus shorten vulcanization time and contribute toenergy savings*A balloon-like device that inflates and applies pressure to hold the rubber
against the tire mold

Elastomers Dept.

Denka chloroprene

Gaskets for solar cells,
vibration insulation rubber
for wind power generation,
charging cables forelectric vehicles

Elastomers Dept.

Chloroprene latex

Aqueous adhesives

This product facilitates a changeover in chloroprene-based adhesive solventsfrom volatile organic compounds (VOCs) to aqueous solutions, thereby helping
reduce environmental burdens and improve the workplace environment.

Performance
Plastics Dept.

CLEAREN

Food packaging materials

CLEAREN can be processed at a temperature 50C° lower than that of its
competitor PET-G, while also being 20% lighter than PET-G, thereby reducing
energy use in processing and transportation.

Performance
Plastics Dept.

MS Polymer

Transparent molded resin
products

Incorporating PS as an ingredient, MS Polymer is 6% lighter than resins used
for the same applications that consist only of PMMA, and therefore requires lessenergy for transportation.

Application

Benefits

Due to its flame resistance and ability to control vibrations, this product is usedin gaskets for solar cells installed on housing rooftops and charging cables forelectric vehicles in addition to as vibration insulation rubber for wind turbine
nacelles (covers that house power generation components).

Life Science & Environment Products Division
Category

In addition to being used as a fertilizer, calcium cyanamide was certified under
the Japanese government’s J-Credit Scheme for its ability to lower emissions of
N2O attributable to the use of nitrogen fertilizers by more than 39% when it isemployed as a supplement (24% or greater ratio) to such fertilizers.*

Inorganic Products
Dept.

Reduce weight offinished goods

Boasting high strength and durability as well as excellent permeability, thissuperfine powder cement additive is used in terrestrial grouting work.

Hardening materials with plasticity, used as cavity sealants for soil improvement
work

Fertilizer, agrochemicals

Department

Special Conductive
Materials Dept.

A grout additive used as the primary injection material in the dual-tube double
packer grouting method aimed at stabilizing ground, preventing water intrusionand countering soil liquefaction

Denka S packSpecial Cement
Additives Dept.

Agri-Products Dept.

Protect the environment/
Improve the operational environment

An ultrahigh-strength fiber-reinforced concrete that significantly reduces
construction expenses and life cycle costs by facilitating the construction oflighter, stronger structures

Special Cement
Additives Dept.

Special Cement
Additives Dept.

Reduce GHG emissions

Elastomers & Performance Plastics Division
Product Name

Special Cement
Additives Dept.

Special Cement
Additives Dept.

Category:

Department

Product NameHouseholdPackaging Materials
Dept.

Denka Thermosheet FB(oxygen barrier sheet)

Food packaging

This product considerably prolongs the shelf life of foodstuffs by drawing on its
oxygen barrier property, thereby helping reduce food waste.

Environmental Film
Dept.

Denka DX Film

Back sheets for solar
panelsA fluorine-based film that boasts superior weather-resistance and thus helps
enhance the durability of back sheets for solar panels

Industrial Materials
Dept.

VINI-TAPE

Electrically insulating
adhesive tape

Adopting a low VOC content adhesive, VINI-TAPE significantly reduces
environmental burdens and hazardous substances affecting working
environments.

Housing &Environmental
Materials Dept.

Rain Oasis

Rainwater storage system

Used to collect rainwater through rain gutters. Collected rainwater may be used
for watering the garden, cooling pavements and washing cars, contributing to
the effective utilization of water resources.

Housing &Environmental
Materials Dept.

TOYODRAIN

Corrugated pipes
for construction andagricultural use

Used in construction and farmland development, TOYODRAIN contributes to theeffective utilization of water resources.

Housing &Environmental
Materials Dept.

TOYO GUTTERS

Rain gutters for housing
and other buildings

Protecting structures while contributing to the effective utilization of rainwater

Medical Science
Dept.

Macromolecular sodium
hyaluronate preparation

Joint function
improvement agent

Helping maintain quality of life by improving joint function

Denka Group CSR Report 201519

Reference

Initiatives with Our Stakeholders

Supply Chain

Local Communities
Major Educational Support Initiatives Undertaken by the Denka Group (Fiscal 2014)

The CSR Procurement Policies
1. We will maintain respect for human rights while striving to improve theworkplace environment and occupational safety and health.
2. We will pursue environment-conscious procurement, striving to securesafety and to reduce our impact on the earth’s environment.
3. We will undertake procurement activities based on compliance with
relevant laws, regulations and corporate ethics.
4. We will purchase raw materials and equipment and consign
construction work by comprehensively taking into account suchfactors as quality, prices and delivery time as well as suppliers’
technological capabilities, supply reliability and environmental
conservation initiatives.

5. We will sincerely engage with our suppliers and treat them as importantbusiness partners, fostering mutual understanding and trustworthy
relationships with them through fair business transactions.
6. We will not accept from our suppliers nor provide them with any gifts
or entertainment of value that are deemed in excess of social norms orof an inappropriate nature.
7. We will not divulge any non-public information acquired in confidence
from our suppliers in the course of procurement activities whileproperly managing and protecting their intellectual property rights.
8. We will maintain an equal partnership with all suppliers and provide
them with equal opportunities for competition in a fair manner.

The CSR Procurement Guidelines
1. Respect for Human Rights and Occupational Safety and Health:A supplier is required to include respect for fundamental human rights
and the pursuit of occupational safety and health in its corporate policy.
2. Compliance with Laws and Regulations: A supplier is required toinclude compliance with law and regulations, as well as fair corporate
activities in accordance with social ethics, in its corporate policy.
3. CSR Promotion: A supplier is required to recognize CSR as being
integral to its business activities. This entails including sustainablesocial and business development in its corporate policy andestablishing an in-house CSR promotion structure.
4. Environmental Conservation: A supplier is required to include
environmental conservation activities in its corporate policy anddisclose the status of said activities to the general public. The said
activities include the appropriate management of chemical substances
contained in its products and green procurement.

Experimental Science
Classes

Plant Tours

Internship

5. Product Quality and Safety: A supplier is required to include
quality and safety assurance in its corporate policy. Such activities
are expected to take place under an established product quality
management system.
6. Fair and Just Business Transactions: A supplier is required toinclude fair and just business transactions in its corporate policy.
7. Risk Management: A supplier is required to make sure that any risk
or contingencies it may confront are managed and controlled throughsuch means as the appropriate and timely information disclosure.
8. Contribution to Society: A supplier is required to include proactive
contribution to local communities and global society in its corporate
policy.
9. Severing Ties with Antisocial Forces: A supplier is required to
not have any relationship with antisocial forces, whether they are
individuals or entities.

Initiatives Related to Carbon Disclosure Project (CDP)*

Life Cycle Assessment (LCA) Initiative

We are promoting environmental management andbelieve that the proactive disclosure of such non-financial
information as environmental data is key to enhancing ourcorporate value. We thus began disclosing information on
our greenhouse gas (GHG) emissions employing the CDP
scheme, which covers the entire value chain. Specifically,
we established the cross-sectional CDP task force on
April 3, 2015 and sent our environmental data to its CDP
counterparts at the end of June.

We are promoting LCA for our mainstay products with aneye to ensuring the sustainability of our corporate activities.
In doing so, we are striving to utilize LCA as a means ofpromoting energy saving and CO2 reduction.

* A London-based NPO run by an association of institutional investors with theaim of encouraging businesses to disclose their environmental strategies andthe status of their GHG emissions.

The Innovation Center and Head Office The Summer Holiday Chemical Experiment Show for Children sponsored by the “Dream Chemistry 21” committee

Major Initiatives:
1) Completed LCA for 47 mainstay products (resin-based
and inorganic products as well as electronic materials)
2) Promoting the assessment of the direct and indirect
effects of environment-friendly products designed to help
reduce environmental burdens through their life cycles
3) Participating in the carbon-Life Cycle Analysis (c-LCA)
Committee hosted by the Japan Chemical Industry
Association
4) Providing LCA-related information in response tocustomers’ requests

Other Initiatives

Omi Plant

Geomaru & Nuna to Omoshiro Science and Tazawa Elementary School

Omuta Plant

Miike Community Learning Center and chemistry classes for children (Miike Community Center)

Shibukawa Plant

Ikaho Elementary School, Tsukuda Elementary School, Minami Elementary School and other neighboring elementary
schools, Shibukawa Parent-Child Festival

The Innovation Center

Fujinodai Elementary School

Omuta Plant

Miike Community Learning Center, “child reporters” from Nishi Nihon Shimbun Newspaper, Miike Technical High School and
Miyakonojo National College of Technology

Chiba Plant

Takushoku University Koryo High School, Goi Elementary School (a joint class with Maruzen Petrochemical Co., Ltd. andHitachi Chemical Company, Ltd.) and plant tours for children and parents during the school summer vacation period

Shibukawa Plant

Shibukawa Nurse College and Shibukawa Technical High School

Ofuna Plant

Kamakura Jogakuin Junior High School

Omuta Plant

Toyohashi University of Technology, Miike Technical High School and Yame Technical High School

Chiba Plant

Chiba Technical High School

Shibukawa Plant

Komochi Elementary School

20

Denka Group CSR Report 2015

Cooperating with the “Athlete Kids Project Caravan” sponsored by Japan Association of Athletics Federations

Experimental Science Classes

Plant Tours

Summer Holiday Chemical
Experiment Show for Children(Head Office)Chemistry class for children(Innovation Center)

Plant tour during the school summer Elementary school students invitedvacation period (Chiba Plant)
on a joint plant tour hosted withother local companies (Chiba Plant)

Geomaru & Nuna toOmoshiro Science (Omi Plant)

Employees who helped present
Geomaru & Nuna toOmoshiro Science

Members of Miike Community
Learning Center touring
the Omuta Plant

Students from Miike Technical HighSchool touring the Omuta Plant

Other Initiatives

Chemistry class for children held at
Miike Community Center(Omuta Plant)
Kickoff meeting

Sponsoring the Fureai Trio’s classical music concerts at elementary schools nationwide

Head Office

Experimental science class during
spring vacation (Shibukawa Plant)

The Fureai Trio performing at aconcert welcoming people withdisabilities

Denka Group CSR Report 201521

Reference

Reference

Corporate Officers (as of June 19, 2015)

Consolidated Financial Statements

Board of Directors / Audit & Supervisory Board / Executive Officers

Consolidated Balance Sheets (as of March 31, 2015)
Millions of yen

Millions of yen
Account Item

Board of Directors
Representative Director, President............. Shinsuke Yoshitaka
Representative Director............................ Mitsukuni Ayabe
Director.................................................. Tetsuro Maeda
Director.................................................. Hideyuki Udagawa
Director.................................................. Manabu Yamamoto
Director.................................................. Tadashi Hashimoto (Outside)
Director.................................................. Yasuo Sato (Outside)
Director.................................................. Akio Yamamoto (Outside)

Audit & Supervisory Board
Audit & Supervisory Board Member.......... Shohei Tamaki
Audit & Supervisory Board Member.......... Masanori Sakamoto
Audit & Supervisory Board Member.......... Tsunehiro Sasanami (Outside)
Audit & Supervisory Board Member.......... Toshio Kinoshita (Outside)

Executive Officers
President and Chief Executive Officer.............................. Shinsuke Yoshitaka
Senior Managing Executive Officer.................................. Mitsukuni Ayabe
Senior Managing Executive Officer.................................. Toshiharu Kano
Managing Executive Officer............................................ Hideyuki Udagawa
Managing Executive Officer............................................ Manabu Yamamoto
Managing Executive Officer............................................ Norihiro Shimizu
Managing Executive Officer............................................ Sanshiro Matsushita
Managing Executive Officer............................................ Kenji Nakano
Managing Executive Officer............................................ Masaharu Suzuki
Executive Officer........................................................... Ken Koizumi
Executive Officer........................................................... Tetsuya Shinmura
Executive Officer........................................................... Junichi Kimura
Executive Officer........................................................... Toshio Imai
Executive Officer........................................................... Hideki Hirano
Executive Officer........................................................... Koichi Taguchi
Executive Officer........................................................... Hideki Watanabe
Executive Officer........................................................... Toyoki Yokoyama
Executive Officer........................................................... Koki Tabuchi(Ref.) Fiscal 2013

Fiscal 2014

Account Item

(Ref.) Fiscal 2013

Fiscal 2014

Assets431,347445,569

Liabilities

241,831234,771

Current assets
Cash and deposits
Notes and accounts receivable,
trade
Merchandise and finished goods

164,747
8,427

170,497
9,219

83,701

83,172

41,98944,103Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Commercial paper
Current portion of long-term loans payable
Current portion of bonds
Accounts payable–other
Income taxes payable
Accrued consumption taxes
Accrued expenses
Provision for bonuses
Other

163,645
54,23845,501
10,0004,504
5,000
16,231
3,927
445
7,584
2,428
13,783

160,101
47,40147,4569,000
12,57012,015
5,525
1,799
8,095
2,544
13,692

Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Net defined benefit liability
Other78,18525,00030,663
3,478
9,609
8,531
903

74,66930,00023,509
6,114
8,879
5,262
903

Net Assets

189,516

210,798

Shareholders’ equity

170,894

182,722

Capital stock

36,99836,998

Capital surplus

49,28449,284Retained earnings

89,562

99,080(4,951)(2,641)

Accumulated other comprehensive
income16,762

26,043Work in process

2,554

2,725

Raw materials and supplies

18,272

17,687

Deferred tax assets

1,906

1,994

Other

8,201

11,851(305)

(256)

Allowance for doubtful accounts
Non-current assets

266,599

275,071

211,783

211,864

Buildings

36,05536,957Structures

17,78018,125

Machinery and equipment

80,38574,198Property, plant and equipment

Vehicles429

438

Tools, furniture and fixtures

2,612

2,481

Land

62,79663,303

Lease assets

338

344

11,38416,014

1,299
542

1,509
574

757

934

Investments and other assets
Investment securities

53,517
46,562

61,69855,356Long-term loans receivable

821

1,430

Long-term prepaid expenses

2,402

1,463

Valuation difference on
available-for-sale securities

8,640

13,231

Deferred tax assets

1,039

915

Revaluation reserve for land

9,065

9,795

Other

2,752

2,573

479

3,174

(61)

(42)

Foreign currency translation
adjustment

431,347445,569

Remeasurements of defined
benefit plans(1,422)

(158)

Construction in progress
Intangible assets
SoftwareRight of using patent

Allowance for doubtful accounts
Total assets

Treasury stock

Minority interests
Total liabilities and net assets

1,858

2,032

431,347445,569

Consolidated Statements of Income (April 1, 2014 to March 31, 2015)
Millions of yen
Account item

(Ref.) Fiscal 2013

Fiscal 2014

Net sales

376,809

383,978

Cost of sales

299,671

302,381

Gross profit
Selling, general and administrative expenses

77,13855,90881,59657,54921,23024,047

Operating income
Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other

1,036
550
2,008

3,595

1,254
950
2,169

Non-operating expense
Interest expense
Other

1,010
3,211

4,221

962
3,171

Ordinary income

20,604--

2,947

Extraordinary loss
Loss on sales of non-current assets
Acquisition-related expenses

281
-

281

259

20,322
5,776
858

6,634

4,133
24,287Extraordinary income
Gain on sales of non-current assets

Income before income taxes
Income taxes–current
Income taxes–deferred

4,374

2,947

259
26,975

7,535
255

7,790

Income before minority interests
Minority interests in income

13,688114

19,184
162

Net income

13,57319,021

Note: Amounts are rounded down to the hearest million yen.

22

Denka Group CSR Report 2015

Denka Group CSR Report 201523

Reference

Reference

Consolidated Financial Statements

Non-consolidated Financial Statements

Consolidated Statement of Changes in Net Assets (April 1, 2014 to March 31, 2015)

Non-consolidated Balance Sheets (as of March 31, 2015)
Millions of yen
Account Item

Shareholders’ Equity
Capital Stock
Balance at the beginning of the
fiscal year

Capital Surplus

36,998Retained Earnings

49,28489,562

Cumulative effects of changes inaccounting policies

Total Shareholders’EquityTreasury Stock(4,951)

170,894

317

Balance at the beginning of the
fiscal year, reflecting changes inaccounting policies

36,99849,284317

89,880(4,951)

171,212

Change of items during the fiscal
year
Dividends from surplus(4,619)Net income

19,021(4,619)19,021

Purchase of treasury stock(2,892)(2,892)

5,202-

Assets349,646

353,026

Liabilities

201,826

194,928

Current assets

111,947

110,729

1,758

2,280

Current liabilities
Accounts payable–trade
Short-term loans payable
Commercial paper
Current portion of long-term loans
payableCurrent portion of bonds
Accounts payable–other
Income taxes payable
Accrued consumption taxes
Accrued expenses
Deposits received
Provision for bonuses
Other

128,144
35,07027,675
10,000123,21730,28927,675
9,000

4,000

12,0585,000
15,604
1,433
298
5,916
21,537
1,337
269

10,869
2,744
1,193
5,995
21,5001,414
477

73,681
25,00030,0004,137

71,71030,00023,229
5,845

9,609

8,879

4,799
13
122

3,619
13
124

Cash and deposits
Notes receivable–trade

2,871

2,364

Accounts receivable–trade55,18552,999Merchandise and finished goods

30,77932,200Raw materials and supplies

12,083

11,333

Prepaid expenses

772

960

Deferred tax assets

849

893

Short-term loans receivable

2,906

950

Other

4,850

6,783

(109)

(36)

Allowance for doubtful accounts
Non-current assets

237,698

242,296

176,738

175,078

Buildings

27,38028,357Structures

15,202

15,069Machinery and equipment

61,36355,685

373

363

9,199

2,310

11,509Tools, furniture and fixtures

1,593

1,655

36,99849,284

99,080(2,641)

182,722Land

60,02660,154

Construction in progress

10,798

13,792

Net Assets

147,820

158,098

Intangible assets

869

1,058

Shareholders’ equity

130,893

136,543

Software447

423

Capital stock

36,99836,998Right of using patent

421

634

Capital surplus
Legal capital surplus
Other capital surplus

49,28449,284049,28449,284-Retained earnings
Other retained earnings
Reserve for advanced
depreciation of non-current assets
Retained earnings brought
forward49,55249,552

52,892
52,892

3,651

3,781

45,90049,111

(4,942)(2,632)(0)(0)

Net changes of items other thanshareholders’ equity-

Property, plant and equipment

VehiclesMillions of yen
Accumulated Other Comprehensive Income
Valuation
Difference on
Available-for-Sale
Securities

Revaluation
Reserve for Land

Foreign Currency
Translation
Adjustments

8,640

9,065

479

Total Accumulated
Remeasurementsof Defined Benefit Other Comprehensive
IncomePlans(1,422)

Cumulative effects of changes inaccounting policies
Balance at the beginning of the
fiscal year, reflecting changes inaccounting policies

Millions of yen
Fiscal 2014

(0)

(5,202)

Reversal of revaluation reserve forland

Balance at the beginning of the
fiscal year

(Ref.) Fiscal 2013-

(0)Balance at the end of the fiscal year

Account Item

Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities for land
revaluation
Provision for retirement benefits
Long-term accounts payable–other
Asset retirement obligation

Retirement of treasury stock

Total changes of items during the
fiscal year

Millions of yen
Fiscal 2014

(Ref.) Fiscal 2013

16,762

Minority
Interests

Total Net Assets

1,858

8,640

9,065

479

(1,422)

16,762

189,516
317

1,858

Investments and other assets

60,091

66,159Investment securities

26,34831,501

Stocks of subsidiaries and affiliates

28,91130,298Long-term loans receivable

760

1,440

Long-term prepaid expenses

2,349

1,201

Other investments

1,732

1,729

(11)

(12)

349,646

353,026

Allowance for doubtful accounts
Total assets

Treasury stock

189,833

Valuation and translation adjustments

16,926

21,554

Valuation difference on availablefor-sale securities

7,861

11,758

Revaluation reserve for land
Total

Change of items during the fiscal
year-(4,619)Net income-

19,021

Purchase of treasury stock-(2,892)

Net sales

241,150

240,359

Retirement of treasury stock--

Cost of sales

190,024

187,377-

Gross profit
Selling, general and administrative expenses

51,126
38,76852,982
40,117

12,357

12,86400

Net changes of items other thanshareholders’ equity

4,591

730

2,695

1,264

9,280

174

9,454

Total changes of items during the
fiscal year

4,591

730

2,695

1,264

9,280

174

20,964

Balance at the end of the fiscal year

13,231

9,795

3,174

(158)

26,043

2,032

210,798

Note: Amounts are rounded down to the nearest million yen.

9,795
353,026

Non-consolidated Statements of Income (April 1, 2014 to March 31, 2015)

Dividends from surplus

Reversal of revaluation reserve for
land

9,065
349,646

Millions of yen
Account Item

(Ref.) Fiscal 2013

Operating income

Fiscal 2014

Non-operating income
Interest and dividend income
Other

3,018
2,278

5,297

2,996
2,437

Non-operating expense
Interest expense
Other

843
2,768

3,611

779
3,021

Ordinary income

14,042--

2,947

Extraordinary loss
Loss on sales of non-current assets
Acquisition-related expenses

281
-

281

259

Net income

13,761
2,638
852

3,490
10,2703,801
14,498Extraordinary income
Gains on sales of non-current assets

Income before income taxes
Income taxes–current
Income taxes–deferred

5,434

2,947

259
17,186

4,162
150

4,312
12,873

Note: Amounts are rounded down to the nearest million yen.

24

Denka Group CSR Report 2015

Denka Group CSR Report 201525

Reference

ReferenceNon-consolidated Financial Statements

Global Reporting Initiative (GRI) Content Index
Please see below to find disclosure information listed in the Sustainability Reporting Guidelines Version 4 (G4).

Non-consolidated Statement of Changes in Net Assets (April 1, 2014 to March 31, 2015)

Items

DMA and Indicators

Millions of yen
Shareholders’ Equity
Capital Surplus

Strategy and Analysis

Retained Earnings
Other Retained Earnings

Capital Stock

Balance at the beginning of the
fiscal year

36,998Legal Capital
Surplus

Other Capital
Surplus49,2840

Cumulative effects of changes inaccounting policies
Balance at the beginning of the
fiscal year, reflecting changes inaccounting policies

Total Capital
Surplus49,2840

Total
Total Retained Treasury Stock Shareholders’EquityEarnings

Retained
Earnings
Brought
Forward

3,651

45,90049,552288

288

36,998

G4-1

Reserve forAdvanced
Depreciationof Non-current
Assets49,28449,284

3,651

46,18949,841(4,942)(4,942)

G4-3

a. Report the name of the organization.

・Corporate Profile (p.8)

130,893

G4-4

a. Report the primary brands, products, and services.

・Denka’s Business Operations (p.9)
・The Denka Group’s Environment-Friendly Products andTechnologies (Ref. p.16-19)

288

G4-5

a. Report the location of the organization’s headquarters.

・Corporate Profile (p.8)

G4-6

a. Report the number of countries where the organization operates, and names of countries where either the organization has ・Corporate Profile (p.8)
significant operations or that are specifically relevant to the sustainability topics covered in the report.
・Major Subsidiaries and Affiliates (Site p.16-27)

G4-7

a. Report the nature of ownership and legal form.

・Corporate Profile (p.8)

G4-8

a. Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).

・Denka’s Overseas Expansion (p.8-9)

131,182

Provision of reserve for advanced
depreciation of non-current assets

-

148

(148)

-

-

Reversal of reserve for advanced
depreciation of non-current assets

-

(18)

18

-

-

Dividends from surplus-(4,619)(4,619)(4,619)Net income-

12,873

12,873

12,873－(2,892)(2,892)(0)(5,202)(5,202)

5,202-

Reversal of revaluation reserve
for land

-

(0)

(0)

Net changes of items other thanshareholders’ equity--

Retirement of treasury stock

(0)

(0)

-

-

Total changes of items during the
fiscal year

-

-

(0)

(0)

129

2,921

3,051

2,310

5,361

Balance at the end of the fiscal year

36,99849,284-49,284

3,781

49,111

52,892(2,632)

136,543

Millions of yen
Valuation and Translation Adjustments
Total Net Assets

Valuation Difference on Availablefor-Sale Securities

Revaluation Reserve for Land

Total Valuation and Translation
Adjustments

7,861

9,065

16,926

147,820-288

16,926

148,109

Provision of reserve for advanced
depreciation of non-current assets--

Reversal of reserve for advanced
depreciation of non-current assets--

Dividends from surplus-(4,619)Balance at the beginning of the
fiscal year
Cumulative effects of changes inaccounting policies
Balance at the beginning of the
fiscal year, reflecting changes inaccounting policies

7,861

9,065

G4-2

Change of items during the fiscal
year

a. Report the scale of the organization, including:・Total number of employees
・Total number of operations
・Corporate Profile (p.8)
G4-9・Net sales (for private sector organizations) or net revenues (for public sector organizations)・Financial Statements (p.23-26)
・Total capitalization broken down in terms of debt and equity (for private sector organizations)
・Quantity of products or services provided
a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.
c. Report the total workforce by employees and supervised workers and by gender.
G4-10 d. Report the total workforce by region and gender.
・Engaging with Our Employees (p.30)
e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed,or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.
f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).
G4-11 a. Report the percentage of total employees covered by collective bargaining agreements.

–

G4-12 a. Describe the organization’s supply chain.

–a. Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including:・Changes in the location of, or changes in, operations, including facility openings, closings, and expansions
・Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector
G4-13–
organizations)
・Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection andtermination
・Corporate Governance (p.26-27)
・Our Initiatives to Maintain Safe Operations (p.28-31)
G4-14 a. Report whether and how the precautionary approach or principle is addressed by the organization.
・Supply Chain (p.40)
・Compliance (Ref. p.3)
・Responsible Care (RC) activities (Ref. p.6)
・Caring for the Global Environment (p.33)
a. List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization ・ISO 14001, ISO 9001 Management Systems (Ref. p.5)
G4-15
subscribes or which it endorses.
・Product Safety Management (Ref. p.10-11)
・Occupational Safety and Health Management System (Ref. p.13)
a. List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization:
・Holds a position on the governance body・Product Safety Management (Ref. p.11)
G4-16 ・Participates in projects or committees
・Life Cycle Assessment (LCA) Initiative (Ref. p.20)
・Provides substantive funding beyond routine membership dues
・Views membership as strategic
Identified Material Aspects and Boundaries
a. List all entities included in the organization’s consolidated financial statements or equivalent documents.
・Editorial Policy (p.3)
G4-17 b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by ・Business Overview (p.8-9)
the report.
・Major Subsidiaries and Affiliates (Site p.16-27)
a. Explain the process for defining the report content and the Aspect Boundaries.
・Editorial Policy (p.3)
G4-18
b. Explain how the organization has implemented the Reporting Principles for Defining Report Content.
・Denka Group’s CSR (p.24)
G4-19 a. List all the Material Aspects identified in the process for defining report content.

Net income-

12,873Purchase of treasury stock-(2,892)Retirement of treasury stock

-

-

0

0

-

Reversal of revaluation reserve
for landNet changes of items other thanshareholders’ equity

3,897

730

4,627

4,627

Total changes of items during the
fiscal year

3,897

730

4,627

9,989

Balance at the end of the fiscal year

11,758

9,795

21,554

158,098

G4-22 a. Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

–

G4-23 a. Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

・Not applicable

Stakeholder Engagement
G4-24 a. Provide a list of stakeholder groups engaged by the organization.

・Engaging with Our Employees (p.36-39)
・Supply Chain (p.40)
・Engaging with Local Communities (p.41)
・Third-Party Opinion (p.43)

G4-25 a. Report the basis for identification and selection of stakeholders with whom to engage.

・Engaging with Local Communities (p.41)

G4-26

Denka Group CSR Report 2015

・Denka Group’s CSR (p.25)

a. For each material Aspect, report the Aspect Boundary within the organization, as follows:・Report whether the Aspect is material within the organization
・If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either:–
G4-20––The list of entities or groups of entities included in G4-17 for which the Aspect is not material or––The list of entities or groups of entities included in G4-17 for which the Aspects is material
・Report any specific limitation regarding the Aspect Boundary within the organizationa. For each material Aspect, report the Aspect Boundary outside the organization, as follows:・Report whether the Aspect is material outside of the organization
G4-21 ・If the Aspect is material outside of the organization, identify the entities, groups of entities or elements for which the Aspect is –material. In addition, describe the geographical location where the Aspect is material for the entities identified
・Report any specific limitation regarding the Aspect Boundary outside the organization

Note: Amounts are rounded down to the nearest million yen.

26

a. Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about
・To Our Stakeholders (p.6-7)
the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.
・To Our Stakeholders (p.6-7)
・Denka’s Group Operations and CSR (p.10-11)
a. Provide a description of key impacts, risks, and opportunities.
・Business Strategies (p.12-23)
・Responsible Care (RC) activities (Ref. p.6)

Organizational Profile

Change of items during the fiscal
year

Purchase of treasury stock

Location of Disclosure
General Standard Disclosures

・Engaging with Our Employees (p.36-39)
・Supply Chain (p.40)
a. Report the organization’s approach to stakeholder engagement, including the frequency of engagement by type and by stakeholder
・Engaging with Local Communities (p.41)
group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.
・Third-Party Opinion (p.43)
・Initiatives with Our Stakeholders (Ref. p.20-21)

Denka Group CSR Report 201527

Reference

Global Reporting Initiative (GRI) Content Index
Items

DMA and Indicators

Location of Disclosure・Denka’s Group Operations and CSR (p.10-11)
・Engaging with Our Employees (p.36-39)
a. Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those ・Supply Chain (p.40)
G4-27
key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. ・Engaging with Local Communities (p.41)
・Third-Party Opinion (p.43)
・Initiatives with Our Stakeholders (Ref. p.20-21)
Report Profile

DMA and Indicators

Location of Disclosure

a. Report how stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on–
remuneration policies and proposals, if applicable.
a. Report the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant
G4-54–
operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.
a. Report the ratio of percentage increase in annual total compensation for the organization’s highest-paid individual in each country of
G4-55
significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid –individual) in the same country.

G4-28 a. Reporting period (such as fiscal or calendar year) for information provided.

・Editorial Policy (p.3)

Ethics and Integrity

G4-29 a. Date of most recent previous report (if any).

・Back coverG4-56 a. Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

G4-30 a. Reporting cycle (such as annual, biennial).

・Editorial Policy (p.3)

G4-31 a. Provide the contact point for questions regarding the report or its contents.

・Inquiries (p.3)

a. Report the ‘in accordance’ option the organization has chosen.
G4-32 b. Report the GRI Content Index for the chosen option (see tables below).
c. Report the reference to the External Assurance Report, if the report has been externally assured.

a. This table indicates the sections applicable to the Standard
Disclosures, but the report as a whole is not fully compliant
with the Guidelines.
b. GRI Guidelines

a. Report the organization’s policy and current practice with regard to seeking external assurance for the report.
b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided.
G4-33 c. Report the relationship between the organization and the assurance providers.
–d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization’ssustainability report.

・Denka’s Group Operations and CSR (p.10)
・The Denka Group Guidelines/Denka Principles (Ref. p.2)

a. Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational
・Compliance Hotline System (p.27)
integrity, such as helplines or advice lines.
a. Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to
G4-58
・Compliance Hotline System (p.27)
organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.
G4-57

Specific Standard Disclosures
Economic
DMA

Management approach

・To Our Stakeholders (p.6-7)
・Denka’s Group Operations and CSR (p.11)
・Business Strategies (p.12-23)
・Caring for the Global Environment (p.32-33)

Governance

Economic Performance

・Denka’s Group Operations and CSR (p.10)
a. Report the governance structure of the organization, including committees of the highest governance body. Identify any committees
G4-34・Corporate Governance (p.26-27)
responsible for decision-making on economic, environmental and social impacts.
・Our Initiatives to Maintain Safe Operations (p.28)
a. Report the process for delegating authority for economic, environmental and social topics from the highest governance body to ・Denka’s Group Operations and CSR (p.10)
G4-35
senior executives and other employees.
・Corporate Governance (p.26-27)
a. Report whether the organization has appointed an executive-level position or positions with responsibility for economic,
G4-36・Corporate Governance (p.26-27)
environmental and social topics, and whether post holders report directly to the highest governance body.
a. Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social
G4-37–
topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.
a. Report the composition of the highest governance body and its committees by:
・Executive or non-executive
・Independence
・Tenure on the governance bodyG4-38 ・Number of each individual’s other significant positions and commitments, and the nature of the commitments
・Corporate Governance (p.26-27)
・Gender・Membership of under-represented social groups
・Competences relating to economic, environmental and social impacts
・Stakeholder representation
a. Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the ・Corporate Governance (p.26-27)
G4-39
organization’s management and the reasons for this arrangement).
・Corporate Officers (Ref. p.22)
a. Report the nomination and selection processes for the highest governance body and its committees, and the criteria used fornominating and selecting highest governance body members, including:・Whether and how diversity is considered
G4-40
・Corporate Governance (p.26-27)
・Whether and how independence is considered・Whether and how expertise and experience relating to economic, environmental and social topics are considered・Whether and how stakeholders (including shareholders) are involved
a. Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflictsof interest are disclosed to stakeholders, including, as a minimum:
・Cross-board membership
G4-41
・Corporate Officers (Ref. p.22)
・Cross-shareholding with suppliers and other stakeholders
・Existence of controlling shareholder
・Related party disclosures
・"Executives" and "Organization Chart" sections undera. Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s
G4-42
Company Profile page
purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.
http://www.denka.co.jp/eng/corporate/
a. Report the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental
G4-43
・Third-Party Opinion (p.43)
and social topics.

EC1

Direct economic value generated and distributed・Engaging with Shareholders (p.42)

EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change

・To Our Stakeholders (p.6-7)
・Business Strategies (p.12-23)
・Caring for the Global Environment (p.32-33)
・Initiatives to Secure Our Electricity Supply (p.34)

EC3

Coverage of the organization’s defined benefit plan obligations–

EC4

Financial assistance received from government

・Environment- and Energy-Related Subsidies (Ref. p.14)

a. Report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental andsocial topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment.
–
b. Report actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic,
environmental and social topics, including, as a minimum, changes in membership and organizational practice.
a. Report the highest governance body’s role in the identification and management of economic,environmental and social impacts,
risks, and opportunities. Include the highest governance body’s role in the implementation of due diligence processes.
・Corporate Governance (p.26-27)
G4-45
b. Report whether stakeholder consultation is used to support the highest governance body’s identification and management of ・Denka Group’s CSR (p.24-25)
economic, environmental and social impacts, risks, and opportunities.
a. Report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for
G4-46
・Corporate Governance (p.26-27)
economic, environmental and social topics.
G4-44

G4-47 a. Report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities.

G4-49 a. Report the process for communicating critical concerns to the highest governance body.

・Risk Management (p.27)

a. Report the nature and total number of critical concerns that were communicated to the highest governance body and the–mechanism(s) used to address and resolve them.
a. Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration:
・Fixed pay and variable pay:––Performance-based pay––Equity-based pay––Bonuses––Deferred or vested sharesG4-51 ・Sign-on bonuses or recruitment incentive payments–
・Termination payments
・Clawbacks
・Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body,senior executives, and all other employees
b. Report how performance criteria in the remuneration policy relate to the highest governance body’s and senior executives’ economic,
environmental and social objectives.
a. Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether–
G4-52
they are independent of management. Report any other relationships which the remuneration consultants have with the organization.

G4-50

Denka Group CSR Report 2015

Market Presence
EC5

Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation–

EC6

Proportion of senior management hired from the local community at significant locations of operation–

Indirect Economic Impacts
EC7

Development and impact of infrastructure investments and services supported

・Engaging with Local Communities (p.41)
・Local Communities (Ref. p.21)

EC8Significant indirect economic impacts, including the extent of impacts–

Procurement Practices
EC9

Proportion of spending on local suppliers at significant locations of operation–

Environmental

DMA

Management approach

・History of Denka's Hydroelectric Power Generation (p.4-5)
・To Our Stakeholders (p.6-7)
・Denka’s Group Operations and CSR (p.11)
・Business Strategies (p.12-23)
・Caring for the Global Environment (p.32-33)

Materials
EN1

Materials used by weight or volume–

EN2

Percentage of materials used that are recycled input materials

・Overview of Environmental Impacts (p.32)
・Resource Recycling through Cement Production (p.35)

EN3

Energy consumption within the organization

・Overview of Environmental Impacts (p.32)

EN4

Energy consumption outside of the organization–

EN5

Energy intensity

・Environmental Conservation (Ref. p.7)

EN6

Reduction of energy consumption

EN7

Reductions in energy requirements of products and services

Energy・Caring for the Global Environment (p.32-33)
・Environmental Conservation (Ref. p.7)
・Optimizing Logistics Operations (Ref. p.12)
・Caring for the Global Environment (p.32-33)
・The Denka Group’s Environment-Friendly Products andTechnologies (Ref. p.16-19)

Water
EN8

Total water withdrawal by source

・Overview of Environmental Impacts (p.32)
・Fiscal 2014 Environmental Performance by Denka BusinessSites and Affiliates (Ref. p.9)・Site Reports

EN9

Water sources significantly affected by withdrawal of water・Initiatives to Secure Our Electricity Supply (p.34)

・Corporate Governance (p.26-27)

a. Report the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that
G4-48
・Denka Group’s CSR (p.24-25)
all Material Aspects are covered.

28

Items
G4-53

EN10 Percentage and total volume of water recycled and reused–

Biodiversity
EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
EN12–

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity
・Initiatives to Preserve Biodiversity (p.33)
value outside protected areas

EN13 Habitats protected or restored・Initiatives to Preserve Biodiversity (p.33)

EN14 Total number of IUCN red list species and national conservation list species with habitats in areas affected by operations, by level of extinction risk –Emissions
EN15 Direct greenhouse gas (GHG) emissions (Scope 1)

EN16 Indirect greenhouse gas (GHG) emissions (Scope 2)
EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3)・Caring for the Global Environment (p.32-33)
・Responsible Care (RC) activities (Ref. p.6)
・Environmental Conservation (Ref. p.7, 9)・Site Reports
・Caring for the Global Environment (p.32)
・Environmental Conservation (Ref. p.7, 9)
・Optimizing Logistics Operations (Ref. p.12)

Denka Group CSR Report 201529

Reference

Global Reporting Initiative (GRI) Content Index
Items

DMA and Indicators

EN18 Greenhouse gas (GHG) emissions intensity
EN19 Reduction of greenhouse gas (GHG) emissions

Location of Disclosure
・Caring for the Global Environment (p.32-33)
・Responsible Care (RC) Activities (Ref. p.6)
・Environmental Conservation (Ref. p.7, 9)・Responsible Care (RC) Activities (Ref. p.6)
・Optimizing Logistics Operations (Ref. p.12)

DMA and Indicators
Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening –HR2

Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to・Our Stance on Human Rights (Ref. p.3)
operations, including the percentage of employees trained–

Non-discrimination
HR3

EN21 NOx, SOx, and other significant air emissions

・Caring for the Global Environment (p.32)
・Responsible Care (RC) Activities (Ref. p.6)
・Environmental Conservation (Ref. p.8)・Site Reports

HR4

・Caring for the Global Environment (p.32)
・Responsible Care (RC) activities (Ref. p.6)
・Site Reports

HR5

EN23 Total weight of waste by type and disposal method
EN24 Total number and volume of significant spills

・Our Initiatives to Maintain Safe Operations (p.30)

HR6

EN27 Extent of impact mitigation of environmental impacts of products and services

・Business Strategies (p.14-21)
・Environment-Friendly Products and Services (p.33)
・Resource Recycling through Cement Production (p.35)
・The Denka Group’s Environment-Friendly Products andTechnologies (Ref. p.16-19)

・Our Stance on Human Rights (Ref. p.3)

Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at–significant risk, and measures taken to support these rights

Child Labor–

Products and Services

Total number of incidents of discrimination and corrective actions taken

Freedom of Association and Collective Bargaining

EN22 Total water discharge by quality and destination

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the basel convention2 annex I, II, III,
EN25–
and VIII, and percentage of transported waste shipped internationallyIdentity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization’s
EN26–discharges of water and runoff

Location of Disclosure

HR1

EN20 Emissions of ozone-depleting substances (ODS)

Effluents and Waste

Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the ・Supply Chain (p.40)
effective abolition of child labor・Supply Chain (Ref. p.20)

Forced or Compulsory Labor
Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to ・Supply Chain (p.40)
the elimination of all forms of forced or compulsory labor・Supply Chain (Ref. p.20)

Security Practices
HR7

Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations

・The Denka Group Guidelines (p.2)

Indigenous Rights
HR8

Total number of incidents of violations involving rights of indigenous peoples and actions taken–

Assessment
HR9

Total number and percentage of operations that have been subject to human rights reviews or impact assessments–

Supplier Human Rights Assessment
HR10 Percentage of new suppliers that were screened using human rights criteria–

Compliance

HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken–

EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations –Human Rights Grievance Mechanisms

Transport

HR12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

EN28 Percentage of products sold and their packaging materials that are reclaimed by category

EN30

–

Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and・Optimizing Logistics Operations (Ref. p.12)transporting members of the workforce

Overall・Environmental Accounting (Ref. p.15)

Supplier Environmental Assessment
EN32 Percentage of new suppliers that were screened using environmental criteria–

EN33 Significant actual and potential negative environmental impacts in the supply chain and actions taken–

Environmental Grievance Mechanisms
EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms–

SocialLabor Practices and Decent WorkDMAManagement approach・Our Initiatives to Maintain Safe Operations (p.28-29)
・Engaging with Our Employees (p.36-39)

Employment

Management approach

SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs–

SO2

Operations with significant actual and potential negative impacts on local communities

・Our Initiatives to Maintain Safe Operations (p.28-31)

Anti-corruption
SO3

Total number and percentage of operations assessed for risks related to corruption and the significant risks identified–

SO4

Communication and training on anti-corruption policies and procedures・Compliance (Ref. p.3)

SO5

Confirmed incidents of corruption and actions taken–

Public Policy
SO6

Total value of political contributions by country and recipient/beneficiary・Engaging with Our Employees (p.39)

Total number and rates of new employee hires and employee turnover by age group, gender and region

Benefits provided to full-time employees that are not provided to temporary or parttime employees, by significant locations of operation ・Engaging with Our Employees (p.39)

Compliance

LA3

Return to work and retention rates after parental leave, by gender

SO8–

Labor/Management Relations–

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and–advise on occupational health and safety programs

LA6Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender ・Our Initiatives to Maintain Safe Operations (p.28-29)

LA7Workers with high incidence or high risk of diseases related to their occupation–

LA8

Health and safety topics covered in formal agreements with trade unions

・Engaging with Our Employees (p.39)

Training and Education–

LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings ・Engaging with Our Employees (p.36-39)
LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category–

Diversity and Equal Opportunity
LA12

SO9

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

Equal Remuneration for Women and Men

Percentage of new suppliers that were screened using criteria for impacts on society

SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms

DMA

Management approach

PR1

PR4

Type of product and service information required by the organization’s procedures for product and service information and labeling, and・Product Safety Management (Ref. p.10)
percentage of significant product and service categories subject to such information requirements
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and ・Supply Chain (p.40)
labeling, by type of outcomes
・Product Safety Management (Ref. p.10)

PR5

Marketing Communications

Management Approach

Denka Group CSR Report 2015

・Supply Chain (p.40)
・The Denka Group Guidelines (Ref. p.2)
・Our Stance on Human Rights (Ref. p.3)
・Supply Chain (Ref. p.20)

・Supply Chain (p.40)
・Information Disclosure (Ref. p.4)
・ISO 9001 Management Systems (Ref. p.5)
・Product Safety Management (Ref. p.10)

Product and Service Labeling–

Human Rights–

・ISO 9001 Management Systems (Ref. p.5)
・Product Safety Management (Ref. p.10-11)
Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of ・Supply Chain (p.40)
products and services during their life cycle, by type of outcomes
・Product Safety Management (Ref. p.10)

–

–

–

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken
Labor Practices Grievance Mechanisms–

Customer Health and Safety

LA14 Percentage of new suppliers that were screened using labor practices criteria

DMA–

Product Responsibility

PR3–

Supplier Assessment for Labor Practices

LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms

・Compliance (Ref. p.3)

Grievance Mechanisms for Impacts on Society

PR2

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group
・Engaging with Our Employees (p.39)
membership, and other indicators of diversity

LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken

LA5

Average hours of training per year per employee by gender, and by employee category

SO7

Supplier Assessment for Impacts on Society

Occupational Health and Safety

LA9–Anti-competitive Behavior

LA2

Minimum notice periods regarding operational changes, including whether these are specified in collective agreements

・Our Initiatives to Maintain Safe Operations (p.28-31)
・Engaging with Local Communities (p.41)
・Compliance (Ref. p.3)

Local Communities

LA1

LA4

–

Society
DMA

EN31 Total environmental protection expenditures and investments by type

30

Items
Investment

Results of surveys measuring customer satisfaction–

PR6

Sale of banned or disputed products

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including ・Engaging with Shareholders (p.42)
advertising, promotion, and sponsorship, by type of outcomes
・Information Disclosure (Ref. p.4)–

Customer Privacy
PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data–

Customer Privacy
PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services –Denka Group CSR Report 201531