CSR Report

2015
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Mitsubishi Building, 2-5-2 Marunouchi, Chiyoda-ku, Tokyo 100-8324

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

Printed on paper made with wood fromforest thinning. “Morino Chonai-Kai”(Forest Neighborhood Association)—
Supporting sound forest management.

Contents

Editorial Policy

Interview with the President

2

Mid-Term Management Plan
—MGC Advance2017

5

Profile of Mitsubishi Gas Chemical (MGC)
Company Overview
MGC Products in Our Daily Lives
R&D Activities
Supply Chain Contributions

7
9
13
14

CSR Management
MGC’s Efforts in CSR
Corporate GovernanceCompliance and Risk Management

15
16
17

Stakeholders and MGC
Together with Stakeholders

20

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

25
27

Occupational Health and Safety, Process
Safety, and Disaster Prevention

29

Environment and Safety Management

Results of Environmental Preservation
Initiatives under the RC Medium-Term Plan
2014 (MGC alone)
Environmental Accounting (MGC alone)31
32

Environmental Impacts Accompanying
Business Activities (Domestic MGC Group)

33

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

Initiatives for the Prevention of Global Warming(MGC alone)

35

Reducing Chemical Substance Emissions(Domestic MGC Group)

Safety Management of Chemicals and Products

37
38
39
40

12 Member Companies of the MGC Group
Environment and Safety Council

42

Waste Reduction (Domestic MGC Group)
Air and Water Conservation (MGC Group)

Responsible CareAt every stage of their operations, companies
dealing with chemicals must ensure that theenvironment, safety and health aresafeguarded. This starts with the development
and manufacturing of chemicals, and goes all
the way through to distribution, use and final
disposal after consumption. It also involves
publishing the results of those activities, being
engaged and willing to communicate with society. The chemical industry refers
to this conscientious activity as Responsible Care (RC).

1

MITSUBISHI GAS CHEMICAL COMPANY, INC.

About This Report
The purpose of the ‘CSR Report 2015’ is to provide
stakeholders with information about Mitsubishi Gas
Chemical Company, Inc. (MGC) and our corporate social
responsibility (CSR) activities, to broaden understanding
about MGC and its activities.
The following guidelines were referenced during thecreation of this report to provide an easier to understandlayout using clear and concise language. This year’s
edition highlights a wide range of MGC products and how
they are used to benefit society, in order to appeal to awider audience of stakeholders. In addition, there is asection highlighting MGC’s new mid-term management
plan that was launched in April 2015. We openly welcome
your honest opinions and feedback about the contents ofthis report.
MGC stands firmly committed to promoting further
stakeholder engagement through the appropriate sharing
of information.
Scope of This Report
Organizations included
All offices in Japan. The activities of the entire MGC Groupand individual subsidiaries are also covered in certain sectionsof the report.
Reporting period
April 1, 2014 through March 31, 2015 (includes some
activities after April 2015).
However, Responsible Care (RC) activities are included fromJanuary 1, 2014 – December 31, 2014 (includes some RC
activities in 2015).

Reference Guidelines•	Ministry of the Environment, “Environmental Reporting
Guidelines (2012)”•	Ministry of the Environment “Environmental Accounting
Guidelines 2005”•	Global Reporting Initiative (GRI)	“Sustainability Reporting Guidelines Version (G3.1)”
	“Sustainability Reporting Guidelines Version (G4)”•	ISO 26000

Interview with the President

MGC Group will work collectively
together toward creating values toshare with society, under the aim ofrealizing sustainable growth

Toshikiyo Kurai
President and Representative Director

Q1

First, can you provide an overview of MGC
Group?

leverage our creative and innovative
A1 We
technologies to bring valuable chemical
products to various sectors.
Since our founding in 1918, MGC Group has continuallycreated new technologies and new value. Today, we
supply creative products to a broad range of fields, via ourcore four business segments called the Natural Gas
Chemicals Company, Aromatic Chemicals Company,
Specialty Chemicals Company and Information &Advanced Materials Company.
Under the MGC Philosophy for Being, which states“MGC contributes to societal growth and harmony bycreating a wide range of value through chemistry,” we are
currently implementing a mid-term management plan that
contains our vision for 2021, our 50th anniversary, in orderto realize sustainable growth on a global stage. FY 2014
was the second step and final fiscal year of MGC
Will2014. After examining our progress and reflecting on
areas of improvement, we have launched the new midterm management plan called MGC Advance2017
beginning in FY 2015.

During the previous mid-term management plan called
MGC Will2014, there were sudden changes in businessenvironment marked by an economic slowdown in Europe
and the consumption tax hike at home in Japan.
Unfortunately, these challenging conditions made it
impossible to reach our quantitative targets. Nevertheless,
we made a number of strategic moves for the future
growth of the company, including getting involved with ashale gas/LNG project in Canada, making JSP, with its
strengths in foaming technologies, a consolidated
subsidiary, and launching methanol and dimethyl ether
production and sales in Trinidad & Tobago. We were alsoable to build a solid foundation for achieving our futureaspirations based on the future direction of MGC Groupand a clarification of issues that must be overcome.
Under the new mid-term management plan called
MGC Advance2017, we are advancing the results of thepast three years based on our commitment from theprevious mid-term management plan and we will passdown the five basic strategies to focus on with an expanded
role compared to before. The new mid-term management
plan will seamlessly blend MGC Group’s capabilities inJapan and abroad so that we can move toward realizing
even greater dreams through the secondary challenge of“Big dreams only MGC Group can realize!”

Publication Information
Date of publication: December 2015
Date of next scheduled publication: December 2016
Disclaimer:This report contains past and present facts, in addition to information
about expectations regarding social conditions, management plansand policies of the company together with anticipated results. Theseassertions or assumptions are based on the information available atthe time of drafting, however unforeseen circumstances may lead to
unexpected social conditions or result in changes to businessactivities which are different to those expressed here.

you provide a general overview of theQ2 Canprevious mid-term management plan andapproach taken under the new mid-term
management plan?
on the issues that became clear in
A2 Based
the previous mid-term management plan,
we devised the new mid-term management
plan with the idea of making progress withcertainty.

MGC Advance2017–Five Basic Strategies
1. Enhancing the profitability of existing
businesses, especially core businesses
2. Restructuring underperforming businesses
3. Developing and creating new businesses
4. Improving group-wide operational efficiency
5. Improving total enterprise quality in supportof sustainable growth

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2

Interview with the President

Q3

Can you share some concrete measuresfrom the new mid-term business plan?

will seek out growth opportunities
A3 We
based on the five business strategies.
The first basic strategy is enhancing the profitability ofexisting businesses, especially core businesses. This isbecause it takes time until a new business venture willcontribute to earnings. Under the new mid-term
management plan, we have defined eight core and two
semicore businesses (see pages 5 and 6), based on which
we will work steadily to recover our investments andfurther enhance profitability by continually investing
management resources in a concentrate manner.
The second basic strategy is restructuring
underperforming businesses. During the previous midterm management plan, we successfully exited or reduced
our presence in businesses where we lacked competitive
advantages and also greatly cut back on fixed costs.
Under the new mid-term management plan, we willcontinue to monitor our businesses and restructure ourbusiness portfolios, relocating personnel and improving
utility efficiency, in order to enhance competitiveness.
The third basic strategy is developing and creating
new businesses. During the previous mid-term
management plan, we launched the Next Generation
Business Project Group and achieved a certain degree ofsuccess in the field of medical packing solutions. In April
2015, we began to dismantle this project for the nextstage and established the Advanced Business
Development division, which is in charge of selecting new
business domains and planning concepts behind ongoing
business creation efforts. In March 2015, we created theQOL Innovation Center Shirakawa as a development andmanufacturing hub for high value-added products.
Through this facility we are working on the creation of new

business meeting future market needs.
The fourth basic strategy is improving group-wide
operational efficiency. This is a new policy started under
the new mid-term management plan. With managementtaking on a more global nature, the entire MGC Group is
now working to maximize corporate value. Specifically, allcompanies within MGC Group share and act on MGC
management policies. We have also introduced theBusiness Management Unit (BMU), a collection of highly
correlated business between MGC and its subsidiaries,
and the Group Management Unit (GMU), a collection ofgroup companies engaged in highly correlated businesses.
This brings us closer to maximizing earnings and capitalefficiency. We will also share know-how, pursue technicaltie-ups and take part in human resource exchanges
between MGC Group companies, including our new
consolidated subsidiary JSP, to accelerate synergies.
The fifth basic strategy is improving total enterprisequality in support of sustainable growth. Safety, compliance,
human resources development and strengthening financial
position are all never-ending themes that every company
faces. Among these, MGC focuses particular attention on
its people, the driving force behind its growth. MGC Group
has a corporate culture that is open minded and equally
inclusive of all when it comes to technology. If technicaladvantages are found, this work is delegated to the rightpeople regardless of age, position, gender, or nationality.
We have passed down this culture as part of our DNA andcontinue to focus efforts on developing the next leaders of
MGC Group.

you tell us about the new approaches
Q4 Canincorporated into the new mid-term
management plan?
have devised a new MGC Group Vision
A4 We
and added ROE to our numerical targets.
As the leading concept behind MGC Advance2017, wehave devised a new MGC Group Vision called “Creating
values to share with society.” This vision forms thecornerstone of MGC’s philosophy for being and represents
our commitment to provide value that is widely accepted
and approved by society.
In order for MGC Group to continue its operations, weneed to be constantly aware of the issue that society faces
and the needs that society has, and use this information,
as well as our own strengths, to strive to create value that
contributes to their solutions.
Based on this recognition, we have established fivebusiness areas to focus on. These are energy, information/communications, mobility, medical/food, and infrastructure.

3

MITSUBISHI GAS CHEMICAL COMPANY, INC.

In these domains we will now seek to create and supply
value-added technologies and products and achievesustainable growth together with society that transcends
the traditional limitations of a chemicals company.
Additionally, under the new mid-term management
plan, we have added return on equity (ROE) as a newconsolidated management indicator. Our stance to achievesustainable growth over the medium to long term remains
unchanged, but we believe that adding an indicator thatreceives a great deal of attention from investment markets
will help us to live up to and fulfill the expectations andtrust of investors by providing greater disclosure of how
we are aiming to using our assets efficiently.

you tell us about your safety and
Q5 Canenvironmental initiatives?

closing, do you have a message for
Q6 Instakeholders?

Group is working together on these
A5 MGC
initiatives while striving to raise thewill follow through with the MGC GroupA6 We
Vision to enhance corporate value to benefit

awareness of each and every employee.
MGC Group has carried out Accident Zero (AZ) Projectsince FY 2007 under the safety philosophy that the top
priority of our business activity is ensuring safety. Our six
years of activities helped MGC to completely eliminate
occupational injuries resulting in lost work time on astandalone basis in FY 2013. In FY 2014, we started a
new safety project called Bridge to carry on with thesuccess of AZ. While achieving zero accidents andoccupational injuries, Bridge seeks to reinforce safety andon-site competencies (see page 30). From the perspectiveof stronger group management, we also share andimplement best practices as well as past accidents andinjuries with all group companies through the MGC Group
Environment and Safety Council.
In terms of environmental preservation activities, ourefforts focus on both reducing the environmental impacts
caused by our business activities and making
contributions to the environment through our products.
With regards to environmental impacts from our own
business activities, we recognize the importance ofensuring that our production sites use energy more
efficiently and raising the awareness of each and every
MGC Group employee toward the environment.
As for making contributions to the environment
through our products, we will leverage the strengths of
MGC Group to promote environmental businesses,
including popularizing insulation materials and lighter
weight materials that both help to curb greenhouse gas
emissions or else expanding businesses related torenewable energy. Through such efforts we will continue toreduce environmental impacts for society as a whole.

the economy, society and environment.
Business activities comprise not only an economic aspectof pursuing profits, but also a societal aspect of givingback to society through business and an environmental
aspect of contributing to environmental preservation. I
believe that each of these aspects does not necessarily
conflict with one another, because carrying out these
activities in a balanced manner is a precondition forachieving sustainable growth. By developing andsupplying products that help to resolve social issues andreduce environmental impacts, we gain economic value,enhance the satisfaction of stakeholders, including
customers, business partners, investors, employees, andlocal communities, and raise the social and environmental
value of the company. This represents the MGC Group
Vision of “Creating values to share with society.”
To accomplish this, we will focus on communicationand engagement like never before. For example, we needto convey the qualities of materials more carefully tocustomers so that they understand the merits in order topopularize new materials that lower environmental
impacts. We will harness our nationwide and international
network of business locations to broaden dialogue withlocal communities and find solutions to the issues facing
each of these communities.
Through such wide reaching social contributions, eachand every one of our employees will practice the MGC
Group Vision and tackle the challenges represented by thephrase “Big dreams only MGC Group can realize!” MGC
Group will work hard in value creation to live up to the
expectations of its stakeholders and at the same time wewelcome honest feedback from our stakeholders as well.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

4

Mid-Term Management Plan—MGC Advance2017

We launched a new mid-term management planwith the goal of realizing the MGC Group
Aspirations in 2021, our 50th anniversary

What are the key points about achieving the plan’s targets?
MGC’s philosophy for being is defined as “MGC contributes to societal growth and harmony by creating a wide range of value
through chemistry.” The essence of this statement is found in the New Group Vision “Creating values to share with society.”
In response to social issues, we have defined five target areas where we will leverage the strengths of MGC Group.
Within businesses that realize a rich society meeting the needs of the times and businesses that are highly sustainable andprofitable, we will aim to create value truly needed by society, including features, quality and price.

2021-MGC Group Aspirations
Become a truly profitable
research anddevelopment-oriented
corporate group.

MGC Group continues to earn
the firm confidence of the publicthrough its CSR achievements.

Join the Global Top 30
by exceeding sales of
1 trillion yen.

Quantitative Targets of the New Mid-Term Management Plan
Net Sales

Operating Income

Pushing MGC Advance2017 towards our aspirations(Billions of yen)
1,200

Ordinary Income(Billions of yen)
120

Plan period
April 2015–March 2018
Target financial indicator values (FY 2017)

1,000

100

MGC Advance2017

800

700.0

620.0

600

452.2

55.0

529.5
43.0

400

40.0

37.0

Consolidated parameter

Target80

Net sales¥700 billion

60

Operating income¥40 billion

Ordinary income¥55 billion

ROE

9%

40

25.0
200

20

14.9

0

2011

2014

2015

2016

2017

2021

(FY)

0

Assumptions

Exchange rate of US$ 1= ¥115 (3-month fixed)
Dubai crude oil price (USD/bbl):$55 for FY 2015 and $65 for FY 2017

What do the five basic strategies entail?
1

Enhancing the profitability of existing businesses, especially core businesses
Mainly invest management resources in core businesses to further enhance profitability.
Mainly invest management resources in the eight core and two semicore businesses to further enhance profitability.
Core Businesses

2

Semi-Core Businesses

Natural Gas Chemicals Segment

Methanol / Natural resources and energy

Aromatic Chemicals Segment

MXDA & MX Nylon / Foam

Aromatic aldehydes

Specialty Chemicals Segment

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

Polyacetal

Information & Advanced Materials Segment

BT materials / AGELESS

Restructuring underperforming businesses
We will continue to monitor businesses while work is done to enhance competitiveness —this includes restructuring business portfolios, relocating personnel and improving utility efficiency.

3

Developing and creating new businesses
Create business in new areas meeting future market needs, in addition to surrounding areas of existing ones.
New Business
Development Measures

MGC
Advance2017–Five Basic
Strategies

1Enhancing the profitability of existing
businesses, especially core businesses

3

Developing and creating new businesses

4

Improving group-wide operational efficiency

2

Restructuring underperforming businesses

5

Improving total enterprise quality in supportof sustainable growth4

1. Establish Advanced Business Development division
3. Pursue M&A for growth

2. ¥50 billion for R&D investment
4. Utilization of QOL Innovation Center Shirakawa

Improving group-wide operational efficiency
Maximize corporate value globally through group management action.

5

Improving total enterprise quality in support of sustainable growth
Achieve further improvement in quality that continuously enhances MGC Group’s competitiveness.

MGC Group’s Strengths

5

MITSUBISHI GAS CHEMICAL COMPANY, INC.

•Unique proprietary technologies•Global marketing structure•Development structure to meet customer needs•Wide range of businesses•Strong relationships with leading clients•Production system consisting of multiple locations

Main Themes• Minimizing losses using safe and stable operations• Strengthening internal control and compliance systems• Securing and training human resources for the future of the Group • Realizing a healthy and strong financial position

MITSUBISHI GAS CHEMICAL COMPANY, INC.

6

Profile of Mitsubishi Gas Chemical (MGC): Company Overview

Providing the Technology and Products that Help People Increase
Their Quality of Life While Supporting Sustainable Development of
the Global Community

Financial and Non-Financial Highlights
Net sales / operating income / ordinary income(consolidated)
Net sales(Millions of yen)

Operating income

Energy consumption intensity (non-consolidated)
Ordinary income(Millions of yen)

600,000

Corporate Information (as of March 31, 2015)

Domestic Network

January 15, 1918

Incorporated

April 21, 1951

Capital452,217

23,363

9,083

36,3940.8

30,80427,651

Saga Plant

2011

2012

2013

2014

76

Head Office
Tokyo Techno Park

0

0.0

(FY)

Hiratsuka Research Laboratory
Yamakita Plant

15

44,381
12.9% 1230,000918,9505.0%

3-7,7930-2.8%-10,000

2010

2011

2012

1.0
0.8

MGC TRADING (THAILAND) LTD.
MGC ELECTROTECHNO (THAILAND)
CO., LTD.
AGELESS (THAILAND) CO., LTD.
THAI POLYACETAL CO., LTD.
THAI POLYCARBONATE CO., LTD.

2013

2014

0.2

-3

0.0

(FY)

16,38016,817

16,122

15,332

2012

2013

2014

(FY)

*1 The frequency rate of lost time injuries represents
data from January to December.
*2 Source: Survey on Industrial Accidents published by
the Ministry of Health, Labour and Welfare

0.88

0.85

0.72

0.82

0.80

0.76

0.54

0.6

JSP INTERNATIONALGROUP LTD.

0.4
5,000

0.0

0

2011

2012

2013

2014

4,979

2,399

2,371

2,331

2,434

2,392

(Year)*1 The frequency rate of lost time injuries represents
data from January to December.
*2 Source: Survey on Industrial Accidents published by
the Ministry of Health, Labour and Welfare

0.17
0.12

2011

2012

2013

2014

0.12

250

231

210

206

195

225 9

8
7 7

150

2010

1

1

2011

2012

1

2013

1

2014

Ordinary

2012

0

0

2013

2014

(Year)

Temporary

1,000

10
8

600

2
1

2011

968

953*

400

4

4 4

3

0

5

0.03

(t)

800

6

5

5

100

0.04
0.01

Final disposal volume of waste (non-consolidated)

Number of managers
Employees who are foreign nationals
Number of managers*Excludes forwarded employees (People)(People)

0.01
2010

(FYE)

Number of female employees / managers and number of employees /managers who are foreign nationals (non-consolidated)
Female employees

0.04

0.05
0.00

2010

50

MGC (non-consolidated)*1
Chemical industry*2

0.15

0

METANOL DE ORIENTE,
METOR, S.A.

0
2014

0.10

2,000

200

0
2013

0.20

5,445

5,323

5,216

4,000

BRUNEI METHANOLCOMPANY SDN. BHD.

2012

0.25

8,254

6,000

MITSUBISHI GASCHEMICAL AMERICA, INC.

2011

Lost time injury severity rate

Number of employees (non-consolidated)

8,000

MGC ADVANCEDPOLYMERS, INC.

2010

(FY)

10,000KOREA ENGINEERING
PLASTICS CO., LTD.
SAMYOUNG PURE
CHEMICALS CO., LTD.

0.28

0.2

Number of employees (consolidated)(People)PT PEROKSIDA INDONESIA
PRATAMA

2011

MGC (non-consolidated)*1
Chemical industry*2

0.8

Number of employees (consolidated/non-consolidated)

MITSUBISHI GAS CHEMICALSINGAPORE PTE. LTD.
MGC PURE CHEMICALS SINGAPORE
PTE. LTD.

2010

0.81

10,000

MITSUBISHI GAS CHEMICALEUROPE GMBHSAUDI METHANOLCOMPANY(AR-RAZI)

0.76

1.0

17,4492010

MGC PURE CHEMICALSTAIWAN, INC.
TAI HONG CIRCUIT
INDUSTRIAL CO., LTD.

0.78

Lost time injury frequency rate

20,000MGC PURE CHEMICALS AMERICA, INC.

0.79

0.4

*Includes the R&D divisions of Group companies

MITSUBISHI GAS CHEMICAL SHANGHAICOMMERCE LTD.
MITSUBISHI GAS CHEMICALENGINEERINGPLASTICS (SHANGHAI)
CO., LTD.
SUZHOU MGC SUHUA PEROXIDE CO., LTD.
TE AN LING TIAN (NANJING) FINE
CHEMICAL CO., LTD.

0.81

0.6

(Millions of yen)

15,000(FY)*GHG emissions intensity index (FY 1990 = 1)

0

R&D expenditures (consolidated)

International Network

2014

6

14,921

12,327
4.4%
6.9%

Yokkaichi Plant

2013

(%)

50,00010,000

Osaka Branch
Naniwa Plant

2012

0.95

GHG emissions intensity (non-consolidated)

40,00020,0002011

0.91

Return on equity (ROE)

Net income(Millions of yen)Kashima Plant

2010

0.92

0.4
0.2

Net income / return on equity (ROE) (consolidated)

Number of employees
8,254 (consolidated), 2,392 (non-consolidated)

0.95

0.6

20,000

0

2010

0.95

60,00043,034 40,000

11,488

11,421

26,116

100,000

Mizushima
Plant

Main business sites in Japan
Branch Osaka BranchOverseas offices Shanghai Office, Taiwan Office
Research institutes
		Tokyo Techno Park (Tokyo Research Laboratory, MGC
Chemical Analysis Center), Niigata ResearchLaboratory, and Hiratsuka Research Laboratory
Plants	Niigata Plant, Mizushima Plant, Kashima Plant,
Yokkaichi Plant, Yamakita Plant, Naniwa Plant, andSaga Plant

1.0

80,000300,000¥41.97 billion

Number of consolidated subsidiaries

467,979

120,000
100,000

14,996200,000

Head office address
Mitsubishi Building, 2-5-2 Marunouchi,
Chiyoda-ku, Tokyo 100-8324
Established451,033

529,570

400,000

Niigata Research Laboratory
Niigata Plant

Company name
MITSUBISHI GAS CHEMICAL COMPANY, INC.

534,443

500,000*Energy consumption intensity index (FY 1990 = 1)

0
(FYE)

200
0

97
0

130

2010

2011

122
0
2012

84
2013

15
2014

(FY)

* Increase in temporary due to the closure of certain businesses

7

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

8

Profile of Mitsubishi Gas Chemical (MGC): MGC Products in Our Daily Lives
MGC is a chemical company engaged in a truly wide range of segments, from basic chemicals to finechemicals and functional materials.
MGC’s diverse array of products and technologies are used in many familiar products found in ourhome, at the office and at various other facilities.

In theHome

Polycarbonate film
(Iupilon Film)

Pyrroloquinoline
quinone (PQQ)

Used in diffusion films for
LCD displays to ensure lightevenly reaches across theentire screen.

A new food ingredientconsidered to be not only
beneficial for the brain but
also for beauty as well.

Hydrogen peroxide

Aromatic aldehydes

Dimethyl ether (DME)

Hydrogen peroxide

Used for bleaching in apulp and paper
production process.

Used in fragrances
included in soaps andshampoos. Able torecreate a wide range ofscents through ingredient
blending.

Used as a spray
propellant in place of
CFCs, which damage theozone layer.

Found in oxygen bleaches
that can be used forwhites and colors. Once
broken down, it becomes
harmless oxygen andwater, resulting in zeroenvironmental impact.

Living room

Kitchen
Dining room

Bathroom
Yard

BedroomHigh purity
isophthalic acid
Used in PET bottles.

MX nylon resin

AGELESS
Absorbs oxygen in sealedcontainers to maintain along shelf life, taste andfreshness. Used tomaintain the quality of food.

9

Heat-resistant polyester
resin (ALTESTER)
Used in jello and othercontainers because it is easily
molded and is highly
transparent.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Used for hot tea andcarbonated beverages
because of its excellent
gas barrier properties.

Neopentylglycol
Used in the outer film for
PET bottles.

Hydrogen peroxide(Diapower HP)
Used to clean anddisinfect food andbeverage containers
contributing to longer shelf
lives at room temperature.

AGELESS OMAC
A film that absorbs oxygento prevent oxidation ofcontents. Widely used inretort pouch foods andprepared foods heatedwith boiling water.

Orthoxylene andmetaxylene
Used in plasticizing
agents for softening PVC
water pipes because of
their resistance tocorrosion.
MITSUBISHI GAS CHEMICAL COMPANY, INC.

10

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

At theOfficeMeta-xylenediamine(MXDA)
Used in paints and othercoatings.

Miscellaneous
engineering
plastics
Used in the outercasings, internal
gears andphotoreceptor drumsof printers, copy
machines, and otheroffice automationequipment.

Polycarbonate(Iupilon)
Used in touch
panels.

Specialpolycarbonate(Iupizeta EP)
Used in camera lenses.
Features excellent opticalproperties, such as hightransparency and a highrefractive index, which
contributes to higher
resolution cameras.

Neopentylglycol

AroundTown

Used in powderedpaints and coatings.

Miscellaneous
engineering plastics

Polycarbonate(Iupilon Sun Guard)

Used as a component indoor mirrors, headlights,
automotive interiors, andthe camera lense of drive
recorders.

Used as a roofing material
because of its weather
resistance and it maintains
its color even when
exposed to ultraviolet rays.

GaragesDrying andde-oxydation
agent (PharmaKeep)

Cafeteria
OfficeMaintains low oxygen
concentration levels andlow humidity forpharmaceuticals, which
ensures longer lasting
quality.

Anaerobic culture
system (AnaeroPack)
Used in microorganism
testing at clinical labs.

OfficeHospitals
BT materials forsemiconductor
packages

Towns

MGC was the first inJapan to develop thisplastic PWB material
that helps to makemobile devices morecompact and highperformance.

Etching liquid
Used during the
manufacture ofsemiconductors.

Lense monomer
Used in eye glass lenses. Its highindex of refraction makes lenses
thinner and lighter weight.

11

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Epoxy printed
wiring board(PWB) material
Highly reliable material
used in motherboards.

RP System

Methyl methacrylate(MMA)

Widely used topreserve cultural
assets.

Used in aquarium tanks
because of its hightransparency.

Peracetic acid
(Diapower)
Metaxylenediamine
Used in wind turbine
blades.

Used in thedisinfectant andsterilization of
medical devices andequipment.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

12

Profile of Mitsubishi Gas Chemical (MGC): R&D Activities

Profile of Mitsubishi Gas Chemical (MGC): Supply Chain Contributions

Responding to the Needs of Society by Passing Down a Corporate
Culture that Values Proprietary Technologies

Delivering a Diverse Variety of Functions while Considering
Environmental and Safety Aspects

Research and Development

R&D Strategy
In our existing businesses, MGC is utilizing its technology
platform based on the core technologies of catalysts,
synthesizing processes, polymers, and biotechnology toadvance research and development into: methanol, xylene,
and xylene derivatives, engineering plastics and their processed
products, product groups using hydrogen peroxide, an oxygen
absorber, and many more products that we provide to society.
In addition, we are leveraging our long-standing coretechnologies to improve new processes in the chemical
chain and we are expanding our R&D strategy to target

growth fields, such as electronics, the environment, energy,
life sciences, and food packaging, among others. As for
new businesses, we began to dismantle the Next
Generational Business Project Group established in 2011
for the next stage and we established the Advanced
Business Development division, which is in charge of
selecting new medium- to long-term business domains andplanning concepts behind ongoing business creation
efforts. Under this new structure, we will focus greater
efforts on new business creation and incubation.

R&D goals and targets

Environment-related expenses in R&D● Development of energy saving(FY 2014)● Development of environmentally

For environmentally friendly products:
For environmentally friendly
production methods:

Plant
Research
Divisions

CO2 emissions reduction*1:

Advanced
Business
Development division

Superacid
Solid catalyst
High-pressuretechnique

Synthesis
technology

Polymertechnology

Air oxidation
Liquid phase oxidation
Hydrogenation

Condensation polymerization
Bulk polymerization
Oxidative polymerization
Films/sheets
Resin processing

Compounding
technology(FY 2014)

Research and development sites

Company
R&D

Corporate
R&D

13

Tokyo Techno ParkTokyo
Research and MGC Chemical
Research Development Analysis
CenterLaboratory
CenterNatural Gas Chemicals
Company
Aromatic Chemicals
Company
Specialty Chemicals
Company
Information & Advanced
Materials Company
Corporate Division

MITSUBISHI GAS CHEMICAL COMPANY, INC.

● Procurement of safe raw materials● Appropriate management of45%

chemical substances● Safe production and accident

prevention● Emergency response training● Energy efficiency

reduction (overFY 2010 levels)● Environmental preservation● Global warming prevention● Reducing logistics costs

By rail4%
By truck31%● Ensuring safe distribution

By ship65%● Training for responding to logistics

accidents● Fair marketing practices● Quality assurance practices*3: Transport volume = Weight of cargo x Distance

Research and Development Sites and Structure
MGC’s research and development sites compriselaboratories, plant research technology sections, anddevelopment and technology centers, each of which
carries out research related to its overseeing company.
Research and development is divided into Company R&D
and Corporate R&D. Company R&D assesses changing
market needs, and brings research and development

19%● Modal shift

Ratio of transportvolume*3

Biotechnology
Continuous culturing
Breeding

Oxygen absorber
Resin varnish
Electronics chemicals

production techniques● Assessments of product safety

Marketing and Transport

Medical packing solutions
Next-generation battery materials
New structural materials, etc.

Tokyo ResearchLaboratory

Catalyst
technology

materials● Process design, development of

Manufacturing

Chemical substance management
and air pollutant emissions*2:

Hiratsuka
Research
Laboratory

Technology platformfriendly products● Product design using safe raw

1 billion yen*1 GHG emissions intensity (CO2 equivalent)*2 PRTR substances

Research andDevelopment
Center2 billion yen(over FY 1990 levels)

Creation of new businesses peripheral to existing businesses /brushing-up production processes / environmental impact reduction

Niigata
Research
Laboratory

technologies

Customer Companies
divisions, manufacturing, and marketing together toundertake research and development in line with companies’
business strategies. Corporate R&D aims to create new
businesses from a mid- to long-term perspective throughthe Advanced Business Development division.
The MGC Analysis Center performs contract analysis
and safety testing for the entire company.

Niigata
Research
Laboratory

Hiratsuka
Research
Laboratory

NiigataPlant

Mizushima
Plant

Yokkaichi
Plant

Yamakita
Plant

Kashima
Plant

Customer companies*4 : approx.

13,000(domestically)● Providing safety information(issuing SDS)

Providing products and technologies, through our broad-based business in basic ● Technological services andchemical products and specialized products, not only in the chemical industry, but also
complaint handlingin a diversity of other industries, including the electrical machinery, electronic device, ● Response to the PL Law
vehicle, fiber, paper pulp, food packaging, and pharmaceutical industries.
● Guidance for safe disposal*4 The number of manufacturers, domestically, who use and consume MGC products. Trading
companies not included.

methods (issuing SDS)

Consumers● Risk assessment within the supply chain

Providing functionality and security to
end users through products of ourcustomer companies● Product planning based on risk assessment● Manufacture and supply of products in linewith product plans● Appropriate safety assessment of new

products● Providing the most up-to-date safety

information to customer companies

MITSUBISHI GAS CHEMICAL COMPANY, INC.

14

CSR Management

MGC’s Efforts in CSR

Corporate GovernanceWe established the “MGC Philosophy for Being” and the“MGC Corporate Behavior Guidelines,” as a guide for ourcompany to gain the trust and understanding of society
and to lead our employees to foster confidence and pride

in working for MGC. In addition, we have incorporated
CSR initiatives as part of our mid-term management plan,
which we are currently implementing.

Philosophy for Being

Management Philosophy

MGC contributes to societal growth and harmony bycreating a wide range of value through chemistry.

Principles of Conduct As a Professional GroupManagement that creates
an inspiring work environmentand builds a dynamic group withrespect for motivations
and abilities
Creative research anddevelopment that deeply
understands needs and refines theseeds that will grow success2015 in order to further strengthen our management structure.
Any important matters affecting MGC are to be reviewed
and decided with a broader perspective at the Management
Council where management policy may be discussed, and at
the Operations Council where definitive action plans may be
discussed. In addition, MGC draws upon the expertise of legal
counsel and other experts when required in the decisionmaking process and the business execution of the company.
There are four Audit & Supervisory Board members, twoof whom are external. They attend important meetings aswell as board meetings, conduct audits of departments,
inspect subsidiaries, and strive to understand the decisionmaking process and status of business execution. In addition
to ensuring a rational decision-making process andcompliance with the law and corporate ethics, the Audit &Supervisory Board members conduct inspections of ourbusiness operations. They regularly exchange opinions withdirectors and receive status reports on business execution
from directors and employees on a regular basis, orimmediately when involving material matters. Members request
explanations as required and state their views. They also
inspect important documents concerning business execution,and require information from directors and employees.
Moreover, in order to enhance internal controls andimprove efficiency of business management, MGC hasestablished an Internal Audit Division that is separate fromthe statutory auditors. This division oversees the executionof MGC and MGC Group companies to ensure
appropriate practices, and conducts internal audits inaccordance with our annual plan.

Basic Approach to Corporate Governance

MGC Philosophy

Marketing that expands andcreates markets, with an eye on
the world to capture its needs

Maintaining a sound and transparent management system is a key management issue, and as such
we are working to improve transparency, ensure fairness, and accelerate decision-making.

1. Courage unafraid of change
2. Aspiration toward lofty goals
3. Perseverance toward achieving goals
4. Communication to broaden rapport

Production activities that strive
for technological improvement,
environmental conservation,
safety, and better products

Safety Philosophy
An open corporate culture forshared goals and individual growth

The top priority of our business activity
is ensuring safety.

MGC has adopted an executive officer system aimed at asound and highly transparent management structure. The
Board of Directors is positioned as the organization responsible
for making decisions on critical management issues, including
basic management policies, and for supervising businessexecution by MGC directors. This has strengthened governanceand enhanced the operational framework by clarifying functions
and responsibilities. MGC has also adopted an internal
company system for its business divisions, which has clarified
responsibility and improved management performance.
MGC aims to enhance the transparency and fairnessof management through internal audits performed by Audit& Supervisory Board members and will develop effective
corporate governance through appropriate disclosure ofmanagement information.

MGC Corporate Behavior Guidelines
Mitsubishi Gas Chemical Company, Inc. (“MGC” or “theCompany”) aims to be a company that acts with soundjudgment and maintains the trust and understanding ofsociety. The Company operates under six behavioral
principles, presented and explained below, and will shareknowledge of these principles widely throughout Group
companies.
Senior managers recognize that it is their role toembody the spirit of these principles, and while ensuringthat they have a full understanding of the necessary
information inside and outside the Company, they will takethe initiative to promote a high level of corporate ethics,
and strive to develop and operate an effective framework
for this purpose through the internal control system.
Furthermore, if an incident takes place in contravention ofthese guidelines, they will take command and fulfill their
obligations for internal and external disclosure, strive to
identify the cause of the incident and prevent its
recurrence, and deal with the matter strictly and fairly inrespect to all parties, including management itself.

(1) MGC will ensure customer and consumer satisfaction andtrust by providing high-quality products and services thatare useful, safe and reliable.
(2) MGC will voluntarily and proactively address environmental
issues.
(3) MGC will comply with laws, regulations and rules, and willconduct fair, transparent, appropriate and open businessactivities.
(4) MGC will endeavor to ensure broad-ranging
communication with society through appropriate disclosureof information.
(5) MGC will engage in business activities that are useful forsociety, and actively contribute to society as a responsible
corporate citizen.

Overview of Corporate Governance
Structure
For the sake of appropriate management supervision andcounsel from an external perspective, and to raise ourmanagement transparency and fairness, MGC appoints
outside directors. Our current management structure consistsof 12 directors, including two outside directors, and 22
executive officers (including people who concurrently serve as
directors). This marks an increase of one external director in FY
Corporate governance framework(6) MGC will provide comfortable and productive working
conditions for employees, and will ensure a safe andrewarding working environment.

For entire guidelines, please refer to our website; http://www.mgc.co.jp/eng/about/compliance/

Board of Directors

Creating values to share with society
We will thoroughly improve CSR performance based on our philosophy for being, and as our Group vision,clarify the path taken in the new mid-term management plan.
The promotion of business has the aim of creating value truly needed by society, including functions, quality and price.

Election/Dismissal

Crisis Management

Auditing

Audit & Supervisory Board
Audit & Supervisory Board
members

Auditing

Independent Auditors

Auditing/Supervision

Election/Dismissal

Ad hoc organization

MGC Group Vision

General Meeting of Shareholders
Election/Dismissal

Business Execution

Inspection/Reporting/Auditing (Internal controls related)

ChairmanPresident

Main committees related to internal controls

Internal Control Promotion Committee

Crisis Response
Headquarters

Compliance Advisory Committee
Management Council
Operations Council

Risk Management Committee
Internal Audit DivisionCorporate Groups / Company Groups
Application of MGC’s internal control system
Subsidiaries
Note)	The Tokyo Stock Exchange created and enacted its Corporate Governance Code in 2015. Based on this, MGC has reexamined its approach to corporate
governance. However, efforts are still underway as of the date this report was published. Therefore, the information found in this section represents theannouncements as of June 30, 2015.

15

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

16

CSR Management

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

MGC Group Compliance

MGC compliance concepts

MGC compliance structure

Compliance implementation measures, guidance andsupervision, and steps taken to rectify and prevent
recurrence of noncompliance, which are formulated anddeliberated on by the Compliance Committee, are reported
to the MGC President and Audit & Supervisory Board, thenimplemented after following specified internal procedures.
In addition, MGC has set up a “Compliance
Consultation Desk” to achieve early detection andundertake preventative steps against unethical practices.
Our internal contact desks are staffed by internal audit
departments, while external contact desks can be foundat the offices of specialized attorneys (including access tofemale attorneys. These specialized attorneys also provide
advice to the Compliance Committee and assist with thetraining of various related departments.
Reports and consultations brought to the attention of
the Consultation Desk and deemed as potentially serious
compliance violations are promptly reported to theCompliance Committee chairperson. The Compliance
Committee decides on necessary rectification orrecurrence prevention measures after investigating therelated facts. Investigation results and the details of saidmeasures are also reported back to the party responsible
for the consultation or report.

Report (as required)

Compliance Regulations
MGC Corporate Behavior Guidelines
Toward a more concrete Standard of Conduct
MGC Code of Conduct

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

17

MITSUBISHI GAS CHEMICAL COMPANY, INC.

by each department are centrally managed by thesecretariat of the Risk Management Committee to ensure
other departments have access for use as reference.

Board of Directors
President

Audit & Supervisory
Board

Risk Management Framework

ReportReportCompliance Committee

Contact

Compliance at MGC Group involves not only abiding bylaws and company rules, but also widely upholding fair,transparent and free business activities based on its
responsibilities to society as a group of companies. Basedon this understanding, we have summarized the actions to
be taken by executive officers and employees in the “MGC
Corporate Behavior Guidelines” and the “MGC Code of
Conduct” and we make revisions to these guidelines andcode of conduct as necessary based on changes thattake place in society.
To ensure thorough compliance across the entire MGC
Group, we distribute the “MGC Compliance Handbook” toall of our employees in Japan. In FY 2013, this handbook
was updated based on the revisions made to our code of
conduct and other contents. For
overseas Group companies, we created
English, Chinese and Thai language
versions of the “MGC Corporate
Behavior Guidelines” and the “MGC
Code of Conduct” to ensure thephilosophy of MGC Group is madeMGC Complianceknown to and practiced by all.
Handbook

3.	Inspecting instances of noncompliance, andformulating and deliberating on measures forrectification and prevention of recurrence.

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

Instructions forcorrections

Relateddivisions

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

External contact
desks

General contact:
Compliance Committee
Secretariat
Individual contact:
designated within eachdivision

Compliance attorneys(Contracted attorneys’ office)Consultation andnotification

Inspection
requests

Consultation andnotification

MGC executives and employees

Compliance Education

People involved in the MGC Group’s business activities

The Risk Management Committee, headed by the Chief
Compliance Officer, is composed of the heads of the fourCompanies conducting business activities, as well as all
corporate divisions. The Committee assesses risk
situations from broad perspectives, and instructs andoversees departments to prioritize risks and enact risk
reduction measures.
In terms of risks associated with project implementation,
we have developed an action plan to identify and evaluate
risks inherent in our operations or internal control systems.
We then take the appropriate measures. In the event thata serious risk is identified, we set up a special group tocope with it according to internal rules.
Risk management promotion system
President

Risk Management Committee
Chairperson: Chief Risk Management Officer
Members: Heads of each corporate division
General Manager of the 4 Companies
Others designated by the Committee Chairperson
Observers: Audit & Supervisory Board members(family of MGC executives and employees,
affiliated companies, partner companies, trading partners, others)

MGC sets aside October each year as “Ethics Month” toconduct compliance training for employees. The president
also sends out a circular to all business sites to raiseawareness about compliance issues.
In FY 2014, we chose specific items of timely naturefrom among the 40 different types of legal compliancetraining materials contained on our intranet. These items
were provided to employees, through our e-learning system.
Given rising need to respond to compliance issues,
such as cartel involvement or illegal payoffs, at Group
companies affiliated with ouroverseas businesses inemerging countries andother locations, MGC is also
working to enhance thequality of its compliancetraining for staff that are
dispatched overseas.
Screenshot from the e-learning
systemSecretariat(Division in charge ofGeneral Affairs)

Risk Management in MGC GroupIn response to the various risks related to our businessactivities, MGC launched company-wide, comprehensive
risk management activities in 2006 with the establishmentof a Risk Management Committee. To disseminate
knowledge at the start of our activities, we conducted
seminars for top management and for employees at all
workplaces on the topics of the importance and practiceof risk management.
Presently, we are working on reviewing andimplementing measures to reduce latent risks and making
efforts to revise our business continuity plan (BCP). We are
examining measures against risks given the highest priority
after all company-wide risks were identified and assessed
and when necessary we create a new BCP. BCPs createdDepartment
supervisingrisk
management

Department
assistingwith risk
management

Department
supervisingrisk
management

Department
assistingwith risk
management

For each particular risk,
the Chairperson of the Risk
Management Committee
designates a department tosupervise risk management.

Cooperating with thedepartment supervising risk
management, thisdepartment works towardrisk reduction.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

18

CSR Management

Stakeholders and MGC

Compliance and Risk Management

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

Risk Management Committee’s Annual
Plan for FY 2014
Among the risks that accompany our business activities,
we have identified earthquakes, toxic or hazardous
substance leaks, fire and explosion, and information leaks
as four that must be handled with priority on a companywide basis. Our workplaces are also examining
countermeasures related to these priorities.
In FY 2014, we actively pursued major annual policy
points that included those listed below.

their homes after a disaster. We have stocked food,drinking water, and other materials to allow persons in thecompany to remain in offices for at least three days.
MGC carried out earthquake resistance assessments
covering all of its buildings which are old and have agreater potential of causing injuries should a major
earthquake occur. Based on these assessments, in FY
2014 we have been moving forward with responses that
include seismic retrofitting. Additionally, we examined ways
to improve the seismic performance of model plants,
including manufacturing equipment.

1. To carry out independent and autonomous risk
management activities by each division and to provide
instruction and oversight by the Risk Management
Committee that considers management perspectives.
2. To identify company-wide risk from both management
and working level perspectives and to implement
effective countermeasures.
3. To carry out planned activities aimed at the completionof comprehensive earthquake resistance measuresand measures against information leakages at ourbusiness sites.

Wireless communication device for
emergency use

Satellite mobile phone

4. To work toward further enhancement of our risk
management practices in MGC and at group companies.

Major Initiatives against Significant Risks

19

We work hard to provide safe and highly reliable products
and services to all of our customers, from direct business
partners to the end consumer. As part of these efforts, allof our plants have acquired an ISO 9000 series ofcertification in quality management.
If problems related to the Product Liability Law occur,
the designated staff person in charge of complaints ateach Company will work with the business division inquestion, the production divisions, research divisions, or
logistics divisions, and investigate the source of the
problem. Related divisions report to the Product Liability
Committee so that the committee can implementcompany-wide preventive measures. Additionally, until
now problems related to the Product Liability Law have
not occurred at MGC.
In addition to these company-wide activities, we arealso striving to raise customer satisfaction in eachparticular business division.

Developed Functional Bottle for
Pharmaceuticals
Glass bottles have been the container of choice forpharmaceuticals because they do not allow oxygento penetrate, which prevents quality issues causedby oxidation. However, glass bottles are heavy andcould break, so pharmaceutical companies asked us
to develop a plastic bottle solution.
Based on these requests, MGC developed
Oxibarrier, a plastic bottle that will never break andthat offers a robust gas barrier. In addition, we havealso developed Oxivanish, a plastic container that
actually absorbs oxygen, and Moistvanish, a plastic
bottle that absorbs moisture. We will continue todevelop products that meet the needs ofpharmaceutical companies around the world.
Oxivanish(multi-layered oxygen-absorbing bottle structure)

Obtained Halal Certification for Food
Deoxidants
Disaster reserve supplies

Earthquake resistance assessment(Yokkaichi Plant)

Measures against major natural disasters

Measures against information leakages

MGC has deployed company-wide a safety confirmation
system to cope with a major natural disaster such as anearthquake in the northern part of Tokyo Bay, which isassumed by the Cabinet Office to be a possible
occurrence. In addition, we have provided offices withemergency devices, such as wireless communication
devices, so as to enable communication among
workplaces even when regular telephone communications
become disabled or restricted.
Furthermore, as part of our BCP, we conduct
emergency training sessions using these systems andequipment each year, so that even if headquarters
becomes paralyzed due to a major natural disaster, eachof our facilities such as plants and research centers may
continue supporting customers and maintaining otherservices, supplementing the headquarters’ function.
We also are pushing forward initiatives for firstresponder training at each workplace, as well as gatheringstocks of reserve supplies. To cite examples of otherinitiatives, we have planned for scenarios in which working
employees and visiting guests face difficulties returning toRegarding the prevention of information leaks—one of the risk
issues we have targeted for priority treatment—we examinedways to manage technical information and other measures.
Going forward, in addition to issuing warnings andstrengthening our information management practices, wethink it is important to minimize information leakage risks
based on scenarios where secrets were leaked and toaddress the challenge of striking the right balance
between the prevention of information leakages andproperly sharing this information within the company.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Together with Customers

Risk management of group companies
As a risk management measure including Group
companies, we are carrying out requests for enhanced risk
management, while also exchanging information afterinvestigating on each company’s initiatives and practices.
We will continue to examine ways that our Group
companies can raise the bar when it comes to their risk
management practices, given the rising need for internal
controls to be consistent across our entire corporate group.

Halal refers to foods that are prepared according toIslamic practices. Muslims are only permitted to eat
Halal foods per their religious beliefs. Pork andalcohol are two types of food that are prohibited
under Islamic law. Both cannot be used as
ingredients to prepare any type of food. Rigorous
care is also taken to ensure both never come incontact with Halal foods during raw materials
processing, packaging, storage and sale
MGC’s oxygen absorber called AGELESS is noteaten directly, but it is contained in the same
package as food. For this reason, in recent years arising number of customers from regions with a large
Muslim population have made inquiries about
whether AGELESS is Halal certified.
Given this, MGC obtained Halal certification for
AGELESS used in foodapplications from the Japan
Islamic Trust. This will enable
us to expand the market for
AGELESS by meeting theneeds of the almost two billion
Muslims around the world.

Honored with a PQS Award from Intel
Corporation
MGC received a
Preferred Quality
Supplier (PQS)
award from Intel
Corporation, a
global leader insemiconductors.
Intel presents
this award to suppliers and MGC has been arecipient for five consecutive years since 2010.*
MGC was recognized for the quality, cost, supply
system, technical prowess, customer service, laborand ethics systems and environmental sustainability
costs with regards to its chemicals used in the
manufacture of semiconductors.
* We received the PQS award in 2010, 2011, 2013 and 2014, andthe Supplier Continuous Quality Improvement (SCQI) award in
2012.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

20

Stakeholders and MGC
Together with Stakeholders

Together with the Community
Interaction with local communities■ Beautification activities in the local community

At each of its sites, MGC participates in cleanup activities
for roads, nearby riverbeds, and other areas.

Participating in a study, clean-up,
and tree planting project for the
Sagami River(Hiratsuka Research Laboratory)

Regularly held community clean-up
activity(Yokkaichi Plant)

to schools in areas affected by the earthquake. We
provided approx. 10,000 kits to 80 schools in FY 2014.

Environmental and disaster preparedness
activities in the local community
To explain our environmental conservation and process
safety activities to local communities and deepen mutual
understanding, MGC has continued to participate in local
dialogue meetings held by the Japan Chemical Industry
Association (JCIA).
In addition, we are working together with local
communities to promote safety and disaster preparedness
through joint drills with fire departments and other means.
All of MGC’s plants have obtained ISO 14001 certificationand continually strive to improve the quality of theirenvironmental management systems.

■ Involvement in community activities

We participate in community festivals, blood donation
drives, and traffic safety campaigns to encourageinteraction with the local community.

Local dialogue meeting on
Responsible Care for the Okayama
district(Mizushima Plant)
Participating in a traffic safety
campaign(Niigata Research Laboratory)

Participating in a festival(Yamakita Plant)

Initiatives for the next generation
We are working to promote an interest in chemistry
through partnerships with educational institutions in thecommunities surrounding our business sites. For example,
we host student visits and internships involving local juniorhigh schools, high schools, technical junior colleges anduniversities as part of commitment to help develop thenext generation.
Since 2008 we have provided junior high schools near
our facilities with chemistry kits to make their own pocket
heating pads. These kits help students understand theoxidation of iron, which generates heat and makes thepads warm. Since 2011, we have also donated these kits

Joint emergency drill(Kashima Plant)

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

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

21

Chemistry experiment kits

MITSUBISHI GAS CHEMICAL COMPANY, INC.

We are working closely with the shipping providers of ourpartner companies to ensure safety during transportation,
to enhance logistics quality, and to carry out a modal shift.
Additionally, we also carry out audits of our partner

accompanying the globalization of our business.
See page 8 for specific data.

■ Re-employment of retirees

Together with Employees
MGC’s human resource development
Our people are our greatest asset. MGC maintains“fostering small numbers attentively” as its humanresource development policy. Our desire is to create awork environment that fosters each employee as aprofessional in a system that raises personal intelligenceand capacity while furthering individuality.

In response to measures that raise the eligibility age forpayments from the public pension program, we haveintroduced a retiree re-employment scheme to support alife for workers after retirement. Providing all employees
the opportunity to continue working* if they are healthy anddesire to do so contributes to creating a vibrant workplace.
* 2009 to 2014: The re-employment rate has been 100% for six
consecutive years.
See page 23 A for specific data.

■ Personnel system■ Employment of people with disabilities

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

MGC’s employment rate for people with disabilities was
2.18% as of the end of FY 2014, which exceeded thelegally mandated rate of 2.0%. We will continue working tocreate a workplace environment that allows people withvarious disabilities to display their capabilities.

■ Development of human resource capabilities

Working with partner companies

Hosting a student visit from a local
university(Niigata Plant)

companies from the standpoint of compliance and to build
more positive, lasting relationships.

In order to create an environment for each employee toachieve individual goals, we are working to enhanceself-development programs for each rank and sector using
tools such as skill-development training and distanceeducation.

Promoting diversity
We are putting effort toward promoting diversity (in termsof different working styles), so that our employees, whothemselves are diverse individuals, can display their uniquecapabilities and approach work with a sense of purposeand meaning.
■ More active role for women and the hiring of

foreign nationals
We began hiring women for career track positions in 1991
and recently the number of female managers has been on
the rise. We have also created a system allowing shorter
working hours and a flex-time system for employees toachieve a balance between childcare and work, which
helped boost the rate of employees returning fromchildcare leave to 100% for three consecutive years.
In addition, we are hiring more employees withinternational perspectives, regardless of foreign nationality,

See page 23 B for specific data.

Consideration for work-life balance
We believe that work-life balance is indispensable for job
satisfaction. To help promote this idea we have
implemented a no-overtime day, encouraged our
employees to take their paid leave, and introduced various
systems such as flextime as well as a system that allows
employees to roll-over expired annual leave.
We continue to enhance our childcare leave andnursing-care leave systems, in addition to a systemallowing shorter working hours, to help employees balance
work with family life.
See page 23 C and page 24 D, E, F, G for specific data.

Care for mental health
It is important that our employees maintain their physicalhealth, at MGC we have implemented programs to ensure
mental health as well. The Employee Assistance Program(EAP) is one of these, in which employees can freely
contact external professional institutes by e-mail,telephone or in person to discuss concerns.
In addition, we conduct an annual “mental health” test
to assess stress conditions and provide opportunities for
self-evaluation while striving to raise stress awarenessthrough workshops. We also conduct mental healthtraining during sessions designed for new employees andemployees receiving a promotion.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

22

Stakeholders and MGC
Together with Stakeholders

Respect for human rights
At MGC, we strictly adhere to our Corporate Behavior
Guidelines and MGC Code of Conduct, to respectindividual personality and human rights, to not hurt anyone
by discriminating against them based on their race,
gender, nationality, age, religion or place of origin. We
provide separate training courses on human rights for new
employees and managers to raise awareness of humanrights among all employees. Our Code of Conduct also
articulates that sexual harassment and power harassment
are prohibited. We are committed to preventing themwithin our company, and reinforce this principle throughtraining sessions, internal communications and a special
consultation desk.
These guidelines and code—along with the four
fundamental principles* of the International Labor
Organization (ILO)—have been communicated to ourGroup companies overseas.
* 1. Freedom of association and the effective recognition of the right tocollective bargaining; 2. Elimination of all forms of forced or compulsory
labour; 3. Effective abolition of child labour; and 4. Elimination of
discrimination in respect of employment and occupation.

Human resources related data

With Shareholders and Investors
Percentage of annual paid leave being taken(average for labour union members)

Employee tenure (as of March 31, 2015)

Average age
Number ofyears worked

(%)

Male

FemaleTotal

41 years old
and 3 months
18 yearsand 4 months

39 years old
and 4 months
16 yearsand 5 months

41 years oldand 1 month
18 yearsand 2 months

100
80

We strive to create a work environment where employees
are able to engage in a variety of social contribution
activities as part of their daily lives. For example, in FY
2009, we introduced paid “volunteer leave” and paid
“donor leave” as special paid leave options. We also
provide employees with paid leave for public service
activities such as participating in the saibanin (jury) systemor the Committee for the Inquest of Prosecution.

Over the years MGC and the Mitsubishi Gas Chemical
Workers Union have built up mutual trust and respect
between each other based on positive labor-management
relations, which allows them to work together to solve
various issues. We regularly hold management council
meetings to discuss issues related to management, andorganize a joint management committee for more specificagendas. Together we have revised the personnel system,
the re-employment system, and retirement plans. Other
issues such as wages and bonuses are determinedthrough yearly collective bargaining and other negotiations.
See page 24 H for specific data.

91%

2010

2011

2012

2013

2014

0

Number of new employees
Number of employees at third year after joining, as of April(People)
95.8%
80

81

60
40
20
0

100.0%

98.9%

96.4%
84

100

2009

87 94

88

2010

96 92

94

Retention

97.9%
97 95

(%)

2011

2012

2013

(FY hired)(People)108

7 7(0)

6
4

Turnover3

2(People)

4(1)

2010

20

4

5(1)

9(1)

8
6 6(0)

040
30

Basic policy on profit distribution

Number of employees on maternity leave before & after birth
Number of employees on childcare leave*

80
60
40
20
0

(FY)

Maternity leave

100

25

25

2010

2011

26

20

2011

2012

2013

2014

(FY)

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

23

0

2012

2013

2014

* Number of qualification grade employees and those retiring at theirown accord (including completion of leave of absence period, supportchanging job type, and excluding job transfers)(People)20
15

Re-employment of retirees
Workers desiring re-employment(People)80100.0%

60

44 44

40

100.0%
56 56

Re-employed workers

100.0%

Number of employees using reduced working hours forchildcare(FY)

100.0%

Re-employment rate

100.0%

(%)
100

42 42

39 39

44 44

50

2012

2013

2014

(FY)

0

10
5

2011

* Fiscal year = end of September + end of March

7

8

2010

2011

14

13

2013

2014

10

2012

(FY)

Number of employees taking nursing care leave
Employees taking nursing care leave
3

2
1

1

(%)
2.5

2.16%

2.16%

2.0

2.13%

2.22%

2.18%

1
0

0

0

2010

1.5

2011

2012

2013

2014

The annual shareholders meeting is held avoiding peakdays so that as many shareholders can attend as
possible. MCG is also endeavoring to send theconvocation notice earlier to give shareholders more time
to consider what to vote, and adopt an electronic voting
system for better convenience.

For institutional investors and securities analysts, wehold earnings briefings, as well as business briefings. In
addition, we posted
reference material fromour earnings briefings, aswell as business reports,
on our website in an effort
to share information about
MGC in a timely fashion.
Earnings briefing* Number of users during the FY

2General meeting of shareholders

Briefings for institutional investors and securities
analysts(People)Employment rate for people with disabilities(as of March 31, 2015)

Returning profits to shareholders is considered one of
MGC’s most important management issues. Distributions
are determined by a combination of performance-linked
factors and stable dividends, based on a comprehensive
analysis of business performance over the medium to longterm, capital investment plan, and financial soundness. In
FY 2014 our full-year dividend was 14 yen per share.

(FY)

0

0

2010

1.0
0.5

Composition of shareholders (as of March 31, 2015)

Number of labor union members (as of December 31, 2014)

0

2010

2011

2012

2013

2014

(FY)

(People)Individuals
and others
19.8%

2,500
2,000

Total annual working hours(average for labour union members)
1868.2

1865.9

1,999

1,981

1,998

1,971

1,500

(Hours)1871.2

1,987

1,000

1860.7500

1856.4

0

1,500

2010

1,000

2011

2012

2013

2014

* The participation rate of qualification grade employees due to theunion-shop system is 100%.

500
0

2010

MITSUBISHI GAS CHEMICAL COMPANY, INC.

87%

20

Retention of new employees (third year after joining)

2,000

23

87%

40

20

Union / labor-management relations

84%

60

10

Support for social contribution activities

84%

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

2011

2012

2013

2014

(FY)

Foreigninvestors
25.5%
Other companies
in Japan
10.6%

Financial
institutions
42.4%
Securities
companies
1.7%

(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

24

Responsible Care and MGC

Environment and Safety Management
Sustainable development, building a recycling-based society, and safe operations are the three criticalbusiness challenges that MGC faces. Responsible Care (RC) is our response to both the environmental andsafety issues, and has been rolled out in MGC and is understood by the entire Group.

Message from the Director in Charge of Environment and Safety
MGC has continued its initiatives under the RC Medium-Term Plan 2014 to foster a culture of safety andachieve zero occupational injuries and accidents. During the fiscal year, we are pushing forward with theinitiatives of our working groups at each plant and undertook initiatives aimed at improved communication,
upgraded equipment, and enhanced on-site competency. As a result, we continued our record of no loss

The MGC Group Policies on Environment and Safety

time occupational injuries in both 2013 and 2014. While our occurrence of abnormal phenomena is on adeclining trend, we did not achieve full elimination, and are further strengthening initiatives. In terms of the

MGC has conducted a review of our Medium-Term Plan and has formulated environmental and safety policies as the RC
Medium-Term Plan 2017.

environment, we are continuing our efforts to set and meet the numerical targets in each area of: reduction

The MGC Group, as an important member of the community, makes an effort to earn social trust byrecognizing our responsibility to contribute to the community, to secure the environment and safety of thecommunity, and to put our corporate activities in harmony with the protection of the global environment
under the principle of sustainable development.

assessment at each business site to determine the likelihood of similar accidents occurring at MGC. We

of emissions of chemical, reduction of industrial wastes, and energy saving measures. As a result, we havebeen able to cut the amount of PRTR substances and VOCs.
In recent years, major accidents continued to occur in the chemical industry. We are carrying out risk

Environmental and Safety Targets
Fundamental Policies

Zero Accidents, Zero Occupational Injuries, and Environmental Preservation■ Ensuring health and safety in our operations■ Ensuring process safety through the improvement of self-maintenance technologies and on-sitecompetency■ Reduction of environmental impacts and contribution to sustainable social development■ Ensuring safety in the handling, use, and disposal of chemical products■ Ensuring environmental conservation and safety in the logistics of obtaining raw materials, andstoring and delivering our products■ Strengthening of relationships with stakeholders■ Promotion of the MGC Group’s environmental and safety activities■ Continuous improvement of environmental and safety management systems

RC Medium-Term Plan 2017
* The descriptions of distribution safety, dialogue with society, and RC in general have been omitted.
RC CodeRC Medium-Term Plan (2015–2017)

Occupational Health and
SafetyWorking toward zero occupational injuries and accidents■	Enhance everyday safety activities (KY (kiken yochi): hazard prediction; HH (hiyari hatto): near-miss incidents; the 5Ss; etc.)■	Enhance communications.
■	Prevent the occurrence of similar occupational injuries and similar incidents.
■	Prevent occupational injuries in partner companies.
■	Perform risk assessments for handled chemicals.
■	Establish a framework for activities (Bridge) to eliminate accidents.

are working to identify areas of danger and hazardous processes, and pushing forward with corresponding
prevention measures. In order to foster a culture of safety, we have adopted the Guidelines for Prevention

Kenji Inamasa

of Chemical Plant’s Accidents published by the Japan Chemical Industry Association and the safety

Managing Executive Officer

competency assessment system of the Japan Safety Competency Center, which was established in April
2013 by the Japan Society for Safety Engineering, and are strengthening associated initiatives.
The MGC initiatives described here have brought real results, though they are still not entirely sufficient. We conducted a review of our RC
Medium-Term Plan 2014 and addressed its areas of insufficiency to formulate the RC Medium-Term Plan 2017. Under this plan, MGC will aim
to be a “superior and distinctive chemical company,” as we continue our initiatives toward safe and secure production.

Responsible Care Promotion System
All of MGC’s divisions, at both the segment and corporate
level, follow fundamental environmental and safety
principles that promote Responsible Care. Every
December, MGC holds environment and safety meetings,
which are chaired by the President and consist of all
executive officers, division heads, and plant managers.
MGC also takes steps to make continuous improvementsin the PDCA cycle based on the RC Medium-Term Plan
targets and annual activity targets.
President
Director in charge of environment and safety

Environment and safety meeting

Administrative divisions■	Strengthen and deepen risk assessment (RA).

Process Safety and Disaster
Prevention• Establish activities composed of identification, reduction, and periodical review of risks.
■	Establish PDCA in education at business sites, including OJT.
■	Analysis and horizontal communication of case studies from other companies, past case studies, HH case studies, etc.
■	Enhance disaster readiness framework.
■	Enhance equipment management and improve self-maintenance technologies.
■	Formulate “MGC Standards” safety standards applicable to the entire MGC Group.
■	Reduce energy consumption intensity to below 85% of the FY 1990 level.

Environmental Preservation• Implementation of energy saving measures and reduction of equipment problems.
■	Reduce greenhouse gas emissions intensity to below 72% of the FY 1990 level.
■	Reduce emissions of PRTR substances by 10% compared with FY 2014.
■	Maintain zero emission of wastes (Zero emissions at MGC: Final disposal of generated wastes to 0.3% or less by weight).
■	Reduce generated waste volume by 10% compared with FY 2014.
■	Promote initiatives related to conservation of biodiversity.
■	Formulate methods for evaluation of environmentally friendly products.

■ Audit period

July – September, 2014
■ Auditees■	Adopt and operate the safety competency assessment system of the Japan Society for Safety Engineering.

• Construct frameworks enabling plants themselves to practice PDCA.

assesses the implementation status of RC action plans at
each of our sites while deciding upon and auditing highimportance audit items for the year.
In 2014, we audited the status of initiatives tostrengthen on-site competency, the enforcement of accident
prevention of plants (identification and reduction risks
associated with abnormal reactions, explosions/fires, andemergency shutdowns), the status of chemical and reagent
operational management, and the strengthening and reliable
operation of frameworks for RC education and training.

MGC Group Environment
and Safety Council
GHG task force
Responsible Care audit
Audit of certified
high pressure gas plants
Environment andsafety inspection

Companies

Business divisions
Planning and development divisions
PlantsEnvironment andsafety departments

Researchlaboratories

Environment andsafety departments

5 plants, 3 laboratories (including Tokyo Techno Park),business divisions of 4 segments, Purchasing &Logistics Center■ Audit findings
Full conformity (34 cases) Non-conformity (no cases)
Improvement orders (11 cases) Comments (30 cases)■ Follow-up issues identified in previous year
We audited the handling of items identified atworkplaces in the previous year to confirm that proper
measures have been taken.

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

Environment andsafety manager meeting■	Provide up-to-date safety information on handled chemical products and incorporate information into SDSs (safety data sheets).
■	Risk management for handled chemical products.

Chemical and Product Safety• Participate in JIPS.*• Risk management for new products.
■	Adapt to EU REACH regulations and other overseas regulations.

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

25

MITSUBISHI GAS CHEMICAL COMPANY, INC.

RC Audits in 2014
The director in charge of environment and safety, together
with an auditing team, conducts the RC audit. This audit

Audit (Kashima Plant)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

26

Responsible Care and MGC

Results and Plans for RC Activities at MGC: Achieved

RC Medium-Term Plan
2011–2014

Occupational Health and
SafetyWorking toward zero occupational injuries and accidents■ Establish a culture of safety.

• Enhance communications.
• Eradicate human error.
•	Identify fundamental causes of accidents and occupational
injuries, and undertake active measures to improve equipment.
■	Enhance voluntary process safety inspections.
■ Enhance joint disaster readiness framework with neighboring
affiliates.

Process Safety andDisaster Prevention■	Reduce the energy consumption intensity to below 85% of the FY

1990 level.
•	Implement energy saving measures and reduction of equipment
problems.
■ Reduce greenhouse gas emissions intensity to below 75% of the FY

1990 level.

■ Reduce emissions of PRTR substances and VOCs.

•	Focus reductions on substances with high emissions volumes.

2014 RC Action Plan

We will continue with our daily activities (hazard prediction activities, Hiyari-Hatto [near miss]identification activities, and the 5S activities) and risk assessments, while ensuring enhanced
communication and that all employees work toward achieving zero occupational injuries andaccidents.
Specific details are as follows:
1. Continue daily activities (hazard prediction activities, Hiyari-Hatto [near miss] identification
activities, 5S activities).
2. Prevent accidents and occupational injuries by reinforcing our on-site competency.
3. Continue to thoroughly pursue the elimination of plant accidents.
(Identify and reduce risk from abnormal reactions, explosions/fires, and risk occurring during
emergency equipment shutdown.)
4. Enhance communication and link communication to eradication of human error.
5. Establish emergency response system, including neighboring affiliates, partner companies andfire departments.
6. Continue to pursue activities for preventing occupational injuries at partner companies.
(Enhance facility upgrades, support for the training of partners’ employees, and communication
with partners.)

We will plan and formulate goals for each business site in order to achieve our medium-term targets.
Specific details are as follows:
1. Advance energy saving measures while reducing equipment troubles to assure stable
operation, and improve our energy consumption intensity and greenhouse gas emissions
intensity. In particular, establish concrete measures for workplaces at which steam trap
check-ups and steam equipment energy conservation check-ups were performed.

2. Set priorities for reducing emission volumes of PRTR substances and VOCs for each businesssite, and draft and enact reduction plans with clear target values.

Environmental
Preservation■	Achieve zero emissions of waste.
■	Workplaces that achieve zero emissions will further reduce their

final disposal volume.

3. Continue to achieve zero emissions of waste. Set a final landfill reduction target for eachbusiness site and strive to achieve even lower waste landfill.

We will carry out risk assessments on products.
Specific details are as follows:■ Provide product safety information.

•	Reflect up-to-date information in safety data sheets (SDSs).

1. Reflect up-to-date product safety information in SDSs (MSDSs).
•	Provide accurate information on hazards to customers, etc.
•	Comply (by December 2015) with new JIS (JIS Z 7253) for SDSs.
•	Reexamine and put to use the SDSs/label management system.

Chemical and Product
Safety■ Conduct product risk management.

•	Perform risk evaluation and risk reduction.
•	Adapt to overseas regulations for product risk management.
•	Conduct appropriate assessment of new products.
■	Promote development of products with lower environmental impact
and energy saving technologies.

27

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2.	Implement in-house education on risk evaluation.
3.	Set implementation plans for risk evaluation.
	(Promote safety assessment during new product development.)
4.	Adapt to and support overseas laws and regulations.

2014 Achievements
Occupational injuries at MGC have declined significantly (from 9 to 2 accidents not accompanied by lost worktime),
and we have achieved zero loss time occupational injuries for two years straight. However, the number of occupational
injury incidents at our partner companies has stopped declining, and the number of occupational injury incidents
resulting in lost time has increased from the previous year. There have also been occurrences of similar accidents. The
occurrence of abnormal phenomena declined significantly from the previous year, from 10 to 5 incidents, but we have
yet to achieve zero occupational accidents.
1. As everyday activities, we continued our practice of hazard prediction prior to work, identification and response to
Hiyari Hatto [near-miss], and practice of 5S activities. We worked to prevent occupational accidents and injuries
through means including the implementation of risk assessments for identified sources of risk.
2. We worked to improve on-site competency through original methods at all business sites. Business sites that practiceTotal Product Maintenance activities engaged in strengthening of activities, description of Know-Why in standards
manuals, e-learning-based education, improvement of safety handbooks, the use of trouble diaries, and other activities.
At the Yamakita Plant and Mizushima Plant, we have also begun adoption of the safety competency assessment
system, which aims for self-diagnosis of on-site competency and self-operation of PDCA.
3. We performed reviews of whether plants are able to perform emergency shutdowns safely and whether safety
remains ensured over time, and undertook responses to issues that were discovered. At the Mizushima Plant,
Niigata Plant, and Kashima Plant, we began work on risk assessments from the approach of not only emergencies
but also unsteady situations.
At the same time, to make plants stable and ensure safety, under the leadership of the Production Technology
Division we worked on activities that included reducing the number of alarms and tasks, and education and training
for key persons involved in stabilizing plant operation.
We have identified risks and undertaken countermeasures by applying the Guidelines for Prevention of Chemical
Plant’s Accidents of the JCIA, to horizontally communicate information on major accidents in the chemical industry.
4. We held seminars as a means of preventing human error, and promoted our adoption of “point-and-call” activities,
working to entrench the practice at specified locations. At the Yokkaichi Plant, we confirmed the reduction of
Hiyari-Hatto [near miss] incidents and accidents caused by human error.
5. We conducted joint disaster prevention training, together with affiliated companies, partner companies andfirefighters. We worked to improve our ability to respond to emergencies by carrying out unannounced drills, as wellas drills envisioning blackout during a power outage and night-time incidents on non-working days.
6. We worked to raise our safety level through regular liaison meetings with partner companies, safety education forentry into facilities (including examinations), and regular safety education.
Our two-term, six-year Accident Zero Project (AZ activity) ended in March 2014. The activity lives on under a slightly
reformed framework within our Bridge activity, through which we are bringing the results and issues of the AZ
activity into everyday safety activities. This year, we also held a company-wide safety presentation meeting for the
first time, presenting case studies of improvement at business sites under the AZ activity (Phase II) and horizontallycommunicating the case studies across the company.

Assessment: Mostly achieved: Further efforts required

2015 RC Action Plan
To achieve the targets of the RC Medium-Term Plan 2017, we will
firmly establish the safety culture that was fostered through the
AZ activity in which all employees took part, and will share thisculture with partner companies to eliminate industrial accidents.
1. Steadily continue daily safety activities (hazard prediction,
Hiyari Hatto [near miss] incidents, 5Ss) to prevent these frombecoming routine and stagnant.
2. Enhance communication within business sites.
3. Analysis of past case studies, case studies from othercompanies, HH case studies, etc. and horizontal communicationof these to prevent the occurrence of similar incidents.
4. Activities to prevent occupational injuries at partner companies•	Improve equipment, support education, conduct risk assessment
in work and construction, enhancement communication, etc.
5. Conduct surveys of risks and hazards to workers fromchemical substances (adapt to the Amendment of the Industrial
Safety and Health Law).
Work toward the strengthening of on-site competency and safetycompetency, and the elimination of accidents and irregularities.
1. Establish the Bridge framework.
2. Adopt the safety competency assessment system of the Japan
Safety Competency Center.
3. Enforce risk assessments for unsteady situations (emergencies,
startup, shutdown, operation errors, personnel changes, etc.)
4. Steadily implement RC education and training according to
education guidelines.
Enhance education and training (improvement of operational
capability and emergency response capability).
5. Prevent the occurrence of similar accidents through analysis of
our and other companies’ past case studies (use of the Guidelines
for Prevention of Chemical Plant’s Accidents of the JCIA, etc.)
6. Enhance our disaster readiness framework.
7. Enhance equipment management and preparation for renewalof high pressure gas certification (NF).
8. Consider MGC Safety Standards (Head Office).

Led primarily by the Production Technology Division and the GHG Task Force.
1. FY 2014 energy consumption intensity was 95% that of FY 1990, and GHG emissions intensity was 81% that of FY 1990.
Among the approximately 50 energy efficiency- measures we implemented, we reduced the use of heat fromreactor devices; made thorough use of steam, which earlier had been released into the atmosphere, as a heatsource; switched the motors pumps and ventilation machinery to use inverters; and employed high efficiency
transformers. The energy-saving results of these measures brought a crude oil equivalent reduction of 8,700 kL,
and a reduction in GHG emissions equivalent to approx. 12,000 tons of CO2.

Undertake social contribution through the environment, while
continuing to reduce environmental impacts.
1.	Improve our energy consumption intensity and greenhouse gas
emissions intensity.
•	Promote energy saving measures.
•	Stably operate through the reduction of equipment problems.

2. We implemented reduction plans at business sites with high emissions. The substances addressed were
1,2,4-trimethyl benzene and xylene.
Our performance with respect to PRTR substances on the Japan Chemical Industry Association’s list was a
reduction of about 1.6% from the previous year, and a reduction of about 45% from our emissions in FY 2010. We
reduced VOC emissions by about 16% from the previous year, and about 51% from FY 2010.

2.	Adapt to the PRTR Law.
•	Business sites will specify substances with high levels ofemissions as key substances, and will draft and execute
reduction plans for these.

3. We achieved zero emissions at 8 of our 10 business sites (production sites and research labs). At 1 business site(the Mizushima Plant), however, a one-time generation of waste resulted from business decommissioning, and thefinal disposal volume of 968 tons was over 11 times that of the previous fiscal year.
The zero emissions rate for MGC overall was 1.19%, meaning that our record of zero emissions continued from FY
2008 to FY 2013.

3.	Continue zero emissions initiatives.
•	Maintain low levels of final disposal of wastes.
•	Work to reduce our volume of generated wastes.
4.	Initiatives toward the preservation of biodiversity.
•	Actively participate in and cooperate with nature conservationand environmental beautification activities near our businesssites.
•	Consider specific activities for the preservation of biodiversity.
		 (Head Office Environment and Safety Division)
5.	Consider methods for evaluation of environmentally friendly products.
(Head Office Environment and Safety Division)

1. We created 38 new SDSs and revised 170 to reflect up-to-date information.
•	We provided the most up-to-date information through the newly created or revised SDSs.
•	We established a system enabling understanding of the status of revisions, and advanced the adaption of SDSs tothe new JIS Z7253 standard. As a result, we adapted about half of our SDSs to the new JIS standard.

We will carry out risk management of products.
1. Provide up-to-date information through SDSs.
•	Comply with new JIS (JIS Z 7253) for SDSs (with completion
by December 2015).
•	Acquire and disseminate the latest versions of raw material
SDSs.

2. We provided training on risk assessment as a form of product liability training, targeting all business sites.
3. We created an evaluation form in accordance with the Japan Initiative of Product Stewardship (JIPS) of the JCIA.
We conducted 59 cases of in-house safety testing for new products in 2014; 37 related to acute toxicity (including
22 simple toxicity tests), 10 to the Ames test, and 12 to primary skin irritation. (Last year, these numbers were 15,
11, and 12 cases respectively, for a total of 38 cases.)
4. With regard to EU REACH regulations, we made preparations for the 2018 registration deadline for substances(about 50 substances), conducted additional tests of substances registered in 2010, and advanced protective
procedures (compliance) for EU customers.

2. Risk management of handled chemical products.
•	Participate in the JIPS initiative of the JCIA and creation ofsafety abstracts.
•	Promote risk assessment for new products.
3. Adapt to REACH regulations.
•	Adapt to EU REACH regulations.
•	Adapt to regulations of non-EU countries.
4. Reinforce management of chemical reagents.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

28

Responsible Care and MGC

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

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

Certified high pressure gas plants

Change in lost time injury frequency rate*1
2010

2011

2012

2013

2014

MGC

0.28

0.54

0.80

0

0

Chemical industry

0.72

0.88

0.85

0.82

0.76

Manufacturing industry

0.98

1.05

1.00

0.94

1.06

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

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

Change in lost time injury severity rate*2
2010

2011

2012

2013

2014

MGC

0.01

0.01

0.03

0

0

Chemical industry

0.04

0.04

0.12

0.12

0.17

Manufacturing industry

0.09

0.08

0.10

0.10

0.09

Certified process safety management system for highpressure gas
President*2 Severity rate: Number of lost working days per 1,000 working hours

Environment and safety meeting (Safety Measures Headquarters)

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

Safety Assembly(Niigata Plant)

Niigata Plant and Mizushima Plant, which are highpressure gas safety management code certified plants, areaudited by the Director in charge of environment andsafety (Process Safety Management General Controller)
under the company rules for “High pressure gas certification
safety management”. The aim of our audits is to objectively
evaluate the high pressure gas safety management systemand the certified inspection management framework toensure that they are working effectively.

Director in charge of environment and safety (Process safety management general controller)
Environment and safety division at the Head Office (Administrative action for certified self-maintenance)
Audits of certified plants
Audit of supervisory organization
for certified facility inspection

Audit of process safety management system
Certified plant

Supervisory organization for certified
facility inspection
Chief supervisor(appointed by the President)

Appropriate certified facility inspection
Confirmation of status of implementation

KYT training(Mizushima Plant)

Plan
Act Safety management system Do
CheckManagement departments
Certified facility
inspection
department· Process safety
management department· Operational management
department· Facility management
department

Responding to emergencies

Forklift course(Yokkaichi Plant)

Basic lifesaving training(Yamakita Plant)

Regular Maintenance Safety
Assembly(Kashima Plant)

Joint patrols with partnercompanies(Tokyo Techno Park)

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

Workshop led by young employee
instructors(Niigata Research Laboratory)

Risk experience simulation(entanglement)(Hiratsuka Research Laboratory)

Safety performance
In 2014, occupational injury incidents resulting in lost time
totaled zero cases at MGC, and one case at partnercompanies.

29

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Under the company-wide AZ (Accident Zero) Project to eliminate
accidents, from 2008 to 2013 MGC engaged in activities centered on thestrengthening of process safety, safety education, and communicationin plants and research laboratories. Through this project, we
succeeded in steadily reducing accidents and occupational injuries.
From FY 2014, we are working through the local safety anddisaster prevention subcommittee in each plant to strengthen related
activities. We are doing so under the label Bridge activities, throughwhich we seek to carry forward the achievements of the AZ Project.
We continue to undertake activities with improvement of “on-sitecompetency” in individuals and organizations and prevention ofequipment and operational problems through cooperation with theProduction Technology Division as key policies. At the same time,
our Environment and Safety Division and Production Technology
Division are cooperating to continue support for accident and trouble
countermeasures at plants.
In fiscal 2014, we also identified weaknesses in plants andmanufacturing departments by applying the safety competency
assessment system of the Japan Society for Safety Engineering tothese, and overcame the weaknesses by taking these up as themes
for improvement. The members of our local safety and disasterprevention subcommittees also conducted activities to resolve issues
specific to each plant with the perspective of the frontline in mind. With
regard to the addressing and “visualizing” of on-site issues throughmeans including TPM* activities and education on equipment
management, we worked to share good practices across the company.
Across the entire company, we worked to enhance informationexchange and communication extending across business sites,
through means including company-wide safety presentations andcompany-wide networking of accident reporting systems.
* TPM (Total Productive Maintenance) refers to improvement of production
with the participation of all personnel.

Process Safety and Disaster Prevention
Activities
To prevent the occurrence of accidents and injuries, it isimportant to continue stable operation by ensuring safetyof production processes and soundness of equipment. In
each plant, we conduct checks and make renewal plans,
and according to priority depending on risk and theimportance of facilities, push forward checks, repairs, andrenewal sequentially.
Considering the fact that explosions and fires continue
to break out in the chemical industry, we continue to identify
risks through comprehensive inspections of facilities andproduction processes, including emergency shutdown, todetermine the likelihood of similar accidents occurring at
MGC, and subsequently implement risk reduction measures.

Accident Elimination (Bridge) Activities

Sandbag stacking drills(Mizushima Plant)

Fire hose drills(Yokkaichi Plant)
Local survey by the Japan Safety
Competency Center(Niigata Plant)

Fire hose drills(Niigata Research Laboratory)

TPM consultant instruction meeting(Kashima Plant)

Press conference drills(Hiratsuka Research Laboratory)

Company-wide safety presentations

MITSUBISHI GAS CHEMICAL COMPANY, INC.

30

Responsible Care and MGC

Results of Environmental Preservation Initiatives under the RC
Medium-Term Plan 2014 (MGC alone)

Environmental Accounting (MGC alone)
Through environmental accounting, MGC has quantitatively calculated and released the costs ofenvironmental preservation and the real economic effects associated with our business activities.

The results of initiatives aimed at achieving the targets of the RC Medium-Term Plan 2014, for MGC alone,
are summarized below.

■ Achieve zero emissions of waste.

Environmental Preservation

Environmental Preservation Cost■	Workplaces that achieve zero emissions will

Benefits of Environmental Preservation
Activities

further reduce their final disposal volume.
The cost of environmental preservation activities includes
the investment costs of installing facilities to reduce
environmental impacts, as well as the expenses forrunning and managing those facilities and for research anddevelopment into environmentally friendly products.

■ Reduce energy consumption intensity to below

For MGC alone, we have defined zero emissions as a final
disposal volume of 0.3% or less of generated waste
volume, and are working to reduce wastes.
The zero emissions rate for MGC overall in FY 2014
was 1.19%, meaning that our record of zero emissions
continued from FY 2008 to FY 2013.

85% of the FY 1990 level.
• Implement energy saving measures and reduction ofequipment problems.
Energy consumption intensity for MGC alone in FY
2014 was 95% the level of FY 1990. (FY 2013: 91% of FY
1990 level)■ Investments

Final disposal volume and zero emissions rate

See pp. 35–36 for details.

Final disposal volume (normal)

Final disposal volume (one-time)

Zero emissions rate

(tons)■ Reduce greenhouse gas emissions intensity to

(%)

1.19

1,200

below 75% of the 1990 level.
GHG emissions intensity for MGC alone in FY 2014 was
81% the level of FY 1990. (FY 2013: 76% of FY 1990 level)
See pp. 35–36 for details.

1.20

968
900

0.90

600

0.60

953

■ Promote reductions in PRTR substances and VOC

300

emissions.
• Focus reductions on substances with high emissions
volumes.

2010

Performance in PRTR substances (MGC alone), by fiscal year
Number of PRTR substances

Transfers

Amount (t)Number of substances

700

70

640
600

58
557

500

59

57

58

57

551

362
307

312

298
235

200

40

10

0

0

2011

2012

2013

2014

(FY)

The significant reduction in emissions was due to theinstallation of devices for the recovery of
1,2,4-trimethylbenzene (a Class I Designated Chemical
Substance under the PRTR Law revision of 2009) inequipment vents, and subsequent reduction of emissions
into the atmosphere.

31

2012

84
2013

15
2014

■ Expenses■ Economic benefit

Total expenses related to environmental conservation
activities in FY 2014 were 8.3 billion yen. Of these, thehighest expense was 2.7 billion yen for research anddevelopment, accounting for 32% of the total. The next
highest was 1.6 billion yen for costs associated withprevention of water pollution, representing 20% of the total.

Expenses reduced through energy saving, and income
earned by handling unneeded items generated in ourbusiness activities as valuable waste, generated real
economic benefit.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

■ Environmental preservation benefits

See p. 31 for our performance numbers.

Economic benefit

0

Title

(FY)

The increase in final disposal volume in FY 2014 was due
to a one-time increase in disposal volume of unneeded
items accompanying a partial decommissioning ofbusiness at the Mizushima Plant.
At each of 8 other business sites, we continued toachieve zero emissions and are further reducing final
disposal volume.

Amount(millions of yen)

Item

IncomeProfit on sale of valuable waste, etc.

32.3

Reduction of expenses

Effects due to energy saving

635.1

Environmental preservation cost (Breakdown of investment and cost by business)
Breakdown

Onsite cost

Pollution
prevention
cost(millions of yen)

Main areas of activity

Investment

Expenses

Air pollution prevention

Enhancement, catalyst renewal, and maintenance of emission gas recovery equipment

84.4  665.5

Water pollution prevention

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

93.9

1,661.3

Soil, Noise

Prevention of soil infiltration; noise prevention measures

42.6    0.0

Global environmental preservation cost

Installation of new heat recovery equipment and replacement of lighting with LED lighting

278.6

1,612.9

Resources recycling costMaterial and thermal recycling of waste  2.7  934.7

Up or down stream cost

Retrieval and reuse of product containers; yellow card management  0.0   98.9

Management activity cost

Maintenance of green spaces and environmental-related analysis

51.6  568.8

30
20

100

2010

2011

0.10
122

From FY 2010 to FY 2014, we significantly reduced ouremissions of chemical substances targeted under the
PRTR Law.

50

400
300

0.14
130

The total of investment in environmental preservation
activities in FY 2014 was 870 million yen. The main itemsof that investment were the enhancement of dust
collectors at the Mizushima Plant and the enhancement ofwastewater processing equipment at the Niigata Plant.

60

447
339

0.14
97

0

PRTR substance emissions volume for MGC alone
was 46% the level of FY 2010.

Emissions

0.30

0.11

In addition to the reduction in the environmental impactthat resulted from our environmental preservation efforts,
we realized positive economic benefits, such as income
from the sale of waste products and reduction of
expenses through energy saving.

R&D cost

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

323.9

2,733.0

Social contribution cost

Greening of surrounding areas; support for environmental conservation organizations  0.0    8.1

Environmental damage cost

Pollution impacts levy  0.0   80.4

877.8

8,363.6

Total
Compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005
Period: From April 1, 2014 to March 31, 2015
Scope: MGC only

Methods: Investments are proportionally related to the approved or enforced amount of capital expenditure to environmental preservation. Expenses areproportionally related to the ratio of environmental preservation and include depreciation allowance.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

32

Responsible Care and MGC

Environmental Impacts Accompanying Business Activities(Domestic MGC Group)
Member companies of the MGC Group Environment and Safety Council in Japan carry out activities to reduce
environmental impacts in accordance with the MGC Group’s fundamental environmental and safety principles.
The table below displays the environmental impact of the MGC Group’s operations in FY 2014.

Total for the Domestic MGC Group*1

MGC Alone

FY 2013*2

FY 2014

FY 2013*2

FY 2014

Sites tabulated: 65

Sites tabulated: 66

Sites tabulated: 13

Sites tabulated: 13

INPUTSUnits

FY 2013

FY 2014INPUTSUnits

FY 2013

FY 2014

Energy consumption including purchased
electricity (crude oil equivalent)

1,000 kL   661   605

Energy consumption including purchased
electricity (crude oil equivalent)

1,000 kL547   507

Water usage

Water usage

Tap water

1,000 m3

1,313

1,251

Tap water

1,000 m3   723   722

Industrial water

1,000 m3

25,933

24,582

Industrial water

1,000 m3

22,302

21,397Groundwater

1,000 m3

1,506

1,395

Groundwater

1,000 m3   365   387

River water

1,000 m3

13,340

10,660River water

1,000 m3

13,340

10,660

Others1,000 m3

1,239

1,250

Others1,000 m3   936   9341,000 m3

43,33039,1331,000 m3

37,66634,099Total water consumption

Total water consumption

Environmental Impacts
Accompanying Business
Activities

Units

FY 2013

FY 2014

Emissions to atmosphere
Greenhouse gas emissions(CO2 equivalent)

OUTPUTSUnits

FY 2013

FY 2014

Emissions to atmosphere1,000 tons  1,586  1,456

Greenhouse gas emissions(CO2 equivalent)

1,000 tons

1,307

1,223

MGC is a signatory and promotional partner to the
Keidanren (Japan Business Federation)
Declaration of Biodiversity.

With respect to MGC Group companies sited overseas,
MGC surveys and compiles environmental impact data forthose companies that engage in manufacturing.
We targeted 8 companies and 9 sites in the CSR
Report 2014, expanding this to 12 companies and 14
sites in the CSR Report 2015.
Not all sites had data available for some of the item
categories. In the future, we will increase the number ofcompanies for which we compile data and will further
enhance the surveys.

Overseas MGC Group Companies
2013*2

3.	Act voluntarily and steadily to contribute tobiodiversity

2014
3

3

Sites tabulated: 14*

Sites tabulated: 14*

Units

2013

2014

Water usage
Tap water

1,000 m3

  242

  264

Industrial water

1,000 m3

3,448

3,545

Groundwater

1,000 m3

4,734

7,855

    147     66

SOx emissions

tons    76    53

River water

1,000 m3

    0

    0

NOx emissions

tons    746    669

NOx emissions

tons   673   600

Others1,000 m3

  903

  886

Soot and dust emissions

tons     26     17

Soot and dust emissions

tons    22    10Total water consumption

1,000 m3

4,599

4,703

Units

2013

2014

1,000 tons  346   3641,000 m3

3,459

3,877

Released to water area
Drainage volume

1,000 m3

34,80333,394OUTPUTS    266

COD emissions

tons   194   238Emissions to atmosphere    338    447

Total nitrogen emissions

tons   316   428

Greenhouse gas emissions(CO2 equivalent)     65     38

Total phosphorus emissions

tons    61    35Drainage volume

62,02042,298COD emissions

tons    256

Total nitrogen emissions

tons

Total phosphorus emissions

tons

Generation of waste

Generation of waste
tons

169,658

139,989

Amount generated

tons

86,012

81,172

Amount recycled (including amount sold)tons

43,17440,089Amount recycled (including amount sold)tons

22,722

20,971

Transfer to off-site

tons

38,09736,130Transfer to off-site

tons

6,326

8,222

Final disposal

tons  5,209  3,309

Final disposal

tons    84   968

Notified substances under PRTR Law

Released to water area
Drainage volume

Amount generated

Notified substances under PRTR Law

Generation of waste
Amount generated

tons

9,512

10,239Amount recycled (including amount sold)

tons

5,869

7,020

Final disposal

tons

2,035

1,790

Notified substances under PRTR (TRI) Law

Emissions (air)tons  1,553  1,452

Emissions (air)tons   298   284Emissions (air)

tons

  110

    73Emissions (water)

tons     25     20

Emissions (water)tons    15    15Emissions (water)

tons

   26

    26

Emissions (soil)

tons      0      0Emissions (soil)

tons     0     0Emissions (soil)

tons

    0

     0Total amount emitted

tons  1,578  1,472

Total amount emitted

tons   312   298

Total amount emitted

tons

  136

    98

Total amount transferredtons    899    868

Total amount transferredtons   235   363

Total amount transferred

tons

  281

   249*1 The total for the domestic MGC Group is the sum of environmental impact data for the main domestic manufacturing and processing businesses (member
companies of the MGC Group Environment and Safety Council; see pages 43 to 46) and MGC itself (production sites such as plants and non-production
sites such as laboratories and sales offices, with training centers and company-owned recreation facilities together treated as one site).
The environmental impact data shown here captures over 90% of the scope of consolidated accounting for the MGC Group in Japan.
*2 FY 2013 data may appear differently in CSR Report 2014 because it has been revised.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

7 Clauses of Keidanren’s Declaration of Biodiversity

2.	Act from a global perspective on thebiodiversity crisis

tons

1,000 m3

Endorsing the aims of the Keidanren (Japan Business
Federation) Declaration of Biodiversity of 2009, MGC hassigned on as a promotional partner of the Declaration.
In 2014, MGC became a member of the Keidanren
Nature Conservation Committee with the aim of engaging
in activities to protect the natural environment andconserve biodiversity.

1.	Appreciate nature’s gifts and aim for corporate
activities in harmony with the natural environment

SOx emissions

Released to water area

33

(MGC alone)(Overseas MGC Group)

INPUTSOUTPUTS

Preservation of Biodiversity

4.	Promote corporate management for sustainable
resource use
5.	Create an industry, lifestyle, and culture that willlearn from biodiversity
6.	Collaborate with relevant international andnational organizations
7.	Spearhead activities to build a society that will
nurture biodiversity

The chemical industry is continuing its efforts to reducethe impacts of its business activities on the naturalenvironment through means including chemical productmanagement, environmental preservation, and resourceand energy conservation, based on responsible care
activities conducted globally.
In order to achieve sustainable social development
while benefiting from the bounty of the naturalenvironment, MGC will continue working toward themaintenance of an abundant natural environment and thepreservation of biodiversity, through the steady executionof responsible care and the development ofenvironmentally friendly products and technologies.

*3 Targeted companies: TE AN LING TIAN (NANJING) FINE CHEMICAL
CO., LTD.; MGC ADVANCED POLYMERS, INC.; MGC PURE
CHEMICALS AMERICA, INC.; MGC PURE CHEMICALS SINGAPORE
PTE. LTD.; MGC PURE CHEMICALS TAIWAN, INC.; P.T. PEROKSIDAINDONESIA PRATAMA; SAMYOUNG PURE CHEMICALS CO., LTD.;AGELESS (THAILAND) CO. LTD.; KOREA ENGINEERING PLASTICS
CO., LTD.; MITSUBISHI GAS CHEMICAL ENGINEERING-PLASTICS(SHANGHAI) CO., LTD.; THAI POLYACETAL CO., LTD.; THAIPOLYCARBONATE CO., LTD.
MITSUBISHI GAS CHEMICAL COMPANY, INC.

34

Responsible Care and MGC

Initiatives for the Prevention of Global Warming (MGC alone)
At MGC, each sector—manufacturing, transportation, office and residence—is making efforts to prevent
global warming.

FY 2014 energy consumption and greenhousegas (GHG) emissions for all of the company’sbusiness activities were as follows. Emissions
from plants’ manufacturing divisions accountfor 97% of greenhouse gas emissions.

Energy consumption(1,000 kL crude oil equivalent)Greenhouse gas emissions(1,000 tons-CO2 equivalent)

Plant Manufacturing Division

491.1

1,184.4

Transportation Sector (shipper)

9.7

25.7

Office Area

6.1

12.3

Business activities overall

506.9

1,222.5

Change in CO2 emissions from transport
By truck

40

Energy consumption intensity*1:
Reduce to 85% or lower compared with FY 1990 levels
by FY 2014
GHG emissions intensity*2:
Reduce to 75% or lower compared with FY 1990 levels
by FY 2014
*1 Energy consumption intensity: The amount of energy consumption
per unit of production volume*2 Greenhouse gas emissions intensity: The amount of GHG emissions
per unit of production volume

Change in energy consumption amount and consumption rate
Energy consumption amount

Energy consumption rate

Amount(1,000 kL as crude oil equivalent)
1,000

1.00

Target rate for FY 2014
Energy consumption rate
(FY 1990 = 1)

0.95 1.00 0.95 0.95 0.92 0.91 0.95

1.0

544 554 569 562 577 531 493 533 550 556 531 491

0.6

0.93 0.88

0.87 0.89 0.89

800

0.8

600
400

430

0.4

200

0.2

0

0.0
1990

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(FY)

Change in GHG emissions and GHG emissions intensity
Emission amountGHG emissions intensity

GHG emission amount(1,000 tons CO2 equivalent)
2,500

1.00

2,000

0.86 0.83 0.87 0.82 0.83 0.84
0.81 0.79 0.78
0.81
0.76

1,541 1,536 1,562 1,560 1,490

1,500
1,000

0.91

1,184

Target rate for FY 2014
GHG emissions intensity(FY 1990 = 1)

1,334

1,303 1,330 1,268 1,184
1,166 1,275

1.0
0.8
0.6
0.4

30

500

0.2

0

0.0
(FY)

1990

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Under the impact of decreased production, in FY 2014
our energy consumption and GHG emissions eachdeclined by 7%. However, we were unable to achieve thenumerical targets we have set for energy consumption
intensity, which worsened by 4.8% to reach 95% of thelevel of FY 1990. Similarly, GHG emissions intensity

35

MITSUBISHI GAS CHEMICAL COMPANY, INC.

worsened by 6.8% to reach 81% of the level of FY 1990.
We implemented over 50 energy conservation measures,
including collecting and using by-product gases, recovering
heat from exhaust gases, switching over to higher efficiency
exhaust gas cracking furnaces, recovering unused energy
during decompression, reducing heat usage in reactor
equipment, and switching to LED for street lighting. Theenergy-saving effect of these measures has reached theequivalent of 10,000 kL of crude oil, with a GHG emissions
reduction effect equivalent to 19,700 tons of CO2.
Looking ahead, we are planning measures that include
increased efficiency in freezers, decreased usage of city
gas for incinerators, and effective use of excess steam.

Initiatives in the Transportation Sector
As an energy-saving measure in our Transportation Sector,
MGC is undertaking initiatives focused on efficiency
improvements in truck transport (use of larger transport lot
sizes and improvement in loading ratio), use of larger ships
for transport, and modal shift to rail transport. In FY 2014,
energy consumption and GHG emissions each declined
by 4% due to a 5% decline in transportation volume, as
measured in ton-kilometers (transport weight × transportdistance). FY 2014 CO2 emissions intensity worsened 1.0%
from the previous year, reaching 95% of the level of FY 2006.
Looking ahead, we are planning energy conservation
measures that include a modal shift to rail from hauling on
main lines and a shift to larger ships for marine transport.
Change in volume of transportation
By truck

By ship

By railAmount transported(millions of ton-kilometers)
600
500

5%

5%

400
300

62%

0

33%
2006

6%

64%

65%

30%

28%

62%

200
100

6%

33%
2007

2008

2009

6%
64%

30%
2010

5%

4%

65%

65%

65%

30%

31%

30%

5%

2011

2012

CO2 emissions intensity

2013

4%
65%

31%
2014

(FY)

CO2 emissions intensity(FY 2006 = 1)

1.000
2%

10

Under the following numerical targets for our plant
manufacturing divisions, we have worked to reduceenergy consumption and GHG emissions.

By rail

CO2 emission(1,000 tons)

20

Manufacturing Plant Initiatives

By ship

0.990

0.980

30%

2%
30%

68%

68%

0.969

2%
33%

3%
37%

65%

61%

0.945

0.940

0.926

3%
33%

0.942

0.951

2%
34%

2%
35%

2%
35%

2%
35%

63%

63%

63%

2007

2008

2009

2010

0.8
0.7

65%

64%

0
2006

1.0
0.9

2011

2012

2013

2014

adjacent power plant with geothermal steam. In May 2015,
we began construction of the Wasabizawa geothermal
power plant as part of a joint project in Yuzawa, Akita
Prefecture. The power plant is expected to begin
operation in 2019 and achieves an output of 42,000 kW.
We are also taking part in several survey projects in
Hokkaido and the Tohoku region, with the aim of
constructing new geothermal power plants.
Conceptual drawing of the Wasabizawa geothermal power plant

0.6
(FY)

Reinjection pad

Activities in the Office and Employee
Residence Area
We conduct a number of proactive measures to reduceenergy consumption at our head office and laboratories.
These include ‘Cool Biz’ during summer, ‘Warm Biz’
during winter, and turning off lights, air conditioning, andother equipment when not in use.
As a result of continuing these measures in FY 2014, ourenergy consumption declined 0.4% to achieve 92% of thelevel in FY 2010, prior to the Great East Japan Earthquake.
Looking ahead, we are planning initiatives that include
a further shift to LED lighting and increased efficiency for
air conditioners.
Change in energy consumption in the business operations division
Energy consumption (1,000
kL crude oil equivalent)Greenhouse gas emissions(1,000 tons-CO2 equivalent)

2010

6.68

11.05

2011

5.66

8.98

2012

5.80

10.67

2013

6.17

12.41

2014

6.15

12.32

FY

Development of Renewable Energy
MGC is participating in a project to develop and generate
electricity from geothermal energy, a type of renewableenergy. Environmentally friendly and clean, geothermalenergy emits minimal CO2 during power generation and isa renewable resource that could last almost forever if usedappropriately. Geothermal power also shows great promisefor being entirely generated within Japan making good useof our abundant resources. It is also noted for its advantage
as a base-load power unaffected by weather or seasons.
Over the past 20 years, MGC has conducted a joint
project in Hachimantai, Akita Prefecture, to supply an

Reinjection hot watertransport pipe

Power plant

Geothermal production pad

Project area

Promoting the Development andUtilization of Low-Carbon Energy
Natural gas is a clean fuel that emits little CO2 per calorieof energy compared to coal or petroleum, as well as lesssulfur and other impurities. In Niigata Prefecture, MGC has
been actively conducting exploration and development
work on natural gas. We have deployed natural gas at our
Niigata Plant, where it is used as both a raw material andan energy source for the products of the plant.
We are promoting the switch to natural gas-derived
fuels, such as city gas and LNG, at other plants as well.
Fuel conversion at our plants has come to an end, withnatural gas-related fuels making up a larger percentage ofour company-wide energy consumption. In FY 2014, thisusage rose 2% from the previous year to reach 60%.
Change in energy source component ratio
Natural gas

Energy source component ratio(based on thermal units) (%)

Heavy oil

By-product fuelCoal

Purchased power

Other purchased fuelPurchased steam

100
80
60
40
20

35%

38%

39%

48%

53%

58%

57%

57%

58%

60%

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

36

Responsible Care and MGC

Reducing Chemical Substance Emissions (Domestic MGC Group)

Waste Reduction (Domestic MGC Group)

In accordance with law, each MGC Group company assesses and issues notifications on substances
subject to the Pollutant Release and Transfer Register (PRTR), while working to reduce the amounts
released and transferred.

Each MGC Group company is striving to reduce waste by promoting the 3Rs* of waste, with proper
disposal of wastes in accordance with law as the foundation for initiatives.
* 3Rs: Reduce, Reuse, Recycle (waste products)

Final disposal amount

Substances Subject to Notification under
the PRTR Law

PRTR Law Substances with High Levelsof Emissions

In FY 2014, the MGC Group made notifications for the 89
substances that we handled. Our annual emission of thesesubstances totaled 1,471 tons, a decrease of about 7%
from 1,578 tons in the previous year. The Group’s amountof transfers totaled 867 tons, a decrease of 32 tons, orabout 4%, from the previous year.

Among the substances registered under the PRTR Law,
those listed below are emitted by the MGC Group in
amounts of 10 tons or more.
■ Chloromethane (1,142 tons)■ 1,2,4-Trimethylbenzene (196 tons)■ Dichloromethane (63 tons)■ Xylene (13 tons)

PRTR Law substance emissions
MGC alone■ Toluene (12 tons)

2,000

100

89

86

88

86

90

1,600

80

1,400

70

1,178

1,200

60

1,000

50

1,212

1,130

800

1,173

1,266

40

600

30

400

20

640

200

339

0

2010

2011

312

307
2012

2013

298
2014

10
0
(FY)

PRTR Law substance transfers
MGC alone

Domestic MGC Group

Amount (tons)
1,400
1,200
1,000

633

800

449

484

600

505
664

400

557

200

551

447

0

2011

5,000
4,000
3,000

5,125

4,983

2,000
1,000
0

1,561

1,411

97

130

2010

Amount of waste generated

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

2011

122
2012

2,341

968

84
2013

2014

(FY)

MGC alone

MGC Group total

MGC alone(kg/million yen)Domestic MGC Group(1,000 tons)

12

180

10

10.91
9.74

160

The Japan Chemical Industry Association, in which MGC
has joined, specified 433 substances plus 1 substancegroup as voluntary “PRTR-targeted substances” inconjunction with revisions to the law at the time ofreporting on actual performance in FY 2010. The entire
chemical industry is working toward the reduction of PRTR
substance emissions.
MGC itself is working to assess and reduce
substances targeted by the JCIA. In FY 2014, the amountof substances emitted on a FY 2010 basis totaled 79
substances and 426 tons, a decrease of about 3 tons
from the previous year and a decrease of about 45% fromFY 2010.
Transfers totaled 773 tons, an increase of 148 tons, orabout 24%, from the previous year. This was primarily due
to one-time increases in transfers caused by the shutdown
and renewal of some equipment.

8

140

83.6

76.4

120

48.2

100

45.3

6.25

6

58.8

4

80
60

3.68

3.41

2.51

2

40

90.7

87.4

84.9

86.0

81.2

20

0

0

2010

2011

2012

2013

2014

0.29

0.37

0.33

0.20

2010

2011

2012

2013

2014

(FY)

(FY)

Recycled amount
MGC alone

Domestic MGC Group(1,000 tons)
60
50
40
30

22.1

19.4

27.5

25.7

15.8

20.5

19.1

25.0

22.7

21.0

20
10

2012

2013

2010

362
2014

(FY)

* PRTR emissions volume and transfer volume have been revised becauseof changes to tabulation data for FY 2013.

Volatile Organic Compounds (VOCs)(MGC alone)
At MGC (standalone), PRTR Law substances, and thoseon the JCIA list, for which there is release into theatmosphere, are tallied as VOCs.
Atmospheric release of VOCs in FY 2014 totaled 22
substances and about 358 tons, a decrease of about 17
tons from the previous year. This marks a 51% decrease
from our release in FY 2010.

2011

2012

2013

2014

MITSUBISHI GAS CHEMICAL COMPANY, INC.

(FY)

Waste treatment in the domestic MGC Group in FY 2014

Recycled amount
31,402 tons
(22.4%)

Reduced amount72,457 tons
(51.8%)

Reduced amount24,134 tons
(17.2%)

Recycled amount
8,687 tons
(6.2%)

Amount emitted
externally
36,130 tons

Generated amount
139,989 tons
(100%)
Amount landfilledinternally0 ton (0%)

37

6,000

FY 2014 waste amounts totaled about 140,000 tons
Group-wide, a decrease of about 30,000 tons from theprevious year. This was due to an end to the generation of
unneeded material accompanying reassessments ofbusiness operations.
Final disposal for the Group totaled 3,300 tons, adecrease of 1,900 tons from the previous year. This wasdue to an end to the generation of sludge and soil waste
accompanying decommissioning of business operations.

0

235
2010

Domestic MGC Group

Final disposal intensity compared to net sales

Number of substances

87

MGC alone(tons)

Number of notified substances

Domestic MGC Group

Amount (tons)

1,800

Waste Reduction Achievement

On-SiteOff-Site

Final disposal
3,309 tons
(2.4%)MITSUBISHI GAS CHEMICAL COMPANY, INC.

38

Responsible Care and MGC

Air and Water Conservation (MGC Group)

Safety Management of Chemicals and Products

To balance conservation of the natural environment with sustainable production activities, each MGC Group
company is working to reduce the environmental impact of production activities through investment inequipment and stabilization of operations.

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

Emission of total nitrogen

Preservation of Air Quality

MGC alone

Safety Assessment of Chemical Substances and Products

Domestic MGC Group(tons)We are working to preserve air quality by managing
emissions of sulfur oxides (SOx), nitrogen oxides (NOx),soot and dust, and other harmful substances contained in
the emission gas of combustion facilities.

250
0

23.1

22.4

269.0

230.6

2010

2011

22.5
148.8
2012

22.4

19.0

315.8

427.6

2013

2014

(FY)

Emission of total phosphorous

Emission of SOx
MGC alone

500

MGC alone

Domestic MGC Group

Domestic MGC Group(tons)(tons)

100

300
50

2.0
54.4

200
0

28.6

36.0

100

150.8

112.2

0

2010

2011

93.2

71.6

64.9

75.7

2012

2013

2010

2011

4.6

4.6

69.0

60.7

2012

2013

2.4
35.4
2014

(FY)

13.0
53.1
2014

(FY)

Domestic MGC Group

750

54.7

500

668.3

250

60.4

65.7

72.9

68.8

605.7

624.9

673.3

673.1

2010

2011

2012

2013

2014

Domestic MGC Group

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

Water consumption

Safety data sheets (SDSs)

Domestic MGC Group

Overseas MGC Group(1,000 m3)
60,00060

40,000

20

6.2

0

29.1

17.5
6.1
21.5

30.9

2010

2011

2012

2013

6.9
10.5
2014

39,11439,891

0

2010

(FY)

2011

4,599
5,664

802
5,489

800
5,192

5,193

20,0003.5
22.4

37,66639,198
2012

4,703
3,986

2013

34,0992014(FY)

Wastewater
MGC alone

Domestic MGC Group

Overseas MGC Group(1,000 m3)

Preservation of Water Quality
We are endeavoring to preserve water quality by managing
chemical oxygen demand (COD), total nitrogen, total
phosphorus, and other chemicals within our wastewater.
The increase in nitrogen seen during FY 2013 and FY
2014 was due to increased processing of wastewaterassociated with the decommissioning of facilities.
Emission of COD

3,755
32,858

0

2010

171
29,782

114
3,626
2012

3,877
8,905

34,80333,67833,026
2011

3,459
27,217

2013

33,3942014(FY)* Water consumption for FY 2013 is reassessed and revised.
For overseas Group data, calendar year values are added as-is to fiscal
year data.

Water usage intensity relative to consolidated net sales for
the MGC Group worldwide is on a declining trend.
Global water usage / wastewater volume intensity
compared to consolidated net sales

Domestic MGC Group(tons)

Water usage intensity

400

Wastewater volume intensity

3(m /million yen)

300

38.6

200

260.4

100

30.5

65.8

62.5

27.6

231.6

202.4

193.9

238.4

100
50
0

2011

2012

2013

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2014

136

150

0

2010

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

Hazard classifications● Survey of applicable laws
● GHS classification● United Nations classifications● Preparation of warning labels(product labels)● Preparation of Yellow Cards

Premarketing investigations

SDSs are documents that convey detailed
information about the handling and safety ofchemicals, and are submitted to companies that
handle our chemicals, such as customers, sales
agents, and shipping companies. SDSs for all
products are in compliance with GHS, and we arein the process of reviewing them in accordance with
the new JIS (JIS Z 7253) and enhancing safety
information.

● Assessment of risk management● Determination of marketability

Product supply● Provision of safety information● Compliance with applicable laws
● Rationalization of product logistics● Collection of customer information

80,00040,000

MGC alone● Applicability survey for new substances● Preparation of SDSs

The increase in wastewater in FY 2012 and FY 2013 wasa one-off event due to the intensive processing ofwastewater stored in tanks associated with thedecommissioning of facilities.

MGC alone(tons)

40● Survey of requirements for area of usage(FY)

Emission of soot and dust
MGC alone● Survey of literature related to safety

Customer information0● Acquisition of SDSs for raw materials

Preparation of safety information

Providing Safety Information(tons)
1,000

39*1 GHS: The Globally Harmonized System of Classification and Labeling of Chemicals. Chemicalhazards are classified under fixed standards and are indicated clearly with pictograms onlabels and SDS documentation. Ultimately, the information contributes to accident prevention,
human health, and environmental preservation.

Global Water Consumption / Wastewater
VolumeEmission of NOx
MGC alone

2.1
53.0

At the development stage of products, MGC first conducts basic surveys
and safety assessments. When products correspond to new chemical
substances, we submit the notifications required by law and conduct
necessary safety testing. We then classify products according to whether
they do or do not come under each legal regulation, as well as according totheir degree of hazard under standards such as GHS,*1 and create safety
information such as safety data sheets (SDSs).
Based on these, we perform risk assessments (based on hazards ofthe substances themselves and exposure) for all product processes, frommanufacture to disposal, and offer the products after appraisal.

Basic survey

(FY)

98

101

81

81

2010

2011

122

LabelsYellow Cards

Easy to understand GHS compliant warnings and safety
information for users are printed on labels affixed to ourchemical products. At present, we are in the process of
updating and reviewing label information in accordancewith revision of SDSs based on the new JIS (JIS Z 7253).

A Yellow Card is a card readied in preparation for an
accident during domestic shipment. It briefly lists a
product’s properties, laws that apply
to the product, and emergency
response measures, as well as
contact information including fire
departments, police departments,and our company. We distributethese cards to shippers ofchemicals, and ensure that they arecarried during product shipments.

87

97

90

81

2012

2013

2014

(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

40

Responsible Care and MGC

12 Member Companies of the MGC Group Environment and Safety
Council

Safety Management of Chemicals and Products

Twelve domestic partner companies of the MGC Group that handle chemical products are promoting
environmental and safety initiatives within the MGC Group Environment and Safety Council. In addition, thedirector in charge of the environment and safety carries out environmental and safety audits on domestic
and overseas affiliates.
RC Medium-Term Plan

Chemical and Product Safety Education
MGC conducts chemical and product safety education
within its product liability (PL) training at each businesssite. In 2014, we carried out briefings on the Product
Liability Act and company rules related to the Act.
We also carry out education, such as points of caution
regarding product liability risk assessments and regarding
what to include on
SDSs for addressing
risks, for practitioners
concerned withmarketing examinationand SDS preparation.
PL education (Head Office)Emergency Responses in Distribution
At MGC workplaces, we have set up a wide-area support
system that includes supplying emergency goods andapparatus to production sites and establishingcommunication between sites to facilitate emergency
responses to accidents that occur during transportation.
Because of our preparation of response systems andsupplies, we cooperate with local police or fire
departments upon request, should an accident occur
during another company’s transport of product in thevicinity of our workplaces.
We conduct training for scenarios that include
terrorism, logistics accidents, and shipping accidents withmarine spills that require oil barrier deployment.

MGC Group Environment and Safety
Council Meeting

Suspicious item disposal drill(Mizushima Plant)

Unannounced logistics accident
response drill(Mizushima Plant)

Logistics accident response drill(Yokkaichi Plant)

A meeting held at the MGC
headquarters* GLP (Good Laboratory Practice): GLP is a system which ensures the reliability of test results, throughgovernment recognition of excellent testing facilities that demonstrate GLP standards-based management,
testing equipment, test planning, internal auditing systems, reliability assurance systems, and compliance withtest result standards.

Environmental and Safety Audits
With the director in charge of the environment and safety
as team leader, we conduct 4 or 5 domestic and 5 or 6
overseas environmental and safety audits each year in
support of the Group companies’ environment and safety
activities.
In FY 2014, the 12 companies below were audited.
■ MGC ELECTROTECHNO CO., LTD.
■ JAPAN FINECHEM CO., INC., Sakaide Plant■ JAPAN PIONICS CO., LTD., Isehara Plant■ SHINSANSO KAGAKU CO. Tomakomai Plant■ YONEZAWA DIA ELECTRONICS CO., INC.
■ MGC PURE CHEMICALS TAIWAN, INC. (Taiwan)■ MGC PURE CHEMICALS AMERICA, INC.
(MPCA/AMERICA)■ MGC ADVANCED POLYMERS, INC. (MAP/AMERICA)■ AGELESS (THAILAND) CO., LTD. (AGT/THAILAND)■ MGC ELECTROTECHNO (THAILAND) CO., LTD.
(ETT/THAILAND)■ THAI POLYACETAL CO., LTD. (THAILAND)■ THAI POLYCARBONATE CO., LTD. (THAILAND)MPCA (U.S.) audit

MAP (U.S.) audit

ETT (Thailand) audit

AGT (Thailand) audit

Study tour of the MGC Hiratsuka
Research Laboratory

Sharing Safety Information across the
MGC Group
If an accident or occupational injuries occur at an MGC
Group company, both in Japan and abroad, information isimmediately distributed across the Group using the safety
information conveyance system to help prevent similar
incidents from occurring. Furthermore, excellent examples
of environmental and safety initiatives at MGC Group
companies are introduced and shared across the Groupas good practices.

The MGC Niigata Research Laboratory is recognized by the Japanese government asconforming to GLP* test facilities for Ames mutagenicity testing and biodegradability
testing. GLP test reports command high confidence internationally. In addition, as GLP
test reports can be used in notifications under the Industrial Safety and Health Law andthe Law concerning the Evaluation of Chemical Substances and Regulation of Their
Manufacture, etc., we conduct GLP tests when notifications are necessary for new
chemical substances that are part of our product development.
We conduct testing to assess the safety of the chemicals handled by the MGC Group,
including acute oral toxicity tests, primary skin irritation tests, and pathogenicity tests.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

information on abnormal occurrences
and occupational injuries■	Inspection of domestic and overseas
affiliates■	Support for the environmental and safety
activities of domestic and overseas
affiliates■	Setting of environmental impact reductionplans by the domestic MGC GroupOn-site ship inspection drill(Mizushima Plant)

GLP Certified Testing Facility

41

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

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

Compliance with EU REACH Regulations
and Extension to JIPS
As one adaption to the EU’s REACH regulations forchemical product management, we are performing
registration of chemical substances that are exported toEurope. For this registration, information regarding
exposure of the chemical substances to humans and to
the environment throughout the supply chain is collected
and evaluated, along with hazard-related information(so-called risk information).
As this activity meshes with the Japan Initiative of
Product Stewardship (JIPS) initiative of the JCIA, we aretaking the information used for REACH registration andextending it to JIPS as well, while also making active useof it in our management of chemical substances.

■	Strengthening of communication with2015 RC Action Plan
■	Sharing and horizontal communication ofColony Analyzer

MITSUBISHI GAS CHEMICAL COMPANY, INC.

42

Responsible Care and MGC
12 Member Companies of the MGC Group Environment and Safety Council

Eiwa Chemical Industry Co., Ltd.

JSP Corporation

Manufacture and sale of blowing agents

Manufacture and sale of foamed plastics

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

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

Hirotsugu Yamamura

Firefighting drill using
powder-based
extinguishers

Kozo Tsukamoto

As a dedicated manufacturer of foamed plastics, we
supply the world with products that meet the needsof the times with respect to energy conservation,
resource conservation, and environmental preservation.
As an internationally competitive company thatprioritizes safety and adaption to the environment, we
aim to engage in business activities that earn thetrust and satisfaction of stakeholders, and willcontinue to work toward harmony among ourbusiness, the environment, and safety.

Local dialogue meeting on
Responsible Care for the
Yokkaichi district, held jointlywith companies from the region

President & CEO

President & CEO

MGC Filsheet Co., Ltd.

Japan Finechem Co., Inc.

Manufacture of polycarbonate film and sheet

Manufacture and sale of fine chemicals, for industrial use, and electronic products

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

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

Kuniaki Jinnai

MGC Filsheet’s Tokorozawa Plant is located near theabundant nature of Sayama Lake, and its Osaka
Plant is located in Toyonaka, which has developed asa residential city. These plants, each rooted in its
community, produce functional films and sheets thatare used in a wide range of fields, particularly
information devices.
Through a variety of initiatives including
improvement activities in which all employees
participate, we will continue production activities withenvironmental safety in mind.

Basic lifesaving course

Shigenobu Ono

Japan Finechem continuously works on safety
activities under the slogan that safety comes before
all else. Our goal is more than just preventing
accidents from happening. We are endeavoring toensure safe and stable operations by implementing
facility and work process improvements identified
through self-led activities, risk assessments andHiyari-KY (hazard prediction) proposals, in order toestablish a presence trusted by the markets andsociety for our strengths in safety practices.

Fire hose drill under theguidance of the local fire
department

President & CEO

President & CEO

MGC Electrotechno Co., Ltd.

Toyo Kagaku Co., Ltd.

Manufacture of copper-clad laminates

Resinous molding processing

Address: 9-41, Aza-Sugiyama, Oaza-Yone, Nishigo-mura, Nishishirakawa-gun, Fukushima 961-8031, Japan
Tel: +81-248-25-5000

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

Yuh Miyauchi
President & CEO

43

Eiwa Chemical Industry’s blowing agents contributeto the reduction of environmental impacts in ourcustomers’ products by providing insulation andlessening weight. Our blowing agent master batch
products contribute to the suppression of dust in
customers’ processes and the improvement ofworking environments.
We will work to further strengthen safety
management and will continue to stably supply
products, with safe operation as our foundation.

In partnership with MGC Electrotechno (Thailand), we
aim to win the trust of our customers and to become
the world’s leading copper-clad laminate manufacturer.
In addition to the enhancement of manufacturing
technology capabilities expected from the completionof our experimental research building, we are working
to boost our capabilities in quality control, quality
assurance, maintenance, and procurement, and tostrengthen functions appropriate to a mother plant.
Through environmental preservation and theelimination of accidents and occupational injuries, we
aim to become a company trusted by our community.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Firefighting drill

Masanori Shimuta
President & CEO

Toyo Kagaku has placed the elimination ofoccupational injuries (i.e., zero accidents and zero
occupational injuries) at the top of our basic policies.
We engage in safety activities including identificationand improvement of hazardous locations andmonitoring of traffic safety, under the idea that safety
takes priority over all else.
In terms of the environment, we manufacture
plastic molded products that take energy
conservation into consideration, adopting energysaving equipment and reducing wastes through the
improvement of material yields.

Drill for hazard prediction
during transport by hand truck.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

44

Responsible Care and MGC
12 Member Companies of the MGC Group Environment and Safety Council

Shin Sanso Kagaku Co.

Fudow Co., Ltd.

Manufacture of hydrogen peroxide

Manufacture and sale of molding resin

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

Address: NOF Shin-Yokohama Bldg. 5F, 15-16 Shin-Yokohama 2-chome, Kouhoku-ku, Yokohama-shi, Kanagawa 2220033, Japan Tel: +81-45-548-4210
URL: http://www.fudow.co.jp/en/

Yasushi Hiramatsu

Shin Sanso Kagaku is the only manufacturer ofenvironmentally friendly hydrogen peroxide in
Hokkaido. We began operation in 1987 inTomakomai, an industrial city with a port andsurrounded by abundant nature, including ShikotsuToya National Park and a Ramsar Convention site.
With safety assurance and environmental
preservation as our top priority, we engage in risk
assessment activities, continuous improvement ofenergy consumption intensity, and stable production
under zero accidents and zero occupational injuries.

Takahisa FuruyaContinuing over 13 years ofzero occupational injuries at
the Gamagori Plant

President & CEO

President & CEO

Japan Circuit Industrial Co., Ltd.

Japan U-PiCA Co., Ltd.

Manufacture and sale of printed circuit boards

Manufacture and sale of unsaturated polyester resin and coating resins

Address: 2-1236 Kamiike-cho, Toyoda-shi, Aichi 471-0804, Japan Tel: +81-565-88-3718
URL: http://www.jci-jp.com/eng/

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

Koichi Yamabe

Japan Circuit Industrial manufactures semiconductor
substrates, using a variety of equipment and chemicals intheir manufacture. Through everyday inspections anddisaster drills, we take measures to prevent and minimize
the impacts of occupational injuries, environmental
accidents, natural disasters, and other hazards.
We also work toward environmental improvement andtoward safety and security in our operations throughmultifaceted initiatives that include the reduction of energy
and resource consumption and environmental monitoring ofwastewater, noise, and odor.

Killifish Project(Raising killifish using
industrial wastewater)

Kuniaki Ageishi

Japan U-PiCA carries out business activities under thephilosophy of contributing to the realization of a more affluent
society and comfortable living as a materials manufacturer.
In terms of safety, we aim to eliminate human errors
through both physical and operational-related aspects,
including improving equipment, strengthening
communication, implementing 3S activities, andencouraging the method of pointing and calling out
procedures. In terms of the environment, we are working
to enhance our lineup of biomass-derived products andreduce our CO2 emissions rate through implementationof the project to double productivity.

AED course

President & CEO

President & CEO

Japan Pionics Co., Ltd.

Yonezawa Dia Electronics Co., Inc.

Manufacture and sale of gas purifiers and abatement system

Manufacture of printed circuit boards, auxiliary materials for processing

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

Address: 446-3 Hachimanbara 3-chome, Yonezawa-shi, Yamagata 992-1128, Japan Tel: +81-238-28-1345

Safety is the foundation of our business activities. Allof our employees share the goals of zero accidents
and zero occupational injuries, product quality
assurance, and strengthening of risk management,
and work to foster a culture of safety.
We undertake improvements through regularreviews to keep our environmental management
system functioning properly. We also actively
participate in regional activities.

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Participation in fire extinguisher
drill held jointly with apetroleum complex firefighting
team

At Fudow’s Gamagori Plant we analyze causes ofnear-miss incidents and enact countermeasures,
achieving over 700,000 hours of work without
occupational injuries. Aiming to continue this record,
we have added new items to our internal safety
inspection checklist and are working to prevent andeliminate hazards. For two years straight, employees
who joined the company in FY 2014 have won a fire
hydrant operation competition held by the city of
Fujinomiya.
From here on out, we will continue environmental
safety activities with the participation of all employees.

Everyday inspection throughpoint-and-call activities

Masaaki Iijima

Yuh Miyauchi

President & CEO

President & CEO

MITSUBISHI GAS CHEMICAL COMPANY, INC.

The top priorities for Yonezawa Dia Electronics are
the safety and health of our employees and thepreservation of the global environment. We areworking to raise the level of our environmental
preservation activities through risk assessment,planned maintenance of equipment, and theachievement of zero emissions, and at the same time
aim to heighten the occupational health and safety
awareness of employees and achieve zero
occupational injuries through KYT, safety patrols, and
5S activities.

Median strip greening activity

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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