MITSUBISHI GAS CHEMICAL COMPANY, INC.

CSR Report

Mitsubishi Building, 5-2 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8324, Japan

2014

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.

Interview with the President

Contents

Interview with the President

2

Profile of Mitsubishi Gas Chemical (MGC)
Company Overview

5

MGC Products in Our Daily Lives7

R&D System

11

Supply Chain Contributions

12

CSR Management
MGC’s Efforts in CSR

13

Corporate Governance

14

Compliance and Risk Management

15

Stakeholders and MGC

18

Responsible Care and MGC

About This Report
The purpose of the ‘CSR Report 2014’ 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 andhow they are used to benefit society, in order to appeal toa wider audience of stakeholders. 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

Environment and Safety Management

23

Organizations included

Results and Plans for RC Activities at MGC

25

Occupational Health and Safety, Process Safety,
and Disaster Prevention

27

All office in Japan. The activities of the entire MGC Groupand individual subsidiaries are also covered in certain
sections of the report.

Environmental Impact of Business Activities ofthe MGC Group

29

Preservation of Biodiversity

30

Initiatives for the Prevention of Global Warming

31

Chemical Emissions of the MGC Group34

Waste Reduction in the MGC Group35

Air and Water Conservation in the MGC Group36

Safety Management of Chemicals and Products

37

Environmental Accounting

39

RC Activities at Business Sites

40●

13 Member Companies of the MGC Group
Environment and Safety Council

44●

Reporting period
April 1, 2013 through March 31, 2014 (includes some
activities after April 2014).
However, Responsible Care (RC) activities are included
from January 1, 2013 – December 31, 2013 (includes
some RC activities in 2014).

Reference Guidelines●●

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

1

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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

Publication Information
Date of publication: December 2014
Date of next scheduled publication: December 2015

Committed to achieving sustainable growth together withsociety by continually producing valuable chemicals

Q1 Can you tell us about MGC’s businesses
and their unique features?

We leverage our creative and innovative
A1 technologies
to bring valuable chemicals
to various sectors.
The MGC Group, under its philosophy, “To contribute tosocietal growth and harmony by creating a wide range ofvalue through chemistry,” aims to achieve sustainablegrowth on a global stage. Together with our stakeholders,
we practice CSR as a leading chemicals group with amajor presence and a strong platform of proprietary
technology.
Since our founding in 1918, we have continuallycreated new technologies and new value. Today, we
comprise four business segments; namely, the Natural
Gas Chemicals Company, Aromatic Chemicals Company,
Specialty Chemicals Company and Information &Advanced Materials Company. Through these we supply
creative products only made possible by MGC to a broad
range of sectors, from basic chemicals to functional
materials and healthcare, among others.

The MGC Group must pursue the right businessportfolio structure in order to achieve sustainable growth,because its operations span a wide range of sectors andthe operating environment differs for each product line. For
this reason, the MGC Group has created a vision for 2021,
which coincides with the 50th anniversary of its founding,and is currently implementing a medium-term
management plan toward that end. Currently, we are in
the middle of the second phase of this plan called MGC
Will2014, which runs from FY 2012 to FY 2014.

Q2 Can you tell us about the progress of

medium-term management plan MGC
Will2014 and your medium- to long-termbusiness strategy for the future?

are steadily moving forward with ourA2 Wefour basic strategies, including
reinforcement of our core business.
There are four basic strategies set out in medium-term
management plan MGC Will2014; namely, strengthening
the core businesses, accelerating development of new
businesses, restructuring loss-making businesses, andimproving total enterprise quality in support of sustainablegrowth.
If core businesses are not properly in line, then our
measures will end up never being implemented. For thisreason, first we have been reviewing our current strategy
based on changes in our operating environment, with thegoal of strengthening the core businesses. At the sametime, we have been focusing on accelerating developmentof new businesses as an initiative directly related to our
future growth. As illustrated by the fact that more than
90% of our products are developed in-house, the MGC

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

President and Representative Director

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2

Interview with the President

Medium-Term Management Plan “MGC Will2014”

Aiming to be a leadingchemicals group witha major presence

The desired
MGC Groupin 2021

Growth Mergers &acquisitions

Corebusinesses

Note: 2021 will be MGC’s 50th anniversaryFirst step toward thedesired MGC Group
in 2021

FutureR&D

MGC Will2014
MGC Will 2011

(FY 2012–14)(FY 2009–11)
Financial crisis
3.11 disasterNew
businesses

Restructuring oflossmaking businesses

In recent years, as the ratio of overseas production
increases, sharing our Safety Philosophy, which states,“The top priority of our business activity is ensuring safety,”across the entire MGC Group is essential to achieving zero
occupational accidents and injuries. With this in mind, we
will communicate more effectively with our other businesssites while further enhancing safety awareness at MGC,
and also create safety standards tailored to the operations
and situation of each region.

To be fostered
Second step toward
the desired MGC GroupQ4 What are your thoughts about theenvironmental impacts of chemicalcompanies?

We will strive to reduce our impacts on the
A4 environment
and focus on making
Group’s greatest strength can be found in its creativetechnological prowess. We will leverage this strength while
actively pursuing technical alliances with outsidecompanies in our sector and different sectors as well as
R&D institutes, which will enable us to streamline andspeed up R&D. Given recent mega trends, we will focus
on markets that are more resilient in the face of economic
fluctuations, such as healthcare, foods, and infrastructure.
As an initiative for new businesses, in 2011 welaunched the Next Generation Business Project Group thatis pursuing organization-wide and cross-functional
research activities. We are making solid progress inmedical packing solutions, one of the project’s research
themes, as we have had a number of different customers
evaluate samples.
Starting from FY 2014, we focus on strengthening
engagement with markets as well as examining andrevising policies. At the same time, we will make decisions
about the future of projects based on reinforced
management achieved through the further use of the
PDCA cycle. Market development requires a product’s
value and uses are thoroughly proposed to customers,
while new product development requires us to engage
customers and identify their specific needs. This enables
us to develop better quality products in a speediermanner.
As for restructuring loss-making businesses, we havesuccessfully exited or reduced our presence in businesses
where we lack competitive advantages and also greatly
cut back on fixed costs. In this manner, we will continue
focusing on our core competencies. In doing so, it will be
important to examine whether businesses are in tune with
global trends, instead of focusing exclusively on whether
they can churn out short-term profits.

3

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Finally, we will work on further improving theperformance of our manufacturing frontlines anddeveloping production processes with less of an impact
on the environment, as part of improving total enterprisequality in support of sustainable growth. At the same time,
focus will be given to developing global human resources
and all other employees of the MGC Group. Additionally,
we will carry out management streamlining across the
MGC Group through such means as shortening the cash
conversion cycle and realizing other improvements.

Q3 What type of safety initiatives is MGC
implementing?

A3 We are moving forward with Group-widesafety initiatives based on our shared
Safety Philosophy.

The elimination of occupational accidents and injuries
represents our top priority from the standpoint ofmaintaining a safe working environment for employees.
These efforts will also help us fulfil our mission to society ofproviding stable supplies of our products. Following an
accident at our Niigata Plant in 2007, MGC has carried out
the “Accident Zero (AZ)” Project at all of its facilities in aconcerted effort for safety. Our six years of activities, bothtangible and intangible, helped MGC to completely
eliminate occupational injuries resulting in lost work time
for the very first time on a standalone basis in 2013. To
maintain and continue this success while also achieving
zero occupational accidents and injuries at our partnercompanies, we launched a new safety project in FY 2014
called “Bridge” (see page 28).

contributions to the environment throughour products.
The MGC Group recognizes that the mission of achemicals company is to help protect the earth’s
environment, and we are carrying out activities to reduce
the environmental impacts resulting from our businessactivities and to reduce environmental risks from ourchemical products. As for the environmental impacts
caused by our business activities, we are using key
indicators to mitigate these impacts, such as the energy
consumption intensity and raw materials per unit product.
The environmental risks of chemicals are controlledaccording to rigorous standards that prevent leakages inevery aspect of the value chain.
Together with these activities, we are focusing on
making contributions to the environment through our
products. In addition to products that directly benefit theenvironment, such as clean fuels and chemical agents that
purify the air or water, we are marketing the merits ofproducts that contribute indirectly as well. For example,
our films that improve the luminance of LCD panels help toreduce LED usage, which in turn reduces energy
consumption. Additionally, MX nylon resin reduces theweight of beverage bottles which reduces fuelconsumption during their transport. Through dialogue withthe markets, we are working to spread the use of theseproducts further to contribute to the sustainable growth of
the MGC Group while also helping to reduce the impacts
society has on the environment.

Q5 In closing, what are the management

challenges you are focusing on currently
and what measures are you taking toaddress them?

We will contribute to the resolution of
A5 societal
issues while reinforcing our Groupmanagement and human resource
development.
As the leader of the MGC Group, I will emphasize thereinforcement of Group management and human resource
development.
The MGC Group employs a workforce of more than
10,000 in Japan and abroad, while it has many different
organizational systems. Therefore, it is my mission to
manage the Group while constantly being aware whether
or not our employees’ initiatives are helping to streamline
the Group’s operations and practices.
In addition, the MGC Group has traditionally fostered a
corporate culture that supports imagination and innovation
led by the frontlines, where people of different
backgrounds can thrive, regardless of age or job title. We
will continue to pass down this DNA and develop thehuman resources that will lead our company into the
future. For example, expertise that cannot be acquired
through desk learning, such as plant operation
technologies, must be passed down on the front lines.
Therefore, we will pursue the most optimal personnel
allocations and human resource exchanges based on theage composition of our workforce at each of our sites.
Our chemical products not only contribute to theenvironment, but also have the potential to solve a variety
of issues faced by society, such as aging populations andresource depletion, including water and food shortages
caused by population increases. Helping to build a more
affluent and sustainable society through the power ofchemistry is an important social responsibility of achemical company and our greatest contribution tosociety.
We will continue to pursue the MGC Group’s
philosophy, “To contribute to societal growth and harmony
by creating a wide range of value through chemistry,” whiletackling the various management tasks I have discussed
here. We look forward to your continued support andguidance as we move forward.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

4

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

Corporate Information (as of March 31, 2014)

Established

January 15, 1918

Incorporated

April 21, 1951

Capital100,000

467,979

452,217

100,000

15,00080,00010,00060,0005,000

40,0000

20,000-5,0000-10,000

384,528

4,090

23,36336,394

9,083
26,116

11,421

11,41630,73527,651

7,365

2009

Saga Plant

2010

2011

2012

2013

R&D expenditures [consolidated]
Kashima Plant
Head Office
Tokyo Techno Park

15,00016,19817,44915,332

Hiratsuka ResearchLaboratory
Yamakita Plant

-2.8
2010

2011

2012

2013

(FY)

Number of employees (non-consolidated)

4,979

4,920

5,216

3,000
2,000

5,323

5,445

2,371

2,331

2,282

2,399

2,434

1,000

0

0

2009

2010

2011

2012

2013

2009

(FY)

Energy consumption intensity (non-consolidated)

2010

2011

2012

2013

(FY)

GHG emissions intensity (non-consolidated)*Energy consumption intensity index (FY 1990 = 1)

MITSUBISHI GAS CHEMICAL SHANGHAICOMMERCE LTD.
MITSUBISHI GAS CHEMICALENGINEERING-PLASTICS (SHANGHAI)
CO., LTD.
SUZHOU MGC SUHUA PEROXIDE CO., LTD.
TE AN LING TIAN (NANJING) FINE
CHEMICAL CO., LTD.
PTM ENGINEERING PLASTICS (NANTONG)
CO., LTD.

MGC PURE CHEMICALS AMERICA, INC.

1.00

0.95

0.95

0.92

1.0

0.91

0.8

0.8

0.6

0.6

0.4

0.4

0.2

0.2

2009

2010

MGC (non-consolidated)*1
Chemical industry*2
1.0

2011

2012

2013

(FY)

0.6

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

0.72

0.85

0.54

2009

2010

2011

2012

2013

2.15

*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

0.13

0.12
0.04

0.05

2010

(FY)

0.12

0.10

0
2011

2012

2013

0.01

0.00
(CY)

2009

2010

0.04
0.01
2011

0.03
0
2012

2013

(CY)

Final disposal volume of waste (non-consolidated)
(t)
150

134.2

130.4

120

121.7

97.2

90

BRUNEI METHANOLCOMPANY SDN.BHD

0.76

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

0.15

0.28

2009

SAUDI METHANOLCOMPANY

0.78

2.10

0.80

0.0

MGC ADVANCEDPOLYMERS, INC.

0.79

2.14

0.82

0.2

MITSUBISHI GASCHEMICAL AMERICA, INC.

PT PEROKSIDA INDONESIA
PRATAMA

0.72

0.57

0.4

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

0.81

Lost time injury severity rate

*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
0.8

0.84

0.0

0.0

Lost time injury frequency rate

MITSUBISHI GAS CHEMICAL COMPANY, INC.

-7,793

4,000

5,000

Yokkaichi Plant

International Network5

2.2

Number of employees (consolidated)

5,000

16,122

10,000

Osaka branch
Naniwa Plant

5.0

4.4

5,827

(People)6,000

16,38014,971

12,327

Number of employees (consolidated/non-consolidated)(Millions of yen)
20,000

1.0

MITSUBISHI GAS CHEMICAL SINGAP
ORE PTE. LTD.
MGC PURE CHEMICALS SINGAPORE
PTE. LTD.
POLYXYLENOL SINGAPORE PTE. LTD.

18,950
6.9

2009

(FY)

Return on equity (ROE)(%)*Includes the R&D divisions of Group companies

Main business sites in Japan
Branches
Osaka branchOverseas offices Shanghai Office, Taiwan Office
Research institutes
Tokyo Techno Park (Tokyo Research Laboratory,
Research and Development Center, MGC Chemical
Analysis Center), Niigata Research Laboratory, andHiratsuka Research Laboratory
PlantsNiigata Plant, Mizushima Plant, Kashima Plant,
Yokkaichi Plant, Yamakita Plant, Naniwa Plant, andSaga Plant

MITSUBISHI GAS CHEMICALEUROPE GMBH

451,033

040

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

Ordinary income(Millions of yen)
120,000
534,670

200,000

Number of employees
5,445 (consolidated), 2,434 (non-consolidated)
Number of consolidated subsidiaries

Net income(Millions of yen)
20,000Operating income

300,000

Mizushima
Plant¥41.97 billion (as of the end of March, 2014)

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

Net sales(Millions of yen)
600,000

400,000

Niigata Research Laboratory
Niigata Plant

Head office address
Mitsubishi Building, 5-2 Marunouchi 2-chome,
Chiyoda-ku, Tokyo 100-8324, JapanNet sales / operating income / ordinary income (consolidated)

500,000

Domestic Network

Company name
MITSUBISHI GAS CHEMICAL COMPANY, INC.

Financial and Non-Financial Highlights

84.2

60

METANOL DE ORIENTE,
METOR, S.A.

30
0

2009

2010

2011

2012

2013

(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

6

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.

Para-xylene

In thehome

Used as a raw
material forpolyester fibers.

Polycarbonate film
(Iupilon™ Film)

Toluic acid

Yard

Used as a repellent inmosquito and other bug
sprays.

Used in diffusion films for LCD
displays to ensure light evenly
reaches across the entire screen.

Ortho-xylene andMeta-xylene
Used in plasticizing agents forsoftening PVC water pipes
because of their resistance tocorrosion.

Hydrogen peroxide

Living room

Used for bleaching in apulp and paper
production process

KitchenAromatic
aldehydes
Used in fragrances
included in soaps andshampoos. Able torecreate a wide rangeof scents throughingredient blending.

Bedroom

Hydrogen peroxide
Found in oxygen
bleaches that can beused for whites andcolors. Once broken
down, it becomes
harmless oxygen andwater, resulting in zeroenvironmental impact.

Dining roomPara-xylene and Meta-xylene
Used in PET bottles.

MX nylon resin (MXNYLON™)

Bathroom

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

Hydrogen peroxide(Diapower™HP)

Neopentylglycol
Used in the outer film for PET bottles.

AGELESS™
Absorbs oxygen in sealedcontainers to maintain a longshelf life, taste and freshness.
Used to maintain the quality of
food.

7

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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

Used to clean anddisinfect food andbeverage containers
contributing to longer
shelf lives at room
temperature.

AGELESS OMAC™
A film that absorbs
oxygen to preventoxidation of contents.
Widely used in retort
pouch foods andprepared foods heatedwith boiling water.

Dimethyl ether(DME)

Pyrroloquinoline
quinone (PQQ)

Used as a spray
propellant in placeof CFCs, which
damage the ozone
layer.

A strong antioxidant that
protects cells fromoxydation damage. Used incompounds for cosmetics
sold in Japan.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

8

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

At theofficePolycarbonate(Iupilon™)

Special polycarbonate(Iupizeta™ EP)

Used in touch panels.

Used in camera lenses. Features
excellent optical properties, such as
high transparency 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.

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

Methanol
Used in raw materials forpolyester fibers in carpets
and other products.

Anaerobic culture
system (AnaeroPack™)
Used in microorganism testingat clinical labs.

OfficeMeta-xylenediamine

OfficeUsed in wind turbine
blades.

Hospitals

Towns

BT printed wiring board (PWB)
material
MGC was the first in Japan to develop thisplastic PWB material that helps to make mobile
devices more compact and high performance.

9

Miscellaneous
engineering plastics

Meta-xylenediamine(MXDA)

Used in the outer casings,
internal gears andphotoreceptor drums ofprinters, copy machines, andother office automationequipment.

Used in paints and othercoatings.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Etching liquid
Used during the manufacture ofsemiconductors.

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

Drying andde-oxydation agent(PharmaKeep™)
Maintains low oxygen
concentration levels andlow humidity forpharmaceuticals, which
ensures longer lasting
quality.

Peracetic acid
(Diapower™)
Used in thedisinfectant andsterilization of
medical devices
and equipment.

RP System™
Widely used topreserve cultural
assets.

Methyl methacrylate(MMA)
Used in aquarium tanks
because of its hightransparency.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

10

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

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 theirprocessed products, product groups using hydrogen
peroxide, an oxygen absorber, and many more productsthat 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. We areboosting activity under the Next Generation Business
Project Group, which is under the direct supervision of the
President. This project, a research and development
organization, is aimed at creating new core businesses at
MGC.

● Development of energy saving

Environment-related expenses in R&D(FY 2013)

For environmentally friendly products:
For environmentally friendly
production methods:

technologies

2 billion yen

1 billion yen

production techniques

Manufacturing● Procurement of safe raw materials● Appropriate management of(over FY 1990 levels)

Tokyo Techno
Park
Tokyo ResearchLaboratory

Plant
Research
Divisions

The “Next
Generation Business
Project Group”

Hiratsuka
Research
Laboratory

Medical packing solutions

Superacid
Solid catalyst
High-pressuretechnique

New structural materials, etc.

Technology platform
Synthesis
technology

Polymertechnology

Air oxidation
Liquid phaseoxidation
Hydrogenation

Condensation polymerization
Bulk polymerization
Oxidative polymerization
Films/sheets
Resin processing

Compounding
technology
Oxygen absorber
Resin varnish
Electronics chemicals

Biotechnology

Ratio of transportvolume*3

Continuous culturing
Breeding● Emergency response training● Energy efficiency● Environmental preservation● Global warming prevention

Marketing and Transport

Next-generation battery materials
Catalyst
technology

reduction (overFY 2010 levels)*1 GHG emissions intensity (CO2 equivalent)*2 PRTR substanceschemical substances● Safe production and accident

prevention*2

Niigata
Research
Laboratory

materials● Assessments of product safety

CO2 emissions reduction*1:

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

friendly products● Product design using safe raw● Process design, development of24%
Chemical substance management
44%
and air pollutant emissions :R&D goals and targets● Development of environmentally(FY 2013)● Modal shift

By rail:4%● Reducing logistics costs● Ensuring safe distribution

By ship:65%

By truck:30%● 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
divisions, manufacturing, and marketing together to
Research and development sites

undertake research and development in line withcompanies’ business strategies. Corporate R&D aims tocreate new businesses from a mid- to long-term
perspective, with the Next Generation Business Project as
its main activity. The MGC Analysis Center performs
contract analysis and safety testing for the entire
company.

Tokyo Techno Park
Hiratsuka
Niigata
Research and MGC ChemicalTokyo
Research Research
Analysis
Research Development
Laboratory Laboratory
CenterCenterLaboratory

Natural Gas Chemicals Company

NiigataPlant

Mizushima Yokkaichi
Plant
Plant

Yamakita
Plant

Customer Companies
Customer companies*4 approx.

13,000Specialty Chemicals Company
Information & Advanced Materials
Company
Corporate Division (Next
Corporate R&D Generation Business ProjectGroup, etc.)

11

MITSUBISHI GAS CHEMICAL COMPANY, INC.

● Providing safety information(issuing SDS)

Providing products and technologies, through our broad-based business in basic
chemical products and specialized products, not only in the chemical industry, but also
in a diversity of other industries, including the electrical machinery, electronic device,
vehicle, fiber, paper pulp, food packaging, and pharmaceutical industries.

● Technological services and*4: The number of manufacturers, domestically, who use and consume MGC products. Trading
companies not included.

methods (issuing SDS)

complaint handling● Response to the PL Law● Guidance for safe disposal

Kashima
Plant

Consumers● Risk assessment within the supply chain

Aromatic Chemicals Company

Company R&D(domestically)

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.

12

CSR Management

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 inworking for MGC. In addition, we have incorporated CSR
initiatives as part of our medium-term management plancalled MGC Will2014, which we are currently implementing.

Management Philosophy

Management that creates
an inspiring work environmentand builds a dynamic group withrespect for motivations
and abilities
Creative research andProduction activities that strive
development that deeply
for technological improvement,
understands needs and refines theenvironmental conservation,
seeds that will grow successsafety, and better products
An open corporate culture forshared goals and individual growth

MGC Philosophy

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

Philosophy
for Being

Principles of Conduct As a
Professional GroupManagement
Philosophy

Principles
of Conduct

1. Courage unafraid of change
2. Aspiration toward lofty goals
3. Perseverance towardachieving goals
4. Communication to broaden
rapport
Safety Philosophy
The top priority of our business activity isensuring safety.

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 to embody
the spirit of these principles, and while ensuring that they
have a full understanding of the necessary information insideand outside the Company, they will take the initiative topromote a high level of corporate ethics, and strive to develop
and operate an effective framework for this purpose throughthe internal control system. Furthermore, if an incident takes
place in contravention of these guidelines, they will takecommand and fulfill their obligations for internal and external
disclosure, strive to identify the cause of the incident andprevent its recurrence, and deal with the matter strictly andfairly in respect to all parties, including management itself.

Any important matters affecting MGC are to bereviewed and decided with a broader perspective at theManagement Council where management policy may be
discussed, and at the Operations Council where definitive
action plans may be discussed. In addition, MGC draws
upon the expertise of legal counsel and other experts
when required in the decision-making process and thebusiness execution of the company.
There are four Audit & Supervisory Board members,
two of whom are external. They attend important meetings
as well as board meetings, conduct audits ofdepartments, inspect subsidiaries, and strive tounderstand the decision-making process and status ofbusiness execution. In addition to ensuring a rational
decision-making process and compliance with the law andcorporate ethics, the Audit & Supervisory Board members
conduct inspections of our business operations. They
regularly exchange opinions with directors and receive
status reports on business execution from directors andemployees on a regular basis, or immediately when
involving material matters. Members request explanations
as required and state their views. They also inspect
important documents concerning business execution, andrequire information from directors and employees.
Moreover, in order to 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 a number ofmeasures are being pursued to improve transparency, ensure fairness, and accelerate decision-making.

(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.
(6) MGC will provide comfortable and productive working
conditions for employees, and will ensure a safe andrewarding working environment.

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 forsupervising business execution by MGC directors. Thishas strengthened governance and enhanced theoperational framework by clarifying functions andresponsibilities. 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.

Overview of Corporate Governance
Structure
For the sake of management supervision and counsel
from an external perspective, and to raise ourmanagement transparency and fairness, MGC appoints
one external director. Our current management structure
consists of 11 directors, including one external director,and 22 executive officers (including people who
concurrently serve as directors).
Corporate governance framework

Board of Directors

For entire guidelines, please refer to our website; http://www.mgc.co.jp/eng/about/compliance/“The MGC Group aims to develop and grow sustainably on the global stage as a leadingchemicals group with major presence and a strong platform of proprietary technology
while taking CSR in all its activities.”

Auditing

Election/Dismissal
Crisis Management

MGC Group Vision

General Meeting of Shareholders

Election/Dismissal

Election/Dismissal

Ad hoc organization

Audit & Supervisory Board
Audit & Supervisory Board
members

Auditing

Independent Auditors

Auditing/Supervision

Business Execution

Inspection/Reporting/
Auditing(Internal controls related)

Main committees related
to internal controls

ChairmanPresidentInternal 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

13

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

14

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
Compliance Regulations
MGC Corporate Behavior Guidelines

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

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.

15

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MGC compliance structure
Board of Directors
Report (as required)

Compliance Education
MGC sets aside October each year as “Ethics Month” toconduct compliance training for employees. The president
also sends out a circular to all business sites to raiseawareness about compliance issues.
In FY 2013, 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 oure-learning system.
With illegal payoffs inemerging countries now
widely recognized as a
global business risk, in FY
2013 we gathered thepresidents of our Group
Screenshot fromcompanies affiliated withthe e-learning systemreviewing and implementing measures to reduce latentrisks and making efforts to revise our BCP. We will
examine measures against risks given the highest priority
after all company-wide risks were identified and assessed
and when necessary we will create a business continuity
plan (BCP). BCPs created by each department are
centrally managed by the secretariat of the Risk
Management Committee to ensure other departments
have access for use as reference.

President

Audit & Supervisory
Board

Risk Management Framework

ReportReportCompliance Committee
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)
ReportExternal contact
desks

Toward a more concrete Standard of Conduct
MGC Code of Conduct

overseas businesses to reaffirm that such payoffs arestrictly forbidden and we trained expatriate staff using theapplicable training materials.
MGC is also working to enhance the quality of its
compliance training for staff that are dispatched overseas.

Contact

Compliance at the MGC Group involves not only abiding
by laws and company rules, but also widely upholding fair,transparent and free business activities based on its
responsibilities to society as a group of companies. We
have summarized this philosophy in the “MGC Corporate
Behavior Guidelines” and the “MGC Code of Conduct”
and in FY 2013, we made revisions to our code of
conduct based on changes that have taken place insociety.
To ensure thorough compliance across the entire MGC
Group, we distribute the “MGC
Compliance Handbook” to all of ouremployees in Japan. In FY 2013,
this handbook was updated basedon the revisions made to our codeof conduct and other contents.. For
overseas Group companies, wecreated Chinese and Thai language
versions of the code of conduct to
MGC Compliancecomplement our existing English
Handbook
edition.

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

Compliance attorneys(Contracted attorneys’ office)Inspection
requests

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

Consultation andnotification

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 that a
serious risk is identified, we set up a special group to copewith it according to internal rules.
Risk management promotion system
President

Consultation andnotification

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

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

Secretariat(Division in charge ofGeneral Affairs)

Risk Management in the 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

Department
supervisingrisk
management

Department
assistingwith risk
management

Department
supervisingrisk
management

Department
assistingwith risk
management

For each particular risk, theChairperson 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.

16

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 to various
stakeholders, the company will earn society’s trust and sympathy.

Risk Management Committee’s Annual
Plan for FY 2013
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 acompany-wide basis. Our workplaces are cooperating on
formulating countermeasures and conducting BCPs.
In FY 2013, we actively pursued major annual policy
points that included those listed below.
1. To appropriately consider, in line with periodic businesschallenges, the risks incumbent upon MGC to treat as
management targets, and for those risks that we must
regard as significant and of priority status, to enact
measures that will address them quickly and effectively.
2. To begin work on comprehensive earthquake
resistance measures at our business sites.

working employees and visiting guests face difficulties
returning to their homes after a disaster. We have stocked
food, drinking water, and other materials to allow persons
in the company to remain in offices for at least three days.
In FY 2013, MGC carried out earthquake resistanceassessments covering all of its business sites that containbuildings which are relatively old and have a greater
potential of causing injuries should a major earthquake
occur. Based on these assessments, we finalized
responses ranging from seismic retrofitting to building
closures. Additionally, we selected a model plant to carryout a review of the methods used to check the seismic
performance of a whole business site, including
manufacturing equipment. At the same time, wepurchased satellite mobile phones for our business sites tobe used as a mode of communication during an
emergency.

3．
To continually prevent information leakages and carryout related measures.
4．
To continually implement planned improvements basedon the lessons learned from the Great East Japan
Earthquake.
5. To work toward further enhancement of our risk
management practices in MGC and at groupcompanies.

Major Initiatives against Significant Risks
Measures against Major Natural Disasters
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 forfirst-responder training at each workplace, as well asgathering stocks of reserve supplies. To cite examples ofother initiatives, we have planned for scenarios in which

17

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Together with Customers
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.
When problems related to the Product Liability Law
arise, the designated staff person in charge of complaints
at each Company works with the business division inquestion, the production divisions, research divisions, or
logistics divisions, and investigates the source of the
problem. Related divisions report to the Product Liability
Committee so that the committee can implementcompany-wide preventive measures.
In addition to these company-wide practices, we arealso striving to raise customer satisfaction in eachparticular business division.

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 a recipient for four
consecutive years since 2010.* MGC wasrecognized for the quality, cost, supply system,
technical prowess, customer service, labor andethics systems and environmental sustainability
costs with regards to its chemicals used in the
manufacture of semiconductors.
* We received the PQSaward in 2010, 2011 and2013 and the SupplierContinuous Quality
Improvement (SCQI)
award in 2012.

Developing New AGELESS™Products
based on Customer Feedback
Wireless communication
device for emergency use /Satellite mobile phone

Disaster reserve
supplies

Earthquake resistanceassessment(Yokkaichi Plant)

Measures Against Information Leakages
Regarding the prevention of information leaks—one of therisk issues we have targeted for priority treatment—wewent over whether there was any vital information in eachdivision, and investigated management practices. We arealso pursuing the review of management methods fortechnical information and the centralized management of
personal computers used within the company.
In addition to issuing warnings and strengthening our
information management practices, we are taking
measures to minimize information leakage risks based on
scenarios where secrets were actually leaked and we are
addressing the challenge of striking the right balance
between the prevention of information leakages andproperly sharing this information within the company.

MGC first developed AGELESS™,
a deoxidation agent that prevents
food spoilage using iron to absorb
oxygen, more than 35 years ago.
AGELESS™ is available invarious different types depending AGELESS™ FJ-10R
on the application and many newly developed
products in the line are based on customer
feedback, resulting in a true customer-centeredevolution. For example, AGELESS OMAC™, a
deoxidation film, was created based on customers
who wanted an alternative to canned foods. In
addition, the world’s smallest* deoxidation agent
AGELESS™ FJ-10R was developed based on acustomer who wanted to affix AGELESS™ to theside of individual confectionery packages. Goingforward, we stand committed to building positive
relationships with customers and developing
products that fulfill their needs

Together with the Community
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.

*As of June 2014.

Risk Management of Group Companies
As a risk management measure including Group
companies, we are carrying out requests for evermore
enhanced risk management, while also exchanging
information after surveying and reporting on eachcompany’s initiatives and practices.

AGELESS OMAC™

Community dialogue on
responsible care (Niigata Plant)

Fire fighting training exercise(Tokyo Techno Park)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

18

Stakeholders and MGC

Together with Stakeholders

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.

Cleanup along the Takahashi
River (Mizushima Plant)

Cleanup along the Hasaki
coastline (Kashima Plant)■ Involvement in community activities
We participate in community festivals, blood donation
drives, and traffic safety campaigns to encourageinteraction with the local community.

Participated in the Matsuhama
Festival (Niigata ResearchLaboratory and Niigata Plant)

Directing traffic for school
children (Kashima Plant)

Number ofyears worked

18 yearsand 1 month

16 yearsand 3 months

17 yearsand 11 months

Retention of new employees (three years after joining)
Number of new employees
Number of employees at third year after joining, as of April(People)
100
80

100%

69 69

96.4%
84 81

98.9%
88 87

Retention

100%
94

94

95.8%
96
92

(%)
100
80

60

60

40

40

20

20
0

2009

2010

2011

2012

GeneralManager rank●●

● Features of rank-specific education and training●

SectionChief rank●

Features●

Organizational
management training

Manager training
Entry-level manager
training

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Reducing CO2 emissions using a modal shift

Average age

Intermediate,experienced demographic Management demographic

Career enhancement
training
Intermediate,experienced employee
training

Chemistry experiment kits

Young demographic

New employee follow-up
training

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 partnercompanies fromthe standpoint ofcompliance andto build morepositive, lasting
relationships.

Total
40 years old
and 9 months(FY)

MGC’s Training Programs●

Working with Partner Companies

Female39 years old
and 0 months

2008

New employee training

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.

Male
40 years oldand 11 months

0●Compliance with the Act against Delay inPayment of Subcontract Proceeds, Etc. to
Subcontractors

Employee tenure (as of March 2014)■ Personnel system
MGC’s personnel system is a multi-stream vocational
qualification grading system based on management by
objectives. Up to the standard age of 28, employees
belong to the same basic career path regardless of genderor educational background, and then move on to selectcourses that will help them in their career. We support all
employees equally, providing them with a range of career
opportunities in line with individual aspirations that meettheir role, achievements and capabilities.

● Educational development for global workers● Technology exchange sessions (Production, Research,

Engineering Divisions)● Patent training sessions (Research Promotion Division)● Workplace-specific and health and safety-related education● Health and safety, environmental management, and quality
control-related education● Other specialized education and in-house seminars● Language qualifications and language training (including

On the job
training

19

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.

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.

Self-development

Student tour (Hiratsuka
Research Laboratory)

Together with Our Business Partners

MGC’s human resource development

Job-type/sector-specifictraining

We are working to promote an interest in chemistry
through partnerships with educational institutions in thecommunities surrounding our business sites.
For example, we host students for tours and learning
programs and dispatch employees to universities as guest
instructors for a period of six months as part ofcommitment to the next 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
to schools in areas affected by the earthquake. We
provided approx. 12,000 kits to 85 schools in FY 2013.

MGC reviewed its disaster preparedness supplies in
May 2013 and decided to donate canned bread andalpha rice (a total of 3,960 meals) that had yet to
expire to NPO Second Harvest Japan.
Second Harvest Japan accepts donations offood products that of good quality, but no longer
have commercial value from companies, farmers
and individuals. In turn, it provides these products tovarious welfare facilities and organizations. The
donations from MGC are also being put to positive
use by the NPO.

■ Development of human resource capabilities
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.

Together with Employees

Rank-specific education and training

Initiatives for the Next Generation

Donated Emergency Rations for Disasters
to an NPO

English, other languages, and theme-based
language programs)● Management and business skills● Financial accounting, bookkeeping, and taxation● Basic chemical knowledge and basic safety technology
knowledge● Other distance learning

Training based on the employee’s specific rank within the company,
from new employees to management-level employees,
encompasses education tailored to the knowledge, capabilities,
manner of working, approach to working, business skills, andmanagement skills necessary for each rank. It provides a valuable
opportunity for employees to give thought to the future course of
their own career. In recent years, this has also included life/career
training regarding individual work and lifestyle issues for employees
who have reached the age of 50.

● Features of job-type / sector-specific training

Training based on the employee’s specific job or department within
the company is an opportunity for workers to acquire the necessary,
specialized knowledge and skills for their division, which cannot be
addressed well in larger general training sessions.

● Features of self-development education

The company offers language learning training courses customized
to each employee’s level, in addition to a selection of over 270 typesof distance learning courses (from fields as diverse as management,
business skills, financial accounting, chemistry, foreign languages,
career planning, and health) ranging from subjects directly related to
employees’ work tasks to subjects of personal interest.

● OJT through actual work tasks

MITSUBISHI GAS CHEMICAL COMPANY, INC.

20

Stakeholders and MGC

Together with Stakeholders

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 of foreign
nationality, accompanying the globalization of ourbusiness.
■ Re-employment of retirees
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 healthyand desire to do so contributes to creating a vibrantworkplace.
* 2008 to 2013: The re-employment rate has been 100% for six
consecutive years.

■ Employment of people with disabilities
MGC’s employment rate for people with disabilities was
2.22% as of the end of FY 2013, 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.

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.

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

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

Employment rate for people with disabilities (at end of fiscal years)

Women employees *Parenthesis indicates the number of managers
Employees who are foreign nationals *Parenthesis indicates the number of managers(People)

(%)

250

2.5

200

177(3)

195(3)

206(4)

210(5)

Employment rate

231(7)

2.0

150

1.5

100

1.0

6(0)
2009

5(1)
2010

8(1)

4(1)
2011

2012

7(1)
2013

2.16

2.13

Workers desiring re-employment(People)

100%

100%

2009

2010

2011

2013

(FY)

Maternity leave
Re-employed workers

100%

100%

Re-employment rate
(%)

100%

100

Number of employees on maternity leave before & after birth
Number of employees on childcare leave*(People)8

7 7(0)

68 68
60

6 6(1)

6

56 56
44 44

40

2012

5(1)
42 42

39 39

50

4

4

4(0)

4(1)

4

3
2

20

0

0

2009

2010

2011

2012

*Fiscal year = end of September + end of March

21

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2013

(FY)

0

2009

2010

2011

2012

2013

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

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.

Support for social contribution activities

2.22

0.0

(FY)

Re-employment of retirees

80

2.16

0.5

50
0

1.92

(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.

(FY)

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.

issues such as wages and bonuses are determinedthrough yearly collective bargaining and othernegotiations.

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

Basic policy on profit distribution
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 2013 our full-year dividend was 12 yen per share.

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

Briefings for institutional investors andsecurities analysts
For institutional investors and securities analysts, we holdearnings briefings, as well as business briefings. In addition,
we posted reference material
from our earnings briefings,
as well as business reports,
on our website in an effort toshare information about MGC
in a timely fashion.

Union / labor-management relations
Over the years MGC and the Mitsubishi Gas Chemical
Workers Union have built up mutual trust and respect
between each other based on positive labor-management
relations, which allows them to work together to solve
various issues. We regularly hold management council
meetings 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

Composition of shareholders (as of March 31, 2014)
Individuals
and other
17.0%
Foreigncompanies
27.0%
Other domestic
companies
10.4%

Financial
institutions
44.5%
Securities
companies
1.1%
MITSUBISHI GAS CHEMICAL COMPANY, INC.

22

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.

The MGC Group Policies on Environment and Safety
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.
Environmental and Safety Targets
Fundamental Policies

Zero Accidents, Zero Occupational Injuries, and Environmental Preservation■ Ensuring health and safety in our operations■ Ensuring security management of facilities and increasing self-protection technologies and skills■ Reducing the environmental impact of business activities■ Ensuring safety in use, handling, and disposal of products■ Development of environmentally-friendly and safety-conscious products and technologies■ Ensuring environmental conservation and safety in the logistics of obtaining raw materials, andstoring and delivering our products■ Building society’s confidence in us

Message from the Director in Charge of Environment and Safety
MGC is promoting a company-wide project aimed at eradicating occupational injuries and accidents, andfostering a culture of safety. This fiscal year marked the end of the second stage of the project, which is
divided into three-year stages. We are pushing forward with the initiatives of our working groups at eachplant. Through initiatives aimed at improved communication, upgraded equipment, and enhanced on-sitecompetency, 2013 marked the first time that MGC was able to completely eliminate all lost time injuries.
The results of this project were reported at the first company-wide safety presentation and subsequently
rolled out thereafter. These activities will ensure safer and more secure corporate activities because theylink up with the Bridge activities for the next project.
In terms of environmental issues, we are continuing our efforts to set and meet the numerical targets ineach area of: reduction of emissions of chemical, reduction of industrial wastes, and energy saving
measures. As a result, we have been able to broadly cut the amount of PRTR substances that we release.
In recent years, major accidents continued to occur in the chemical industry. We are cng out risk
Kenji Inamasa
assessment at each business site to determine the likelihood of similar accidents occurring at MGC. We areManaging Executive Officer
working to identify areas of danger and hazardous processes, and pushing forward with corresponding
prevention measures. We are also fostering a culture of safety by incorporating the Guidelines for Prevention of Chemical Plant's
Accidents published by the Japan Chemical Industry Association and the safety assessment system of the Japan Safety Competency
Center, which was established in April 2013 by the Japan Society for Safety Engineering.
Since the Great East Japan Earthquake, new damage scenarios for earthquakes have been created. Based on these, we arereviewing our earthquake resistance and our disaster manuals, while also continuing with earthquake drills, so that we can safely halt ourplants in the event of an earthquake.
The MGC initiatives described here have brought real results, though they are still not entirely sufficient. Going forward, MGC will aim
to be a “superior and distinctive chemical company,” as we continue our initiatives toward safe and secure production.

We shall comply fully with applicable domestic laws and foreign rules and shall also cooperate withrelated international organizations, international and national administrative organs, andnongovernmental organizations as required.

Responsible Care Promotion System

RC Medium-Term Plan 2014
* The descriptions of distribution safety, dialogue with society, and RC in general have been omitted.

RC Medium-Term Plan (2011–2014)

RC CodeOccupational Healthand Safety
Process Safety andDisaster Prevention

Working 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 prevention systems with neighboring affiliates.

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.

Environmental
Preservation• 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.
■ Achieve zero emissions of waste.
(Zero emissions: Implement the 3Rs to reduce final disposal of generated wastes to 0.3% or less by weight.)■ Workplaces that achieve zero emissions will further reduce their final disposal volume.

■ Provide product safety information.

■ Audit period

August – October, 2013
President■ Auditees

Director in charge of environment and safety

Environment and safety meeting■ Reduce the energy consumption intensity to below 85% of the FY 1990 level.

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 2013, we audited measures to prevent accidents at
plants, which included identifying and reducing risks
associated with abnormal reactions, explosions/fires, andemergency shutdowns, as well as the implementation of
statutory inspections and voluntary inspections and thesafety of workers when handling heavy objects.

MGC Group Environment
and Safety Council

Segments Administrative divisions
Segments■ Audit findings

Business divisions

Full conformity (26 cases) Non-conformity (no cases)

GHG task force

Planning and development divisions

Responsible Care audit

PlantsEnvironment andsafety departments

Audit of certified
high pressure gas plants

Researchlaboratories

Environment andsafety departments

Environment andsafety inspection
Environment andsafety manager meeting

5 plants, 3 laboratories (including Tokyo Techno Park),business divisions of 4 segments, Purchasing & Logistics
CenterCorporate headquarters

Improvement orders (19 cases) Comments (29 cases)■ Follow-up issues identified in previous year

We audited the handling of items identified atworkplaces in the previous year to confirm that proper
measures have been taken.

Environment and safety division(Administrative office of RC)• Reflect up-to-date information in safety data sheets (SDSs).

Chemical and
Product Safety

23■ 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.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

RC Audit in 2013
The director in charge of environment and safety, together
with an auditing team, conducts the RC audit. This audit

Tokyo Techno Park / Audit

Niigata Plant / Audit

MITSUBISHI GAS CHEMICAL COMPANY, INC.

24

Responsible Care and MGC

Results and Plans for RC Activities at MGC★★★ : Achieved
RC CodeOccupational Healthand Safety

RC Medium-Term Plan
2011–2014

Working toward zero occupational injuries andaccidents■ Establish a culture of safety.

Process Safety andDisaster Prevention• Enhance communications.
• Eradicate human error.
• Identify fundamental causes of accidents andoccupational injuries, and undertake active
measures to improve equipment.
■ Enhance voluntary process safety inspections.
■ Enhance joint disaster prevention systems withneighboring affiliates.

■ Reduce the energy consumption intensity to below

85% of the FY 1990 level.
• Implement energy saving measures andreduction of equipment problems.
■ Reduce greenhouse gas emissions intensity to
below 75% of the FY 1990 level.

Environmental
Preservation■ Reduce emissions of PRTR substances and VOCs.

• Focus reductions on substances with highemissions volumes.
■ Achieve zero emissions of waste.
■ Workplaces that achieve zero emissions willfurther reduce their final disposal volume.

2013 RC Action Plan

2013 Achievements

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 towardachieving zero occupational injuries and accidents. Specific details are as follows:

1. We proactively carried out daily activities in each business site. We made changes to increase the participation
rate in the identification of Hiyari-Hatto [near misses]. We shared case studies at business sites and tracked
progress until improvement measures were completed. We also utilized Hiyari-Hatto [near misses] examples asmaterials of teaching and risk assessments.
2. We worked on identifying and mitigating risk scenarios for each department in terms of not only emergency
shutdowns, but also in the event time has passed since workers evacuated following a shutdown. As part of ourefforts to prevent major accidents in the chemical industry, we also completed our identification of processes withthe potential to lead to abnormal reactions or explosions/fires and began reviewing measures.
3. We worked to enhance communication by utilizing the opportunities presented by workplace round-tables, patrolrounds, and safety meetings held before the beginning of work. Some plants also held discussions between theplant manager, team leads and assistant leads of operational sections on the topic of safety activities.
4. We continued to firmly establish causal analysis habits by holding seminars, etc. on methods for comprehensively
analyzing the fundamental causes of accidents and occupational injuries.
5. We continued with utilizing to full effect our company-wide facility management system, and further strengthened
our management of tracking equipment history.
6. During emergency response training for earthquakes and fires, we reexamined systems for cooperative disasterprevention and emergency communication report systems and verified matters to be passed on to firefighters at
each business site.
7. Each business site worked with partner companies to hold safety and health committee meetings, to carry out
emergency response training, to issue proposals for Hiyari-Hatto [near misses], to carry out improvement proposal
activities, and supported safety and health activities.

1. Continue daily activities (hazard prediction activities, Hiyari-Hatto [near miss]identification activities, 5S activities).
2. Thoroughly pursue the elimination of plant accidents. (Identify and reduce risk
from abnormal reactions, explosions/fires, and risk occurring during emergency
equipment shutdown.)
3. Enhance communication and link communication to eradication of human error.
4. Firmly establish accident and occupational injury analysis methods.
5. Firmly establish, utilize, and enhance our company-wide facility management
systems.
6. Enhance emergency response, including fire-extinguishing capabilities, forneighboring affiliates and partner companies.
7. Pursue activities for preventing occupational injuries at partner companies.
(Enhance facility upgrades, support for the training of partners’ employees, andcommunication 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 greenhousegas 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 foreach business site, and draft and enact reduction plans with clear target values.

2. We implemented reduction plans at business sites with high emissions of mainly
1,2,4-trimethylbenzene. We reduced our emissions of PRTR substances on the Japan Chemical
Industry Association’s list by approx. 44% over FY 2010 levels on a target substance basis. We
reduced our emissions of VOCs by approx. 48% over FY 2010 levels.

3. Continue to achieve zero emissions of waste. Set a waste reduction target foreach business site and strive to achieve even lower emissions.

3. We achieved zero emissions at 9 of our 10 business sites (production sites and research labs).
The amount of final waste disposed of in landfills totaled 84 tons, which marked a 31% reduction
over the 122-ton figure from last fiscal year.

We will carry out risk assessments on products. Specifically, this entails:■ Provide product safety information.

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

Chemical and Product
Safety25

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

■ 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.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

1. We reduced the energy consumption intensity by approx. 1.5% year-on-year, to 91% of the FY
1990 level. We reduced greenhouse gas emissions intensity by approx. 2.2% year-on-year, to
76% of the FY 1990 level. Energy-saving measures included improving the efficiency of utility
facilities through boiler modifications and making modifications to pipework of plants. The net
result was an energy savings effect equivalent to 8,700 kL of crude oil. Results of thesemeasures brought a reduction in GHG emissions equivalent to approx. 12,000 tons of CO2.
Noteworthy here are the concrete benefits that have resulted from check-ups on steam
equipment, undertaken for the sake of greater energy efficiency at each plant since FY 2011.

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.
5. Promote development of products with lower environmental impact and energy
saving technologies.

1. We reflected up-to-date information on the SDS of regular products and products in development,
affecting a total of 204 items for which a new SDS was created or existing SDS revised.
• We provided clients with newly created or revised SDS, ensuring that they are given the most
up-to-date information.
• We clarified procedures for making SDS compliant with new JIS standards and trained relatedparties. About 30% of the all SDS were revised or had a draft proposal finalized for compliancewith the new JIS standards.
• We improved a system for revision of SDS and labeling by clarifying procedures for the timing of
SDS and label revisions, and we conducted training about the system as part of GHS training
held at all business sites.
2. We provided training on Europe’s REACH regulation at all business sites as a form of product liability
training.
3. We examined the implementation of the Japan Initiative of Product Stewardship (JIPS), a risk
evaluation project advocated by the Japan Chemical Industry Association. We conducted 38 cases of
in-house safety testing for new products in 2013; 15 related to acute toxicity, 11 to the Ames test, and
12 to primary skin irritation. (Last fiscal year, these numbers were 15, 12, and 13 cases respectively,
for a total of 40 cases.)
4. We registered all 17 substances (2 overlapping substances) by the second REACH registration deadlineof May 31, 2013 (including MGC Group companies).

Assessment★★ : Mostly achieved★ : Further efforts required

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 and accidents. 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 eradicationof human error (ongoing).
5. Establish emergency response system, including neighboring
affiliates, partner companies and fire departments.
6. Continue to pursue activities for preventing occupational injuries atpartner 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 toachieve 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 forworkplaces 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 business site, and draft
and enact reduction plans with clear target values.
3. Continue to achieve zero emissions of waste. Set a
final landfill reduction target for each business site andstrive to achieve even lower waste landfill.
We will carry out risk assessments on products.
Specifically, this entails:

★
★
★

★
★
★

1. Reflect up-to-date product safety information in SDS.
• Provide accurate information on hazards tocustomers, etc.
• Comply (by December 2015) with new JIS (JIS Z
7253) for SDS.
• Reexamine and put to use the SDS/label
management system.
2. Implement in-house education on risk evaluation.
3. Set implementation plans for risk evaluation.
(Promote safety assessment during new productdevelopment.)
4. Adapt to and support overseas laws and regulations.
5. Promote development of products with lower
environmental impact and energy saving technologies.
6. Reinforce management of chemical reagents.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

26

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

Change in lost time injury frequency rate*1
2009

2010

2011

2012

MGC

0.57

0.28

0.54

0.80

2013

0

Chemical industry

0.72

0.72

0.88

0.85

0.82

Manufacturing industry

0.99

0.98

1.05

1.00

0.94

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

Change in lost time injury severity rate*2

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
safety-related education and drills, and occupational
health and safety risk assessments.

Mizushima Plant / Training on thehandling of low voltage equipment

2009

2010

2011

2012

MGC

2.14

0.01

0.01

0.03

2013

0

Chemical industry

0.13

0.04

0.04

0.12

0.12

Manufacturing industry

0.08

0.09

0.08

0.10

0.10

Certified High Pressure Gas Plants
We conduct audits of our certified high pressure gas
plants under the direction of the Director in charge ofenvironment and safety (Process Safety Management
General Controller). Accordingly, our Niigata Plant andMizushima Plant are “high pressure gas safety
management code certified” high pressure gas plants. The
aim of our audits is to objectively evaluate the highpressure gas safety management system and the certified
inspection management framework to ensure that they are
working effectively.
Certified process safety management system for high pressure gas*2 Severity rate: Number of lost working days per 1,000 working hours

Preventing Occupational Injuries atPartner Companies
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 partnercompanies.

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

Audit of process safety management system
Certified plant

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

Appropriate certified facility inspection
Confirmation of status of implementation

Plan
Act Safety management system Do
CheckManagement departments
Certified facility
inspection
department

Kashima Plant / Hazard prediction
training at the worksite· Process safety
management department· Operational management
department· Facility management
department

Responding to Emergencies
Kashima Plant / Regular
Maintenance Safety Assembly
Yamakita Plant / Basic lifesaving
training

Yokkaichi Plant / Outdoor meetingat the time of regular maintenanceTokyo Techno Park / First-aid
training

As a precaution, MGC has established a disasterprevention system at each of its sites, and conducts
various drills according to the annual plan.

Process Safety and Disaster Prevention
Activities

Niigata Research Laboratory /Workshop led by young employee
instructors

Hiratsuka Research Laboratory /Observation of disaster reduction
training

Safety Performance
In 2013, occupational injury incidents resulting in lost time
totaled zero cases at MGC, and one case at partnercompanies.

27

MITSUBISHI GAS CHEMICAL COMPANY, INC.

To prevent the occurrence of accidents and injuries, it isimportant to ensure the safety of production processes
and the soundness of facilities. At each site we conduct
inspections and renewal planning for facilities, andprioritize inspections, repairs and renewals according toeach aging facility’s risk and importance.
Considering the fact that explosions and fires continue
to break out in the chemical industry, we have begun
implementing risk reduction measures after identifying
particular risks from a comprehensive inspection offacilities and processes to determine the likelihood ofsimilar accidents occurring at MGC based on the scenario
of an emergency shutdown.

Accident Zero (AZ) Project Phase II
In response to yearly increases in accidents andabnormalities, as well as a serious accident that occurredat our Niigata Plant in December 2007, MGC launched thecompany-wide Accident Zero (AZ) Project in February of
2008. Over the three years since, we have continued
activities to strengthen education and communication
under the Project.
As these activities have become formalized andestablished in our laboratories we ended the project, and in
FY 2011 we commenced AZ Project Phase II. As key
directions during this period, we worked on improvement of“on-site competency” in individuals and organizations, andprevention of equipment and operational troubles throughcooperation with the Production Technology Division.
In FY 2013, every plant undertook member-led working
group activities and worked to resolve issues common to allplants with the perspective of the frontline in mind.
Furthermore, MGC made progress on improving the visibilityof on-site issues and completed its response, through TPM*
activities and education on equipment management, as well
as shared good practices across the company.
We connected these initiatives for the energizing ofsafety activities throughout the company, by means
including liaison conferences for the special safetyadministrators responsible for AZ activity promotion inplants, and information exchanges through AZ activity
inter-plant meetings. Through cooperation between theEnvironment and Safety Division and Production
Technology Division, our support for accident and trouble
countermeasures at plants is showing results.
Moving forward, we will change the name of the projectto Bridge Activities in order to emphasize the importance oflinking the results of the AZ Project with future practices.
Activities will be continued at each plant through the local
safety and disaster prevention subcommittee.
* TPM (Total Productive Maintenance) refers to improvement of production with theparticipation of all personnel.

Niigata Plant / Fire hose training

Yamakita Plant / Ammonia leakresponse drill

Mizushima Plant / Disaster reduction
training for power outages

Tokyo Techno Park / Joint firefighting
practice

Kashima Plant / TPM
assessment

Mizushima Plant / Inter-plantmeeting

Niigata Plant / Accident
review meeting

Yokkaichi Plant / Inter-plantmeeting

MITSUBISHI GAS CHEMICAL COMPANY, INC.

28

Responsible Care and MGC

Environmental Impact of Business Activities of the MGC Group

Preservation of Biodiversity

Member companies of the MGC Group Environment and Safety Council in Japan carry out Responsible
Care 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 2013.
The environmental impact figures shown in the table for the entire Group captures over 90% of the MGC
Group’s domestic consolidated accounting.

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

Total for the domestic MGC Group*

1

Environmental Impacts from the Business
Activities of the MGC Group Overseas

MGC alone2
FY 2012*FY 20132
FY 2012*FY 2013

Sites tabulated: 64

Sites tabulated: 65

Sites tabulated: 13

Sites tabulated: 13

INPUTS
Energy consumption
including purchased
electricity (crude oil equivalent)

Units

2012

1,000 kL

678

INPUTS

2013
746

Water usage

Energy consumption
including purchased
electricity (crude oil equivalent)

Units

2012

1,000 kL

562

2013
631

Water usage
1,000 m3

1,334

1,313

Tap water

1,000 m3

763

723

Industrial water

1,000 m3

25,51925,933

Industrial water

1,000 m3

21,84822,302

3

Groundwater3

1,000 m

1,519

1,506

Groundwater

1,000 m393

365

River water

1,000 m3

15,145

13,340River water

1,000 m3

15,145

13,3403

1,000 m

1,049

936

1,000 m3

39,19837,666

Total water consumption

OUTPUTS

3

1,000 m

1,170

1,239

1,000 m3

44,686

43,342

Units

2012

2013

OthersTotal water consumption

OUTPUTS

Emissions to atmosphere

Emissions to atmosphere

Greenhouse gas emissions(CO2 equivalent)Greenhouse gas emissions(CO2 equivalent)SOx emissions

1,000 tons
tons

1,612
158

1,785
147

SOx emissions

Units

2012

2013

2012

2013

Sites tabulated: 8*

Sites tabulated: 9*

INPUTS

1,000 tons
tons

1,341
65

1,506
76

tons

691

746

NOx emissions

tons

625

673

Soot and dust emissions

tons

28

26

Soot and dust emissions

tons

21

22

1,000 m193

188

Industrial water

1,000 m3

609

725

3

1,000 m0031,000 m0031,000 m0031,000 m

802

913

Units

2012

River water
OthersTotal water consumption

1,000 m3

63,46062,020Drainage volume

1,000 m3

33,67834.803Emissions to atmosphere

COD emissions

tons

268

256

COD emissions

tons

202

194

Total nitrogen emissions

tons

171

338

Total nitrogen emissions

tons

149

316

Greenhouse gas emissions(CO2 equivalent)

Total phosphorus emissions

tons

Total phosphorus emissions

tons

69

61

tons

84,91586,012
22,71465

Generation of waste
Amount generated

Generation of waste
tons

161,287

166,514Amount generated

tons

25,020

tons

6,763

6,326

tons

122

84

Amount recycled(including amount sold)tons

40,86440,031

Amount recycled(including amount sold)Transfer to off-site

tons

31,22638,097

Transfer to off-site

5,209

Final landfill

Final landfill

tons

5,105

Notified substances under PRTR Law

Notified substances under PRTR Law

Emissions (air)

tons

1,497

1,554

Emissions (air)

tons

294

298

Emissions (water)

tons

20

22

Emissions (water)

tons

13

15

Emissions (soil)

tons

0

0

Emissions (soil)

tons

0

0

Total amount emitted

tons

1,517

1,576

Total amount emitted

tons

307

312

Total amount transferred

tons

931

1,012

Total amount transferred

tons

447

235

*1 The data used for the total for the domestic MGC Group is the sum of the main domestic manufacturing and processing businesses (member companies of the MGC Group Environment
and Safety Council; see pages 44 to 48) and MGC itself (production sites such as plants and non-production sites such as laboratories and sales offices).
*2 FY 2012 data may appear differently in CSR Report 2013 because it has been revised.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

3. Act voluntarily and steadily to contribute tobiodiversity

2013

3

Drainage volume

74

2012

2. Act from a global perspective on thebiodiversity crisis

Tap water

OUTPUTS

Released to water area

Units

1. Appreciate nature’s gifts and aim forcorporate activities in harmony with thenatural environment

Water usage

GroundwaterNOx emissions

Released to water area

7 Clauses of Keidanren’s Declaration of Biodiversity

Overseas MGC Group Companies

Tap water

Others29

We are compiling environmental impact data for eightoverseas production companies in the MGC Group.
Not all companies had data available for some of theitem categories. In the future, we will increase the numberof companies for which we compile data and we will makethe surveys more detailed.

4. Promote corporate management forsustainable resource use
5. Create an industry, lifestyle, and culture thatwill learn from biodiversity
6. Collaborate with relevant international andnational organizations
7. Spearhead activities to build a society thatwill nurture biodiversity

2013

1,000 tons

17

19

1,000 m3

171

159

Amount generated

tons

2,746

2,773

Amount recycled(including amount sold)

tons

655

452

Final landfill

tons

1,273

1,213

Released to water area
Drainage volume

MGC sympathizes with and signed on as a promotional
partner of the Keidanren (Japan Business Federation)
Declaration of Biodiversity in 2009.
In May 2014, MGC became a member of the
Keidanren Nature Conservation Committee in order topromote activities to protect the natural environment andconserve biodiversity.

Generation of waste

Notified substances under PRTR (TRI) Law
Emissions (air)

tons

61

81

Emissions (water)

tons

0

0

Emissions (soil)

tons

0

0

Total amount emitted

tons

61

81

Total amount transferred

tons

188

190

The business activities in the chemical industry have asignificant impact on biological organisms and the naturalenvironment.
Recognizing this and to continuously benefit from theabundant natural environment, in the course of ourbusiness, we set Responsible Care as the foundation onwhich we continue ever greater efforts to maintain a richnatural environment and preserve biodiversity throughchemical product management, environmental protection,energy efficiency, and the development of environmentallyfriendly products and technologies.

* 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., PT Peroksida Indonesia Pratama, SamYoung Pure Chemicals Co. Ltd., AGELESS (Thailand) Co. Ltd.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

30

Responsible Care and MGC

Initiatives for the Prevention of Global Warming
MGC Overall Performance
At MGC, each sector—manufacturing, transportation, office and residence—is making efforts to prevent
global warming.
FY 2013 energy consumption and greenhouse gas emissions for all of the company’s business activities were as
follows. Emissions from plants’ manufacturing divisions account for 97% of greenhouse gas emissions.
Energy consumption(1,000 L crude oil equivalent)Greenhouse gas emissions(1,000 tons-CO2 equivalent)

Plant Manufacturing Division

530.6

1267.5

Transportation Sector (shipper)

10.1

26.8

Office Area

6.2

12.4

546.9

1306.7

Business activities overall*1: Refers to the amount of energy used per production volume*2: Refers to the amount of GHG emissions per production volume

Our plant manufacturing division has continually worked toreduce our use of energy and emissions of greenhousegases (GHG). In FY 2013, we were able to reduce energy
usage and GHG emissions by 5% year on year, despite
seeing an increase in production volume. Our energy
consumption intensity, improved 1.5% year-on-year to91%, using the 1990 level for base comparison, and GHG
emissions intensity improved 2.2% year-on-year to 76%,
also using the 1990 level for base comparison.
In our FY 2013 energy-efficiency measures, we
implemented over 50 initiatives, including reducing the useof heat from reactor devices, recovering heat from steam,switching to inverter motors for pumps and ventilation
machinery, and employing high efficiency transformers.
The energy-saving results of these measures brought acrude oil equivalent reduction of 8,700 kL, and a reduction
Energy consumption amount and consumption intensity
Energy consumption amount

Energy consumption intensity

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

1.00
0.93

0.88 0.87 0.89 0.89

0.95

1.00

GHG emission amount(1,000 tons)

1.0

0.92 0.91

400

544 554
430

569

562

577

531

493

533

550 556

0
1990

31

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2,500

0.8

2,000

0.6

1,500

531

200

GHG emissions intensity

GHG emissions intensity(FY 1990 = 1)

1.00
0.86 0.83 0.87
0.82 0.83 0.84 0.81
0.79 0.78

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

4%

5%

500

6%

400

62%

6%

6%

64%

65%

62%

300

5%

64%

65%

5%

4%

65%

65%

200

1,490

1,334
1,166

1,330
1,268
1,275 1,303

33%

33%

30%

28%

30%

30%

31%

0.4

0.2

500

0.2

0.0

0

0.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

(FY)

(%)
100
80
60
40
20

10％

0
2009

8％
2010

7％
2011

6％
2012

5％
2013

(FY)

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 and computers when
not in use.
We continued these measures in FY 2013 as well. Ourannual energy consumption rose 6% year-on-year but wehave been able to achieve an 8% reduction over FY 2010
(before the Great East Japan Earthquake).
In the employee residence area, we called on
employees to work toward energy reduction by sending
e-mail messages detailing real examples of energy saving
steps centered around easily implemented approaches.

2006

2007

2008

2009

2010

2011

2012

(FY)

2013

CO 2 emissions from modes of transport used in physicaldistribution
By rail

By ship

By truck

CO2 emissions intensity

CO2 emission(1,000 tons)
1.00

30%

0.99

0.97

2%
30%

20

68%

0.95

2009

6.10

10.57

2010

6.68

11.05

2011

5.66

8.98

2012

5.80

10.67

2013

6.17

12.41

0.93

3%
2%

3%

33%

37%

65%

61%

33%

1.0

Environmental Information Sharing System

0.9

We have rolled out our Environmental Information Sharing
System, which manages information on the environmental
impacts of business sites.
The system is intended to increase efficiency in thecompilation of increasingly complex environmental
information and in reporting tasks. We also built thesystem to use in identifying problem areas within eachproduction process and in verifying the effects of energy
conservation measures, particularly through assessmentof per- production facility/per- product data on energy
consumption and GHG emissions.
Going forward, we will put it to use in collection andanalysis of environmental information from Group
companies, including those overseas.

0.94

0.94

2%

2%

2%

34%

35%

68%

65%

64%

63%

35%

0.8

0.7

63%
0.6

0
2006

Greenhouse gas emissions(1,000 tons-CO2 equivalent)

CO2 emissions intensity(FY 2006 = 1)
0.98

2%

Energy consumption(1,000 kL crude oil equivalent)

FY

30%

0

0.8

0.6

Not less than 10 tons but less than 12 tons

Energy consumption in the business operations division

100

10

0.76

1,000

1990

By truck

1.0

0.91

1,184

By ship

600

Target rate for FY 2014

0.4

(FY)

By railAmount transported(millions of ton-kilometers)

30

GHG emission amount and emissions intensity

Energy consumption intensity(FY 1990 = 1)
0.95 0.95

Volume of transportation

40

Emission amount

800

600

in GHG emissions equivalent to approx. 12,000 tons of
CO2.
Moving forward, we are planning to implement
measures for collecting and using by-product gases,
recovering heat from exhaust gases, and switching over tohigher efficiency exhaust gas cracking furnaces.
Furthermore, we are carrying out energy efficiency
assessments of steam equipment to promote new energy
efficiency measures. In FY 2013, we completed theassessment of our Yokkaichi Plant and came up with 33
new proposals for measures, which are expected to saveenergy in the amount equivalent to 1,200 kL of crude oil.
Of the proposals for measures identified during theassessment of the Kashima Plant in FY 2012, we are
currently moving forward with seven that are expected todeliver a comparatively quick return on investment. Oncethese measures are in place, the plant is expected to saveenergy in the amount equivalent to 640 kL of crude oil.

Target intensity for FY 2014

Less than 10 tons
Not less than 12 tons

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 2013, our transportation volumes increased
accompanying production increases, which brought a 1%
rise in our ton-kilometers (transport weight × transportdistance). Higher production led to an approx. 1%
increase in CO2 emissions as well. The result of this was
CO2 emissions intensity remaining roughly the same,
though the statistic had shown improvement of about 6%
in the eight years since FY 2006.
From here out, we are planning energy-saving
measures that include a modal shift to rail from hauling on
main lines.

For plant manufacturing divisions that are the focus of initiatives, we have set the following objectives forour measures.
■ Energy consumption intensity *1:
Reduce to 85% or lower compared with FY 1990 levels by FY 2014
■ Greenhouse gas emissions intensity*2: Reduce to 75% or lower compared with FY 1990 levels by FY 2014

Manufacturing Plant Initiatives

Transport lot sizes

Initiatives in the Transportation Sector

2007

2008

2009

2010

2011

2012

2013

(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

32

Responsible Care and MGC

Responsible Care and MGC

Initiatives for the Prevention of Global Warming

Chemical Emissions of the MGC Group
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.

Development and Utilization of Clean Energy
Natural gas is a clean fuel that has low emissions of CO2
for each calorie of energy compared to petroleum, as wellas less sulfur and other impurities. In Niigata Prefecture,
MGC has been actively conducting exploration anddevelopment work on natural gas. We have deployed
natural gas at our Niigata Plant, where it is used as both araw material and an energy source.
We are also promoting the switch to natural
gas-related fuels, such as city gas and LNG, at locations
other than our Niigata Plant. Fuel conversion at our plants
has come to an end, with natural gas-related fuels making

up a larger percentage of our company-wide energy
consumption. In FY 2013, this usage rose 1% year on
year to 58%.
In addition, MGC is participating in a project inHachimantai, Akita Prefecture, to supply an adjacent
power plant with geothermal steam, a type of renewableenergy. Geothermal energy is plentiful in Japan and is
expected to see further development. MGC is also taking
part in a project to survey and develop geothermal
resources in Yuzawa City, Akita Prefecture, with the aim of
constructing a geothermal power plant.

Substances Subject to Notification under
the PRTR Law

PRTR Law Substances with High Levelsof Emissions

Substances subject to release and transfer notification
under revisions to the PRTR Law increased to 462 in FY
2010.
Group-wide, we made notifications in FY 2013 for 85
substances handled that exceeded prescribed volumes.
Our annual emission of those substances totaled 1,576
tons, an approx. 4% year-on-year increase over the 1,518
tons last fiscal year. The amount transferred totaled 1,012
tons Group-wide, an increase of approx. 9%, or 82 tons,
compared with FY 2012’s total. This increase was mainly
due to an increase in production volume.

Among the substances registered under the PRTR Law,
those listed below are emitted by the MGC Group in
amounts of 10 tons or more.

PRTR Law substance emissions
Group

Number of notified substances

MGC

Number of substances

Amount (tons)

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

Purchased steam
Other purchased fuelPurchased power
By-product fuelCoal
Heavy oil
Natural gas

2,000

1,400
90

87

1,800
1,600

100

100

89

86

80
70
60

1,178.5

1,000

30

400

20

639.9

200

339.0

228.0

0
50

1,263.5 40

974.7

600

60

50

1,212.3

1,130.3

800

70

90

71

1,200

80

85

2009

2010

2011

306.6
2012

312.5
2013

10
0
(FY)

40

PRTR Law substance transfers

30
20

53%

48%

39%

38%

35%

58%

57%

57%

Group

58%

MGC

Amount (tons)
1,400

10

1,200

0

1,000
2005

2006

2007

2008

2009

2010

2011

2012

2013

(FY)

800

484.0

600

370.3

400
200

557.2

344.7

551.0

MITSUBISHI GAS CHEMICAL COMPANY, INC.

■ Xylene (20 tons)■ Toluene (13 tons)■ Isobutyraldehyde (12 tons)

Japan Chemical Industry Association
PRTR-Targeted Substances (MGC)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, on a standalone basis, is working to assess andreduce substances, targeted by the JCIA in FY 2010.
Eighty two of these substances were emitted in total, in
the amount of 429 tons, in FY 2013. This marked an
approx. 3 ton reduction over the previous year and an
approx. 44% reduction compared to FY 2010.
Transferred amounts of these substances totaled 625
tons, a reduction of approx. 42%, or 460 tons, comparedwith FY 2012’s total. This reduction was primarily due to a
shutdown of certain equipment.

Volatile Organic Compounds(VOCs) (MGC)
235.0

2010

2011

2012

2013

(FY)

* PRTR emissions volume and transfer volume have been revised because of changes totabulation data for FY 2012.

33■ Dichloromethane (64 tons)

777.4

446.9

0
2009

■ 1,2,4-Trimethylbenzene (193 tons)* “422 substances plus 1 substance group” from page 32 of CSR Report 2013 was anerror. This has been revised in the current edition.

633.1

449.5

■ Chloromethane (1,231 tons)

At MGC (standalone), PRTR Law substances, and thoseon the JCIA list, for which there is release into theatmosphere, are tallied as VOCs.
Amounts released into the atmosphere in FY 2013
totaled 22 substances and approx. 374 tons at all of ourbusiness sites, an increase of 3 tons, compared with FY
2012’s total.
This marks a 48% reduction compared to FY 2010
results.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

34

Responsible Care and MGC

Responsible Care and MGC

Waste Reduction in the MGC GroupAir and Water Conservation in the MGC Group

Each MGC Group company is striving to reduce waste, by promoting the 3Rs,* and properly dispose ofwaste according to applicable laws.

Each MGC Group company strives to further reduce its impact on the environment by actively investing infacilities so that a balance between natural environment preservation and sustainable production activities
can be achieved.

* 3Rs: Reduce, Reuse, Recycle (waste products)

Final landfill amount

Waste Reduction Achievement

Group

Emission of total nitrogen

Preservation of Air Quality

MGC(tons)
350(tons)
6,000

FY 2013 waste amounts totaled approx. 169,700 tons
Group-wide, an increase of approx. 8,400 tons
year-on-year. The primary reason for the increase was thecontinued generation of unneeded material during ourreassessments of business operations.
Also, the final landfill amount, Group-wide, was 5,209
tons, an increase of 104 tons year-on-year. This increase
was due to the continuing occurrence of sludge and soil
waste associated with changes in business operations.

Group

300

5,000

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.

5,125

4,983

4,000
3,000
2,000

1,446
134

1,000
0
2009

1,411
130

1,561
97
2010

2011

122
2012

84
2013

(FY)

Final landfill waste intensity compared to consolidated net
sales
MGC Group total

10.91

10

Group

100

173.6

MGC

180
160
140
120
100
80
60
40
20
0

36.0

93.2

112.2

150.8

2009

2010

2011

71.6
75.7

64.9

0

8

(1,000 tons)

MGC

89.5
28.6

9.74

2012

2013

48.2

45.3

76.4

83.6

88.5

87.4

90.7

84.9

86.0

4

3.68

3.41

0.48

0.29

0.37

0.33

0.20

2009

2010

2011

2012

2013

(tons)
800

2

2009

2010

0
2011

2012

(FY)

2013

Group

600
(FY)

63.1

54.7

60.4

65.7

680.9

668.3

605.7

624.9

2009

Group

MGC

72.9
673.3

60
50
40
30
20
10
0
2009

21.1

22.1

25.9

27.5
2010

19.4

15.8

20.5

25.7

25.0

22.7

2011

2012

2013

MGC itself, as a single company, strives to reduce waste
and defines zero emissions as a final landfill waste amountof 0.3% or lower.
For our 10 business sites, our zero emissions intensity
came to 0.10%, with 84 tons of final landfill waste out of
86,012 tons generated, marking a reduction of 31%
compared to the previous fiscal year. MGC has achieved
zero emissions on a standalone basis since FY 2008.

(FY)

Waste Treatment in the MGC Group in FY 2013
Recycled amount
36,639 tons
(21.6%)

Reduced amount
94,797 tons
(55.9%)

Generated amount
169,658 tons
(100%)

Reduced amount
26,167 tons
(15.4%)

Recycled amount
6,536 tons
(3.9%)

Off-Site

40
20

MITSUBISHI GAS CHEMICAL COMPANY, INC.

(FY)

0
2009

2010

100

315.8

22.5

230.6

148.8

50
0
2010

2011

2012

(FY)

2013
Group

(tons)
80
70
60
50
40
30
20
10
0

3.2

2009

MGC

4.6

67.8

2.0

2.1

54.4

53.0

2010

2011

4.6

69.0

2012

60.7

(FY)

2013

Water Consumption / Wastewater Volume

2011

3.5
22.4

6.1
21.5

30.9
2012

2013

(FY)

The increase in wastewater was a one-off event due to theintensive processing of wastewater stored in tanks
associated with the decommissioning of facilities.
Water consumption
Group(1,000 m3 )50,00040,000

MGC

4,945

5,193

5,192

5,489

5,676

40,50039,11439,89139,19837,66630,00020,00010,000
0
2009

Emission of COD
Group

35.6

MGC

150

231.6

62.5

202.4

50

(FY)

2013
Group

40,00020,000
0

193.9

MGC

3,522

3,755

3,626

34,26332,85833,026

2009

2010

2011

2012

29,782

27,21733,67834,8032013(FY)

Water usage/wastewater volume intensity compared toconsolidated net sales(m3 /million yen)
160
120

Water usage intensity

Wastewater volume intensity

136
118

100
80

260.4

226.2

100

65.8

30.5

2012

60,000

140

38.6

2011

(1,000 m3 )80,000We 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 was a
one-off event caused by the processing of wastewaterassociated with the decommissioning of facilities.

250

2010

Wastewater

Preservation of Water Quality

300

Final landfill
5,209 tons
(3.1%)

MGC

17.5

6.2
29.1

9.1
15.3

98

60

98

100

81

81

2010

2011

116
95

81

0

0
2009

35

2013

Group

(tons)
60

200

On-Site

2012

2011

(tons)
350

Amount emitted
externally
38,097 tons
Amount landfilledinternally0 ton (0%)

2010

Emission of soot and dust

(1,000 tons)

22.4

400
200

Zero Emissions at MGC

269.0

150

MGC

0

Recycled amount

272.8

22.4

* Actual performance of air and water quality data from FY 2012 has been reviewed andrevised.

Emission of NOx

4.11

23.1

200

(FY)

6

49.7

25.8

MGC

Emission of total phosphorous(tons)
300

200

250

2009

Emission of SOx

MGC standalone total(kg/million yen)
12

Amount of waste generated

Group

2010

2011

2012

2013

(FY)

2009

2012

2013

(FY)

* Past water usage volume has been reviewed and revised.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

36

Responsible Care and MGC

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

Safety Assessment of Chemical Substances andProducts

Basic survey● Survey of literature

Chemical and Product Safety Education

Emergency Responses in Distribution

MGC conducts chemical and product safety education
within its PL (product liability) training at each businesssite. In FY 2014, we carried out briefings on the Product
Liability Act and company rules related to the Act.
We also carry out launch screenings and practicaltraining for SDS
preparation, such as
points of caution
regarding productliability risk
assessments andregarding what toinclude on SDSs foraddressing risks.
PL education / Head Office

At MGC workplaces, we have set up a wide-area support
system that includes supplying emergency goods andequipment 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.

● Access to SDSs for raw materials,

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 evaluations (of the hazards of the substances themselves, aswell as of exposure) for all product processes, from manufacture todisposal, and offer the products after appraisal.
*1 GHS: The Globally Harmonized System of Classification and Labeling of Chemicals. Chemicalhazards are classified under fixed standards and are indicated clearly with pictograms on labels
and SDS documentation. Ultimately, the information contributes to accident prevention, humanhealth, and environmental preservation.

Providing Safety Information

etc.

Safety assessment● Hazard assessment● Assessment of environmental

safety impact

Hazard classifications● Survey of applicable laws
● United Nations classifications● Classifications in Japan

Preparation of safety information

Compliance with EU REACH Regulations● SDSs

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.

● Yellow Cards

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 weare in the process of reviewing them inaccordance with the new JIS (JIS Z 7253) andenhancing safety information.

● Assessment of risk management● Determination of marketability

Customer information

Premarketing investigations

SDSs (Safety Data Sheets)

37● Product warning labels

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

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 are carried during productshipments.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MGC and MGC Group companies have organized task
forces to steadfastly respond to the EU REACH chemical
product management regulations.
The task forces primarily work to register substances
shipped to the EU, and to employ a system for faithfullyreflecting the registration information on SDSs and labels
to convey registered information to customers. In the
future, we predict that an increased response will benecessary toward “substances of high concern” that
require permission for their use and marketing.
Consequently, we are working hard to procure relevant
information on these products and to provide it to ourcustomers.

Training for deploying oil barriersin Mizushima Port / Mizushima Plant

Mizushima Port counter-terrorism
training (detonation of explosive device)
Mizushima Plant

Regional support vehicle withdisaster reduction equipment /Mizushima Plant

Response to ship trouble / Mizushima
Plant

GLP Certified Testing Facility
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 and the Law
concerning the Evaluation of Chemical Substances and Regulation of Their Manufacture,etc., we conduct GLP tests when notifications are necessary for new chemical substancesthat 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.
* GLP (Good Laboratory Practice): GLP is a system which ensures the reliability of test results, through government recognition of excellent testing
facilities that demonstrate GLP standards-based management, testing equipment, test planning, internal auditing systems, reliability assurance
systems, and compliance with test result standards.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

38

Responsible Care and MGC

Responsible Care and MGC

Environmental Accounting

RC Activities at Business Sites

Using the Ministry of the Environment’s guidelines on environmental accounting, the cost of necessary
environmental preservation through MGC’s (individual, non-Group) business activities and the effective
economic result of those activities have been calculated quantitatively, and published for the public’s review.

Benefits of Environmental Preservation
Activities

Environmental Preservation Cost
The cost of environmental preservation activities includes
the investment costs of installing facilities to reduce
environmental impacts and the expenses associated withrunning and managing those facilities, as well as the costof research and development into environmentally friendly
products.

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.

Environmental preservation benefits

Investments

Compared to FY 2012, our energy consumption rate perunit of production in our Plant Manufacturing Division, and
our GHG emissions intensity, showed improvement in FY
2013. The results are shown on the Global Warming
Prevention initiatives pages.

The total of investment in environmental preservation
activities in FY 2013 was 820 million yen. The main itemsof that investment were the reduced emissions of vent gas
through the use of insulating paint on tanks at theMizushima Plant, and the enhancement of wastewater
processing facilities at the Niigata Plant.

Niigata Plant

Address: 3500 Matsuhama-cho, Kita-ku, Niigata-shi, Niigata 950-3121, Japan Tel: +81-25-258-3474
ISO 14001 certification: June 1998 (certification body: DNV)
Main products

Message from the Niigata Plant Manager

Methanol, Ammonia, and theirderivatives● m-Phenylenebis (methylamine)● MX Nylon● Bio-related products●

The Niigata Plant is situated on the Echigo plain which offers rich resourcesthat include the abundant waters of the Agano River and Niigata’s own
natural gas reserves. Blessed with these resources, the Niigata Plant closelyroots itself in the community and, through comprehensive improvement
activities and RC activities based on the total productive maintenance(TPM) regimen started in 2011, we are working to be a safe and open plantin harmony with its surroundings. We will strive to supply even better quality
products through our production activities and contribute to the growth ofsociety.

Environmental impact data (FY 2013)
Water consumption (1,000 m3)

9,999

Masato Inari

GHG emissions (1,000 tons-CO2)

436

Executive Officer
Plant Manager

SOx emissions (tons)0

NOx emissions (tons)

425

Total drainage volume (1,000 m3)

Economic benefit

Waste transferred offsite (tons)

We generated additional revenue by selling valuable waste
for recycling and re-use by other companies, and throughcost savings from reduced energy consumption.

Expenses
Total expenses related to environmental conservation
activities in FY 2013 were 8.3 billion yen. Of these, thehighest expense was 2.8 billion yen for research anddevelopment, accounting for 34% of the total. The next
highest was 1.7 billion yen for global environmental
preservation, representing 21% of the total.

Economic benefit
Title

Amount(millions of yen)

Item

IncomeProfit on sale of valuable waste, etc.

31.9Reduction of expenses

Effects due to energy saving

344.9

Air pollution prevention
Pollution
prevention
cost

Main areas of activity

Installation, repairs, and maintenance of emission gas recovery equipment

Investment

Expenses

13.8

615.8

Water pollution prevention

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

167.8

1,644.1

Soil, Noise

Prevention of soil infiltration; noise prevention measures

33.6

0.0

Global environmental preservation cost

Maintenance of cogeneration facilities; replacement with high efficiency equipment

110.5

1,746.3

Resources recycling costMaterial and thermal recycling of waste

23.6

835.8

Up or down stream cost

Retrieval and reuse of product containers; yellow card management

0.0

106.6

Management activity cost

Maintaining green spaces; maintaining environment management systems

34.3

437.8

R&D cost

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

212.1

2,818.1

Social contribution cost

Greening of surrounding areas; support for environmental conservation organizations

0.0

8.2

Environmental damage costCompensation for environmental preservation

0.0

87.5

595.7

8,300.1

Onsitecost

Total

Transfers(tons)

Ethylene oxide

2.30Butyl alcohol

1.4

1.3

Methyl methacrylate

0.3

0.4

Address: 182 Tayuhama Shinwari, Kita-ku, Niigata-shi, Niigata 950-3112, Japan
Tel: +81-25-259-8211(millions of yen)
Breakdown

Emissions(tons)New Disaster Prevention Center

Niigata Research Laboratory
Environmental preservation cost (Breakdown of investment and cost by business)

1,448
48

Final landfill (tons)
PRTR substances

9,608
38

BOD emissions (tons)

Main research themes

Message from the Research Laboratory Director

Process development
Catalysts● New energy-related research● Biotechnology● Life science●

The Niigata Research Laboratory is situated in the north part of Niigata City
where we carry out research activities for the development of new productswith environmental protection and safety in mind. Collaborating with the
Niigata Plant, which sits adjacent to us, we promote enhanced
communication and RC activities involving all employees that maintain thegoals of zero accidents, zero occupational injuries and environmental
preservation. Our goal is to be a business site that contributes to society
through the development of new products and technologies that are eco
friendly.

●

Yoshikazu ShimaLaboratory Director

Compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005
Period: From April 1, 2013 to March 31, 2014
Scope: MGC only
Methods: Investments are proportionally related to the approved or enforced amount of capital expenditure to environmental
preservation. Expenses are proportionally related to the ratio of environmental preservation and include depreciation allowance.
Comprehensive disaster reduction drill

39

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Visit by students

MITSUBISHI GAS CHEMICAL COMPANY, INC.

40

Responsible Care and MGC
RC Activities at Business Sites

Mizushima Plant

Address: 3-10 Mizushima Kaigan Dori, Kurashiki-shi, Okayama 712-8525, Japan Tel: +81-86-446-3822
ISO 14001 certification: May 2000 (certification body: JCQA)

Yokkaichi Plant

Main products

Message from the Mizushima Plant Manager

Address: 4-16 Hinagahigashi 2-chome, Yokkaichi-shi, Mie 510-0886, Japan Tel: +81-59-345-8800
ISO 14001 certification: August 1999 (certification body: JQA)
Main products

Message from the Yokkaichi Plant Manager

Xylene isomers
m-Xylene derivatives● Specialty aromatic products● Polyols

Hydrogen peroxide, other industrial
chemicals● Polyacetal plastics●

We are pursuing various initiatives at the Mizushima Plant under the slogan,“Striving for environmental preservation, safety, and stable operations!” We
are actively working to optimize the efficiency of energy usage at the entire
industrial complex, minimize substances that impact the environment, pursue
process safety and disaster prevention, and follow through with our
responsibility as one corporation dedicated to reducing atmospheric, water,
and industrial waste emissions.
In April 2014, our high pressure gas certification completion/safety test
implementer applied for renewal of the certification, and onsite screening has
been carried out. Also, we renewed our open test peripheral certification forboilers and Class 1 pressure vessels, carried out operational maintenance inaccordance with relevant regulations, and strived to maintain safe and stable
operations on a daily basis.

●●

Environmental impact data (FY 2013)

Tsuguji Kawabata
Plant Manager

Water consumption (1,000 m3)

11,983

GHG emissions (1,000 tons-CO2)761

SOx emissions (tons)75

NOx emissions (tons)

197

Total drainage volume (1,000 m3)

10,665

COD emissions (tons)
Final landfill (tons)

94
2

Motoyoshi Onobori

NOx emissions (tons)

19

Executive Officer
Plant Manager

COD emissions (tons)

53

Waste transferred offsite (tons)

688

Total drainage volume (1,000 m3)

Emissions(tons)

Transfers(tons)

41

MITSUBISHI GAS CHEMICAL COMPANY, INC.

0

Xylene9.8

5.2

Isobutyraldehyde

11.5

0

Acetone4.7

0n-hexane

4.1

0

PRTR substances

Emissions(tons)

1,2,4-Trimethylbenzene

125

Hydrazine

7.1

0

Methyl ethyl ketone

32

0.3

Transfers(tons)0

Disaster assessment drill led by the Yokkaichi fire department

Main research themesSpecialty plastics
Packaging materials● High heat-resistant film
● Resist bottom layer materials

Yamakita Plant

Address: 950 Kishi, Yamakita-machi, Ashigarakami-gun, Kanagawa 258-0112, Japan Tel: +81-465-75-1111
ISO 14001 certification: May 2000 (certification body: JQA)
Main products

Message from the Yamakita Plant Manager●●

The 81-year old Yamakita Plant lies near the Sakawa River, in a verdant andfertile area west of the Tanzawa mountains and east of Mt. Fuji. Because ofthis special location, our plant places the highest priority on environmental
preservation and the trust of the local community as we go about our daily
business. In addition to our commitment to continue safety andenvironmental preservation efforts in our plant, we also participate in local
festivals, cleanup and beautification activities, etc. We strive to be a plant that
continuously wins the trust and affinity of our regional community.

●

Derivatives of hydrogen peroxide
Persulfates

Environmental impact data (FY 2013)
Water consumption (1,000 m3)

6,580

GHG emissions (1,000 tons-CO2)

41

SOx emissions (tons)0

NOx emissions (tons)

Shojiro Kuwahara

Hiroya Fujii

Laboratory Director

Plant Manager

Total drainage volume (1,000 m3)
COD emissions (tons)
Waste transferred offsite (tons)
Final landfill (tons)

Firefighting drill

6,248

Final landfill (tons)●

The Hiratsuka Research Laboratory carries our research and development
primarily on synthetic resins and resin processing technologies. As part of ourefforts to give back to the local community, we take part in cleanup activities
along the nearby Sagami River and host visits by local schools. In terms ofsafety, we pursue our research and development after ensuring safe
operating conditions through “near miss” vigilance and proper risk
assessment. It is our aim to be a laboratory that contributes to society by our
research and development of new products and technologies related toresins.

6,881

20Address: 6-2 Higashiyawata 5-chome, Hiratsuka-shi, Kanagawa 254-0016, Japan
Tel: +81-463-21-8600

Message from the Research Laboratory Director

Water consumption (1,000 m3)
GHG emissions (1,000 tons-CO2)
SOx emissions (tons)

1,878

Practicing stacking sandbags

Hiratsuka Research Laboratory

Environmental impact data (FY 2013)

104

Waste transferred offsite (tons)

PRTR substances

The area in which the Yokkaichi Plant sits was once characterized by theimage of a polluted area with “Yokkaichi asthma.” However, the naturalenvironment of the area has been greatly improved by the local government’s
basic ordinance on the environment and the execution of an environmental
plan. Our plant follows a philosophy of safety and security, identical to the
local administration’s policy of environmental conservation, and goes aboutbusiness in a way that garners trust from local residents for our RC andenvironmental risk assessment activities. In 2013, we served as the presiding
company of the Yokkaichi Industrial Complex Region's Disaster Prevention
Council. Going forward, we will take the lead in the local community andpromote RC activities.

Planting grass in a park along the Sagami River

3
6,508
7
434
0

Fire hose drill carried out by the plant’s firefighting team

MITSUBISHI GAS CHEMICAL COMPANY, INC.

42

Responsible Care and MGC

Responsible Care and MGC

RC Activities at Business Sites

13 Member Companies of the MGC Group Environment and Safety Council
Thirteen 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 andoverseas affiliates.

Kashima Plant

RC Medium-Term Plan

Address: 35 Higashi Wada, Kamisu-shi, Ibaraki 314-0102, Japan Tel: +81-299-96-3121
ISO 14001 certification: February 1999 (certification body: JQA)●●

Hydrogen peroxide
Polycarbonate plastics

Environmental impact data (FY 2013)

Masamichi Mizukami
Executive Officer
Plant Manager

Water consumption (1,000 m3)

1,679

GHG emissions (1,000 tons-CO2)

146

SOx emissions (tons)0

NOx emissions (tons)

4

COD emissions (tons)

12

Waste transferred offsite (tons)

541
1

Final landfill (tons)
Emissions(tons)

Transfers(tons)

Dichloromethane

62.6

3.3

1,2,4-Trimethylbenzene

66.0

2.9

PRTR substances

2014 RC Action Plancompanies for environmental andsafety activities (support to include
terminals, transport, etc.)■ Promotion of the sharing of safety
information with domestic andoverseas Group companies

Main products

Message from the Kashima Plant Manager
While endeavoring to be a plant that prevents occupational injuries andaccidents, the Kashima Plant devotes its energy to developing
environmentally conscious materials, products, and processes, whichenables it to actively engage in initiatives to reduce our environmental impact,conserve resources and energy.
Now and in the future, in all of our business processes, we will create aharmonious coexistence with the environment, and work with the companiesof the eastern Kashima industrial complex. Our goal is to be a plant that
contributes to building an affluent society and a sustainable global future
under a policy of cooperation with the local community.

■ Expanding target Group■ Enhancement of the MGC Group

Environment and Safety Council■ Sharing and horizontal deployment

of information on abnormal
occurrences and occupational
injuries (Member companies ofCouncil, three additional
companies, and a portion ofoverseas Group companies)

MGC Group Environment and Safety
Council
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, the results of the activities, and the status of
accidents and occupational 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.

of environmental and safety initiatives at MGC Group
companies are introduced and shared across the Groupas good practices.

Environmental and Safety Audits
With the director in charge of the environment and safety
as team leader, we conduct three or four domestic andtwo or three overseas environmental and safety audits
each year in support of the Group companies’
environment and safety activities.
In FY 2013, the seven companies below were audited.
■ JSP Corporation, Kanuma 1st Plant■ Fudow Co., Ltd., Fujinomiya Plant■ Toyo Kagaku Co., Ltd., Headquarters Plant■ Japan U-PiCA Co., Ltd., Mine Factory■ PT PEROKSIDA INDONESIA PRATAMA (Indonesia)■ MGC PURE CHEMICALS SINGAPORE PTE. LTD. (Singapore)■ BRUNEI METHANOL COMPANY SDN.BHD. (Brunei)

A safety assembly held during nationwide safety week

JSP Kanuma 1st Plant audit

Tokyo Techno Park

Address: 1-1 Niijuku 6-chome, Katsushika-ku, Tokyo 125-8601, Japan Tel: +81-3-3627-9411

Message from the Tokyo Techno Park General Manager

TTP internal organization

Management Center● Oxygen Absorbers Techno Center● Information & Advanced Materials
Segment
Research and Development Center● Tokyo Research Laboratory● MGC Chemical Analysis Center●

As the hub of MGC research and development, Tokyo Techno Park is
constantly engaged in leading edge research activities for new businesses.
We review the impacts of research results on safety and the environment,from basic research to commercialization and aim to create businesses that
contribute to society. At the same time, we are also focused on developing
human resources with a heightened awareness of safety.
In addition, we work with local governments to contribute to regional
disaster prevention efforts, which include carefully managing our facilities andholding training for emergencies.

Takayuki Watanabe

A meeting held at the MGC
headquarters

A meeting at Fudow Co., Ltd.’s
Fujinomiya Plant

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

A.G. International Chemical Co., Inc.

Senior Managing Executive Officer
General Manager

BMC (Brunei) audit

In domestic companies otherthan those above, we holddiscussions between
managers in charge of theenvironment and safety as well
KYT (danger detection training)as provided detailed support.
led by a Kashima Plant manager
at Mitsubishi Gas ChemicalAlso, affiliates withEngineering-Plastics (Shanghai)overseas operations receive Co., Ltd.
assistance not only in termsof technical guidance, butalso for environmental and safety issues as well.

Manufacture of purified isophthalic acid (PIA)

Address: 3-580 Okaga, Matsuyama, Ehime, 791-8057 Japan Tel: +81-89-953-5143
URL:
http://www.agic.co.jp/e_agic/index.html

Basic lifesaving training for new employees

The plant’s booth at the Katsushika Environment
and Greenery Fair

Yoshihiro Yamane
President & CEO

43

MITSUBISHI GAS CHEMICAL COMPANY, INC.

A.G. International Chemical will close its doors in January 2015
after 47 years in the business, and in advance of this thecompany shut down production at its Matsuyama Plant inNovember 2013. Presently, we have stepped up our patrols andsafety assessments to ensure there are zero accidents and zero
occupational injuries during the time before our closure. Problems
found from this work are shared in regular meetings andimprovements undertaken. Employees are working closely
together on dismantling work while being fully considerate of thesurrounding community and environment.

Demolition work at the
Matsuyama Plant

MITSUBISHI GAS CHEMICAL COMPANY, INC.

44

Responsible Care and MGC
13 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

Fire fighting training

Kozo Tsukamoto

JSP Corporation’s goal is to carry out business activities
that satisfy and fulfill the trust of stakeholders as aninternationally competitive foamed plastic manufacturer
fully cognizant of safety and environmental matters. Our
foamed plastic products are being used for energy
conservation, resource conservation and environmental
preservation in many parts of our daily lives. Goingforward, we will strive to contribute to society as we
continue to pursue environmentally friendly foamed
plastic technologies.

First aid class led by an
instructor from the local fire
department

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
President & CEO

MGC Filsheet’s Tokorozawa Plant is situated near the
Sayama hills, home to the Totoro forest, while the Osaka
Plant is located by the Kanzaki River which once
flourished as a canal. At both sites, the company
continues its business activities rooted in the local
community that include the production of functional
sheet films. The company is working hard to roll out
activities aimed at achieving the goal of zero accidents
and zero occupational injuries. These activities include
enhanced training programs as well as safety inspections
and risk assessments performed voluntarily by each
workplace.

Disaster reduction training at the
Osaka Plant (lifesaving training)

Shigenobu Ono
President & CEO

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

Training on how to wear portable
air tanks

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/

Yuh Miyauchi
President & CEO

45

Eiwa Chemical Industry is contributing to energy
conservation activities such as lighter weight andinsulated products through its provision of chemical
blowing agents and related products. The company has
reinforced its sales sites in the United States andThailand and is seeking to expand globally. At the sametime, we are also working hard on environmental andsafety activities at home to maintain our core domestic
production front.

MGC Electrotechno has returned to the basics throughits 5S and ABC (faithfully carrying out regular and routine
activities without disregarding) activities. We are also
working hard on safety management and environmental
preservation efforts across a wide area of businessprocesses, from chemical processes to machinery
processing and clean room operations. Working closelywith the newly launched MGCETT (Thailand), our goal is
to become the world’s most foremost supplier of copper
clad laminate and the most trusted partner of ourcustomers.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

The agricultural studies classfrom a local high school setting
up a green curtain

Masanori Shimuta
President & CEO

As a manufacturer of synthetic resins, Toyo Kagaku is
carrying out safety and environmental activities toeliminate occupational injuries and promote resource
conservation. In terms of safety, we identify and work to
improve hazards uncovered in on-site patrols and we
encourage traffic safety as part of the nationwide
campaign for traffic safety held in Japan. In terms of theenvironment, we strive to reduce waste by improving ouryield rate for materials, and to conserve energy byadopting energy-efficient machinery.

Fire extinguisher training

MITSUBISHI GAS CHEMICAL COMPANY, INC.

46

Responsible Care and MGC
13 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/

Address: NOF Shin-Yokohama Bldg. 5F, 15-16 Shin-Yokohama 2-chome, Kouhoku-ku, Yokohama-shi,
Kanagawa 222-0033, Japan Tel: +81-45-548-4210
URL:
http://www.fudow.co.jp/e-index.html

Yasushi Hiramatsu
President & CEO

Disaster reduction training(lifesaving training for workers
suffering from oxygen deficiency)

Takahisa Furuya
President & CEO

Fudow is working toward full fixing of company-wide risk
assessments and of S-KYT that utilized Hiyari-Hatto[near miss] activities. New employees that were hired in2013 created a safety training video on their own andalso won the fire fighting skills competition organized by
the Fujinomiya City Fire Prevention and Safety
Association. The company’s plant is located in
Fujinomiya City, Shizuoka Prefecture. We are carrying out
environmental and safety activities that will help us tofoster a limitless culture of safety on a daily basis.

Winner of the 22th Fujinomiya
City Fire Fighting Skills
Competition

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/

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
President & CEO

Japan Circuit Industrial is located nearly in the center of
Toyota City in Aichi Prefecture, through which the YahagiRiver flows traversing the prefecture. The company
works together with local governments on a variety of
initiatives to preserve the environment. In June 2014 weachieved 10 million working hours without a lost time
injury thanks to risk assessments performed on safety
and health. In addition, we are fulfilling our responsibilities
to stakeholders through our BCP and compliancepractices.

Cleanup activity in thecommunity around thecompany’s business site

Kuniaki Ageishi
President & CEO

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 are working toeliminate human errors by strengthening communication,
implementing 3S activities, and encouraging the methodof pointing and calling out procedures. In terms of theenvironment, we are working to enhance our lineup of
biomass-derived products and reduce our CO2
emissions rate through implementation of the project todouble productivity.

A workshop held together withthe contractor prior to regular
maintenanceJapan 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

Yukio Sakai
President & CEO

47

Shin Sanso Kagaku was established in Tomakomai city in
1987 and today we are the only manufacturer of eco
friendly hydrogen peroxide in Hokkaido. Tomakomai is an
important port city that is surrounded by verdant naturalwonders, including Shikotsu-Tōya National Park andRamsar Convention registered wetlands. With safety andthe environment as our priority, we are endeavoring toensure stable production with zero accidents andoccupational injuries, achieved through risk assessments
and continual improvements in our energy consumption
intensity.

Japan Pionics believes that a fundamental aspect of its
CSR is achieving zero accidents and zero occupational
injuries. With this in mind, we are fostering a culture ofsafety in which all employees share the goal of achieving
zero occupational injuries through collective efforts andheightened awareness. Additionally, we carry out regularreviews to ensure our environmental management
system is functioning properly and with continuity, andwe make improvements when needed. We are also
actively involved in the local community.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Initial fire fighting response
training held at the Hiratsuka
Headquarters Plant

Yuh Miyauchi
President & CEO

Yonezawa Dia Electronics operates a system strongly
mindful of preventing pollution in the verdurous
Yonezawa area in accordance with the environmental
and safety policies of the MGC Group. We will raise thebar of our environmental preservation activities byachieving zero emissions through the systematic
upgrades and modifications to facilities. We will alsoachieve zero occupational injuries by heightening
awareness of safety and health among employees
through KYT, safety and health patrols, and 5S activities.

Earthquake evacuation training

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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