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

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

CSR Report

2016

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

Contents

Interview with the President

Editorial Policy

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

5
7

MGC Group and CSR(1) Starting with our Philosophy and
Behavior Guidelines(2) With an Eye to Our Vision for 2021
FY 2015 TOPICS

11
13
15

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

17
17
17
21
22

CSR Management
Corporate GovernanceCompliance and Risk Management23
24

Responsible Care and MGC
Environment and Safety Management
Results and Plans for RC Activities at MGC

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

33
34
34

Initiatives for the Prevention of Global Warming(MGC alone)
35
Reducing Chemical Substance Emissions(Domestic MGC Group)
37
Reduction of Waste (Global MGC Group)
Conservation of Water and Atmospheric
Environments (Global MGC Group)
Environmental Accounting (MGC alone)
The MGC Group Environment and
Safety Council

43

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

1

38
39
40
42

Safety Management of Chemicals and Products

MITSUBISHI GAS CHEMICAL COMPANY, INC.

The purpose of the CSR Report 2016 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. In particular,
efforts have been made in the MGC in Our Daily Lives
section to show at a glance how MGC’s products andtechnologies are used in the five target areas listed in the
mid-term management plan MGC Advance2017. In
addition, our vision for CSR activities based on ourphilosophy and initiatives and outcomes toward “Creating
values to share with society” are highlighted in the MGC
Group and CSR section. We openly welcome your honest
opinions and feedback about the contents of this report.
MGC stands firmly committed to promoting further
stakeholder engagement through the appropriate sharing
of information.

MGC Group will work collectively
together toward “Creating values toshare with society” to fulfill
the expectations ofcustomers and society

Toshikiyo Kurai
President and Representative Director

Scope of This Report

27
29

Occupational Health and Safety, Process Safety,
and Disaster Prevention
31
Environmental Impacts Accompanying
Business Activities (Domestic MGC Group)

About This Report

Interview with the President

Organizations included
All MGC offices in Japan. The activities of the entire MGC
Group and individual subsidiaries are also covered in certain
sections of the report.
Reporting period
April 1, 2015 through March 31, 2016 (includes some
activities after April 2016).
However, Responsible Care (RC) activities are included fromJanuary 1, 2015 – December 31, 2015 (includes some RC
activities after January 2016).

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

Publication Information
Date of publication: December 2016

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

Q1

First, could you provide an overview of
MGC Group’s business and explain its
growth strategy?

Q2

Could you tell us about the content of
MGC Advance2017 and progress in thefirst year?

A1

We will realize sustainable growth inpartnership with society by continuing tocreate products and technologies with value.

A2

In addition to achieving growth in bothsales and profit, structural reinforcement
aimed at future growth made progress.

MGC Group supplies creative products and technologies,
primarily in our four core business segments called the Natural
Gas Chemicals Company, Aromatic Chemicals Company,
Specialty Chemicals Company and Information & Advanced
Materials Company under the MGC Philosophy for Being,
which states “MGC contributes to societal growth andharmony by creating a wide range of value through chemistry.”
In order to realize sustainable growth on a global stage
into the future, we drew up a vision for the type of company
MGC should aim to become by 2021, our 50th anniversary,and formulated mid-term management plans aimed atachieving it. Since FY 2015, we have promoted MGC
Advance2017 as the third step for achieving our vision.
On formulating the current mid-term management plan,we established the Group Vision which states “Creating
values to share with society” as a guide for clarifying where
MGC Group is headed in the future, based on a considerationof business strategy from a long-term perspective. Under thisGroup Vision, which could also be termed the essence of the
MGC Philosophy for Being, we will supply value that is widely
welcomed and recognized by society.

The title of the mid-term management plan, which is MGC
Advance2017, expresses our commitment to turn the
results of the past three years into a definite move forward
or advance.

The Targets and Five Basic Strategies of
Mid-term Management Plan MGC
Advance2017
Target financial indicator values (FY 2017)• Net sales: ¥700 billion• Operating income: ¥40 billion• Ordinary income: ¥55 billion• ROE: 9%
Basic Strategies
1. Enhancing the profitability of existing
businesses, especially core businesses
2. Restructuring underperforming businesses
3. Developing and creating new businesses
4. Improving group-wide operational efficiency
5. Improving total enterprise quality in support ofsustainable growth

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2

Interview with the President

With regard to enhancing the profitability of existing businesses,
in addition to turning JSP Corporation into a consolidated
subsidiary in February 2015, MGC has pushed ahead toparticipate in the methanol and dimethyl ether production andsales business in the Republic of Trinidad & Tobago and in ashale gas and LNG project in Canada. Additionally, we havemade investment toward future growth, including boostingproduction capacity for various derivatives at the Niigata Plant
and Mizushima Plant and commencing construction of ageothermal power plant in Yuzawa, Akita Prefecture.
With regard to restructuring underperforming
businesses, we halted the operation of ammonia production
facilities at the Niigata Plant and made the decision toliquidate Japan Circuit Industrial Co., Ltd., a subsidiary that
manufactured and sold printed circuit boards. As a result of
these measures, consolidated financial results for FY 2015
outperformed the previous fiscal year on net sales, operating
income, and ordinary income. Although ROE (return on
equity), which has been added as a new consolidated
management indicator, declined to 9.0% from 12.6% in theprevious fiscal year, due in part to lower net income resulting
from a fall in extraordinary income, the target was achieved.

Q3
A3

Could you tell us about future initiatives
for creating new businesses, which isone of the central pillars of the mid-term
management plan?
In addition to clarifying the business areas
to focus on, we have pressed ahead withbuilding the framework to acceleratecommercialization, including externalalliances.

Under the mid-term management plan, we listed energy,
information/communications, mobility, medical/food, andinfrastructure as business areas to focus on in anticipationof social issues going forward. We are speeding up thecreation of new businesses to meet these future trends witha focus on providing new value.
In order to speed up the creation of new businesses, notonly “closed innovation,” but also “collaborative innovation”
with chemical manufacturers will be important. Therefore, wehave pressed ahead with building a framework forcollaborating with chemical manufacturers, becoming astrategic partner of Universal Materials Incubator Co., Ltd. thataims to create new businesses in the materials and chemicals
field in addition to establishing a joint venture company with
Nippon Kayaku Co., Ltd. for Japanese production of

3

MITSUBISHI GAS CHEMICAL COMPANY, INC.

monoclonal antibody pharmaceuticals including biosimilars.
In promoting these initiatives, there are many cases ofoverlap in the fields of new businesses and existing
business. Therefore, we established the Business Strategy
Division to take a comprehensive view of the entire business
in April 2016. Going forward, the Business Strategy Division
will coordinate determination of the department in charge
and the allocation of management resources to provide
support for the establishment of new businesses from aperspective of total optimization.
In addition, the QOL Innovation Center Shirakawa,which we announced we would establish last fiscal year as
a new site for development and manufacture of high value
added products, is scheduled for operation in February 2017.

Q4

Could you tell us about the approach togroup management?

A4

While working collectively to promotemanagement, MGC Group also values theindependence of each Group company.

As part of improving group-wide operational efficiency, oneof the basic strategies in the mid-term management plan,
the aim is to share and act on MGC management policies
across all Group companies to maximize corporate value
throughout MGC Group.
The key to this is the introduction of the Business
Management Unit (BMU), which regards business in which
there are strong ties between MGC and Group companies asa single unit. As a result, it is possible to develop and implement
unified strategies for each business and to achieve clarificationof where responsibility lies and greater operational efficiency.
In addition, our direction is shared through such bodies as

the Group Presidents’ Meeting. Going forward, we plan toestablish Group-wide performance indicators by FY 2018.
While working collectively in this way to promotemanagement, MGC Group respects the independence ofeach Group company and also regards an atmosphere thatencourages innovative value creation to be important. We
will seek to create new businesses and enhance the valueof the Group through synergies between the technologies
and facilities possessed by each Group company and thedevelopment capabilities of MGC.
MGC’s fundamental approach is growing together withothers, which not only includes Group companies but also
our joint venture partners and trading companies. Based on
this approach, we will promote the sharing of know-how,
technical collaboration, and exchange of human resources
between Group companies to speed up the generation ofsynergies going forward.

Q5

Could you tell us about your safety
initiatives?

A5

We are drawing on lessons learned from
two accidents to recognize the importanceof safety once more while working
together as a group to promote initiatives.

Under the safety philosophy that the top priority of ourbusiness is ensuring safety, MGC carried out Accident Zero
(AZ) Project from FY 2007. This has been followed by our
new safety project Bridge since FY 2014 as we seek toreinforce safety and on-site competencies. In conjunction
with this, MGC Group has been working together with thegoal of achieving zero accidents and occupational injuries
by sharing case studies of accidents and occupational
injuries as well as best practices at individual companies
through the MGC Group Environment and Safety Council.
Unfortunately, there was a chemical exposure accident at
the Niigata Plant in July 2015 and an explosion and fire at the
Kashima Plant in November the same year. Luckily, neither ofthese accidents resulted in serious occupational injuries ordirectly affected the local area. However, the press coverage
they received renewed our awareness of the major impactthat a single accident has on society. It is vital for every
individual staff member to recognize once more that the trust
built up over a long period of time can be lost in an instant.
Currently, we are further enhancing our safety activities
with a focus on Bridge. While naturally raising individual safety
awareness, we will also work to develop manuals and othermaterials on a group-wide basis, including outside Japan.

Q6

In closing, do you have a message forstakeholders?

A6

We will strive to enhance the economic,
social and environmental dimensions ofcorporate value by promoting the MGC
Group Vision which states “Creating
values to share with society.”

Our basic approach at MGC Group is to realize sustainablegrowth in partnership with society through management thatvalues prosperous coexistence with stakeholders, including
customers, business partners, investors, employees, andlocal communities with the aim of practicing the MGC Group
Vision of “Creating values to share with society.” In addition,
we operate our business in diverse local communities, and we
aspire not only to generate employment but also to contributeclosely to the community, thus raising our presence.
It is also relevant to improving total enterprise quality insupport of sustainable growth, which is one of the basic
strategies of the mid-term management plan, thatwithdrawal from and contraction of underperforming
businesses, continued from the previous mid-term
management plan, has been a “painful reform.”
The environment around us will experience dramaticchange going forward, so it is essential that we too continue
to evolve in order to achieve sustainable growth. Recognizing
this, we will regard change as an opportunity for theachievement of our vision. MGC Group will work hard to live
up to the expectations of its stakeholders for evolution andgrowth, and, at the same time, we will continue to welcome
honest feedback and requests from our stakeholders as well.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

4

Profile of Mitsubishi Gas Chemical (MGC): Company Overview

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

Businesses and Main Products — Operating Eight Businesses through Four Companies

Corporate Information (as of March 31, 2016)

Domestic Network

Company name MITSUBISHI GAS CHEMICAL COMPANY, INC.
Head office address Mitsubishi Building, 2-5-2 Marunouchi,
Chiyoda-ku, Tokyo 100-8324
Established
January 15, 1918
Incorporated April 21, 1951
Capital ¥41.97 billion
Number of employees
8,176 (consolidated), 2,344 (non-consolidated)
Number of consolidated subsidiaries 77
Main business sites in Japan
Branch Osaka BranchOverseas offices Shanghai Office, Taiwan Office
Research institutes
Tokyo Techno Park (Tokyo Research Laboratory, MGC Chemical
Analysis Center, Research and Development Center), Niigata
Research Laboratory, and Hiratsuka Research Laboratory
PlantsNiigata Plant, Mizushima Plant, Kashima Plant, Yokkaichi Plant,
Yamakita Plant, Naniwa Plant, and Saga Plant• Head Office• Yamakita Plant• Niigata ResearchLaboratory• Yokkaichi Plant• Niigata Plant• Naniwa Plant• Kashima Plant• Mizushima Plant• Tokyo Techno Park

• Saga Plant• Osaka branch

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

600,000

Ordinary income(Millions of yen)
120,000

593,502534,443

500,000

529,570

100,000

467,979

452,217400,000
34,01814,996300,000
9,083

200,000

45,43242,000

2011

2012

2013

2014

Net income attributable to owners of the parent/
return on equity (ROE)
Net income attributable to owners of the parent(Millions of yen)
50,00040,00030,00010,00034,134

2014

2015• SAUDI METHANOL COMPANY (AR-RAZI)6• SUZHOU MGC SUHUA PEROXIDE CO., LTD.

(FY)

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

Equity ratio(%)

600,000
500,000

47.3%

46.2%

47.5%

47.8%

51.0%

400,000
300,000

60
50
40

292,111294,895

323,858

422,448

423,135

200,000

30
20

100,000

10

0

0

2011

2012

2013

2014

2015

• PTM ENGINEERING PLASTICS (NANTONG) CO., LTD.
• SAMYOUNG PURE CHEMICALS CO., LTD.

-3

2013

• MITSUBISHI GAS CHEMICAL EUROPE GMBH

9

0

2012

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

12

3

-2.8%
2011

• MITSUBISHI GAS CHEMICAL AMERICA, INC.

• POLYXYLENOL SINGAPORE PTE. LTD.

5.0%

-10,000

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

• MGC PURE CHEMICALS AMERICA, INC.

• PT PEROKSIDA INDONESIA PRATAMA-7,7930

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

• MGC MONTNEY HOLDINGS LTD.

(%)

14,921

12,327
4.4%

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

• MGC ELECTROTECHNO (THAILAND) CO., LTD.

• MITSUBISHI GAS CHEMICAL SINGAPORE PTE. LTD.

9.0%

20,000

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

• MGC ADVANCED POLYMERS, INC.

• MITSUBISHI GAS CHEMICAL SHANGHAI COMMERCE LTD.

15

(FY)

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

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

Oxygen Absorbers Business

Return on equity (ROE)

43,346
12.6%

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

Electronics Materials Business• MGC TRADING (THAILAND) LTD.

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

Engineering Plastics Business• MGC PURE CHEMICALS TAIWAN, INC.

2015

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

Inorganic Chemicals Business

40,000

0

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

0

Aromatic Chemicals BusinessSpecialty Chemicals Company

60,00020,000

Energy & Resources Business• JSP INTERNATIONAL GROUP LTD.

80,00030,80427,651

26,116

100,000

11,488

11,421

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

Operating income

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

Financial Highlights (consolidated)

Natural Gas Chemicals Company• TAI HONG CIRCUIT INDUSTRIAL CO., LTD.
• TE AN LING TIAN (NANJING) FINE CHEMICAL CO., LTD.
• THAI POLYACETAL CO., LTD.
• THAI POLYCARBONATE CO., LTD.

Research and Development Strategy and Structure
MGC’s research and development
activities are divided into Company R&D
and Corporate R&D. Company R&D
assesses changing market needs, andbrings research laboratories and centers,
plant research and technology divisions
and marketing divisions together toundertake research and development inline with each company’s businessstrategy. Corporate R&D aims to create
new core businesses through theAdvanced Business Development Division
with a focus on research and development
centered on promising fields (See page 14)that leverage Group strengths from a
medium- to long-term perspective.

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

Niigata
Research
Laboratory

Catalyst
technology
Superacid
Solid catalyst
High-pressure technique

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

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

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

Compounding
technology
Oxygen absorber
Resin varnish
Electronics chemicals

Hiratsuka
Research
Laboratory

Biotechnology
Continuous culturing
Breeding

FY 2015.

5

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

6

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

Energy/Infrastructure

Mobility

Methanol

Shale gas and LNG

Geothermal power generation

Glycidyl methacrylate

Foamed plastic

Used in plastics, fibers, andpharmaceuticals as a basic
chemical, with diverse
applications for derivatives too.
MGC has methanol plants outsideof Japan, supporting much ofglobal demand.

As a new fuel, demand has
increased. In order to procure
raw fuel in a stable manner,
MGC is taking part in a shale
gas and LNG project in Canada.

MGC is developing clean geothermalenergy with low CO2 emissions
during generation and promoting
power generating projects.

Used in automotive topcoat paints.

Widely used in automotive interiors
and exteriors, including bumpers
and seats. Light-weight foam withhigh shock absorbing properties
has helped to enhance collisionsafety performance and improvefuel economy.

Metaxylenediamine(MXDA)
Used in structures suchas bridges, plant pipes,
and tanks to prevent
metal deterioration.

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

7

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Phthalic anhydrideand Isophthalic acid

Miscellaneous
engineering plastics

Used in plasticizing agents forsoftening PVC water pipes.

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

Polyacetal
Used in interior components andfuel pump modules.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

8

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

Information/Communications

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

Medical/FoodDrying and de-oxydation
agent (PharmaKeep)

MedicalSector

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

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

EL chemicals
Used during the manufacture ofsemiconductors.

Anaerobic culture system (AnaeroPack)

Peracetic acid (Diapower)

Epoxy printed wiring board(PWB) material

Used in microorganism testing at clinical labs to
speed up diagnosis and assist with research anddevelopment in the medical sector.

Used in the disinfectant andsterilization of medical devices
and equipment.

Highly reliable material used inmotherboards.

Food
SectorOxygen absorbers(AGELESS, AGELESS OMAC)
Absorbs oxygen in sealed containers to maintaina long shelf life, taste and freshness. Maintains
the quality of food and helps reduce wastage.

Miscellaneous engineering plastics

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

purified Isophthalic acid

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

Used in PET bottles.

Polyamide（MX Nylon)

special Polycarbonate(Iupizeta EP)
Used in camera lenses. Features
excellent optical properties, suchas high transparency and a highrefractive index, which contributes
to higher resolution cameras.

9

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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

Neopentylglycol

Heat-resistant polyester
resin (ALTESTER)

Hydrogen peroxide(Diapower HP)

Aromatic
aldehydes

Used in jello and othercontainers because it iseasily molded and is highly
transparent.

Used to clean and disinfectfood and beverage containers
contributing to longer shelf
lives at room temperature.

Used as raw material
for agriculturalchemicals.

Used in the outer film for PET
bottles.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

10

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

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

MGC Philosophy

Innovative Technology andResearch and Development

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

Management Philosophy
Management that creates an inspiring work environment and builds a
dynamic group with respect for motivations and abilities
Marketing that expands and creates markets, with an eye on theworld to capture its needs
Creative research and development that deeply understands needs
and refines the seeds that will grow success
Production activities that strive for technological improvement,
environmental conservation, safety, and better products
An open corporate culture for shared goals and individual growth

Principles of Conduct
As a Professional Group
1. Courage unafraid of change
2. Aspiration toward lofty goals
3. Perseverance toward achieving goals
4. Communication to broaden rapport

Safety Philosophy
The top priority of our business activity is ensuring safety.

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

Environment-related expenses in
R&D (FY 2015)
For environmentally friendly products

2

Product Development to
Meet Social Needs
Product varieties
Approx.

140

Offering Highly Safe and Reliable
Products and Services toEnhance Customer Satisfaction

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

For environmentally friendly
production methods

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

1

Customer companies

billion yen

See page 6 for Research and Development Structure

Approx.

Promoting Fair and Appropriate
Transactions
Suppliers
Approx.

2,500(domestically)

See page 17 for Together with Our
Business Partners

13,000(domestically)

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

See page 17 for Together with Customers

Creating Safe andComfortable Workplaces
Employees (consolidated)

8,176

Appropriate Information
Disclosure and Dialogue

See pages 17-20 for Together with Employees

Promoting Social
Contribution Activities

Shareholders

24,171
See page 22 for Together with Shareholders
and Investors

Donations of chemistry experiment kits
Approx.

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

Contributing to Conservationof the Global Environment
CO2 emissions reduction*1

21% (over FY 1990 levels)

Chemical substance management andair pollutant emissions*2

45

Strengthening the CSRManagement System
Employees receiving grade-specific training

240

(MGC)

See page 23 for Corporate GovernanceSee pages 24-26 for Compliance and Risk Management% reduction (over FY 2010 levels)*1 GHG emissions intensity (CO2 equivalent) *2 PRTR substances

See pages 27-46 for Responsible Care and MGC

11

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

12

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

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

MGC Group’s Strengths
Unique proprietary
technologies

Global marketing structure

Development structure tomeet customer needs

Wide range of businesses

Strong relationships
with leading clients

Production system consistingof multiple locations

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

Semi-Core Businesses

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

MXDA & MX Nylon/Foam

Aromatic aldehydes

Specialty
Chemicals Segment

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

Polyacetal

Information & Advanced
Materials Segment

BT materials/AGELESS

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

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

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

4 Improving group-wide operational efficiency

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

Maximize corporate value through group management action.

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

13

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

14

FY 2015 TOPICS

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

Expanded PQQ, a Coenzyme in Focus as a Health Food Ingredient,
into the Japanese Market
In October 2015, MGC began full-scale sales in Japan ofpyrroloquinoline quinone disodium salt (“PQQ”, productname: BioPQQ), which is a new dietary ingredient.
MGC leads the world in elucidating the actions of
PQQ on the living body, and has discovered aneuroprotective action, enhancement of nerve growth
factor, an antioxidant action, and mitochondria biogenesis,
among others so far in joint research with universities andresearch institutions inside and outside Japan. In particular,
in terms of its effects on improving brain functions, it has
been shown in human studies to enhance memory andcognitive abilities which form part of the cognitive function.

As an ingredient that is also eligible for Foods with
Function Claims notification, it is expected to be used infoods to meet demand from an aging population.
Following approval in the U.S. in 2008, a decision
approving use in food was received from Japan’s Ministryof Health, Labour and Welfare,and MGC began sales of PQQ
in Japan. Going forward, we
will expand sales of PQQ in theJapanese market and develop
the product as a new focus of
PQQ powder
the life science business.

Developed the World’s Highest Refractive Index Lens Material to
Realize Lighter, Thinner Lenses for Eyeglasses
Lighter, thinner plastic lenses are required for eyeglasses.
The key to this is the refractive index of the lens material,
and the higher the refractive index, the thinner the lenscan be made.
As the manufacturer with more than a 50% share of
the global market for ultra-high refractive index ophthalmic
lens material (lens monomer) with refractive indices of
1.70 or higher, MGC is pursuing even higher
specifications. At present, the refractive index of theleading ultra-highrefractive index plastic
lens is 1.74 and thatof the highest
Lens with the world’s highest refractive index
ultra-high refractive
index lens material (MGC’s) is 1.76. However, in
December 2015, MGC successfully developed a material
with a refractive index of 1.80, the world’s highest for aplastic lens.

Ordinary lens (optical power: -5.00)

Latest lens (optical power: -5.00)

1.1mm

1.0mm
4.6mm

6.1mm
Refractive index: 1.60

Refractive index: 1.80

Developed Mass Production Technology for LiBH4-based Solid-stateElectrolyte to Assist with Greater Lithium Battery Capacity
In January 2016, MGC developed a mass production
technology for solid-state electrolyte for lithium secondary
batteries using LiBH4 (lithium borohydride) jointly with Tohoku
University’s Advanced Institute for Material Research(AIMR) and Institute for Materials Research. The solid-stateelectrolyte is a material with a theoretical capacity at least
ten times that of current lithium batteries, which Tohoku
University has successfully developed to date.
All solid battery using LiBH4

15

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Exhibited Plastic Container for Injectable Drugs in Europe andU.S. Expected to be Glass-Alternative Container
MGC developed OXYCAPT, a multilayer-plastic container
for injectable drugs. As the world’s only plastic container
with a glass-like oxygen barrier, it is expected to be used
for injectable drugs that are sensitive to oxygen such as
bio-drugs. We exhibited the plastic container at
exhibitions held in three countries in Europe and North
America in autumn 2015, and it attracted attention.

OXYCAPT vial

OXYCAPT syringe

Commenced Work to Boost Production Capacity for GMA,
Raw Material for Automotive Top Coating
MGC is carrying out work to boost production capacity
for glycidyl methacrylate (GMA) at the Niigata Plant
which it aims to complete in September 2017. GMA isprimarily used as a raw material for automotive top
coating, and its use in acid-epoxy based paints, which
are resistant to acid rain and scratching, has increased
since the 1990s. Going forward, in addition to the
expected increase in global automotive production, useof GMA is increasing in modifiers for engineering plastics,
adhesives and other coating materials.

Niigata Plant

Promoted Commercialization Projects for Geothermal Energy
in Akita, Hokkaido, and Iwate
MGC is promoting exploration/development and power
generating projects for geothermal energy, which is arenewable energy source.
In May 2015, we began the construction of the
Wasabizawa geothermal power plant in Yuzawa City, Akita
Prefecture in a joint venture with Electric Power
Development Co., Ltd. and Mitsubishi Materials Corporation.
In June the same year, we conducted a short-term flow
test*1 on the geothermal exploratory well in the Musadakearea in Shibetsu Town, Hokkaido, which we have beendeveloping in a joint venture with Japan Petroleum
Exploration Co., Ltd. and Mitsubishi Materials Corporation.
We confirmed 26 tons of steam per hour and 16 tons of
hot water per hour*2. Moreover, in October 2015, weestablished Appi Geothermal Energy Corporation in a joint
venture with Mitsubishi Materials Corporation with the aimof commercializing geothermal power generating projects

in the Appi area of Hachimantai City, Iwate Prefecture, andhave begun the environmental impact assessment.
MGC will continue to promote the commercializationof geothermal energy, which is a clean, all-Japaneseenergy source that can provide a stable supply of power
without being affected by the weather or the seasons.
*1: Short-term test held to confirm steam and hot water from the well
*2: The amount measured on June 25, 2015

Flow test during NEDO survey in Appi area Musadake SMMG-2D wellshort-term flow test

MITSUBISHI GAS CHEMICAL COMPANY, INC.

16

Stakeholders and MGC

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

audits of our partner companies from the standpoint ofcompliance and to build more positive, lasting relationships.

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.
If problems related to the Product Liability Law occur,
the designated staff person in charge of complaints at each
Company will work with the business division in question,
the production divisions, research divisions, or logistics
divisions, and investigate the source of the problem.
At the same time, the designated staff person in chargeof complaints reports to the Product Liability Committee sothat the committee can implement company-wide preventive
measures. Additionally, until now problems related to the
Product Liability Law have not occurred at MGC.
In addition to these company-wide activities, we arealso striving to raise customer satisfaction in eachparticular business division.

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

Compliance with the act against delay in paymentof subcontract proceeds, etc. to subcontractors
All of our business transactions with business partners arein full compliance with the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors. Every year
we check the entire company for compliance with thisimportant law. We have also created a check sheet to verify
the applicability of this law during new business transactions
and regularly hold in-house training sessions on the law toensure complete compliance. In FY 2015, we improved
our purchasing system in order to be even more certain ofengaging in the appropriate issue of orders.

Employees who are foreign nationals(People)We are working closely with theshipping providers of our partnercompanies to ensure safety duringtransportation, to enhance logistics
quality, and to carry out a modal
shift. Additionally, we also carry out

Together with Employees

17

MITSUBISHI GAS CHEMICAL COMPANY, INC.

*Excludes forwarded employees

8

8

7

6

Respect for human rights
At MGC, we strictly adhere to our Corporate Behavior
Guidelines and MGC Code of Conduct, to respect individual
personality and human rights, to not hurt anyone bydiscriminating 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 andmanagers to raise awareness of human rights among all
employees. Our Code of Conduct also articulates that sexual
harassment and power harassment are prohibited. We arecommitted to preventing them within our company, andreinforce this principle through training 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.

5

4

4

5

2

1

1

1

1

2011

2012

2013

2014

1

0

2015 (Fiscal year end)

Re-employment of retirees
The re-employment rate for retirees has reached 100% forseven years in a row from FY 2009 to FY 2015 as a resultof our retiree re-employment scheme. Providing theopportunity for re-employment to all employees who
desire it and their continued work contributes to creating avibrant workplace.
Re-employment of retirees(People)
80
60

100.0

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

100.0

100.0

100.0%

(%)

2,000

100.0

100

1,500

42 42

39 39

44 44

47 47

2013

2014

We are putting effort toward creating an environment that
respects diversity and enables our employees, who themselves
are diverse individuals, to display their unique capabilities andapproach work with a sense of purpose and meaning.
More active role for women
We have prepared an action plan ending in FY 2021 that targets
a four-fold increase in the percentage of female managers overFY 2015. Under the action plan, we are implementing measures
to support career development and working to enhancesystems that assist with balancing work and family life.

2012

Number of managers*Excludes forwarded employees (People)

200

231

210

206

225 9

150
100

4

10

224

8

8

2015

6

5

4

50

2

0

0

2011

2012

2013

2014

2015 (Fiscal year end)

1861.4

2011

2012

2013

2014

2015

(FY)

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

Employment of people with disabilities
MGC’s employment rate for people with disabilities was
2.26% as of the end of FY 2015, which exceeded thelegally mandated rate of
2.0%. We will continue
working to create aworkplace environmentthat allows people withvarious disabilities to
Employee with a disability at work.
display their capabilities.
Employment rate for people with disabilities(as of March 31, 2016)(%)
2.5

1856.40(FY)* Fiscal year = end of September + end of March

2.16

2.13

2.22

2.18

2.26%

2011

2012

2013

2014

2015

2.0

1860.7500

Number of female employees/managers (non-consolidated)
Female employees(People)1865.9

1,000

0

2011

1868.250

20

Promoting diversity

Efforts to reduce working hours
Total working hours were 1,861 hours per employee in FY
2015. In order to reduce working hours, we are making
efforts that include establishing a no-overtime day andmeasures to encourage employees to take their annual
leave through such groups as the Shorter Hours
Committee established by labour and management.

Re-employment rate

56 56

40

We have introduced a flextime system with the aim ofrealizing work-life balance. We have also established asystem for accumulating annual leave (up to 40 days) for
effective utilization of otherwise expired annual leave as wellas various types of special leave, including leave for marriage,
bereavement, a spouse giving birth, work transfers,
volunteering, donation, and self-care. In FY 2015, usage ofannual leave was 91.3%. We have maintained a high rate ofannual leave usage for many years, and a climate thatmakes it easy to take annual leave has been created.

Re-employed workers

Workers desiring re-employment

07

Safety education at thefirst delivery due to ourmodal shift.

Number of managers

10

250

Working with partner companies

Work-life balance

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

1.5
1.0
0.5
0
(FY)

(%)
100
80

84

87

87

91

91%

2011

2012

2013

2014

2015

60
40
20
0
(FY)

Childcare and nursing care
We have established a system for child care that exceeds
the statutory requirements, including childcare leave until achild reaches two years and one monthand a system of shorter working hours
until a child enters elementary school.
We have achieved a 100% return towork after childcare leave for five years
in a row. In FY 2016, we added fertility
treatment to the intended uses ofaccumulated annual leave and prepared
Pamphlet on oura pamphlet on our childcare systems.
childcare systems
MITSUBISHI GAS CHEMICAL COMPANY, INC.

18

Stakeholders and MGC

We have established a system that exceeds thestatutory requirements for nursing care leave. This includes
allowing a maximum of one year, which can also be split.

5
(1)

6

4

4

7
7 (0)

9
(1)

6
6 (0)

8

2013

2014

8
8 (1)

2
0

2011

2012

2015

(FY)

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

(People)MGC’s human resource development

20
15

14

10

8

10

13

15

5
0

2011

2012

2013

2014

2015

(FY)

* Number of users during the FY

Employees taking nursing care leave(People)
3

2

2

1

1
0

0

2011

2012

2013

2014

2015

(FY)

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

Development of human resource capabilities
In order to create an environment for each employee toachieve individual goals, we are working to enhance selfdevelopment programs for each rank and sector using tools
such as skill-development training and distance education.

Number of labor union members (as of December 31, 2015)(People)
2,500
2,000

1,999

1,981

1,998

1,971

1,926

2011

2012

2013

2014

2015

1,500
1,000
500
0
(FY)

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

• Language qualifications and language training(includes English, other languages, andtheme-specific training)• Management and business skills• Finance, accounting and tax• Basic chemistry and basic safety technology• Other communications training

Male

FemaleTotal

Average age

41 years old
and 5 months

39 years oldand 10 months

41 years old
and 3 months

Number ofyears worked

18 yearsand 4 months

16 yearsand 10 months

18 yearsand 2 months

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

OJT

0

0

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.

• Global human resource development training• Technology networking events(production, research and engineering departments)• Patent study sessions(research promotion departments)• Safety and health-related training for each worksite• Safety and health, environmental management,
quality control-related training• Other specialized education and in-house seminars

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

Employee tenure (as of March 31, 2016)
Self-education

Number of employees taking nursing care leave

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.

Occupation anddepartment-specific training

Number of employees using reduced working hours forchildcare

Managerlevel

Junioremployees• New recruit training• New recruit follow up training

8

GeneralManagerlevel

Mid-level
employees• Mid-level employee training• Career development training

10

Managementgrade

Grade-specific training(People)MGC company-wide education and training system• Beginner manager training• Manager training

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

It is important that our employees maintain their physicalhealth, and at MGC we have implemented programs toensure mental healthcare as well. The Employee Assistance
Program (EAP) is one of these, in which employees canfreely 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. In FY 2015, we promoted the creationof a framework for the effective implementation of stresschecks, which have been made mandatary under Japan’s
Industrial Safety and Health Act.
We also conduct mental health training during
sessions designed for new employees and employees
receiving a promotion.

• Organizational
management training

Maternity leave

Care for mental health• Practical OJT training(People)100
80

Retention
(%)

100.0

98.9

88

87

94 96

94

98.4%

97.9

95.8

100

95

92 97

80

64 63

60

60

40

40

20

20

0

0

2010

2011

2012

2013

2014

(FY hired)

Turnover(People)
40
30

35
25

20

20

26

23

10
0

2011

2012

2013

2014

2015

(FY)

* Number of regular employees and those retiring at their own accord(including completion of leave of absence period, support changing job
type, and excluding job transfers)

19

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

20

Stakeholders and MGC

Together with the Community

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

Response to the Kumamoto Earthquake
We express our heartfelt sympathty to all thoseaffected by the April 2016 Kumamoto Earthquake.
MGC provided approximately 10,000 servings ofprocessed fruit products with a long shelf life thanks
to the use of deoxygenated containers (AGELESSOMAC) to the area affected by the earthquake.
We will continue
making efforts tocontribute to the
local community
while hoping for thereconstruction of theaffected area as soon Providing processed fruit products
to the affected area
as possible.

Participating in local traffic safety
campaign (Yokkaichi Plant)

Blood donation drive (Niigata
Research Laboratory)

Initiatives for the next generation
We are working to promote an interest in chemistry at
educational institutions in the communities surrounding ourbusiness sites to develop the next generation. For example, wehost student visits and internships involving local junior highschools, high schools, technical junior colleges and universities
as part of commitment to help develop the next generation.
Since 2008 we have provided junior high schools near ourfacilities with chemistry kits to make their own pocket heating
pads. These kits help students understand the oxidation of iron,which generates heat and makes the pads warm. We provided
approx. 10,000 kits to 90 schools in Japan in FY 2015.

Interaction with local communities
Supporting NPOs through provision of disastersupplies
MGC stores a certain volume of food and drinking water at
the company to prepare for a disaster. We replace thesedisaster supplies within the best before period and provide
them to NPOs, thus supporting their activities. The
disaster supplies that we provided in the February 2016
replacement were
donated through NPOs
to orphanages for the
food and mainly tochildren in Fukushima
Prefecture for thedrinking water.
Providing disaster supplies to NPO
Beautification activities in the local community
At each of its sites, MGC participates in cleanup activities
for roads, nearby riverbeds, and other areas.

Cleanup for floodplain of Takahashi
River (Mizushima Plant)

21

Tree planting for the Sagami River(Hiratsuka Research Laboratory)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Hosting a student visit from local highschool students(Mizushima Plant)

Holding a panel exhibition to make thepublic aware of natural resources
produced in Niigata
MGC, which is engaged in the development of natural
gas resources in Niigata Prefecture, held a panel
exhibition with TOHO EARTHTECH, INC., an MGC
Group company, from May 27–29, 2016 to make thepublic aware of natural gas dissolved in water andiodine, two local products deep beneath the groundof Niigata. The theme of the exhibition was “Turning
ancient underground water into Niigata’s advantage.”
The exhibition featured a range of chemical
products that use natural gas and iodine as raw
materials, ancient seawater pumped from 1000m
underground, a model of geological strata, and amodel of the re-injection system of all produced
water which allows production without causing
ground subsidence. In addition, people attending theexhibition were able to deepen their understandingof natural gas dissolved in water and iodine using aquiz format. We also exhibited 3D art which
reproduced the subsurface geology.
Approximately 3,500 people visited during theexhibition period and made such comments as, “I
didn’t know that there are these kind of resources
underneath Niigata,” and “I hope it leads to thedevelopment of industry in Niigata.”

Chemistry experiment kits

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

Local dialogue meeting on
Responsible Care for the Niigata
north district (Niigata ResearchLaboratory, Niigata Plant)

Disaster preparedness drill(Kashima Plant)

Basic policy on profit distribution
MGC places the improvement of corporate value throughbusiness expansion and growth as a challenge of thegreatest importance, takes into consideration investment
and lending plans, financial health, and future businesstrends in order to realize future business growth, andworks to achieve an optimal allotment of retained earnings
and returns to shareholders.
Regarding dividends, the decision to continue
steady dividends is made taking into account trends inbusiness results.
In addition, MGC’s basic policy on the repurchase of
its own shares is to consider the market environment, etc.
while conducting such purchases in a flexible manner inorder to enhance returns to shareholders and improve
capital efficiency.
The annual dividend for FY 2015 was ¥16 per share,
an increase of ¥2 per share. In addition, MGC conducteda repurchase of its own shares in May 2016 totaling 10
million shares for ¥6,253,180,000.

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 as well as posting theinformation on the company website before sending theconvocation notice to give shareholders more time toconsider what to vote. We also translate the convocation
notice and other documents into English and haveadopted an electronic voting platform in order to improve
convenience for shareholders.

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

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

Composition of shareholders (as of March 31, 2016)
Individuals
and others
19.2%
Foreigninvestors
31.2%
Other companies
in Japan
10.1%

Financial
institutions
38.0%
Securities
companies
1.5%

MITSUBISHI GAS CHEMICAL COMPANY, INC.

22

CSR Management

Corporate GovernanceCompliance and Risk Management

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

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

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

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

Overview of Corporate Governance
Structure
For the sake of appropriate management supervision andcounsel from an external perspective, and to raise ourmanagement transparency and fairness, MGC appoints
two outside directors. Our management structure as ofJune 30, 2016 consists of 12 directors, including two
outside directors, and 24 executive officers (including
people who concurrently serve as directors).
Any important matters affecting MGC are to bereviewed and decided with a broader perspective at theManagement Council where management policy may be
Corporate governance framework

General Meeting of Shareholders

Board of Directors

Auditing

Audit & Supervisory Board
Audit & Supervisory Board members
Auditing

Compensation and Nominating Committee
Election/Dismissal

Auditing/Supervision

Business Execution

Ad hoc organization

Election/Dismissal

Independent Auditors

Inspection/Reporting/Auditing

ChairmanPresident

Main committees related to internal controls

Internal Control Promotion Committee

Crisis Response
Headquarters

Compliance Advisory Committee
Management Council
Operations Council

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

23

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MGC compliance structure
Board of Directors

Compliance at 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 tosociety as a group of companies. Based on thisunderstanding, we have summarized the actions to be taken
by executive officers and employees in the “MGC Corporate
Behavior Guidelines” and the “MGC Code of Conduct” andwe make revisions to these guidelines and code of conduct
as necessary based on changes that take place in society.
To ensure thorough compliance across the entire MGC
Group, we distribute the “MGC Compliance Handbook” toall of our employees in Japan. For overseas
Group companies, we also created English,
Chinese and Thai language versions of the“MGC Corporate Behavior Guidelines” andthe “MGC Code of Conduct” to ensure thephilosophy of MGC Group is made known to MGC
complianceand practiced by all.
handbook
MGC compliance concepts
Compliance Regulations

Report (as required)

President

Audit & Supervisory
Board

MGC Corporate Behavior Guidelines
Toward a more concreteStandard of Conduct
MGC Code of Conduct

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

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)
ReportInternal contact
desks

External contact
desks

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

Compliance attorneys(Contracted attorneys’ office)Compliance System
Election/Dismissal

Crisis Management

MGC Group ComplianceContact

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 ensure transparency, objectivity
and appropriateness in the processes for determining
compensation for directors and executive officers andthose for determining the nomination and election of
directors, Audit & Supervisory Board members, andexecutive officers, proposals on compensation and theappointment of officers are reviewed by the Compensation
and Nominating Committee composed of the Chairman,
the President and the outside directors before submission
to the Board of Directors.

Basic Approach to Corporate GovernanceConsultation andnotification

Inspection
requests

Consultation andnotification

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

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

24

CSR Management

Committee decides on necessary rectification orrecurrence prevention measures after investigating therelated facts. Investigation results and the details of saidmeasures are also reported back to the party responsible
for the consultation or report.

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 2015, we chose specific items of timely naturefrom among the 40 different types of legal compliancetraining materials contained on our intranet. These items
were provided to employees, through our e-learning system.
Given rising need to respond to compliance issues,
such as cartel involvement or illegal payoffs, at Group
companies affiliated with ouroverseas businesses in emerging
countries and other locations,
MGC is also working to enhance
the quality of its compliancetraining for staff that are
dispatched as officers to
Screenshot from theoverseas affiliates.
e-learning system

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

Risk Management Committee

Members: Heads of each corporate division
General Manager of the 4 Companies
Others designated by the Committee Chairperson
Observers: Audit & Supervisory Board members

Risk Management in MGC Group

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2. To upgrade risk management at Group companies
inside and outside Japan.

Wireless communication device for
emergency use

Chairperson: Chief Risk Officer

Secretariat

25

Among the risks that accompany our business activities,
we have identified earthquakes, toxic or hazardous
substance leaks, fire and explosion, and information leaks
as four that must be handled with priority on acompanywide basis. Our workplaces are also examining
countermeasures related to these priorities.
In FY 2015, we actively pursued major annual policy
points that included those listed below.
1. To continue carrying out independent andautonomous risk management activities for identified
risks and improve the quality of risk management.

Risk
Supervising
Departments

Risk Related
Departments

Risk
Supervising
Departments

Risk Related
Departmentsin the company to remain in offices for at least three days.
In FY 2015, MGC progressively carried out seismic
reinforcements, steadily moved forward with responses tobuildings which are old and have a greater potential of
causing injuries should a major earthquake occur, whichwere found as a result of the earthquake resistanceassessments conducted up until last year. Additionally, we
increased the plants covered in the examinations into
improving plant-wide seismic performance, including
manufacturing equipment, at the model plants which we
conducted in the previous fiscal year.
Going forward, we will continue efforts to review theeffectiveness of measures through exercises and drills
related to disaster prevention and business continuity tostrengthen our preparation for a large-scale natural disaster.

3. To continue subcommittee activities throughsetting of independent issues (including efforts
aimed at completing seismic reinforcement ofbusiness site buildings)(Division in charge of General Affairs)

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

Risk Management Committee’s Annual
Plan for FY 2015

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

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

Major Initiatives in Risk Management
Activities
Measures against major natural disasters
MGC has deployed company-wide a safety confirmation
system to cope with a major natural disaster such as anearthquake directly below the southern part of Tokyo, which isassumed by the Cabinet Office to be a possible occurrence.
In addition, we have provided offices with emergency devices,such as wireless communication devices, so as to enablecommunication among workplaces even when regulartelephone communications become disabled or restricted.
Furthermore, as part of our BCP, we conduct
emergency training sessions using these systems andequipment each year, so that even if headquarters
becomes paralyzed due to a major natural disaster, eachof our facilities such as plants and research centers may
continue supporting customers and maintaining otherservices, supplementing the headquarters’ function.
We also are pushing forward initiatives for first
responder training at each workplace, as well as gatheringstocks of reserve supplies. To cite examples of otherinitiatives, we have planned for scenarios in which working
employees and guests visiting MGC face difficulties
returning to their homes after a disaster. We have stocked
food, drinking water, and other materials to allow persons

Disaster reserve supplies

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

Risk management of group companies
As a risk management measure including Group
companies, we are carrying out requests for enhanced risk
management, while also exchanging information afterinvestigating on each company’s initiatives and practices.
In FY 2015, we promoted a review into upgrading risk
management at Group companies given the increasingneed for internal control as a corporate group. As a result,
we decided to further strengthen PDCA cycles throughmutual collaboration between Group companies and the
MGC department that supervises the particular companies.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

26

Responsible Care and MGC

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

Message from the Director in Charge of Environment and Safety
MGC is continuing its initiatives under the RC Medium-Term Plan 2017, established last year, to foster aculture of safety and achieve zero occupational injuries and accidents. Over the past several years wehave improved our safety performance by pushing forward with initiatives in working groups at each

The MGC Group Policies on Environment and Safety

plant and undertaking initiatives aimed at improved communication, upgraded equipment, andenhanced on-site competency. However, in 2015 a chemical exposure accident occurred at the Niigata
Plant in July and an explosion and fire in hydrogen peroxide production equipment at the Kashima Plant
in November. Our company deeply regrets the concern and trouble placed on nearby residents and to

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

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

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

stakeholders. While the incidents fortunately resulted in no personal injury or damage to theenvironment, they reaffirmed the magnitude of the social and managerial impact of accidents, andcaused us to deeply feel our responsibility in the matter. To ensure that such accidents do not happen
again, the Company is working as one to reevaluate the essential hazardousness of chemical
substances, perform risk assessments at business sites, and take measures to address areas of danger
and hazardous processes. In terms of the environment, we are continuing our efforts to set and meet

Kenji Inamasa

the numerical targets in reduction of emissions of chemicals, reduction of industrial wastes, and energy

Senior Managing Executive Officersaving measures. As a result, we have been able to cut the amount of PRTR substances and VOCs.
Under the safety philosophy that the top priority of our business activities is ensuring safety, we will continue to execute our RC Medium-Term Plan
2017. Doing so, we will aim to be a “superior and distinctive chemical company” as we continue our initiatives toward safe and secure production.

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

Process Safety and Disaster
Prevention■	Reduce energy consumption intensity to below 85% of the FY 1990 level.

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

sheets).
Chemical and Product Safety

June – October, 2015
Director in charge of environment and safety

Environment and safety meeting

Administrative divisions

MGC Group Environment
and Safety Council

Companies

Business divisions
Planning and development divisions

GHG task force
Responsible Care audit

PlantsEnvironment andsafety departments

Audit of certified
high pressure gas plants

Researchlaboratories

Environment andsafety departments

Environment andsafety inspection

Corporate headquarters

5 plants, 3 laboratories (including Tokyo Techno Park),business divisions of 4 segments, Purchasing &Logistics Center■ Audit findings
Full conformity (31 cases) Non-conformity (no cases)
Improvement orders (8 cases) Comments (36 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)

Environment andsafety manager meeting

RC Audits in 2015

■	Risk management for handled chemical products.

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

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

27■ Audit period■ Auditees

President■	Adopt and operate the safety competency assessment system of the Japan Society for Safety Engineering.

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

In 2015, we audited the status of 1) progress inactivities (Bridge) to eliminate accidents, 2) partnercompanies’ initiatives to prevent occupational injuries, 3)
implementation of measures to prevent recurrence of past
incidents, 4) implementation of countermeasures for
medium-scale accidents and disaster reduction training
incorporating these, 5) operation of reagent management
systems, 6) conformity with the Act on Rational Use andProper Management of Fluorocarbons, and 7) initiatives
related to the prevention of falls.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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

RC audits (Niigata Plant)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

28

Responsible Care and MGC

Results and Plans for RC Activities at MGC: Achieved

RC Medium-Term Plan
2015–2017

Occupational Healthand Safety

Process Safety andDisaster Prevention

Assessment

2016 RC Action Plan

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

1 We steadily undertook hazard prediction activities prior to work, Hiyari Hatto (near-miss) incident identification
activities, and thorough 5Ss activities, including in unsteady situations.
2 Through patrols by plant managers, get-togethers with section chiefs, and other actions, we worked to enhancecommunication within business sites.
3 We carried out surveys of understanding concerning troubles, analysis of trouble diaries, checks of the effectivenessof past measures, and analysis and communication of major Hiyari Hatto (near-miss) incidents, and worked tocommunicate these horizontally across the company.
4 We built a framework for exchanging information among business sites and partner companies, strengthened patrols,and enhanced mutual interaction among Occupational Health and Safety Committee members and safety education,
including education on entering plants.
5 As a part of PL education, we explained MGC’s risk assessment methods and control banding methods at eachbusiness site, and held workshops as well. Every business site is moving forward with preparations to adapt to
MGC’s methods and control banding methods; some have already begun implementation.

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

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

1. We established safety and disaster prevention subcommittees at all plants and promoted Bridge activities.
At the Bridge leader conference, we exchanged accident case studies from business sites, along with ideas concerning safety
information. We are now exchanging ideas on future Bridge activities. We held company-wide improvement presentation
meetings to horizontally communicate environment and safety awards and other best practices from business sites.
2. We prepared a list of themes for improvement following self-evaluations at the Mizushima Plant, and pursued
countermeasures. We completed evaluations in a manufacturing division at the Niigata Plant (No. 5 Chemicals
Section) and are undertaking the activity at other manufacturing departments.
3. In accordance with the Safety and Accident Prevention Guidelines, we have completed identification of risks similar to
the three major accidents in unsteady situation risk assessments, and are pursuing countermeasures. Some businesssites have begun initiatives toward unsteady situation risk assessments to further enhance comprehensiveness.
4. Committees related to education have evaluated educational activities, and are operating the PDCA cycle with respect to safety
education. To improve operations and our emergency response capabilities, we are converting standards manuals to “KnowWhy.” Some business sites are investigating initiatives to improve operational skills and the adoption of operation simulations.
5. We carried out surveys of understanding concerning troubles, analysis of trouble diaries, checks of the effectivenessof past measures, and analysis and communication of major Hiyari Hatto (near-miss) incidents, and worked tocommunicate these horizontally across the company.
6. We planned drills that simulate medium-scale accidents (i.e., the occurrence of accidents at multiple locations). Afterrunning the drills, we plan to identify issues and conduct reviews, including of the framework.
7. We are conducting equipment management according to MOSMS* priority. In particular, as leaks occurred at the
Niigata Plant due to external corrosion and other equipment faults, we reviewed relevant frameworks, launched aworking group, and began investigations.
8. We referred to OSHA*/PSM*, safety platforms (safety competency assessment systems), Safety and Disaster
Prevention Guidelines (JCIA), and the Safety and Accident Prevention Guidelines and came up with a list of items andare creating a checklist.

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

1. Reduce energy consumption intensity to 85% or lower of the FY 1990
level.
•	Implementation of energy saving measures and reduction ofequipment problems
2. Reduce greenhouse gas emissions intensity to 72% or lower of the FY
1990 level.

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

1., 2.	Our FY 2015 energy consumption intensity was 95% that of FY 1990, the same as in FY 2014. Greenhouse gas(GHG) emissions intensity was 79% that of FY 1990, a 3.1% improvement from the previous year.
	We implemented over 60 measures to reduce energy consumption, including effective use of heat from waste gas andwarm wastewater, strengthening of in-house power generation using excess steam, reduction of heat usage in purifying
equipment, reviewing the fuels we use, switching to LED lighting, and adoption of new energy-saving equipment.
	These measures yielded an energy conservation effect equivalent to 16,000kL of crude oil, and a greenhousegas emission reduction effect equivalent to 76,000 tons of CO2.

Undertake social contribution through the environment, while
continuing to reduce environmental impacts.
1., 2.	Improve our energy consumption intensity andgreenhouse gas emissions intensity.

3. Reduce emissions of PRTR substances by 10% compared with FY 2014.

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

3. The PRTR substance emissions volume for MGC alone in FY 2015 was 278 tons, a reduction of approximately 7%
from FY 2014.

3. Continue notifications and reduction of emissions inaccordance with the PRTR Law.

4. Maintain zero emission of wastes (Zero emissions at MGC: 0.3% or lessfinal disposal of generated wastes, by weight).
5. Reduce generated waste volume by 10% compared with FY 2014.

4., 5. Continue zero emissions initiatives.
•	Maintain low levels of final disposal of wastes.
•	Work to reduce our volume of generated wastes.

4. The zero emissions rate for MGC overall in FY 2015 was 0.89%, meaning that we did not achieve zero emissions.
(This was due to the temporary generation of landfilled wastes accompanying the decommissioning of a portion ofbusiness at the Niigata Plant. The other seven business sites individually maintained zero emissions, and areundertaking even further reductions in final disposal.)
5. Generated waste volume at MGC in FY 2015 was 78,000 tons, a reduction of about 3% from 81,000 tons in FY 2014.

4., 5. Continue measures to reduce wastes.

6. Promote initiatives related to conservation of biodiversity.
7. Formulate methods for evaluation of environmentally friendly products.

6. Initiatives toward the preservation of biodiversity.
•	Actively participate in and cooperate with nature conservation and environmental
beautification activities near our business sites.
•	Consider specific activities for the preservation of biodiversity.
7. Consider methods for evaluation of environmentally friendly products.

6. In addition to maintenance of the forest preserve surrounding the Niigata Plant and the Yokkaichi Plant’s receipt of an
outside award in a plant cultivation contest (along with a special award in our 8th company-wide improvement
presentation meetings for the same event), we participated in cleanup activities around our business sites.
7. We launched a survey of evaluation methods used for environmentally conscious products at other companies.

6. Promote initiatives toward the preservation of biodiversity.
7. Consider methods for evaluation of environmentally friendly
products.

We will carry out risk management of products.
1. Provide up-to-date information through SDSs.
•	Comply with new JIS (JIS Z 7253) for SDSs (with completion by December 2015).
•	Acquire and disseminate the latest versions of raw material SDSs.
2. Risk management of handled chemical products.
•	Participate in the JIPS initiative of the JCIA and creation of Safety Summaries.
•	Promote risk assessment for new products.
3. Adapt to REACH regulation.
•	Adapt to EU REACH regulation.
•	Adapt to regulations of non-EU countries.
4. Reinforce management of chemical reagents.

1.	We created and revised 1,122 SDSs to reflect up-to-date information. We completed compliance with new JIS for
SDSs in all divisions in December.
	We obtained the latest versions of raw materials SDSs and stored these in our environment and safety database.
2.	We collected information on risk assessment tools (GSSMaker), etc. for the creation of Safety Summaries.
Internal safety studies for new products conducted in 2015 consisted of 13 acute toxicity studies, 15 Ames
mutagenicity studies, 4 primary skin irritation studies, and 1 pathogenicity study, for 33 in total (compared with arespective 37, 10, 12, and 0 studies, respectively for a total of 59, in 2014).
3. In preparation for REACH registration, we created the analysis reports for 14 substances scheduled for registration in 2018.
With regard to non-EU foreign regulations, we provided by email, information obtained from industry associations. .
4. To enhance the reagent management system, we increased the number of login IDs and adopted a backup system.
Operation of the reagent management system began in May 2015 at all business sites.
5. We put the following forms on the computer system.
• Warning label (product label) screening forms• SDS registration request forms• Safety testing request form for external parties (for internal contact purposes)

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

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

1. Provide up-to-date safety information on handled chemical products andincorporate information into SDSs (safety data sheets).
2. Risk management for handled chemical products.
• Participate in JIPS.
• Risk management for new products.
3. Adapt to EU REACH regulation and other overseas regulations.

* MOSMS: Maintenance Optimum Strategic Management System. A plan-led mechanism for equipment maintenance, advocated by the Japan Institute of
Plant Maintenance.

29

2015 Achievements: Further efforts required

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

Environmental
Preservation

Chemical and
Product Safety

2015 RC Action Plan

: Mostly achieved

MITSUBISHI GAS CHEMICAL COMPANY, INC.

* OSHA: Occupational Safety and Health Administration.
* PSM: Process Safety Management.
MITSUBISHI GAS CHEMICAL COMPANY, INC.

30

Responsible Care and MGC

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

Certified high pressure gas plants

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

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 Hiyari Hatto (near-miss) incidents.
Our worksites also advance various safety activities suchas safety related education and drills, and occupational
health and safety risk assessments.

Commendation ceremony for safe
driving(Yamakita Plant)

Safety patrols(Niigata Plant)

2011

2012

2013

2014

MGC

0.01

0.03

0

0

2015
0.00

Chemical industry

0.04

0.12

0.12

0.17

0.04

Manufacturing industry

0.08

0.10

0.10

0.09

0.06

*2 Severity rate: Number of lost working days per 1,000 working hours

Certified process safety management system for highpressure gas
President

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

Safety assembly(Mizushima Plant)

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

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

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

Appropriate certified facility inspection
Confirmation of status of implementation

Laboratory director patrol(Niigata Research Laboratory)

Regular maintenance safetyassembly(Kashima Plant)

Hazard prediction activities atpartner companies(Niigata Plant)

Audit of process safety management system

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

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

Process Safety and Disaster Prevention
Activities

Basic lifesaving (AED) course(Hiratsuka Research Laboratory)

New employees participating inhands-on disaster drills(Yokkaichi Plant)

Safety performance
In 2015, occupational injury incidents resulting in lost time
totaled one case at MGC, and two cases at partnercompanies.
Change in lost time injury frequency rate*1

MGC

2011

2012

2013

2014

2015

0.54

0.80

0

0

0.27

Chemical industry

0.88

0.85

0.82

0.76

0.81

Manufacturing industry

1.05

1.00

0.94

1.06

1.06

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

31

MITSUBISHI GAS CHEMICAL COMPANY, INC.

To prevent the occurrence of accidents and injuries, it isimportant to continue stable operation by ensuring safetyof production processes and soundness of equipment. In
each plant, we utilize equipment maintenance (M3) andother systems to conduct checks and make renewal
plans, and perform checks, repairs, and renewals withpriority set according to risk and the importance of facilities.
In response to the accidents that occurred at the
Niigata Plant and Kashima Plant in 2015, we enhanced
our accident cause analysis and implementation ofcountermeasures, and undertook initiatives to prevent
recurrence. We also implemented comprehensive
inspections of equipment and processes, envisioning workin unsteady situations such as an emergency shutdown,
and are undertaking measures to reduce identified risks.

Comprehensive disaster prevention
drill (Mizushima Plant)

Logistics accident simulation drill(Yokkaichi Plant)

Accident Elimination (Bridge) Activities
As a result of undertaking a company-wide project toeliminate accidents (Accident Zero, or AZ) from 2008 to
2013, MGC succeeded in steadily reducing accidents andoccupational injuries.
From FY 2014, we have been working through the local safetyand disaster prevention subcommittee in each plant to tackle theresolution of plant-specific themes, from a frontline perspective
through working group activities by subcommittee members. We
are doing so under the label Bridge activities, through which weseek to carry forward the achievements of AZ activities.
In these activities, we continue to undertake actions withimprovement of “on-site competency” in individuals andorganizations and prevention of equipment and operational
problems through cooperation with the Production Technology
Division as key policies. At the same time, our Environment
and Safety Division and Production Technology Division arecooperating to continue support for accident and trouble
countermeasures at plants, along with initiatives to improve
on-site competency. We are also moving forward withevaluations of the safety competency assessment system of
the Japan Society for Safety Engineering, which we began
successively applying to plants in FY 2014. With respect to theevaluations, we are establishing a self-led improvement systemthat identifies weaknesses in plants and manufacturing
departments, formulates action plans to overcome theweaknesses, and addresses them through the PDCA cycle.
Along with holding company-wide improvement presentation
meetings that integrate our past company-wide safety
presentation meetings and company-wide production technology
improvement presentation meetings, we worked to enhance
information exchange and communication through means that
include company-wide networking of educational materials andreports concerning safety and disaster preparedness andoccupational safety, and leveraging these at all business sites.

Fire hose drills(Niigata Plant)

Internal evaluations of safetycompetency (Niigata Plant)

Bridge leader conference

Company-wide improvement
reports

Operations training simulator(Niigata Plant)

Marine rapid response drill(Kashima Plant)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

32

Responsible Care and MGC

Environmental Impacts Accompanying Business Activities(Domestic MGC Group)
Member companies of the MGC Group Environment and Safety Council in Japan make efforts to contributeto the reduction of environmental impacts and the sustainable development of society, in accordance with
the MGC Group’s fundamental environmental and safety principles.
The table below displays the environmental impact of the MGC Group’s operations in Japan in FY 2015.

Total for the domestic MGC Group*1
FY 2015

FY 2014*2

FY 2015

Sites tabulated: 67

Sites tabulated: 66

Sites tabulated: 13

Sites tabulated: 13

INPUTS
Energy consumption(crude oil equivalent)

Units

2014

2015

1,000 kL    595    567

Water usage

INPUTS
Energy consumption(crude oil equivalent)

Units

2014

2015

1,000 kL   497   472

2014*2  1,279

Tap water

1,000 m3   672   606

Industrial water

1,000 m3

24,582

22,060Industrial water

1,000 m3

21,39719,022Groundwater

1,000 m3  1,395  1,358

Groundwater

1,000 m3   387   452

Energy consumption(crude oil equivalent)

3

1,000 m

10,6609,131Water usage3

1,000 m   934   898

Tap water

3

34,05030,1103

1,000 mTotal water consumption

OUTPUTS

3

1,000 mUnits

10,660  1,250
39,0842014  9,131  1,240
35,068Emissions to atmosphere
Greenhouse gas emissions(CO2 equivalent)River water
OthersTotal water consumption

2015

OUTPUTS

1,000 m

Units

2014

2015

Emissions to atmosphere1,000 tons  1,431  1,280

Greenhouse gas emissions(CO2 equivalent)

SOx

tons

     66     72

NOx

tons    669

Soot and dust emissions

tons     17

INPUTS

River water

1,000 m3     0     0

Others1,000 m3

2,033

2,117

3

Total water consumption

1,000 m

6,864

7,200

OUTPUTS

Units

2014

2015

1,000 tons

—

2,439

1,000 m3

3,928

4,115

Amount generated

tons

10,038

10,186

Amount recycled (including amount sold)

tons

7,186

7,236

Final disposal

tons

1,138

1,034

tons

   600   576

Emissions to atmosphere     19

Soot and dust emissions

tons    10     8

Greenhouse gas emissions(CO2 equivalent)

27,585

COD emissions

tons    266    196

COD emissions

tons   238   174

Total nitrogen emissions

tons    447    283

Total nitrogen emissions

tons   428   263

Total phosphorus emissions

tons     38     46

Total phosphorus emissions

tons    35    45Generation of waste

Generation of waste   317
4,757

NOx

33,394   287    10    628

1,000 m3

1,000 m3

4,537    54

Drainage volume   320     8    5330,928—1,000 m3

tons

42,2981,000 kL

1,000 mSOx

1,000 m3

2015

Groundwater

1,052

Drainage volume

2014

Industrial water

1,196

Released to water area

Units

3

1,000 tons

Released to water area

Sites tabulated: 16*4

Sites tabulated: 16*  1,196

1,000 m2015
4

1,000 m3

OthersDrainage volume
Generation of waste

tons

140,093

128,356

Amount generated

tons

81,17278,496

Amount recycled (including amount sold)tons

40,13437,860

Amount recycled (including amount sold)tons

20,956

20,675Emissions (air)tons    73    93

Transfer to off-site

tons

36,241

34,700Transfer to off-site

tons

8,229

8,472

Emissions (water)tons    26    27

Final disposal

tons  3,469  2,278

Final disposal

tons

1,086

   700

Notified substances under PRTR Law

Notified substances under PRTR (TRI) Law

Emissions (soil)

tons     0     0Total amount emitted

tons    98   120tons   251   346

Emissions (air)tons  1,452    892

Emissions (air)tons   284   257

Total amount transferred

Emissions (water)

tons     20     20

Emissions (water)tons    14    20*3 Targeted companies: AGELESS (THAILAND) CO., LTD.; KOREAENGINEERING PLASTICS CO., LTD.; MGC ADVANCED POLYMERS,
INC.; MGC ELECTROTECHNO (THAILAND) CO., LTD.; MGC PURE
CHEMICALS AMERICA, INC.; MGC PURE CHEMICALS TAIWAN, INC.;
MITSUBISHI GAS CHEMICAL ENGINEERING-PLASTICS (SHANGHAI)
CO., LTD.; MGC PURE CHEMICALS SINGAPORE PTE. LTD.; PT
PEROKSIDA INDONESIA PRATAMA; SAMYOUNG PURE CHEMICALSCO., LTD.; SUZHOU MGC SUHUA PEROXIDE CO., LTD.; TE AN LING
TIAN (NANJING) FINE CHEMICAL CO., LTD.; THAI POLYACETAL CO.,
LTD.; THAI POLYCARBONATE CO., LTD.
*4 As some data is not collected for some companies, data may not be
available for all locations.
Note: Groundwater usage volume by the overseas MCG Group on P34 of
CSR Report 2015 was in error. The correct data is 5,000m3 in 2013
and 8,000m3 in 2014.

Emissions (soil)

tons      0      0Emissions (soil)

tons     0     0Total amount emitted

tons  1,472    913

Total amount emitted

tons   298   278

Total amount transferredtons    868    628

Total amount transferredtons   363   237*1 The total for the domestic MGC Group is the sum of environmental impact data for the MGC Group’s main domestic manufacturing and processing
businesses (member companies of the MGC Group Environment and Safety Council; see pages 44 to 46) and MGC itself (production sites such as plants
and non-production sites such as laboratories and sales offices, with MGC training centers and company-owned recreation facilities together treated as theequivalent of one site).
The environmental impact values shown in the table for the Group as a whole capture over 90% of the scope of consolidated accounting for the MGC Groupin Japan.
*2 FY 2014 data may appear differently in CSR Report 2015 because it has been revised.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Endorsing the aims of the Keidanren (Japan Business
Federation) Declaration of Biodiversity, MGC signed on asa promotional partner of the Declaration in 2009.
In 2014, MGC became a member of the Keidanren
Nature Conservation Committee with the aim of engaging
in activities to protect the natural environment andconserve biodiversity.
Among the chemical substances handled by thechemical industry are many which may have a severe
impact on human health and ecosystems if unintentionallyreleased into nature.
Carrying out its business activities with a keenawareness of this, MGC will strive to maintain a richnatural environment and preserve biodiversity throughchemical management founded on responsible care,environmental preservation, conservation of resources andenergy, and the development of environmentally conscious
products and technologies. Doing so, we will contribute tosustainable development.
In addition, we are undertaking activities related tobiodiversity through close-at-hand activities such as flower
campaigns and maintenance of forest preserves aroundplants (see page 30). These activities are gradually
becoming widespread, with results that include an outside
award given to a plant that participated in a plantcultivation contest.

Released to water area

Amount generated

Notified substances under PRTR Law

33

Overseas MGC Group Companies*3

Tap water

River water(MGC alone)(Overseas MGC Group)

Water usage

3

Preservation of Biodiversity

MGC surveys and compiles environmental impact data forgroup companies sited overseas that engage inmanufacturing. Data for 2014 and 2015 covers 14
companies and 16 sites.

MGC alone

FY 2014*2

Environmental Impacts
Accompanying Business
Activities

MITSUBISHI GAS CHEMICAL COMPANY, INC.

34

Responsible Care and MGC

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

We improved the heat efficiency of co-generation facilities

FY 2015 energy consumption and greenhouse gas (GHG) emissions for all of MGC’s business activities were as
follows. Emissions from plants’ manufacturing divisions account for 97% of greenhouse gas emissions.
Energy consumption (1,000 kL crude oil equivalent)

In order to efficiently use energy in MGC’s plants, we aremaking use of co-generation facilities thatsimultaneously performs power generation and heating.
Unlike thermal power generation operated primarily togenerate electricity, co-generation also performs heatingof various raw materials required by chemical plants,
enabling an overall increase in energy efficiency andcontributing to the reduction of GHG emissions.
With co-generation facilities, reducing the amount offuel used and raising energy efficiency are everyday
tasks. We expanded heat recovery equipment in the
Yokkaichi Plant in FY 2015. This equipment uses steam

Greenhouse gas emissions (1,000 tons CO2 equivalent)

Plant Manufacturing Division465.2

1,040.1

Transportation Sector (shipper)

10.3   26.5

Office Area  6.3   12.2

Business activities overall

481.9

1,078.8

The Plant Manufacturing Division, which is at the center of the initiatives, has set the following targets
and is working on measures.
Energy consumption intensity*1: Reduce to 85% or lower compared with FY 1990 levels by FY 2017
GHG emissions intensity*2: Reduce to 72% or lower compared with FY 1990 levels by FY 2017
*1 Energy consumption intensity: The amount of energy consumption per unit of production volume*2 Greenhouse gas emissions intensity: The amount of GHG emissions per unit of production volume

We are developing geothermal energy

GHG emissions and GHG emissions rate

Manufacturing Plant Initiatives

Emission amountWe undertook reductions in energy consumption and
GHG emissions in manufacturing plants, and in FY 2015
we succeeded in year-on-year reductions in energy
consumption of 5% and GHG emissions of 3%.
Energy consumption intensity was 95% that of FY
1990, the same as in the previous year, while GHG
emissions intensity was 79% that of FY 1990, a 3.1%
improvement from the previous year.
We implemented over 60 measures to reduce energy
consumption, including recovering heat from waste gas
and hot wastewater, recovering excess steam, reducing
heat consumption at the refinery, changing fuels, switching
to LED lighting, and adopting new energy-saving equipment.
The energy conserved by these measures has risen to
16,000 kL crude oil equivalent. The reduction in GHG
emissions is 76,000 tons CO2 equivalent.
Looking ahead, we are planning measures including
the adoption of new-model co-generation systems andrecovery of heat from incineration.

GHG emissions rate

Target rate for FY 2017

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

GHG emissions rate
(FY 1990 = 1)

1.00

1.0

0.86 0.83 0.87 0.82 0.83 0.84
0.81 0.79 0.78
0.81 0.79
0.76

2,000

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

1,500
1,184

1,334

1,166 1,275

1,303 1,329 1,266 1,183

0.8
0.6

1,040

0.4

500

0.2

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0.0
(FY)

1,000

1990

Initiatives in the Transportation Sector
In our transportation sector, we have undertaken energysaving initiatives focused on enlarging transport lots andmaking a modal shift to rail transport. In FY 2015, energy
consumption and GHG emissions each increased by 7%
due to a 5% increase in transportation volume (asmeasured in ton-kilometers, or transport weight ×transport distance).

Energy consumption amount

Energy consumption rate

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

1.00

0.88 0.87 0.89 0.89

Target rate for FY 2017
Energy consumption rate
(FY 1990 = 1)

0.95 1.00 0.95 0.95

0.92 0.91 0.95 0.95

800

430

554 569 562 577 531
550 555 530
490 465493 533

200

1990

35

0.6

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MITSUBISHI GAS CHEMICAL COMPANY, INC.

By rail

0.0(FY)

CO2 emissions rate

CO2 emission(1,000 tons)
40

CO2 emissions rate
(FY 2006 = 1)

0.980

30

0.990

0.969

20

30%

10

68%

0.945

0.926

0.940

0.942

0.951

0.965

2%
33%

65%

3%
37%

61%

3%
33%

65%

2%
34%

2%

2%

2%

1%

35%

35%

35%

39%

2008

2009

2010

0.8
0.7

64%

63%

63%

63%

60%

0
2007

1.0
0.9

2%

0.4
0.2

0

By ship

42,000 kW, or the equivalent of 70,000 average
households’ power usage.
We are also taking part in several survey projects in
Hokkaido and the Tohoku region, with the aim of
constructing new geothermal power plants. (See page
16 for the latest information on this project.)
Conceptual drawing of the Wasabizawa geothermal power plant
Reinjection pad

Reinjection hot watertransport pipe

Power plant

Geothermal production pad

Activities in the Office Area

1.0
0.8

600
400

By truck

MGC is participating in a project to develop andgenerate electricity from geothermal energy, a type of
renewable energy. Environmentally friendly and clean,geothermal energy emits minimal CO2 during power
generation and is a renewable resource that can lastforever if used appropriately. Geothermal power also
shows great promise for being generated entirely within
Japan making good use of our abundant resources.
There are also high hopes for it because of its
advantage as a base-load power source unaffected byweather or seasons.
Over the past 20 years, MGC has conducted a joint
project in Hachimantai, Akita Prefecture, to supply an
adjacent power plant with geothermal steam. In May
2015, we began construction of the Wasabizawa
geothermal power plant as part of a joint project inYuzawa, Akita Prefecture. The power plant is expected
to begin operation in 2019 and achieves an output ofProject area

Energy consumption in the office area

CO2 emissions
Energy consumption amount and consumption ratefrom the hot water accumulated in boilers, and has
allowed us to achieve a 1.0% improvement in energy
efficiency. The conserved energy is 24 kL crude oil
equivalent per month, while the reduced GHG emissions
are about 13 tons CO2 equivalent. Converted to city gas
usage by average
households, therecovered energy isequivalent to about 1
month of usage by 240
houses (or 20 years ofusage by 1 house).

2011

2012

2013

2014

2015

0.6
(FY)

We conduct a number of proactive measures to reduceenergy consumption at our head office and laboratories,
including switching to LED lighting, participating in ‘Cool
Biz’ during summer and ‘Warm Biz’ during winter, andshortening the hours of air conditioning operation.
As a result of undertaking these measures, we succeededin reducing our GHG emissions by 1% in FY 2015.
Looking ahead, we are planning initiatives that include
increasing the efficiency of LED lighting and air conditioning.

FY

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

2010

6.68

11.05

2011

5.66

8.98

2012

5.80

10.67

2013

6.17

12.41

2014

6.14

12.32

2015

6.34

12.20

MITSUBISHI GAS CHEMICAL COMPANY, INC.

36

Responsible Care and MGC

Reducing Chemical Substance Emissions (Domestic MGC Group)

Reduction of Waste (Global 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.

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

Substances Subject to Notification under
the PRTR Law
In FY 2015, the number of substances subject to notification
due to handling in excess of prescribed amounts was 91
for the MGC Group overall, with the respective companies
and business sites conducting notifications.
Our annual emission of these substances totaled 914
tons, a decrease of about 38% from 1,471 tons in theprevious year. The primary reason for the reduction was
the plan undertaken by JSP Corporation, a Group
company, to replace a PRTR-targeted blowing agent usedin the manufacture of a portion of its products with a
non-PRTR-targeted blowing agent.
The Group’s amount of transfers totaled 635 tons, adecrease of 232 tons, or about 27%, from the previous
year. The primary reason for the decrease was thecompletion of the temporary outside waste processingthat we performed last fiscal year.
PRTR Law substance emissions
MGC alone

Number of notified substances in Japan

Domestic MGC Group

Amount (tons)

Number of substances

2,000
1,800

100

89

86

91

89

86

90

1,600

80

1,400

70

1,200

60

1,000

50

1,212

1,130

800

1,173

1,266

600

636
339

0

312

307

2011

2012

2013

298
2014

278
2015

10
0

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

633

800

484

600

551

447

0

2012

2013

2014

241
2015

(FY)

* PRTR emissions volume and transfer volume have been revised becauseof changes to tabulation data for FY 2014.

37(1,000 tons)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

6,000

2,035

1,273

4,000

1,138
1,252
1,411
130

2,000
0

2011

4,983

5,125

2,383

122

84

1,086

2012

2013

2014

200

2.7

10.0

84

76

45

100

MGC Group total (including overseas)

16

13.63

91

MGC alone

13.55
8.70
5.58

0.37

0.33

0.20

2011

2012

2013

2012

81

2013

2014

2.82

2.25

2014

2015

78
2015

(FY)

Zero emissions rate

(tons)

(%)

1,200

1.6

1.34

900

0.89

600

Recycled amount
MGC alone300
Overseas MGC Group

Domestic MGC Group(FY)

Final disposal volume and zero emissions rate (MGC alone)

50

0

2011

(FY)

10.2

59

86

85

2015

6.18

Final disposal volume
50

1,578
700

(kg/million yen)

0

9.5

2.7

150

1,034

Final disposal intensity compared to net sales

4

0.14

0

2011

(1,000 tons)

130

1,086

122
0.14

0.10

2012

2013

700
84

1.2
0.8
0.4
0

2014

2015

(FY)

* Past data has been reviewed and corrected.

50

0.5

40

19

30

5.9

0.7
16

20

25

23

7.2

7.2

19

17

21

21

Promoting the pulping and reuse of office
paper and the recycling of plastic bottle
caps (MGC alone)

20

26

10
0

2011

2012

2013

2014

2015

(FY)

Waste treatment in the domestic MGC group in FY 2015
Recycled
amount29,280 tons

Reducedamount64,376 tons

(50.1%)

Reducedamount23,842 tons

(18.6%)

Recycled
amount8,580 tons

(6.7%)

Amountemittedexternally
34,700 tons

(100%)

362

8,000

8

Overseas MGC Group

Domestic MGC Group60

Volatile Organic Compounds (VOCs)(MGC alone)

Overseas MGC Group

Domestic MGC Group

12Amount of waste generated

Generatedamount128,356 tons

394

235
2011

FY 2015 waste amounts totaled about 138,500 tons
Group-wide, a decrease of about 11,600 tons, or about
8%, from the previous year.
Final disposal for the Group totaled 3,312 tons, adecrease of 1,295 tons from the previous year. This wasprimarily due to an end to the generation of unneeded
items associated with the review of business in thedomestic group.
The increase in final disposal amount in FY 2014 and2015 for MGC alone was a one-off increase associatedwith review of business.

(22.8%)

664

MGC alone(tons)

505

400
200

As of 2015, the Japan Chemical Industry Association(JCIA), of which MGC is a member, has specified 328 ClassI Designated Chemical Substances stipulated by the PRTR
Law, and a JCIA specified 90 substance plus 1 substancegroup as voluntary PRTR-targeted substances (with only
atmospheric emissions calculated for the JCIA-specified
substances). The entire chemical industry is working toward
the reduction of emissions of these PRTR substances.
The amount of the substances emitted by MGC in FY
2015 totaled 73 substances and 278 tons, a decrease ofabout 20 tons, or about 7%, from 298 tons in the previous
fiscal year.

At MGC (alone), PRTR substances for which notification
was provided under law, and substances stipulated by
JCIA for which there was release into the atmosphere, aretallied as VOCs.
Atmospheric release of VOCs in FY 2015 totaled 23
substances and about 349 tons, a decrease of about 8
tons, or about 2%, from 358 tons in the previous fiscal year.

Domestic MGC Group

Waste Reduction Achievement

MGC alone(FY)

PRTR Law substance transfers
MGC alone

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

30
20

200

Among the substances registered under the PRTR Law,
those listed below are emitted by the entire MGC Group in
amounts of 10 tons or more.
■ Chloromethane (574 tons)■ 1,2,4-Trimethylbenzene (176 tons)■ Dichloromethane (45 tons)■ Xylene (20 tons)■ Toluene (14 tons)

40

400

Final disposal amount

PRTR Law Substances with High Levelsof Emissions

Amountlandfilledinternally0 tons(0%)

Final
disposal

On-SiteOff-Site

2,278 tons
(1.8%)MGC separates and collects used office paper andconfidential documents, and pulps these throughoutsourced contractors. Pulping prevents thegeneration of CO2, and allows paper to be reborn as
recycled paper.
In addition, with the cooperation of vending machinesellers, plastic bottle
caps are collectedfrom our offices forrecycling. These areused to aid welfare
activities including
support for vaccines inCollection
Collection containerbox for paper for plastic bottle caps developing countries.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

38

Responsible Care and MGC

Conservation of Water and Atmospheric Environments

Safety Management of Chemicals and Products(Global MGC Group)
To preserve the soundness of the water and air resources so vital to the Earth and to use them sustainably,
MCG Group companies monitor use and emissions of these resources.

Emission of total nitrogen

Water Consumption/Wastewater Volume

MGC alone

Water consumption
MGC alone

500
250
0

2011

19

22

22
231

23
149
2012

2013

20
263

428

316
2014

2015

(FY)

Emission of total phosphorous

Domestic MGC Group

Overseas MGC Group

MGC alone(1,000 m3)

Domestic MGC Group(tons)

60,000100

40,000

800
5,192

802
5,489

4,599
5,664

6,864
5,034

7,200
5,268

50

39,891

39,13937,611

34,05030,1100

20,000
0

2011

2012

2013

2014

2015

2.1
53
2011

(FY)

4.6

4.6

69

61

2012

2013

0.5
45

2.4
35
2014

2015

(FY)

Wastewater
MGC alone

Domestic MGC Group80,000114
3,626
33,026

0

2011

171
29,782

3,459
27,21733,67834,803

2012

2013

4,115
3,482
27,5852015

MGC alone
(FY)

300

136

101

100
50

81

0

112

0

(m /million yen)
150

36

100

Wastewater volume intensity

2011

2011

122

87

97

90

87

2012

2013

2014

71

93

72

65

76

2012

2013

19
54

13
53
2014

Safety data sheets (SDSs)

2015

(FY)

Emission of NOx

59
2015

MGC alone(FY)

Domestic MGC Group(tons)
1,000
750

Preservation of the Water Environment(Domestic Group)• Physicochemical hazard assessment• Assessment of hazard to health• Assessment of hazard to the environment

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

Premarketing investigations

200

3

Safety assessment

500
250

60

66

73

69

52

606

625

673

600

575

• Assessment of risk management• Determination of marketability
Product supply

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

Customer information

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

Domestic MGC Group(tons)• Acquisition of SDSs for raw materials• Survey of literature related to safety• Survey of requirements for area of usage• Applicability survey for new substances

Preparation of safety information

Emission of SOx

Global water usage/wastewater volume intensity
compared to consolidated net sales
Water usage intensity*1 GHS: The Globally Harmonized System of Classification and Labeling of Chemicals. Chemicalhazards are classified under fixed standards and are indicated clearly with pictograms onlabels and SDS documentation. Ultimately, the information contributes to accident prevention,
human health, and environmental preservation.

Providing Safety Information

3,928
8,905
33,3942014

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

Preservation of Atmospheric Environment(Domestic Group)

Overseas MGC Group(1,000 m3)

40,000

Basic survey

Safety Assessment of Chemical Substancesand Products

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

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

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

0

2011

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

2012

40

(tons)

20400

0Domestic MGC Group

18

200

31

66

63

28

100

232

202

194

238

22

2014

2015

Note: Past data on this page has been reviewed and corrected.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2012

3
22
2013

11
8

7
10
2014

2015

(FY)

* Data on substances emitted into water and air environments is at present
known only for domestic group companies.

174

0

2013

6
21

31
2011

300

39

(FY)

60

Domestic MGC Group

2012

2015

(tons)

Emission of COD

2011

2014

Emission of soot and dust
MGC alone

MGC alone

2013

(FY)

LabelsYellow cards

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

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

40

Responsible Care and MGC

Environmental Accounting (MGC alone)

Safety Management of Chemicals and Products

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

Chemical and Product Safety Education

Emergency Responses in Distribution

MGC conducts chemical and product safety education
within its product liability (PL) training at each businesssite. In 2015, we conducted education on methods forsafety evaluations in the product development process
and on the work necessary to bring products to market.
As additional chemical substances became subject tomandatory risk assessments under the June 1, 2016
revisions to the Industrial Safety and Health Act, we
conducted education on risk assessment methods for use
in the handling of various chemical substances.

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

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

Environmental Preservation Cost andEconomic Benefits

Expenses
Total expenses related to environmental conservation
activities in FY 2015 were 7.8 billion yen. Of these, thehighest expense was 2.7 billion yen for research anddevelopment, accounting for 34% of the total.
Economic benefits
The reduction of expenses through energy saving
measures and the income from the sale of unneeded
items generated in our business activities were recorded
as real economic benefit.

Oil barrier deployment drill(Mizushima Plant)

Joint logistics disaster
preparedness drills
Yamakita Plant)

Economic benefit
Title

Amount(millions of yen)

Item

IncomeProfit on sale of valuable waste, etc.

25.9

Reduction of expenses

Effects due to energy saving

355.7

Environmental preservation cost
Breakdown
Logistics accident response drill(Naniwa Plant)

Logistics accident response drill(Yokkaichi Plant)

Onsite cost

GLP certified testing facility
The MGC Niigata Research Laboratory is recognized by the Japanese government asconforming to GLP* test facilities for Ames mutagenicity study. GLP test reports
command high confidence internationally. In addition, as GLP test reports can beused 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 substances that are part of our product development.
We conduct testing to assess the safety of the chemicals handled by the MGC
Group, including acute oral toxicity studies, primary skin irritation tests studies, andpathogenicity studies.
* GLP (Good Laboratory Practice): GLP is a system which ensures the reliability of test results, throughgovernment recognition of excellent testing facilities that demonstrate GLP standards-based management,
testing equipment, test planning, internal auditing systems, reliability assurance systems, and compliancewith test result standards.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MGC began undertaking environmental preservation
investments in FY 2015.
Environmental preservation investments are thoseinvestments which are difficult to adopt in conventional
investment projects for reasons including long return on
investment periods, but for which we are internallysoliciting projects with large environmental burden
reduction effects, aiming for execution on a total scale ofabout 100 million yen.
As an example, investment to replace air conditioning
equipment with new energy-saving types promotes energy
conservation and can reduce the use of fluorocarbons thathave high ozone depletion coefficients and global warming
coefficients. Moreover, replacing mercury-vapor lamps andfluorescent lights with LED lighting is a promising step toconserve energy and reduce equipment containing mercury.
In FY 2015, we upgraded air conditioning equipment,
switched mercury-vapor lamps and other lighting to LED
lighting, and equipped tanks and building roofs withinsulating coating. In addition to an electric power
consumption reduction effect equivalent to 324,000 kWh,we obtained environmental burden reduction effects
including a 7 ton reduction in atmospheric emissions of
PRTR substances.

Investment amountThe total amount of investment related to environmental
preservation activities in FY 2015 was 3.3 billion yen.
Major investments include the upgrading of co-generationequipment at the Mizushima Plant.

GPS/JIPS Safety Summary

41

Environmental Preservation Investments

Pollution
prevention
cost(millions of yen)

Main areas of activity

Investment

Expenses

Air pollution prevention

Installation of PRTR substance collection equipment  253.8  727.0

Water pollution prevention

Installation, reinforcement, and maintenance of wastewater treatment facilities and measuring
equipment  103.4

1,606.9

Prevention of soil infiltration  112.5    0.5

Global environmental preservation cost

Soil, Noise

Upgrading of co-generation equipment; efficiency improvements in incineration facilities

2,554.8

1,216.3

Resources recycling costMaterial and thermal recycling of waste    3.0  853.8

Up or down stream cost

Retrieval and reuse of product containers; yellow card management    0.0   51.2

Management activity cost

Maintenance of green spaces and environmental-related analysis   31.6  595.2

R&D cost

Research and development of energy-saving technologies and environmentally friendly products  263.7

2,729.3

Social contribution cost

Greening of surrounding areas; support for environmental conservation organizations    0.0   10.9

Environmental damage cost

Pollution impacts levy    0.0   75.9

3,322.8

7,867.0

Total

Compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005
Period: From April 1, 2015 to March 31, 2016
Scope: MGC only
Methods: Investments were proportionally related to the approved or enforced amount of capital expenditure to environmental preservation. Expenses were
proportionally related to the ratio of environmental preservation and include depreciation allowance.
Colony analyzer

MITSUBISHI GAS CHEMICAL COMPANY, INC.

42

Responsible Care and MGC

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

RC Medium-Term Plan

2016 RC Action Plan■	Strengthening of communication■	Sharing and horizontal

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

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

Environmental and Safety Audits
With the director in charge of the environment and safety asteam leader, we conduct 4 or 5 domestic and 5 or 6 overseas
environmental and safety audits each year in support of theGroup companies’ environment and safety activities.
In 2015, the 13 companies below were audited.

Eiwa Chemical Industry Co., Ltd.
Manufacture and sale of blowing agents

Manufacturing of chemical products andlife science-related materials

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

Address: 4061-2, Tayuhama, Kita-ku, Niigata-shi, Niigata 950-3112,
Japan
Tel: +81-25-259-7187
URL: http://mgc-ac.jp/ (Japanese only)■ 	JSP Corporation, Kansai Plant■ 	MGC Filsheet Co., Ltd., Tokorozawa Plant■ 	Japan Circuit Industrial Co., Ltd.
■ 	Eiwa Chemical Industry Co., Ltd., Ujitawara Plant■ 	MGC Electrotechno Co., Ltd., Shirakawa Plant■ 	PT PEROKSIDA INDONESIA PRATAMA (PIP/Indonesia)

MGC Group Environment and Safety
Council Meeting■ 	BRUNEI METHANOL COMPANY SDN.BHD. (BMC/Brunei)■ 	MGC PURE CHEMICALS SINGAPORE PTE. LTD.

(MPCS/Singapore)

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

Plant briefing at SHINSANSOKAGAKU CO.

Hirotsugu Yamamura
President & CEO

43

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Takafumi Abe

As a member of the MGC Group, ourcompany has the manufacture of life
sciences-related materials and organic
chemicals as its primary business.
Through the practice we term “Safetyassurance takes priority over all businessactivities,” we endeavor daily to takeenvironmental preservation into accountand maintain safe and secure operations,so that we may be a presence trusted by
the market and the community.

President & CEO(SYPC/South Korea)■ 	KOREA ENGINEERING PLASTICS CO., LTD.

(KEP/South Korea)■ 	SUZHOU MGC SUHUA PEROXIDE CO., LTD. (China)■ 	MITSUBISHI GAS CHEMICAL ENGINEERING PLASTICS

Firefighting drill using powderbased extinguishers(SHANGHAI) CO., LTD. (China)■ 	TE AN LING TIAN (NANJING) FINE CHEMICAL CO., LTD.

AED course(China)PIP (Indonesia) audit

BMC (Brunei) audit

MPCS (Singapore) audit

KEP (South Korea) audit

MGC Electrotechno Co., Ltd.

MGC Filsheet Co., Ltd.

Manufacture of copper-clad laminates

Manufacture of polycarbonate film and sheet

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

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

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

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

■ 	SAMYOUNG PURE CHEMICALS CO., LTD.

Plant tour at SHINSANSO KAGAKU
CO.

Sharing Safety Information across the
MGC Group

MGC Advanced Chemical Inc.

President & CEO

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

Firefighting drill

Kuniaki Jinnai
President & CEO

The functional films and sheets produced byour company are used in a variety of
applications including display devices,automobiles, and sunglasses, where they
aid in conferring functionality, conserving
energy, and reducing weight. Among ourenvironmental preservation initiatives, we
continue to undertake risk assessments,
diverse education and training, work
improvement activities (Tokorozawa Plant),
and activities to strengthen on-sitecompetency (Osaka Plant), and make efforts
to raise awareness among employees while
sharing information between the two plants.

Disaster preparedness drill (firehose drill)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

44

Responsible Care and MGC
The MGC Group Environment and Safety Council

Japan Finechem Co., Inc.

Japan U-PiCA Co., Ltd.

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

Manufacture and sale of unsaturated polyester resinand coating resins

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

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

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

Shin Sanso Kagaku is the only
manufacturer of environmentally friendlyhydrogen peroxide in Hokkaido. We
began operation in 1987 in Tomakomai,
an industrial city with a port andsurrounded by abundant nature, including
Shikotsu- Toya National Park and a
Ramsar Convention site.
With safety assurance and environmental
preservation as our top priority, we engage
in risk assessment activities, continuous
improvement of energy consumption
intensity, and stable production under zeroaccidents and zero occupational injuries.

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

JSP Corporation

Shin Sanso Kagaku Co.

Manufacture and sale of foamed plastics

Manufacture of hydrogen peroxide

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

As a dedicated manufacturer of foamed
plastics, we supply the world withproducts that meet the needs of thetimes with respect to energy
conservation, resource conservation, andenvironmental preservation. As aninternationally competitive company thatprioritizes safety and adaption to theenvironment, we aim to engage inbusiness activities that earn the trust andsatisfaction of stakeholders, and work
toward harmony between our businessand the environment.

Yukio Sakai
President & CEO

Yasushi Hiramatsu
President & CEO

Holding a social gathering with
community residents and local
government at our Kansai Plant

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

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

President & CEO

Drill for hazard prediction
during transport by hand truck.

45

Japan Pionics Co., Ltd.

Resinous molding processing

Masanori Shimuta

MITSUBISHI GAS CHEMICAL COMPANY, INC.

President & CEO

Masaaki Iijima
President & CEO

We believe that safety assurance andenvironmental preservation are the top
priority of our business activities. While
working continuously toward zeroaccidents and zero occupational injuries,
product quality assurance, andstrengthening of risk management, weparticipate actively in community activities
as we aim to become a company trusted
by the community.
We hope to strengthen these activities
and, as a member of the MGC Group,
contribute to the improvement of theGroup’s corporate value.

Participation in community
activities (riverbed cleanup at
the Sagami River)Yoshihiro Yamane
President & CEOFire hose drill under theguidance of the local fire
department

Participation in an oil spill
response drill.

Manufacture and sale of gas purifiers andabatement system

Toyo Kagaku has placed the eliminationof occupational injuries (i.e., zeroaccidents and zero occupational injuries)
at the top of our basic policies. We
engage in safety activities including
identification and improvement of
hazardous locations and monitoring oftraffic safety, under the idea that safety
takes priority over all else.
In terms of the environment, wemanufacture plastic molded products thattake energy conservation into
consideration, adopting energy saving
equipment and reducing wastes throughthe improvement of material yields.

Shigenobu Ono

Under the philosophy of contributing to therealization of a more affluent society andcomfortable living as a materials manufacturer,
Japan U-PiCA is aiming for further
improvement in the areas of environment,
safety, and health. In terms of safety, we
actively engage in hazard prediction activities
and submission of Hiyari Hatto (near-miss)incidents while working to firmly establish the
5Ss, with the goal of zero accidents.
In terms of environmentally considerate
products, we are enhancing our biomassderived products and are also undertaking thedevelopment of materials for CFRP that willcontribute to lower weight and energy
conservation.

Yonezawa Dia Electronics Co., Inc.

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

Hideaki Matsumoto
President & CEOFire hose drill

Regaining the enthusiasm of our start, we
conducted a workshop for all employees
on basic safety matters. We intend tocontinue improving the content of theworkshop and holding it as need arises,
as we make efforts to create a workplacethat enhances corporate value. At our
Fujinomiya Plant, we solicited health andsafety slogans in conjunction with
National Industrial Health Week, andcommended top submissions to improvesafety awareness. Looking ahead, we will
act across the company to promote
environmental and safety activities.

Occupational health slogans
written in calligraphy by
Fujinomiya Plant administrative
section employees

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

Nobuhisa Ariyoshi
President & CEO

Our company performs manufacturing
and R&D of printed circuit boards andauxiliary sheets for drilling, using a varietyof chemicals in our business activities.
Making preservation of the rich natureof Yonezawa our top priority, we perform
risk assessments and planned
maintenance of equipment to prevent
leaks and other accidents that impact theenvironment. We also engage in KYT,
Hiyari Hatto (near-miss) incident
identification, and 5S activities, with theaim of achieving zero accidents.

Ongoing median strip greening
activity

MITSUBISHI GAS CHEMICAL COMPANY, INC.

46