MITSUBISHI GAS CHEMICAL COMPANY, INC.
Mitsibishi Building, 5-2 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8324, JapanCSR Report 2012

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/ (English)
http://www.mgc.co.jp/chi/ (Chinese)

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

Contents

Message from Our President & CEO

2

Message from Our President & CEO

Profile of Mitsubishi Gas Chemical (MGC)
35Company Overview and BusinessResearch and Development Activities

CSR Management
MGC’s Efforts in CSR

9Corporate Governance

10Compliance and Risk Management

11

About this Report
The purpose of the ‘CSR Report 2012’ is to provide
information related to the various activities carried out
by Mitsubishi Gas Chemical Company, Inc. (MGC) in
the area of Responsible Care (RC), the steps it is taking
to improve corporate ethics and compliance, and toreport our relations with our many stakeholders in
addition to broadly promoting our (CSR) activities.
MGC began producing an environmental report in
2001. In 2007, the report was renamed the RC Report,
and it continued to provide details about company
activities related to the environment and safety. Startingin 2010, we are changing this report to the CSR Report
to reflect our wide-ranging efforts in the area ofCorporate Social Responsibility. As a result, you willfind that this year’s report provides a much broader
selection of information.
We have put great effort into making this reporteasy to understand, and look forward to your honest
opinion and feedback.

Stakeholders and MGC
Together with Stakeholders

13

Scope of this Report
Organizations included

Responsible Care and MGC
Environment and Safety Management

17

Results and Plans for RC Activities

19

Occupational Health and Safety, Process
Safety, and Disaster Prevention

21

Environmental Burden of Business Activities

23

Environmental Accounting

24

Global Warming Prevention

25

Chemical Emissions

27

Waste Reduction

29

Air and Water Conservation

30

Safety Management of Chemicals and Products

31

RC Activities on Site

33

MGC Group’s Environmental and Safety Activities

37

12 Member Companies of the MGC Group
Environment and Safety Council

All offices in Japan. In the case of MGC Group
companies, proper reference will be made where
necessary.
Reporting period
April 1, 2011 through March 31, 2012 (includes some
activities after April 2012).
However, Responsible Care (RC) activities are included
from 1 January, 2011 – December 31, 2011 (includes
some RC activities in 2012).

Reference Guidelines
Ministry of the Environment, “Environmental Reporting
Guidelines (2007)”
Ministry of the Environment “Environmental Accounting
Guidelines 2005”
Global Reporting Initiative (GRI)“Sustainability Reporting Guidelines Version 3.0”

Publication Information

38

Date of publication: November 2012
Date of next scheduled publication: October 2013

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

1

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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

FY 2011 was a year in which Japan’s economy was beset
by several trials. While the MGC Group recovered its
workplaces damaged by the Great East Japan Earthquake
more quickly than expected, from the middle of the year wewere hit by large-scale natural disasters such as theflooding in Thailand, as well as global economic anomalies
spurred by the strong yen and the deepening European
financial crisis. Due to these factors, we were unable tomeet the target values for the final fiscal year of our MGC
Will 2011 medium-term management plan. The current
term also holds cause for concern, including the prolonged
European crisis and economic slowdowns in the US andChina.
As the outlook clouds for the global economy, ourGroup has launched its new MGC Will 2014 medium-term
management plan to move toward the ideal for ourselvesthat we envision for 2021, the 50th anniversary since ourfoundation. We are making no changes to our management
concept of “making contributions toward development inharmony with society through the creation of a diverse
range of value based on chemistry,” nor to our Group vision
of “The MGC Group aims to thoroughly realize CSR goals
in all its activities while developing and growing sustainably
on the global stage as a highly differentiated, widely
recognized chemicals group operating from a strong
platform of proprietary technology.” As a chemical
manufacturer acting under the principle of sustainable
development, we must always conduct our businessactivities with consideration given to their impact on future
generations. In addition, we recognize that our Group’s
mission and reason for being lie in continually providing
customers with original and highly functional materials that
accurately capture society’s needs.
In this way, even as severe changes unfold throughout
the world, by holding an unwavering course in ourmanagement we will make efforts to raise our presence
within society, as a company deemed truly necessary by
our stakeholders.
It is our pleasure to issue our CSR Report again thisyear. In FY 2011 we continued to respond appropriately toregulations while striving to make improvements that
include improved unit energy consumption, chemical andproduct safety, and logistical safety, as well as reduced
emissions of greenhouse gases and wastes. In the areas ofoccupational health and safety as well as process safetyand disaster prevention, our company as a whole isworking to strengthen our on-site capabilities toward thegoal of zero accidents and zero occupational injuries. These
activities and their achievements are detailed in“Responsible Care (RC) Activities” in this report (p. 17).
We are also making all-out efforts to meet thedemands of the era in addressing corporate governance,compliance, and risk management. In particular, we drew
upon the lessons of the Great East Japan Earthquake toreview our BCP (business continuity planning) forlarge-scale natural disasters and to boost the effectivenessof our plans.
In this way, we believe that working through the PDCA
cycle to effect continual improvements with respect to eachof these issues forms the essence of CSR activity. Together
with our stakeholders in Japan and abroad, MGC willcontinue making efforts to raise its presence withininternational society as a company indispensable to therealization of a sustainable society.
We hope that everyone reading this report will gain adeeper understanding of the MGC Group’s CSR activities.
We welcome your honest opinions and suggestions.

Kazuo Sakai
President
September 2012

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2

Profile of Mitsubishi Gas Chemical (MGC): Company Overview and Business

To Continue Providing the Technology and Products That Help People
Increase Their Quality of Life While Supporting the Sustainable Developmentof the Global Community.

Corporate Information (as of March 31, 2012)

Financial highlights (Consolidated)

Company name
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Corporate Logo

Net sales / Operating income / Ordinary income
Net sales

Major Products and Business Lines—Six businesses operated by four companies
Operating income(Millions of yen)
500,000

Ordinary income

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

400,000

80,000300,000

60,000200,000

40,000January 15, 1918

100,000

20,000Established

Incorporated April 21, 1951
Capital ¥41.97 billion (as of the end of March, 2012)
Number of employees
2,371 (non-consolidated), 5,216 (consolidated)
Number of consolidated subsidiaries

40

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

00-100,000-20,000
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Return on equity (ROE)(Millions of yen)
50,000(%)
15

40,00012

30,000920,000

6

10,000

3

0

0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

(FY)

Total assets

Net assets ratio(Millions of yen)
300,000(%)
60

200,000

40

100,000

200

Inorganic
Chemicals

Based on the hydrogen peroxide chain, which has a low
environmental impact and offers diverse functions inapplications including bleaching, sterilization, oxidation, andmetal polishing, we are developing a range of products
from industrial-use hydrogen peroxide to chemicals for use
in the electronics industry and environmental agents. We
are also involved in resinous material for functional thermal
curing, including monomers for high refractive index plastic
lenses and photoresist monomers.

Major products
Hydrogen peroxide, Chemicals foruse in the electronics industry,
Persulfates, Organic titanates,
Water treatment agents,
Environmental agents, Monomers
for high refractive index plastic
lenses, Adamantane derivatives

Engineering
Plastics

Our development is focused on engineering plastics withmechanical strength and heat resistance, such aspolycarbonate and polyacetal, which contribute to lighter
weight in automotive and machine components as
replacement materials for metals. Special polycarbonates
for optical and other applications, as well as
polycarbonate sheets (film) using our strengths in surface
coating technology, are another area of development.

Major products
Polycarbonate Iupilon®, Polyacetal
Iupital®, High-performance
Polyamide MXD6 Reny®,
Polycarbonate sheet Iupilon®
sheet, Special polycarbonate
Iupizeta®

Aromatic
Chemicals

Specialty Chemicals Company

0
2003

2004

2005

2006

2007

2008

2009

2010

2011

The desired
MGC Groupin 2021

Growth Mergers &acquisitions

FutureR&D

MGC Will2014(FY)

Information & Advanced Materials Company

Electronic
Materials

We are expanding this business with a focus on
laminate materials for printed circuit boards and entry
sheets used in mechanical drilling of printed circuitboards, and are putting efforts into halogen-freeenvironmental materials. Our BT-related materials forprinted wiring board are the pioneer of plastic
semiconductor packages, contributing tohigher-density semiconductors.

Major products
Laminate materials for printed
circuit boards (epoxy-relatedmaterials, BT-related materials),
entry sheets (“LE sheets”) used forthe mechanical drilling of printed
circuit boards

OxygenAbsorbers

Expanding the business with a focus on oxygen
absorber AGELESS® which was developed based on
the idea to create an oxygen-free packaging environmentthat prevents food deterioration by oxidation. Currently it
is not only used for preserving food freshness but also inother areas as a total solution for maintaining quality,
including for pharmaceuticals, medical devices,
electronic/metal parts, and important cultural assets.

Major products
Oxygen absorber AGELESS®,
PharmaKeep®, RP System®,anaerobic cultivation system
AnaeroPack®, desiccant
AGELESS DRY®

Note: 2021 will be MGC’s 50th anniversaryCorebusinessesNewbusinesses To be fostered

MGC Will 2011
(FY 2009–11)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Major products
Metaxylene, Metaxylenediamine,
Nylon-MXD6, Aromatic aldehydes,
Aromatic polycarboxylic acids,
Purified isophthalic acid (PIA),
Plasticizers

Total assets / Net assets ratio(FY 2012–14)

3

Develops aromatic products centered on themetaxylene chain, including aromatic aldehydes andaromatic polycarboxylic acids, which are used asintermediates in pharmaceuticals, agrochemicals andfragrances, monomers, and additives. One of our coreproducts, Nylon-MXD6, is a resin with gas barrier
properties that is made from metaxylene andcontributes to lighter containers and to preservation of
freshness in foods and beverages.

Natural Gas
Chemicals-3-10,000

New Medium-Term Management Plan “MGC Will 2014”

Financial crisis
3.11 disaster

Major products
Methanol, Formalin, Methanol
synthesis catalyst, Ammonia,
Amine, Polyol, Methyl
methacrylate, Dimethyl ether(DME), Catalase, CoenzymeQ10

Aromatic Chemicals Company

Net income

2002

First step toward thedesired MGC Group
in 2021

Includes a wide product lineup, spanning fromchemical materials such as methanol, ammonia
and their derivatives to CoenzymeQ10 made using
biotechnology. Also involved in the exploration anddrilling of petroleum and natural gas, as well as
geothermal development, which is receiving
attention as a clean energy.

(FY)

Net income / Return on equity (ROE)Tokyo Techno Park (TTP),an urban research anddevelopment center
responsible for the studyof specialty chemicals
and advanced materials.

Aiming to be a leadingchemicals group withmajor presence

Natural Gas Chemicals Company(Millions of yen)
100,000

Restructuring of lossmaking businesses

Second step toward
the desired MGC Group

MITSUBISHI GAS CHEMICAL COMPANY, INC.

4

Profile of Mitsubishi Gas Chemical (MGC): Research and Development Activities

We will Accelerate the Creation and Nurturing of New Businesses Throughthe Next Generation Business Project, Which Concentrates the Resourcesof MGC.

R&D Strategy

Research and Development Sites and Structure

Our philosophy for being is stated as follows: “MGC
contributes to societal growth and harmony by creating awide range of value through chemistry.” On thisfoundation, we position research and development as animportant means of becoming a distinctive and excellent
chemical company. Under this concept, MGC will handdown a corporate culture that values original technology
and will continue answering the needs of society.
In our existing businesses, MGC is utilizing its
technology platform to advance research anddevelopment into methanol and xylene derivatives, a wide

variety of engineering plastics and their processed
products, product groups using hydrogen peroxide to
reduce environmental load, the oxygen absorber thatrevolutionized food distribution, and more.
We have also launched development under the Next
Generation Business Project, which concentrates ourinternal resources. Through the Next Generation Business
Project we are working on the environmentally conscious
products and technologies that will contribute to futuresociety, including new structural materials, next-generation
battery materials, and medical packing solutions.

R&D goals and targets

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

MGC’s research and development sites comprise threelaboratories, plant research technology sections, anddevelopment and technology centers, each of which
carries out research related to its overseeing company.
Research and development is divided into Company R&D
and Corporate R&D. Company R&D assesses changing
market needs, and brings research and development
divisions, manufacturing, and marketing together toundertake research and development in line withcompanies’ business strategies. Corporate R&D aims tocreate core technologies from a mid- to long-term
perspective, with the Next Generation Business Project as
its main activity.
The MGC Analysis Center performs analysis andsafety testing for the entire company.

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

Technology platform
Catalyst
technology

Synthesis
technology

Polymertechnology

Compoundtechnology

Microbial
cultivation

Tokyo ResearchLaboratory
Niigata ResearchLaboratory
Hiratsuka ResearchLaboratory

Corporate Division(Next Generation
Business ProjectGroup, etc.)

Research anddevelopment sites

Information & Advanced
Materials Company

The “Next
Generation Business
Project Group”

Specialty Chemicals
Company

Hiratsuka
Research
Laboratory

Aromatic Chemicals
Company

Tokyo ResearchLaboratory

Plant
Research
Divisions

Natural Gas
Chemicals Company

Tokyo Techno Park

Gathered into one place, three research and development
divisions and the Analysis Center cooperate and share informationin the performance of research and development. Tokyo Techno
Park also explores the new themes that will carry MGC into the
future, centered on development of functional materials andresearch into applied technologies for existing products.

Niigata Research Laboratory

Corporate
R&D

Company R&D
Niigata
Research
Laboratory

Tokyo Techno Park

The Niigata Research Laboratory conducts distinctive research
activities that contribute to the realization of a sound andprosperous society and to environmental conservation. Research
focuses on chemical product and process development using
catalysts and high-pressure reaction technology, and thedevelopment of high value-added products using biotechnologies
such as continuous culture of microorganisms and recombinant
DNA technology.

Hiratsuka Research Laboratory

Niigata Plant R&D
Department
Mizushima Plant R&D
Department
Yokkaichi Plant R&D
Department
Yamakita Plant R&D
Department
Kashima Plant R&D
Department
Electronics Materials
R&D Center
Oxygen Absorbers
Techno Center

The Hiratsuka Research Laboratory focuses its research on
development of polymer materials and applied processing
technologies. The Laboratory’s research and development covers
an extensive range, from development of new high-performancepolymers and development of applications and technical services
for existing products, to basic research, new productdevelopment, application development, and technical support.

MGC Chemical
Analysis Center

5

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

6

Profile of Mitsubishi Gas Chemical (MGC): Research and Development Activities

MGC’s Environmentally-Conscious Products and Technologies,

Close up Born from the Challenge of Creating New Technologies and Values.
Looking toward the future, MGC is continuing its challenge of creating new technologies
and values that contribute to society. Several examples of environmentally conscious
products and technologies born from that challenge are introduced below.

Plant-derived raw materials
LEXTER™ biomass plastic
We have succeeded in thedevelopment of plant-derived nylon,
launched in the market as LEXTER ™ .

Clean energy
Geothermal power generation

Geothermal power generation
A form of clean energy that uses the heat frommagma, geothermal power generation creates
electricity from steam produced underground andfeatures the lowest lifecycle CO2 emissions afterhydroelectric power generation.

Geothermal power generation harnesses steam separated from groundwater heated by magma deep underground. As a volcanic country,
Japan is blessed with such geothermal resources. Together with
Mitsubishi Metal Corporation (now Mitsubishi Materials Corporation),
MGC began geothermal surveying in 1981 at the Sumikawa district ofMount Hachimantai, in Kazuno City, Akita Prefecture. In 1990, a
concurrent production test on the drilled steam production well revealed
steam production capability meeting the 50,000 kW power generation
initially planned. Subsequently, we constructed the Sumikawa
Geothermal Power Station together with Tohoku Electric Power Co., andsince 1995 have been operating the plant.
Geothermal energy is an important domestic energy source forresource-poor Japan, and is also a sustainable, renewable energy source
presenting no concerns overdepletion as with fossil fuels. Using
steam produced underground,geothermal power generation is aclean, natural energy source with thelowest lifecycle CO2 emissions afterhydroelectric power generation,
allowing it to contribute to the
Geothermal steam production equipment
reduction of greenhouse gases.
at Sumikawa

Dimethyl ether (DME)This clean fuel does not release particulate matter or SOx
when burned, making it widely applicable to portable gas
stoves, automobiles, power plants, and so on.
Methanol fuel cells (DMFC) and next-generation
battery materials
MGC is developing a portable outdoor power sourcethat uses a methanol-water solution as fuel. We arealso engaged in development of next-generation
battery materials.

Soil purification
Mild Fenton method
We provide soil purification
technology that decomposesorganic substances under neutral
conditions in combination withhydrogen peroxide and catalyst.

Air purification
Workings of the Sumikawa
Geothermal Power Station
Transmission
lines

Transformer
Steam

Silencer

Condenser

P
Pump

Reservoir

MITSUBISHI GAS CHEMICAL COMPANY, INC.

To injection
well

Cooling water effluent

Injection well

Production well

Fault

Steam

Outside air

Heatedwater

Steam,
heated water

Cooling
tower

Magma

Scrubber chemicals
We contribute to the purification of polluted
air through specialized chemicals forcirculating water in scrubbers.

∞
Fan

TurbineGenerator

7

DEOPOWER (deodorizer)
As a measure against the offensive odor from thesludge and drainage tanks around dehydratorsand hoppers, we provide deodorizers that quickly
break down hydrogen sulfide and mercaptan.

New plastics from plant-derived
raw materials (in development)
As a resin material manufacturer, we arealso actively promoting development of
resins other than LEXTER™ that are
made from plant-derived raw materials.

LEXTER™ biomass plastic
In order to prevent global warming, there has been accelerated efforts inthe development of plastics made from plants instead of petroleum.
MGC has successfully developed LEXTER™, a biomass plastic madefrom MGC’s special monomers and sebacic acid derived from thealkaline fusion of castor oil, itself processed from the castor oil plant.
LEXTER™ not only reduces petroleum usage through its use ofplant-derived raw materials, but also exhibits high strength, low water
absorption, ease of processing, and otherexcellent properties in comparison toconventional plastics. Areas in which
LEXTER™ can be used include automotive,
electrical, and electronic components, andstructural materials. Parts conventionallymade with metal can be switched to plastic Plant seeds, the raw material for
LEXTER™
through the use of LEXTER™, achieving
lighter weight in final products. This in turncan contribute to energy conservation andreduced CO2 emissions through improved
fuel efficiency in automobiles andmotorbikes, and in aircraft or trucks duringtransportation of products.
LEXTER™

Energy saving and CO2 reduction throughlighter products
Iupilon® (polycarbonate resin)
Iupilon® is the most widespread engineering plastic, used inhome appliances, devices, machinery, building materials,
and other applications as an alternative to metal and glass.
Iupital® (polyacetal resin)
Iupital® is an engineering plastic that excels in friction
resistance and weather resistance, and is widely used inapplications such as machinery parts and automobile interiors.
Reny® (High-performance polyamide resin)
An engineering plastic proprietary to MGC, Reny® is used inapplications including machinery parts and automobile parts.

Water purification

Reduction of environmental risk

Protection against corrosion with water
treatment agents
We provide water treatment agents for circulating
cooling water systems such as air-conditioning
equipment piping, contributing to reduced water use
and the prevention of performance degradation.

Hydrogen peroxide
The bleaching of paper and pulp is increasingly shifting tochlorine-free bleaching processes that use environmentally
low-impact hydrogen peroxide.

Treatment of effluent and polluted water withenvironmental chemicals
We remove the oils, fluorine compounds, causative agentsof COD, coloring ingredients, and other contaminants
contained in wastewater generated by industry.

Printed circuit boards
We are actively advancing the development ofheat-resistant materials for printed circuit boards suitable forlead-free solder and printed circuit board materials without
brominated flame retardant.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

8

CSR Management

CSR Management

MGC’s Efforts in CSR

Corporate GovernanceIn October of 1991 we established “MGC Philosophy for
Being,” and in December of 1997 the “MGC Corporate
Behavior Guidelines,” as a guide for our company to gain
the trust and understanding of society and to lead our
employees to foster confidence and pride in working for
MGC. In November 2007, we undertook a major revisionof the “MGC Corporate Behavior Guidelines” to carry out amore assertive Corporate Social Responsibility (CSR)
action and ensure MGC’s continued development as ahealthy company.
In addition, we are committed to the CSR activities
based on our medium-term plan—MGC Will 2014—
launched in 2012.

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

MGC Philosophy

Management thatcreates an inspiring work environmentand builds a dynamic group withrespect for motivations
and abilities
Creative research anddevelopment that deeply
understands needs and refines theseeds that will grow successPhilosophy
for Being

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

Principles
of Conduct

An open corporate culture forshared goals and individual growthPhilosophy for Being
MGC makes contributions
towards development inharmony with society throughthe creation of a diverse rangeof value based on chemistry.
Principles of Conduct
As a Professional Group
1. Courage unafraid of change
2. Aspiration toward lofty goals
3. Perseverance towardachieving goals
4. Communication to broaden
rapportMGC Corporate Behavior Guidelines
Mitsubishi Gas Chemical Company, Inc. (“MGC,” “the Company”
or “we”) aims to be a company that acts with sound judgment
and maintains the trust and understanding of society. The
Company operates under six behavioral principles, presented
and explained below, and will share knowledge of theseprinciples widely throughout Group companies.
Senior managers recognize that it is their role to embody thespirit of these principles, and while ensuring that they have a fullunderstanding of the necessary information inside and outside
the Company, they will take the initiative to promote a high levelof corporate ethics, and strive to develop and operate aneffective framework for this purpose through the internal control
system. Furthermore, if an incident takes place in contraventionof these guidelines, they will take command and fulfill their
obligations for internal and external disclosure, strive to identify
the cause of the incident and prevent its recurrence, and deal
with the matter strictly and fairly in respect to all parties,
including management itself.

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

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

The establishment and maintenance of a sound and transparent management system is a key
management issue, and a number of measures are being pursued with the aim of improving
transparency, ensuring fairness, and accelerating decision-making.
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 five audit & supervisory board members,
three of whom are external. They attend important
meetings as well as board meetings, conduct audits ofdepartments, survey 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
and corporate ethics, the audit & supervisory board
members conduct inspections of our business operations.
They hold regular meetings with the representative
director and receive status reports from directors andemployees on a regular basis and ad-hoc basis whenconcerning important matters, and may request
explanations as required. They also inspect important
documents concerning business execution, and require
information from directors and employees.
In order to enhance internal controls and improve
efficiency of business management, MGC has establishedan Internal Audit Division that is separate from thestatutory auditors. This office oversees the execution of
MGC and MGC Group companies in accordance with its
annual plan.

Basic Approach to Corporate Governance
The Company has adopted an executive officer systemand positioned the Board of Directors as the organization
responsible for making decisions on critical management
issues, including basic policies, and for overseeing
business execution. This has strengthened governanceand enhanced the operational framework by clarifying
functions and responsibilities. MGC has also adopted aninternal company system for its business divisions, which
has clarified responsibility and improved management
performance.
MGC aims to enhance the transparency and fairnessof management through internal audits performed byaudit & supervisory board members and will develop
effective corporate governance through appropriate
disclosure of management information.

Overview of Corporate Governance
Structure
The current management structure consists of 10
directors and 22 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, risk management structure figure

General Meeting of Shareholders
Management
Board of Directors

Auditing

Audit & Supervisory
Board
Audit & Supervisory
Board Members

Advising

Supervision / Auditing
Crisis Management
Established as atemporary framework

Business Execution

Auditing

Attorneys, etc.
Independent Auditors

ChairmanPresident
Compliance Committee
Compliance Consultation Desk

Incident Response
DivisionManagement Council
Operations Council

Overseas Safety
OfficeInternal Control
Promotion Committee

MGC Group Vision

Risk Management Committee
Inspection /Reporting /Auditing

Internal Audit Division

MGC Group aims to thoroughly realize CSR goals in all its activities while developing andgrowing sustainably on the global stage as a highly differentiated, widely recognizedchemicals group operating from a strong platform of proprietary technology.

Company Groups

Inspection

Corporate Groups

Application of MGC’s Internal
Control System
Subsidiaries

9

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

10

CSR Management

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

MGC Group Compliance
MGC established its “MGC Corporate Behavior
Guidelines” in 1997 in an effort to strengthen its
compliance system. In 2002 it established a Compliance
Committee and a Compliance Consultation Desk.
Moreover in 2004, the company laid down its “MGC Codeof Conduct” and “Compliance Regulations,” and worked
with its Group companies to ensure that they were awareof the policies and adhered strictly to the compliance rules.
Within the MGC Group we
strive to proactively meet theneeds of society by not limiting“compliance” to a set of laws andinternal rules, but by embracing abroader belief in “complying withthe law, internal rules, and social
norms, as well as recognizing ourcorporate social responsibility tocreate a company with fair,
MGC Compliance Handbook
transparent and open businesspractices.”
MGC compliance concepts

Compliance System and the Initiatives
MGC has established a Compliance Committee tooversee matters concerning the Group’s complianceprogram, headed by the Chief Compliance Officer andreporting directly to the President. In addition, we set up a“Compliance Consultation Desk” to detect and rectify
noncompliance issues at the earliest stage.
Also, we set aside October each year as “Ethics
Month” for compliance training. MGC’s intranet contains
materials covering roughly 40 types of compliancerequirements. We select some particular agenda, whichmatch the social conditions of the time, and have our staff
learn them through our e-learning system. In an effort toraise awareness of “Ethics Month,” the President actively
promotes the program by communicating the details to allof our offices.
MGC compliance structure
Board of Directors
Audit & supervisoryboard members

President
Operations Council

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

ReportRisk Management
To response to the various risks related to our businessactivities, MGC launched company-wide, comprehensive
risk management activities in 2006 with the establishmentof a Risk Management Committee.
To disseminate knowledge at the start of our activities,
we conducted seminars for top management and for
employees at all workplaces on the topics of theimportance and practice of risk management. Following
this, we listed and evaluated risks in each workplace anddepartment, considered countermeasures, and conductedbusiness continuity planning (BCP) with respect to thoselisted risks that call for prioritized response.
Currently, every year we set key themes such as
supply chain risks and information leak risks, and conduct
risk surveys. At the same time, we work to extend risk
management more deeply into the company, includingGroup companies. On an ongoing basis, we consider andimplement measures to reduce latent risks and conduct
BCP reviews.

Risk Management Promotion System

ReportCompliance Committee
Chairman (Chief Compliance Officer)
One director
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

Corporate divisions
Each company
Each affiliate

ReportCompliance OfficeInternal Contact: General Contact
Individual Contact
External Contact: Attorney
Consultation andnotification

Consultation andnotification

The Risk Management Committee, headed by the Chief
Compliance Officer, is composed of the heads of the four
companies conducting business activities, as well as of
the following departments: Corporate Planning Division;
Finance and Accounting Center; Administrative andPersonnel Division; Corporate Communications Division;
and Environment and Safety Division. The Committee
assesses risk situations from broad perspectives, andinstructs and oversees departments to prioritize risks andenact 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 orinternal control systems. We then take the appropriate
steps to prevent, avoid, reduce or divert the risk. In theevent that a serious risk is identified, we set up a specialgroup to cope with it according to internal rules.

Countermeasures for Company-wide
Risk and BCP Development
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 cooperating on
formulating countermeasures and conducting BCP.
With regard to earthquakes in particular, following lastyear’s Great East Japan Earthquake we have reviewed
and summarized the responses taken by affected
workplaces, the main office, and other workplaces. By
sharing the lessons gained from the experience andreflecting these in our BCP and training, we will strengthen
our readiness toward disaster risks, as well as our
response capabilities in the event that risks manifest.

Countermeasures for Metropolitan
Epicentral Earthquake
In 2008, MGC put special measures in place to cope witha major earthquake in the Tokyo metropolitan area (amagnitude 7.3 earthquake north of Tokyo Bay assumed
by the Cabinet Office). We introduced a safety
confirmation system and provided offices with emergency
devices such as wireless communication devices, so as toenable communication among workplaces even whenregular telephone communications are disabled or
restricted due to events such as a major earthquake. Aspart of our BCP, we conduct emergency training sessions
using these systems and equipment each year, so thateven if headquarters becomes paralyzed, each of ourfacilities such as plants and research centers may
continue supporting customers and maintaining otherservices, supplementing the headquarters’ function.
In addition, we have planned for scenarios in which
working employees and visiting guests face difficulties
returning after a disaster. We have stocked food, drinking
water, and other materials to allow persons in thecompany to remain in offices for at least three days. Thispreparation was actually put to use during last year’s
Great East Japan Earthquake.

People involved in MGC
Group’s business activities

Wireless communication device for
emergency use

11

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Disaster reserve supplies

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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Stakeholders and MGC

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

Together with the Community
MGC is deeply aware of its role as a member of society,working to improve its position of trust through a variety ofcommunication channels, and promoting activities that
contribute to the community.

Interaction with local communities

Disaster aid

Participation in tradeshows

In response to requests from nearby schools, we conduct
workplace study tours at various locations. We also
deepen our interactions with local residents byparticipating in summer festivals, conducting blood drives,and engaging in other activities.

The MGC Group aided the areas hit by floods in Thailand
in 2011 by donating to the Rajaprajanugroh Foundation
established by His Majesty King Bhumibol Adulyadej.

MGC actively participates in various exhibitions as a way
to listen to the voice of our customers, which in turn helps
us to develop better products.
For example, we exhibited chemical polishingsolutions together with four Group companies at the TPCA
(Taiwan Printed Circuit Association) Show in November
2011. Our participation lets us introduce the products andalso leads to new product development that meets
customers’ needs.

Niigata Research Laboratory /Local university students taking
a workplace study tour

President of THAI POLYACETAL, President of AGELESS(THAILAND), and Director of MGC THAILAND (THAILAND),
all MGC Group companies, present a donation and letter tothe Representative of the Foundation.

Participation in local dialogue meetings
To explain our environmental conservation and process
safety activities to local communities and deepen mutual
understanding, MGC has continued to participate in local
dialogue meetings held by the Japan Responsible CareCouncil (JRCC).
We participated in the fourth Responsible Care Niigata
North District Local Dialogue Meeting in October 2011 andthe eighth Yamaguchi West District Local Dialogue
Meeting in November. We are making preparations to act
as the secretariat company for the Yamaguchi West
District Local Dialogue Meeting in FY 2012.

Yamakita Plant / Providing hands-on
learning to local junior high school
students

Our Business Partners
Efforts to improve customer satisfaction
Niigata Plant, Niigata Research Laboratory / Competing against
local government bodies in a mikoshi shrine competition at the
Niigata Hamamatsu Festival.

Niigata North District Local
Dialogue Meeting

Yamaguchi West District Local
Dialogue Meeting

Donation of science kits
To boost interest in science among children, since 2008
we provide junior high schools near our facilities withchemistry kits to make their own portable heating pads.
These kits teach the students about the oxidation of iron,which generates heat and makes the pads warm.

Mizushima Plant / Conducting a blood drive

Building better relationships with partnercompanies

Environmental cleanup activities at workplacesurroundings

At the Logistics Department, Purchasing & Logistics
Center, we work with our partner, transportationcompanies, to ensure the safety of our supply chain, toimprove the quality of distribution, and work toward a
modal shift. Moreover, from a compliance standpoint we
conduct audits of our partner companies and strive tobuild even stronger relationships with them.
In addition, each of our offices conducts a Safety Day
together with partner companies, enhancing safety
awareness.

At each of its sites MGC participates in voluntary cleanup
activities such as roads and nearby riverbeds.

Content of science experiment kits

In order to provide customer satisfaction to our clients,from our business partners to end consumers, MGC is
committed to providing safe and reliable products andservices. As a component of this commitment, all of ourplants have received ISO 9000 series accreditation forinternational quality management.
We also conduct cu.stomer satisfaction surveys in aneffort to constantly improve the quality of our products
and services.

Donating science experiment kits
to junior high schools affected by
the disaster
Niigata Plant, Niigata Research
Hiratsuka Research Laboratory /Laboratory / Taking part in theRiverbed cleanup along the“Operation Clean” held by the local Sagami River
government and other organizations
at the Niigata East PortMGC Group booth

Employees
Personnel system and human resources
development
MGC’s management concept is, “making contributions
toward development in harmony with society through thecreation of a diverse range of value based on chemistry.”
Our desire is to foster a team of professionals,
empowering individuality in each employee and creating
an energized workplace.

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. It is a systemthat treats all employees equally, providing them with arange of career opportunities in line with individual
aspirations that meet their role, achievements andcapabilities.

Reducing CO2 emissions
through modal shift

13

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

14

Stakeholders and MGC
Together with Stakeholders

Human resource development

Employment of persons with disabilities

In order to create an environment for each employee toachieve individual goals, we are working to enhanceself-development programs (language training anddistance learning, support for qualifications, external
training, etc.) for each rank and sector using tools such as
skill-development training and distance education.

MGC’s employment rate for persons with disabilities was
2.16% (legally mandated rate: 1.8%) in FY 2011. We
maintain a workplace environment that allows persons
with various disabilities to display their individuality, andwill continue actively working to employ persons withdisabilities.

Retention of new employees (three years after joining)

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

Number of new employees
Number of employees at thirdyear after joining, as of April
Retention

FY 2007

FY 2008

FY 2009

FY 2010

47

69

84

88

47

69

81

87

100.0%

100.0%

96.4%

98.9%

FY 2009

FY 2010

FY 2011

1.94

1.92

2.16

2.16

Employment rate (%)

Work-life balance* Fiscal year refers to fiscal year in which new employees joined company.

In response to measures that raise the eligibility age for
special payments of the old age pension, we haveintroduced a retiree re-employment scheme to ensure astable life after retirement. MGC provides in principle all
employees the opportunity to continue working if they arehealthy and desire to do so. Having motivated employees
continue to play an invaluable role in the company helps
to make it a vibrant workplace.

At MGC we believe that a proper work-life balance is vital.
To help promote this idea we have implemented a
no-overtime day, encouraged our employees to take their
paid leaves, and introduced flextime as well as a systemthat allows employees to roll-over expired annual leave.
In order to support employees with children or aging
parents who need assistant care, we introduced achildcare leave and nursing-care leave system, in addition
to a system allowing shorter working hours, to help
employees balance work with family life.
In 2011, we revised the childcare leave system,
expanding the applicable period of the childcare leaveand of the shortened working hour system. In 2012 werevised our nursing-care leave system for easier use by
employees, expanding the system’s applicable period
and allowing split leaves.

Re-employment of retirees

Maternity leave

Employee tenure (as of March 2012)
Male

FemaleTotal

Average age

41 years oldand 2 months

40 years old
and 5 months

41 years oldand 2 months

Number of years worked

18 yearsand 6 months

18 years
and 0 months

18 yearsand 6 months

Re-employment

FY 2008

FY 2009

FY 2010

FY 2011

Workers desiring
re-employment

65

68

44

56

Re-employed workers

65

68

44

56

Re-employment rate

100.0%

100.0%

100.0%

100.0%* Fiscal year = end of September + end of March

Support for social contribution activities
We provide support for employee social contribution
activities. In 2009, we introduced a special paid leavesuch as paid volunteer leave or paid donor leave.
We also provide employees with paid leave for public
service activities such as the saibanin (jury) system,
creating an environment in which employees can actively
contribute to society.

15

FY 2008

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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.
We also conduct mental health training during
sessions designed for new employees and employees
receiving a promotion. For new employees in particular,
we have a “mentor system,” which helps new staff gain
independence as both an MGC employee, and as amember of society.

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

FY 2008

FY 2009

FY 2010

FY 2011

5

4

3

4

6 (1)

4

4 (1)

5 (1)

* Number in ( ) indicates men on childcare leave* For women, the fiscal year of child care leave is determined by the first day ofmaternity leave.

Family care leave
Employee exercising leave

FY 2008

FY 2009

FY 2010

FY 2011

1

0

1

0

Mental health initiatives
It is important that our employees maintain their physicalhealth, at MGC we have implemented programs toensure mental health as well. The Employee Assistance

Respect for human rights
At MGC, we strictly adhere to our Corporate Behavior
Guidelines and MGC Code of Conduct, to respectindividual personality and human rights, to not hurtanyone by discriminating against them based on theirrace, gender, nationality, age, religion or place of origin.
We provide separate training courses on human rights for
new employees and managers to raise awareness ofhuman rights among all employees.
Our Code of Conduct also articulates that sexual
harassment and power harassment are prohibited. We
are committed to preventing them within our company,
and reinforce this principle through training sessions,internal communications and a special consultation desk.
These guidelines and code—along with guidelines forthe prohibition of child labor and forced labor—have beencommunicated to our Group companies overseas.

Union / labor-management relations

With Shareholders and Investors
Basic policy on profit distribution
Returning profits to shareholders is considered one of
MGC’s most important management issues. Distributions
are determined by a combination of performance-linked
factors and stable dividends.

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

Briefings for institutional investors andsecurities analysts, facilities tours
For institutional investors and securities analysts, we holdearnings briefings twice a year (at the midterm closing
and annual closing) as well as study tours and businessbriefings. In FY 2011 we held a study tour of MGC
Electrotechno Co., Ltd. and a briefing on our methanol
business.

Earnings briefing for the term ended
March 2012

Methanol business briefing

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 holdmanagement council meetings to discuss issues related
to management, and organize a joint management
committee (such as a Personnel System Review
Committee, etc.) for more specific agendas. Together wehave revised the personnel system, the re-employment
system, and retirement plans. Other issues such as
wages and bonuses are determined through yearlycollective bargaining and other negotiations.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

16

Responsible Care and MGC

Environment and Safety Management
Sustainable development, building a recycling-based society, and safe operations are the three
critical business challenges that MGC faces. Responsible Care (RC) is our response to both theenvironment and safety issues, and has been rolled out throughout the MGC Group.

The MGC Group

Policies on Environment and Safety
The MGC Group, as an important member of the community, makes an effort to earn social
trust by recognizing our responsibility to contribute to the community, to secure the environmentand safety of the community, and to put our corporate activities in harmony with the protectionof the global environment under the principle of sustainable development.

Environmental and Safety Targets

Zero Accident, Zero Occupational Injury, and Environmental Preservation

Fundamental Policies

Ensuring health and safety in our operations
Ensuring security management of facilities and increasing
self-protection technologies and skills
Reducing environmental burden in business activities
Ensuring safety in use, handling, and disposal of products
Development of environmentally-friendly and safety-conscious
products and technologies

Message from the Director in Charge of Environment and Safety
MGC is continuing its company-wide project to eliminate accidents and foster a culture of safety, with allplants incorporating TPM* activities and 5S activities as they work to achieve the project’s objectives.
We are working to promote communication among plants, deploy best practices horizontally throughout
the company, and improve the on-site capabilities of both individuals and organizations. Moreover, toeliminate equipment troubles and enable long-term stable and safe operations, we are undertaking avariety of initiatives with regard to aged equipment and review of equipment specifications.
On the environmental front, we are working to achieve the numerical targets we have set for all
matters related to energy conservation, and are continuing to reduce chemical substance emissions
and industrial wastes. Looking ahead, we intend to further advance our environmental conservation
activities both at our domestic and overseas affiliates.
A couple of MGC Group plants suffered damage in the Great East Japan Earthquake that struck on
March 11 of last year. Based on the lessons learned from that experience, throughout the company weare reviewing our damage scenarios for a large-scale earthquake and are evaluating the functions of ouranti-disaster headquarters, risk management for manufacturing equipment, and enhancement ofdisaster preparation equipment to accommodate not only seismic motion but also ground liquefaction
and major tsunami. We view the minimization of damage to our plants and their environs as one of our
responsibilities as a company, and will continue to enact measures to do so.

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

RC Audit in 2011
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 andauditing high importance audit items for the year.
In 2011, we conducted audits of our pollution
prevention management as well as our handling ofindustrial injuries and accidents, from determination of
cause to corrective measures.
■ Audit period

Director in charge of environment and safety

July – October, 2011
■ Auditees

Environment and safety meeting

5 plants, 3 laboratories (including Tokyo Techno Park),business divisions of 4 companies, Purchasing &Logistics Center

MGC Group Environment and
Safety Council
GHG task force
Responsible Care audit

Building society’s confidence in us

Audit of certified high pressure gas plants■ Audit findings

Environment and safety inspection

January 2012Managing Executive Officer* TPM: Total Productive Maintenance. This refers to improvement of production with the participation of
all personnel.

Ensuring environmental conservation and safety in the logistics ofobtaining raw materials, and storing and delivering our products

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

Makoto Mizutani

Environment and safety manager meeting

Full conformity (18 cases) Non-conformity (1 case)
Improvement orders (18 cases) Comments (21 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.

Administrative divisions
Companies

Business divisions
Planning anddevelopment divisions

MGC Group

PlantsEnvironment andsafety departments

Researchlaboratories

Environment andsafety departments

Corporate headquarters

Kashima Plant / Overall audit

Mizushima Plant / Division audits

Environment and safety division(Administrative office of RC)

17

MITSUBISHI GAS CHEMICAL COMPANY, INC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

18

Responsible Care and MGC

Results and Plans for RC Activities★★★ : Achieved

RC CodeOccupational Healthand Safety

Process Safety andDisaster Prevention

RC Medium-Term Plan
2011–2014

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

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

Environmental
Preservation■ Reduce emissions of PRTR substances and VOCs.

• Focus reductions on substances with highemissions volumes.

■ Achieve zero emissions of waste.
■ Workplaces that achieve zero emissions willfurther reduce the final disposal volume.

■ Provide product safety information.

• Reﬂect up-to-date information in MSDS.

Chemical and
Product Safety

2012 RC Action Plan★
★

1. Continue daily activity (hazard prediction activities, Hiyari-Hatto(near miss) identification activities, 5S activities).
2. Improve evaluated risks through risk assessment.
3. Enhance communication and link communication toeradication of human error.
4. Make use of accident and occupational injury analysis methods.
5. Enhance daily checks (inspections) and make sure that results
are communicated.
6. Clarify joint disaster preparation scopes of responsibility withclose affiliates and resident partner companies, and reconfirm
responsibilities through drills.
7. Enhance emergency first response.
8. Conduct activities aimed at industrial accident prevention in
partner companies (equipment improvements, educational
support for partner companies’ employees, enhancement ofcommunication with partner companies, etc.).

★
★

1. We will advance energy saving measures while reducing
equipment troubles to assure stable operation, and will
improve energy consumption rate and greenhouse gas
emissions rate. In particular, we will establish concretemeasures for workplaces at which steam trap check-ups andsteam equipment energy conservation check-ups were
performed.

1. We will set priorities for reducing emission volumes of PRTR substances andVOCs, and will draft and enact reduction plans with clear target values.

1. For sites holding substances with high emission volumes, we created and executedplans for reducing substances, specifically 1,2,4-trimethyl benzene and xylene. We
reduced FY 2011 emissions of Japan Chemical Industry Association PRTR-targeted
substances by 36% compared with FY 2010. We reduced our emission of VOCs by 41%
compared with FY 2004.

★
★
★

2. We will set priorities for reducing emission volumes of PRTR
substances and VOCs, and will draft and enact reductionplans with clear target values.

1. Zero emissions of waste• Sites where targets were not achieved will set a landﬁll reduction target andstrive to achieve zero emissions.
• Sites where targets have been met will continue their efforts to further reduce
final landfill.

1. We continued our achievement of zero emissions at 8 workplaces in FY 2011. Finallandfill volumes totaled 130 tons in FY 2011, an increase of 34% from the 97 tons in FY
2010.

★
★
★

3. Sites where zero emissions of waste targets were notachieved will set a landfill target and strive to achieve zero
emissions. Sites where targets were achieved will continue
the practice of zero emissions, and undertake further
reductions in final disposal volumes.

★
★
★

1. Reflect up-to-date product safety information in MSDS.
• Provide accurate information on hazards to customers, etc.
• GHS support for in-development product MSDSs(Implement GHS support for in-development product MSDSs
by December 2012.)• Review of our MSDS management system★
★
★

2. Implement in-house education on risk assessment.
3. Set implementation plans for risk assessment.
(Promote safety assessment during new productdevelopment.)
4. Adapt to and support overseas laws and regulations.
5. Promote development of products with lower environmental
burden and energy saving technologies.

2011 Achievements

1. Continue daily activity (hazard prediction activities, Hiyari-Hatto (near miss)identification activities, 5S activities).
2. Practice risk assessment.
3. Enhance communication and link communication to eradication of human error.
4. Pursue valid corrective measures against accidents and occupational injuries.
5. Establish periodic inspections of pipes and other equipment; create andimplement maintenance plans.
6. Establish or review joint disaster prevention systems with neighboring affiliates.
7. Devise emergency response training.
8. Provide guidance for partner companies’ occupational injury prevention.

1. We are actively engaging in activities on an everyday basis. In particular, we improved the rate ofparticipation in identifying near-miss incidents and worked to share examples of such incidents.
2. We performed risk assessments, using near-miss incidents to identify risks.
3. We worked to enhance communication using opportunities such as workplace
get-togethers and patrols. We also held exchanges of ideas among plant managers,
general managers, and division staff.
4. We incorporated analytical methods for comprehensively identifying causes of accidents
and occupational injuries (“why” analysis, 4M, etc.), and worked to connect these toeffective corrections.
5. We set maintenance plans incorporating equipment inspection cycles, and conductedsafety inspections.
6. We reviewed the scope of our joint disaster preparation with close affiliates and ourdisaster communication structures, and conducted drills.
7. We devised and implemented emergency response drills at all workplaces.
8. We enhanced our cooperative framework for disaster preparation with partner companies,
including sharing of disaster information, risk assessment, and safety education.

■ Promote development of products with lower

environmental burden and energy saving
technologies.

19

1. By working on energy saving measures while reducing equipment troubles toassure stable operation, we will improve our energy consumption rate index andreduce greenhouse gas emissions rate.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

1. Energy saving
Despite a 1% year-on-year improvement in the energy consumption rate index in FY
2011, the resulting 95% energy consumption rate index compared with FY 1990 failed tomeet the target of the Medium-Term Plan (85% of the FY 1990 level). We have
implemented energy conservation measures such as optimization of equipment operating
conditions, obtaining an energy savings effect equivalent to 8,000 kl of crude oil.
1. Greenhouse gases
Our FY 2011 greenhouse gas emissions rate saw a roughly 2% year-on-year
improvement to 79% of FY 1990 unit emissions. However, this failed to meet the targetof the Medium-Term Plan (75% of the FY 1990 level).

1. Reflect up-to-date product safety information in MSDS.
(Provide accurate information on hazards to customers, etc.)

1. We conducted a review of product MSDSs in conjunction with GHS support, and provided
final versions to customers and other concerned parties.

2. Implement in-house basic education on risk assessment.
3. Set implementation plans for risk assessment.
4. Conduct proper notifications and management in compliance with the EU REACH
and other regulations.
5. Promote safety assessment during new product development(e.g., acute toxicity, Ames test, primary skin irritation).
6. Promote development of products with lower environmental burden and energy
saving technologies.

2. At all workplaces, we conducted basic education on risk assessment for chemical
substances, including an overview of revisions to the Law Concerning the Evaluation ofChemical Substances and Regulation of Their Manufacture, etc.
3. We are considering and making plans for participation in the JIPS risk assessment
activities of the Japan Chemical Industry Association.
4. We made additional preliminary registrations for two substances. We also confirmed categories
according to CLP rules, submitted filings, and provided support for filings by importers in Europe.
5. Safety tests performed for new products in 2011 totaled 28 (10 acute toxicity tests, 11
Ames tests, and 7 primary skin irritation tests).
6. We developed bioplastics and halogen-free materials as environmental impact-reducing products.
In energy-saving products, we also advanced our development of highly functional resin materials
that achieve energy conservation as lighter-weight replacements for metals and glass.

■ Conduct product risk management.

• Perform risk assessment and risk reduction.
• Adapt to overseas regulations for product risk
management.
• Conduct appropriate assessment of new products.

★ : Further efforts required

Assessment

2011 RC Action Plan

■ Reduce the energy consumption rate index to

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

★★ : Mostly achieved

MITSUBISHI GAS CHEMICAL COMPANY, INC.

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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 accident
and zero occupational injury.

Certified High Pressure Gas Plants

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

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

Change in lost time injury frequency rate*1
2007

2008

2009

2010

2011

MGC

0.59

1.43

0.57

0.28

0.54

Chemical industry

1.10

0.84

0.72

0.72

0.88

Manufacturing industry

1.09

1.12

0.99

0.98

1.05

We conduct audits of our certified high pressure gas
plants under the direction of the Director in charge ofenvironment and safety (Process Safety Management
General Controller). Accordingly, our Niigata Plant andMizushima Plant are “high pressure gas safety
management code certified” high pressure gas plants.
The aim of our audits is to objectively evaluate the highpressure gas safety management system and thecertified inspection management framework to ensurethat they are working effectively.

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

In response to yearly increases in accidents andabnormalities, as well as a serious accident that
occurred at our Niigata Plant in December 2007, MGC
launched the companywide Accident Zero (AZ) Project inFebruary of 2008. Over the three years since we havecontinued activities to strengthen education andcommunication under the Project.
As these activities have become formalized andestablished in our laboratories we ended the project, andin FY 2011 rolled out focused activities in our plants as
AZ Project Phase II (hereinafter “AZ Step II”). Over its
three-year period of activity, we are advancing AZ Step II
under two key directions: improvement of “on-site
capabilities” in individuals and organizations, andprevention of equipment and operational troubles throughcooperation with the Production Engineering Division.
In FY 2011, every plant undertook working group
activities across the organization and worked to resolve
issues common to all plants. Furthermore, MGC worked
to improve the visibility of on-site issues and ourcapability to respond to those, through TPM activities
and education on equipment management.
We connected these initiatives to the energizing ofsafety activities throughout the company, by means
including liaison conferences for the special safetyadministrators responsible for AZ activity promotion inplants, and information exchanges through AZ activity
inter-plant meetings. Through cooperation between theEnvironment and Safety Division and Production
Engineering Division, our support for accident andtrouble countermeasures at plants is showing results.

Mizushima Plant / Disaster
preparation training

Niigata Plant / Disaster preparation
training

Kashima Plant / AZ workplace
get-together

Niigata Plant / TPM check-up by
the plant manager

Hiratsuka Research Laboratory /Firefighting training

Niigata Research Laboratory /Fire hose training

Niigata Plant / Inter-plant meeting(overall discussion)

Mizushima Plant / Inter-plant meeting(working group-level discussions)*1 Frequency rate: Number of occupational injury casualties per one million working hours

Certified process safety management system for high pressure gas

Change in lost time injury severity rate*2
MGC

President

2007

2008

2009

2010

2011

0.01

0.07

2.14

0.01

0.01

Environment and safety meeting
Director in charge of environment and safety (Process safety management general controller)
Environment and safety division at Head Office (Administrative action for certified self-maintenance)

Chemical industry

0.04

0.07

0.13

0.04

0.04

Manufacturing industry

0.10

0.10

0.08

0.09

0.08

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

Audit of supervisory organization
for certified facility inspection

Preventing Occupational Injuries
at Partner Companies
Mizushima Plant / KYT training

Tokyo Techno Park / Emergency
medical training

Yamakita Plant / 5S presentations

We share information on occupational injuries, perform
risk assessments, provide safety education, and takeother actions aimed at industrial accident prevention in
partner companies, while we work to enhance ourcooperative frameworks. In some plants, we also
conduct audits and safety inspections of partnercompanies.

Kashima Plant / Workplace safety
risk assessment presentations

Mizushima Plant / Regular
Maintenance Safety Assembly
Kashima Plant / New equipment
safety inspections by the Healthand Safety Committee

Audit of process safety management system
Certified plant

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

Appropriate certified facility inspection
Confirmation of status of implementation

Plan
Act Safety management system Do
Check
Certified facility
inspection
department

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

Responding to Emergencies

Yokkaichi Plant / Traffic safety
instruction for partner companies

Niigata Plant / Safety Assembly

Safety Performance
In 2011, occupational injury incidents resulting in losttime totaled two cases at MGC, and seven cases atpartner companies.

21

Accident Zero (AZ) Project Phase II

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Process Safety and Disaster
Prevention Activities
To prevent the occurrence of accidents and injuries, it isimportant to ensure the safety of production processes
and the soundness of facilities. At each site we conduct
inspections and renewal planning for facilities, andprioritize inspections, repairs and renewals according toeach aging facility’s risk and importance.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

22

Responsible Care and MGC

Responsible Care and MGC

Environmental Burden of Business Activities

Environmental Accounting

The environmental burden of our business in FY 2011 is displayed in the table below. Numeric values
are totals for production sites.
Each MGC Group business has continued to make headway in making efficient use of input
resources and making reductions in environmental emissions.

Using the Ministry of the Environment’s guidelines on environmental accounting, the cost ofenvironmental preservation through MGC’s business activities and the economic result of those
activities have been calculated quantitatively, and published for the public’s review.

1
Total of MGC Group*

Environmental Preservation Cost

MGC alone

FY 2010*

FY 2011

FY 2010*

FY 2011

Number of production sites: 38

Number of production sites: 38

Number of production sites: 7

Number of production sites: 7

2

INPUTS

Units

Energy consumption including
purchased electricity(crude oil equivalent)

1,000 kℓ

Water consumption

1,000 m3

FY 2010636

2

FY 2011647

43,997

44,691

Tap water%

2

2

Industrial water

%

61

59

Breakdown Groundwater

INPUTSUnits

FY 2010

FY 2011

Energy consumption including
purchased electricity(crude oil equivalent)

1,000 kℓ

533

550

Water consumption

1,000 m3

38,80439,493

Tap water%

1

1

Industrial water

%

60

59

%

1

1

Breakdown Groundwater

%

4

4

River water

%

31

33

River water

%

36

37

Others%2

2

Others%2

2

OUTPUTSUnits

FY 2010

FY 2011OUTPUTSUnits

FY 2010

FY 20111,000 tons

1,275

1,303

Emissions to atmosphere
Greenhouse gas emissions(CO2 equivalent)

Emissions to atmosphere
Greenhouse gas emissions(CO2 equivalent)

1,000 tons

1,487

1,498

SOx emissions

tons

179

148

SOx emissions

tons

151

112

NOx emissions

tons

721

661

NOx emissions

tons

667

605

Soot and dust emissions

tons

35

49

Soot and dust emissions

tons

29

31

Released to water area
36,59541,386

Drainage volume

1,000 m3

32,83637,760

COD emissions

tons

299

262

COD emissions

tons

260

232

Total nitrogen emissions

tons

292

253

Total nitrogen emissions

tons

269

230

Total phosphorus emissions

tons

56

55

Total phosphorus emissions

tons

54

53

Generation of waste

Generation of waste
tons

48,70644,324

Transfer to off-site

tons

31,84033,831

Final landfill

tons

1,652

1,538

(including amount sold)Notified substances under PRTR Law

Amount recycled

tons

26,61922,355

Transfer to off-site

tons

9,195

8,101

Final landfill

tons

91

124

(including amount sold)Notified substances under PRTR Law

Emissions (air)

tons

1,807

1,453

Emissions (air)

tons

627

327

Emissions (water)

tons

21

16

Emissions (water)

tons

13

12

Emissions (soil)

tons

0

0

Emissions (soil)

tons

0

0

Transfers

tons

1,026

1,173

Transfers

tons

551

540

*1 The data used for the total of MGC Group is the sum of the main domestic manufacturing and processing businesses.
*2 For reasons related to the closing fiscal year of the RC Medium-Term Plan 2010, MGC’s Tokyo Techno Park (TTP) is counted among production sites in CSR Report 2011.
Because TTP is treated as a non-production site from CSR Report 2012 onward, FY 2010 data differs from CSR Report 2011 in some values, including number of production sites.

23

Investments
The total investment related to environmental
preservation activities in FY 2011 was 950 million yen. Its
main components were soot control through boiler
combustion improvements and upgrading of tank ventgas collection equipment at the Mizushima Plant.

Expenses
Total expenses related to environmental conservation
activities in FY 2011 were 10.09 billion yen. Of these, thehighest expense was 3.9 billion yen for research anddevelopment, accounting for 39% of the total. The next
highest was 1.9 billion yen for environmental
conservation costs, representing 19% of the total.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

In FY 2011 we improved our energy consumption and
GHG emissions per unit of production. Performancevalues are shown on the Global Warming Prevention
page.

Economic benefit
We generated additional revenue by selling valuable
waste for recycling and re-use by other companies, andthrough cost savings from reduced energy consumption.
Economic benefit
Item

Amount(millions of yen)

Profit on sale of valuable wastes, etc.

90

Title
IncomeReductionof expenses Effects due to energy saving

280

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

1,000 m3

Apart from the reduction in environmental burden that
resulted from our environmental preservation efforts, werealized positive economic benefits such as income fromthe sale of wastes.

Environmental preservation benefit

Released to water area

Drainage volume

Amount recycled

The cost of environmental preservation activities
includes the investment costs of installing environmental
preservation facilities and the expenses associated withrunning and managing those facilities, as well as the costof research and development into environmentallyfriendly products.

Benefits of Environmental Preservation
Activity(millions of yen)

Main areas of activity

Investment

Expenses

Renewal, repairs, and maintenance of emission gas
recovery equipment

166

610

Renewal, repairs, and maintenance of wastewater
treatment facilities

120

1,777

2

0

11

1,908

Material and thermal recycling of waste

0

1,109

Up or down stream cost

Retrieval and reuse of product containers; green
purchasing difference amount043

Management activity cost

Maintaining green spaces; maintaining environment
management systems

67

579

R&D cost

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

588

3,959

Social contribution cost

Clean-up and greening of surrounding areas;
support for environmental conservation organizations

0

8

Environmental damage costCompensation for environmental preservation

0

122

955

10,115

Onsitecost

Air pollution prevention
Pollution
prevention Water pollution prevention
cost
Soil, Noise

Prevention of soil infiltration; odor control

Maintenance of cogeneration facilities; replacement
Global environmental preservation costof ozone layer-destroying substances
Resources recycling cost

Total

* Compliance with the Ministry of the Environment’s Environmental Accounting Guidelines 2005
Period: From April 1, 2011 to March 31, 2012
Scope: MGC only
Methods: Investments are proportionally related to the approved or enforced amount of capital expenditure to environmental preservation. Expenses are proportionally related to the ratioof environmental preservation and include depreciation allowance.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

24

Responsible Care and MGC

Global Warming Prevention
At MGC, each sector—manufacturing, transportation, office and residence—is making efforts toprevent global warming.

Trend of CO2 emission

MGC Overall Performance
FY 2011 energy consumption and greenhouse gas emissions for all of
the company’s business activities were as follows. Emissions fromplants’ manufacturing divisions account for over 97% of greenhousegas emissions.
For plant manufacturing divisions that are the focus of initiatives,
we have set the following objectives for our measures.

By rail
By ship
CO2 emission(1,000 tons)

Energy consumption
Greenhouse gas(1,000 kl crude
emissions (1,000
oil equivalent)
tons-CO2 equivalent)■ Energy consumption rate:

Plant Manufacturing Division

550.0

1302.9Transportation Sector (shipper)

9.3

24.6

Office Area

5.7

9.0

565.0

1336.5Business activities overall

Reduce to 0.85 or less compared with FY 1990 levels by FY 2014

40

30%

10

2006

conservation effect of these measures was equivalent to8,000 kl of crude oil, and the greenhouse gas reduction
effect was equivalent to about 17,000 tons of CO2.
To advance new energy conservation measures, wefollowed the energy conservation check-ups of steam
equipment at the Mizushima Plant in FY 2010 withcheck-ups at the Niigata Plant in FY 2011. We generated
76 energy conservation suggestions through thecheck-ups, with an expected total energy conservation
effect equivalent to 7,800 kl of crude oil. Among these,
we are considering details of energy conservation plansfor FY 2012 and later, involving about 30 energy
conservation suggestions that we expect will deliver
relatively early returns on investment.

FY 2011 energy consumption and greenhouse gas(GHG) emissions in the Plant Manufacturing Division
increased 2–3% year-on-year due to increased
production. At the same time, energy consumption rate
per unit of production, for which numerical targets havebeen set as a part of initiatives, improved 0.6%
year-on-year and GHG emissions rate improved 2.5%
year-on-year.
We implemented over 30 energy conservation
measures in FY 2011, including thermal recovery ofreaction heat, a switch to inverters for pump and fan
motors, and optimization of operating conditions for
fractionating columns and boilers. The energy

Initiatives in the Transportation Sector

Trend of energy consumption amount and consumption rate
Energy consumption rate

0.89

0.95

Target of rate in FY 2014
Energy consumption rate index(FY 1990 = 1)1.00
1.0
0.95 0.95

800

0.8

600
400

544

554

569

562

577

531

430

493

533

550

0.2

0
2003

2004

2005

2006

2007

2008

2009

2010

2011

0.0
(FY)

As an energy-saving measure in our Transportation
Sector, MGC is undertaking initiatives focused on
efficiency improvements in truck transport (use of larger
transport lot sizes and improvement in loading ratio) andmodal shift to rail transport.
Although transport weight increased in FY 2011,shorter average transport distances led to a reduction intransport volume in ton-kilometers (i.e., transport weight× transport distance). CO2 emissions declined along withtransport volume. In addition, the CO2 emission rate

Trend of GHG emission amount and emission rate

Trend of volume of transportation

Emission amountGHG emission amount(1,000 tons)

By rail
By ship
CO2 emission(tons)

2,500

1.00

0.91

2,000

1,000

Emission rate index

Target of rate in FY 2014
GHG emission rate index(FY 1990 = 1)
1.00.86 0.83 0.87 0.82 0.83 0.84
0.81 0.79

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

1,500

1,184

1,334

1,303
1,166 1,275

0.8
0.6
0.4
0.2

0

0.0
(FY)

2003

2004

2005

2006

2007

2008

2009

MITSUBISHI GAS CHEMICAL COMPANY, INC.

2010

2011

By truck

600
500

4.7%

5.3%

400
300

500

1990

25

0.6
0.4

200

1990

68%

0.99

62%

62%

5.6%
64%

200
100

6.0%

33%

33%

0
2006

2007

30%
2008

6.4%
65%

28%
2009

64%

30%
2010

0.97

30%

68%

2007

1.0

0.95

0.93
0.9

2.1%
2.2%
33%

2.6%
37%

2.5%
33%

2.1%
34%

65%

64%

0.8

0.7

65%

0

Manufacturing Plant Initiatives

0.89

0.98

20

Reduce to 0.75 or less compared with FY 1990 levels by FY 2014

0.87

1.9%

30

■ Greenhouse gas emissions rate:

Energy consumption amountAmount(1,000 kl as crude oil equivalent)
1.00
1,000
0.93
0.88

1.00

CO2 emission rate index
CO2 emission rate index(FY 2006 = 1)

By truck

2008

61%
2009

2010

2011

0.6
(FY)

improved about 2% year-on-year, marking a roughly 7%
improvement in the six years since FY 2006.
From here out, we are planning energy-saving
measures that include greater lot sizes for ship transport
and the shortening of shipping distances through areview of shipment sites.

Activities in the Office and Employee
Residence Area
We conduct a number of proactive measures to reduceenergy consumption at our head office and laboratories.
These include ‘Cool Biz’ during summer, ‘Warm Biz’ during
winter, and turning off lights and computers when not in use.
In FY 2011 in particular, we conducted
electricity-saving measures chiefly at three workplaces (themain office, Tokyo Techno Park, and the Hiratsuka
Research Laboratory), which were targeted for a 15% cut
in electricity usage to address the power shortage issue.
The result was a reduction of over 15% year-on-year inannual energy consumption.
In our employee residence area, we delivered email
messages to employees introducing examples of energy
conservation measures centered on saving electricity, andat the same time called upon employees to undertake
energy conservation using household eco-account books.
Trend of energy consumption in the business operations division

FY 2011 performance data.
The system is intended to increase efficiency in thecompilation of increasingly complex environmental
information and in reporting tasks. We also built thesystem to use in understanding problem areas withineach production process and in verifying the effects ofenergy conservation measures, particularly throughassessment of per-device/per-unit data on energy
consumption and GHG emissions.
We are working to enhance the system’s functions toenable more frequent data compilation, and intend to put it
to use in collection and analysis of environmental
information from Group companies, including thoseoverseas.

Development and Utilization of Clean Energy
In Niigata Prefecture, MGC has been actively conducting
exploration and development work of natural gas, a clean
fuel that has low emissions of CO2 for each calorie ofenergy, as well as less sulfur and other impurities. We
have deployed natural gas at our Niigata Plant, where it isused as both a raw material and an energy source.
We are also promoting the switch to natural
gas-related fuels, such as city gas and LNG, at locations
other than our Niigata Plant, and year by year are raising
the ratio of natural gas within our energy consumption. In
FY 2011, fuel conversion at our plants came to an end,
with natural gas-related fuels making up the same 57% of
our company-wide energy consumption as in theprevious year.
In addition, MGC is participating in a project inHachimantai, Akita Prefecture, to supply an adjacent
power plant with geothermal steam, a type of renewableenergy. Geothermal energy is plentiful in Japan and is
expected to see further development. MGC is also taking
part in a project to survey and develop geothermal
resources in Yuzawa City, Akita Prefecture, with the aimof constructing a geothermal power plant.

FY

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

2009

6.10

10.57

2010

6.68

11.05

90

2011

5.66

8.98

80

Trend of energy source component ratio
Energy source component ratio(based on thermal units) (%)

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

100

70
60

4.9%

Environmental Information Sharing System

65%

30%
2011

(FY)

In April 2012, we began full-scale operation of ourEnvironmental Information Sharing System, which wasconstructed to manage information on the environmental
impacts of business sites. Using the system, we compiled

50
40
30
20
10

35%

38%

39%

48%

53%

58%

57%

0
2005

2006

2007

2008

2009

2010

2011

(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

26

Responsible Care and MGC

Chemical Emissions
Based on our RC Medium-Term Plan 2014, MGC continues working to reduce emissions of volatileorganic compounds (VOCs) and of chemical substances that are subject to notification of releaseand transfer (PRTR).

Substances Subject to Notification under
the PRTR Law
Substances subject to release and transfer notification
under revisions to the PRTR Law increased to 426 in FY2010.
MGC provided notifications for 57 substances
handled during FY 2011. Our emissions of thesesubstances totaled 340 tons across all workplaces, a
reduction of 300 tons (about 47%) from the previous
fiscal year.
The main cause of the reduction was the
1,2,4-trimethyl benzene (pseudocumene) recovery
equipment we put into service at the Kashima Plant.
Our transfers of these substances totaled 551 tons
across all workplaces, a reduction of 6 tons (about 1%)
from the previous fiscal year.

Trend of fiscal year performance in PRTR substances
ReleaseNumber of PRTR substances

Transfer

Amount(tons)

Number of substances
70

700

640
60

600

557

500

551

50

40

400

393

325

300

243

339
30

228

206

200

345

20

10

100

0
(FY)

0

2007

2008

2009

2010

2011

Japan Chemical Industry Association
PRTR-Targeted Substances

Volatile Organic Compounds (VOCs)

The Japan Chemical Industry Association, of which MGC
is a single-company member, has on its own added
specified substances to a subset of the substances
requiring notification under the PRTR Law, and is working
toward the reduction of these voluntary “PRTR-targeted
substances” (433 substances plus 1 substance group).
Corresponding substances released by MGC across all
workplaces in FY 2011 totaled 81 substances withreleases of 490 tons, a reduction of 278 tons (36%) fromthe previous fiscal year.
Our transfers of these substances totaled 2,194 tons
across all workplaces, a reduction of 242 tons (about10%) from the previous fiscal year.

* The darker colors on the graph correspond to the additional substances specified
by revision to the law.

Trend of fiscal year performance in Japan Chemical
Industry Association PRTR-targeted substances
ReleaseItem

FY 2009

VOC releases (tons)
Estimated VOC releases(tons) prior to target
substance revisions,contained within above

FY 2010

FY 2011

715

422

248

210

369

Number of substances
90

3,000

80

2,500

2,436
(tons)

Trend of VOC atmospheric releases

Number of PRTR substances

Transfer

Amount(tons)

PRTR substances with large emission volumes (substances with emissions of 1.0 tons or more in FY 2011)

With regard to VOCs, we compiled data for substances
which were released into the atmosphere by MGC andwhich are PRTR substances specified by the PRTR Law
or the Japan Chemical Industry Association. Ourreleases in FY 2011 totaled 22 substances and 422 tons
across all workplaces, a reduction of 293 tons (about41%) from the previous fiscal year.

2,194
70

2,000

FY 2011 results
Cabinetorder no.

Chemicals
Air

Water

Soil

Total

Total volumeof transfers

296

1,2,4-Trimethylbenzene

207.2

0.0

0.0

207.2

11.6

186

Dichloromethane

71.5

0.0

0.0

71.5

4.7

80

Xylene

10.9

0.0

0.0

10.9

2.9

35

Isobutyraldehyde

9.5

0.0

0.0

9.5

0.0

300

Toluene

9.1

0.0

0.0

9.1

59.6

53

Ethylbenzene

5.5

0.0

0.0

5.5

0.0

392

n-Hexane

4.3

0.0

0.0

4.3

151.0

405

Boron compounds

0.0

4.1

0.0

4.1

0.2

374

Hydrogen fluoride and its water-soluble salt

0.0

3.3

0.0

3.3

0.2

333

Hydrazine

0.2

2.5

0.0

2.7

0.0

297

1,3,5-Trimethylbenzene

2.2

0.0

0.0

2.2

0.3

400

Benzene

2.1

0.0

0.0

2.1

0.0

411

Formaldehyde

0.4

1.1

0.0

1.6

17.1

56

Ethylene oxide

1.5

0.0

0.0

1.5

0.0

−

Other chemicals

2.9

0.6

0.0

3.4

303.5

327.5

11.5

0.0

339.0

551.0

Totals for substances subject to PRTR Law

27

Emission amount

MITSUBISHI GAS CHEMICAL COMPANY, INC.

1,500

60

1,469
1,079

1,063

1,000

50

768
500

491

403

490

441

0

2007

2008

2009

2010

2011

40

30
(FY)

Equipment for recovery of solvents from discharged gas* The darker colors on the graph correspond to the additional substances specified
by legal revision.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

28

Responsible Care and MGC

Responsible Care and MGC

Waste Reduction

Air and Water Conservation

MGC promotes the 3Rs* and defines zero emissions as the reduction of final landfill to 0.3% or lessof the volume of generated waste. We aim to achieve and maintain those goals through our RC
Medium-Term Plan 2014, and are working to further reduce waste landfill volumes at each workplace.

To protect our air and water environments, MGC is taking steps to further reduce the environmental
impact of our production activities, starting from a foundation of compliance with regulatory valuesin accordance with laws, regulations, and ordinances.

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

Waste Reduction Achievements
In FY 2011 our volume of final landfill discharged fromproduction sites totaled 124 tons, a 36% increase fromthe previous fiscal year. The main reasons for theincrease included an increase in the amount of spent
catalysts. Note that the increase in final landfill
experienced in FY 2007 was due to one-off sludge andsoil waste of 285 tons.

In FY 2011, we continued our achievement from theprevious year of zero emissions at six of sevenproduction sites.
As a whole, the seven production sites carriedforward the record of zero emissions.
Plants achieving zero emissions in FY 2011
Niigata Plant

Change in waste generation, recycling, and transfers
Generated amount

Recycled amountTransferred

120

98.5

89.7

93.9

88.5

86.5

0

29.1

8.2
2007

7.6
2008

25.9

26.6

22.4

7.4

9.2

8.1

2009

2010

2011

(FY)

0%
0.17%

Yamakita Plant

0.05%

0.05%

Naniwa Plant

0.27%

0.01%

600

0%
0.14%

MGC conducts strict management of PCB-containing
equipment used in the past, in accordance with the PCB
Special Measures Law.
In 2011, we performed one case of processing wastewith high concentration of PCBs. We will continue ourefforts to facilitate the processing of PCBs.

541
400

179
91

0%
0.11%

Management of PolychlorinatedBiphenyls (PCBs)(tons / year)

134

0.22%

Zero emissions : Final landfill / waste generated = 0.3% or less

Final landfill

200

0.18%
0%

Total of 7 production sites
26.2

2011

0.19%

Saga Plant
40

2010

Kashima Plant

Mizushima Plant(1,000 tons / year)

80

Prevention of Air Pollution

Zero Emissions of Waste

124

Prevention of Water Pollution

We measure the emissions of sulfur oxides (SOx),
nitrogen oxides (NOx), soot and dust, and other toxic
substances contained in the emission gas of boilers andother combustion facilities, to ensure that we stringently
adhere to regulated limits through our operations.

We are committed to operating in compliance withregulations for wastewater generated through production
by ensuring that chemical oxygen demand (COD), total
nitrogen, total phosphorus and other chemicals arewithin tolerance levels.

Emission of SOx

Emission of COD(tons / year)(tons / year)

450

450

300

278

300

280
174

150

151

256

250

2007

2008

226

260

230

150

112

0

0

2007

2008

2009

2010

2011

(FY)

Emission of NOx

Emission of total nitrogen(tons / year)(tons / year)

1,500

450

1,000

927

300

863
680

668

284

252

2009

2010

273

269

605

500

2011

(FY)

230

150

0

0

2007

2008

2009

2010

2011

2007

(FY)

2008

2009

Emission of soot and dust

Emission of total phosphorous(tons / year)(tons / year)

120

120

2010

2011

(FY)

0

2007

2008

2009

2010

2011

(FY)
80

80

76

71

60

Waste Treatment in FY 201140

Reduced amount
60,035 tons
(66.9%)

Recycled amount
3,720 tons
(4.4%)

Reduced amount
4,257 tons
(4.8%)

63

40

15

29

31

2009

2010

2011

0

2007

2008

2007

(FY)

Water Consumption / Wastewater Volume
We are committed to confirming our use of water
resources and our wastewater, and making efficient useof resources.

Amount emitted
externally
8,101 tons

Generated amount
89,750 tons
(100%)

54

51

0

Recycled amount21,614 tons
(23.8%)

68

2008

2009

2010

2011

(FY)

Water consumption / wastewater volume
Water consumption

Wastewater volume(1,000 m 3)
50,00040,00042,76235,70739,60033,78940,47534,26330,00038,88839,59937,83932,85820,000

Amount landfilledinternally0 ton (0%)

29

MITSUBISHI GAS CHEMICAL COMPANY, INC.

On-SiteOff-Site

Final landfill
124 tons(0.1%)

10,000
0

2007

2008

2009

2010

2011

(FY)

MITSUBISHI GAS CHEMICAL COMPANY, INC.

30

Responsible Care and MGC

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

Safety Assessment of Chemical Substances andProducts
At the development stage of products, MGC first conducts basic surveys
and safety evaluations, classifies products according to degree of hazard
under standards such as GHS*1, and creates safety information such as
safety data sheets (SDS*2 = MSDS*3). Based on these, we perform risk
assessments (of the hazards of the substances themselves, as well as of
exposure) for all product processes, from manufacture to disposal, andoffer the products after appraisal of their market feasibility.

Basic survey● Survey of literature● Access to SDSs for raw materials,

etc.

Safety assessment

Chemical and Product Safety Education

Emergency Response in Distribution

MGC conducts chemical and product safety education
within its PL (product liability) education. In 2012 we areconducting education at each workplace on risk
assessment methods under the EU REACH regulations,and are further undertaking education on JIS revisions
involving GHS.

At MGC workplaces, we have set up a wide-area
support system that includes supplying emergency
goods and equipment to production sites andestablishing communication between sites to facilitate
emergency response to accidents that occur duringtransportation. Because of our preparation of response
systems and supplies, we cooperate with local police orfire 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
with marine spills that require oil barrier deployment.

● Hazard assessment● Assessment of environmental

safety impact*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.

Hazard classifications*2 SDS: Safety Data Sheet.

● Survey of applicable laws

*3 MSDS: Material Safety Data Sheet.

● United Nations classifications● Classifications in Japan

Providing Safety Information
MGC provides safety information on chemicals through means including
submission of product SDSs, placement of product warning labels on
containers, and distribution of Yellow Cards to shipping companies.

Preparation of safety information

Hiratsuka Research Laboratory / PL education● SDS● Product warning labels

Compliance with EU REACH Regulation● Yellow Cards

SDS
Premarketing investigations● Assessment of risk management● Determination of marketability

Product supply

Customer information

SDSs are documents that convey detailed
information about the handling and safety ofchemicals, and are submitted to companies
that handle our chemicals, such as
customers, sales agents, and shipping
companies. We submit GHS-confirming
SDSs for in-development products (such as
prototypes), too, just as we do for released
products.

To understand and address the complex requirements(such as chemical registration requirements) set by the
EU REACH chemical product management regulations
that went into effect on June 1, 2007, MGC and its Group
companies have organized a task force to undertake
registrations and other requirements within theprescribed time. The task force is also addressing thecreation and distribution of SDSs as it works toward
strict compliance with the REACH regulations.

Mizushima Plant / Joint counterterrorism drill at Mizushima Port

Mizushima Plant / Joint counterterrorism drill at Mizushima Port

Kashima Plant / Logistics accident
scenario drill (truck accident)● Collection of customer information● Compliance with applicable laws
● Rationalization of product logistics

31

LabelsYellow Cards

The labels we affix to productcontainers concisely display
information on handling andsafety, based on GHS.
We are working toaddress GHS conformity for
those in-development
products (prototypes, etc.)that are not yet compatible.

A Yellow Card is a card readiedin preparation for an accident
during domestic shipment. It
briefly lists a product’s
properties and emergency
response measures, or contact
information including fire,police, and our Company. We
distribute these cards toshippers of chemicals, andensure that they are carried
during product shipments.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

GLP Certified Testing Facility
The MGC Niigata Research Laboratory is recognized by the Japanese government as conforming
to GLP* test facilities for Ames mutagenicity testing and biodegradability testing. As GLP test
reports can be used in notifications under the Industrial Safety and Health Law and the Law
concerning the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., it ispossible for us to conduct the testing necessary for notifications of new chemical substances.
GLP test reports command high confidence internationally as well.
We conduct testing to evaluate the safety of the chemicals handled by the MGC Group,
including acute oral toxicity tests, primary skin irritation tests, and pathogenicity tests.
* GLP (Good Laboratory Practice): GLP is a system which ensures the reliability of test results, 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.

32

Responsible Care and MGC

RC Activities on Site

Niigata Plant

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

Mizushima Plant

Main products

Message from the Niigata Plant Manager

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

Message from the Mizushima Plant Manager

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

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

The Niigata Plant, which enjoys abundant resources such as
natural gas extracted from the Niigata earth and water from the
grand Agano River that flows across the Echigo Plain, is a plantwith deep roots in the Niigata region. The plant has close ties topeople in the surrounding area and contributes to the region
through production activities, while working hard to assure safety
and preserve the environment. At the end of 2011, the plantlaunched comprehensive facilities management TPM activities.
The plant will continue to push forward toward safer and morestable operation.

●

Environmental burden data (FY 2011)
3

Masato Inari
Plant Manager

Water consumption (1,000 m )12,558GHG emissions (1,000 tons-CO 2)471

NOx emissions (tons)

343

SOx emissions (tons)

0

Total drainage volume (1,000 m3)

17,087The Mizushima Plant, located in Japan’s prominent Mizushimaindustrial complex, has made major achievements in reducing
emissions of volatile organic compounds (VOCs) throughout thecomplex, as well as in controlling environmental impacts throughproprietary environmental conservation activities. At present, theplant is working toward the goals of energy conservation, reductionof air- and water-polluting substance emissions, reduction ofindustrial waste emissions, and promotion of zero emissions. From
2010, the plant has achieved its target of zero emissions ofindustrial waste. In 2012 the plant will also install recovery
equipment to address large-scale emissions of waste sulfuric acid,with the aim of significantly reducing emissions.

●

Environmental burden data (FY 2011)
Water consumption (1,000 m 3)

Kenji Inamasa
Executive Officer
Plant Manager

27

BOD emissions (tons)

591

NOx emissions (tons)

209

Total drainage volume (1,000 m3)

135

Waste transferred offsite (tons)

3,929

PRTR substances
PRTR substances

Emissions(tons)

Transfers(tons)

1.5

0.0

Ethylene oxide
Dichloromethane

0.5

0.7

Methyl methacrylate

0.3

25.0

Address: 182 Tayuhama Shinwari, Kita-ku, Niigata-shi, Niigata 950-3112, Japan
Tel: +81-25-259-8211

Message from the Research Laboratory Director

Main research themes

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

Hiratsuka Research Laboratory●

Takafumi Abe
Executive Officer
Laboratory Director

Cooperating annually with blood drives

33

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Emissions(tons)

Transfers(tons)

Xylene10.9

2.8

Hydrogen fluoride andits water-soluble salt

3.2

0.0

Isobutyraldehyde

2.6

0.0

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

Message from the Research Laboratory Director

Main research themesSpecialty plastics
Coating adhesives● Packaging materials● Resist materials● Molding●

The Niigata Research Laboratory is located in the northern part of
Niigata city. We cooperate with our neighbor, the Niigata Plant, ina variety of RC activities. Our wish is to aim for harmony withnature, contribute to the development of society throughchemistry, and grow sustainably. Through scientific technology wewill undertake the development of new products that contribute to
the formation of an environmentally friendly recycling basedsociety, with the participation of all.

0

Fire extinguisher drill“Operation Clean” at the East Port environs

Niigata Research Laboratory

10,989COD emissions emissions (tons)

115

Final landfill (tons)

110

SOx emissions (tons)

Final landfill (tons)

2,259

Waste transferred offsite (tons)

12,347

GHG emissions (1,000 tons-CO 2)●

The Hiratsuka Research Laboratory is located to the east of
Shonan Hiratsuka, near the Sagami River. With safety andenvironmental conservation as its top priorities, the laboratory
contributes to the local region as it conducts research anddevelopment activities. Those activities always conceal sources ofdanger and insecurity, but with all employees nipping thosedangers in the bud, the laboratory aims to safely contribute to theregion and community.

●

Shojiro Kuwahara
Laboratory Director

Study tour of laboratory by students of the Niigata
University of Pharmacy and Applied Life Sciences

Clean-up and planting along the Sagami River

Workplace tour for Ohara High School students

MITSUBISHI GAS CHEMICAL COMPANY, INC.

34

Responsible Care and MGC
RC Activities on Site

Yokkaichi Plant

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

Kashima Plant

Main products

Message from the Yokkaichi Plant Manager

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

Message from the Kashima Plant Manager

Hydrogen peroxide, other industrial
chemicals● Polyacetal plastics●

The Yokkaichi Plant is located in the North of Mie Prefecture,overlooking Ise Bay. Its environment is dominated by nature suchas the scenic beauty of the Yunoyama Hot Springs. The region,
once characterized by negative images such as “Yokkaichi
asthma,” has been greatly transformed by the enactment ofmunicipal environmental basic regulations and environmental
planning. Under the same environmental conservation policies as
the local administration, the Yokkaichi Plant emphasizes safety
and security and is conducting business activities so as to earn
the trust of local residents, through activities such as RC andenvironmental risk assessments.

Environmental burden data (FY 2011)
3

Water consumption (1,000 m )7,582

GHG emissions (1,000 tons-CO 2)

83

NOx emissions (tons)

41

Motoyoshi Onobori

SOx emissions (tons)

1

Executive Officer
Plant Manager

COD emissions (tons)

43

Waste transferred offsite (tons)

743

3

Total drainage volume (1,000 m )5,752

Final landfill (tons)
PRTR substances
1,2,4-Trimethylbenzene

6
Emissions(tons)●The Kashima Plant is situated in the Kashima Eastern Industrial
Complex, surrounded by the rich natural environment of the KashimaSea, Tone River, and Lake Kasumigaura. The plant is strengthening
its cooperation with other companies in the complex as it undertakes
a switch to city gas as fuel, along with environmental measurement,
greenery management, and other environmental and disaster
preparation activities. From July 2012, the Environment and Safety
Department has also been participating in TPM activities and making
further efforts toward environmental conservation. At the same time, Tsuneaki Iwakiri
it has worked toward harmony with the environment and cooperation Executive Officer
with the local community in all stages of its business activities, and is Plant Manager
promoting the creation of a plant that contributes to the creation of asustainable global future and an affluent society.

Transfers(tons)

122.2

0.0

Toluene1.7

59.6

Formaldehyde

0.8

0.0

Address: 950 Kishi, Yamakita-machi, Ashigarakami-gun, Kanagawa, 258-0112, Japan Tel: +81-465-75-1111
ISO 14001 certification: May 2000 (certification body: JQA)●The Yamakita Plant was built in 1933 as Japan’s first hydrogen
peroxide manufacturing plant, in a location endowed with naturesuch as the Sakawa River and the Tanzawa Mountains. The plant
has coexisted with the region for about 80 years since its
founding, and continues its operations in harmony with theenvironment. To maintain its environment and keep the trust of
local residents, the plant continues working to reduce
environmental impacts and to strengthen the relationship of trustwith local residents through active communication.

●

Plant Manager

35

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Water consumption (1,000 m 3)

1,668

GHG emissions (1,000 tons-CO 2)

131

NOx emissions (tons)

5

SOx emissions (tons)

0

Total drainage volume (1,000 m3)

1,585

COD emissions emissions (tons)

11

Waste transferred offsite (tons)

604
1

Final landfill (tons)
PRTR substances

Emissions(tons)

Transfers(tons)

1,2,4-Trimethylbenzene

85.0

11.6

Dichloromethane

71.0

2.6

Water consumption (1,000 m 3)

5,295

GHG emissions (1,000 tons-CO 2)

17

NOx emissions (tons)

2

SOx emissions (tons)

0

Total drainage volume (1,000 m3)

TTP internal organization

Management Center
Oxygen Absorbers Techno Center● Electronics Materials R&D Center● Tokyo Research Laboratory● MGC Chemical Analysis Center●

Environmental burden data (FY 2011)

Masamichi Mizukami

Environmental burden data (FY 2011)

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

Message from the Tokyo Techno Park General Manager

Derivatives of hydrogen peroxide
Persulfates

4,747

COD emissions (tons)

16

Waste transferred offsite (tons)

709

Final landfill (tons)

Ammonia leak drillTokyo Techno Park

Main products

Message from the Yamakita Plant Manager

Hydrogen peroxide
Polycarbonate plastics

Disaster preparation drill

Employees cleaning the roads surrounding the plant

Yamakita Plant●

1

Kanamachi in Katsushika, Tokyo, the birthplace of the company, hasseen a rapid transformation from an industrial zone to a research
campus rich in greenery. Making use of its location endowed withrivers and greenery about 15 km from the metropolitan center, Tokyo
Techno Park is playing a role in that transformation, further
heightening its presence as an engine for research results inadvanced fields while remaining close to local surroundings. TTP isalso further energizing its RC activities by all employees and isundertaking the creation of a new culture of safety, building on afoundation of conserving the environment and securing safety.

●

Osamu Kondo
Executive Officer
General Manager

Comprehensive disaster preparation drills

Firefighting education by the Kanamachi Fire
Department

MITSUBISHI GAS CHEMICAL COMPANY, INC.

36

Responsible Care and MGC

Responsible Care and MGC

MGC Group’s Environmental and Safety Activities

12 Member Companies of the MGC Group Environment and Safety Council

Twelve domestic partner companies of the MGC Group that handle chemical products (as of March 2012)
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
■ Expanding target Group

companies for environmental andsafety activities (support toinclude terminals, transport, etc.)■ Promotion of the sharing of safety

information with domestic andoverseas Group companies

2012 RC Action Plan
■ Enhancement of the MGC Group

Environment and Safety Council■ Sharing and horizontal deployment

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

MGC Group Environment and
Safety Council
The Council meets twice a year to exchange ideas and toreport on topics including MGC’s and member
companies’ annual plans for environmental and safety
activities, the results of the activities, and the status of
accidents and occupational injuries.

Environmental and Safety Audits
With the director in charge of the environment and safety
as team leader, we conduct three or four domestic andtwo or three overseas environmental and safety audits
each year in support of the Group companies’
environment and safety activities. In 2011, we postponedsome audits due to the Great East Japan Earthquake, but
performed audits at the following five companies.

Verifying traffic safety inconjunction with an Aichi
Prefecture traffic safety campaign(Toyo Kagaku Co., Ltd.)37

Firefighting drill using hydrants andfire hoses(Japan Circuit Industrial Co., Ltd.)MITSUBISHI GAS CHEMICAL COMPANY, INC.

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

Address: 4-2242, Mikajima, Tokorozawa-shi,
Saitama 359-1164, Japan
Tel: +81-4-2948-2151
URL: http://www.mgcfs.jp/en/■ Japan Finechem Co., Inc., Sakaide Plant■ MGC Pure Chemicals Taiwan, Inc. (MPCT)■ Korea Engineering Plastics Co., Ltd. (KEP)■ Samyoung Purechemicals Co., Ltd. (SYPC)

MPCT / Taiwan

MGC Group Company Topics

Japan Industrial Safety and Health
Association KYT extra-company
training for new employees(MGC Electrotechno Co., Ltd.)MGC Filsheet Co., Ltd.
Manufacture of polycarbonate film and sheet■ Shin Sanso Kagaku Co.

Shin Sanso Kagaku

Declaration of Safety by the plant
manager at a Safety Assembly(MGC Filsheet Co., Ltd.,
Tokorozawa Plant)

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

Unannounced drill(Japan Pionics Co., Ltd.)

Comprehensive disaster drill for asimultaneous spill and fire scenario(Japan Finechem Co., Inc.)

Hirotsugu Yamamura

Kuniaki Jinnai

President & CEO

President & CEO

We are the only company in Japan synthesizing organic blowing
agents. Organic blowing agents have the characteristic ofcontinuing to generate gas in large quantities through pyrolysis
even without air, and are indispensable products in a wide range offields such as insulation, sound absorption, and creating lighter
products. We will continue advancing safety and environmental
measures to ensure stable operation.

As a manufacturer of special functional film and sheets, ourcompany conducts its business at sites in Tokorozawa and Osaka.
Under newly launched activities to improve our business, we areaiming to foster an open corporate culture with awareness-raisingand communication as our keywords. On the environment andsafety front, we are working to strengthen risk assessment activities
and compliance with rules.

MGC Electrotechno Co., Ltd.

JSP Corporation

Manufacture of copper-clad laminates

Manufacture and sale of foamed plastics

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

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

Training for a scenario involving an
alkaline liquid waste spill from a truck(Yonezawa Dia Electronics Co.,Inc.)

Exhibiting model technique at the
New Year’s firefighters’ event heldat the Kamisu City Hall
(JSP Corporation)

Yuh Miyauchi

Kozo Tsukamoto

President & CEO

President & CEO

In April 2012, the company’s name was changed to MGC
Electrotechno. At present, the company is moving ahead withmultiple large-scale projects, including construction of MGC
Electrotechno Thailand as a second BT production site in thatcountry. MGC Electrotechno aims to become the world’s premier
CCL supplier. Sharing MGC’s Safety Philosophy of “The top
priority of our business activity is ensuring safety,” it is striving tofoster a culture of safety and achieve zero accidents and zero
occupational injuries.

As an internationally competitive company that places importanceon safety and the environment, we have joined the Responsible
Care Committee of the Japan Chemical Industry Association andlaunched new activities. We were also able to get through power
shortages and electrical usage restrictions in FY 2011 by forminga joint scheme that links plants. We also achieved reductions ingreenhouse gas emissions rate and energy consumption rate.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

38

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

Japan Finechem Co., Inc.

Toyo Kagaku Co., Ltd.

Japan Pionics Co., Ltd.

Fudow Co., Ltd.

Manufacture and sale of fine chemicals andelectronic products

Resinous molding processing

Manufacture and sale of gas purifiers andabatement system

Manufacture and sale of molding resin

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/

Norio Hakuta
President & CEO

Our company makes safe and stable operation, with zeroaccidents and zero occupational injuries, our most importantmanagement issue. As a company, we are undertaking voluntary
conservation, risk assessment, 5S, near-miss KY proposals, andother safety activities that aim to reduce risks in equipment andwork. We are also putting effort into energy conservation,
reduction of chemical substance releases and transfers, and otherenvironmental conservation activities aimed at reducing
environmental impact.

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

Shinichi Takahashi
President & CEO

We are developing our molded plastic product manufacturing andsales business in the Chubu Region, Okayama Prefecture, andGuangdong Province in China. We are working to reduce
environmental impacts by increasing our recycling of materials andby reducing wastes. We are also working to reduce risks in thehandling of heavy molding dies, and to improve safety
consciousness through measures such as verifying traffic safety inconjunction with the National Traffic Safety Campaign.

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

Ryoichi Takahashi

Takahisa Furuya

President & CEO

President & CEO

Our company conducts RC activities according to the MGC
Group’s Fundamental Policies on Environment and Safety toensure the promotion of the environment and safety. “Safety firstthrough the participation of all” forms our safety policy, underwhich all of us work toward the objectives of our safety activities.
With regard to environmental conservation, we are pursuingconcrete objectives for energy-conserving product development,
industrial waste reduction, and energy conservation measures.

At our four plants, including our Hiratsuka Plant in the Shonan
district and our Fujinomiya Plant situated in an area of strict
environmental standards at the foot of Mount Fuji, we arepromoting environmental conservation and safety through C-TPM,
5S, and KYT activities. It is important to maintain safety, but also
to continue creating it every day. As we share readiness among
each employee to make our production activities themselves
environmental conservation activities, we will create a culture ofenvironmental conservation and safety for Fudow.

Shin Sanso Kagaku Co.

Japan Circuit Industrial Co., Ltd.

Japan U-PiCA Co., Ltd.

Yonezawa Dia Electronics Co., Inc.

Manufacture of hydrogen peroxide

Manufacture and sale of printed circuit boards

Manufacture and sale of unsaturated polyester resinand coating resins

Manufacture of printed circuit boards, auxiliarymaterials for processing

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

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

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

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

Tsukasa Sawai

Hidenobu Fujimori

President & CEO

President & CEO

Our company is located in Tomakomai City, an industrial city
endowed with nature that includes a portion of Shikotsu–Toya
National Park and the neighboring Lake Utonai, which isregistered under the Ramsar Convention. Meeting our 25th year
since founding as the only manufacture in Hokkaido of theenvironmentally friendly chemical product hydrogen peroxide, weare engaged in stable production under the idea of zero accidents
and zero occupational injuries, with the securing of safety andenvironmental conservation as our priority.

39

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/

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Toyota City has been host to a variety of activities since its
selection as an “environmental model city.” Our company is also
working toward further environmental improvements from a CSR
perspective, including energy and resource conservation,
reduction of wastes, and greening measures. Our company’s safe
operation is made possible through gaining the trust of local
residents and through the ability of employees to work withoutworry. We will continue preserving these as the basis of ourcompany’s BCP.

Kuniaki Ageishi

Yuh Miyauchi

President & CEO

President & CEO

As a member of the MGC Group, our company is steadily carryingout RC activities. Under the Double Productivity Project welaunched in 2011, we aim to reduce our rate of CO2 emissions
through increased productivity. We are also setting a course todevelop biomass-related products as we contribute to improving
the global environment.

Our company, located on the Okitama Basin and surrounded by
the Iide and Azuma Mountains, is aiming to construct systems withstrong awareness of environmental pollution prevention. While we
confirm the operating status of manufacturing and utility
equipment every day through occupational health and safety
patrols and environmental patrols, we are working to implement
emergency response drills at every workplace and to enhanceawareness of safety management and environmental conservation.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

40