Profile of MGC

01

Message from the President

02

Fundamental Policy on Environment and Safety

04

Responsible Care Promotion System

05

Targets and Results of Responsible Care Activities

06

Responsible Care Audits

08

Responsible Care Mid-term Targets from 2006 to 201009

Approach to Occupational Health and Safety

10

Process Safety and Disaster Prevention

12

Chemicals and Products Safety

14

Safety Information Service

15

Environment-friendly Products and Researchand Development

16

Approach to Reduce Environmental Load

18

Environmental Accounting

20

Approach to Global Warming Prevention

22

Approach to Chemicals Release Reduction

24

Approach to the Atmosphere, the Waters and the Soil

26

Zero emission of waste

27

Environmental Communications

28

Environmental and Safety Activities in Affiliates

30

Environmental Activities at Each Plant

32

Editorial policy

Scope of this report

This our Environmental Report 2005 is issued
to report MGC's Responsible Care (RC)Activities (Occupational health and safety, Process
safety and disaster prevention, Environmental
preservation, Product stewardship, Distribution
safety, Dialogue with the community, spectrumof RC) widely, and to promote our own RC
activities.
This report was prepared with reference to theEnvironmental Reporting Guidelines (fiscal
2003 edition) of the Japanese Ministry of theEnvironment.

This report mainly describes the environmental and safety
activities and the environmental performance data of MGC.
Sites covered: All MGC's domestic workplaces
The environmental performance data are based on
those of plants where the production is carried out.
Period covered: From January 1, 2005 to December 31, 2005
The period of the environmental performance data
are those from April 1, 2004 to March 31, 2005
(fiscal 2004).
Publication: March, 2006
The next publication scheduled: March, 2007.

PROFILE OF MGC■ Profile of MGC (As of March 31, 2005)
Name

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Address

Mitsubishi Building, 5-2 Marunouchi 2-chome,■ Financial highlight

Annual Turnover

Chiyoda-ku, Tokyo 100-8324, Japan
Established on

April 21, 1951

Capital¥ 41.97 billion

Unconsolidated

214.6

Annual Turnover ¥ 388.5 billion (Consolidated)¥ 281.6 billion (Unconsolidated)
Number of
Employees

Consolidated

312.1

fiscal 2002

340.7

fiscal 2003

240.5

4,426 (Consolidated)

Number of consolidated subsidiaries

388.5

fiscal 2004

2,277 (Unconsolidated)

281.6

28 companies
0

Number of related companies on the equity method

100

200

300

400

11 companies
URL

http://www.mgc.co.jp■ Main Products

Operating Profit

Natural Gas Chemicals Company

Specialty Chemicals Company

MethanolHydrogen peroxide

Formalin

Sodium percarbonate

fiscal 2002

Consolidated

1.9

Unconsolidated-1.1

Ammonia

Persulfates

Metylamines

Hydrosulfite

Methyl methacrylate
Methacrylates

Chemicals forelrctronic industries

Polyols

Monomer for plastic lensDimethylether

Polycarbonate resin (Iupilon獏)Ubidecarenone (Co-enzyme Q10)

Polyacetal resin (Iupital獏)ASC Super (Catalase)

Modified polyphenylene ether(Iupiace獏)

Hydrogen generation device
from methanol

Polyamideimide (AI polymer獏)Aromatic Chemicals Company

Information andAdvanced Materials Company

Xylenes

Epoxy・BT resin copper clad laminates

Methaxylylene diamine
1,3-BAC

fiscal 2003

14.9
5.5
30.8

fiscal 2004

0

18.3
10

20

30

40
(billion yen)

Sales Ratio (Consolidated)

Polyamide MXD6 (Reny獏)Catalysts

MX nylon resin

Materials for
multi-layer printed circuit board

Toluic acidBT resin獏

Aromatic aldehydes

LE sheet獏

Trimellitic anhydride

AGELESS獏 (oxygen absorber)

Pyromellitic anhydride

Anaero pack獏

Phthalic anhydride

500(billion yen)

6.6％

35.8％

57.6％

Chemicals

RP system

Functional products

AGELESS・OMAC獏

Others獏

Pharmakeep獏

01

Message from the President

Approach to Compliance

On behalf of Mitsubishi Gas Chemical (MGC), I am
pleased to introduce you our publication of the Responsible
Care status report 2005 (environmental report 2005).
During the decade since the launch of MGC Responsible
Care (RC) program to ensure environment and safety,
we have matured with expanded company-wide
activities and our understanding of the need for RC
through the continuously steady implementation of thisprogram.
After MGC issued the 2001 edition of the report toinclude all our environmental and safety activities, thecontent of the report has been enhanced with every issue
and we have now issued this fifth status report (it is thethird edition in an English version).
By developing forthright and proactive RC activities that
continue into the future, I am sure you will also see an
achievement in driving major improvements inenvironmental and safety performance across the entire
spectrum of these activities in our next status report.
The MGC Responsible Care voluntary program is basedon the following implementation items which have been
embraced by the Japan Responsible Care Council(JRCC) and are to be designed to fit our company
culture:Environmental preservation
Process safety and disaster prevention
Occupational safety and health
Chemicals and products safety (Product stewardship)
Distribution safety
Dialogue with the community
Following is brief outline of our activities which weredeveloped positively by all members of our management
and all of our employees.

02

It goes without saying that the fundamental elements of acompany activity are to be strictly bounded by complianceconcerns.
At MGC, each of us has understood the MGC Corporate
Activity Guide enacted in 1997 and we have made an effort
so that we might achieve the level of social responsibility
outline therein our company activities. In addition to this,we have recognized the importance of compliance throughestablished compliance institutions to reinforce the guide in
2004 and are instituting a whole compliance structure not
only for merely MGC but for MGC affiliates.
We should continue to make an effort for sound development
by ensuring corporate compliance with RC at its heart.

Topics of Environmental and
Safety Activities in CalendarYear (CY)
(C 2005
We have emplaced Zero Accident, Zero Occupational Injury
and Environmental Preservation among our Fundamental
Policies on Environment and Safety as fundamental elementsof environmental and safety activities, and have provided nine
Fundamental Policy items in order to put into practice the
Policies referred to above. All of our workplaces have been
actively developing our RC activities according to the policy.
I will now introduce you to the main activities in CY2005.
Aiming for achievement of Zero accident and Zero occupational
injury, which is our earnest desire, we have made an effort toeliminate unsafe locations through point and action byheightening our sensibility to danger while promoting HIYARIHATTO activity and adaptation of the occupational safety risk
assessment at all of our plants and laboratories. In addition, we
have fully revised the Prior Safety Evaluation Procedures for
New or Additional Plants to improve self-maintenancetechnologies and skills, and the revised procedures havecertainly been inspected and the countermeasures ofenvironment and safety implemented together with progress inplanning.
As part of our environmental preservation efforts, we haveactively promoted energy saving initiatives, reducing ofemission volumes corresponding to Pollutant Release andTransfer Register (PRTR) substances and the initiatives toachieve zero emission of waste.
As part of chemicals and products safety, we have taken all
possible measures to ensure that all of our stakeholders

(especially customers) have made use of each of our productwith a sensibility of security through each MSDS prepared,
improved and supplied by us.
As part of our distribution safety, we have ensured thecarrying of a Yellow-Card made and distributed by us on
vehicle used in transportation of our production, and eachcard will contribute to effective disaster-prevention andremediation activities in case of an accident.

This report covers MGC's concrete approach to environmental
and safety issues, and I sincerely hope that you will read thisreport and will deepen your understanding about ouractivities and the sincerity and determination we devote tothem. I welcome any suggestions and assistance you may
offer on how we can continue to be a very trusted company
for you and stakeholders, just as we must continue topersevere in our effort to earn and maintain our social trust.

Efforts to address Global Warming
Our countermeasures against global warming: in addition to
the required global effort, we have recognized theimportance of the global warming issue and have set up theGreenhouse Gas (GHG) task force within our companywide organization in 2005.
The GHG task force has the role of considering energy
saving initiatives and countermeasures against GHG and topromote at them fundamental level, company-wide.
MGC is currently striving to reduce energy consumption
rate less than or equal to 0.9 and a GHG emission rate lessthan or equal to 0.8 of those of fiscal 1990 by fiscal 2010, as
our short-term goal.
On top of this, we should take measures to prevent global
warming in activities at undertaken and conducted outsideof Japan.

Developing Environment-friendly
Products
We have focused on the development of many environmentfriendly products.
We are currently making efforts to develop the following
environment-friendly products: usage of methanol which is
our core product in fuel cells, usage of hydrogen peroxidefor environmental cleanup, usage of recyclable MX Nylon
Resin with its merits of high gas barrier capability,
Marcch, 2006
technology for oxygen removal preservation of valuable
artifacts and other precious items, and development of the Representative Director, Prresident
next generation of clean fuel such as Dimethyl ether (DME)
Hideki Odaka
which has gathered worldwide attention.
Developing of environment-friendly products is ranked as
one of our most significant themes we believe we shouldmake an effort to market such environment-friendly to
encourage their regular use.

03

RC MANAGEMENT SYSTEM

Fundamental Policies on Environment and Safety
We, Mitsubishi Gas Chemical Company, Inc. (MGC), are understanding activities to promote sustainable
development and creation of a recycling-based-society as important business objectives.

Corporate Philosophy
MGC is fully committed to making contributions towards development in harmony with society throughthe creation of a diverse range of value on chemistryManagement Philosophy◇ The management of MGC is dedicated to providing an enjoyable workplace, paying due respect
to the will and ability of our employees, and is determined to create energetic workgroups.

◇ With a view towards worldwide needs, our marketing efforts will focus on identifying andenlarging the world's markets.

◇ With full knowledge of the market's needs, we will implement creative research and development
to nurture the seeds of our efforts to realize the best results in product development manufactureand distribution.
◇ By making efforts to upgrade technology, preserve the environment and promote safety, we will
engage in the manufacture of better quality products.
◇ We are a transparent company, where everyone shares the same goal and gives his or her best.

As part of our implement action of our Corporate Philosophy and Management Philosophy, we have been carrying out
the Integrated Safety Management System. This system is a set of activities aimed at preserving the environment andensuring safety at all stages of chemical substance life cycles from development and manufacturing to distribution, use,
final consumption, and disposal. In order to ensure the implementation of integrated safety management system, we
have set the Environmental and Safety Targets and Fundamental Policies as the common environmental and safety
policies for all of us. All of our workplaces have laid down concrete activity plans according to environmental and safety
policies and have been steadily carrying them out.

Fundamental Policies on Environment and Safety
MGC, as an important member of the community, makes an effort to earn social trust by recognizing our
responsibility to contribute to the community and to secure the environment and a safe workplace andproducts, and by thinking of how to put our corporate activities in harmony with the protection of the global
environment under the principle of sustainable development.
Environmental and Safety Targets:
Zero Accident, Zero Occupational Injury and Environmental Preservation
Fundamental Policies:● Ensuring of health and safety in our operations● Securing security management of facilities and increasing self-maintenancetechnologies and skills● Reducing environmental loads in business activities● Ensuring safety in use, handling and disposal of products● Developing of environment-friendly and safety-conscious products andtechnologies● Ensuring environmental preservation and safety in the logistics of obtaining

raw materials and storing and delivering our products● Enhancing of society's confidence to us● To provide support to our subsidiaries and affiliates in implementing theirown RC activities● Continuously improving our RC management system

We shall comply fully with applicable domestic laws and foreign rules and shall also cooperate with related
international organizations, international and national administrative organs, and nongovernmentalorganizations whenever needed.

04

RC MANAGEMENT SYSTEM

Responsible Care Promotion System
In order to ensure the implementation of our integrated management system, we have been promoting company-widecomp
RC activities.

■ Environmental and Safety Management System(RC Promotion System)PDC
C A cycc le

We regularly hold the Environment and Safety Meeting,which is chaired by the president, in every December. This
meeting is consisted of executive officers, administrative
general manager of each internal company, generalmanager of each corporate group, chief of each workplaceand designated representative by the president.
Each workplace, which has their own RC promotion
system, has been promoting the activities in keeping withan annual activity plan for the daily RC activities.

Fundamental policies(Mid-term targets)
Environment and
Safety MeetingAct

RC audit
Check

RC audit

Environmental
ReportWaste treatment committee
Product logistics safety committee
Environment andsafety manager meeting
MGC group’s environment andsafety information exchange meeting

MGC RC website

Dialogue with the community■S
Subjects
bjj t att thethh Environment
f Meetingand S
Safety(Internal companies)
Natural gas chemicals
company
Aromatics chemicals
company

Environment and safety audit
GHG task force

Preparation ofannual active plan
Plan

Implementation ofannual activity planDo

President

Environment and Safety Meeting

C tinu
Cont
nuous
nu
impro
p ovvem
ement

Specialty chemicals
company
Information andAdvanced chemicals company
Corporate planning division

8 Plants

Environment andsafety departments

3 Laboratories

Environment andsafety departments

4 Administrative
divisions
7 Business divisions

Finance and accounting center
Administrative andpersonnel center

3 Planning anddevelopment divisions

Corporate communications
Research andtechnology division
Purchasing andlogistics center
Maintenance center
Environment andsafety division

Message from Director in charge of Environment and Safety
Director, Managing Executive Officer Dr. Takao Kawaki
We reconsidered and revised
the rule of the Integrated
Safety Management Systemat the Environment and
Safety Meeting in fiscal 2004
to improve above system aswell as compliance withlaws. This revision of ourmanagement system not
only has made our RC
activities further activated and has made all employees
understand that environment and safety is the important issue
in our business activities but also has clearly defined the RC
activities at each work place.
I think on the basis of the facts mentioned above that MGC
will furthermore get the social trust by continuously
improving our RC activities in accordance with the surepractice of Plan-Do-Check-Act (PDCA) cycle.

Field of our RC activities
Occupational health and safety
Process safety and disaster prevention
Environmental preservation
Chemicals and products safety
Distribution safety
Dialogue with the community(1) Discussion subjects
・Matters relating to environmental
and safety targets and fundamental
policies
・Matters relating to RC mid-termtargets and annual plans・Matters relating to rulemaking,revision or repeal of rules
・Matters relating to safety awards
and award for effort to environment
・Other important RC matters(2) Reporting items
・RC activity status, results of audits,
safety results including the situationof the occurrence of occupational
injury or accidents, troubles and etc.

Rules related environment and safety
Integrated safety management rules
RC management
systemAudit and inspection detailed rule
Environment and safety managers meeting detailed rule
RC education and training curriculum

Reporting on accident, trouble andOccupational
health and safety occupational injuries detailed rule
Central occupational health and safety meeting detailed rule
Process safety
Prior safety evaluation procedures for new or additional plants
and disaster
MGC process safety system guideline
prevention
Occupational health and safety assessment guideline
Waste management guideline
Environmental
Green purchase (office and stationery supplies) guideline
preservation
Guideline on the emission-monitoringand management of chemical substances
Chemicals safety information management guideline
Chemicals andproducts safety Preparing of MSDS guideline
Distribution safety management detailed rule
Guideline on wide-area support system fortransportation accidents
Distribution
Preparing of Yellow-Card guideline
safetyPreparing of container Yellow-Card guideline
Products distribution safety assessment detailed rule
Regulation on certified high pressure gas process safety management
Regulation on award of environmental and occupational health and safety

RC MANAGEMENT SYSTEM

05

Targets and Results of
Responsible Care Activities

Fundamental policies

RC Mid-term Targets(2001-2005)

Occupational Process safety
health andand Disastersafetyprevention
Environmental preservation

Ensuring of health andsafety in our operations

To achieve the Zero accident and Zerooccupational injury for the full year

To implement the risk assessment of occupational safety
To manage our working environment in handling ofchemical substances

Securing security
management of facilities
and increasing
self-maintenancetechnologies and skills

To improve the self-maintenancetechnologies and skills

To enhance the self-security management
To review the prior safety evaluation procedure for new oradditional plants

To reduce 10% of energy consumption ratecompared with 1999

To reduce 1% of energy consumption rate

To shift to the clean energy

To promote the using of clean energy

To reduce 20% emission of chemicals
listed in PRTR compared with 1999

To reduce the emission of chemicals listed in PRTR

To promote proper management of
substances which have environmental loads

To control properly the Ozone layer depleting substance,
Dioxins and PCBs

Reducing environmentalloads in business activities

To reduce 75% of final disposal of wastecompared with 1995
To promote the zero emission of waste

Chemicals andproducts safety
Distribution
safetyDialogue with thecommunity
Spectrum of RC

06

Activity targets in 2005

Ensuring safety in use,
handling and disposal of
products
Developing ofenvironment-friendly andsafety-conscious products
and technologies

To offer the latest MSDS
To implement the safety assessment of
products
To evaluate the environmental aspect of our
products
To develop the environment preservation
products and technologies

To make efforts for the achievement of targets for zero
emission of wastes

To enhance the information for chemicals and products
and to promote their offer
To test our new substances for safety
To establish our management system for harmful
substances in our products and to promote the practicaluse of this system
To develop environment-friendly products andtechnologies

Ensuring environmental
preservation and safety inthe logistics of obtaining
raw materials and storingand delivering our products

To set our targets for reduction ofenvironmental loads in logistics

Enhancing of society's
confidence to us

To disclose the information by Environmental
Report, etc.
To promote the dialogue with community

To issue our environmental accounting performance of 2004
To publish the environmental report of 2004
To participate in JRCC dialogue meeting and industry
segment activities
To participate in the activities and events in local communities

To provide support to our
subsidiaries and affiliates
in implementing their own
RC activities

To regularize MGC group's meeting forexchanging of environmental and safety
information

To promote the acquisition of ISO 14001 certification
To audit our subsidiaries and affiliates inside and outside ofJapan

Continuously improving
our RC management
systemRC MANAGEMENT SYSTEM

To ensure the carrying Yellow-Card
To comprehend the emission of greenhouse gas (CO2) inlogistics

To review our documents at Head Office and workplace
according to the revision of Integrated Safety Management
Rule.
To fit in with ISO14001-2004 edition
To implement education and training for environment and safetyEstimation Remarks

Achievement of targets:

Necessity of more efforts:

No activity:
Estimation

Results and status of activities

Relevant
Page

Our target of Zero accident and Zero occupational injury for the full year was not able to be achieved.
We have promoted HIYARI-HATTO activities with a goal of all employees' participation.
We have made efforts to improve the sensibility to hazard by introducing the occupational safety risk assessment.
Measurement of our working environment condition was enhanced by checking their practice.

10
11

In all our plants located in the industrial complexes, we have acquired the certification of continual operation concerned withhigh-pressure gas and boiler and the first class pressure vessel.
In certified plant concerned with high-pressure gas, the self-maintenance management system was enhanced by
improvement of auditing for maintenance management and inspection management organization.
We have made efforts to improve our assessment system by reviewing the prior safety evaluation procedure for new oradditional plants.

12
13

In fiscal 2004, energy consumption rate decreased by 10% compared with fiscal 1999, and decreased by 5% compared withprevious year.
The ratio of the natural gas is possibly improved from 33% to about 40% by fuel conversion from coal to natural gas in
Yokkaichi plant in 2005.
We had executed 20% reduction in fiscal 2002 and that 67% reduction in fiscal 2004.
Ozone layer depleting substances: Fluorocarbons were substituted by the substances with smaller ozone depletion potential.
PCB: PCB has been stored pursuant to related laws and we have begun the preparation of its treatment started in 2005.
We had achieved 75% reduction in fiscal 2002 and that 81% reduction in fiscal 2004.

19
22
23
24
25
26
27

The volume zero of final disposal was achieved at the two plants.
In 2003, all MSDS had revised in conformity with JIS, and they had been distributed to our customers and transporters.
MSDS has properly been revised according to the revision of related laws or procurement of latest hazard data and has been distributed.
We have participated in the ICCA HPV initiatives and have carried out the safety assessment.
We, as a lead company, had assessed three substances and we have participated in the assessment of 25 substances ascosponsor companies.
Our all new products are assessed by the safety assessment procedure.
For ensuring our response to our customer's green procurement, domestic laws and RoHS directive, we had surveyed thesubstances contained in our raw materials and the status of efforts for the environment in our suppliers.
As a result of including activities to energy saving and environmental load reduction as R&D policy, useful themes onenvironmental preservation have increased.
To carry our Yellow-Cards in transportation has been ensured by their distribution to transporters and their education.
We have made an Eco-drive sticker since 2004 and promoted its labeling.

14
15
16
17

15
23

Our quantified target was not able to be set, but we have carried out reduction of transportation frequency, optimization of
distribution, and promotion of modal shift.
We have introduced our environmental accounting system since 2003 and made efforts to improve its contents.
Our environmental report has been published every year since 2001.
MGC, as a member of JRCC, has communicated with public, local administrative and neighboring companies byparticipating every year in RC community dialogue meeting at each district where our plants are located.
We carried out the volunteer activities for cleaning and beautification around the workplace, the reception of plant visits andthe opening of our welfare provisions.
We actively participated in the volunteer activities for cleaning and beautification, the firefighting training and the festivals in
local communities.

20
21
28
29

MGC group's fundamental policies on environment and safety was established.
MGC group's meeting for exchanging of environmental and safety information has been held twice a year since 2003.
The majority of our subsidiaries and affiliates has obtained ISO 14001 certification.
We carry out the RC audit to our domestic and overseas subsidiaries and affiliates every year.

30
31

We have made efforts to promote our fundamental policies on the environment and safety by making posters on ourenvironment and safety.
We revised the Integrated Safety Management Rule in December 2004.
We revised documents at Head Office and workplace according to the revision of Integrated Safety Management Rule.
Four plants have finished proceeding to ISO 14001-2004 edition certification, and the other two plants will be examined in April 2006.
Each workplace makes the education and training program on environment and safety every year and carries it out.

04
05

RC MANAGEMENT SYSTEM

07

Responsible Care Audits■ RC audit in CY 2005
The RC pre-audit using the check list has been introduced
this year in order to enhance our RC audit system. In this
newly introduced pre-audit, auditors confirm the RC activities status at the workplaces on the basis of documents
and records.
By incorporating any of RC pre-audit results into the main
RC audit, auditors evaluate the progress in entire spectrumof RC activities and they also carry out the total evaluation
whether or not PDCA cycle (see p.5) on the security management of production facilities is surely implemented at
the plants which have high pressure gas production facilities and/or boilers and 1st class pressure vessels or which
are certified to make the self inspection and/or permitted to
run the production facilities continuously
Time schedule of audit: From June to October in 2005
Auditee: 7 plants, 3 laboratories, and Head Office(4 internal companies and 1 corporate)
Auditing items:(1) Progress in RC activities
1. Confirming the progress in RC activities plan
2. Confirming the environmental and safety performance data
3. Results of internal auditing at the workplace
4. Follow-up of pointed out subjects in previous year's audit
5. Confirming the job sites and fields from the view point of environmental preservation and safety
6. Confirming the other objects related to environmental preservation andsafety(2) Evaluation of the security management system of facilities (only certified
plants)1. Confirming the progress in the activity plan of security management offacilities
2. Results of internal auditing
3. Confirming the job sites and fields for the security management
Auditing results:
Good points (total 21cases)
Pointed out subjects Comment with advice (total 35 cases)
Matters to be improved (total 12 cases)
Nonconformity (0 case)RC pre-audit

RC audit(Main RC audit)

08

RC MANAGEMENT SYSTEM

RC Audit Program

RC pre-audit
Field

RC activity

Process safety management (Highpressure gas, boiler and the first classpressure vessel)

Auditee

PlantsResearch laboratories

Certified plants

Auditor

Audit team of expert in each fieldContents

Confirmation of documents and records by auditor

RC audit
Process safety management(High pressure gas, boiler and thefirst class pressure vessel)

Field

RC activity

Auditee

7 Plants
3 Research laboratories
Head Office internal com- Certified plants
paniesPurchasing and logistics
centerAuditor

Audit team (leader: Director in charge of environment and safety)

Contents

Confirmation of status and system by auditor

Report of audit result

Auditee

Environment and Safety Meeting

Apply for RC audit program innext year■ Matters to be improved in common withall workplaces
We confirmed the matters to be improved in common withall workplaces by spreading out the auditing results ofeach workplace at the Environment and Safety Meeting
Matters to be improved in common with all workplaces in 2005 RC audits

Case 1for Head Office,Plants andLaboratories

Last year we took up the approach to energy saving andreduction of CO2 as the subjects for discussion and as apart of efforts for said approach, we have set up the new
greenhouse gas (GHG) task force as the company-wideorganization.
To make efforts for achieving our goal of energy saving
and reduction of CO2 by clarifying the issues which all
the workplaces correspondently must tackle.

Case 2for Plants

To manage HIYARI-HATTO activity so as to point out
problems as much as possible, to aim at 100% attendee
to said activity and to promote safety activities by linking
exposed hazards to occupational safety and health assessments via an inventive approach to all-hands
HIYARI-HATTO activity

Case 3for Plants

To implement training for emergency notification andcommunication in the case of transport accident of products which workplace ships

Case 4for Head Office

RC activity comes to stay at each department but the effort for PDCA cycle management is insufficient.
To establish the application method especially of smooth
Check and Act in PDCA cycle.

Case 5for CertifiedPlantsTo make the process safety management system of highpressure gas production facilities and boilers/ 1st classpressure vessels complete furthermore

Responsible Care Mid-term Targets
from 2006 to 2010
We have begun to make efforts to achieve the purposes of our new five years Responsible Care mid-termtargets extending over 5 years from 2006, which targets have been developed in the Environment and Safety
Meeting in December, 2005.
We are sure you will see a progress of activities plan in 2006 according to this new mid-term targets in our
next RC status report.
RC activity code
Occupational healthand safety
Process safety anddisaster prevention

RC mid-term targets from 2006 to 2010
To achieve Zero occupational injury
To achieve Zero accident

Environmental
preservation

To reduce energy consumption rate less than or equal to 0.9 of the one of fiscal 1990
To reduce a GHG emission rate less than or equal to 0.8 of the one of fiscal 1990
To reduce an amount of PRTR chemicals emissions equal to 90% of the one of fiscal 2004
To reduce an amount of VOC emission equal to 90% of the one of fiscal 2004
To achieve zero emission of wastes (Definition: To promote 3Rs and to reduce amount of
final disposal less than or equal to 0.3% of generated wastes)

Chemicals andproducts safety

To promote the developing environment-friendly products and energy saving
technologies
To implement safety assessment of products
Participation in Japan challenge program
Harmonize with REACH regulation
Pertinent assessment of new substances
To provide the latest MSDS (Including the harmonize with GHS)

Distribution safety

To reduce the environmental loads in our logistics
To ensure the safety in our logistics
To introduce the globally-harmonized system (GHS)

Dialogue withthe community

To promote the enhancement of society's confidence to us through the implementationof annual plans

Spectrum of RC

To introduce the RC activity to our subsidiaries and affiliates
To inspect our foreign and domestic subsidiaries and affiliates
To promote the continuously improvement of RC management system through theimplementation implementing of annual plans■ Main RC Activities Plan in 2006
Occupational health and safety• To assess the facilities and works by using the occupational safety and health risk assessments• To support our cooperating companies in their safety activities
Process safety and disaster prevention• To implement the new prior safety evaluation procedure
for new or additional plants at the stage from their planning to just before their trial operation• To devise the effective disaster prevention schemes
among the abutting affiliate companies• To improve the process safety management system offacilities at the certified plants
Environmental preservation• To reduce energy consumption rate more than or equal
to 1% of the one of previous year
• To reduce a GHG emission rate more than or equal to
1% of the one of previous year
• To reduce an amount of PRTR chemicals emission• To reduce an amount of VOC emissions• To approach the zero emission of waste• To promote our green procurement (especially officeand stationery supplies)

Chemicals and products safety• To harmonize with related legal amendment quickly• To understand and to evaluate our R & D from a view
point of environment, safety and energy saving• To utilize the latest MSDS
• To harmonize with REACH regulation and to collectsafety data for related substances• To review the chemical evaluation (assessment) system
Distribution safety• To implement auditing of our delivery managementcompanies• To reduce an amount of CO2 emission in distribution
Dialogue with the community• To issue an environment and safety site report• To participate in JRCC and industry segment activities(communication among members)• To participate in community activities around in oureach workplace

RC MANAGEMENT SYSTEM

09

OCCUPATIONAL HEALTH AND SAFETY

Approach to Occupational Health and Safety■ Occupational Health and Safety Activities
MGC has actively worked for our RC activities under the goalof Zero accident, Zero occupational injury and Environmental
preservation as our environmental and safety targets.
We have promoted our safety activities through theeducation and training, safety awards, asking for safetyslogan, and daily safety activities such as HIYARI-HATTO
activities, 5S-activities and foreseeing of danger activities.
In the safety week across the country, the safety message
from the president is disseminated to all employees on theintranet-website and video, and the employees confirm theimportance to ensure the safety through the lecture of the top
management at each workplace addressing safety meeting.
Transition of HIYARI-HATTO suggestion
14,00012,785

13,233

12,000
9,338
10,000
8,000

7,060

6,430

6,173

6,000
4,000

■ Working Environmental Management
In order to secure our appropriate working environment, wehave been making efforts to improve the working
environment and to maintain good one by measuring theconditions in working environment.
We surveyed the status of implementation of measuring theconditions in working environment this year and confirmed
its appropriate implementation and estimation of working
environment at all workplaces.

2,932

Comment from Representative at plant

2,000
0

In our HIYARI-HATTO activities, numbers of suggestion on
HIYARI-HATTO have been positioned as the indicator forboth improvement of sensibility and activation level of RC
activities, and we have promoted the suggestion on
HIYARI-HATTO.
The numbers of suggestion on latent HIYARI-HATTO whichtakes near accident in advance becomes majority of them.
MGC is hereafter going to enhance furthermore the safety
activities' quality and to eliminate human errors through thisenhancement.

2001

2002

2003

Suggestion(year)
2004
2005※2 Plants decreased in 2005

Explicit

LatentWe have been promoting the RC activity for cooperate social
responsibility such as Zero accident Zero occupational injury,
Environmental preservation, Product stewardship andDistribution safety. We have beenaddressing the collection of the risk
factor of equipment in our plant
through accident disaster prevention
activity since last year.
Our intention is not only to makeefforts to improve our level on
environment and safety under thecondition that all employees in theplant are united but also toharmonize with community.
Environment and safety department Manager (Yokkaichi Plant)

Catch-phrases (Naniwa plant)

10

OCCUPATIONAL HEALTH AND SAFETY

Hidetoshi Sasazaki

■ Results of Safety Activities■ Occupational Safety Risk Assessment

We have not achieved our Zero occupational injury yet,though the record of the number of lost time injuries has
kept decreasing for recent five years.
We revised the reporting form of occupational injury forensuring the implementation of safety provision andconfirming its effectiveness this year. In previous year, ouroccupational injury based on human error had increased,
and so we have made effort to eliminate it by spreading
activities of one plant to the others in the Environment and
Safety manager's Temporary Meeting whose theme waslimited only to human error. However, one occupational
injury occurred in this year following last year.
Our frequency rate on occupational injury, which is thenumber of employees with lost time injuries per one million
working hours, was 0.29 and our severity rate, which is lostdays per one thousand working hours, was 0.001.
For achieving of our Zero occupational injury, we continue
to promote the improvement of works and facilities by thefurther improvement of sensibility to danger and thecollection of the factor of danger.

Aiming for raising our level of occupational safety and health,our occupational safety risk assessment was introduced inlast year. In order to learn and understand the procedure of
our occupational safety risk assessment, the educational
workshop was convened at the each plant in this year. Thisrisk assessment is the method to evaluate the risk in advanceand to lead works and facilities to be improved, and it isdesigned so as to increase our sensibility for safety throughits process.

Risk assessment (Kashima plant)
MGC

Frequency rates
1.2

Chemical industry
Manufacturingindustries

1.14
1.03
1.02
0.97

1.0

0.98

0.99

0.98
0.92

0.83

0.88

Small group activities
for selecting
assessment target

For Safety(Pick up)

0.8
0.53

0.6

Occupational Safety Risk Assessment

Risk factors

0.4

0.29

0.28

Risk assessment
Consideration of thebest way

Self improvement(Equipment measures
to be taken)(Risk re-assessment)

0.2
0
2001

2002

2003

2004

2005

(year)

MGC

Severity rates

Chemical industry
0.16

Manufacturingindustries

0.16
0.14
0.12

0.11

0.11

0.12
0.10
0.1
0.07

0.08

0.07
0.06

0.06
0.04

1. Status of use
Products which include asbestos as the raw material
have never been produced since 1975.
2. Status of occurrence of health hazards
It has not been reported that employee's andretired employee's died of malignant mesothelioma
or lung cancer due to asbestos.
3. Further responses
We must continue to deal appropriately with ourasbestos issue according to the related laws andour guideline.

0.03
0.02

0.02

0.02
0

Our Asbestos Issue

0.001
2001

2002

2003

2004

This issue was news-released to outside the company
in 16th August, 2005.

0.001
2005

(year)

OCCUPATIONAL HEALTH AND SAFETY

11

PROCESS SAFETY AND DISASTER PREVENTION

Process Safety and Disaster Prevention Activity

MGC makes the securing of safety a top priority issue
and we proactively address the securing of safety,
which is aiming for Zero accident and Zero occupational
injury, through the promotion of self-maintenancebased on RC activities.
Furthermore, our disaster prevention system has been
constructed in case of an accident.

■ Inspection of Process Safety
As part of RC audit in each workplace every year, we
implement the inspection of process safety.
The certified plant, which has acquired approved
qualification on high pressure gas production facility andcontinuous operation of boilers and 1st class pressure
vessel, has enforced their internal audit by establishing
their related rules and guidelines.
Additionally, their executive organization for certified inspection
organization has been audited to strengthen its objectivity.
The continuous improvement of our process safety management
system has been intended by these annual audits.
High Pressure Gas Process Safety Management System
President
Environment and Safety Meeting
Director in charge of environment and safety(In charge of security management of facilities)
Environment and safety division at Head Office(In charge of self-maintenance certification)

We have addressed to increase our self-maintenancetechnologies and skills mainly on the basis of high pressure
gas production facility and boilers and 1st class pressure vessel.
In this year, Niigata plant's qualification of the Certified
Completion and Process Safety Inspector based on theHigh Pressure Safety Act was renewed following therenewal of Mizushima plant's qualification in last year.
In this qualification system, only plant, which has beenauthorized as highly level technologies, skills andmanagement by the Ministry of Economy, Trade andIndustry, is permitted to implement safety inspection by
self-security management.

RC audit

The qualification based on the High Pressure Gas Safety Act was
renewed uneventfully.
As a result of the revised requirementsof qualification, we had prepared forrenewing our qualification by collectionof our required items and hazard sources
according to the notice for certification
through a trial and error process.
I was pleased with our staff growth,though any of them had a hard time formore than a year from kick-off torenewal of qualification.

Chief administrator of certif
inspection organizatio(Appointed by the presid
Administrative structure to cinspection organizatio

organ¢Facilities management
division12■ Promote to Self-security Management

Comment from Representative at plant

Audit on administrative structure tocertified inspection organization

Confirmation of appropriate
certified inspection system

Audit on administrative structure to certified inspection organization(Mizushima plant)

PROCESS SAFETY AND DISASTER PREVENTION

Environment and safety department Manager (Niigata plant)

Hirofumi Higuchi■ The Security of Safety Activities for Facilities
In order to prevent an accident and an occupational injury,
it is important to ensure process safety and facility's goodcondition and to continue stable operation. Therefore, wehave been promoting our security of safety activities forfacilities and implementing our preventive maintenancethrough extraction of actual or latent risk factor at the plant,
implementation of security measures and review ofengineering works management.

HAZOP workshop (Niigata plant)

Work-study of leakage (Yokkaichi plant)

Trouble history (Mizushima plant)

Work-study of fire and explosion(Niigata plant)

Main security of safety activities for facilities in each plantNiigata plant

Risk assessment for high pressure gas production facility

Mizushima
plant

Activity of suggestion for improvement offacility by TPM method
Enhancement of inspection
to dead-end piping and external corrosion

Yokkaichi plant

Extraction of risk factor at production facilities
Diagnostics of failure in facility and process

Kashima plantReview our rules for periodical repair

Yamakita plant

Promotion of maintenance for prevention from accident

In the case of constructing our new facility, rebuilding present
facility and converting process, we should implement priorsafety evaluation to ensure the safety.
We revised the Prior Safety Evaluation Procedures for thePlan of New or Additional Plants in this year according to
the guideline by Ministry of Health, Labor and Welfare.
The Prior Safety Evaluation Procedures for Facility wereenhanced by adding the check items on combined fire andexplosion to the process safety evaluation.
It must be obliged HAZOP (Hazard and operability study)
and others as observational study of hazardous operability
that the high hazard ranked facility by the quantitativeevaluation.
Flowchart of Safety Pre-assessment
Collection and formulation of all the relevant data and documents
Qualitative assessment■ Emergency Management
We have constructed the self-disaster prevention system at
each workplace in case of an accident.
Each workplace has set up their disaster prevention activity
rule which has defined emergency system and activity.
Furthermore, Niigata, Mizushima, Yokkaichi and Kashimaplant, to which the Petroleum Complex Accident Prevention
Act has been applied, have entered into the regional joint
accident prevention agreement with neighboring companies
and constructed a mutual support system with them incase of an emergency. Each workplace develops their annual
disaster prevention plan and implements the periodical
training for disaster prevention. The firefighting teams at
Yamakita and Naniwa plant took part in each local skills
competition for firefighting and deserved to get a good mark.
Each plant has equipped with materials and equipment for
emergency in case of an accident in transportation of our
products. We have constructed our wide-area support
system for emergency measure by getting in touch witheach other plant, whenever an accident happens.

Quantitative assessment
Process safety assessment
Observational study by hazard rank
Check on fire and explosion because of mixing
Confirmation on security measures■ Education and Support Activities
For the stable operation in our plant, we have been promoting
our education and training for employees such as learning ofskills for maintenance, instrumentation and operation.
We have also carried out the education of our forgetfultrouble history, fire, explosion and work-study of leakage.
We have improved our sensibility and understanding forsafety through the simulation and a renewed recognition oftroubles happening in our past.

Training for general disaster prevention(Kashima plant)

Monitoring camera at the disasterprevention base (Mizushima plant)

Firefighting training(Hiratsuka research laboratory)

Firefighting skills competition(Yamakita plant)

PROCESS SAFETY AND DISASTER PREVENTION

13CHEMICALS AND PRODUCTS SAFETY

Safety Management of Product Activities

We have managed our system to secure our product safety under our products safety assessment standard
enacted in accordance with the enforcement of Product Liability Law in 1995.
In the development of our product, we assess and estimate the risks in each development stage from the studyof hazardous properties of raw materials to the disposal of products.
Flowchart of chemical substances and products safety assessment
Safety assessment

Hazard classification

Hazard assessment
Assessment ofenvironmental safety

United Nationsclassification
Japanese classification
Study of applicable law

Preparation of safety
information

Investigation to put
on the market

MSDS
Product warning label
Yellow-Card (see p.15)

Assessment of risk
management
Judgment to put on
the market

Product supply
Rationalization of productstorage and transportation
Compliance withapplicable law
Collection of customer
information

Customer information■ Safety Assessment of Chemical Substances
We have conducted several safety tests for new chemical
substances, especially biodegradability and mutagenic(Ames) tests specified by laws and regulations at our GLP
certified test facilities in Niigata Research Laboratory.
In 2005, the test facility for biodegradability was audited for
GLP conformity confirmation by the Ministry of Economy,
Trade and Industry,
dustry, and the certification was renewed onoDecember 9 (The number of renewal is six times in tthe
n addition, Niigata
ata Research Laboratory ow
wns
aggregate). In
the test facilities for
acute oral toxicity,
primary skin irritationand pathogenicity.
We conductted 52
chemical subsstancesof these safetty tests
in 2005.

GLP facility certificates

14

CHEMICALS AND PRODUCTS SAFETY■ Measures to Green Procurement
and RoHS Directive (EU)We made efforts to collect the information on certain
substances contained information at all stages frompurchasing raw materials to shipping our products for
ensuring our measures against related domestic andoverseas laws.
At first, we classified environmental concerned substances
according to the related domestic and overseas laws andcustomers' requirement, and then we conducted researchon the inclusion of environmental concerned substances in
raw materials and on the status of approach to environment
by raw material suppliers.
As a result of above mentioned research we have harmonizedwith RoHS directive, which will be enforced on July 2006,
for green procurement of customers.
GLP: Good Laboratory Practice
GLP is a quality system concerned with the organizational
process and the conditions under which non-clinical healthand environmental safety studies are planned, performed,
monitored, recorded, archived and reported. (Reference:OECD definition)
RoHS Directive: The directive is to prohibit using six specificsubstances (lead, mercury, cadmium, hexavalent chromium,polybrominated biphenyls and polybrominated diphenyl
ethers) in electrical and electronic equipment in Europe.

Safety Information Service
We established our safety information management guideline for chemicals, and we have managed our chemicals and products safety information according to this guideline and offered the information for their proper
handling to persons concerned.
In addition, we have been participating in chemical safety assessment initiatives inside and outside of Japanfor offering chemicals safety information to the world.

■ Chemicals Safety Information Service by MSDS
and Yellow-Card

Our announced substances on participationin Japan Challenge Program

MGC has prepared MSDS with the form standardized by
JIS on all of our approximate 1000 substances and offeredthose MSDS in the latest version to our customers, sales
agents and transporters.
Furthermore, we distribute Yellow-Card to transporters in caseof a transportation accident, which describes emergency
measures and emergency contact address, before
shipping our products.
Our product safety information is serviced by our productcatalogs, product warning labels and product promotions
on our website.
Just as an example, various kinds of safety information on
oxygen absorbers (AGELESS®) used to keep quality andfreshness of foods has been accessible on our website,
and also we have uploaded questions and our answers onfrequently asked questions (FAQ) on website of
AGELESS® (only in Japanese).

•1,3-cyclohexanedimethanamine■ Participation in Chemical Safety Assessment
Initiatives Inside and Outside of Japan
In 2005 government and chemical industry have launcheda joint program, so called Japan challenge program, tocollect and to address safety information on 166 chemicals
which are produced or imported at the weight of 1000
tons/year or more in Japan.
The fifty five companies and three associations made anapplication to seventy one substances of the program tosponsor at the end of 2005, and MGC also announced theparticipation in it.

MSDS•3,4-dimethylbenzaldehyde
As for the following chemicals we participate
in consortium.
•Cyclohexyl methacrylate•Benzene-1,2:4,5-tetracarboxylic dianhydride(affiliate company)

In addition, we have participated in OECD initiative for
initial assessment of HPV chemical hazard and we havealready completed any of assessment of our sponsored
three substances.
We will include a data by these program and initiative to
our MSDS and the data will be offered to social by thegovernment and/or OECD.

■ Harmonization of REACH and GHS
European Unions will put a new chemicals control
regulation named REACH into effect in ca.2007.
Japanese government will legislate globally-harmonizedsystem (GHS), which is classification and labeling systemfor chemicals.
We have developed our internal structure so as to be able
to catch the legislation movement as early as possible, tocollect information on safety and to surely reflect them on
our products at the same time with the enforcement oflaws annd regulaations.

Yelloow-Card (only in Japanese)

MSDS on MGC-Europe web-site
http://www.mgc-europe.de/msds_list.html

CHEMICALS AND PRODUCTS SAFETY

15

Environment-friendly Products andResearch and Development
We regard the global environmental preservation as common issue to the world, and we have been focusing on
development of our environment-friendly products.
We do not have many products supplied directly to consumers but we are making actively efforts to develop products
and technologies by considering energy and resource saving, low load to environment, reduction of waste, etc.
Our environment-friendly products and/or technologies
Products or technologies

Contribution to environmental preservation

Targets*
A B C

Plastics

MX nylon resin

Non chlorinated resin with high gas barrier capability●●

Iupilon® (Polycarbonate resin)

Resin with excellent transparency, durability and weather ability, used for various purposes, contributing to resources saving ●●Reny ® (Polyamide MXD6)Mineral-filled resin mainly used for side mirror stay of vehicle, contributing to the energy saving by light weight property●

Iupital® (Polyacetal resin)

Resin with excellent mechanical properties and used as the substitute for metals in various purposes●

Resin mainly used for office automation equipment, contributing to the energy saving for its light weight property●

Iupiace®
(Modified polyphenylene ether)
AI polymer ® (Polyamideimide)

Resin for thin outer housing of smaller and lighter office automation equipment on the basis of excellent heat resistance●●

Treatment of waste water

Diafresh® series

Keep quality andfreshness
Chemicals
Technologies, etc

OR-SON AT®

Agent making persistent organic materials decomposable and drastically reducing the generation of sludge

F-SON®

Agent for separation and treatment of fluorine compounds, which can easily reduce the fluorine content to 8 ppm or less

NEOSOL®

Agent to prevent the oil-base paint mist from adhering and to make easy the recovery ofdispersed paint in the recycled water in a painting booth●

NEOPOCK®

Chemical agent for effective aggregation and separation of water-based paint, water soluble polymer, etc.

●

Deslime®, Contlime®

Water treatment agent for recycled cooling water in piping aiming both the cleaning and long-life of said water,and high thermal efficiency●

DEOPOWER®

Deodorant agent to solve the issue of bad odor at sewage-treatment plant, etc.

AGELESS®

Agent keeping quality and freshness in food sector and, as a result, reducing waste of foods andpromoting efficiency of production and distribution●

AGELESS・OMAC®

New packaging film as the substitute for canned food, contributing to weight saving and waste reduction●

RP preservation system

Oxidation and corrosion resistant system for metals and electronic parts, contributing to reduction of waste●

Alfish®

Transportation technology enabling a high density transportation of fresh fish●

Pharmakeep®

Agent keeping quality and performance in medicines and medical device, and improving their shelf life●

AIR-G®

Eco-friendly system for insect proof and preservation of cultural property, used as the substitute formethyl bromide referred to as ozone layer depleting substance

Methanol, Ammonia,
Methylamines, etc

Clean natural gas based basic raw materials and fine chemicals●

Methacrylates

Raw materials for vehicle coating based on acrylates, contributing to the reduction of fuel cost●

High-purity Terephthalic acidRaw material for PET, contributing to the reduction of wastes by its recycling

Hydrogen peroxide

Substitute for bleaching agents containing chlorine, used in a pulp and paper production process●

GASKAMINE 240®

Reduction of solvent by applying it to non-solvent epoxy resin (two liquid type) because of its lower viscosity●

Dimethylether (DME)

Research and development of its application to automobile's clean fuel produced with natural gas

Fuel cell

Research and development of methanol fuel cell with which electricity is directly generated without hydrogen reforming●

Materials for Environment-FriendlyPrinted Circuit Board

Heat resistant materials for printed circuit board, suitable for lead-free solder●

Persulfates

Purgation of polluted underground water and soil●

Method for manufacturing ofAromatic aldehydes

Reduction of harmful waste by the completely closed process of super acid catalyst●

MGC-MH process

Process for the production of high purity hydrogen gas from methanol and water●

Development of natural gas field,
Development of geothermal steam

Development of clean energy and its application to raw material Application of geothermal steam to electric power generation ●●Method for manufacturing of
Trimethylolpropane

Production technology that recovers and recycles by-product (sodium formate) as raw material●

Method for manufacturing of
Methyl methacrylate

Production technology based on new ACH method using natural gas without generating by-product ammonium sulfate

●

●

AR

Capacitor mainly consisted of AR (carbon) and aluminum is the electricity storage system with benefit of long life andless harmful materials

●

●

●

●
●

●
●
●
●
●

●

●

●

●
●

●

●

●

●

*) Targets of MGC products and/or technologies contributive to environmental preservation

CHEMICALS AND PRODUCTS SAFETY●●

mark A: Energy saving and/or resource saving: Contributive to resource saving such as energy saving, reduction of water consumption, reduction of raw materials, etc. and the
reduction of emission of carbon dioxide
mark B: Low environmental load: Contributive to the removal of harmful materials through the reduction of consumption of chemical materials, their reduction of emission andgeneration, water treatment and emission gas treatment.
mark C : Reduction of wastes: Contributive to the reduction of waste materials through the prevention of generation of wastes, their recovery and their recycle.

16

●

●

Plastic products

Iupiace®
(DVD mechanical chassis)

MX nylon®
Soda bottle

Iupilon®
(Headlight, Taillight)

Reny ®
(Side mirror stay)

Iupital®
(Planetary gear)

For keep quality and freshness

Environmental chemicals
Diafresh® series
Treatment ofTr
waste water includ
uding persistentudorganic materialsorTreatment of wa
wast
ste water
including Fluorine
ne
e

OR--S
-SON AT® F-SON®
Deccoloring ofwaaste water
NEOPOCK® NEOSOL®
AGELESS®

Treatmenent of waste watereninclluding waterer –based paint

Treatment ofwaste water
including oil b
based
paint

Water treatment agent is
injected cooling tower

RP preservation system®

AGELESS OMAC®

Technologies and others
Methanol fuel cell
Illuminated tree by fuel cell
(INCHEM TOKYO 2005 exhibit)

DME fuel autotruck and DME fuel station
Materials for Eco-FriendlyPrinted Circuit Board(Usage photo)Development ofgeothermal steam

CHEMICALS AND PRODUCTS SAFETY

17

ENVIRONMENTAL PRESERVATION

Approach to Reduce Environmental Load

MGC makes an efforts to promote the below, in accordance with reducing environmentalloads in business activities as our fundamental policy
Energy saving activity
Reduction of emission volume of green house gas
Reduction of emission volume of chemicals listed by PRTR law
Reduction of air pollutant substances
Zero emission of wastes

Conversion of fuel from coal to natural gas
g

Activated sludge
ge treatment plant

Off-gas eliminator for harmful substances

18

ENVIRONMENTAL PRESERVATIONClassified waste
waste-yard
yard

Analyzing a substance by spectrophotometer

Environmental Load in Our Business Activities
The summary of our environmental loads status in FY2004 is below. We address to ensure the efficient use of inputtedresources and materials as well as the reduction of emission and waste.

● Energy

consumption● Water● Raw materials

consumption(as crude oil)
522,000 kl

39,497,000 m3

Input

MGC business activities
Emission orTransfer● Atmospheric emissions● Emission to soil
0 ton

CO2 emission
1,451 k tons-CO2
SOx emission
280 tons
NOx emission
792 tons
Soot and dust emissions 59 tons
Emissions of PRTR
listed chemicals
259 tons● Release to water area
Drainage volume12,363 km3
COD emission
238 tons
Total nitrogen emissions 471 tons
Total phosphorus emission 65 tons
Emissions of PRTR listed
chemicals

Terms of our inputtedresources
Energy consumption:
Total amount of fuels (heavy oils, etc),
purchased steam and purchased electric
power consumed in our businessactivities
Water consumption:
Total amount of drinking water andindustrial water used for businessactivities

26 tons● Generation of waste
Transfer to off-site
14,320 tons
Off-site recycles
11,094 tons
Final disposal waste
521 tons

Terms of our emission and waste
CO2 emission
SOx emission
NOx emission
Soot and dust emissions

Total emission volumes of carbon dioxide(CO2) in our business activities
Total emission volumes of SOx contained in exhaust gas from our utility facilities
Total emission volumes of NOx contained in exhaust gas from our utility facilities
Total emission volumes of soot and others contained in exhaust gas from our utility
facilities
Emissions of PRTR listed chemicals to atmosphere
Emission volumes of the listed 45 chemicals to the air
Drainage volume
Volumes released to the public water area after re-treatment of drainage from our businessactivities
COD emission
Multiplying our drainage volumes by COD concentration in our drainage gives the volume
Total nitrogen emission
Multiplying volumes of our drainage by nitrogen concentration in our drainage gives thevolumeTotal phosphorus emission Multiplying volumes of our drainage by phosphorus concentration in our drainage gives
the volume
Drainage of PRTR listed chemicals to water area
Drainage volumes of the listed 45 chemicals to the public water area
Transfer to off-site
Volumes transferred for external treatment of our waste to off-site
Final landfill waste
Final disposal amount after off-site treatment

ENVIRONMENTAL PRESERVATION

19

Environmental Accounting
Transition of investment and cost

MGC has been introducing and has been using theenvironmental accounting along the guideline of the
Ministry of the Environment since fiscal 2002. It is intended
to be of help to the MGC's efficient environmental
preservation activities and to keep clearness of ourapproaches for the public by disclosing them.

Investment(Million yen)
1,200

1,107

Cost
(Million yen)
7,500

1,000
6,945

600

■ Environmental Preservation Cost

514

6,500
6,380

400

【Amount of investment】

Investment

6,118

200

In fiscal 2004, production capacity has been reinforced atsome production facilities.
The pollution prevention cost increased for the capital
investment to control an increase of environmental load tothe atmosphere and water based on said reinforcement.
To prevent the depletion of natural resources and theglobal warming, MGC promotes the approach to energy
saving and efficiency improvement of its use. The steam
turbine equipment was set up at the Niigata plant becauseof the energy recovery in fiscal 2003. In addition, capital
investment was done so that it may improve the efficienciesof the operation of existing equipments and the energy
consumption at the Mizushima plant in fiscal 2004.
As a result of these investment, the amount of MGC's
environmental preservation investment increased by 340
million yen compared with fiscal 2003, and it resulted in theamount of 1,107 million yen.

7,000

767

800

6,000

Cost

0

5,500

2002

2003

2004

(FY)

【Amount of cost】
Effective energy consumption can control the generation of
CO2 that causes global warming. The cogeneration and thehome generation of electricity, etc. are effective facilities to it.
MGC has introduced and has used actively theseequipments. Therefore, 'Global environmental preservation
cost' including the cost of operation and maintenance ofthem has increased. In addition, 'Pollution prevention cost',
the most of which was the one for prevention of waterpollution, increased with the increase of production output.
As a result, the amount of the environmental preservation
cost increased by 565 million yen compared with fiscal
2003, and it resulted in the amount of 6,945 million yen.

Classification in accordance with activities
Unit (Million yen)

Cost

Investment
Fiscal2003

Pollution prevention cost
Onsite Global environmental
cost preservation cost
Resource recycling cost

Fiscal2004

ChangeFiscal2003

Fiscal2004

Change

202

646

444

1,898

2,097

199

303

155

-148

1,148

1,455

307

0

1,086

1,026

-60

115

115

Upstream or downstream cost

0

26

26

147

14

-133

Management activities cost

10

0

-10

414

531

117

Reseach and deveropment cost

137

154

17

1,532

1,608

76

0

12

12

9

27

18

Social contribution cost
Environmental damages cost
Total

0

0

0

147

188

41

767

1,107

340

6,380

6,945

565

Classification in accordance with environmental preservation category
Unit (Million yen)
Global warming cost
Air conservation cost

20

Cost
Fiscal2003

Fiscal2004

Change

1,148

1,455

307

656

617

-39

Water, soil, and ground preservation cost

1,226

1,475

249

Reduce and recycle of waste cost

1,086

1,026

-60

ENVIRONMENTAL PRESERVATION

■ Environmental Preservation

Effect
The amount of the SOx emission has
been reduced greatly by converting theenergy source to the one with less air
pollution and by strengthening thedesulphurization equipment.
Moreover, the reduction of the use
amount of harmful substances and theintroduction of removal equipment ofthem have decreased the amount of the
PRTR emission. The amount of otheritems to be considered somewhat
increased mainly with the increase of
production output.

■ Economic Benefit According

Fiscal2003

Fiscal2004

ChangeSOx emission
Atomosphererelated
NOx emission
amountSoot and dust emission

tons

417

280

-137

tons

767

792

25

tons

56

59

3

Water input

Million m

38

39

1

Water-related COD emission
amountTotal Nitrogen emission

tons

210

238

28

tons

464

471

7

Total Phosphorus emission

tons

53

65

12

PRTR emission

tons

299

285

-14

24
25

k liters

510,000

522,000

12,00022

k tons-CO2

1,471

1,451

-20

GlobalEnergy input
environment(as crude oil)relatedamountCO2 emission
Resource Waste generation
recyclingrelated amount Final landfill

3

26

23

k tons

110

142

32

k tons

0.53

0.52

0

to the Environmental
Preservation Measures

Unit

The table in the right hand side shows thesubstantially calculated economic benefit.
The sale profit of 69 million yen was
obtained because of the sales of fertilizer
made from waste and of the fuel madefrom wasted oil.
Moreover, the cost for treatment anddisposal of waste was reduced becauseof the reduction in the amount, and thebenefit of 163 million yen was obtained.

Relevant
Page

Unit

27

Fiscal2003 Fiscal2004

Gain on sale ofvaluable resource

Fertilizer made from waste, Refuse-derived
fuel (RDF), Fuel from waste, etc.

Million yen

109

69

Reduction of
disposal cost

Reduction of waste disposal cost comparedwith previous year

Million yen

55

163

Implemented in relation to the Environmental Accounting Guidelines 2005
Targeted period:
From April 1, 2004 to March 31, 2005
Scope:
unconsolidated basis
Counting methods
Investment:
The amounts, associated with environmental preservation, are prorated from its
ratio in capital spending during the fiscal year.
Cost:
The amounts are associated specifically with environmental preservation, and thedepreciation of machinery and equipment are included.
Economic benefit: The amounts are as measured in actual monetary value, and estimated economic
benefit is indicated by physical unit.

Integrated environmental load and Environmental efficiency
To understand various environmental damages caused by the MGC’s
production in all, amount of the integrated environmental load andenvironmental efficiency were calculated.
Referring 'Life cycle impact assessment method based on endpoint
modeling (LIME)' (*note) that is offered by Japan Environmental
Management Association for Industry, the amount of integrated
environmental load was calculated by multiplying integration
coefficients by the main environmental loads of MGC.
The graphs in the right hand side show the integrated environmentalload index and the environmental efficiency index based on fiscal
2002. Each index have been improved respectively by 8 points and 28
points compared with last year.

Integrated environmental load index(based on fiscal2002)

40

10
00

10
04

2002

2003

Amount of the integrated environmental load=∑(Environmental load) i x (Integration coefficients) i

2004

(FY)

136
6

i : Environmental load inventory

Environmental efficiency=｛(Sales) / (Amount of the integrated environmental load)｝x 100*note
Life cycle impact assessment method based on endpoint modeling (LIME):
Method of evaluating damages that emission of environmental loads gives to four objects (humanhealth, biodiversity, primary producer, and social property) that should be protected. After saiddamages are quantitatively analyzed and evaluated, the integration coefficients are multiplied, asingle index (amount of integrated environmental load) is led

96
6

10
00

108
0

40
2002

2003

2004

(FY)

ENVIRONMENTAL PRESERVATION

21

Approach to Global Warming Prevention
About the establishment of the GHG task force
The GHG task force has been established in fiscal 2005 as an organization to promote the emission amountreduction of greenhouse gas (GHG).
This task force opens the secretariat within the Environment and safety division, and is composed with thepersons of distribution department, of research and technology department, and of four plants where theamount of the energy consumption is large (Niigata, Mizushima, Yokkaichi and Kashima).
MGC is working on energy saving and the GHG emission amount reduction furthermore with this team as thecentral organization.
Transition of energy consumption amount and consumption rate
Energy consumption amount
Energy consumption rate
(as crude oil x 103kl)(Fiscal 1990=100)
104.0 100.7
900
110
100.2
100
94.8
94.7
800
100
90.2 88.6
700
90
600
80
541 517 518 518 510 522 534
500
70
426
400
60
300
50
200
40
100
30
0
20
1990
1999 2000 2001 2002 2003 2004 2005

Component ratio of energy sources(Fiscal 2004)

Natural gas

13.7%
6.2%

32.8%

EnergyConsumption
rate

Coal
Purchased gas

16.2%
11.4%

11.9%
7.7%

(Forecast)

EnergyConsumption
amountHeavy oil

Purchased
electric power
Purchased steam
OthersTarget of energy consumption
rate in fiscal 2010

Transition of CO2 emission amount and emission rate
CO2 emission amount(k tons-CO2)
3,500

100

103.9

103.7 101.3
96.1

3,000

CO2 emission rate
(Fiscal 1990=100)
110

94.0

100

88.1

2,500

85.1

2,000
1,500

90
80

1,537 1,468 1,459 1,515 1,471 1,451 1,454
1,127

70

1,000

60

500

50

0

40
1990

1999 2000 2001 2002 2003 2004 2005

Detail GHG Emission amount(converted to k tons-CO2)

CO2 (energy origin)
CO2 (non-energy origin)
Methane

1,192
259
1.3

Dinitrogen oxide

2.2Hydrofluorocarbons

3.0

Perhydrofluorocarbons

0.0

Sulfur hexafluoride

0.0(Forecast)

CO2 emission
amountCO2 emission
rate

Target of CO2 emission
rate in fiscal 2010

Total

1,458

From this report, the base (denominator) of the emission rate calculation
has been changed from the simple total of product amount to the amountconverted into the standard product. Therefore, the past data have been recalculated.

Message from the GHG task force leader
The Kyoto Protocol came into effect in February, 2005, and Japan came to have the obligation of 6% reduction of the GHG emission in comparison with 1990 for the first commitment period (2008-2012). At the result of this obligation a further effort is required to the industrial sector.
The GHG task force has been established newly as an organization to promote the sure GHG reduction
measures from the company-wide point of view.
The mid-term numerical targets for the reduction of both the energy consumption rate index and the GHG
emission rate index were respectively fixed to 0.9 or less and to 0.8 or less, compared with 1990.
To achieve these targets by the final year fiscal 2010, we continue to make efforts to the reduction.

22

ENVIRONMENTAL PRESERVATION

Corporate Officer Yasuo Sugihara

■ Energy Saving Activities
MGC has worked on the reduction of the energy consumption rate by 1% every year, and by 10% comparedwith 1999, as the mid-term target from 2001 to 2005.
The amount of the energy consumption in fiscal 2004 on thebasis of crude oil was 522,000 kL in total of all plants, and it
had increased by 2.4% compared with the previous year.
This depends on the increase of production output by 6%.
However, the energy consumption rate was improved by
4.8% compared with the previous year, and achieved
fiscal year target of 1% reduction. Moreover, a mid-termtarget of 10% reduction compared with 1999 also wasachieved earlier than expected.The investment for energy
saving and the stabilization of plant operation, etc. shown
below were executed as the Concrete countermeasures
for the energy consumption rate improvement and theeffect of the energy saving in total corresponds to
11,000kL of crude oil.
• Generation of electricity using surplus steam by the
introduction of stream jet compressor• Effective use of exhausted steam by change fromcondensing turbine to back-pressure turbine• Fuel saving by improvement of boiler control• Optimization of operating conditions such as distillation towers• Improvement of the energy consumption rate by stabilization of plant operation■ Countermeasures for Reduction ofGreenhouse Gas Emission
Countermeasures for reduction of greenhouse gas emission amount are advanced by the conversion of fuel to theone with less CO2 emission and by the decrease of greenhouse gas generated from manufacturing process, in addition to energy saving.
The amount of CO2 emission in fiscal 2004 was 1,451,000
tons and this means 1.4% decrease compared with theprevious year. Moreover, the CO2 emission rate had decreased by 6.3% compared with the previous year andthis means the big improvement.
The amount of five kinds of greenhouse gas emission otherthan CO2 is negligibly less than that of CO2. Therefore, inthe breakdown of the amount of the emission including
CO2 and said five kinds of greenhouse gas, the amount of
CO2 originated from energy generation was 1,192,000
tons, 82% of the whole, and the one originated from production process, that is, non-energy generation was 18%.

gas (the city gas 13A) in October, 2005. As a result, thereduction in the amount of the CO2 emission is expected
to be about 60,000 tons a year.
And the proportion of the natural gas in the energy sourceof all our plants is expected to reach 40%.
Moreover, MGC continues to participate in the business ofthe geothermal generation of electricity which hardly generates CO2.

Piping for city gas receiving (Yokkaichi plant)■ Approach to Energy Saving in Distribution'MGC's entire distribution system' was constructed in January, 2005.
The improvement of efficiency in distribution and promotion of energy saving have been intended by the unitary
management of the distribution of chemicals according tothis distribution system.
• Promotion of modal shift
Comparison of the freight charges of track with the one of railway together with indication of their CO2 emission rate and observation of its amount in the MGC's distribution system.

• Improvement of loading rate of track and enlargementof transportation lot
Improvement of loading rate using freight combination function of
the distribution system, Transportation with proper sized vehicle,
Enlargement of transportation lot by use of large-scale tanker

Large-scale exclusive tanker for methanol transportation■ Using of Clean Energy
Our consumption ratio of the natural gas being clean energy was large and that accounted for 33% of all our energy
source in fiscal 2004.
In addition, the fuel of the cogeneration process in the
Yokkaichi plant was converted from coal to the natural

The method to totalize and to use the data based on the
distribution system is under study to comprehend the energy consumption and CO2 emission.
MGC is going to set the targets of energy saving and CO2
emission reduction based on quantitative data in distribution, and is going to work on the reduction measures.
ENVIRONMENTAL PRESERVATION

23

Approach to Chemicals Release Reduction■ PRTR Chemicals in the JCIA's List

■ Volatile Organic Compounds (VOC)

MGC has been voluntarily continuing the grasp and reduction of the amount of PRTR chemicals released andtransferred from its plants.
(Those PRTR chemicals are listed by Japan Chemical Industry Association (JCIA), and the PRTR Law-listed 354
chemicals are all included in the JCIA's list.)
MGC investigated its emission and waste by detecting
481 kinds of chemicals that include 480 JCIA listed chemicals and hydrocarbons consisted of 4-8 carbon atoms(except for said 480 chemicals). And it was made clearthat 73 kinds of chemicals correspond of the 481 chemicals in fiscal 2004.
The total emission amount was 507 tons, about 2% reduced, compared with the previous year. The total transferred amount was 843 tons, about 44% reduced, compared with the previous year.
The target value of reduction in the RC mid-term targets is20%, compared with fiscal 1999 and we had already achieved 67% reduction in fiscal 2004.
(This PRTR investigation result contains the data of the
combination plants in Mizushima plant.)

Along with the revision of the Air Pollution Control Law, theusers of facilities whose VOC emission is to be controlled
are being obligated to register these facilities to the local
government and to measure the emission density. MGC
properly deals with the registry and the measurement
based on the regulations.
The VOC chemicals registered by MGC are all included in
the JCIA's PRTR list. And we voluntarily and continuously
continue to cut down the emission amount.
The actual results of the VOC emission amount in fiscal
2004 were 445 tons.
[The one hundred typical VOC chemicals that the Japanese Ministry of the Environment showed and the chainhydrocarbons consisted of 4-8 carbons (Above-mentioned 480 chemicals were excluded) were totalized. The
data of the combination plants in Mizushima plant are included.]In the responsible care mid-term target (2006-2010),
MGC has set the target to reduce 10% VOC emission,compared with fiscal 2004, and MGC is going to work on
its reduction through the concrete measures in each plant.
• Main VOC emission

Total Emission Volume of the PRTR Chemicals
in the JCIA's List
Emission Volume(tons/year)[ ] Number of MGC's chemicals
Emission Volume

4,000
[61]
3,000

2,639

[69]
2,419
[71]

2,000

1,707

[68]
1,539

[65] [64]1,244 1,313

0

24

[70]
816

1,000

[70]

[73]

517

507

1996 1997 1998 1999 2000 2001 2002 2003 2004 (FY)ENVIRONMENTAL PRESERVATION

Dichloromethane, Methanol, Xylenes, Methylethylketone

Volatile Organic Compounds (VOC)
The 'Volatile Organic Compounds' is a genericname of organic compounds that become gas in theatmosphere because of their volatility.
VOC is one of the causative agents of the suspended particles and the photochemical oxidants
whose influence on person's health is feared.
The idea of 'Best mix' has been included in the revised the Air Pollution Control Law in 2004, as aframe of the emission control measures of VOC.
'Best mix' is the coexistence of regulations to the
VOC emission facilities and voluntary approaches tothose to which said regulations are not applied.

■ Registered Chemicals on the Basis of■ PRTR Law

PRTR

MGC grasps the amount of PRTR chemicals that are released in the environment or transferred outside the plantas waste or drainage, and also reports said amount to theadministrative body once a year.
In the results in fiscal 2004, it was made clear that 45 materials are those to be registered, since they are includedin the listed 354 chemicals by PRTR Law.
The total amount of the emission was 285 tons, and was
reduced about 4% compared with the previous year, andthe amount of transferred was 261 tons, also reduced inabout 21%.
The following table shows the registered chemicals by
MGC on the basis of PRTR Law and the details of those
whose total emission amount in fiscal 2004 was 0.1 tons
or more.
(The data in listed table are those only by MGC.)

PRTR is the acronym for Pollutant Release andTransfer Register.
It is based on the Law Concerning Reporting, etc. of
Release of Specific Chemical Substances to the Environment and Promotion of the Improvement of their
Management (so-called PRTR Law), and is a mechanism according to which the amount of released andtransferred harmful chemicals are grasped, totalized, and made public.

PRTR Law registered chemicals (results in fiscal 2004)
No.

(unit: tons/year)

Emission AmountChemicals

EmissionTransfer

Air

Water

Soil

Total

Total

145

Dichloromethane

160.6

0.0

0.0

160.6

4.5

63

Xylenes

73.0

0.0

0.0

73.0

38.0

283

Hydrogen fluoride and it's water-soluble salt

0.7

18.0

0.0

18.7

0.2

42

Ethylene oxide

7.6

0.0

0.0

7.6

0.0

227

Toluene

6.3

0.0

0.0

6.3

5.9

40

Ethylbenzene

4.9

0.0

0.0

4.9

0.0

253

Hydrazine

0.4

3.1

0.0

3.5

0.0

304

Boron and it's compounds

0.1

3.2

0.0

3.3

0.2

224

1,3,5-Trimethylbenzene

2.1

0.0

0.0

2.1

11.0

310

Formaldehyde

0.6

1.0

0.0

1.6

8.6

320

Methylmethacrylate

1.2

0.0

0.0

1.2

19.0

311

Manganese and it's compounds

0.0

0.8

0.0

0.8

0.4

299

Benzene

0.6

0.0

0.0

0.6

0.1

312

Phthalic anhydride

0.5

0.0

0.0

0.5

3.4

313

Maleic anhydride

0.3

0.0

0.0

0.3

0.0

54

Epichlorohydrin

0.2

0.0

0.0

0.2

0.4

Others (29 chemicals)

0.1

0.1

0.0

0.2

169.7

Total (45 chemicals)

259.2

26.2

0.0

285.4

261.4

Registered Amount (Emission and transfer data in fiscal year)
2001

2002

2003

2004

Number of Registered

46

42

44

45

Emission (tons/year)

617

507

299

285

Transfer (tons/year)

1,139

360

331

261

ENVIRONMENTAL PRESERVATION

25

Approachpp
to the Atmosphere,p
the Waters and the Soil
S
■ Prevention of Air Pollution
MGC has been working on the reduction of the air pollutant
sulfur oxide (SOx), nitrogen oxide (NOx), soot and dust, etc.
The countermeasures for the SOx reduction have been
executed, for example, by setting up flue gas desulphurizationequipment of the boiler exhaust gas, and replacing the fuelto low sulfur heavy oil and city gas (natural gas) etc. MGC
has kept their concentration and total amount to be fully
lower than those determined by laws and regulations andhas managed them.
The total emission amount of NOx and the soot and dust
has increased in fiscal 2004, compared with the previous
year. However, SOx has desirably decreased by 33%
because of decrease in heavy oil C consumption.

SOx Emission (tons/year)
1,500
1,000

624
500
0

1999

408

384

424

417

2000

2001

2002

2003

280
2004

(FY)

NOx Emission (tons/year)
1,500
1,000

897

872

1999

2000

766

724

767

792

2001

2002

2003

2004

500

■ Prevention of Water Pollution
In order to prevent the pollution of river and sea, each plant
manages the waste water treatment equipments of theneutralizing processing, the activated sludge processing,and the cohesion precipitation processing, etc. andwatches drain water quality.

0

150
100

COD Emission (tons/year)(FY)

Soot and dust Emissions (tons/year)

77

66

50

52

62

56

59

2002

2003

2004

1,500
0
1,000
500
0

502

1999

504

2000

392

2001

304
2002

210

238

2003

2004

(FY)

COD: Chemical Oxygen Demand. An index of water pollution,
which indicates the amount of oxygen consumed tooxidize and break down organic substances in water.

Total nitrogen Emission (tons/year)
1,500
1,000

800

733

640
381

1999

2000

2001

2002

464

471

2003

2004

(FY)

Total phosphorus Emission (tons/year)(FY)

The emissions standards are regulated in concentrationand in total emission etc., depending on the law, theordinance and the agreement. Each plant has released thedrain satisfying the restriction value to the public waters by
waste water treatment.
The total emission amount in fiscal 2004 has increased,compared with the previous year in COD, total nitrogenand total phosphorus with the increase in production.

The equipments (transformer, capacitor and stabilizer, etc.) that
contains PCB used in the past are in the strict custody of us.
Because the wide-area PCB treatment facilities of Japan
Environmental Safety Corporation (JESCO) finally started
the operation one by one, MGC appropriately advances
processing of PCB mentioned above.

and Groundwater Contamination

200
100

26

2001

■ Investigation of Soil

300

0

2000

■ Control of PCB (Polychlorinated biphenyl)

500
0

1999

48

45

47

62

52

65

1999

2000

2001

2002

2003

2004

ENVIRONMENTAL PRESERVATION(FY)

MGC investigates the used situation of harmful substances in
production, and also of underground water around the plant.
We continue to carry out self-management to prevent fromsoil and groundwater contamination and countermeasures
for said prevention on the basis of the Soil Contamination
Countermeasures Law and the ordinance of the municipality.

Zero Emission of Waste
MGC, under it’s waste management system, has been working on the overall waste countermeasures consisting ofpromotion of 3Rs of waste, that is, 'Reduce, Reuse, Recycle', management of proper processing of waste (observanceof the law, management of the waste management of traders who are consigned processing), and promotion of zero
emission.
President
Director in charge ofenvironment and safety

Definition of zero emission
Decreasing the amount of final disposal(Waste Management Division)

Environment and
Safety Meeting
Waste treatment committee

Laboratories(Secretariat: Environment andsafety division (Head Office))

Head Office

to 0.3% or less of the amount of waste

Environment andsafety department
Environment andsafety department
Administrative andpersonnel center

PlantsBranch Offices

Administrative group■ Results of Waste Reduction
The amount of waste to off-site in fiscal 2004 was able to be
suppressed to the average in the previous year, though theamount of waste generation from the production processes
showed 32,000-ton increase as output increased.
The recycling rate became 32% (total recycling amount ÷generated amount x 100), and this shows the 47% decrease,
compared with the previous year.
Because the most of the wastes are waste oil (50%) andsludge (24%) which are rarely recyclable, outward transferred
amount has been decreased by onsite treatment to reduce
their weight and volume.

generation by the promotion of 3Rs■ Approach to Zero Emission
Up to now, the waste emission rate had been defined on
the basis of the outward transferred amount. However,
because the on-site treatment was not reflected on thisdefinition, we redefined it with the ratio of the amount of
final disposal to the amount of waste generation.
The waste emission rate in fiscal 2004 was 0.37%.
The amount of final disposal leveled off since fiscal 2002
(more 500 tons), though it had been able to be reduced
greatly every year since fiscal 1990 (less 3,000 tons).
To break this state, each workplaces strengthened thesegregated collection of valuable things and the developmentof recycling traders etc., and the amount of final disposal infiscal 2004 was reduced by 7 tons (1%) less than theprevious year.

Transition of waste management amountk tons/year
150

Transition of final disposal and waste emission rate
Generated amount

142.3
112.6

120

109.7

1.84

Final disposal (tons/year)

Recycled amount

Waste emission rate (%)

Transferred amount

109.8

1.02

95.1
90
60
30

1,748tons
57.5
21.6

67.6

64.1

20.2

17.4

51.0

2001

2002

2003

0.48

0.48

527tons

528tons

521tons

2002

2003

2004

0.37

14.3

14.1

0
2000

1,149tons

45.6

2004

(FY)

2000

2001

(FY)

Results of waste treatment in fiscal 2004
Recycled
amount34.5 k tons
(24%)

Reducedamount93.5 k tons
(66%)

Simple incinerated
amount2.4 k tons

Outward transferred
amount14.3 k tons
(10%)

Waste generated
amount142.3 k tons
(100%)

Onsite treatment

Reduced amount
2.7 k tons
(2%)

Recycled
amount11.1 k tons
(8%)

Internal disposal
amount0 ton(0%)

Off-site treatment

Final disposal
amount0.5 k tons(<1%)

ENVIRONMENTAL PRESERVATION

27

DIALOGUE WITH THE COMMUNITY

Environmental Communications

MGC continues to enhance the reliability from the society through various environmental communication
activities.

■ Publication of Environmental Report andSite Report
MGC issues both Japanese and English version of the environmental report, and is distributing it not only to thegovernment offices and the enterprises concerned, etc.
but also to the communities near the workplaces. MGC
also discloses it to the public through its web site.
The Kashima plant has newly issued Environmental and
Safety Report as plant version site report following the Niigata pplant.
It discloses information about the environ
environmental load data
off the plant, and the activities on the environment andsaafety.

■ Participation in Exhibition
MGC and its affiliates exhibited the booth with products
and developments as themes both the 'Eco-ManufactureShow' and the 'Advanced Materials Show' of the trade fair
'INCHEM TOKYO 2005' exhibition which held at the Tokyo
Big Sight in November, 2005.
In the energy field, there were exhibited new fuel DME (dimethyl ether), high purity hydrogen generating-refining
device and direct methanol type fuel cell.
In the environmental field, there were exhibited waste water treatment agents and advanced water treatment
agents.
Especially, the fuel cell, under development as a portable
power supply, was not only the exhibition but the lighting
up MGC's booth by the lights on the Christmas treeplaced in the booth.

Environmenttal and Safety Report (plant version)■ Participation in JRCC's Community
Dialogue Meeting
eting
MGC has been participating in the community dialogue
meeting held by the Japan Responsible Care Council(JRCC).
The Mizushima plant and the Kashima plant respectively
attended the Okayama area meeting and the Kashima
area meeting, both held in February, 2005.

28

DIALOGUE WITH THE COMMUNITYINCHEM TOKYO 2005

■ Relations with Local Communities• Cooperating in the job education
In each workplace, there are held the plant visit for the
local citizens and the students.
The Hiratsuka Research Laboratory accepted an offer ofthe visit for job education from the local high school, andheld it in July.
The object of this visit and experience through this visit
was to deepen more the students' outlooks on the occupation.
Students were listening eagerly to the explanation of a research for the application of plastics etc., while showing
tense looks.

• Participation in community event, offer of facilities
We promote the communications with local community byparticipating in community festival, and opening the gym
and the ground etc. to the people in local community.

Summer festival inresident's association

Matsuhamafestival• Cooperating in the local fire fighters' chemical training.
The fire fighters of the Niigata fire station learned aboutchemicals in the laboratory of the Niigata plant.

HANAMI (Viewing party of cherry blossoms)
in the yard of Niigata plant■ Contributions to society• Support to NPO
The Mizushima plant accepted the visit of the Cambodianstudents, etc. studying in Japan with an introduction fromNPO 'Heart of Gold'* in August, 2005. The plant tour was
carried out after the explanation of plant's outline.

• Cleaning volunteer work
Each workplace regularly carries out the cleaning volunteer work around it.

*'Heart of Gold'A NPO that aims to do support service etc. of thedweller's independence in stricken area and trouble
spot, represented by Ms. Yuko ARIMORI, famous
marathon runner.
• Support to disaster damage
MGC, wishing an early revival from the disaster without
losing time, contributed the monetary donation throughJapan Red Cross for the United States hurricane Catherine damage and for the damage of the northern Pakistan
earthquake.

DIALOGUE WITH THE COMMUNITY

29

ENVIRONMENT AND SAFETY IN AFFILIATES

Environmental and Safety Activities in Affiliates■ MGC Group Environmental■ MGC Group’s Fundamental Policies on

The environmental and safety information exchange
meeting of the MGC group had started in 2003, and now iscomposed of 12 domestic affiliates that handle chemicals.
The meeting is held twice a year in order to improve theenvironmental andd safety activities of each group member
g of each group member’s activities
by the spreading
to the others annd by
the disseminatioo n ofthe latest trend of theregulations etc.
Moreover, the MGC
Group’s fundamental
policies on environ
nment
and safety were ena
acted
in this year to pro
omote
a further environm
mentaland safety activities.

Environmental and safety targets

and Safety Information Exchange Meeting

Environment and Safety

Zero accident, Zero occupational injury and Environmental
Preservation

Fundamental policies• Ensuring of health and safety in our operations• Securing security management of facilities and increasing
self-maintenance technologies and skills• Reducing environmental loads in business activities• Ensuring safety in use, handling and disposal of products• Developing environment-friendly and safety-conscious products
and technologies• Ensuring environmental preservation and safety in the logistics ofobtaining raw materials and storing and delivering our products• Enhancing of society’s confidence to us■ Environmental and Safety Inspection

MGC group’s
p fundamental p
policies onenvironment andposterd safetyf

Aiming further improvement of environmental and safety
activities, MGC started the environmental and safety
inspection to the group affiliates in 2004. Three or four ofthe member companies have been inspected every year
and, therefore, it makes a round in three years.
Overseas affiliates are also inspected in similar to the domestic
ones to promote the environmental and safety activities.

MGC group environmental and safety information exchange meeting

30

A.G. International Chemical Co., Inc

MGC Filsheet Co., Ltd.

JSP Corporation

Manufacture and sale of purified
isophthalic acidTokyo Sakurada bldg., 1-3
Nishishinbashi 1-chome, Minato-ku,Tokyo
105-0003 Japan
Phone: +81-3-3503-4811

Manufacture of PC sheet and film
2242 Mikajima 4-chome,
Tokorozawa-City, Saitama 359-1164 Japan
Phone: +81-4-2948-2151

Manufacture and sale of foamed plastics
Shinnisseki bldg., 4-2 Marunouchi 3-chome,
Chiyoda-ku, Tokyo 100-0005 Japan
Phone: +81-3-6212-6300
http://www.co-jsp.co.jp/

Eiwa Chemical Industrial Co., Ltd

Electrotechno Co., Ltd

Toyo Kagaku Co., Ltd

Manufacture and sale of blowing agents
Daido seimei co. kyoto build., 595-3
Sanjiosagaru karasuma-dori, Manjuya-cho,
Nakagyo-ku, Kyoto-City, Kyoto 604-8161 Japan
Phone: +81-75-256-5131
http://www.eiwa-chem.co.jp/

Manufacture of copper clad laminates
for printed circuit board
9-41 Aza-Sugiyama Oaza-Yone,
Nishigo-mura, Nishishirakawa-gun,
Fukushima 961-8031 Japan
Phone: +81-248-25-5000

Manufacture of injection molding
processed products
51-497 Aza-Dodo, Oaza-Morowa, Togo-cho,
Aichi-gun, Aichi 470-0151 Japan
Phone: +81-561-39-0531
http://www.co-jsp.co.jp/

ENVIRONMENT AND SAFETY IN AFFILIATES■ Environmental and Safety Activities in Affiliates

SOx reduction by fuel conversion(Eiwa Chemical Ind.Co., Ltd)

Eco-life fair exhibition in Kanuma(JSP Corporation)

Fire extinguish training(Toyo Kagaku Co., Ltd)

Fire extinguish training(JAPAN FINECHEM Co., Inc)

Cleaning around plant yard
(Japan Circuit Industrial Co., Ltd)

Disaster prevention training(Electrotechno Co., Ltd)

Safety patrol(Japan U-Pica Co., Ltd)

Safety patrol(Fudow Co., Ltd)

Japan Circuit Industrial Co., Ltd

JAPAN FINECHEM Co., Inc.

Fudow Co., Ltd

Manufacture and sale of printed circuit boads
2-1236 Kamiike-cho, Toyota-City, Aichi
471-0804 Japan
Phone: +81-565-88-3718
http://www.jci-jp.com/

Manufacture and sale of chemical products
and electronic parts
Iino bidg., 1-1 Uchisaiwai-cho 2-chome,
Chiyoda-ku, Tokyo 100-0011 Japan
Phone: +81-3-3501-5656
http://www.jfine.co.jp/

Manufacture and sale of resins
and molded components
No.7th Daigo bidg., 20-5 Nishikamada 77-chome,
Ota-ku, Tokyo 144-0051 Japan
Phone: +81-3-3737-0611
http://www.fudow.co.jp/

Japan Pionics Co., Ltd

Japan U-Pica Co., Ltd

Mizushima Aroma Co., Ltd

Manufacture and sale of Gas purifiers
and surface heater
Tokyo Sakurada bldg.,
1-3 Nishishinbashi 1-chome, Minato-ku, Tokyo
105-0003, Japan
Phone: +81-3-3506-8801

Manufacture and sale of unsaturated polyester
Iino bidg.,1-1 Uchisaiwai-cho 2-chome,
Chiyoda-ku, Tokyo 100-0011 Japan
Phone: +81-3-3503-3981
http://www.u-pica.co.jp/

Manufacture and sale ofpurified terephthalic acid
3-1 Mizushimanakadori 2-chome,
Kurashiki-City, Okayama 712-8072 Japan
Phone: +81-86-446-4570

ENVIRONMENT AND SAFETY IN AFFILIATES

31

Environmental Activities at Each Plant◆ Niigata plant

Natural Gas Chemicals Company

Address:
3500 Matsuhama-cho, Niigata-City, Niigata 950-3121 Japan
Phone: +81-25-258-3474

Comments by plant manager

Water use (km3)

Our attitude and approach on the environment never change after startup of plant operation.
Getting the local citizens' cooperation, we have been carefully making great efforts to sustain beautiful
natural environment in which we canadmire full bloom of cherry trees,
there is lot of green, we can awake
listening to birds' singing, we canenjoy the sunset into the Sea of Japan, and small animals such aspheasants, raccoons, etc. as ever canlive their lives.

CO2 emission (k tons)

505

NOx emission (tons)

368

SOx emission (tons)

1

Drainage volume (km3)
COD emission (tons)
Outward transfer of waste (tons)
Final disposal (tons)
Substances listed by PRTR law

Plant manager
Masami Orisaku

10,5397,518
40

Main products• Ammonia• Formalin• Methyl methacrylate

1,878
316

Emission (tons)

Transfer (tons)

Ethylene oxide

7.600

0

Methyl methacrylate

1.200

19.000

Vanadium pentoxide

0

6.900

Address:

Aromatic Chemicals Company◆ Mizushima plant 3-10 Mizushima Kaigandori, Kurashiki-City, Okayama 712-8525 Japan
Phone: +81-86-446-3822

Comments by plant manager

Water use (km3)

The Mizushima plant has been working on the energy rationalization, andthe reduction of release amount of
air and water pollutant, as the special
assignment since 2000, and the great
result has been obtained.
Especially, the Mizushima Ecoworks, which is the waste treatmentcompany and can treat all the wastes
with gasification melting furnace,started its operation in Apr., 2005
and the goal of zero emission iscoming just around the corner.
We do continue to reduce the environmental loads and to operate theplant safely and reliably.

CO2 emission (k tons)

606

NOx emission (tons)

367

Plant manager
Yukio Sakai

Specialty Chemicals Company◆ Kashima plant

12,644Main products

SOx emission (tons)

250

Drainage volume (km3)

11,253

COD emission (tons)

140• Aromatic aldehydes

2,918• Phthalic anhydrideOutward transfer of waste (tons)
Final disposal (tons)
Substances listed by PRTR law• Xylenes

164

Emission (tons)

Transfer (tons)

Xylene73.00638.000Hydrogen fluoride and its watersoluble salt

18.6500Ethylbenzene

4.902

0

Address:
35 Higashi Wada, Kamisu-City, Ibaraki 314-0102 Japan
Phone: +81-299-96-3121

Comments by plant manager
The Kashima plant has been working on the reduction of the environmental loads through the global standard of environmental management
system ISO14001, attested in 1999.
Aiming at 'Sustainable development'
and 'Construction of the recyclingoriented society', we will make effforts to accomplish the plant which
gives more peace of mind to local
citizens as 'zero accident, zero occupational injury and environmental
preservation' as being the base for Corporate officer
plant management.
Plant manager

Makoto Mizutani

32

ENVIRONMENTAL ACTIVITIES AT EACH PLANT

Water use (km3)

1,740

CO2 emission (k tons)

155

NOx emission (tons)

5

SOx emission (tons)

1

Drainage volume (km3)

1,620

COD emission (tons)

9

Outward transfer of waste (tons)
Final disposal (tons)
Substances listed by PRTR law
Dichloromethane

Main products• Hydrogen peroxide• Polycarbonate

581
9

Emission (tons)

Transfer (tons)

160.000

2.300

Specialty Chemicals Company◆ Yokkaichi plantComments by plant manager

Water use (km3)

The modulation of the global environment such as global warming isbeing actualized.
In the Yokkaichi plant, the coal fuelof the co-generation system that produces the steam and electricity has
been converted into the city gas.
This conversion enables us to reduce
CO2 generation in about 40%, andwe think we can contribute to reduce
the earth environmental load throughthis reduction.

6,902

CO2 emission (tons)

162

NOx emission (tons)

39

SOx emission (tons)

25

Drainage volume (km3)810

COD emission (tons)

38

Outward transfer of waste (tons)

7,924

Final disposal (tons)◆ Yamakita plant

Main products• Hydrogen peroxide• Chemicals forelectronics industries• Polyacetal

14

Substances listed by PRTR law

Plant manager
Shinichi Kaji

Specialty Chemicals Company

Address:
4-16 Hinagahigashi 2-chome,Yokkaichi-City, Mie 510-0886 Japan
Phone: +81-593-45-8800

Emission (tons)

Transfer (tons)

Hydrazine

3.460

0

Formaldehyde

1.070

8.600

Address:
950 Kishi, Yamakita-machi, Ashigarakami-gun, Kanagawa 258-0112 Japan
Phone: +81-465-75-1111

Comments by plant manager
Water use (km3)

The Yamakita plant is located justbeside the clear stream Sakawa River. While we have been using abundant water in production.
We think that it is our greatest mission to maintain his beautiful water
environment.
With the motto of "Never pollute the
Sakawa River", we are ready for preventing the emergent pollution accidents by equipping with the cautious
detection systems for drainage andthe emergency shut-off equipments.

Plant manager
Yoshihiro Ono

7,241

CO2 emission (k tons)

28

NOx emission (tons)

8

SOx emission (tons)

3

Drainage volume (km3)

6,969

COD emission (tons)

12

Outward transfer of waste (tons)

90

Final disposal (tons)

16

Main products• Ultra purehydrogen peroxide• Persulfates• Chemical polishing
agentsSubstances listed by PRTR law

Emission (tons)

Transfer (tons)

Hydrogen fluoride and its watersoluble salt

0

0.220

Location of other plants and research laboratories
Natural gas Chemicals Company◆ Niigata research laboratory

Address:
182 Tayuhama Shinwari, Niigata-City, Niigata 950-3112

Aromatic Chemicals Company◆ Hiratsuka research laboratory 6-2 Higashiyawata 5-chome, Hiratsuka-City, Kanagawa 254-0016
Specialty Chemicals Company◆ Naniwa plant◆ Saga plant◆ Tokyo research laboratory

Phone:+81-25-259-8211+81-463-21-8600

3-27 Funamachi 1-chome, Taisho-ku, Osaka -City, Osaka 551-0022 +81-6-6551-3371
681-45 Kamikumakawa, Fuji-cho, Saga-City, Saga 840-0512+81-952-64-2400

1-1 Niijuku 6-chome Katsushika-ku, Tokyo 125-0051+81-3-5699-9711(Osaka plant merged to form MGC Filsheet Co., Ltd on Oct. 1, 2005.)

Information and Advanced Materials Company◆ Tokyo techno center
1-1 Niijuku 6-chome Katsushika-ku, Tokyo 125-8601+81-3-3627-9411(Tokyo Plant was reorganized to Tokyo techno center on Oct. 1, 2005.)

ENVIRONMENTAL ACTIVITIES AT EACH PLANT

33