CSR

We lead the world with specialty acrylates

Osaka Organic Chemical Industry Ltd.

REPORT

2021

Never seen but always near.
OSAKA
ORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALOSAKAORGANICCHEMICALCSR REPORT 2021

History and Strengthsof Value Creation

OOC Group’s Management
Philosophy System andFounder’s Vision

Contents

Corporate Philosophy
The Company and its employees form a single entity that works together
and shares a single destiny. The Company’s prosperity rests on the effortsof the employees; the happiness of the employees flows from theprosperity of the Company.

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

05 Top Message

23 Corporate Governance
29 Risk Management

We will strive to be a company that can contributeto the social issues of the future by sincerely
listening to the voices of our stakeholders.

Medium- andLong-term Plans

Guidelines for
Conduct

Local
Communities

Employees

Clients

Shareholders
Investors

Third-party Opinions

E Environment
31 Environmental Initiatives
32 Initiatives to Build a Decarbonized Society
34 Initiatives to Reduce Environmental Impact

S Society35 Relationship with Employees

We will place the highest value on each person’s individuality and willcontribute to the development of society together with our clients byproviding materials with unique functions.

Management Vision

S Society

G GovernanceManagement Philosophy
Management
Philosophy

E Environment

03 History and Strengths of Value Creation

The Company’s basic policies will always reject the errors of bias andself-righteousness. They will improve individual character through the
integrity and unflagging efforts of each individual along with their mutual
trust, assistance and devotion. They will serve and benefit the community
through superior production activities.

Founder’s
Principles
Corporate
Philosophy

G Governance

Hidenori Ukai

Masayuki Ando

▶Visualizing Job Satisfaction

Chief Priest, Shokakuji
Temple, Jodo sect

CEO of OOC▶Workforce Recruiting and Training▶Creating a Workplace Where Diverse People Can Play an Active RoleManagement Vision

Special Feature: Contributing to the SDGs through Our Business▶Initiatives for Diversity

Providing value to the global market as a corporate leader in specialty
acrylic acid esters.

09 Mapping the SDGs in the Value Chain
11 Challenges for the Future—Contributing to the SDGs

▶Initiatives for Work-Life Balance

Founder’s Vision

Promoting Sustainable Management▶Occupational Health and Safety

OOC has always been an R&D-focused organization. The evolution into
our present form began in 1941, when founder Tatsuo Shizume
succeeded in domestic production of Canada balsam adhesive used
for optical lenses. His aim was to create a company that would be
admired worldwide. It was an aim he pursued through a lifelong
dedication to creating outstanding chemicals of benefit to consumers
and the world at large. Passion was everything to him. He felt that
outstanding results could arise from the pure application of effort. It
was this conviction that drove him to work on bringing value to theworld, as he pursued his vision and love of organic chemistry. We willcontinue to pursue the founder’s vision while striving to create newvalue by looking ahead to the future.

13
15
17
19

The Process of Building a Sustainable Society
Business Domains of OOC Group
ESG-conscious Management to Achieve the Long-term Business Plan
Initiatives for Materiality▶Respecting Human Rights▶Promoting Health Management

44 Relationship with the Community▶Business Sites and Topics

47 Stakeholder Engagement
48 Third-party Opinions

Childrenof the Future

Suppliers

Editorial stance and aim of this report
The OOC Group believes that putting ourManagement Philosophy into practice means
nothing less than engaging in CSR-oriented
management. Guided by this principle, we areaiming to help promote sustainability by using ourbusiness activities to solve issues of public concern.
This report has been created to present the Group’s
CSR-oriented management and provide a tool for
dialogue with stakeholders. It discloses information
about the activities that we consider most important.

01

Organizations covered by this report
This report covers activities
carried out by OOC andShinko Organic Chemical
Industry Ltd. (a domestic
consolidated OOC subsidiary)
and also provides informationon the entire OOC Group.

Periods covered by this report
The environmental protection data covers
the period from April 2020 to March 2021.
The activities data and financial data
cover OOC’s fiscal year from December
2019 to November 2020. The report
information also includes some activities
from before or after these periods.

Main reference guidelines
Environmental Reporting Guidelines 2018, Ministry of the Environment;
ISO 26000:2010 (Guidance on social responsibility); SDG Compass;
GRI Sustainability Reporting Standards
Release date: July 2021 * Date of next scheduled release: July 2022

Separating the Website from the Booklet
Business and Financial Information

Sustainability Information

CSR Report 2021
This report summarizes the OOC Group’s activities and communicates themto stakeholders in an easy-to-understand manner.
* Only some financial information is included.

WebsiteShareholder andInvestor Information

Financial Results
Annual Securities
ReportSustainability
This section introduces our sustainability activities fromenvironmental, social, and governance perspectives.
Comprehensive coverage of more detailed information.

02

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

History and Strengths of Value Creation
Osaka Organic Chemical Industry (OOC) was founded on a vision of using organic
chemistry to benefit consumers and the world at large.
Today, we continue to honor our founder’s vision as we work to create new value.

Net sales in fiscal 2020:
28.6 billion yen

1941
Osaka Yuki Kagaku Kogyosho

Establishment

1946
Osaka Organic Chemical Industry Ltd.

Establishment

Strengths

1 Ability to respond

We possess a large numberof products with high market
share in the world

Strengths

2 Technological strength

Technology with uniquecompetitive advantage

Strengths

3 Supporting infrastructure

Unique strengths of the OOC
Group that no other company
can imitate
03

Commercializing
specialty acrylic acid
estersAcrylic acids⇒
Creating polymerization
prevention technology

Raw materials forpharmaceuticalintermediates

Full-scale release in LCD
manufacturing sector

LCD photospacers

Acetic esters⇒
Creating esterification
technology

1950

1960

Canada balsam and cedar oil⇒Creating distillation/refining
technology

1970
Specialty methacrylic esters⇒Releasing technology for
esterified products

1980

1990

2000

Raw materials for products
such as photo-curable paints
and inks: Viscoat Series

LCD resist products

Wide variety/Small quantities

Automotive paints and adhesives Raw materials for UV inkjet

In order to respond to each and every detailed
request from our customers, we have a flexible
production system that can handle small amounts
of a wide variety of products, and we have a large
number of product groups that have the top sharein the world in niche business areas.

4-HBA

Top-level production technology in the industry
OOC is the industry leader in acrylic acid ester
production technology (polymerization
prevention and control technology). With boldideas and a passion for manufacturing, we areconstantly improving our technology anddeveloping new technologies and products.

The cleanest plant in JapanAll employees participate in 5S activities in small
groups, and these activities have been establishedas business improvement activities. We aim to makeour plant the cleanest in Japan, and we are working
on safety, quality improvement, and environmental
conservation as our priority issues every day.

2010

2020

Industrialization using transesterification method(such as THFA; a world-first)

LSI resist products:
Full-scale release in LSI
manufacturing sector

Acrylic acid resin for cosmetics

Highly functionalized
display materials

ArF resist monomer, a raw material
for advanced semiconductors

IBXA
No.

1

No.

globalmarket
share

1

No.

share in
Japan

1953

1968

1992

1995

Mass production of acrylic acidby creating polymerization
prevention technology

Commercializing specialty
acrylic acid esters

Business development throughpolymer design technology (LCD)

Business development using
ultra-high-purity technology(Semiconductor materials)

First inJapan

Human resource development
through OYPM activities

Establishmentof coretechnologies

Developmentof technology
applications

High quality control technology

Integrated support capability from
R&D to industrialization(Improving problem-solving skills)
Continuity is power,
and the OYPM
activities that havebeen steadily
continued for over 25
years are still evolving.

We respond with sincerity to
the need for continuation ofbusiness as usual and theincreasing individualization,
sophistication, and complexityof customer requirements.

1

globalmarketshare

The world’s
most advanced
technology●Outstanding ability to make proposals
and solve customer issues●Provision of service solutions
based on research andmanufacturing technologies●Functional representation ofcustomer/client operations

04

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Top Message

In the wake of the COVID-19 pandemic, there is agreater need for sustainable management, and wewill continue to listen sincerely to the voices of our
stakeholders and aim to be a company that cancontribute to the social issues of the future.

Hidenori Ukai

Masayuki Ando

Chief Priest, Shokakuji
Temple, Jodo sect

CEO of OOC

Inheriting the spirit of thecompany’s founding, we arecommitted to CSR management.
During the past year, in the wakeof the COVID-19 pandemic, wehave been accelerating ouractivities to enhance ouruniversal corporate value amidst
the renewed global concern forsustainable corporate
management. In order to deliver
our Top Message, we invited
Hidenori Ukai, Chief Priest of
Shokakuji Temple of the Jodo
sect of Buddhism, who has
written extensively on Buddhism
and corporate management, totalk with the CEO Masayuki Ando.
Mr. Ukai gave us his frank opinion
on the challenges we will face inproviding timeless value in the
future. (Titles omitted in the text)

05

Timeless Universal
Teachings and Similarities
with Corporate
Management Philosophy

Board of Directors in 2014, I havebeen thinking about what I should
keep in mind as a member of the
management team. During thistime, as I read books by various

Ando: Thank you very much for

managers, I found that many oftaking time out of your busy

them touched on Buddhism, and I

schedule to come from Kyoto

became interested in Buddhism.

today. I hope we can learn about

In particular, I had read thethe principles of businesswritings of Chief Priest Ukai, and I

management from Chief Priest

was eager to meet you.

Ukai, who has a deep knowledge

Also, as part of our training forof both Buddhism and business

new recruits, we used to do

management.

ascetic training at a Zen temple. I

Ukai: I look forward to working

myself experienced thiswith you. Please tell me how you

immediately after joining OOC,

first became interested inand I think this experience also

Buddhism.

led me to this relationship.

A: Since I was appointed to the

U: Oh, that’s interesting. In

addition to being a priest, I am

perspective of coexistence andalso invited by companies to giveco-prosperity is indispensable intrainings and lectures. I always feel

today’s management. When I wasthat there are many similarities

a newspaper reporter, I once went

between corporate management

around to interview companies

and the pursuit of Buddhism.

that had gone bankrupt. The

A: Buddhism was born aboutcommon denominator was selfish

2,500 years ago and has been in

profit, short-term gains, andJapan for about 1,500 years.

excessive growth. Even if a

There is a great deal of interest incompany makes a huge profit for avalues that have persisted overwhile, it is not sustainable if thesuch a long period of time.

management thinks only about

U: The oldest company in Japan,

what is good for itself.

Kongo Gumi Co., Ltd. has been

A: As you pointed out, if we run onbuilding temples and shrines forprofit first, our management will beover 1,400 years. In this sense, itin jeopardy. Of course, improving

can be said that there is a

profitability is important, but I feel

relationship between Buddhism

that balancing economic andand the sustainability ofsocial values is especiallymanagement. In my opinion, bothessential for the future.

Buddhism and business have a

U: In fact, the same is true forcommon philosophy. For example,

running a temple. If you think that

we want to make the world a bettermaking a profit is all that matters,

place. The desire to make many

you will not be able to continue forpeople happy is the same in both.

long. It is important to have an

A: I agree. The OOC Corporate

outside perspective of how

Philosophy is: “The Company andsociety, including our believers,

its employees form a single entity

views us.

that works together and shares a

A: An overly inward-looking

single destiny. The Company’s

perspective tends to lead to just aprosperity rides on the efforts of

lot of internal guesswork and loss

the employees; the happiness ofof sight of what management

proud as the Chief Priest. We also

the employees flows from theshould be.

have to be careful not to make too

prosperity of the Company.” I think

U: Especially for those who standmuch money as a temple. Our

this is a wonderful company motto,

at the top of management, it istemple is located in the tourist

and I make every effort to see thatimportant to be aware that you arearea of Arashiyama, and there are

our management embodies it.

not only a manager but also aplenty of opportunities to do

human being. While exercisingbusiness, but we dare not try ourleadership as a manager, you

hand at it.

must not lose your kindness and

A: That’s a very telling story. It’s

compassion as a human being. As

the same with management. If you

the Chief Priest of a temple, this isforce your employees to work too

An Era in Which It Is
Essential to Balance
Economic Value withSocial Value

Hidenori Ukai’s Career
After working for newspapers andmagazines, he became the 33rd
Chief Priest of Shokakuji Templeof the Jodo sect. In addition to hisdaily religious duties, he is active
as a journalist and writer. He is
also the chairman of the Yoi-Otera
Research Institute, a part-time
lecturer at Tokyo University ofAgriculture, Bukkyo University,and a member of the Public
Relations Committee of the Japan
Buddhist Federation. He has
written extensively on Buddhism
and corporate management.

something I always keep in mind.

hard, you may make a lot of

U: I like the idea of working

At present, I am the 33rd

money temporarily, at the expense

together and sharing a single

generation of the temple, and theof strain in the organization. In

destiny. Self-righteous thinking

most important thing is to pass it

management, it is important tothat only one person is goodon to the 34th generation. For thisselect and concentrate on

enough is unsustainable. The

reason, I always try not to be toobusiness, but in addition to that,06

CSR REPORT 2021

History and Strengthsof Value Creationof seiri (sorting), seiton(straightening up), seiso(sweeping away), seiketsu(sanitizing), and shitsuke (strictlytraining). This not only keeps theworkplace clean, but also leads toself-discipline for each employee.
U: That’s wonderful. Almost 80%
of temple work is cleaning. I clean
almost all day every day (laughs).
Isn’t thorough cleaning of the worksite linked to increased
productivity?
A: It may be. In the field, we clean
the same way every day. We
we have to impose on ourselves tobelieve that it is important to build

know our own greed (moderationon this.

in relation to greed). If we try to

U: That goes along with themake too much money, there willteaching of sutra copying. Sutras

be an unreasonable situation

are meant to be written correctly,

somewhere. This is something

as shown on the backing paper. It

that a chemical manufacturer

is not good to write messily. In theshould not do.

same way, we should repeat thesame thing day after day, placing
our hands on the Buddha. By

Better Quality Comes
from a Clean
Manufacturing Site
U: It is important to ensure thatsafety comes first in
manufacturing. Also, I heard thatyour company aims to be thecleanest plant in Japan, and I
imagine that you place a lot ofimportance on site cleanliness.
A: Our main product is a material
called acrylic acid ester. In
cooking, this material is like a raw
food, and its finish can vary
greatly depending on how it isheated. It is important to keep the
manufacturing site as neat andtidy as the kitchen in order toproduce products of high quality.
For more than 25 years, we haveContributing to the
Resolution of Social
Issues as a Chemical
Manufacturer
U: It used to be, when Japanesepeople did something wrong, theyused sayings like “bachi ga ataru”
or “otento-sama ga miteiru,” whichmean to listen to the voice ofheaven.
A: Ah yes, the voice of heaven. In
management, this would be thevoices of stakeholders. We needto listen more closely to the voicesof our customers, employees,
partner companies, and society.
OOC strives to improve themanagement by sincerely listening
to the voices of our stakeholders.
It is not possible to solve all
management issues at once, but
we will set priorities and tackle
them one by one.

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

U: I believe that tackling businesshuman resources. I am in charge

issues is not an easy task. Someof lectures at universities, and Iof them may need to be tackled

find that young students are pureright away. However, I believe thatand full of hope. I believe that it isnothing should be done on thethe mission of companies tospur of the moment. A medium- to

nurture these people well.

long-term, persistent approach is

A: Thank you for pointing out thisessential.

excellent point. We will be mindful

A: Yes, I need to take that toof it while training our personnel.

heart. Strengthening internal

U: Also, your company is doing

systems, ESG management, andwell, but that doesn’t mean you

SDGs are not instant answers. We

should forget to be humble andmust set goals and continue tomodest.

work on them. In the future, there

A: Yes, we will manage ourare many ways we can contributebusiness with the sense of crisis

as a chemical manufacturer tothat even when things are going

various social issues, including

well, they can be dangerous. In

environmental issues such as

particular, we will once again

carbon neutrality. We will make theensure that safety is thoroughlynecessary investments, and all of

enforced at our work sites.

us will pool our wisdom and aim toManagement and all employees

solve these issues.

must share the awareness that we

U: In order for your company towill never cause an accident. As

tackle various issues, it ismentioned regarding copying

important to develop and promotesutras, we will be doing what

doing this, you can review yourself

needs to be done, in a thoroughand control your excessive greed

and appropriate manner.

and hesitation.

U: Another important thing for a

A: The simple act of cleaning has

business owner is to take time tosuch a deep meaning. As areflect on oneself. It is easy to lose

manager, we have to be aware of

the time to think about things

the importance of self-control.

calmly when you are busy with

U: Self-control is to discipline

your daily work. Therefore, I

oneself. In other words, morality.

recommend that you visit a temple

Essentially, if this is firmly in place,and take a quiet moment to review

there would be no need for rules

yourself.

to control corporate management

A: Thank you for your advice. It isin the extreme. In today’s world,

indeed important to have time tothe lack of morality is the reason

think quietly and reflect. As

why we are required to have strict

expectations for OOC continue torules of compliance.

rise, we will continue to fulfill our

A: It is not always possible tomission as a member of society.

solve problems with a set of rules.

Thank you very much for your

Both managers and employees

valuable opinion today.

E Environment

S Society

Third-party Opinions

need to be conscious of theirmorals once again.

been working on the 5S activities

0708

CSR REPORT 2021

History and Strengthsof Value Creation

SpecialFeatureTop Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Contributing to the SDGs through Our Business

Using SDG Compass value chain mapping, we are examining how OOC’s main products contribute to

Mapping the SDGs in the Value Chain

the 17 goals of the SDGs, and are working to identify the SDGs that OOC should prioritize.

Strengthening
Positive Impact
Chemical Products
Business

Increase the lineup of products using

P.11②

P.12⑤

biomass (plant-derived) raw materials

P.12⑦

Providing products using
ester exchange technology

Specialty Chemicals
Business

P.11②

Business transformation toward electrification (from using heavy oil to using electricity)
P.11①③
Providing products using UV curing technology

Electronics Materials
Business

P.11①③

P.32 P.34* There is no description, but it is a product that uses this technology.

Providing health-conscious
products

Suppliers
Contractors

Manufacturers
R&D

Distributors

Corporate
users

End
users

P.12⑥

Local
communities

Technological innovation to curb the use of

Conducting safetyseminars to improve CS

Distributors

P.11④

P.11①
Spread of IoT, AI (artificial intelligence), etc.
Supporting our current lives and creating a prosperous
futureExpansion of health management functions, development of telemedicine, reduction of labor burden in fields suchas construction, nursing care, agriculture and fisheries, provision of IoA (Internet of Abilities) = expansion ofhuman capabilities, and contribution to energy conservation

Research & Business
Development Office

Localcommunities

Providing products that lead toenergy conservation in
downstream and final products

Reduction ofenvironmental
impact throughmanufacturing
technology/process
improvement

P.12⑦

Increasing job satisfaction and productivity

P.42

water resources (subject for further study)

through work style reforms●

DX promotion●

Diversity and inclusion●

Promotion of health management
P.35-41

Use of renewable energy
through the introduction of solar
power generation systems

Ask suppliers to agree to the CSR-oriented procurement
guidelines from the perspective of sustainability

Contribute to the conservation of biodiversity by reducing
emissions of chemical substances subject to the PRTR systemand thoroughly managing chemical substances. Technologicalinnovation and product reformulation and decommissioning to
P.34
reduce external waste emissions through reuse

P.22

P.32

Reducing the risk of supply chain disruptions by establishing a risk management systemthat takes into account business impact

P.29-30 (Business impact analysis to be conducted in fiscal 2021)

Minimizing
Negative Impact

09

10

CSR REPORT 2021

Strengths

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

Challenges for the Future —Contributing to the SDGs

05

S Society

Third-party Opinions

by leveraging its strengths and demonstrating its value
It is made from naturally
occurring plants suchas pine trees, corncobs,
and oil palm seeds.

throughout the entire supply chain.

Raw materials forsemiconductors

01

In the manufacturing
process of semiconductor
raw materials, moreenergy is consumed in theform of electricity than in
the form of heavy oil, andconsidering the growthpotential of the semiconductor
market, its share of our businesscomposition is expected to increase in the
future, and electrification is expected to advance. As
electrification progresses, the effects of CO2 reduction
measures will become easier to see. In addition,
miniaturization will make it possible to process a large
amount of data with small IC chips, which will
significantly reduce the energy consumption of final
products as well as downstream products.

Raw materials for UV inkjet

UV inkjet printing is one of the most popular printing
methods in recent years. UV (ultraviolet) drying
eliminates the evaporation of VOCs (organic solvents),
which cause photochemical smog, and since drying isdone without heat, energy consumption can be greatly
reduced. In addition, no plate making is required forprinting, and the ink can be used without waste,making it an extremely environmentallyfriendly raw material.

D

AO

AK

OS

M

HE

CC

I
AN
RG

L
ICA

IN

RY

T
US

.

D
LT

Biomass (plant-derived) acrylate
Biomass (plant-derived) raw materials are attracting
attention as a means to build a decarbonized society. We
have experience mass-producing and developing suchproducts (5 products each). We will continue to contributeto building a decarbonized society by advancing researchand development of products with a high biomass-derived
carbon ratio and increasing our product lineup.

through its business and to achieve sustainable growth11

E Environment

Contributing to the SDGs through Our Business

OOC Group aims to help build a sustainable society

02

G Governance

As an example, raw
pine resin is distilled to
extract the essential oil.

The pine resin iscollected and madeinto raw pine resin.

03

The pressed dregs ofcorncobs undergohydrolysis and otherprocesses to become
organic compounds
that are not derived
from petroleum.

Indicationmaterials

07

UV (ultraviolet) curing resins are used in manyindustries due to their characteristics. Today’s
growing demand for environmentally friendly
coatings is creating interest in UV coatings thatenable solvent-free application and so areviewed as a low-pollution option that saves
resources and energy. OOC and OOC clientsuse UV curing technology in manufacturing
processes for a wide range of products in
sectors such as electronics materials (liquid
crystals and semiconductors).
06
04

We use raw materials
that contain a large
amount of this essential
oil and commercialize
them using our
proprietary technologies(esterification andpolymerization
prevention technologies).

Cosmetics
materials

In recent years, preservative ingredients widelyused in cosmetics have been thought to cause
allergies, and there is a worldwide movement to
reduce their use in cosmetics. As an alternative,
we offer functional materials that havemoisturizing and antibacterial effects with lessodor, and are paraben-free.

Stretchable elastomer/
Stretchable conductive materials

Raw materials forautomotive paints
In general, painting automobiles involves
drying and curing applied paint with heatapplied by air conditioning large painting
booths that can accommodate the entire
body, which consumes large amounts ofenergy. When using urethane coating with
our raw materials, it is possible to lower
the temperature at which the paint is cured
thanks to highly reactive materials, whichhelps reduce energy consumption andthus reduces CO2.

In the fields of sports and medical care, the developmentof technologies for constant sensing of biologicalinformation is progressing in response to the growing
social need for health management in daily life. We aredeveloping stretchable elastomers and conductive
materials that will be useful for health management in
the future. We hope to contribute to the practicalapplication of biometric sensors, pressure sensitive
sensors, and stretchable devices.

12

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Promoting Sustainable Management

The Process of Building a Sustainable Society
We will incorporate social issues into our management and utilize our
responsiveness to build both a company and society that are sustainable.

At the time of the review of the NS10 Second Five-year Medium-term Business Plan, the OOC Group

Building a
Sustainable Society

established a philosophy system with an awareness of sustainability, and is working to link materiality and SDGs
with our medium-term departmental goals.

Social issues
envisioned by OOC

Next Stage 10 (NS10) Long-term Business Plan

NS10 Second Five-year Medium-term Business Plan(from the fiscal year ended November 30, 2015 to the fiscal year ending November 30, 2024)(from the fiscal year ended November 30, 2020 to the fiscal year ending November 30, 2024)

Working to solve social issues

Climate change

Business expansion and high profits relate our Action Policy to Materiality and SDGs

Business Domains of OOC
Chemical Products BusinessElectronics Materials BusinessSpecialty Chemicals BusinessResearch & Business Development OfficeSustainable Value
Creation Company

Population decline in JapanCSR Domain
Stable supply of energy

Materiality (priority initiatives)

Achieve
Next Stage 10 (NS10)
Long-term Business Plan

Perspectives on the SDGs

Identifying issues based on international standards such as GRI Standards and ISO 26000 in order
to conduct business while understanding and managing the impact of the OOC Group’s activities on
the environment and society from a long-term perspective.

Technological innovation

Efficient use of resources

13

E Environment

S Society

G Governance● Dealing with climate change through decarbonization● Allocating water resources● Managing waste and wastewater● Ensuring environmental compliance● Increasing sales of eco-friendly products● Contributing to safe and comfortable lives ● CSR procurement● Securing and developing human resources ● Managing raw materials● Respecting human rights● Giving back to the local area around each office● Creating a safe and comfortable workplace ● Stakeholder engagement● Diversity of human resources● Sustainability management● Improving corporate governance● Pursuing corporate ethics and integrity● Business risk management

Management Philosophy of OOC

Providing Value to the Global Market
as a Leading Company
in Specialty Acrylic Acid Esters

We will place the highest value on each person’s individuality and will contribute to the development ofsociety together with our clients by providing materials with unique functions.

14CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Promoting Sustainable Management

Business Domains of OOC GroupOOC Group in Figures

Based on acrylic acid esters, we provide materials that can be used as

Number of employees
consolidated435

raw materials for a variety of resins that support our daily lives.

(Non-consolidated: 391)

Business and Main Products

Specialty
Chemicals Business6.2 billion yen

Our group is a B to B manufacturer specializing

ChemicalSpecialty
Products Business Chemicals Business9.8 billion yen
1 billion yen

Sales

Operating Income

28.6

in high-mix low-volume production of specialty
acrylic acid esters. We have a diverse range ofChemical
Products Business
0.6 billion yen

4.4

billion yen

billion yen

Operating income
to net sales

15.5

%

20

Capital investment

billion yen

2020–2024

1.20

R&D expenses

91.2

billion yen

Market capitalization

9.9
ROE

%

billion yen

Using figures as of May 31, 2021
Share price × number of shares issued

products, and several product groups with the
top share in the world.

Chemical Products BusinessElectronics
Materials Business12.5 billion yen

Strategy

External
Environment

Raw Materials for Paints

Company
StatusElectronics
Materials Business
2.8 billion yen

We will build an absolute position in the global market for specialty
acrylic acid esters by concentrating our resources on high-purity products
differentiated by our superior distillation/refining technologies, and bycontinuously launching new products by leveraging our organic synthesis
technologies.
(Opportunity) Increasing demand for plant-derived raw materials to builda decarbonized society(Risk)
Stricter regulations on chemical substance management
due to climate change and biodiversity risks(Strengths)(Issues)
Products
Raw Materials
for Paints

Raw Materials for Adhesives

Electronics Materials Business

These materials are used in automobiles, smartphones, and otherapplications, and can provide functions such as high reactivity and highadhesiveness that cannot be achieved with general-purpose products.
Due to their high purity, they have advantages such as low coloring andlow viscosity.

(Strengths)(Issues)
Products
Cosmetics
Materials

Knowledge to propose functions from molecular
structures, manufacturing technology to perform integrated
manufacturing from raw materials
Development of new markets by expanding applications ofexisting products, development of new product groups

In addition to mousses, gels, and waxes, the acquisition of the businesshas allowed us to develop and supply shampoos, rinses, hair colorants,
and other applications as cosmetics materials for hair care.

(Opportunity) Increasing opportunities to create new businesses throughefforts to achieve the SDGs, and accelerating growth ofbusinesses related to remote and non-contact technologies
in a post-COVID society(Risk)
Difficulty in securing superiority of proprietary technologies
due to integration of management resources as DX
accelerates

Rapid capital investment, organic synthesis technology,
integrated manufacturing from raw materials, high quality
control technology
Diversification of customer needs, response to overseas
markets

Company
Status(Strengths)

We develop photo-curable resists and polymers for resists for displays,
such as patterning materials and optical materials that can meet theneeds for greater functionality in displays.

Products
Newly
Developed
Products

We will continue to aggressively invest in facilities to meet increasingly
stringent quality requirements while maintaining sufficient supply capacity
for the expanding market. In addition, we will develop next-generationmaterials and expand into peripheral materials by utilizing the highquality control capabilities and synthesis technologies cultivated in our
existing businesses.
(Opportunity) Expansion of the electronics materials market, including
peripheral fields(Risk)
Supply chain disruptions, rise of alternative products andtechnologies(Strengths)(Issues)Materials for
Semiconductors

Company
StatusExternal
Environment

Strategy

Materials for Semiconductors(Opportunity) Increasing demand for plant-derived raw materials to builda decarbonized society(Risk)
Rise of alternative products and technologies, and loss ofsales due to price competition

Through the clarification of target markets and the more deeply
integrated joint development, we will create new value based on specialty
acrylics and establish the pillars of our next generation businesses.

As part of our activities pursuing the Sustainable Development Goals(SDGs), we are developing special acrylates made from biomass-derived(plant-derived) raw materials, which we call biomass acrylates.

Products
Indication
Materials

External
Environment

Strategy

Biomass
Acrylate

Company
Status

We will provide the global market with materials with special functions,
made possible by having the technology to synthesize specialty acrylicacid esters and polymerize them.

As functional materials with special characteristics, we develop andprovide inkjet materials, coating materials, and superhydrophilic coating
materials.

These materials can be used as ordinary solvents as well as for
UV-curable and anaerobic adhesives. Other advantages include low
coloration, low viscosity, and low odor, as well as the same advantages
offered by our paint materials.

Indication Materials

Cosmetics Materials

Strategy

Functional
Materials

Raw Materials
for Adhesives

External
Environment

15

Organic synthesis technology, polymerization prevention
technology, distillation/refining technology, extensive
product lineup and knowledge
Revision and abolition of unprofitable products

Specialty Chemicals BusinessWe are developing new, high-quality acrylic monomers, including
adamantyl monomers and lactone monomers, which are raw materials
for resists used in the manufacture of semiconductor materials.

Functional Materials

Research & Business Development Office

Functional Acrylic Elastomer Materials(Issues)Organic Piezoelectric Materials

Accumulation of know-how related to acrylic materials,
advanced technology and extensive knowledge ofmaterials with unique characteristics
The company is entering a new business field and the
distance to end users is long, so it will take time to create a
new business. Establishment of product supply system

Using our proprietary acrylic acid esterification, special polymerization,and compounding technologies, we have developed stretchable acrylic
elastomer materials with high extensibility and flexibility, and stretchable
conductive materials that add conductivity to acrylic elastomers. We havealso developed flexible organic piezoelectric materials, which we expect
to see effectively used in various fields such as wearables, sensors,
actuators, materials for robotics, and automotive resin additives.

16

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Promoting Sustainable Management

ESG-conscious Management to Achieve the Long-term Business Plan
The OOC Group has established five KPIs for E (environment), S (society), G (governance), productivity, and safety as
long-term business goals, and will steadily implement the long-term business plan and contribute to the achievement of
the SDGs by starting with materiality, which is a key CSR issue, and implementing medium-term policies, Guidelines for
Conduct, and major initiatives.

Materiality■ Dealing with climate change

E Environment

through decarbonization■ Allocating water resources■ Managing waste andwastewater■ Ensuring environmental
compliance■ Increasing sales of
eco-friendly products

Medium-term Policy■ Use of renewable energyrgy■ Managing and reducing

chemicals and waste
throughout product lifecycles■ Proactive use of resource
recycling

Guidelines for Conduct■ Making the climate crisis

personal■ Reducing environmental impact■ Product development thatconsiders the balance between
nature and society

Major Initiatives

Long-term Business Target
2024■ Studying how to reduce CO2 emissions

throughout entire value chains■ Looking into the use of renewable energy■ Reducing water consumption■ Complying with environmental laws andregulations of countries and regions
around the world■ Environmental compliance■ Switching to more environmentally friendly
modes of business■ Proactive use of resource recycling

Contributing to
the Sustainable
Development
Goals (SDGs)■ CO2 emission(compared to fiscal 2013)

15% or greater reduction
Fiscal 2030

More than

30% reduction

Achieve carbon neutrality
in fiscal 2050
■ Improving consumer security

S Society
G Governance17

and comfort■ Workforce hiring and training■ Respecting human rights■ Creating safe and pleasant
workplaces■ Creating a diverse workforce■ CSR-oriented procurement■ Managing raw materials■ Giving back to the local areaaround each office■ Stakeholder engagement■ Sustainability management■ Improving corporate

governance■ Pursuing corporate ethics andintegrity■ Business risk management■ Improving client satisfaction■ Improving employee satisfaction(Creating engaging workplaces)■ Proactive approach to diversity(values and variety)■ Coexistence with the planet andthe public■ Building a global partnership forsustainable development■ Optimizing safe operations andmanagement efficiency■ Ensuring product safety andquality■ Providing unique functional
materials■ Respecting dignity and rights■ Creating a safe and healthy
environment■ Maintaining fair and impartial
business relationships that makethe most of and complement
each other’s strengths■ Proactively participating insociety■ Win-win relationships■ Constructive dialogue■ Contributing to the creation of asustainable future■ Ensuring transparency■ Proactive, effective, and fair disclosure■ Keeping our promises with sincerity
and humility■ Ensuring systematic crisis management■ Placing safety as our top priority■ Raising awareness of how to benefit thecommunity through business activities■ Increasing OOC’s recognition level■ Improving workforce training■ Combating harassment■ Promoting health management■ Job satisfaction index

Vibrant organization
grade B (top 10% to 30%)

■ Promoting sound work-life balance■ Initiatives for diversity■ Dealing with diversifying information andvalues■ Creating a CSR-oriented procurement system■ Ensuring stable procurement of raw
materials for key products■ Ongoing interactions with local areas■ Promoting dialogue based on sustainability■ Solving issues of public concern bycreating value■ Improving management transparency
and making management systems
more efficient■ Spread of our Management Philosophy■ Creating a risk management system■ CGC compliance rate100%

(with a higher level of governance)■ Accidents resulting in

absence from work

0 cases/year

18

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Promoting Sustainable Management

Initiatives for Materiality
Material issue (materiality)

ESG
area

Dealing with climate change
through decarbonization

Stakeholders
Employees

Clients/
Investors/
Suppliers Shareholders

Society

MainChildren of stakeholders
the future

Fiscal 2020
Major initiatives

Fiscal 2024 targets (KPI)
Achievements

Main activities

Seepage(s)Studying how to reduce CO2 emissions
throughout entire value chains
Looking into the use of renewable energy

CO2 emission reduction rate: 15% or more(compared to fiscal 2013)

11.3%

Implementation of investments that lead toenergy conservation
Consideration of installing solar power
generation systems

P32

Proactive use of resource recycling

Recycling rate: 25% or more(compared to fiscal 2015)

21.5%

Promoting conversion of waste oil fromexternal processing to in-house fuel

P34

〇

〇

〇

◎

Children of
the future

Wastewater and waste
management

〇

〇

◎

〇

Society

Allocating water resources

〇

〇

〇

◎

Children of
the future

Reducing water consumption

Maintain current level of water consumption(under consideration)

Study and implementation of process
improvements and changes inmanufacturing methods

P31

〇

〇

〇

◎

Children of
the future

Switching to more environmentallyfriendly modes of businessNet sales of environmentally friendly
products (under consideration)

Understanding sales of eco-products andexamining content for disclosure

P9-12

◎

〇

〇

Ensure compliance with laws andregulations related to chemical substances

Expanding suppliers’ management ofchemical substances contained in products

Increasing sales of
eco-friendly products〇E

Ensuring environmental
compliance

Clients/
Suppliers〇◎

Society◎〇

Employees

Complying with environmental laws
and regulations of countries andregions around the world

Increasing the level of recognitionof OOC

Workforce recruiting andtraining

◎

〇

◎
◎

Respecting human rights

〇

〇

〇

◎

Employees

PRTR emissions reduction rate:
60% or more (compared to fiscal 2019)

3.2%

Consideration of installing VOC
combustion equipment

Entry population formation 10% increase(compared to fiscal 2018)

43.2%

Renewal of recruitment informationon our website

100% retention rate
after 3 years of employment

100%

Conducting interviews
within 3 years of employment

Improving workforce training

Education hours:
At least 1% of annual working hours

0.67%

Introduction of a multi-line qualification
grading system

Employees

Combating harassment
Dealing with diversifying informationand values

Compliance education participation
rate 100% (conducted annually)

100%

Implementation of compliance training
For all employees: once
For all managers: once

Grade C
(top 30%
to 45%)Engagement survey implementation

Engagement survey results:
Vibrant organization grade B(top 10% to 30%)

S

Creating safe and pleasant
workplaces

P34

Employees

Employees◎

Employees

Productivity index (under consideration)◎

Employees(Ease of working)More than 70% of employees receive
paid holidays

58.3%

Employees(Ease of working)Flexible working rate (to be considered)

55.6%

Promoting health management
Promoting sound work-life balance◎

Applicable SDGs◎〇

Employees(Health) Obtained certification as an
excellent health management corporation◎〇

Employees(Safety) Zero lost time injuries/year

P36

P39

P35
Productivity index study

Setting goals and consideration of measures
P37

0

Promoting telecommuting and flexible
work hours for the post-COVID world
Introduction of a collaborative system withhealth insurance associations

P41

Thorough reporting of near-misses
at monthly health and safety meetings

P42◎ Key stakeholders〇 Stakeholders involved
19

20

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Initiatives for Materiality
Material issue (materiality)

ESG
area

Creating a diverse workforce

Stakeholders
Employees

Clients/
Investors/
Suppliers Shareholders

Society

MainChildren of stakeholders
the future

◎

〇

〇

Employees◎〇〇

Employees◎〇〇

Employees〇

Clients/
Suppliers◎

CSR-oriented procurement

Fiscal 2020
Major initiatives

Initiatives for diversity

Establishing CSR-oriented
procurement

S◎

Managing raw materials

Ratio of women in management positions:
10% or more (target in fiscal 2026)

3.1%

Setting goals and formulating action plans
based on the Law for the Promotion of
Women’s Activities

Increase in the percentage of employees
taking childcare leave and leave forchildcare purposes by 20% or more (male)

4%

Setting targets for childcare leaveand leave for childcare purposes
and increasing awareness of it

Endorsement rate of 80% or more for our
CSR-oriented procurement guidelines(based on purchase amount)Agreement to create CSR-oriented
procurement guidelines based onpurchasing policy
Selection of key raw materials andsample evaluation for multiple purchasing

Number of activities with local
communities to solve social issues:
3 or more cases/month
Demonstrating existence value
by addressing sustainability in society(qualitative goal)

Stakeholder engagement

〇

〇

◎

〇

〇

Investors/
Shareholders

Promoting dialogue aroundsustainability

Improving consumer
security and comfort

〇

〇

〇

◎

〇

Society

Raising awareness of
how to benefit the community
through business activities

〇

〇

〇

〇

〇

〇

◎

〇

◎

Children of
the future

Solving issues of public concern
by creating value

New net sales ratio 10%(from fiscal 2021)

Number of serious violations of laws andregulations 0 cases/year

Investors/
Shareholders

Investors/
Shareholders◎◎

Strengthening mid-career recruitment andgathering information on headhunting, etc.

Ongoing interactions with local areas◎

Pursuing corporate ethics
and integrity

16%

Indicators of supply risk reduction(under consideration)〇

Business risk
management

Increase ratio of mid-career hires
20% or more

Ensuring stable procurement of
raw materials for key products〇

G

Main activities

Clients/
Suppliers

Society

Improving Corporate
GovernanceAchievements〇

Giving back to the local areaaround each officeSustainability
management

Fiscal 2024 targets (KPI)

Improving management transparency
and making management systems
more efficient

2.3

Promoting dialogue with each stakeholder
with an awareness of sustainability

P47

1.4%

0

Thorough awareness of legal compliance

Establishment of priority risks anddisclosure of proposed countermeasures(Annual Securities Report)〇

Clients/
Suppliers

Creating a risk management system

Indicators for reducing the risk of supply
chain disconnection (under consideration)

〇

〇

〇

Employees

Spread of our Management
Philosophy

Penetration of Management Philosophy:
4.0 or higher

P11-12

Fostering businesses and product groups
to solve social issues

100% CGC compliance rate(with higher governance standards)〇

P9

P44-46Developing applications in peripheral fields
as well as developing new materials forexisting businesses

Applicable SDGs

P37

Promoting interaction with the local
community while taking care to preventthe spread of COVID-19

Improving Board of Directors effectivenessassessments
Disclosing more information in English
Reviewing the officer compensation system
Reducing cross-shareholding◎Seepage(s)3.4

Linking engagement survey items toManagement Philosophy andquantifying themP23-28

P29-30

P47◎ Key stakeholders〇 Stakeholders involved

21

22

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Corporate Governance
We are striving to improve the transparency and efficiency of our management inMaterial Issues: Improving Corporate Governanceorder to sustainably increase our corporate value over the medium to long term.
Fiscal 2020

Improving management transparency and making management systems more efficient[Targets and issues]●Promoting active disclosure (disclosing more information in English)

Basic Approach●Reviewing the officer compensation system●Improving Board of Directors effectiveness assessments●Reducing cross-shareholding

Corporate governance is an area that the OOC Group works actively to improve andaugment. Our efforts in this area are designed to ensure that we act honestly andincrease management transparency while improving the efficiency and speed of

Fiscal 2021

Improving management transparency and making management systems more efficient[Targets and issues]●Addressing each issue to improve the effectiveness of the Board of Directors●Responding to the revised CG code

management systems. We view these efforts as a way to ensure sustainable●Enhance disclosure of ESG information and proactive dialogue

company growth while improving our corporate value over the medium- to long-term.
Corporate governance improvements are approached as a key management issue,

OOC Group’s Corporate Governance Organization

as we work to foster shared going-concern (business continuity) assumptions withstakeholders both inside and outside the Company.

Stakeholders at annual general meeting

Governance Highlights (as of November 30, 2020)
Number of meetings ofthe Board of Directors

16

Number of meetings ofthe Board of Auditors

15

Number of meetings of
the Advisory Committee

2

Nominationfor election

Compensation

Number of interviews
regarding CSR/ESG

3

2

Board of Auditors

Corporate GovernanceImprovement Milestones■ Director (Internal)■ Director (Outside)

内

2

外

Board of Directors

9

2

2

1

1

2

2

7

7

■ Corporate Auditor (Internal)

2
1
2

6

内

外

外

外
内

1
1

Nominations
Advisory Committee

内

内

内

外

外

内

外

外

Remuneration
Advisory Committee
内

2
1
2

5

2

外

外

2

1

1

2

2

4

4

2019

2020

Accounting Auditors
Internal Control Committee

CEO

Risk/Compliance Committee

Management Council■ Corporate Auditor (Outside)
2014

Optimization of director composition

Started executive officer system

2016

2017

2018

February 2016

July 2019

Increase in the number ofoutside directors by one

Ratio of outside
directors to be 1/3

Dec. 2018

July 2019

Created Remuneration Advisory Committee

Dec. 2018

Chairperson to
be changed
from CEO tooutside director

Created Risk/Compliance Committee

Internal Audit OfficeFeb. 2018

Created Nominations Advisory Committee

Ended retirement benefit program

23

2015

Feb. 2018

内Director(Internal)

外Director(Outside)

内

Corporate Auditor(Internal)

外Corporate Auditor(Outside)

Executive officers, departments, and affiliates

Dec. 201924

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Create and Implement a Succession Plan

Officer Profiles (as of November 30, 2020)

From the perspective of sustainable growth of our business over the

Nominations Advisory Committee will make a judgment on themedium to long term, we recognize that the development ofappropriateness of the proposed candidates selected by the incumbent

management personnel is one of the most important issues to befrom an independent and objective standpoint.

addressed. Therefore, in accordance with Roles and Responsibilities of
the Board of Directors (Supplementary Principle 4-1 (3)) of the

The following is the Succession Planning Policy and Development Plan

Corporate Governance Code, the Board of Directors is proactively

Policy formulated on January 22, 2021.

responsible for the formulation and operation of the succession plan.
(1) Succession Planning Policy

Specifically, we believe that the incumbent himself/herself should be

Yoko Hiyama

Naotaka Kawakami

Motomi Ogasawara

Masayuki Ando

Taiji Kanbayashi

Soichi Honda

Outside auditor

Outside director

Director

CEO

Director, Chairman of
the Board

Director

Takayuki Hamanaka Sobi Nagayanagi
Outside director

Yasuko Yoshida

Managing Auditor

actively involved in the selection of a candidate to succeed the CEO,The formulation and implementation of the CEO’s succession plan isand that the incumbent should be responsible for the succession plan.

the CEO’s authority and duty.

The Nominations Advisory Committee may take a leading role in cases

The Nominations Advisory Committee shall formulate the criteria forwhere the incumbent has difficulties in selecting a successor candidate.

selecting candidates for CEO, the selection process, and theOn the other hand, when the option of reappointing the incumbent isdevelopment plan, and also monitor the overall confirmation

included, in order to ensure the fairness of deliberations, the necessity

succession plan and report to the Board of Directors on theOutside auditor

Committee. In addition, the Nominations Advisory Committee shallIn order to develop the next generation of human resources who will

receive a full report from the CEO on the succession plan and thebe responsible for the execution of management to support

specific nomination of candidates to succeed him/her, exchange

continuous growth, the CEO will constantly envision candidates for

opinions, consider the evaluation of the CEO from an independent

successors, mainly directors and executive officers, and strive todevelop them.

OOC continues to strengthen its corporate governance system,

examine the possibility of having independent outside directors as astandpoint and the OOC’s management issues, and provide feedback.

including the appointment of independent outside directors and the

majority of the Board of Directors.

With respect to the specific evaluation of candidates for successors, theestablishment of an Advisory Committee, in accordance with Use of

In addition, two Advisory Committees, the Nominations Advisory

Voluntary Mechanisms (Supplementary Principle 4-10 (1)) of theCommittee and the Remuneration Advisory Committee, established

Corporate Governance Code.

under the Board of Directors, are responsible for considering important

At present, we have appointed two independent outside directors. Bothmatters such as the nomination and compensation of our directors.

of them express their opinions at the Board of Directors meetings andBoth of these committees are composed of two independent outside

provide advice to each director as necessary, utilizing their highly

directors and the CEO, and are chaired by an independent outside

specialized knowledge and abundant experience. We will continue to

director who also provides appropriate involvement and advice.

● Chairperson, Committee Chairperson● Members● Jury(2) Development Plan Policy

members who are outside directors at the Nominations Advisory

Role and Authority of Independent Outside Directors and Advisory Committee

Skill Matrix for Officers

candidates.

of reappointment shall be considered only by the chairperson and the● Expertise and experience
Collegiate body

Job Title

25

Name

Board of Directors

Board of Auditors

Expertise

Management Council

Internal Control
Committee

Risk/
Compliance
Committee

Nominations
Advisory Committee

Remuneration
Advisory Committee

Management

ESG

Sales

R&D

Overseas

●

●

●

●

●

●

●

●

●

●

●

●

●

Director, Chairman of the Board

Taiji Kanbayashi

●

●

●

●

CEO

Masayuki Ando

●

●

●

●

Director

Soichi Honda

●

●

●

●

Director

Motomi Ogasawara

●

●

●

Outside director

Takayuki Hamanaka

●

●

●

●

●

●

●

Outside director

Naotaka Kawakami

●

●

●

●

●

●

●

Managing Auditor

Sobi Nagayanagi

●

●

●

●

Outside auditor

Yoko Hiyama

●

●

●

●

●

●

Outside auditor

Yasuko Yoshida

●

●

●

●

●

●

●

●

●

●

Finance

Legal

Administration

●

●

●
●

●
●
●

●
●

26

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Efforts to Improve Management Transparency
Enhancement of Information Provision to Overseas Investors

Reducing Cross-shareholding

We are promoting the provision of information in English for overseas
investors. Currently, we provide information in English by disclosing the
Notice of Convocation of the General Meeting of Shareholders,
Financial Results, Financial Results Briefing Materials, and CSR
Report on our website, etc. In addition, we disclose and provide
information in English on the Tokyo Stock Exchange, Inc. website
under Summary of Financial Results in the Listed Company Details(Basic Information) section of the TSE Listed Company Information
Service, and are working to expand the provision of information in
English to overseas investors.

(1) Policy for Reducing Cross-shareholding
For cross-shareholding, the Board of Directors will annually review
each individual case and make decisions to reduce the number ofshares held by OOC.

Status of providing various types of information in English
Financial
Results

Notice of Financial Results
Convocation Briefing Materials

CSR Report

Fiscal 2019

×

×

×

×

Fiscal 2020

○

○

○

○

Officer Compensation System
OOC has determined the remuneration system and remuneration levels
for directors and auditors in order to achieve medium- to long-term
expansion of business performance and enhancement of corporate
value in accordance with its Management Philosophy. Remuneration for
directors consists of monthly remuneration as basic remuneration,
annual bonuses as performance-linked remuneration, and remunerationin the form of restricted stock. From the perspective of their roles andindependence, outside directors and auditors are paid only the basic
monthly remuneration. We plan to introduce medium-term
performance-linked compensation from the fiscal year ending
November 30, 2021.

(2) Criteria for Stock Ownership
We will hold shares only when we believe it is reasonable to do so, forexample, to maintain and strengthen stable and long-term business
relationships with customers and business partners, or to enhance ourcorporate value over the medium to long term. We periodically reporton our holdings to the Board of Directors, and considers theappropriateness of holding each stock by comprehensively taking into
account the maintenance and strengthening of business relationships,
the merits of holding the stock over the medium to long term, andwhether the benefits and risks associated with holding the stock arecommensurate with the cost of capital.
(3) Exercise of Voting Rights Related to Cross-shareholding
With regard to the exercise of voting rights for cross-shareholding, inorder to ensure appropriate responses, we have established specificcriteria for the exercise of voting rights that enable us to make acomprehensive judgment as to whether the exercise of voting rights will
enhance the medium- to long-term corporate value of the clientcompany, contribute to sustainable growth, and benefit OOC.

Number ofstocks acquired2

Number ofshares acquired

1,310

Acquisition
cost

0.006
billion yen

Number ofstocks sold2

Number ofshares sold

53,000

Sale price

0.126
billion yen

We will continue to make efforts to reduce the amount held.

Improving the Effectiveness of the Board of Directors
the questionnaire were compiled, analyzed, and evaluated by
the Board of Directors.
As a result, the effectiveness of our Board of Directors wasevaluated as generally good, confirming that the effectivenessof the Board of Directors has been ensured.

Reasons for Confirming that the Effectiveness of the Board of Directors Is Generally Good
●With regard to the composition of the Board of Directors, which has
independence and objectivity, two of the six directors are
independent outside directors, making the ratio of outside directors
1/3, and the Nominations Advisory Committee and the Remuneration
Advisory Committee, which are advisory bodies to the Board of
Directors, have been established, and an independent outside
director has been appointed as the chairperson of each to ensure thesupervisory function of the Board of Directors by providing
appropriate reports.
●In August 2020, we developed our philosophy system, and areworking to disseminate our philosophy throughout the OOC Group,and to strengthen the disclosure of ESG-related information to ourstakeholders through the publication of our CSR Report.
●In December 2019, the Risk/Compliance Committee was newly
established under the Internal Control Committee, which is asubordinate organization of the Board of Directors, to strengthen therisk management system and develop a monitoring system for
management risks and other risks by the Board of Directors. In
addition, we have taken appropriate measures to deal with the
COVID-19 pandemic, and are working to address risks to business
continuity.

27

In the formulation of the medium- to long-term management
plan, we have provided sufficient explanation of the plan tooutside directors. We recognize the importance of holding evendeeper discussions on the formulation of medium- to long-termbusiness plans with outside directors, and will continue tomake this an ongoing issue.

Measures for Risk Management
Since December 2019, the Risk/Compliance Committee, asub-organization of the Internal Control Committee, has been
established to operate our risk management system. The
Board of Directors has been monitoring the status of our risk
management through reports from the Internal Control
Committee. We will continue to deeply discuss risks to ourbusiness and other areas at the Board of Directors meetings
based on the content of the monitoring.

Matters Related to the Board of Directors and the Management Council

Fiscal 2020 Results

Efforts to Improve Management Efficiency

With regard to the overall effectiveness of our Board of
Directors, we conducted a questionnaire on the operation,
deliberation, composition, implementation status of issues,
support system, and overall evaluation of the Board of
Directors meetings for directors and auditors. The results of

Deeper Involvement of Outside Directors in the
Formulation of Medium- to Long-term Business Plans●At the end of February 2020, the Board of Directors resolved toabolish the anti-takeover measures after thorough discussions, andis striving to further enhance corporate value by taking measures toachieve the medium- to long-term business plan.
●We hold semi-annual company briefings and quarterly IR withinstitutional investors to strengthen communication with investors,
and deliberate with stakeholders in mind through quarterly reports
and deliberations to the Board of Directors, and discussions andimplementation of improvements to employee working environments
and strengthening community and social contributions.
●We discussed the succession plan and the performance-linked
remuneration system, which were governance issues, and started todevelop and operate the system.
●During its operations, the Board of Directors is working to improve
the provision of information to members and discussing anddeliberating at Board of Directors meetings. In this era of COVID-19
risks, important meeting bodies attended by directors and auditors,
such as our Board of Directors, are held remotely, etc., and ourmanagement is handling these meetings without any problems.
●In addition to individual training for officers, we have held grouptraining on common themes for officers to further strengthen our
support system.

All directors and auditors attend not only the Board of Directors
meetings but also the Management Council and the Internal
Control Committee meetings, which are held in advance of theBoard of Directors meetings to discuss and deliberate oninternal control items related to business execution andcorporate management. In order to further improve
discussions and deliberations at the Board of Directors
meetings, the division of roles and improvement of functions
between the Board of Directors and the Management Council
are ongoing issues.

Further Enhancement of Handouts and Content
We have made improvements to the materials distributed andthe content of the topics discussed at the Board of Directors
meetings. In the future, we will continue to make efforts toimprove the understanding of matters to be discussed among
outside directors and auditors and to hold deeper discussions.

Discussion of Corporate Governance Measures
We have discussed and reviewed the introduction of
medium-term performance-linked remuneration andsuccession planning, and have established and implementeda system. We will continue to monitor the implementation ofthese measures.
On the other hand, as there has not been sufficient discussion
on the gender of directors, we will continue to address thisissue.
In order to resolve the aforementioned issues, we recognizethat communication among officers (directors and auditors)
will remain important, and we will continue to improve andstrengthen the effectiveness of the Board of Directors.

An Outside Officer’s Perspective

I will contribute to the Board of Directors meetingsand other deliberations utilizing my knowledge asa person from a government ministry.
I recognize that my role is to reflect
the perspectives of all stakeholders
in management in a balancedmanner, and on the other hand, tocollaborate with the internalmanagement team as a single team
Naotaka Kawakami
Outside director
to enhance corporate value. During
the past year, through frank
discussions with the internal management team, I
believe I have been able to play a reasonable role inmaking policy decisions on individual matters such as
executive appointments and M&A projects, preparing
the first CSR Report, and establishing various
regulations to strengthen corporate governance. As I am
from a government ministry, I would also like to keep
abreast of the macroeconomic and social situation andgovernmental trends, and try to link this to sustainableenhancement of corporate value.

We will strive to make proposals that contributeto the maintenance of sound management fromthe perspective of stakeholders.
The role of outside auditors is toattend Board of Directors meetings
and audit whether business is being
conducted properly. Each Board of
Directors meeting and Management
Council meeting features various
Yasuko Yoshida
Outside auditor
reports and lively discussions, and I
feel that the company is truly aliving organism. As a living organism, it is important toadmit that one’s health is not always perfect, so I strive
to point out issues and give corrective advice while thesymptoms are still mild.
I think that the company’s management is sincerely
responding to comments made by the outside officers inorder to improve corporate value, and I feel fulfilled
when I can make some kind of contribution to thebetterment of the company as an outside auditor.
My specialty is accounting, but I would like to fulfill myrole in maintaining sound management by striving toacquire insight from the perspective of stakeholders.

28CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Risk Management
Responding to COVID-19

Basic Risk Management Policy
The OOC Group will promote risk management to prevent theoccurrence of risks and to protect the safety of officers, employees, andlocal residents in the event of an emergency, and to ensure thecontinuation of business operations.
1. The OOC Group’s top priority is to ensure the safety of human life.
2. We position risk management as an important management issue,
and work on activities from a company-wide perspective to preventthe occurrence of risks.
3. We promptly report risk-related information and share it throughout
the company.
4. All officers and employees of the OOC Group shall improve their risk
sensitivity and promote risk management with the participation of all
employees.
5. We will respond quickly and appropriately when risks arise, and strive
to minimize losses.

Risk Items

Multiple purchasing andstable procurement ofimportant raw materials

Legal regulation

We conduct our businessactivities in compliance withlaws, regulations, and social
rules by gathering informationin the regions in which we
operate, both in Japan andoverseas.

Information
security

1. Protecting the health of our employees is our top priority.
2. Restricting movement between departments and with business partners to protect production sites.

Measures

Procurement of
raw materials, oilprices andfluctuations in raw
material prices

Risk Management Process
1. Identify and assess risks.
Identify the risks that affect the business plan for each fiscal year andevaluate them in terms of their impact on management, frequency ofoccurrence, and vulnerability.
2. Determine critical risks.
Based on the results of the evaluation, select the OOC Group’s priority
risks, and consider and select the necessary countermeasures.
3. Monitor the implementation status of risk measures, etc.
Monitor the key risks, including the implementation status of plannedrisk measures.

Company Policy on COVID-19

Critical risks and their responses

Infection Status of OOC GroupAs of the end of May 2021, we have confirmed one
infected person in the OOC Group at one of our
production plants.
In terms of production activities, there has been nosuspension of operations due to the spread of COVID-19.

Risk impact size
Risk vulnerability

Risk analysis/assessment
Internal Control Committee
Risk response/handling
Affected departments

Risk monitoring/review

Risk occurrence frequency

Internal control
and compliance

Carrying out risk management
Risk management processes

Individual infection prevention measures are implemented based on the judgmentof each office, taking into account local characteristics.
Head Office

Tokyo Office

Kanazawa Plant

Disinfection andtemperature check at reception

Disinfection andtemperature check at reception

Disinfection andtemperature check at reception

Partitions in conference rooms

Partitions in offices

Partitions in cafeteria

COVID-19 Prevention TeamOn May 22, 2020, a COVID-19 prevention team wasestablished with the aim of preventing the OOC Group’s
executives and employees from infection with the COVID-19.
The person in charge of BCP serves as the team leader, andone member is selected for each office. In cooperation withthe health and safety organization, the team manages
hygiene equipment such as masks and disinfectants on adaily basis, collects information on the relevant infectious
diseases, and examines and submits reports on the OOC
Group’s countermeasures.

With regard to confidential
information held by OOC andits subsidiaries, we strive toprevent such risks frommaterializing through strict
management, establishmentof an appropriate systemmanagement system, security
measures, and employee
training.

Main contents of discussion and report• In response to a twindemic (a simultaneous outbreakof the COVID-19 and the seasonal flu), we paid for thecost of vaccinations for employees and their families.
• Stockpiling of PCR test kits at all offices

Sakata Plant

Osaka Office

Yachiyo Logistics Office

Disinfection andtemperature check at reception

Disinfection andtemperature check at reception

Disinfection andtemperature check at reception

Partitions in conference rooms

Silent meal sign in the cafeteria

Disposable slippers for visitors

Partitions in conference rooms

Installation of a flow-through sanitizing
water generator for hand disinfection

Major Infection Control Measures of OOC Group
1. Work• Working from home
• Staggered work hours are encouraged.

2. Business trips• Restrictions on domestic business travel• Business trips to plants prohibited fromareas where the infection has spread.
• Overseas travel generally prohibited

3. Meetings andevents• Internal event training and meetings arebasically conducted using video and web
conferencing.
• As a general rule, in-house get-togethers
involving food and drink are prohibited.
• External seminars, academic meetings,
and exhibitions are joined by web
conference.

R/C (Risk/Compliance) Committee
Risk identification/classification

Infection Prevention at Each Office

OOC and its subsidiaries
conduct various training andeducation programs to ensure
thorough compliance, andstrive to raise awareness of
the importance of compliance.
In addition, we haveestablished a whistle-blowing
system to prevent and quickly
resolve compliance violations.

Shinko Organic
Chemical Industry

4. Health and hygiene • Hand-washing and oral hygiene
management
protocols enforced

BCP Work
Basic Policies for BCPs
1. Respecting human life: Checking and ensuring the safety of employees andtheir families is our top priority.
2. Ensuring business continuity through early recovery: Ensure stable supply forearly recovery to prevent interruptions in client business and retain client trust.
3. Assisting the local community: Act as a member of the local community tohelp as much as possible with evacuation and relief efforts for area residents.
Promotion System
The BCP Manager established in the Corporate Planning Division plays a central rolein promoting company-wide activities. In addition, the formulation and review of the
OOC Group’s BCP is discussed by the Risk/Compliance Committee, which submits itto the Internal Control Committee and then to the Board of Directors for approval.
BCP Exercise
In December 2020, we conducted our first company-wide BCP (Business Continuity
and Disaster Prevention) exercise, which had previously been limited to disaster drills
at each office. The exercise was conducted to ensure that, in the event that thecompany suffers serious damage due to an unforeseen disaster or accident,
employees will be able to quickly confirm the status of damage to facilities and confirm
their safety without confusion when the BCP is activated. The content of the exercise
focused on the initial response immediately after the BCP is activated and inter-sitecommunication between the Task Force and the Kanazawa Plant Task Force.

29

Earthquake Response and Evacuation Drills

Training to Confirm the State of Damage to Facilities

Implementation of an earthquake response drill (shakeout drill) wasannounced via on-premises broadcast or landline phone, and after taking
protective actions, employees were evacuated to the temporary evacuationsite on the premises, and the roll call was confirmed to be in place.

Three principles of safe behavior
in the event of an earthquake

Evacuate toan evacuation site

MusterSafety Confirmation Training
Safety confirmation e-mails were sent out from the Head Office using
the safety confirmation system, and each person was checked to see
if they were able to properly respond regarding their safety.

The Damage
Status Sheet
describing the stateof damage was
attached to thefacilities andequipment of the
Kanazawa Plant,
and a team of two
people checked
whether the state ofdamage could bechecked andreported promptly.

Training for Communication Between Bases

Find the Damage
Status Sheet

Report to the Kanazawa
Plant Task Force and i
nstruct them to take action

Lifesaving

Firefighting activities by
self-defense firefighters

A video conference
was held between
the Task Force andthe Kanazawa Plant
Task Force toconfirm whether thesituation at the site
could be accurately
reported to the headof the Task Force(CEO). The head of
the Task Force
instructed the Task
Force to implement
the BCP and tocontinue business
operations.

Kanazawa Plant
Task Force

Teleconference

Head of the Task Force(right)Task Force30

CSR REPORT 2021

History and Strengthsof Value Creation

Environmental Initiatives

Special Feature: Contributing to
the SDGs through Our Business

Top Message

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Initiatives to Build a Decarbonized Society
Major typhoons, torrential rains, droughts, heat waves and other abnormal weather events have recently caused

Basic Approach

Since production activities at chemical plants are the OOC Group’s core business area, environmental protection work ismajor damage around the world. The growing number of extreme weather phenomena caused by climate change
have raised concerns over the risk of shutdowns in infrastructure and other functions, and over potential threats

one of our highest priorities. This work involves regulatory compliance to prevent environmental pollution, along with otherto food safety and security. On the other hand, in October 2020, the Japanese government declared that it aims

activities designed to reduce environmental impact by analyzing our business conditions and predicting future changes.

to achieve a carbon-neutral, decarbonized society by 2050, and a series of regional and private companies havealso declared their intentions, and the government and private companies are now promoting studies andMedium-term Policy (2020–2024) Issues

activities. The OOC Group has recognized the long-term importance of dealing with climate change throughdecarbonization, and is working to help the world transform to a low-carbon economy over the medium term.

Company activities designed for coexistence with the planet and the public

Progress to Date Toward World Transformation to a Low-carbon Economy

・Building global partnerships to enable sustainable development
・Managing chemicals and reducing waste throughout product lifecycles
・Proactive use of resource recycling and use of renewable energy

Contributing to a low-carbon economy through business reforms

State of Environmental Impact

The Osaka Plant was shut down by fiscal 2014 as we worked
on revising or discontinuing a number of products under abusiness reform project called Plan 14. The project helped us
reduce CO2 emissions and energy consumption by reviewing

The OOC Group works to accurately identify how we affectthe environment through our business activities, from raw
material procurement to production, scrapping, and recycling.
We work to reduce environmental impact by qualitatively andUse of natural
materials
such as pineand corn

The OOC Group works to reduce energy and resource consumption.
Raw materials

Water

51,000 metric tons

5.94 million metric tons

EnergyOutsidecompany
Re-refining Collection Reuse

products with poor production efficiency or excessive
environmental impact. Next Stage 10 is the name of our

OOC Group’s CO2 reduction measures
Osaka Office,Kanazawa Laboratory● Development of products that contribute to resource and energy conservation

Kanazawa Plant,
Sakata Plant● Saving power by switching to inverter-driven facilities/equipment● Saving power by reviewing equipment cleaning methods (speeding up processes)● Saving power by updating air conditioners and refrigeration equipment and reviewing operation

Total energy

15,637 KL

Electricity

6,997 KL

Head Office Plant of Shinko
Organic Chemical Industry● Switching to power lifts

Heavy oil

4,312 KLAll offices● Saving power by switching to indoor/outdoor LED lights

Natural gas

4,321 KL

Breakdown

INPUT

quantitatively identifying how much we reduce or reuse theresources we consume and discharge.
Various ESG data will be published on our website.
(September 2021)

Long-term Business Plan begun in fiscal 2015. It calls for a
focus on electronics materials along with business reforms
through measures such as reviewing unprofitable businesses.
It has helped us curb rising CO2 emissions while boosting net
sales and profits.

Other

Updating refrigeration equipment

6 KL(Note: Energy consumption quantities are given as

In fiscal 2020, we invested in refrigeration equipment renewal,
compressor replacement, and other investments with highenergy-saving effects.

crude oil consumption equivalents.)

CO2 circulation

Business activities

Tree
planting
activities—
OOC Future
Forest program
Absorption

Plastic container/
drum collection

OUTPUT

Production
quantity

CO2

NOx
PRTR substances

Clients

40,300metric tons

Plastic container/
drum collection

The OOC Group works to reduce the amount of waste
and emissions generated by its business activities.

Atmospheric emissions

SOx

31

Shipping

R&D/production activities

Suppliers
Forests

OOC Group

42,600 metric tons
3.7 metric tons
17.2 metric tons
20.4 metric tons

Emissions to bodies of water
COD load

18.0 metric tons

SS load16.7 metric tons

Reuse ofwaste oil andwaste solvents
2,600 metric tons

Waste oil,plastic,
other waste

Changes in CO2 emissions and CO2 reduction rate (based on fiscal 2013)

CO2 emissions and gross profit margin intensity index

Unit: Thousands Effects of Plan 14

Unit: Thousandsof metric tons

Effects of Next Stage 10 business reforms
Unit: %of metric tons

50.0

Waste discharge
Amount of industrial
waste generated

19,000 metric tons
(22% recycling rate)

Amount treatedin-house

11,600 metric tons
(61% in-house treatment rate)

Amount discharged
externally

7,400 metric tons

Final landfill
disposal amount

137 metric tons
(0.7% final disposal rate)

11.3

10.9
8.0

45.0

12.0
9.0

50.0

Effects of Plan 14100

Effects of Next Stage 10 business reforms
Unit: %

100

87
75

45.0

67

6.3
40.0
35.0

4.2
48.1

46.1

42.8

45.0

0.0
30.0

2013

2014

2015

■ CO 2 emissions

2016

47.3

47.0

1.7

2.2

2017

2018

44.3

42.6

2019

2020

6.0

40.0

3.0

35.0

0.0

30.0

(fiscal year)

CO 2 reduction rate (based on fiscal 2013)

62

57

75
55

48

48.1

46.1

42.8

45.0

47.3

47.0

44.3

42.6

2013

2014

2015

2016

2017

2018

2019

2020

■ CO2 emissions

50
25
0

(fiscal year)

Gross profit margin intensity index(based on fiscal 2013)32

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Initiatives to Reduce Environmental Impact
Establishment of the Carbon Neutralization Study Committee
In March 2021, we launched the Carbon Neutralization Study
Committee in order to increase the effectiveness of our goals
for building a decarbonized society by 2050.
With the Corporate Planning Division serving as thesecretariat, the committee is composed mainly ofenergy-related managers from the Kanazawa Plant andShinko Organic Chemical Industry.

Basic Approach

Milestones were set for long-term targets, and targets andspecific measures for fiscal 2021 were proposed at theManagement Council.
From now on, we will report the proposed scenario in
accordance with TCFD and specific measures to achieve thetarget at the Management Council as needed, and the entire
OOC group will work together to achieve carbon neutrality.

CO2 reduction rate targets to build a decarbonized society
Fiscal 2020
Results

Fiscal 2021
Targets

Fiscal 2024
(mid-term target)

Fiscal 2030
(mid-term target)

Fiscal 2050
(long-term target)

11%

12％

15% or more

30% or more

Substantial zero

[Fiscal 2021 Scheduled Activities] Energy-saving activities, shift to high value-added products, start of solar power generation(Kanazawa Plant), review of electricity contracts

Reducing energy
consumption throughinnovation

Carbon neutral

Our technology

CO2 recovery fromincinerator and
VOC processing gas
VOC combustion
treatment equipment
VOC concentrationin plants

Reduction of heavy
oil consumption
by using waste oil
Consideration of
introducing LNG
facilities

Reduction of fossil
fuel consumption
through conversion
to electricity

2020

2025

2030

Reducing Industrial Waste

Recycling rate(compared to fiscal 2015)

The OOC Group works to further reduce environmental
impact through activities that put the three Rs (reduce,reuse, recycle) into practice. These activities are designed toreduce the amount of industrial waste generated while
making effective use of limited resources by consistently
sorting generated waste and recycling more of it. We havealways promoted in-house recycling by using byproduct oil
treatment systems to turn waste oil into fuel and waste
solvents into boiler fuel. In fiscal 2020, the recycling rateincreased by 2.2 percentage points from the previous year to
21.5% due to the progress in converting waste oil fromexternal processing to internal fuel. In the future, we willcontinue to study waste oil treatment methods and engage inactivities with an awareness of resource recycling.

Reducing Emissions of PRTR-regulated Chemicals

2040

2050

Fiscal 2020 results: 21.5%

Fiscal 2024 target: 25% or more

Changes in waste data
Unit: Metric tons

Unit: %

20,00018,09917,304

19,053

17,83525.0

15,662
15,00021.5

10,000

18.8

18.9

5,959

6,498

17.5
5,629

0

22.0

19.3
7,452

6,741

19.0
16.0

5,000
129
2016

177
2017

143

133
2018

2019

137
13.0
2020 (fiscal year)■Amount of industrial waste generated■Landfill disposal

Emission reduction rate(compared to fiscal 2019)

Our environmental impact reduction efforts include work on
properly managing chemicals generated by our businessactivities while reducing their emissions. For example, wetake part in the Japan Chemical Industry Association’s
voluntary PRTR surveys and work on reducing
environmental chemical emissions. Previous emissions
reduction measures includes upgrading deodorizing
equipment for outdoor tanks and plant facilities. In fiscal
2020, the emission reduction rate was 3.2% compared to theprevious year. In the future, we will consider the introductionof VOC combustion equipment to further reduce emissions.

Use of new energy
sources such ashydrogenSolar power
installation
Purchase of green
electricity

The OOC Group makes efforts to reduce the environmental impact of its business activities, which affect theenvironment in various ways because they consume large amounts of energy, chemicals, water resources, andother inputs.
With regard to environmental compliance, which is the foundation of our activities, we ensure compliance withenvironmental laws and regulations in each country and region. In addition, we instill in our employees theimportance of legal compliance through ongoing education and audits. At the same time, we strive to beenvironmentally friendly to local residents by communicating with them on a regular basis.
In fiscal 2020, we had no significant environmental compliance violations. We will continue to provide safety andsecurity to local residents and continue our activities in consideration of the global environment.

■Waste discharged externally
Recycling rate (based on fiscal 2015)

Fiscal 2020 results: 3.2%

Fiscal 2024 target: 60% or more

PRTR emissions (top three substances and total quantity) and emission reduction rate
Unit: %

Unit: Metric tons

80
60
40
20
0
■n-hexane

4

66.1
55.8

56.4

18.3

18.8

10.4

11.5

3.2

26.1

2

12.4

12.4

11.8

11.6

14.8

14.3

16.0

2016

2017

2018

3

21.1
11.6
5.1

0
2019

■Methyl methacrylate ■Methyl acrylic acidEmission reduction rate (based on fiscal 2019)

20.4

2.3
2.1

1
2.6
1.8
4.8
0
2020 (fiscal year)
11.2■OtherPreventing Air Pollution
Preventing air pollution through measures such as
rationalizing the operation of boilers and incinerators has
always been an area of focus for the OOC Group. We arealso working on further reducing atmospheric emissions ofhazardous substances.
In the future, we will continue to monitor emissions on an
ongoing basis and make efforts to reduce them.

Preventing Water Pollution
The OOC Group’s wastewater treatment processes arecontinually monitored as we work to prevent water pollution
by meeting regulatory values. As part of this work, we makeongoing efforts to reduce environmental impact on bodies of33

water by rationalizing the operation of activated sludge
treatment facilities and wastewater incinerators.
The level is still well below the regulatory value, and we willcontinue to work on reducing it through steady monitoring.

34

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Workforce Recruiting and Training

Relationship with Employees
We aim to be a company where employees can experience job satisfaction and growth through their work.

With the aim of becoming a corporate group that can make a sustainable contribution to the development ofsociety, the OOC Group is taking various measures for workforce recruiting and training to cultivate a corporate

Basic Approach

The reform of work styles in the OOC Group is not limited to merely reducing working hours, but aims to increase
productivity as we work to improve the job satisfaction of each and every employee. To this end, we will create a
corporate culture that fosters sincerity, enthusiasm, and creativity by drawing out employees’ initiative andwillingness to take on challenges, and achieve both individual happiness and sustainable growth for the company.

culture where employees can maximize their abilities and where each individual can play an active role.

Workforce Recruiting
In December 2020, we renewed the recruitment information on ourPriority Strategies—Human Resource Development and Workplace Reform

recruitment website. This led to an approximately 10-fold increase in thenumber of applications received from the entry box on the website. We▶ Continuous improvement of job satisfaction

received positive feedback from students, who said that it was easy tounderstand the benefits and company systems. We will continue to enhance

・Visualization of job satisfaction and continuous efforts to improve it
・Development of an environment in which human resources can play an active role in anticipation of the 100-year
life era and support for second life planning (promotion of diversification of work styles and lifestyles)
・Initiatives to establish diverse, flexible, and time-conscious work styles

employees and plants.
Number of entries

242021 graduates

Improvement in job satisfaction
Good place to work

our website by adding various content, such as introductions of our

Improvement of motivation and ability

247

2022 graduates

About

10

times

Health preservation

Multiple-line Personnel Evaluation System Job Group
Reduction of working hours per person

In order to provide an environment where each employee can maximize
their individual strengths, we have established various career paths. Job

Visualization of work style (job satisfaction index)● The results of engagement surveys (surveys of employee satisfaction) conducted by external organizations are used as KPIs.

Will
Improvementof ability

Workforce recruiting
Promoting strategic mid-career recruitment(digital human resources/global humanresources, etc.)

Evaluation system for development
purposes

Creating a workplace
where diverse people canplay an active role
Diversity

Human resource development/
personnel system

Purpose of
one’s work
Ease ofworking

Healthpreservationgroups are determined through interviews with the head of the department
and through discussions based on the wishes of the employee.
By offering a variety of career paths to choose from, we will create anenvironment that allows each employee to express their individuality and* In the third year of employment, employees will be asked to select the
job group they wish to work in (career-track group or general staff group).
* In the case of a change of job group, the employee’s desired job groupwill be confirmed through an interview with the head of the department.
* There is a possibility that job groups will be changed due toreorganization.
* In the event of a change of job group to R, changes of job group will
be restricted for three years in principle.

promote diversity in the way they work.
(1) Career goal M job group(2) Career goal E job group(3) Career goal S job group(4) Career goal R job group→ People whose career goal is to workin the M job group→ People whose career goal is to workin the E job group→ People whose career goal is to workin the S job group→ People expected to play an activerole in a specific field or region,
not in a management position

Health management

Respect for the individuality of each
person (elimination of bias)
Eliminating the gender gap

Physical health care
Mental health care

Respecting human rights
Work-life balance
Promoting diversity in work styles

Combating harassment
Measures to enhance the effectivenessof the whistle-blowing system

What Is an Engagement Survey?
An engagement survey is like a health checkup for the company. By
conducting this survey, it is possible to know the true intentions of
employees and visualize the health of the organization. Then, based on
the results of the survey, the current issues of the organization can beclarified and the necessary measures can be taken to resolve them,leading to engagement (i.e., building positive relationships).
When engagement improves, each employee can enjoy the feelings of “I
can fully demonstrate my abilities!” “I feel satisfied with my work!” “I enjoy
my work!” and “I like the company and the workplace!” When employees
feel this way it gives them a sense of fulfillment and provides the basis
for sustainable growth of the company.
* Engagement: A positive relationship between a company and its employees. By ensuringthat each employee understands the company’s goals, it creates willingness to voluntarily
demonstrate their abilities.

A◀

Fiscal 2030
targets

B◀

Fiscal 2024
targets

C◀

Fiscal 2020
(current status)

Within the top 10%

Top

Top 10% to 30%
Top 30% to 45%

Systems to Support and Encourage Employees

D

Bottom 40% to 55%

BottomE

Bottom 20% to 40%

FWithin the bottom 20%

Currently, we offer incentives of up to 500,000 yen for

wide range of qualifications for each job, such as 100,000 yen

acquiring 84 different qualifications. For example, we pay

for those who have obtained the pre-first grade of the English

60,000 yen to those who have obtained a Class A and 8,000

Proficiency Test. We also have an internal award system to

yen to those who have obtained a Class B-4 hazardous

recognize employees who have worked hard during the year

material handler’s license, which is essential for chemical

and to support their creativity and ingenuity.

facility workers. In addition, we support the acquisition of a35

36

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Creating a Workplace Where Diverse People Can Play an Active RoleThe OOC Group is working toward diversity based on the idea that diverse human resources are essential forsustainable growth as a company. We are also focusing on initiatives to enhance work-life balance in order tomeet the diverse life stages and career plans of our employees.
Received the Excellence Award in the Large-Scale Enterprise
Category of the Mayor’s Award for the 2020 Osaka City

Initiatives for Diversity/Work-Life Balance

Leading Company for Women’s Activities Awards
Act on Advancement of Measures to Support Raising

Act on Advancement of Women’s Activities—General

We are pleased to announce that we have received the

Next-Generation Children—General Action Plan

Action Plan

Excellence Award in the Large-Scale Enterprise Category ofPlanning period: Four years from November 1, 2020 toPlanning period: Five years from April 1, 2021 to March 31, 2026

the Mayor’s Awards for the 2020 Osaka City Leading Company

October 31, 2024

Target: Increase the ratio of (1) or (2) below in order to strengthen

for Women’s Activities Awards. This award is presented by theTarget: Increase the rate of employees taking childcare leaveand leave for childcare purposes.
• Male: 20% or more (Current: 4%, fiscal 2019 results)

the development of female managers (or equivalent) with

Mayor of Osaka to companies with 301 or more employees

the aim of appointing them to managerial positions.

that have received two-star certification and are engaged in(1) Ratio of women in management positions (equivalent):
10% or more (current ratio: 3.1%)(2) Equalize the ratio of stage promotions by gender.

outstanding activities. In order to support the balancing of workand child-rearing, for employees’ shortened working hours andthe elimination of the feeling of unease when one’s child starts

staggered working hours, we have expanded the age range ofelementary school (the so-called “1st-grade wall”). This

children to be taken care of from 3 to 9 years old, allowing forreceived highly positive evaluations.

Achievements in Obtaining Certification Marks
Telecommuting System/Flextime System

Two-star certification as
an Osaka City Leading Company
for Women’s Activities

Certification of Osaka Prefecture’s
Declaration of Vigor and Vitality for
Men and Women(certified on November 1, 2020)(certified on December 10, 2020)

A Three-way Meeting at the Time of
the Leave to Resolve Various Concerns

37

Certified as a company that declares
its commitment to promoting genderequality in Ishikawa Prefecture, as aClass for Accelerating Women’s Activities

In January 2021, we launched a telecommuting system for

introduced a flextime system. We have introduced this system

employees who use computers and telephones to perform

at 100% of the sales and administrative departments at thetheir duties. By supporting employees who are pregnant,Head Office and Tokyo Office, and where approved by theraising children, or caring for family members, we aim toheads of other departments, thus creating an environment

enhance their work-life balance. In addition, OOC has

that allows employees to choose from diverse work styles.

(certified on December 8, 2020)and I was glad to know that he was consideringFirst in the Company toOffer Partial Parental Leave

my older children and taking care of their daily

When I took my first childcare leave, I was worried

things together with me. It became easier to share

When my second child was born, I took a form ofneeds. It was a very meaningful time for me because

about what my job would be like during mythe current situation above and beyond the handoverchildcare leave called partial parental leave. This is a

I could see my children’s growth every day, which I

pregnancy and where I would be after I returned toof work, and I think it is a good opportunity for thosesystem that allows employees to balance work andmiss when I am working.

work, as I was a researcher who handled

who are not sure when to consult or report.

childcare by taking childcare leave and working

This time, I was able to return to work without

pharmaceuticals. In addition, I had to go throughI recently had an interview after six months of

reduced hours.

anxiety by choosing to take partial parental leave.

many procedures for the first time. In this regard,childcare leave, but by then I had accumulated a lot

My superiors and co-workers readily accepted myThis has helped me realize the importance of being

through the three-way interview, I was able toof detailed questions, so I think it would be evenrequest, and the handover of my work was smooth,sharp and efficient in my work.

confirm the schedule in detail by discussing it with

better if we could create an environment where

so I had no worries when I took leave. During mymy supervisor based on confirmation from thepeople can easily ask questions before taking leave.

leave, I spent my time rushing around playing with* This is a style of childcare leave in which the employee
works reduced hours while taking childcare leave.

General Affairs Department and explanation of the

The stories of senior employees who have actuallysystem, which eased the anxiety I had been feelingtaken childcare leave are really valuable information.

about my work before my leave. At that time, myI hope that those who taking part on this kind of

supervisor also asked me questions enthusiastically,

interview will make good use of it.

Chikako Minami
Section 3, Osaka
Laboratory

Tomoya Mizumori

Laboratory Section,
Advanced Technology
Research Institute38

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Respecting Human Rights
Power Harassment Prevention Training (February Management Training)

Basic Approach

In addition to complying with respect for human rights in the conduct of its business, the OOC Group is

In June 2020, the Revised Labor Measures Comprehensive

strengthening its efforts to create an effective system. In the future, we intend to establish a basic policy on

Promotion Act (commonly known as the Power Harassment

human rights based on the Universal Declaration of Human Rights and other international standards.

Prevention Act) came into effect. In accordance with this law,

Whistle-blowing Regulations: Number of Internal Consultations
employees and others regarding organizational or personal

whistle-blowing and has set up both internal and external

misconduct, and is striving for early detection of inappropriate

consultation desks. The Group has established internal andbehavior, improvement of self correction, and securing of

external consultation services to receive consultations frompublic trust.

7■Number of consultations

power harassment under the Revised Labor Measures Comprehensive
Promotion Act that came into effect June 2020, as well as measures to be taken
by law, penalties for failing to take such measures, and civil liability claims forprevent harassment in the workplace. In February every

compensation. He also explained in detail the boundary line between power
harassment and instruction/attention, which is difficult to judge, such as whether
attention/guidance is a denial of the other party’s personality or an attack on the

the Group.

other party’s personality, based on judicial precedents where judgments wereThorough prevention of power harassment by adding

divided in the first and second instance.

education for managers

The training was very helpful for managers who are in a position to guide theirsubordinates, as it explained how to prevent power harassment and how

In February 2021, we conducted training for all managers onorganizations should be organized based on these precedents.

the prevention of power harassment. To prevent the(2) Power Harassment from the Perspective of Organizational Theory

COVID-19, web-based training was also conducted for

Number of whistle-blowing cases and consultations

He explained the newly implemented obligation to take measures to prevent

the OOC Group has been taking various measures toyear, we conduct compliance training for all employees of

The OOC Group has established regulations regarding(1) Legal Restrictions on Power Harassment

At the end of the training, Mr. Hama advised that, as an organizational constitution
prone to power harassment, long-established corporate practices increase theemployees who work from home.

dependence of individuals on the organization, creating an environment prone to

We invited Kazuaki Hama of Kyoei Law Office, our legal

power harassment. Based on this point, he recommended the differentiation fromadvisor, as a lecturer for training on the following two topics.

■Number of whistle-blowing cases

the organization to the individual and ways to break away from organizational
structures prone to power harassment, which can be achieved through home andtelework, clarification of the scope of work, authority, and responsibility, career andtreatment, and visualization of contributions and results.

Harassment Prevention/Childcare Leave Interviews
4

1

1
2017

2018

4

2019

general affairs staff before and after the start of childcare

leave, and nursing care leave by employers is prohibited byleave and before and after their return to work, in order tolaw, but in 2017, “harassment by superiors and coworkers inalleviate the anxiety about returning to work of employees

the workplace regarding pregnancy, childbirth, childcare leave,

who have taken leave and to promote understanding by theirand nursing care leave” was prohibited as pregnancy

supervisors. In this way, we are striving to promote

discrimination. As with sexual harassment, employers are now

understanding in the workplace of physical condition during

required to take preventive measures. The OOC Grouppregnancy and working styles after returning to work, and to

conducts interviews with employees, their supervisors, andeliminate unconscious bias.

2020(Fiscal year)

Interview period

Type

Contents

After pregnancy reportThree person interview (1)Explanation of procedures and systems related to childcare leave

Most recent initiatives

2 months before closure

Three person interview (2)Physical condition and work load confirmation. Confirmation of scheduleduring childcare leave

Every February

Compliance training for all employees of the OOC Group

6 months after childbirthTwo-way interview with General Affairs Department

Support during childcare leave. Status report

Fiscal 2018

Explanation of initiatives to prevent harassment in the workplace (CEO, General Manager of Administration)

2 months before return

Three person interview (3)* Interview at the time of extension every six months

Support for recovery. Status report

2 months after return

Three person interview (4)Physical condition and work load confirmation. Support after return to work

Dissemination to all employees of the OOC Group
Establishment of an external consultation service for harassment by Japan Institute for Women’s Empowerment and Diversity Management
Fiscal 2021

39

Disadvantageous treatment of pregnancy, childbirth, childcare

Training on preventing power harassment by inviting outside lecturers (for all managers)

40

CSR REPORT 2021

History and Strengthsof Value Creation

Promoting Health Management

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Basic Approach

As part of its efforts to create a workplace where employees can work in good health, the OOC Group is

The main objectives of occupational safety and health are to maintain the safety
and health of employees and to prevent disasters and accidents.
In addition to complying with the Occupational Health and Safety Law and related
laws and regulations, the OOC Group is committed to promoting the health of its
employees. As a result, we are working to improve the health of our employees
and our organizational culture, because healthy employees and a healthyorganization lead to higher labor productivity.

promoting health management. By implementing various measures to maintain and improve the health of
our employees, we are aiming to be certified as an excellent health management corporation in the future.

Employees’ Health Management
Specified medical checkup rate (%)
Rate of people eligible for specified health guidance (%)(1) Initiatives in Cooperation with the Health Insurance Association
Specifically, we requested health insurance associations toanalyze past data on specified medical checkups and specified
health guidance to understand the changes in the data for three
years starting from fiscal 2016. According to the results, the rateof receiving the specified medical checkups and the rate of using
the specified health guidance have been increasing year by
year, and have exceeded the average of the health insurance
associations, while the rate of those subject to specified healthguidance was higher than the average of the health insurance
associations in fiscal 2016 and fiscal 2018.
In addition, per capita medical expenses related tolifestyle-related diseases were lower than the average of thehealth insurance association in fiscal 2016, but have been on an
upward trend since fiscal 2017 and are significantly higher than
the average of the association. For this reason, we will strengthen
our guidance on the use of specified health guidance for those
who are eligible for it, and promote improvements in healthawareness. We will enhance our support for exercise, sleep, diet,and stress management so that employees can maintain ahealthy state that allows them to work with peace of mind.

160

0

cases

(Dec. 2019 to Nov. 2020)

CEO

140

Administration Division

120

100

80

2016

2017

2018
(Fiscal year)* The average value of the health insurance association is 100.

Head Office

Tokyo Office

300
250
200
150

Kanazawa Plant

Osaka Office

Sakata Plant

Yachiyo
Logistics Office

Occupational Health and Safety Organizations

Trends in medical expenses per capita

Subordinate organizations and their main roles■Diabetes mellitus■Hypertension■Hyperuricemia■Hyperlipidemia■Total

100
50
0
2017

2018
(Fiscal year)* The average value of the health insurance association is 100.

(2) Introduction of the System

With the introduction of the system, it has become possible to centrally manage the status of medical checkups and reexaminations
for the entire company, enabling information sharing and preventing missed checkups. In addition, by linking with attendance
management, it is possible to identify employees who work excessive overtime, conduct stress checks in real time, and share
information with industrial physicians, making it easier to determine whether or not to conduct interviews. Furthermore, each
employee can view the results of their medical checkup from their PC or smartphone, which we expect will help improve employee
health awareness.

Fire Fighting Subcommittee.........................Fire and disaster prevention planning for plants and maintenance and management of
propulsion fire extinguishing systems, fire extinguishers, hazardous materials facilities, etc.
Environmental Sanitation Subcommittee....Planning and advice on maintaining the workplace environment, inspection and investigationof safety and health protective equipment, guidance on first-aid equipment inspection, etc.
Health Promotion Subcommittee.................Planning and promotion of sports events for all employees to participate in forthe purpose of promoting healthInspection Subcommittee.............................Premises inspection planning, implementation, and follow-up
Zero Accident Education Subcommittee.....Assessing and summarizing the status of Zero Accident Team activities, planning participationin external training sessions, etc.

[Sakata Plant] Zero Accident Initiatives: Zero Accidents Achieved 3498 Days
At the Sakata Plant, the Health and Safety Committee meets once a month, and during the committee meetings,
each section reports near-misses and shares the information with the other sections so that they can be alerted. In
addition, when important near-misses occur, they are included in the risk assessment and the entire plant works on
the themes for improvement. In this way, we are working every day to ensure the safety of our employees and to

Expanding the Number of People Eligible for Flu Vaccination Subsidies
In preparation for the simultaneous spread of the COVID-19 andseasonal flu, the vaccination rate increased due to the
expansion of the eligibility for our flu vaccination subsidy toinclude family members living together in addition to those
insured by health insurance and their dependents.

Number of lost workday
injuries in the OOC Group

Organizational Structure for Occupational Safety and Health (Osaka Organic)Specified health guidance utilization rate (%)

2016

provide peace of mind to the local community by focusing on near-misses that may lead to disasters.

Employees(as of Oct. 1)

Dependents(as of Sept. 17)

Fiscal 2019

388

Fiscal 2020

399

Number of
vaccinated people

Vaccination
rate

459

303

35.8%

472

444*

51.0%

* The number of vaccinated people, including those living together, is 490.

Countermeasures Against the COVID-19

41

Special Feature: Contributing to
the SDGs through Our BusinessOccupational Health and Safety

Basic Approach

In order to thoroughly prevent the COVID-19, we
have installed a non-contact body temperaturedetection camera at the entrance and acrylic plates
at the reception desk. In addition, air cleaners,
acrylic plates, and carbon dioxide meters havebeen installed in meeting rooms, conference
rooms, and each office to prevent infection.

Top Message

Countermeasures Against Heat Stroke in the Summer

Healthy Menu Added to Cafeteria Lunches (Shinko Organic)Distribution of anti-heat stroke goods, salty candies and tablets, free
supply of bottled beverages for rehydration (Kanazawa Plant, Sakata
Plant, Shinko Organic), dairy products added to meals on Mondays,
Wednesdays and Fridays (Kanazawa Plant)
Sakata lant

Three varieties sono one gets boredof the taste.

Shinko Organic

Regular menu: approx. 800 kcal

Healthy menu: approx. 500 kcal

(white rice, meat and fried food asmain dishes), hearty and filling!

(16 grain rice, lots of fish andvegetables in the meal)
Fish is deboned and easy to eat!

If you open the refrigerator...
three types of cold drinks arealways on hand.

Non-contact bodytemperaturedetection camera

Hand sanitizer

Air cleaner

Acrylic plate

Carbon dioxide
meter

Organic solvents are present
in the plant, so drinks areavailable in paper cups
instead of plastic bottles.

Inventory storage
area next torefrigerator

Salty candies
are kept on the
refrigerator door.

42

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Relationship with the Community
Results of Safety and Disaster Prevention Training in Fiscal 2020 (OOC Group)

Basic Approach

Period covered: December 2019 to November 2020
Kanazawa
Plant

SakataPlant

Osaka
OfficeShinkoOrganic

Poisonous Materials Handling Education & Training●●

Carrier Education & Training●●

Static Electricity Education & Training●

Evacuation Drills

●

●

●

●

●

●

Fire Drills

●

●

●

●

●

●

●

Emergency Response Test (Odors/Leakage)●

Fire Fighting Equipment Education & Training (Fire Hydrants, Automatic Fire Alarms, etc.)●

High-Pressure Gas Education & Training●

Health & Hygiene Education & Training●●

Risk Assessment Education & Training●●

Emergency/First Aid/Protective Gear Education & Training●

Education on Carcinogenicity Guidelines●●

Health Risks from Chemical Substances

●

●

●

●

Terminal Waterway Management and Other Education●

Prevention Regulations●

Large-scale Fire and Initial Firefighting Activities (Kanazawa Plant)
In addition to the large chemical fire truck (right) with the water discharge capacity of an aerial fire truck that had been deployed previously, amulti-functional small chemical fire truck (left) was introduced. Chemical fire trucks are deployed as a first response measure to handle large-scale fires
quickly in the initial stage. In November 2020, a training session was held for the new chemical fire truck.

The OOC Group prioritizes practicing safe business operations and achieving harmonious and prosperous
coexistence with local communities, while also accelerating initiatives to lessen the environmental impact of ouractivities. We are also aiming to make the OOC Group offices to become places that are trusted by the local
community, by organizing various social action programs with residents and through other initiatives.
In fiscal 2020, in the midst of the spread of the COVID-19, we placed
the highest priority on protecting the health of our employees, and wemade every effort to reduce the risk of cluster outbreaks within our
offices by thoroughly restricting movement between departments andwith business partners to ultimately help protect the health of everyonein the community, and we gave consideration to preventing the spreadof infection. We have been doing everything possible to prevent the
spread of the disease. In addition, we donated a total of 10 million yen
to the areas where our offices are located to aid in countermeasuresagainst the spread of the COVID-19.

Kanazawa Plant

Scholarship Program (S.C.B. Scholarship Foundation)
As a part of our social service, we have focused on the education andtraining business to develop human resources and established the
Scholarship Society as a way to achieve this goal. The purpose of thefoundation is to provide financial aid to the children of the general public
who are of sound mind and body, have excellent academic records, anda strong desire to learn, but who are unable to study for financial
reasons.

Reducing the environmental impact and improving the safety of our operations at this main plant

The Kanazawa Plant began operating in 1981 as the OOC Group’s second plant, and since then it has developed to become our main
plant. The Kanazawa Plant faces the holy mountain Mount Haku, and effectively uses the precious resource of groundwater from there
in its production activities. We use the plant’s state-of-the-art technology to carry out business activities that contribute to society.
We are also actively moving forward with a range of initiatives for achieving sustainable manufacturing that is energy efficient andeco-friendly. These include improving production processes, installing energy-saving equipment, and using renewable energy sources.
Additionally, through organizing and taking part in various social action programs in the community, Kanazawa Plant employees are
establishing closer ties with local residents.

A coastal protection movement, Clean Beach Ishikawa in Hakusan,
has been held every year in May, but this year it was postponeddue to the COVID-19 pandemic and was held in October.

We received an offer from Hakusan City to plant trees, and have been implementing OOC Future
Forest program activities since 2010 as part of our CSR activities. So far, we have planted about
1,000 Quercus crispula, beech, and Alnus hirsuta Turcz seedlings. They have grown to a height ofabout 2 m. In October, we fertilized the trees we planted.

Acquisition of ISO 45001 Certification (Sakata Plant)
Applicable standards

Registration number

Acquisition date

JIS Q 45001：2018

JCQA-O-0101

November 6, 2007

With the abolition of OHSAS 1800, an international certification for occupational health and safety management systems, in March 2021, the Sakata
Plant transitioned to ISO 45001 in December 2020 after undergoing a third-party review.
Ceremony to award subsidies to promote
the location of businesses in Hakusan City
We will contribute to the local economy and job
creation through aggressive capital investment.

The hot spring water gushing from the
Kanazawa Plant is provided free of charge tolocal residents.

The five-story employee dormitory, built in the spring of 2013, is provided as
an evacuation site for local residents in the event of a tsunami.

Kanazawa Plant (including the Kanazawa Laboratory)● Location: 1600-1 Matsumoto-machi, Hakusan-shi, Ishikawa● Established: June 1981

● Employees: 233 (as of November 30, 2020)● Main products: Semiconductors materials, coatings and adhesives materials,
resin raw materials, etc.

43

44

CSR REPORT 2021

History and Strengthsof Value Creation

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Relationship with the Community
Sakata Plant

Osaka Office

Production that also values precious natural capitalWith an eye on its future business development, the OOC Group started operations at the Sakata Plant in 2000 as its third plant.
The Sakata Plant is distinctive for being blessed with precious natural capital, such as an abundance of groundwater beneath thestable ground it is built on. We are also striving to make the plant’s operations safe and eco-friendly by reducing the environmental
impact of our production activities, which include handling chemicals, emitting CO2, and generating waste. Additionally, by taking
part in activities to beautify the area and making other efforts to establish harmonious coexistence with the community, we areaiming to make the Sakata Plant a factory that is trusted by local residents.

A hybrid office functioning as a west Japan distribution center and information-intensive laboratory

Established in 1961, the Osaka Office is one of the OOC Group offices. It began
operations as the Kashiwara Plant, and has built up the management base of ourcompany. Boasting a site area of 27,000 m2, the Kashiwara Plant had as many as
140 employees, but as other plants were built, it transitioned from a production
base to a distribution center. As part of manufacturing base reallocation Plan 14,
completed in 2014, the Kashiwara Plant was renamed the Osaka Plant, and thensubsequently the Osaka Office, which is the current name.
This office had been a chemical production base, with reliable and comprehensive
systems in place for safety and the environment. As per the reallocation plan, we
have recently removed old equipment at the Osaka Office. This has dramaticallydecreased the amount of hazardous materials handled, and provided further
assurance of its safe and eco-friendly operations. We will continue to develop andoperate the Osaka Office as a hybrid office functioning both as a distribution
center for western Japan, and as an information-intensive laboratory.

The new researchbuilding CREO wascompleted in the fallof 2020. With theconcepts of light,
nature, and creativity
in mind, we aim toaccelerate R&D andcontribute to society
through our business.

Fire hydrants thatcan respond to fires
not only in the office
but also in theneighborhood

Osaka Office (includes Osaka Laboratory/Advanced Technology Laboratory)

Yuza Town Forest Maintenance Volunteer (2019.12)● Location: 18-8 Katayama-cho, Kashiwara-shi, Osaka● Established: July 1961

● Employees: 50 (as of November 30, 2020)

Hattori Koya Coastal Cleanup (2020.7)

Head Office Plant of Shinko Organic Chemical Industry Small sized plant but a safe and state-of-the-art chemical manufacturing plant
H

Corporate Research Seminar (2020.2)

In order to contribute to the enhancement of medical rescue
activities in the surrounding areas in the event of a disaster,
we are registered as an off-site take-off and landing site for air
ambulances.

Sakata Plant

Commendation from the President of the Kobe
City Hazardous Materials Safety Association(Excellent Hazardous Materials Handler)

Expansion of first aid equipment(thermal blankets, bandages, etc.)
to meet the first aid needs ofpassersby

Shinko Organic Chemical Industry Ltd.

● Location: 157-23, Shigerimatsu, Fujisaki, Yuza-machi, Akumi-gun, Yamagata● Location: 18-26 Sumiyoshihama-machi, Higashinada-ku, Kobe-shi● Established: July 2000

● Established: April 1969

● Employees: 37 (as of November 30, 2020)● Employees: 41 (as of November 30, 2020)● Main products: Patterning materials for liquid crystal displays, cosmetics materials,● Main products: Solvents for electronics materials, cosmetics materials,

coating resin raw materials, etc.

45

The Head Office Plant of Shinko Organic Chemical
Industry began operating in 1969, as an acetic ester
production company. It is distinctive for being conveniently
located in a coastal industrial zone, which is useful for sea
freight, and also for manufacturing cutting-edge chemicals
used in semiconductors and other applications.
Since experiencing the Great Hanshin-Awaji Earthquake
in 1995, we have been developing and implementing
disaster-preparedness measures at this plant. There has
been increasing wind- and water-related damage causedby large and powerful typhoons in recent years, so theemployees here are very aware of the risks that comewith being located along the coastline. All employees
earnestly take part in disaster-preparedness activities,
both within and outside the plant. We will continue toensure the steady supply of chemicals, and safe
operations as a plant handling hazardous materials.

solvents for coatings/adhesives, etc.

46

CSR REPORT 2021

History and Strengthsof Value Creation

Stakeholder Engagement

Top Message

Special Feature: Contributing to
the SDGs through Our Business

Promoting Sustainable
Management

G Governance

E Environment

S Society

Third-party Opinions

Third-party Opinions
In preparing this fiscal year’s CSR Report, the OOC Group

Basic Approachrequested the Institute for Environmental Management

Through constructive dialogue with our stakeholders, the OOC Group will work together

Accounting (IEMA) to evaluate its CSR management activities,

to create a sustainable society where the children of the future can live happily.

and we subsequently received an independent opinion from the
IEMA.
Katsuhiko Kokubu, professor at the Kobe University Graduate
School of Business Administration, and Eriko Nashioka, a

Stakeholder Engagement Initiatives
Stakeholders

Clients

Main methods and opportunities for dialogue● Daily sales activities● R&D/quality meetings: 4 to 5/month● Quality audit: about 1/monthcertified public accountant, interviewed Tetsuya Watanabe,
Main contact

Business Operation Division
Quality Assurance Office

General Manager of Corporate Planning Division of OOC, about
the OOC Group’s CSR activities listed in this report. Also, a
Q&A session was held with the employees in charge of CSR at
the OOC Group.
At that time, we explained the positioning of this year’s CSR
Report based on the future schedule with an eye to the

Trading partners

Shareholders andinvestors

Employees● Daily procurement activities● Supplier audit: about 1/month● Technical and quality meetings: 1 to 2/month● Safety seminar (for logistics companies)
Kanazawa Plant/Sakata Plant: 1/year each
● General meeting of shareholders● Briefings for individual investors in Tokyo/Osaka:
1/year each
● Briefings for institutional investors in Tokyo: 2/year● ONE-on-ONE meetings: 30 to 40/quarter● Business Report/Annual Securities Report● Employee Engagement Surveys: 1/year● Interviews with supervisors: 6/year● Interviews with employees who have been with the company
for three years or less: 58 employees (100% conducted)

Purchasing Department
Engineering Department
Quality Assurance Office
Logistics Department (Transportation)

Local communities● Joint research with universities: 3 themes● Dialogue with students: 2/year

explained the self-evaluation. Then, there was a lively
question-and-answer session on internal management andfuture issues regarding the value creation model, carbon
neutrality, materiality, and KPIs. Using information obtained in
the interview and Q&A session, we received a written
independent opinion from the IEMA, containing a general

IR & PR Group
Corporate Planning Division

General Affairs Department
Corporate Planning Division● Internal newsletter: 2/year● Briefings on permeation of Management Philosophy for managers: 2/year● Participation in community groups and events:
2 to 3/monthintegrated report, summarized last year’s CSR activities andThis written independent opinion and evaluation of
the OOC Group’s CSR management is posted on our corporate website.
https://www.ooc.co.jp/csr/report/

evaluation of our CSR activities and relevant advice.

In Response to the Independent Opinion
Last year, we published the first CSR Report for the OOC Group. In this year’s report,
we set KPIs and targets based on points indicated in the previous report as well as
various opinions from our stakeholders, and have made efforts to specify CSR issues.

General Affairs Department
Corporate Planning Division
Production plants & offices
R&D Division

In the future, we will make the report easier to understand by converting the conceptsof outputs and outcomes into indicators and disclosing them.
This time, we have set specific numerical targets for carbon neutrality. Reducing
greenhouse gas emissions while expanding our business is an extremely high hurdle
for a chemical company like us. However, we recognize that this is something that wemust achieve. In order to achieve this goal, we need to not only innovate internally but

Lecture and Group Discussion at University (Doshisha University)

also adopt new technologies from outside the company. Fortunately, the OOC Group
has a highly proactive and flexible corporate culture when it comes to the introduction

The theme of the lecture was “Thinking about a sustainable society through CSR
Reports.” In the group discussion, the participants discussed the lecture based on
the theme of “Future Vision and Role Expectations of Chemical Companies in a
Decarbonized Society,” and finally made a presentation by group.
Throughout the lecture and discussion, I received positive feedback from thestudents, which gave me courage.
Comments and Suggestions from Participating Students• I would like you to aim to improve the status of chemical companies, which support innovation in the entire industry, and convey
their appeal to as many people as possible.
• I have learned that chemistry can be an ally in our quest for a sustainable society, depending on how we think about it.
• I used to have an image that chemical companies and the environment were incompatible, but when I learned that the company
was working diligently on environmental issues, my negative image was swept away.

47of new technologies. We will disclose those points and others that we could not fully
disclose at this time on our website and in future reports. As for the other targets, we

Tetsuya Watanabe
General Manager ofCorporate Planning Division
Osaka Organic Chemical Industry Ltd.

fully understand the difficulty and responsibility of not only setting numerical values but
also achieving them. As a matter of course, we will implement specific measures, but
we will also raise the awareness of our employees and focus our collective wisdom sothat we can set even more challenging goals.
Without providing new products that lead to solutions to social issues, the company
will not be able to achieve sustainable prosperity. We will continue to strive for thedevelopment of new products that are useful to society, while seeking collaboration
with other companies, including research institutes such as universities and venturecompanies, to augment the power of the OOC Group.

48

We lead the world with specialty acrylates

Osaka Organic Chemical Industry Ltd.
Inquiries: Corporate Planning Division, Management Strategy Department
5F Shin Toyama Building, 1-7-20 Azuchi-machi, Chuo-ku, Osaka 541-0052
Tel: +81-6-6264-5071
https://www.ooc.co.jp/en/